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Home My WebLink AboutBook 18 04/19/76 - 09/23/76 r 'I !f it . '. ~ [ [ 5077 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDEVELOP- MENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD APRIL 19, 1976, CITY COUNCIL CHAMBERS, 300 NORTH "D" STREET, 2: 00 p.m. The Chairman called the meeting to order at 2: 00 p.m. Agency Members Present: Blum, Obershaw, Guhin and Green Agency Members Absent: Wilson and Stephenson Also Present: Mr. Shadwell, Acting Executive Director; Mr. Flory, Agency Counsel; and Mrs. Baxter, Executive Secretary The Chairman reported that now is the time and place designated for a Joint Public Hearing on the Redevelopment Plan for Central City East. Mayor Holcomb called the Council to order and the following Councilmen were present: Campos, Wheeler, Katona, Hammock, Hudson, Hobbs and Lacker. The Mayor stated that the Joint Public Hearing has been called for the purpose of considering the adoption of Central City East and Central City South redevelopment project areas. The Public Hearing for Central City East was opened. Mayor Holcomb stated that all the necessary steps required by law and taken by the appropriate bodies as related to the adoption of Central City East have been taken. These steps were listed as follows: 1. The Mayor and Common Council adopted Resolution No. 12247 on November 24, 1975, designating a new survey area. 2. The Planning Commission adopted Resolution No. 31 on December 2, 1975 selecting the project area and directing preparation of a Preliminary Plan. The Planning Commission adopted the Preliminary Plan by Resolution No. 35 on December 16, 1975. 3. The Redevelopment Agency adopted the Preliminary Plan through the adoption of Resolution No. 3140 on December 18, 1975. 4. The Redevelopment Agency adopted Resolution No. 3144 on December 30, 1975 approving the Redevelopment Plan, a Redevelopment Plan Report and a Draft Environmental Impact Report; and 5. The Planning Commission made its report as to conformity with the City of San Bernardino General Plan and approved the Redevelopment Plan, the Report and the Draft EIR by Resolution No. 36, on January 20, 1976. All appropriate actions required to arrive at this Joint Public Hearing on Central City East have been completed and approved, as required by law. 5078 The Mayor stated that expert testimony will be heard from representatives of the firms of Gruen Associates, Keyser-Marston, Ultrasystems and the legal firm of James Warren Beebe. The Redevelopment Plan, Redevelopment Report, the Keyser-Marston Report, the EIR and Addendum, and the Notice of Public Hearing and letter to property owners was submitted into evidence. The Mayor requested the filing of these items. ,.., --' Chairman Green stated that each Board Member has personally received and reviewed the Redevelopment Plan, Report, EIR and Addendum, and the Keyser-Marston Report. According to law, the Board has performed consistently and in the manner prescribed. Mr. Green stated that he would hope that as many people as possible could be heard today and that every concern will be taken into serious consideration by the Agency Board. Mayor Holcomb introduced Mr. Kurt Franzen, Gruen Associates; Mr. Tim Kelly, Keyser-Marston Associates; Mr. Harvey Champlin, Ultrasystems; and Mr. James Warren Beebe, Legal Counsel. The City Clerk swore in the named experts for. testimony. Mr. Kurt Franzen, Gruen Associates, presented a slide presentation and commentary on the general conditions of the proposed Central City East Project Area. Mr. Tim Kelly, Keyser-Marston Associates, gave a presentation on the economic feasibility of the project area and proposed methods of financing. Mr. Harvey Champlin. Ultrasystems. gave a presentation on the environmental impact l of the proposed project area. He explained that the Addendum to the EIR Report contains- all the comments and responces to said report. The EIR was mailed to all the required reviewing agencies. Mr. James Warren Beebe, Legal Counsel, stated that all appropriate actions required have been taken as required by law, and that the hearing may proceed. Mayor Holcomb invited questions from the Common Council and the Redevelopment Agency Board Members. Various questions were asked and answered by the the experts who gave testimony. It was determined that the redevelopment plan is very flexible. Tax increment income may be used from other project areas, if it is determined that it will mutually benefit the various project areas. The Redevelopment Plan is a guide line. It does not necessarily mean that all the improvements will be accomplished. Priorities must be determined regarding financial ability to accomplish these improvements. Mayor Holcomb opened the floor for questions. ~ Mr. Frank Herbert, Denny's Restaurant, stated that he does not believe that there is J' any federal funding available. Mayor Holcomb stated that there are federal grant pro- . grams which can be called upon for certain specific items. There are Federal Community [ [ "... .... 5079 Block Grants allocations to the City because of redevelopment activities. It is then up to the Council whether to use any of these funds for redevelopment proj ects . There being no further questions. Mayor Holcomb turned the meeting over to Chairman Green for Redevelopment Agency approprictte action. Chairman Green introduced the following resolution: RESOLUTION NO. 3192 RESOL UTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. CALIFORNIA. APPROVING A SUPPLEMENT TO THE REDEVELOPMENT PLAN FOR CENTRAL CITY EAST - THE CITY. COUNTY. STATE. FEDERAL CIVIC CENTER COMPLEX WHEREAS. the Redevelopment Agency has adopted its Resolution entitled: RESOLUTION NO. 3144 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO PRELIMINARILY APPROVING A REDEVEL- OPMENT PLAN. A REDEVELOPMENT PLAN REPORT AND A DRAFT ENVIRONMENTAL IMPACT REPORT REGARDING CENTRAL CITY EAST - THE CITY. COUNTY. STATE. FEDERAL CIVIC CENTER COMPLEX; AND AUTHORIZING TRANS MITT AL OF SAME TO THE PLANNING COMMISSION and WHEREAS. it has become necessary to supplement and amend said Redevelopment Plan. NOW. THEREFORE. BE IT RESOLVED, determined and ordered by the Redevelop- ment Agency of the City of San Bernardino, as follows: Section 1. The Supplement to the Redevelopment Plan for Central City East - the City, County, State. Federal Civic Center Complex. attached hereto as Exhibit A, is hereby approved. Section 2. The Secretary is hereby authorized and directed to transmit a copy of this Resolution to the Mayor and Common Council of the City of San Bernardino. California. PASSED, APPROVED AND ADOPTED this 19th day of , 1976 April 5080 SUPPLEMENT TO REDEVELOPMENT PLAN FOR CENTRAL CITY EAST- THE CITY, COUNTY ,STATE, FEDERAL CIVIC CENTER COMPLEX The Redevelopment Plan for Central City East - The City, County, State, Federal Civic Center Complex is supplemented and amended as follows: .... Section V. subsection B ., Page 23. ..... The first sentence of the fourth paragraph of the Section is amended to read. "The City zoning ordinance as it now exists or is hereafter amended, shall apply to the development hereunder. n Section V. subsection F . , Page 26. The third sentence of said Section is amended by deleting therefrom the words "so far as possible" . Section V. subsection G. 1, Page 27. The fifth paragraph of the Section is hereby amended to read: "The Agency may establish set back requirements for all new develop- ment within the project area, provided, however, said set back require- ments so established must at least meet and satisfy the requirements of the City zoning ordinance." Section V. subsection G 8, Page 30. ..... The first sentence is amended by adding the following phrase after the word "circumstances": "and where there is no violation of the City zoning ordinance,". - Section V. subsection G. Be 4), Page 31. Add to the end of the sentence, the phrase: "or City zoning ordinance", Section V. subsection H. , Page 32. The last paragraph of the Section is hereby amended to read: "In the event of a conflict between the zoning ordinance and regulations of the City of San Bernardino and this Plan, said zoning ordinances and regulations shall govern unless the requirements under this Plan are more restrictive, and therefore, in such event, would be permitted under the pro- visions of the applicable ordinances." Exhibit E The note adjacent to Building Restriction Diagram for Commercial-Industrial Buildings is amended to read: ...... "Note: Limitations on number and height of Commercial-Industrial Buildings- shall comply with standards set in City Zoning Ordinance". EXHIBIT "A" [ [ [ 5081 ~ ;' Motion was made by Blum and seconded by Obershaw authorizing the adoption of Resolution No. 3192. The motion was carried by the following vote, to wit: Blum, Obershaw, Guhin and Green Noes: None Abstention: None Absent: Wilson and Stephenson Chairman Green introduced the following resolution: RESOLUTION NO. 3193 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING A REDEVELOPMENT PLAN, APPROVING A REDEVELOPMENT PLAN REPORT; APPROVING AN ENVIRONMENTAL IMPACT REPORT CONTAINED THEREIN; AND DIRECTING THE FILING OF A NOTICE OF DETERMINATION. FOR CENTRAL CITY EAST - THE CITY, COUNTY, ST ATE, FEDERAL CIVIC CENTER COMPLEX WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") has prepared the Redevelopment Plan for Central City East - the City, County, State, Federal Civic Center Complex; and WHEREAS, the Agency has prepared a Redevelopment Plan Report and a Draft Environmental Impact Report ("Draft EIR") on said Redevelopment Plan; and WHEREAS, said Draft EIR was offered for review as authorized and directed by this Agency and the Mayor and Common Council of the City of San Bernardino; and WHEREAS, all comments received have been reviewed and answered when appro- priate and incorporated in said Draft EIR; and WHEREAS, pursuant to notice duly given. this Agency and said Mayor and Common Council have held a full and fair public hearing on said Redevelopment Plan and said Draft EIR, and are fully advised in the premises. NOW, THEREFORE. BE IT RESOLVED, DETERMINED AND ORDERED BY THE REDE- VELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: Section 1. A full and fair public hearing having been held on said Draft EIR, as stated in the recitals herein. and this Agency. having considered all comments received thereon and being fully advised in the premises, hereby approves said Draft EIR, Central City East - the City, County, State, Federal Civic Center Complex, which together with said comments and the responses thereto. are part of said Redevelopment Plan Report. 5082 Section 2. The Agency hereby certifies that (i) the Environmental Impact Report ("EIR") attached hereto as Exhibit "C" and by this reference incorporated herein, has been completed in compliance with the California Environmental Quality -, Act, Public Resources Code Sections 21000, et seq., 14 California Administrative ...J Code Sections 15000, et seq., and (ii) this Agency has reviewed and considered the information contained in said EIR. Section 3. A full and fair public hearing having been held on said Redevelopment Plan, Central City East - the City, County, State, Federal Civic Center Complex, as stated in the recitals nerein, and this Ag~ncy, having considered all oral and written comments and testimony relating thereto and being fully advised in the premises i hereby approves said Redevelopment Plan, attached hereto as Exhibit "A II and by this reference incorporated herein. Section 4. All of the buildings, facilities, structures, and other improvements which are proposed and described in the Plan of Development -Interim Report San Bernardino Overall Central City Area are or will be of benefit to the Project Area, regardless of whether such improvement'is within this Project Area or another Project Area. Section 5; The Agency hereby approves said Redevelopment Plan Report, Central City East - the City, County, State, Federal Civic Center Complex, attached hereto as Exhibit "13" and by lliis reference incorporated herein. ..... Section 6. The redevelopment of the Central East - the City, County, State, Federal Civic Center Complex, Project Area/pursuant to sa.id Redevelopment Plan, will have no significant effect on the environment. -.... Section 7. The Secretary of this Agency, in conjunction with the City Clerk, is hereby authorized and directed to file with the County Clerk of San Bernardino County the Notice of Determination, pursuant to 14 California Administrative Code Section 15085(g). Section 8. The Secretary is hereby authorized and directed to transmit a copy of this Resolution, together with all of its attached exhibits, to the Mayor and Common Council of the City of San Bernardino. . PASSED, APPROVED AND ADOPTED this 19th day of April , 1976. Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3193. The motion was carried by the following vote, to wit: Obershaw, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Stephenson Motion was made by Obershaw and seconded by Blum to refer the above resolutions to the Mayor and Council. The motion was carried by the following vote, to wit: ~ -.J r L r .... r ..... 5083 Ayes: Obershaw, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson and Stephenson The Resolutions were presented to the City Clerk. Mayor Holcomb acknowledged receipt of the Agency's resolutions from the City Clerk. The Mayor and Council were presented with the following City resolution: RESOLUTION NO. 12393 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A REDEVELOPMENT PLAN, APPROVING A REDEVELOPMENT PLAN REPORT, AND AN ENVIRONMENTAL IMP ACT REPORT CONTAINED THEREIN, AND DIRECTING THE FILING OF A NOTICE OF DETERMINATION, CENTRAL CITY EAST - THE CITY, COUNTY, STATE, FEDERAL CIVIC CENTER COMPLEX Councilman Hudson made a motion, seconded by Councilman Lackner and unanimously carried, that further reading of the resolution be waived. Councilman Wheeler made a motion, seconded by Councilman Hammock, that said resolution be adopted. Resolution No. 12393 was introduced and adopted by the following vote, to wit: Ayes: Councilmen Campos, Wheeler, Hammock, Hudson, Hobbs, Lackner Noes: Councilman Katona Absent: None The following Ordinance was presented: AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING THE REDEVELOPMENT PLAN FOR CENTRAL CITY EAST - THE CITY, COUNTY, STATE, FEDERAL CIVIC CENTER COMPLEX City Attorney Prince recommended that the words "deemed approved if not" be stricken, and that the word "submission" be stricken and the words "reviewed by" be inserted in Section 8, sub-section "c" of the proposed ordinance, page 4. James Warren Beebe, Legal Bond Counsel, and City Attorney Prince concurred, and made a recommendation. Councilman Hudson made a motion, seconded by Councilman Wheeler and unanimously carried, that Section 8, sub-section "c" of the proposed ordinance be amended by striking the words "deemed approved if not" and adding the words "at a public meeting" at the end of sub-section "c"; and the first reading of the ordinance be waived. Councilman Hudson made a motion, seconded by Councilman Wheeler. that said ordinance be laid over for final passage. 5084 The ordinance was laid over for final passage by the following vote, to wit: Ayes: Councilmen Campos, Wheeler, Hammo'ck, Hudson, Hobbs, Lackner Noes: Council- man Katona Absent: None ,... - RECESS MEETING: Mayor Holcomb ordered a five-minute recess. RECONVENE MEETING: Mayor Holcomb reconvened the meeting. Chairman Green reconvened the Redevelopment Agency Board Meeting stating that this is the time and place so designated for the Joint Public Hearing for Central City South. Councilman Katona stated that he would disqualify himself from the proceedings on Central City South as he owns a one-tenth interest in property located on Mill and "D" Streets. Mayor Holcomb stated that all appropriate actions as required by law have been taken by the appropriate bodies as related to Central City South. They are listed as follows: ..... 1. The Mayor and Council adopted Resolution No. 12246 on November 24, 1975 designating a new survey area. - 2. The Planning Commission adopted Resolution No. 33 on December 2, 1975 selecting the project area and directing the preparation of a Preliminary Plan. The Com- mission adopted the Preliminary Plan through Resolution No. 34 on December 16, 1975. 3. The Redevelopment Agency approved the Preliminary Plan through the adoption of Resolution No. 3141 on December 18, 1975. 4. The Redevelopment Agency adopted Resolution No. 3145 on December 30, 1975 approving the Redevelopment Plan, a Redevelopment Plan Report and a Draft Environmental Impact Report; and 5. The Planning Commission made its report as to conformity with the City of San Bernardino General Plan and approved the Redevelopment Plan, the Report and the Draft EIR through its adoption of Resolution No. 37 on February 3, 1976. All appropriate actions required to arrive at this Joint Public Hearing on Central City South have been completed and approved as required by law. ~ - [ "... I L- r L.. 5085 Mayor Holcomb stated that expert testimony will be heard from representatives of Gruen Associates, Keyser-Marston, Ultrasystems and the law firm of James Warren Beebe. The Redevelopment Plan, Report, the Keyser-Marston Report, the EIR and Addendum, and the Notice of Public Hearing and letter to property owners was sub- mitted into evidence. The Mayor requested the filing of these items. Chairman Green stated that each Board Member has personally received and reviewed the Redevelopment Plan, Report, EIR and Addendum and the Keyser-Marston Report. According to law, the Board has performed consistently and in the manner prescribed. Mr. Green stated that the Board would take every concern into serious consideration regarding the adoption of Central City South. Mayor Holcomb introduced Mr. Kurt Franzen, Gruen Associates; Mr. Tim Kelly, Keyser-Marston Associates; Mr. Harvey Champlin, Ultrasystems; and Mr. James Warren Beebe, Legal Counsel. The City Clerk swore in the named experts for testi- mony. Mr. Kurt Franzen, Gruen Associates, presented a slide presentation and commentary on the general conditions of the proposed Central City South Project Area. Mr. Tim Kelly, Keyser-Marston Associates, gave a presentation on the economic feasibility of the project area and proposed methods of financing. He stated that Central City South is definitely financially feasible. Mr. Harvey Champlin, Ultrasystems, gave a presentation on the environmental impact of the proposed project area. He explained that the Addendum to the EIR Report con- tains all the comments and responses to said report. The EIR was mailed to all the required reviewing agencies. Mr. James Warren Beebe, Legal Counsel, stated that all appropriate actions required have been taken as required by law, and that the hearing may proceed. Mayor Holcomb invited questions from the Common Council and the Redevelopment Agency Board Members. Various questions were asked and answered by the experts who gave testimony. It was determined that there is no contemplated relocation of families at this time within Central City South. The plan is very flexible. As in Central City East, priorities will be determined regarding financial ability to accomplish the improvements within the redevelopment plan. Mayor Holcomb opened the floor for questions. Mr. William Allen, owner of property on Rialto Avenue, asked a question regarding whether property could be taken from property owners who did not wish to partici- pate in redevelopment. Mr. James Warren Beebe stated that if the Agency wishes to 5086 acquire a certain parcel of property, negotiations must be entered into between the Agency and the owner. If the owner does not desire to sell, the Agency may pursue the matter by requesting authority from the Council to enter into eminent domain proceedings. --- ...., Mr. William Fairchild, business owner on "E" Street, asked specific questions regarding proposed "E" Street redevelopment. Mayor Holcomb stated that questions could not be answered at this time because the plan is very flexible and definite plans for this area have not been determined as yet. There being no further questions, Mayor Holcomb turned the meeting over to Chairman Green for appropriate Redevelopment Agency action. Chairman Green introduced the following resolution: RESOLUTION NO. 3194 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A SUPPLEMENT TO THE REDEVELOPMENT PLAN FOR CENTRAL CITY SOUTH WHEREAS, the Redevelopment Agency has adopted its Resolution entitled: RESOLUTION NO. 3145 .... RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO PRELIMINARILY APPROVING A REDEVEL- OPMENT PLAN, A REDEVELOPMENT PLAN REPORT AND A DRAFT ENVIRONMENTAL IMPACT REPORT REGARDING CENTRAL CITY SOUTH; AND AUTHORIZING TRANSMITTAL OF SAME TO THE PLANNING COMMISSION - ; and WHEREAS, it has become necessary to supplement and amend said Redevelopment Plan. NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the Redevelop- ment Agency of the City of San Bernardino, as follows: Section 1. The Supplement to the Redevelopment Plan for Central City South, attached hereto as Exhibit A is hereby approved. Section 2. The Secretary is hereby authorized and directed to transmit a copy of this Resolution to the Mayor and Common Council of the City of San Bernardino, California. ~ PASSED, APPROVED AND ADOPTED this 19th day of April , 1976 - [ [ [ Sl,JPPLEMENT TO REDEVELOPMENT PLAN FOR CENTRAL CITY SOUTH 5087 The Redevelopment Plan for Central City South is supplemented and amended as follows: . Section V. subsection B . . Page 22. The first sentence of the third paragraph is amended to read. liThe City zoning ordinance as it now exists or is hereafter amended. shall apply to the development hereunder. n Section V. subsection F. , Page 25. The third sentence of said Section is amended by deleting therefrom the words II so far as possible" . Section V. subsection G. I, Page 27. The fifth paragraph of the Section is hereby amended to read: "The Agency may establish set back requirements for all new develop- ment within the project area, provided, however, said set back require- ments so established must at least meet and satisfy the requirements of the City zoning ordinance. II Section V. subsection G 8, Page 30. The first sentence is amended by adding the following phrase after the word ncircumstancesll: lIand where there is no violation of the City zoning ordinance, II. Section V. subsection G. 8(4), Page 31. Add to the end of the sentence, the phrase: 1I0r City zoning ordinancell, Section V. subsection H. , Page 32. The last paragraph of the Section is hereby amended to read: IIln the event of a conflict between the zoning ordinance and regulations of the City of San Bernardino and this Plan, said zoning ordinances and regulations shall govern unless the requirements under this Plan are more resb-ictive, and therefore, in such event, would be permitted under the pro- visions of the applicable ordinances. II Exhibit E The note adjacent to Building Restriction Diagram for Commercial-Industrial Buildings is amended to read: "Note: Limitations on number and height of Commercial-Industrial Buildings shall comply with standards set in City Zoning Ordinance 11 . EXHIBIT II A II 5088 Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3194. The motion was carried by the following vote, to wit: Ayes: Obershaw. Guhin. Blum and Green Noes: None Abstention: None Absent: Stephenson and Wilson ., , ....J Chairman Green introduced the following resolution: RESOLUTION NO. 3195 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING A REDEVELOPMENT PLAN, APPROVING A REDEVELOPMENT PLAN REPORT; APPROVING AN ENVIRONMENTAL. IMPACT REPORT CONTAINED THEREIN; AND DIRECTING THE FILING OF A NOTICE OF' DETERMINATION, FOR CENTRAL CITY SOUTH 'WHEREAS. the Redevelopment Agency of the City of San Bernardino ("Agency") has prepared the Redevelopment Plan for Central City South; and WHEREAS, the Agency has prepared a Redevelopment Plan Report and a Draft Environmental Impact Report ("Draft EIR") on said Redevelopment Plan; and WHEREAS, said Draft EIR was offered for review as authorized and directed by this Agency and the Mayor and Common Council of the City of San Bernardino; and ., I ....J WHEREAS. all comments received have been reviewed and answered when appro- priate and incorporated in said Draft EIR; and WHEREAS. pursuant to notice duly given. this Agency and said Mayor and Common Council have held a full and fair public hearing on said Redevelopment Plan and said Draft EIR, and are fully advised in the premises. NOW. THEREFORE. BE IT RESOLVED. DETERMINED AND ORDERED BY THE REDE- VELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: Section 1. A full and fair public hearing having been held on said Draft EIR, as stated in the recitals herein, and this Agency, having considered all comments received thereon and being fully advised in the premises, hereby approves said Draft EIR, Central City South, which together with said comments and the responses thereto, are part of said Redevelopment Plan Report. Section 2. The Agency hereby certifies that Ci) the Environmental Impact Report C'EIRI1) attached hereto as Exhibit I1CI1 and by this reference incorporated herein, ~ has been completed in compliance with the California Environmental Quality Act" Public Resources Code Sections 21000, et ~.. 14 California Administrative Code .....; Sections 15000, et ~., and Cii) this Agency has reviewed and considered the information contained in said EIR. ,- \0..... r ..... r g L.... 5089 Section 3. A full and fair public hearing having been held on said Redevelopment Plan, Central City South, as stated in the recitals herein, and this Agency, having considered all oral and written comments and testimony relating thereto and being fully advised in the premises, hereby approves said Redevelopment Plan, attached hereto as Exhibit "All and by this reference incorporated herein. Section 4. All of the buildings, facilities, structures, and other improvements which are proposed and described in the Plan of Development - Interim Report San Bernardino Overall Central City Area are or will be of benefit to the Project Area, regardless of whether such improvement is within this Project Area or another Project Area. Section 5. The Agency hereby approves said Redevelopment Plan Report, Central City South, attached hereto as Exhibit "B" and by this reference incorporated herein. Section 6. The redevelopment of the Central South ProjeCt Area, pur~uantto:said Redevelopment Plan, will have no significant effect on the environment. Section 7. The Secretary of this Agency, in conjunction with the City Clerk, is herefY authorized and directed to file with the County Clerk of San Bernardino County the Notice of Determination, pursuant to 14 California Administrative Code Section 15085(g). Section 8. . The Secretary is hereby authorized and directed to transmit a copy of this Resolution, together with all of its attached exhibits, to the Mayor and Common Council of the City of San Bernardino. PASSED, APPROVED AND ADOPTED this 19th day of April , 1976. Motion was made by Blum and seconded by Obershaw authorizing the adoption of Resolution No. 3195. The motion was carried by the following vote. to wit: Ayes: Blum, Obershaw. Guhin and Green Noes: None Abstention: None Absent: Stephenson and Wilson Motion was made by Guhin and seconded by Blum to refer the above resolutions to the Mayor and Council. The motion was carried by the following vote, to wit: Ayes: Guhin. Blum. Obershaw and Green Noes: None Abstention: None Absent: Stephenson and Wilson The Resolutions were presented to the City Clerk. Mayor Holcomb acknowledged receipt of the Agency's resolutions from the City Clerk. The Mayor and Council were presented with the following City resolution: RESOLUTION NO. 12395 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A REDEVELOPMENT PLAN. APPROVING A REDEVELOPMENT PLAN REPORT, AND AN ENVIRONMENTAL IMPACT REPORT CONTAINED THEREIN. AND DIRECTING THE FILING OF A NOTICE OF DETERMINATION. CENTRAL CITY SOUTH 5090 Councilman Campos made a motion, seconded by Councilman Hudson and unanimously carried, that further reading of the resolution be waived. ..... --' Councilman Campos made a motion, seconded by Councilman Hammock, that said resolution be adopted. Resolution No. 12395 was introduced and adopted by the following vote, to wit: Ayes: Councilmen Campos, Wheeler, Hammock, Hudson, Hobbs, Lackner Noes: None Absent: Councilman Katona The following ordinance was presented: AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING THE REDEVELOPMENT PLAN FOR CENTRAL CITY SOUTH Councilman Campos made a motion, seconded by Councilman Hammock and unanimously carried, that Section 8, sub-section "c" of the proposed ordinance be amended by striking the words "deemed approved if not" and adding the words "at a public meeting" at the end of sub-section "c"; and the first reading of the ordinance be waived. Councilman Hudson made a motion, seconded by Councilman Hammock and unanimously carried, that said ordinance be laid over for fjnal passage. , ......, The Public Hearing was closed for Central City South. 5: 35 p.m. - Motion was made by Obershaw and seconded by Guhin to adjourn the Adjourned Regular Meeting to the Redevelopment Agency Board Room. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Blum and Green Noes: None Abstention: None Absent: Stephenson and Wilson 5: 45 p.m. - The meeting was reconvened in the Redevelopment Agency Board Room. AUTHORIZATION FOR CHAIRMAN TO TRAVEL TO WASHINGTON D. C. APRIL 22-23, 1976: Mr. Green explained that the purpose of this trip is to hand carry the updated "Project San Bernardino" application to the Community Services Administration. The following resolution was introduced: RESOLUTION NO. 3196 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRAVEL OF THE CHAIRMAN TO WASHINGTON D. C. APRIL 22-23,1976 ....., ......, [ [ r '-- 5091 WHEREAS, the Redevelopment Agency's Travel Policy Resolution provides that each trip made by an Agency Member or Staff Member outside of the City of San Bernardino, California, be specifically authorized by a resolution of the Agency Members; and . WHEREAS, it is found essential for the Chairman to travel to Washington D. C. April 22-23, 1976 to hand carry the updated Project San Bernardino Application to the Community Services Administration, for consideration as a grant applica- tion. NOW, THEREFORE, BE IT RESOLVED that the travel of the Chairman, representing the Redevelopment Agency, to Washington D. C. April 22-23, 1976, to meet with the Community Services Administration, is hereby approved, and his travel expenses are approved in accordance with the Agency's Travel Policy Resolution. Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3196. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Blum and Green Noes: None Abstention: None Absent: Stephenson and Wilson EXTRA COSTS, AUDIO VISUAL PROVISIONS, PUBLIC ENTERPRISE CENTER SUNRAY CONSTRUCTION COMPANY: Authorization was requested to enter into a Change Order with contract with Sunray Construction Co. for the Public Enterprise Center. This change is to improve the capability of the Audio Visual Provisions over the system originally designed to be installed in the building. When the contractor completes his formal request, there will be credits due the Agency from the original system. Cost figures for this change are not determined as yet. It is requested that we enter into a Change Order for an amount not to exceed $4,250. It is necessary that this be accomplished at this time while the walls are open. After review the following resolution was introduced: RESOLUTION NO. 3197 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO CHANGE ORDER NO. 5 WITH SUNRAY CONSTRUCTION CO. , TO BE PREPARED BY GRUEN ASSOC- IATES, INC. , FOR AN AMOUNT NOT TO EXCEED $4,250.00 FOR AUDIO VISUAL PROVISIONS. WHEREAS, this Agency has received a request for an increase in contract with Sunray Construction Co., and; 5092 WHEREAS, the expense to be spent to revise electrical conduit system for future educational television and to provide structural support in each classroom for fut- ure television viewing; and ., WHEREAS, when the contractor completes his formal request there will be credits due the Agency from the original system included in the contract. .,.,.j NOW, THEREFORE, BE IT RESOLVED that the Chairman and Acting Secretary be authorized to enter into Change Order No. 5 with Sunray Construction Co. for an increase in contract for Audito Visual Provisions for an amount not to exceed $4,250. Motion was made by Blum and seconded by Guhin authorizing the adoption of Reso- lution No. 3197. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Obershaw and Green Noes: None Abstention: None Absent: Wilson and Stephenson CLOSING OF JEFFERSON SCHOOL: It was explained that the County Tax Assessor has assessed two properties which are being purchased by the Agency. These parcels are being used as collateral in the purchase of the Jefferson School site for the YMCA transaction. It is necessary that these parcels close escrow. In order to do so the taxes assessed, which include penalties, must be paid under protest. The law requires that in a tax dispute of this kind, the taxes must be paid under protest as a condition precedent to any action to recover the taxes back from the County. All Members felt that the Agency Counsel should pursue this matter of recovery of the taxes as soon as possible. After review, the following resolution was introduced: ... ....J RESOLUTION NO. 3198 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE PAYMENT OF TAXES UNDER PROTEST FOR PARCELS NO. 135-121-18 & 19 WHEREAS, the Redevelopment Agency of the City of San Bernardino, California, has purchased property located on 4th Street between Mt. View and Arrowhead Avenue; and WHEREAS, the County Assessor has assessed the two properties apparently under the reasoning that it is not a project area at this time, and therefore it is not exempt from taxation; and WHEREAS, the Redevelopment Agency has received tax bills from the County Assessor, which includes penalty assessment, for a total amoutn of $2,462.22; and ~ ...... [ [ [ 5093 WHEREAS, the Redevelopment Agency has offered these parcels of land as collateral to the San Bernardino Unified School District for the purchase of the Jefferson School Site; and WHEREAS, these parcels of land must close escrow in order that they may be used as collateral for said real estate transaction; and WHEREAS, the law requires that in a tax dispute of this kind, the taxes must be paid under protest as a condition precedent to any action to recover the taxes back from the County. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the payment of $2,462.22 to the County Assessor for Parcels No. 135-121-18 & 19 is hereby approved, under protest, for the reason that the Agency is the owner of this property and therefore the property is exempt from taxation under the provisions of the California Constitution and other provisions of the law. BE IT FURTHER RESOLVED that the Agency Counsel is hereby directed to pursue recovery of these taxes back from the County Assessor. Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3198. The motion was carried by the following vote, to wit: A yes: Obershaw, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Stephenson CONSIDERATION OF REQUEST MADE BY P. W. QUINN, JR. At the last Regular Meeting a request was submitted by P. W. Qui'nn, Jr., for payment of accrued vacation and sick leave pay. The matter was tabled for review by the Agency Counsel. Mr. Flory stated that his review and opinion was mailed to all Board Members. It was determined that the Agency's Personnel Resolution regarding vacation pay could be argued that either all accrued vacation is lost if not taken within a two year period or argued that the Director has not had his earned vacation since his last anniversary date of August 1, 1975 and therefore, entitled to all vacation accrued. After discussion, motion was made by Blum and seconded by Obershaw authorizing the payment of 329.30 hours of accrued vacation to P. W. Quinn,Jr. The motion was carried by 329.30 hours of accrued vacation to P. W. Quinn, Jr. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Guhin and Green Noes: None Abstention: None Absent: Wilson and Stephenson Mr Green stated that he understands that the City is strongly looking at their policy regarding clarification of their resolution along these lines. 5094 The matter of accrued Sick Leave, as requested by Mr. Quinn, was reviewed. It was determined that Mr. Quinn would not be entitled to any of his unused sick leave if his termination date is to remain April 30, 1976, according to the Agency's resolution regarding Sick Leave. Motion was made by Obershaw and seconded by Guhin denying the request for accrued sick leave submitted by P. W. Quinn, Jr. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Stephenson ,., i .....J ADJOURNMENT: Motion was made by Obershaw and seconded by Guhin adjourning the meeting at 6: 00 p.m. The motion was carried by the following vote, to wit: A yes: Obershaw, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Stephenson ~ R. E. Shadwell, Jr. Acting Secretary , .., ......" ~ --- ,.-. I L r L [ 5095 MINUTES OF THE REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 6TH DAY OF MAY, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA The Chairman called the meeting to order at 4: 10 p.m. Roll Call showed the following: Agency Members Present: Green, Blum, Obershaw and Guhin Agency Members Absent: Wilson and Stephenson Also Present: Mr. Shadwell, Acting Executive Director; Mr. Flory, Agency Counsel; and Mrs. Baxter, Executive Secretary MINUTES: The Minutes of the Regular Meeting of April 1, 1976 were submitted for approval. Motion was made by Obershaw and seconded by Guhin approving the Minutes as submitted. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Stephenson The Minutes of the Special Meeting of April 8, 1976 were submitted for approval. Mrs. Blum stated that on Page 2, under "Request for Accrued Vacation Pay", in the second paragraph it should read" she felt that whatever Mr. Quinn had legally coming to him in line with current personnel policies, should be authorized." The word "legally" should be added. Motion was made by Obershaw and seconded by Blum approving the Minutes of April 8, 1976, as corrected. The motion was carried by the following vote, to wit: A yes: Obershaw, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson and Stephenson The Minutes of the Adjourned Meeting held April 19, 1976 were submitted for approval. Motion was made by Blum and seconded by Obershaw approving the minutes as submitted. The motion was carried by the following vote to wit: Ayes: Blum, Obershaw, Guhin and Green Noes: None Abstention: None Absent: Wilson and Stephenson 4: 15 p.m. - Mr. Stephenson arrived at the meeting. EXPENDITURES: The Expenditures for the month of March, 1976 were submitted for approval. Motion was made by Guhin and seconded by Obershaw approving the Expenditures as submi tted . The motion was carried by the following vote, to wit: A yes: Guhin, Obershaw, Blum, Stephenson and Green Noes: None Abstention: None Absent: Wilson 5096 REPORT OF AGENCY COUNSEL: Mr. Flory stated that his report will be covered under Executive Session, following the Agenda items. ..... ...." Upon request of the Chairman, the audiance introduced themselves. Mr. Green stated that the Agenda would be taken out of order to accommodate those present. MT. VERNON ASSOCIATES, REQUEST FOR 90 DAY EXTENTION FOR EXCLUSIVE RIGHT TO NEGOTIATE: Mr. Green stated that approximately three months ago the Agency entered into a contract with Mt. Vernon Associates for a 90 day exclusive right to negotiate for the development of the Mt. Vernon Community Center, Central City West. The 90 day period expired April 16, 1976. They have now requested an additional 90 days for preparing their package. Mr. Fred Herrera, President, was introduced. Mr. Herrera stated that they have five businesses who are now possible tenants. They would like 10 tenants. The financing is a great concern. The Mt. Vernon Associates will apply for a Small Business Loan through Small Business Association, with the help of the Economic Development Council. The Community Center will be developed from these funds. The real property will be used as security for the loan. The payment for the loan will be received from the rents collected. When the loan is paid, the tenants will have the option to continue renting or to purchase their building. ..... Mr. Hiroshi Mizuno, Economic Development Council, explained the great importance of development the Center through a "local development corporation" such as Mt. Vernon Associates. After review, the following resolution was introduced: ...", RESOLUTION NO. 3199 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO CONTRACT AMENDMENT, MT. VERNON ASSOCIATES, EXTENDING EXCLUSIVE RIGHT TO NEGOTIATE BY 90 DAYS WHEREAS, the Redevelopment Agency, by Resolution No. 3159, authorized the execution of a contract with Mt. Vernon Associates for a 90 day exclusive right to negotiate for the development of the Mt. Vernon Community Center, Central City West; and WHEREAS, said Agreement, entered into January 16, 1976, provided that the Mt. Vernon Associates would be entitled to exclusively negotiate for the development for ninety days, ending April 16, 1976; and ~ WHEREAS, Mt. Vernon Associates have requested a 90 day extention for further negotiations; and .....,; r I ! ~ [ r L 5097 WHEREAS, the Agency Members have reviewed their request and have found that the request is warranted. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to enter into Contract Amendment with Mt. Vernon Associates, extending the exclusive right to negotiate for the Mt. Vernon Community Center for a period of 90 days. The expiration date of this extension is July 16, 1976. Motion was made by Guhin and seconded by Blum authorizing the adoption of Reso- lution No. 3199, and further requesting that a progress report be presented at the first meeting in June. The motion was carried by the following vote, to wit: Ayes: Guhin, Blum, Stephenson, Obershaw and Green Noes: None Abstention: None Absent: Wilson ELKS BUILDING ASSOCIATION, RENTAL AND OCCUPANCY AGREEMENT: Mr. Green explained that a letter was sent to the Elks Association, in an effort to renegotiate the terms of the purchase of their property by the Agency. The Elks in their reply to the Agency, they have requested an amendment to their Agreement with the Agency for their purchase of property at 7th and Sierra Way. They request that the mandatory 24,000 sq. footage and the total investment of approximately $1,000,000 be eliminated from the Agreement. They have also requested that paragraph 5 relating to making the commencement of construction dependent upon acceptable financing arrangements by the Elks be eliminated. This paragraph is not needed since once the purchase price is paid by the Agency to the Elks, they will have enough money to construct their new building. All Members agreed to the changes. The Elks have also asked for an amendment to their Rental and Occupancy Agree- ment with the Agency for the building which they now occupy. They have requested adequate parking immediately north of the Elks Building or an allocation of a specified number of spaces. They now pay $1.00 per year for the occupancy of the building. The $1.00 per year figure was established in order to give them a chance to raise the money to construct their new structure. The Agreement also provides that they may remain in the building 2 years after pay- ment is made in full by the Agency for the building. They have requested that this either remain at 24 months or be changed to 12 months, and further that they be allowed occupancy for 12 months after escrow has closed for their purchase of 7th & Sierra Way. They have agreed that if the Agency approves their requested amendments, they will approve the Agency's proposed restructure of the note. 5098 The Members were concerned regarding the rental of the parking area north of the Elks Building. The idea that the Agency might be competing with parking lot owners in the area was discussed. Month to month tenancy, with a 30 day cancellation notice, was discussed for a possible parking rental agreement. ... ...." After careful review, it was determined that the Amendment for the sale of Rede- velopment Property be approved. The Members also determined that the rental agreement be modified to include occupancy of the building for a period of twelve months from the date the Agency has paid for the building and twelve months after close of escrow by the Elks on 7th and Sierra Way. The parking situation should be further negotiated for an agreeable arrangement. The following resolution was introduced: RESOLUTION NO. 3200 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF AMENDMENT TO "AGREEMENT FOR SALE OF AGENCY PROPERTY TO ELKS" AND AN AMEND- MENT TO "RENTAL AND OCCUPANCY AGREEMENT" BE- TWEEN THE REDEVELOPMENT AGENCY AND THE ELKS BUILDING ASSOCIATION WHEREAS, on July 21, 1975, the Agency entered into an Agreement to Purchase the Elks Building on 4th Street, wherein the Elks agreed, within 30 days after close of escrow, to commence construction of a new facility at 7th Street and Sierra Way at a cost of $1,020,000 with a square footage of 24,000 sq. ft.; and ..... --' WHEREAS, Elks has requested an Amendment to this agreement eliminating the mandatory 24,000 sq. footage and the total investment cost of approximately $1,000,000, and further requesting the deletion of paragraph 5 relative to making the commence- ment of construction dependent upon acceptable financing arrangements by the Elks; and WHEREAS, the Agency and the Elks further entered into a Rental and Occupancy Agreement for the occupancy of the building on 4th Street by the Elks until such time as their new building is completed; and WHEREAS, said agreement allows the Elks the right to occupy the premises 24 months from completion of sale by the Agency; and WHEREAS, the Elks have requested that this paragraph be amended to allow the Elks rental either twelve or twenty four months after payment in full by the Agency and for a period of twelve months after the escrow for the purchase by Elks of Agency property has closed; and WHEREAS, the Agency has determined that twelve months should be used in lieu of twenty four months after payment in full by the Agency. ~ -'* [ r I ...... r i L... 5099 NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to enter into an amendment to "Agreement for Sale of Agency Property to Elks" and an amendment to "Rental and Occupancy Agreement" with the Elks Building Association, incorporating the changes above. Motion was made by Blum and seconded by Guhin authorizing the adoption of Resolution No. 3200. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Obershaw and Green Noes: None Abstention: Stephenson Absent: Wilson OFFER TO PURCHASE PARCELS 135-101-08 & 09, CENTRAL CITY NORTH: Mr. Bill Leonard was presented to the members. It was explained that Mr. Leonard represents John M. Mills. Eulalia Mills Armour & George M. Mills. His clients de- sire to purchase Parcels 135-101-08 & 09. within the Central City North Project Area. This parcel is on 5th Street. direct! y west of the new SAFECO building under construction. They Offer to Purchase these parcels for $60.000. It was determined that the Agency paid $65.000 for the land. Demolition was needed on one parcel. In some cases the Agency does sell property for less than the purchase price. This is done because the improvements on the land far exceed the extra money spent to purchase and prepare the site. Mr. Leonard explained that the Agency purchased four parcels from the Fullertons. They hold a note for the purchase of this land. The parcels his clients are interested in purchasing are included within this note. The sale would naturally be dependent upon the release of this portion of land from the note. with substitution of other Agency security. Mr. Leonard stated that he as the realitor would handle the transaction for his client and the Agency before an actual agreement is entered into. It was noted that the amount of Mr. Leonard's Finder's Fee is dependent upon the value of the development. After further review, the following resolution was introduced: RESOLUTION NO. 3201 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. CALIFORNIA. DETERMINING THAT JOHN M. MILLS, EULALIA MILLS ARMOUR & GEORGE M. MILLS. REDEVELOPERS. ARE QUALIFIED TO REDEVELOP PARCELS 135-101-08 and 09. CENTRAL CITY NORTH. AND AUTHORIZING THE PUBLICATION OF A NOTICE OF PUBLIC HEARING WHEREAS. the Redevelopment Agency of the City of San Bernardino. California. desires to dispose of certain parcels of land within the Central City North Project Area; and 5100 WHEREAS, the Agency has received an offer to purchase parcels 135-101-08 and 09, Central City North, from John M. Mills, Eulalia Mills Armour and George M. Mills; and ..., ..... WHEREAS, the Agency has evaluated the proposal received and has determined that said sale should be set for public hearing. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency has determined that the proposal of John M. Mills, Eulalia Mills Armour and George M. Mills, is in the best interest of the Central City North Project Area and the Redevelopment Agency, and hereby authorizes the publication of a Notice of Public Hearing to be held June 3, 1976, for the consideration of said sale. Motion was made by Blum and seconded by Guhin authorizing the adoption of Reso- lution No. 3201. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Stephenson, Obershaw and Green Noes: None Abstention: None Absent: Wilson 5: 15 p.m. - Mr. Obershaw was excused from the meeting. SECURITY FOR JEFFERSON SCHOOL TRANSACTION: Mr. Green explained that the Agency approved the purchase of the Jefferson School property from the San Bernardino Unified School District, for disposi- tion to the YMCA. The School District has stipulated that the conditions for acceptance of an Agency note for the purchase of the Jefferson School would be to offer properties equal in appraised value, to not less than 120% of the balance of the note for security. A list of proposed properties was presented. The following resolution was introduced: .... ....... RESOLUTION NO. 3202 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, PLEDGING FOR SECURITY CERTAIN PARCELS OF AGENCY OWNED PROPERTY, FOR THE PURCHASE OF THE JEFFERSON SCHOOL WHEREAS, the Redevelopment Agency, by Resolution No. 2917, approved the purchase of the Jefferson School property from the San Bernardino Unified School District; and WHEREAS, the San Bernardino City Unified School District has stipulated that the conditions for acceptance of an Agency note for the purchase of the Jefferson School would be to offer properties equal in appraised value, to not less than 120% of the balance of said note for security; and ~ WHEREAS, the Redevelopment Agency is purchasing the Jefferson School property for re-sale to the YMCA for relocation and a pro-rata decrease in funds to be obligated for the purchase of the present YMCA property; and ....... WHEREAS, the Agency Board has reviewed the parcels proposed for pledge of security 5101 r L for purchase of the Jefferson School. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the following parcels are hereby pledged as security for the purchase of the Jefferson School from the San Bernardino Unified School District: PARCEL NO. VALUE 135-282-12 & 17 $ 20,000 138-122-11 10,500 138-122-08 9,800 148-022-06 81,000 148-021-59 21,600 134-351-21 4,900 134-351-15 13,500 134-351-17 15,800 134-351-18 9,600 134-351-10 7,300 135-191-01 & 03 17,600 135-121-18 & 19 112,800 134-141-05 100 134-141-20 100 r- 135-111-01 & 02 56,200 L 134-351-09 11,700 $392,500 Note: Total appraised values represent 121% of note. Mr. Guhin stated that he would refrain from voting because he is a member of the YMCA Board. Motion was made by Blum and seconded by Stephenson authorizing the adoption of Resolution No. 3202. The motion was carried by the following vote, to wit: Ayes: Blum, Stephenson and Green Noes: None Abstention: Guhin Absent: Wilson and Obershaw AUTHORITY TO MODIFY ESCALATOR RAILS IN CENTRAL CITY MALL: [ Mr. Jones, Operations Officer, explained that the City of San Bernardino has requested permission to modify the escalator rails within the Central City Mall, in order to eliminate some of the up keep and janitorial services by the railing being lowered. This will also help eliminate a safety hazard which now exists by pedestrians holding the handrails while the escalator is in motion. There will be no cost to the Agency. Motion was made by Blum and seconded by Guhin granting authority to the City of San Bernardino to modify the escalator rails within the Central City Mall. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Stephenson and Green Noes: None Abstention: None Absent: Wilson and Obershaw 5102 AFPROV AL OF SUPPLEMENT TO REDEVELOPMENT PLAN SOUTHEAST INDUSTRIAL PARK: .... Mr. Green stated that the City Attorney has requested certain changes to the Redevelopment Plans for Southeast Industrial Park, just as he did for Central City East and South. Supplements have already been approved for South and East. The project name, Southeast Industrial Park Industrial-Transportation- Distribution Center, has been changed to Southeast Industrial Park Redevelop- ment Project Area. This was done at the request of the Council. The supplement also excludes the County from participation within the project. The following resolution was introduced: ...... RESOLUTION NO. 3203 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A SUPPLEMENT TO THE REDEVELOPMENT PLAN FOR SOUTHEAST INDUSTRIAL P ARK REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency has adopted its Resolution entitled: RESOLUTION NO. 3177 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO PRELIMINARILY APPROVING A REDEVEL- OPMENT PLAN, A REDEVELOPMENT PLAN REPORT AND TAKING CERTAIN ACTIONS IN CONNECTION WITH A DRAFT ENVIRON- MENTAL IMPACT REPORT REGARDING THE REDEVELOPMENT PLAN FOR SOUTHEAST INDUSTRIAL PARK INDUSTRIAL-TRANS- PORTATION-DISTRIBUTION CENTER; AND AUTHORIZING TRANSMITT AL OF SAME TO THE PLANNING COMMISSION .... - and WHEREAS, it has become necessary to supplement and amend said Redevelopment Plan. NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the Redevelop- ment Agency of the City of San Bernardino, as follows: Section 1. The Supplement to the Redevelopment Plan for Southeast Industrial Park Redevelopment Project Area, attached hereto as Exhibit "A", is hereby approved. Section 2. The Secretary is hereby authorized and directed to transmit a copy of this Resolution to the Mayor and Common Council of the City of San Bernardino, California. ....... ~ [ ~ L r f ..... 9.03 PASSED, APPROVED AND ADOPTED this 6th da y of May , 1976. Motion was made by Stephenson and seconded by Guhin authorizing the adoption of Resolution No. 3203. The motion was carried by the following vote, to wit: Ayes: Stephenson, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw CIVIC LIGHT OPERA ASSOCIATION: Mrs. Blum stated that she felt that this item should be tabled until Mr. Obershaw could be present. Motion was made by Blum and seconded by Guhin tabling the matter regarding the Civic Light Opera Association. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Stephenson and Green Noes: None Abstention: None Absent: Wilson and Obershaw AMENDMENT TO LEASE AGREEMENT OPERATION SECOND CHANCE: This item was tabled until the next regular meeting. APPOINTMENT OF MRS. BLUM TO THE SAN BERNARDINO ECONOMIC DEVEL- OPMENT COUNCIL: Mr. Green stated that Mr. Perea was the Agency's representative to the Economic Development Council. With the resignation of Mr. Perea from the Agency Board, a new appointment must be made. He stated that he has asked Mrs. Blum if she would accept the appointment and she has indicated that she would. Motion was made by Guhin and seconded by Stephenson appointing Mrs. Blum as the Agency's representative to the Economic Development Council. The motion was carried by the following vote, to wit: Ayes: Guhin, Stephenson, Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw AMENDMENT TO RESOLUTION NO. 3174: At a previous board meeting, Resolution No. 3174 was adopted, authorizing necessary on and off site improvements to developers in a sum of not more than five years tax incremental income. This resolution was adopted with the express understanding that it is subject to the review and concurrence of the Mayor and Council. At the Council Meeting of 4-12-76, the Council approved this resolution with the exception that any reference to on and off site improvements for residential development should be omitted. Under the law there is no limit to the cost the Agency can incur in doing certain on and off site improvements. This resolution establishes that not more than five years tax incremental income can be promised. Anything over this five years must be approved by the Council first. The following reso- lution was introduced: 5104 " ' I:-'C'<~ ,. /} Ci~! ~ ....' '" '-f!# RESOLUTION NO. 3204 -- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING RESOLUTION NO. 3174, ADOPTED 3-18-76, AUTHORIZING NECESSARY ON AND OFF SITE IMPROVEMENTS TO DEVELOPERS IN A SUM OF NOT MORE THAN FIVE YEARS TAX INCREMENTAL INCOME .... WHEREAS, the Redevelopment Agency has adopted Resolution No. 3174, March 18, 1976, authorizing necessary on and off site improvements to developers in a sum of not more than five years tax incremental income; and WHEREAS, said resolution was adopted with the express understanding that it is subject to the review and concurrence of the Mayor and Common Council; and WHEREAS, this resolution was reviewed by the Mayor and Common Council on Monday, April 12, 1976; and WHEREAS, the Mayor and Council approved the concept and implementation of the Agency program, without recourse to the City, as related to financial assistance for on and off site improvements to qualified developers locating within specified redevelopment project areas within the City, with the following exception: That any reference to the providing of said on and off site improvements to residential developments shall be omitted. ... NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that Resolution No. 3174, adopted 3-18-76, is hereby amended by deleting the following paragraph: - "BE IT FURTHER RESOLVED that in the event it is deemed of benefit to either the Agency or the City, on a case by case basis, to provide necessary on and off site improvements for a residential development, then it shall be proper to provide such improvements in support of residential development, subject to the approval of the mayor and Common Council, on a case by case basis. II Motion was made by Stephenson and seconded by Guhin authorizing the adoption of Resolution No. 3204. The motion was carried by the following vote, to wit: Ayes: Stephenson, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw EXCHANGE AGREEMENT - BETWEEN THE CITY, COUNTY AND AGENCY: Authorization was requested for ratification of the execution of the Exchange Agreement between the City, the County and the Agency. The following reso- lution was introduced: ... - [ [ r L 5105 RESOLUTION NO. 3205 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, RATIFYING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY, COUNTY AND AGENCY FOR THE EXCHANGE OF PROPERTIES WHEREAS, on April 27, 1970, a Joint Powers Agreement was entered into between the Agency, the City, and the County, providing for the joint exercise of powers of these public entities for the development within the City of the area bounded on the south by Third Street; on. the north by 5th Street; on the east by Sierra Way; and on the west by Arrowhead Avenue, commonly referred to as the "Super Block"; and WHEREAS, this proposed "Super Block" is within the Central City East Project Area; and WHEREAS, all parties have expressed their willingness to enter into an Agreement providing for the exchange of properties within this area. This exchange provides for the relocation of the City Library, the Police Department and the Central Fire Station to other areas within the City over a period of years; and WHEREAS, the Redevelopment Agency Board has reviewed the concept and has determined that the execution of this agreement is to the best interest of the Agency, the City and the County. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino, California, does hereby ratify the execution of an agreement between the City, County and the Agency for the exchange of properties within the "Super Block", Central City East Project Area. Motion was made by Stephenson and seconded by Guhin authorizing the adoption of Resolution No. 3205. The motion was carried by the following vote, to wit: Ayes: Stephenson, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw USE OF OFFICE SP ACE AT 444 N. MT. VIEW SAN BERNARDINO PAGEANT ASSOCIATION: The San Bernardino Pageant Association has requested the occupancy of office space in Agency owned property at 444 N. Mt. View for the period of April 30, 1976 through July, 1976. After review, motion was made by Blum and seconded by Guhin approving the occupancy of office space at 444 N. Mt. View by the San Bernardino Pageant Association for the period 4-30-76 through July, 1976, at no charge. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Stephenson and Green Noes: None Abstention: None Absent: Wilson and Obershaw 5106 SAFECO TITLE BUILDING SITE - CM ENGINEERING: ... It was explained that the escrow instructions with SAFECO provide that the Agency will provide on and off site improvements. these improvements are listed in the instructions. Authorization was requested to enter into a con- tract with CM Engineering to perform the engineering required for the off and on site improvements. After review. the following resolution was introduced: ..J RESOLUTION NO. 3206 RESOL TUION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING EXECUTIVE DIRECTOR TO ENTER INTO CONTRACT WITH C M ENGINEER- ING. PROFESSIONAL SERVICES FOR SAFECO TITLE INSURANCE COMPANY. WHEREAS. the Redevelopment Agency desires to engage professional services for plans for off-site improvements for SAFECO Title Insurance Co; and WHEREAS. C M Engineering has proposed to provide these services for an amount not to exceed $3.000.00. NOW. THEREFORE. BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino. California. that the Chairman and Acting Secretary are hereby authorized to enter into Contract for Plans for Off-Site Improvements for SAFECO Title Insurance ,.. Co. for an amount not to exceed $3.000.00. ........ Motion was made by Guhin and seconded by Stephenson authorizing the adoption of Resolution No. 3206. The motion was carried by the following vote. to wit: Ayes: Guhin. Stephenson. Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw PURCHASE OF THE YMCA: The purchase price of the YMCA is $600.000. The YMCA desires to purchase the Jefferson School site from the Agency. The purchase price of the Jefferson School Site will be deducted from the price of the YMCA. The Agency will also be receiving $260.000 from the City in Community Development Funds for the sale of the land purchased from the YMCA to the City. Authorization was requested for the purchase of the YMCA. The following resolution was introduced: RESOLUTION NO. 3207 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO. CALIFORNIA. AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE ALL DOCUMENTS NECESSARY FOR THE PURCHASE OF THE YMCA PROPERTY ..... ...... [ [ r L 5107 WHEREAS, the Redevelopment Agency of the City of San Bernardino desires to purchase the YMCA property located at the Northwest corner of 5th and "E" Streets for the future development of the Senior Citizens Center; and WHEREAS, Resolution No. 3188, adopted 4-1-76, authorized the disposition of the Jefferson School Site to the YMCA; and WHEREAS, the purchase price of the YMCA is $600,000; and WHEREAS, the Redevelopment Agency is selling the Jefferson School site to the YMCA and will deduct the sales price from the price to be paid by the Agency for the acquisition of the YMCA; and WHEREAS, the City of San Bernardino has authorized an expenditure of $260,000 from Community Development Funds which will be received by the Redevelopment Agency for the sale of the land to the City of San Bernardino. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Acting Secretary are hereby authorized to execute all documents necessary for the purchase of the YMCA property for $600,000. BE IT FURTHER RESOLVED that the Redevelopment Agency will be exchanging the Jefferson School Site for a portion of said $600,000 YMCA property, and shall be further receiving Community Development Funds in the amount of $260,000 from the City of San Bernardino for said transaction. Motion was made by Stephenson and seconded by Blum authorizing the adoption of Resolution No. 3207. The motion was carried by the following vote, to wit: Ayes: Stephenson, Blum and Green Noes: None Abstention: Guhin (because of his affiliation with the YMCA) Absent: Wilson and Obershaw AWARD OF CONTRACT, DEMOLITION OF YMCA BUILDING: Bids were received by the Agency for the demolition of the YMCA building. The low bid was received from Warren Duncan. After review, the following resolution was introduced: RESOLUTION NO. 3208 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO CONTRACT WITH WARREN DUNCAN FOR DEMOLITION OF THE YMCA, UNIT NO.7, CENTRAL CITY NORTH. WHEREAS, the Redevelopment Agency of the City of San Bernardino invited competitive bids for Unit No.7, Central City North, Demolition and Site Clearance; and 5108 WHEREAS, an Invitation for Bid therefore was duly published in the San Bernardino Sun Telegram, a newspaper of general circulation for two weeks and an Affidavit showing such publication is on file in this Agency; and ., 'I ~ ..J WHEREAS, a number of such bids were received at the time and place specified and said bids were opened and read aloud in public. The lowest qualified bidder was offered by Warren Duncan in the amount of $9,840.00; and WHEREAS, the Redevelopment Agency of the City of San Bernardino has accepted the bid of Warren Duncan, as it is in the best interest of this Agency. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California that the bid of Warren Duncan be hereby accepted in the amount of $9,840.00 and the Chairman and Acting Secretary be hereby authorized to execute the Contract for Demolition and Site Clearance, Unit No.7, Central City North. BE IT FURTHER RESOLVED that this action on the part of the Redevelopment Agency is made with the express understanding that it is subject to the review and concurrence of the Mayor and Common Council. Motion was made by Stephenson and seconded by Blum authorizing the adoption of Resolution No. 3208, entering into contract with Warren Duncan for $9,840. The motion was carried by the following vote, to wit: Ayes: Stephenson, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson and Obershaw ., .....J MATICH CORPORATION CONTRACT, VAL VISTA ESTATES UTILITY TRENCHING: Mr. Jones, Operations Officer, stated that at a previous meeting the Board approved some trenching by the Agency for Tract 8964. Edison Company was unable to put together the trenching with the Agency doing the cable TV as originally anticipated. Mr. Jones requested authorization to have the services performed. Matich Corporation has stated that they will do the work for a Change Order in the amount of $24,815. It must be understood that a great portion of this amount will be reimbursed to the Agency by the utility companies. This work needs to be performed now, because effective July 1, 1976 all construction trades will receive a cost of living increase, and the cost to perform the work will increase greatly. After review, the following resolution was introduced: RESOLUTION NO. 3209 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO CHANGE ORDER NO.2, WITH MATICH CORPORATION FOR AN AMOUNT NOT TO EXCEED $24,815.00, TRACT NO. 8964, STATE COLLEGE PROJECT. ~ ..... r L [ r ~ ~ 5109 WHEREAS, the Agency has obtained a cost figure from the contractor to perform trenching and backfill at Tract No. 8964, Val Vista Estates; and WHEREAS, this additional work was to be performed originally by Southern California Edison Co., with General Telephone Co. , Liberty TV Cable and the Agency sharing in the cost. Edison worked approximately two months trying to put the services together with- out results. At the Board meeting of April 15 , 1976, the Board approved the Agency sharing in said cost. On April 16 , 1976, at a meeting held at the Agency between the utility com- panies and this Agency, the opinion was unanimous that there would have to be some other course of action taken in order for the installation of the utility services to become a reality. This Agency accepted the responsibility of putting these services together which has been completed except we do not have as yet the commitment from the three utility companies as to the amount which will be reimbursed to this Agency. Upon receipt of proper docu- mention indicating the amount to be reimbursed, this item will be presented to the Board for acceptance; and WHEREAS, effective July 1, 1976, all construction trades will receive a cost of living in- crease thereby increasing the cost of said contract if the project is not yet completed. NOW THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Acting Secretary be hereby authorized to enter into Change Order No. 2 with Matich Corporation for an amount not to exceed $24,815.00. Contract price now set at $208,535.65. Motion was made by Blum and seconded by Guhin authorizing the adoption of Reso- lution No. 3209. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Stephenson and Green Noes: None Abstention: None Absent: Wilson and Obershaw Mr. Jones stated that Matich Corporation is requesting an extension to their contract in the amount of 53 days. This extension is for various utility delays to perform the extra work. After review, the following resolution was introduced: RESOLUTION NO. 3210 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO CHANGE ORDER NO. 2 WITH MATICH CORPORATION FOR A TIME EXTENSION NOT TO EXCEED 53 DAY, TRACT NO. 8964, STATE COLLEGE PROJECT. WHEREAS, due to various utility delays beyond the Contractor's control, it is the Opinion of the Agency that Matich Corporation be awarded a 53 day time extension to his original contract. 5110 NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California that the Chairman and Acting Secretary be authorized to enter into Change Order No.2 with Matich Corporation, Tract No 8964, for a 53 day time extension to their contract. Contract expiration date is now June 30, 1976. .... ....,j Motion was made by Guhin and seconded by Stephenson authorizing the adoption of Resolution No. 3210. The motion was carried by the following vote, to wit: Ayes: Guhin, Stephenson, Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw RESIGNATION OF EVERETT SWING, TECHNICAL ADVISORY COMMITTEE: A letter was presented from Everett Swing resigning as a member of the Technical Advisory Committee. Prior to this, three other members have resigned, Marvin Reimer, Fred Thornes and Boyce Harper. Mr. Green explained that at the formation of the Technical Advisory Committee, the members of the committee were appointed by the Board. He stated that by the next meeting the staff would have a recommendation dealing with the over- all formation of this committee. It is felt that, because the members of this committee are also members of the Central City Executive Committee, perhaps the Agency could use the Executive Committee as their advisory committee. This would have to be review by the staff and the Executive Committee. Mrs. Blum asked for a listing of the current members. She was advised that a list would be mailed. ..... .... Motion was made by Stephenson and seconded by Guhin accepting the resignation of Mr. Everett Swing, Mr. Marvin Reimer, Mr. Fred Thornes and Mr. Boyce J . Harper, as members of the Technical Advisory Committee, with regrets. The motion was carried by the following vote, to wit: Ayes: Stephenson, Guhin, Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw EXECUTIVE SESSION: 5: 55 p.m. - The Chairman recessed the meeting for an Executive Session for the purpose of discussing litigation matters. 6: 05 p.m. - The meeting of re-opened. Motion was made by Stephenson and seconded by Guhin authorizing the Agency Council to pursue the filing of a Notice of Appeal in the case of the Agency vs . the County Auditor/Assessor. It was the feeling of the Board that the Agency could have a chance to win the suit at the appellate level. The loss of the suit would mean a loss of approximately $210,000 per year in tax incremental income. The motion was carried by the following vote, to wit: Ayes: Stephenson, Guhin Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw ~ ..." r L [ r \- 5111 Motion was made by Guhin and seconded by Stephenson authorizing the Agency Council to file an appeal in the case of the Old Stone Bank/Lerners. The motion was carried by the following vote, to wit: Ayes: Guhin, Stephenson, Blum and Green Noes: None Abstention: None Absent: Wilson and Obershaw ADJOURNMENT: Motion was made by Stephenson and seconded by Blum adjourning the meeting at 6: 10 p.m. The motion was carried by the following vote, to wit: Ayes: Stephenson, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson and Obershaw R. E. Shadwell, Jr. Acting Executive Director 5112 MINUTES OF A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 3RD DAY OF JUNE, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA .... _w ..." The Chairman called the meeting to order at 4: 10 p.m. Roll Call: Agency Members Present: Blum, Obershaw, Wilson, Guhin and Green Agency Members Absent: Stephenson and Hinojosa Also Present: Mr. Shadwell, Acting Secretary; Mr. Flory, Agency Counsel; and Mrs. Baxter, Executive Secretary The Chairman stated that because of the number of people in the audiance, the meeting would be adjourned for 10 minutes, and reconvened in the Council Chambers. Motion was made by Guhin and Seconded by Obershaw adjourning the meeting to the Council Chambers. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Wilson, Guhin and Green Noes: None Abstention: None Absent: Stephenson and Hinojosa The Chairman reconvened the meeting in the Council Chambers at 4: 20 p.m. The following Board Members were present: Blum, Obershaw, Wilson, Guhin, Hinojosa, and Green. The following were absent: Stephenson Newly appointed Board Member ..., James Hinojosa was introduced to the members and welcomed to the Board. ......, MINUTES: The Minutes of the Regular Meeting of May 6, 1976 were submitted for approval. Mrs. Blum stated that on page 7, last paragraph, it states that she made a motion and also seconded the motion. Motion was made by Obershaw and seconded by Guhin approving the Minutes as corrected. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Guhin and Green Noes: None Abstention: Wilson and Hinojosa Absent: Stephenson Mr. Wilson and Mr. Hinojosa were not present at the last meeting. EXPENDITURES: The Expenditures for the month of April, 1976 were submitted for approval. Motion was made by Guhin and seconded by Wilson approving the expenditures as sub- mitted. The motion was carried by the following vote, to wit: Ayes: Guhin, Wilson, Blum, Obershaw, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson REPORT OF AGENCY COUNSEL: ~ Mr. Flory stated that he has nothing to report at this time. ..... r I L [ r $ '-- . 5113 PUBLIC HEARING, SALE OF PARCELS 135-101-08 & 09, CENTRAL CITY NORTH: The Chairman reported that this is the time and place so designated for a Public Hearing regarding the proposed sale of parcels 135-101-08 & 09 to John M. Mills, Eulalia Mills Armour and George M. Mills, Central City North. It was reported that parcel 09 cannot be disposed of at this time. That property presently has a trust deed against it. The note holder has refused to release the parcel for a substitution. Parcel 08 can be sold at this time and parcel 09 later, pending the release of the parcel. Mr. Bill Leonard, Realtor for the transaction, is negotiating with the owner for the release of this parcel. The Chairman asked if there were any objections to the proposed sale. Bill R. Leonard, stated that he will answer any questions he can regarding the transaction. There being no obj ections or questions voiced, the public hearing was closed. AUTHORITY TO SELL PARCEL 135-101-08, TO JOHN M. MILLS, EULALIA MILLS ARMOUR & GEORGE M. MILLS, CENTRAL CITY NORTH: The following resolution was introduced: RESOLUTION NO. 3211 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE SALE OF PARCEL 135-101-08 TO JOHN M. MILLS, EULALIA MILLS ARMOUR & GEORGE M. MILLS, CENTRAL CITY NORTH WHEREAS, the Redevelopment Agency of the City of San Bernardino, California, declared its intention to dispose of parcels 135-101-08 and 09, Central City North, to John M. Mills, Eulalia Mills Armour and George M. Mills, by Resolution No. 3201, adopted 5-6-76; and WHEREAS, public disclosure of the Agency I s intention to sell this property to said purchaser was made in accordance with Section 33431 of the California Health and Safety Code, and was published in the Sun Telegram on May 17, 1976 and May 24,' 1976; and WHEREAS, due to the inability to clear title to parcel No. 135-101-09 at this time, the Agency is unable to dispose of this parcel, but do desire to consider the sale of this parcel to the developers pending negotiations for title clearance; and WHEREAS, a Public Hearing regarding the proposed sale was held on June 3, 1976, in accordance with said Section 33431 of the California Health and Safety Code; and WHEREAS, the offering price is $30,000, which appears to be an equitable purchase price for this reuse parcel; and WHEREAS, the parcel is ideally located to enhance the Central Business District redevelopment and to encourage construction of such a nature as to positively con- tribute to the Agency's tax incremental position; and 5114 WHEREAS, the real estate broker, so designated by the purchasers, is San Gorgonio Land Company. ... ..... NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Acting Secretary are hereby authorized and directed on behalf of the Agency to enter into Disposition Agreement for the sale of parcel 135-101-08 to John M. Mills, Eulalia Mills Armour and George M. Mills, Central City North. BE IT FURTHER RESOLVED that upon redevelopment of these parcels by the purchasers, the real estate firm of San Gorgonio Land Company, shall be so authorized the payment of a Finder's Fee, in accordance with Resolution No. 3167 of the Redevelopment Agency, providing for the payment of Finder's Fees and setting forth the pay incre- mental schedule. Motion was made by Obershaw and seconded by Blum authorizing the adoption of Resolution No. 3211. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Wilson, Guhin and Green Noes: None Abstention: Hinojosa Absent: Stephenson Mr. Hinojosa stated that he abstained because he was unfamiliar with the transaction. HOTEL DEVELOPMENT, ROBERT SCHWARTZ, PROGRESS REPORT: .. Mr. Green stated that some time ago the Agency entered into a contract with Robert Schwartz for the securing of a developer for the hotel site. Mr. Schwartz has prepared the promotion package under the terms of the contract and it has been presented to the Board Members for approval. Mr. Schwartz was presented. el ~ ....J Mr. Robert Schwartz read into the record the following letter: June 2,1976 Redevelopment Agency for the City of San Bernardino City Hall San Bernardino, California In accordance with our contractural obligations, we have now completed phases one and two whereby we have (phase one) established firm letters of interest from four major hotel chains, Sheraton, Universal, Radisson and Grand Metropolitan and (phase two) have now completed our presenta- tion package as evidenced by this booklet being introduced to the Board at this writing. We wish to insure your understanding that this book represents a synopsis of our support materials which include complete feasibility studies, detailed construction estimates, schematic floor plans including public areas, back-of- the-house support areas, detailed Furniture, Fixture and Equipment Budgets, .. ....." Gr37r [ [ r L 5115 structural and mechanical analysis and calculations and detailed financing information all too cumbersome, obviously to include in our presentation book- let, but available to those interested developers and lenders when they evince their desire to investigate our project more thoroughly. We can assure you that we have done our "homework" and that we can thoroughly substantiate the viability of our project. We are now entering phase three which requires our formalizing the City's degree of support and then solidifying the management company's committment. Once having accomplished these matters, we will be ready, to proceed with our last phase which is to arrange for the lead developer to enter into a firm contract with the appropriate agencies and councils committing to break ground by a specific date for the construction of the hotel which we have described within our booklet. We are extremely positive at this point in time towards our attaining fruition within the next 120 days, assuming that the City stands ready to lend its support, as we feel it will . We have several major lead developers on tap at this time and all have given us extremely positive reactions towards our concept. They are looking forward to the completion of Phase three as soon as possible so that they can make more definitive judgements. We have also been in preliminary session with our finan- cial consultants who have advised that there are several major lending institutions eager to get into the "market" at this time. With the cooperation of all concerned, we hope to accomplish our next tasks within the next thirty days and, again, hopefully to attain fruition by the fall of this year. Respectfully Submitted, Hotel Development Consultants Robert L. Schwartz President Mr. Green stated that he and Mr. Shadwell have met with Mr. Schwartz and various consulting firms referenced in the Promotion Package, and are convinced that Mr. Schwartz has fulfilled the obligations of Phase Two of the Agreement. The Agreement was read. All concurred. Motion was made by Blum and seconded by Obershaw accepting the Promotion Package presented by Mr. Robert Schwartz and approving the payment for Phase Two of his Agreement with the Agency. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Wilson, Guhin, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson Mr. Green stated that the Agenda would be taken out of order to accommodate audience participation. 5116 AWARD OF CONTRACT FOR FURNISHINGS, PUBLIC ENTERPRISE CENTER: --.. Mr. Green stated that bids were advertised for movable equipment for the Public Enterprise Center. Five sets of contract documents were picked up. Two bids were submitted. The estimate for the movable equipment supplied by Gruen Assoc. was $100,000. Totalplan Inc. submitted a bid in the amount of $116,000 and Boulevard Office Equipment Co. submitted a bid in the amount of $115,177. The recommendation of the staff is to award the contract to Boulevard Office Equipment, the low bidder. -l Mr. Dick Cretors, Totalplan, stated that he would like the staff recommendation to be reviewed. He stated that the bid documents provided that a bidder could recom- ment alternatives to the specifications. The bids called for blackout draps in all rooms in one section, and in another section it called for blackout draps in all rooms except one. Mr. Cretors stated that they spoke to Gruen I s and were told that they could bid both ways, which they did. He stated that if you took his lower bid, which eliminated the blackout draps in unnecessary rooms, he would be the low bidder. Mr. Cretors also stated that he felt the contract should be awarded to a San Bernardino firm, in that they could service easily. Ms. Drummond, Gruen Associates, stated that Totalplan did call her regarding this matter. The specifications do provide for suggestions or alternative methods. She did not speak to Boulevard regarding this matter. Mr. Flory stated that the bid documents provide that the bid will be awarded to the low bidder and that Boulevard is the low bidder. Mr. Green stated that the Agency cannot assume that Totalplan would be low if the subtraction was made for the deletion of the blackout draps in unnecessary rooms. Mr. Green asked Ms. Drummond if it was her opinion that both bidders had bid the job in compliance with the specifications. She stated that they did. It was determined that the furnishings are all from the same company and are of the same quality. This is provided for in the specs. .., j~ ....J Mrs. Grice, Executive Director of Operation Second Chance, stated that the money spent by the Agency will be paid back by Operation Second Chance. They feel that the contract should be awarded to the San Bernardino firm. Their purpose is main- taining jobs in San Bernardino and they feel that a San Bernardino firm should be given first choice. Maintenance will be needed on the furnishings and a San Bernardino firm could service them better than an out-of-town firm. Mr. Flory stated that according to Gruens, Boulevard did comply with contract specifications, and in his opinion the Board must either award the contract to Boulevard, the low bidder, or rej ect all bids and readvertise. The length of time required for readvertising was discussed. Mrs. Grice stated that they are already behind schedule. Mr. Jones, Operations Officer, stated that the bids are guaranteed for 30 days after bid opening. It was determined that a special or adjourned meeting could be held before this 30 day expiration period. This would give Mr. Flory, Agency Counsel, time to review the matter and meet with the attorneys from both firms. .... ....., ,.- L [ ".... ~ , ....... 5117 Motion was made by Blum and seconded by Wilson referring the matter to Legal Counsel for determination, and instructing the Acting Secretary to place the item on the agenda for a special or adjourned meeting, prior to the 30 day guarantee period. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Wilson, Guhin, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson AMENDMENT TO LEASE AGREEMENT, OPERATION SECOND CHANCE, PUBLIC ENTERPRISE CENTER: Mr. Green explained that the Agency met with Operation Second Chance regarding requested amendments to the Land Lease Agreement between Operation Second Chance and the Agency. This lease is for the Public Enterprise Center. An acceptable amendment was drafted and sent to the Board Members for review. Yesterday he was advised that other revisions are requested. After review, motion was made by Obershaw and seconded by Guhin referring this matter to the Legal Counsel for review and re-drafting of the proposed Amendment for review at a future Board Meeting. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Wilson, Guhin, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson SENIOR CITIZENS HOUSING - ALEXANDER & WEISSMAN DEVELOPERS: Mr. Clyde Alexander was presented to the Board. Mr. Alexander stated that their their application for development was submitted to the California Housing Finance Agency and the site has been approved. It is the only site approved in San Bernardino. No firm committment has been received as yet but they are pursuing approval. Within 30-60 days HFA will know the amount of funds that will be available for loans of this specific nature. Mr. Alexander stated that they are therefore requesting a 90 day extention of their exclusive right to negotiate for this development. After review, the following resolution was introduced: RESOLUTION NO. 3212 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO CONTRACT AMENDMENT ALEXANDER & WEISSMAN DEVELOPERS, EXTENDING EXCLUSIVE RIGHT TO NEGOTIATE FOR SR. CITIZENS HOUSING COMPLEX WHEREAS, the Redevelopment Agency, by Resolution No. 3168, granted an exclusive right to negotiate for the development of the Senior Citizens Housing Complex, Central City North, to Nathan Weissman/Clyde Alexander; and WHEREAS, pursuant to this resolution, on March 12, 1976 a contract was entered into between the Agency and Nathan Weissman/Clyde Alexander for a 90 day exclusive right to negotiate for said development - said 90 day period to expire June 12, 1976; and 5118 WHEREAS, Weissman/Alexander have requested a 90 day extension for further negotiations; and .. ..." WHEREAS, the Agency Members have reviewed their request and have found that the request is warranted. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Acting Secretary are hereby authorized to enter into Contract Amendment with Nathan Weissman/Clyde Alexander (Alexander & Weissman Developers) extending the exclusive right to negotiate an additional 90 days. The expiration date of this extension is September 12, 1976. Motion was made by Obershaw and seconded by Wilson authorizing the adoption of Resolution No. 3212. The motion was carried by the following vote, to wit: Ayes: Obershaw, Blum, Wilson, Guhin, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson CHANGE ORDER , SUNRAY CONSTRUCTION COMPANY PUBLIC ENTERPRISE CENTER: Mr. Jones, Operations Officer, explained that this is a credit change order. Additions to the contract amount to $1,483.02. A deletion to the contract in the amount of $2,005 is allowed because of labor and material which is no longer required since the Agency is now installing a fire sprinkler system. The dif- ference will be a credit to the contract in the amount of $521.98. The contractor is further requesting a 25 day extension for additional work to be installed due to the fire sprinkler system. The staff feels that the extension of time is justified. After review, the following resolution was introduced: ... ..... RESOLUTION NO. 3213 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO CHANGE ORDER NO.6 WITH SUNRAY CONSTRUCTION CO. FOR A DECREASE IN CONTRACT PRICE IN AMT OF $521.98 & A 25 DAY EXTENTION PERIOD. CONTRACT EXPIRATION DATE NOW SET FOR JULY 3, 1976. WHEREAS, the Agency has received a request for an increase in construction costs and has obtained a credit amount for gypsum board; and WHEREAS, this Agency recommends a Change Order be approved per the cost breakdown as listed below; and WHEREAS, Sunray Construction Co. has also requested a 25 calendar day extension; anr WHEREAS, these changes have occurred due to certain conditions encountered in the ...., r L r- L r I L.. 5119 field during construction. The Agency's architect has reviewed all costs involved and has indicated that they have found them reasonable. See the following: Provide wall angles at acoustic ceilings in white, in lieu of black: Change 4 light fixtures to achieve sufficient clearance without inter- fering with the waterproof membrane: Move gas line from the original location to south side of building. This is desired in order that gas meter be enclosed within fence area: Construct and install drinking fountain in court at said structure: Install an alarm cut off switch: $ 87.11 $ 121. 08 $ 356.79 $ 474.19 $ 443.85 Total Increase: $1,483.02; and WHEREAS, the request for 25 day time extension is for additional work to install the fire sprinkler system in the center. We feel said extension is justified, therefore, we recommend the contractor be given the 25 day extension with completion date set for July 3, 1975; and WHEREAS, the gypsum board is a credit to the Agency for material and labor which is no longer required since we are now installing a fire sprinkler system in said building. Total amount of credit: $2,005.00. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency that the Chairman and Acting Secretary be authorized to enter into Change Order No. 6 with Sunray construction Co for a decrease in the amount of $521.98. Also that a 25 day time extension be allowed thus setting July 3, 1976 as new contract expiration date. Motion was made by Wilson and seconded by Guhin authorizing the adoption of Resolution No. 3213. The motion was carried by the following vote, to wit: Ayes: Wilson, Guhin, Blum, Obershaw, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson Mrs. Frances Grice, Executive Director of Operation Second Chance, stated that they are unaware of many of the changes that are taking place and that they actually do not know what has been spent to date. After discussion the Chairman assured her that she would be fully informed on all her matters of concern. 5: 40 p.m. - Mr. Wilson excused from the meeting CHANGE ORDER, CHJ MATERIAL LAB, INSPECTION SERVICES PUBLIC ENTERPRISE CENTER: Mr. Jones explained that because of the time overrun in the construction contract with Sunray regarding the Public Enterprise Center, the contract with CHJ for inspection services must be increased. There must be an inspector on the job for the length of the contract. After review, the following resolution was intro- duced: 5120 RESOLUTION NO. 3214 ~ RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO CONTRACT AMEND- MENT NO. 1 TO CONTRACT WITH C H J MATERIALS, LAB. FOR AN AMOUNT NOT TO EXCEED $7,200. --PUBLIC ENTERPRISE CENTER ...."j WHEREAS, the contractor's construction schedule is behind approximately three months. The original contract was due for completion date on June 8, 1976, however, the revised schedule now shows that his completion date is the latter part of August, 1976; and WHEREAS, the contract documents provide for $100.00 per day for liquidated dam- ages, should the contract work not be completed within the time stipulated, in- cluding any extension of time for excusable delays, as provided; and WHEREAS, it has been determined that a review of the contract over-run days be made after project is completed to determine if the $100.00 per day liquidated dam- ages could be imposed in order to reimburse this Agency for a part or all of the additional costs for the inspection service expenditures requested under Contract Amendment; and WHEREAS, this Agency has received a proposal from C H J Materials Lab. to con- tinue inspection services on said project for an estimated three months at $2,400 per month for an amount not to exceed $7,200.00. .... --- NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California that the Chairman and Acting Secretary be hereby authorized to enter into Contract Amendment No.1 with C H J Materials, Lab. for an amount not to exceed $7,200.00. Contract price now set for $26,368.40. Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3214. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Guhin, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson and Wilson 5: 50 p . m. - Mr. Wilson returns to the meeting. CIVIC LIGHT OPERA ASSOCIATION - AUDITS: Some time ago the Board requested a review of the provision within the lease agreement with Civic Light Opera of the requirement of yearly audit reports. Because of the cost involved Civic Light Opera has been submitting unaudited reports instead. Mr. Don Rogers, CPA, was presented to the Board. Mr. Rogers stated that there is a substantial reduction in cost to the CLO by providing the unaudited reports. He requested that CLO be allowed to continue with this pro- cedure and that the Lease Agreement be amended to reflect this change. After review, the following resolution was introduced: ..... ......, [ [ [ 5121 RESOLUTION NO. 3215 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO EXECUTE AMENDMENT TO LEASE AGREEMENT WITH THE CIVIC LIGHT OPERA ASSOCIATION, CALIFORNIA THEATER WHEREAS, the Redevelopment Agency entered into a Lease Agreement with the Civic Light Opera Association, May 4, 1973, for the lease of the California Theater from the Redevelopment Agency; and WHEREAS, Civic Light Opera Association has requested revisions to the Lease Agreement, thereby permitting them to submit annual Unaudited Reports in lieu of annual Audits; and WHEREAS, the Redevelopment Agency has reviewed the request and has found it warranted. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to enter into an Amendment to the Lease Agreement with the Civic Light Opera Association, amending the requirement of annual audited reports and providing for annual unaudited reports. Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3215. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Blum, Hinojosa, Wilson and Green Noes: None Abstention: None Absent: Stephenson MT. VERNON ASSOCIATES, PROGRESS REPORT: Mr. Fred Herrera was presented to the Board. Mr. Herrera stated that they now have five firm tenants for the Mt. Vernon Community Center. They are hoping for ten tenants. They believe they will be able to have all arrangements made by the end of the 90 day period to present an offer. Mr. Obershaw stated that he would like to see Mr. Herrera come back with another report for the July 1st meeting, with architectural renderings if possible. The Members thanked Mr. Herrera for the presentation. PROPOSAL FOR FOURTH MAJOR DEPARTMENT STORE, FRANK DOMINGUEZ: Mr. Green stated that the Agency has received an offer to purchase property within the mall parking area for the development of a fourth major department store to be connected to the mall. It is necessary for the Agency to understand that if developed, additional parking will be required. 5122 Frank Dominguez, Variir Research Company, was presented to the Board. Mr. Dominguez presented the rendering of his proposed development. He stated that he followed the plans of Gruen regarding the area and design proposed. The layout was reviewed. He stated that upon approval of the offer they will submit their deposit check for the land. He further stated that he is not in a position to disclose the name of the department store to occupy the building. -. ....J Mrs. Blum stated that the name of the department store was very important to her in any decision she would make regarding the acceptance of the offer. All Members agreed. Mr. Green stated that the Agency would welcome the development of a fourth department store, but that many more issues needed to be discussed regard- ing its development and the extent of public improvements that the Agency would be required to perform. He suggested that the matter be referred to staff for review and then brought back before the Board. Mr. Obershaw stated that he could not consider an offer as "firm" without first receiving a deposit check for the land. Mr. Dominguez stated that the tenant would of course be subject to the Agency's approval after the contract is signed. He also stated that he would submit a deposit check after approval of the offer is received. Mr. Green stated that this offer would also have to be approved by the parties to the Reciprocal Easement Agreement. The additional parking needed would be of concern to the Agency. These costs must be reviewed. It was noted that Vanir Research submitted with their offer a form naming themselves as realtor responsible for the transaction, thereby entitling them to a finder's fee. Mr. Green stated that the Agency I s resolution establishing the Finder's Fee Policy disallows any finder I s fees for developments to the Central City Mall. .... -- After discussion, motion was made by Wilson and seconded by Obershaw referring the matter to staff for review, with a report to be submitted back to the Board. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Guhin, Wilson and Hinojosa Noes: None Abstention: Green Absent: Stephenson SECURITY FOR THE PURCHASE OF THE YMCA SALE: To satisfy the land transaction between the Agency and the YMCA for the purchase of the existing YMCA site, a request was made to pledge as security two parcels of land lying directly north of the City Hall as security. Mr. Flory stated that there are no legal problems to this procedure. The following resolution was intro- duced: RESOLUTION NO. 3216 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, PLEDGING FOR SECURITY CER- TAIN PARCELS OF AGENCY OWNED PROPERTY, FOR THE PURCHASE OF THE YMCA PROPERTY, CENTRAL CITY NORTH ,., -...,JIll [ [ [ 5123 WHEREAS, the Redevelopment Agency, by Resolution No. 3207, authorized the purchase of the YMCA property located at the northwest corner of 5th and "E" streets for the future development of the Senior Citizens Center; and WHEREAS, the Redevelopment Agency is selling the Jefferson School site to the YMCA and has deducted the sales price of this parcel from the price to be paid by the Agency for the acquisition of the YMCA property, leaving an outstanding note balance of $280,000; and WHEREAS, it is the intention of the Agency to pledge as security certain parcels of Agency owned property, equivalent in appraised value to the outstanding note balance of $280,000. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Agency staff is hereby authorized to pledge as security for the purchase of the YMCA property, certain Agency owned parcels equivalent in appraised value to the outstanding note. Said parcels to be mutually agreed upon by the YMCA Board and the Agency staff. Motion was made by Obershaw and seconded by Blum authorizing the adoption of Resolution No. 3216. The motion was carried by the following vote, to wit: Ayes: Obershaw, Blum, Wilson, Hinojosa and Green Noes: None Abstention: Guhin (Mr. Guhin is affiliated with the YMCA) Absent: Stephenson ARCHITECTURAL FEES - SAN BERNARDINO UNIFIED SCHOOL DISTRICT: The Chairman asked that this item be continued at a future meeting. Motion was made by Obershaw and seconded by Guhin continuing the matter regarding architectural fees, San Bernardino Unified School District, to a future meeting of the Agency. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Guhin, Wilson, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson ELKS CLUB PARKING LEASE: The Chairman asked that this item be continued at a future meeting. Motion was made by Obershaw and seconded by Wilson continuing the matter regarding the Elks Club Parking Lease to a future meeting of the Agency. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Guhin, Wilson, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson CHANGE ORDER, MATICH CORPORATION, TRACT 8964, STATE COLLEGE: This change order is for a credit the Agency will receive for the deletion of a sidewalk along the east side of Roberts Avenue. The credit is in the amount of 5124 $2,182.50. The City Parks and Recreation Department requested that this action be taken. The City intends to landscape this area. The City further has requested " that the Agency provide them the credits obtained from the elimination of the ~ sidewalk in order that it can be applied to the landscaping of this area. The Members felt that the change order should be approved, but that the payment to the City in this amount should be withheld until the Agency receives some idea from Parks and Recreation of the cost of the landscaping for this area. The follow- ing resolution was introduced: RESOLUTION NO. 3217 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO CHANGE ORDER NO.3 WITH MATICH CORPORATION FOR A DELETION IN CONTRACT PRICE IN THE AMOUNT OF $2,182.50 WHEREAS, this Agency has obtained credits from the Contractor for deleting a side- walk along the east side of Roberds Avenue; and WHEREAS, this office recommends these credits be accepted in the amount of $2,182.50; and WHEREAS, the City Park and Recreation Department, with the approval of the City En- gineering Department requested this action be taken. The city intends to landscape the area which is a planter area located between Roberds Avenue and Blair Park parking lots. In addition, the City requested the Agency provide the credits obtained from the sidewalk be applied to the landscaping of said area. This was verbally agreed upon with the previous Executive Director; and .... l l:i ...J WHEREAS, the Board of Directs declined to approve any amount to be forwarded to the City Parks and Recreation Department. Said item will be forwarded to Agency Board upon obtaining cost figures for the landscaping. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino authorize the Chairman and Acting Secretary to enter into Change Order No. 3 with Matich Corporation deleting their con tract in the amount of $2,182.50. Contract price now set for $206,353.15. Motion was made by Blum and seconded by Guhin authorizing the adoption of Resolution No. 3217. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Obershaw, Wilson, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson ~ wJ r I t L r I \-.. r I I........ 5125 REQUEST FROM CLOVERLEAF DANCE CLUB: The Agency previously approved the use of agency property located on the east side of IIDII Street, between 4th and 5th Streets to the Cloverleaf Square Dance Club, for parking purposes. The Agency required that Cloverleaf provide a $1,000 clean up deposit. The City has stated that they will provide the necessary cleanup for this area. Mr. Green read the following City Memorandum into the record: May 28, 1976 To: Ralph Shadwell, Acting Executive Director Redevelopment Agency From: W. R. IIBobll Holcomb, Mayor Subject: Clover Leaf Square Dance Club I have been contacted by Mr. Howard Wicks of the Clover Leaf Square Dance group who indicates that the Redevelopment Agency has given them permission to use RDA property on IIDII Street, between 4th and 5th Street, to accommodate approximately 30 self-contained units for an overnight stay on June 22, 1976. Mr. Wicks requested that consideration be given to waive the Agency's require- ment for a $1,000 cleanup fee and I respectfully request that at the next Board meeting the Agency approve waiver of the cleanup fee, and the City will assume full responsibility in seeing that the property is cleaned up. Thank you for your consideration of this request. W. R. IIBobll Holcomb, Mayor WRH:rk Motion was made by Obershaw and seconded by Wilson waiving the condition of a $1,000 cleanup deposit by Cloverleaf Square Dance Club, in that the City has assumed full responsibility for said cleanup. ,The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Guhin, Wilson, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson REQUEST FROM MAYOR HOLCOMB REGARDING SORISTO NOTE: Mr. Green read the following letter from Mayor Holcomb into the record: May 27, 1976 Redevelopment Agency Board of Directors 300 North IIDII Street San Bernardino, CA 92418 5126 Gentlemen: Re: Florence J. Soristo .... On March 21st the quarterly annual interest payment on the Soristo note was due and payable. On March 29th the Agency wrote to Mrs. Soristo offering to restructure the note payments whereby 2% of the interest would be deferred until maturity. ...., In all fairness, I believe the Agency should have been current on all pay- ments prior to the March 29th offer. I would, therefore, seriously urge that you pay Mrs. Soristo all interest due as of March 21st. She is also objecting to the ten year deferment. After giving this matter a great deal of consideration, it would appear that if a parking district is formed there would be no need for a ten year extension. On the other hand, if the dis- trict is not formed, there is no need for the Agency to hold the property. I would, therefore, request of the Agency to reconsider the ten year ex- tension program and to examine the possibility of offering a much earlier maturity to all noteholders contingent upon the formation of a parking dis- trict, plus a reasonable time to sell bonds with which to purchase the pro- perty. Thanking you for your consideration in the matter, I remain Very truly yours, W. R. "Bob" Holcomb, Mayor WRH: r k ... ...,.j Mr. Green requested that no action be taken on this matter at this time. requested that the matter be discussed following an executive session. members agreed. He All OTHER BUSINESS: Mr. Wesley Jefferson, Operation Second Chance, requested information as to the total anticipated cost for the Public Enterprise Center building. Mr. Green stated that he would instruct the staff to prepare a listing of all the costs spent and anticipated to be spent. 6: 30 p.m. - The Chairman adjourned the meeting to the Redevelopment Agency Board Room. 6: 40 p.m. - The meeting was reconvened in the Board Room. The Chairman requested that the meeting be closed for an Executive Session 7: 15 p.m. - The Executive Session was closed and the meeting re-opened. ~ ..... r , I...- ,- "'"- r- '-- 5127 Motion was made by Obershaw and seconded by Guhin that if the funds are available the Redevelopment Agency will pay to those note holders in default the interest payable to them up to and including April 15, 1976, at the interest that the notes bear, as a token of the Agency's intentions to satisfy the obliga- tion. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Wilson, Guhin, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson ADJOURNMENT: Motion was made by Guhin and seconded by Obershaw adjourning the meeting at 7: 30 p.m. to Monday, June 7, 1976, City Council Chambers, 2: 00 p.m. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Guhin, Wilson, Hinojosa and Green Noes: None Abstention: None Absent: Stephenson R. E. Shadwell, Jr. Acting Secretary 5128 -- MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDE- VELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALI- FoRNIA, HELD THE 7TH DAY OF JUNE, 1976, CITY COUNCIL CHAMBERS, 300 NORTH "D" STREET, SAN BERNARDINO, CA -- Mayor Pro Tempore Lackner opened the Joint Public Hearing of the City Council and the Redevelopment Agency at 2: 00 p.m. on the Redevelopment Plan for the Southeast Industrial Park Redevelopment Project Area. The following were present: Mayor Pro Tempore Lackner, Councilmen Campos, Katona, Hudson, Hobbs and Ralph Prince, Marshall Julian, and Lucile Goforth. Absent: Mayor Holcomb, Councilman Wheeler and Councilman Hammock. Chairman Wallace Green called the Redevelopment Agency to order. The following Agency Members were present: Green, Guhin, Obershaw, Stephenson, Hinojosa, Wilson and Blum. Absent: None Also Present: Ralph Shadwell, Acting Executive Director; Wm. A. Flory, Agency Counsel; and Mrs. Baxter, Executive Secretary Mayor Pro Tempore Lackner stated that this is the time and place so designated for the Joint Public Hearing on the Redevelopment Plan for Southeast Industrial Park. He read the history of the approval actions taken, as required by law, towards the adoption of this proposed project area, as follows: .... 1. The Mayor and Common Council adopted Resolution No. 12354 on March 1, 1976, designating a new survey area. ....., 2. The Planning Commission adopted Resolution No. 38 on March 2, 1976, selecting the project area and directing preparation of a Preliminary Plan; the Commission adopted the Preliminary Plan through Resolution No. 39 on March 16, 1976. 3. The Redevelopment Agency approved the Preliminary Plan through the adoption of Resolution No. 3172, March 18, 1976. 4. The Redevelopment Agency adopted Resolution No. 3177 on April 1, 1976 approving the Redevelopment Plan, a Redevelopment Plan Report and a Draft Environmental Impact Report. 5. The Planning Commission made its report as to conformity with the City of San Bernardino General Plan and approved the Redevelopment Plan, the Report and the Draft EIR through its adoption of Resolution No. 43 on April 6, 1976. 6. The Redevelopment Agency, by Resolution No. 3203, adopted May 6, 1976, approved a Supplement to the Redevelopment Plan for Southeast Industrial Park. Contents of this supplement include the deletion of area located within the County and currently being utilized as an airport facility. ..... -- [ r L [ 5129 7. The Planning Commission, by Resolution No. 42, adopted May 18, 1976, approved the supplement to the Redevelopment Plan for Southeast Industrial Park. Councilman Wheeler arrives at the meeting and takes his place at the Council Table. Mayor Pro Tempore Lackner stated that all appropriate actions required to arrive at this Joint Public Hearing on Southeast Industrial Park have been completed and approved, as required. Mayor Pro Tempore Lackner outlined the procedures and sequence to be followed during the remainder of the proceedings, and submitted the Redevelopment Plan, as supplemented, the Redevelopment Report, the Keyser-Marston Report, the EIR and Notice of Public Hearing and Agency letter to property owners into evidence and requested action of the City Council to file. Councilman Hobbs made a motion, seconded by Councilman Campos and unanimously carried, that the Redevelopment Plan, as supplemented, the Redevelopment Report, the Keyser-Marston Report, the EIR and Notice of Public Hearing and Agency letter to property owners be filed. Chairman Green stated that the adoption of this proposed project area would create many new jobs. He stated that he does not feel that through the normal process of private development that this project could proceed without the Redevelopment Agency rendering the services of public improvements to the Area. The necessary sewers can be installed in the area to entice industrial development. He further stated that all Board Members have personally received and reviewed the Redevelop- ment Plan, as supplemented, the Report, EIR and the Keyser-Marston Report. According to law, the Board has performed consistently and in the manner prescribed. Councilman Hammock arrives at the meeting and takes his place at the Council Table. Mayor Pro Tempore Lackner stated that testimony of experts would now be intro- duced and place upon the record. The City Clerk swore in the following who gave testimony on the Southeast Indus- trail Park: Kurt Franzen, Gruen Associates, who made a slide presentation on the general area conditions. Jerry Keyser, Keyser-Marston, who spoke on the potential tax incremental income, bonding capacities and the economic feasibility of the project. Harvey Champlin, Ultrasystems, spoke regarding the Environmental Impact Report. He responded to the comments received regarding this report. No addendum regarding 5130 this report is necessary in that only one comment was submitted that needed a comment. IlIIIIIII That one was received from the State Board of Equilization. He will be answering that letter and sending a copy of the letter to the Agency for record. -"" Mike McCann, Miller & Schroeder Municipals, spoke regarding bonding capabilities. Attorney James Warren Beebe stated that all necessary procedures for the adoption of the Plan have been taken and now it would be appropriate to ask questions of the experts or hear from the public. Chairman Green presented a letter from Leonard and Maxine King of El Cajon, CA, opposing the project. The letter was presented to the City Clerk and read into the minutes as follows: May 29, 1976 Re: 141-363-04 Redevelopment Agency of the City of San Bernardino, CA 300 North "D" Street San Bernardino, CA 92401 P.O. Drawer 392 ~ To Whome It May Concern: ......tI We own 6.45 acres in your proposed Southeast Industrial Park Redevelopment Project Area. We go on record to oppose this project. We do not feel vacant land needs the City, County, or US Government to get involved to be developed. Your job is to rede- velop areas such as "E" Street, north of Court to 7th Street. This is where you should be using your time. According to recent reports your Agency cannot fulfill the commitments you have already made. If the information is correct we believe you should finish the job you have started before taking on more. Also I doubt if any of your board members has now or ever had any land taken over by an Agency and not been paid what they were asking after paying taxes (which are high' for many years). Some may own property very close by. So the new development would raise property values for them. We are not interested and will fight it all the way. ~ Yours truly, .... Leonard D. & Maxine King [ [ [ 5131 Mayor Pro Tempore Lackner invited questions from the Common Council and the Redevelopment Agency Board Members for response from the experts. There were none. Mayor Pro Tempore Lackner invited questions from the public to be answered by the Redevelopment Agency and the Council. Mr. Vern Hornbrook, property owner, asked if there would be acquisition within the area and upon what basis did the Agency base their purchase price. Mr. Green stated that no acquisition is anticipated by the Agency. In cases of acqui- sition, two independent appraisals are required to determine the fair market value of the land. From there, it is a matter of negotiations. After the appraisals and negotiation the Agency would still need the authority of the City Council before it could purchase any of the property. Mr. Robert Bruce, Clerk of the Redlands Unified School District Board of Education, asked questions regarding the tax incremental income that would cease because of an adopted project area. A portion of the area, although within the San Bernardino City limits, is within the Redlands Unified School District. This area was pointed out on the map. Mr. Bruce stated that he did not see how this could be considered redevelopment within this area. He asked if this area was a new project or an exten- sion of an existing project and if tax incremental funds from this area would be used in other areas. Questions were raised regarding assessed value of the area. Chairman Green stated that this is a new project area. The Agency's intention is to develop the area. The posibility of using funds from this area for other areas of benefit has been considered. If agreeable to the Council and Agency, these funds could be used for new construction such as fire stations, police station, library etc. It was determined that a written reply would be given to Mr. Bruce on this questions. Mr. Beebe, Bonding Counsel, responded to Mr. Bruce's comments regarding the School District losing income because of a redevelopment project area. Mr. Beebe stated that under Senate Bill 90, AB 67, research has found that the School Districts do not lose any income because of a redevelopment project area. The State reimburses them accordingly. Mr. Russ Hartley stated that he has interest in 25 acres within the proposed project area. He stated that from his experience vacant land needs the help of government to start development and promote new jobs in the area. Mr. Ray Glider, County Economic Development Department, spoke in favor of the project. Councilman Wheeler made a motion, seconded by Councilman Hammock and unanimously carried, that the objection of the Redlands School District Board of Education, presented by Mr. Bruce, be registered, and the letter of objection from Mr. and Mrs. King be filed. 5132 There being no further questions or comments, Chairman Green called for the consider- .... ation of the adoption of Resolution No. 3218, as follows: ~ RESOLUTION NO. 3218 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING A REDEVELOPMENT PLAN; APPROV- ING A REDEVELOPMENT PLAN REPORT; APPROVING AN ENVIRON- MENTAL IMPACT REPORT CONTAINED THEREIN; AND DIRECTING THE FILING OF A NOTICE OF DETERMINATION WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") has prepared the Redevelopment Plan for the Southeast Industrial Park Redevelopment Project Area; and WHEREAS, the Agency has prepared a Redevelopment Plan Report and a Draft Environmental Impact Report ("Draft EIR") on said Redevelopment Plan; and WHEREAS, said Draft EIR was offered for review as authorized and directed by this Agency and the Mayor and Common Council of the City of San Bernardino; and WHEREAS, all comments received have been reviewed and answered when appropriate and incorporated in said DRAFT EIR; and ... WHEREAS, pursuant to notice duly given, this Agency and said Mayor and Common Council have held a full and fair public hearing on said Redevelopment Plan, as sup- lemented, and said Draft EIR, and are fully advised in the premises; and ....... WHEREAS, the San Bernardino Golf Course, a public golf course held in private ownership, is located within the project boundary area; and NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE REDE- VELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: Section 1. A full and fair public hearing having been held on said DRAFT EIR, as stated in the recitals herein, and this Agency, having considered all comments received thereon and being fully advised in the premises, hereby approves said Draft EIR which, together with said comments and the responses thereto, are part of said Redevelopment Plan Report. Section 2. The Agency hereby certifies that (i) the Environmental Impact Report ("EIR"), attached hereto as Exhibit "C" and by this reference incorporated herein, has been completed in compliance with the California Environmental Quality Act, Public Resources Code Sections 21000, et. seq., and (ii) this Agency has reviewed and considered the information contained in said EIR. ... ...., 5133 [ Section 3. A full and fair public hearing having been held on said Redevelopment Plan, as supplemented, as stated in the recitals herein, and this Agency, having considered all oral and written comments and testimony relating thereto and being fully advised in the premises, hereby approves said Redevelopment Plan, attached hereto as Exhibit "A" and by this reference incorporated herein. Section 4. Any future actions regarding the San Bernardino Golf Course will be submitted to the Mayor and Common Council for affirmation. Section 5. All of the publicly owned buildings, facilities, structures, and other improvements which are described in the Plan of Development-Interim Report San Bernardino Overall Central City Area are or will be of benefit to the Project Area, regardless of whether such improvement is within this Project Area or another Project Area. Section 6. The Agency hereby approves said Redevelopment Plan Report, attached hereto as Exhibit "B" and by this reference incorporated herein. Section 7. The redevelopment of the Southeast Industrial Park Redevelopment Project Area, pursuant to said Redevelopment Plan, will have no significant effect on the environment. r- Section 8. The Secretary of this Agency, in conjunction with the City Clerk, is hereby authorized and directed to file with the County Clerk of San Bernardino ...... County the Notice of Determination, pursuant to 14 California Administrative Code Section 15085(g) . Section 9. References contained in said Redevelopment Plan, Report and Draft EIR to property outside the boundaries of the City of San Bernardino were included in said documents for preliminary planning purposes only and no action is taken hereby with respect to such property. Section 10. The Secretary is hereby authorized and directed to transmit a copy of this Resolution, together with all of its attached Exhibits, to the Mayor and Common Council of the City of San Bernardino, for such action as they may wish to take. PASSED, APPROVED AND ADOPTED this ~ day of June , 1976 Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3218. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Stephenson, Hinojosa, Wilson, Blum and Green Noes: None Abstention: None Absent: None r f ........ Motion was made by Obershaw and seconded by Guhin instructing the Acting Secretary to forward a copy of Resolution No. 3218 to the City Clerk, Mayor and Common Council. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Stephenson, Hinojosa, Wilson, Blum and Green Noes: None Abstention: None Absent: None 5134 The City Clerk and Mayor Pro Tempore acknowledged receipt of Agency Resolution No. 3218 and introduced the following City Resolution: .... ...... RESOLUTION NO. 12426 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING A REDEVELOPMENT PLAN, APPROV- 1NG A REDEVELOPMENT PLAN REPORT, APPROVING AN ENVIRONMENTAL IMP ACT REPORT CONTAINED THEREIN, AND DIRECTING THE FILING OF A NOTICE OF DETERMINATION, SOUTHEAST INDUSTRIAL PARK REDE- VELOPMENT PROJECT AREA Councilman Wheeler made a motion, seconded by Councilman Hudson and unanimously carried that further reading of the resolution be waived and said resolution be adopted. Resolution No. 12426 was introduced and adopted by the following vote, to wit: Ayes: Councilmen Campos, Wheeler, Katona, Hammock, Hudson, Hobbs and Lackner Noes: None Abstention: None Absent: None Councilman Katona stated that he would like to see certain restrictions placed on the Agency in addition to those restrictions previously adopted, which are: 1. The Agency cannot buy property without consent of the Council. .... 2. The Agency cannot enter into contract with consultants without consent of the Council. ...." 3 . The Agency cannot hire consultants without the consent of the Council. It was noted that the Agency is allowed to enter into contracts and hire consultants for amounts up to $3,000. The following additional conditions were recited by Councilman Katona. 4. The Redevelopment Agency cannot sell or refund tax increment bonds without consent of the Council. Chairman Green stated that this would meet with his approval. 5. The Redevelopment Agency cannot pay for off site improvements without consent of the Council. Councilman Green stated that this condition would meet with his personal approval. 6. The Redevelopment Agency cannot transfer, loan, payback or borrow money from one project to another without Council Approval. Chairman Green stated that this condition would cause a hardship insofar as investments are concerned, in that money is transfered very often in order to assure prudent ..... ...... [ [ r l..- 5135 investment of funds. These funds are always paid back as soon as possible. Chairman Green suggested that this condition apply to everything other than investments. After review. Councilman Katona withdrew this condition. 7. The Redevelopment Agency cannot enter into short term notes without consent of the Council. Chairman Green stated that this condition would meet with his personal approval. 8. The Redevelopment Agency cannot pay relocation costs above $30,000 without consent of the Council. Chairman Green stated that this condition would meet with his personal approval. He further stated that all relocation costs are paid based upon a formula provided by State law. 9. The Redevelopment Agency cannot sell, swap or lease land or improvements without Council approval. Chairman Green stated that this condition would meet with his personal approval. 10. The Redevelopment Agency cannot provide any change orders over $3,000 without consent of the Council. Chairman Green stated that this condition meets with his personal approval. 11. The Redevelopment Agency cannot install any City utilities; trunk sewers, water and large or street systems without consent of the Council. Chairman Green stated that this condition meets with his personal approval. Mr. Obershaw asked if the Council would be responsible for the decisions made, in that they are requesting approval of the Agency.s actions. Mr. Flory stated that they would not. Mrs. Blum stated that we must all work together for the betterment of the City. No other comments were heard from the Agency Board Members After review it was determined that these items should be placed in resolution form for adoption by both the Agency and the City Council. The following City Ordinance was introduced: AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AND ADOPTING THE REDEVELOPMENT PLAN FOR SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA Councilman Katona made a motion, seconded by Councilman Hudson and unanimously carried, that the first reading of the ordinance be waived and said ordinance laid over for final passage. 5136 Mayor Pro Tempore Lackner stated that all proceedings had been duly recorded for record and ordered the hearing closed. IlIlllII IIIIIIIIi Councilman Wheeler made a motion, seconded by Councilman Hobbs and unanimously carried, that the hearing be closed. Chairman Green called for a motion to close the public hearing and adjourn the meeting to Monday, June 14, 1976. Motion was made by Guhin and seconded by Stephenson closing the Public Hearing, Southeast Industrial Park, and adjourning the meeting to Monday, June 14, 1976, Redevelopment Agency Board Room. The motion was carried by the following vote, to wit: Ayes: Guhin, Blum, Stephenons, Obershaw, Hinojosa, Wilson and Green Noes: None Abstention: None Absent: None ~ -- .... ..... 5137 [ MINUTES OF AN ADJOURNED REGULAR MEETING OF THE REDE- VELOPMENT AGENCY OF THE CITY OF SAN BENRARIDNO, CALI- FoRNIA, HELD THE 14TH DAY OF JUNE, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA The Chairman called the meeting to order at 4: 05 p . m . Roll Call showed the following: Agency Members Present: Blum, Green, Obershaw, Wilson and Guhin Agency Members Absent: Stephenson and Hinojosa Also Present: Mr. Shadwell, Acting Executive Director; Mr. Flory, Agency Counsel and Mrs. Baxter, Executive Secretary The audience introduced themselves. REPORT OF AGENCY COUNSEL: Mr. Flory stated that he has nothing to report at this time. AMENDMENT TO LEASE AGREEMENT, OPERATION SECOND CHANCE, PUBLIC ENTERPRISE CENTER - TABLED FROM PREVIOUS MEETING: r Agency Legal Counsel and the attorney for Operation Second Chance, Norm Hanover, t have approved the amendment to the lease agreement for the Public Enterprise ..... Center. The amendment is to the advantage of both parties. Mr. Flory recommended the approval of the amendment. The following resolution was introduced: RESOLUTION NO. 3219 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO EXECUTE AMENDMENT TO LAND LEASE AGREEMENT WITH OPERA TION SECOND CHANCE, INC. Whereas, it is the desire of all parties to amend certain Sections and terms and conditions of Land Lease dated July 9, 1976 by and between the Redevelopment Agency of the City of San Bernardino, Lessor and Operation Second Chance, Inc. Lessee. NOW THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bern- ardino, California that the Chairman and Acting Secretary be hereby authorized to execute Amendment to Land Lease between the Redevelopment Agency of the City of San Bernardino and Operation Second Chance, Inc. [ Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3219. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Wilson, Guhin and Green Noes: None Abstention: None Absent: Stephenson and Hinojosa 5138 AWARD OF CONTRACT FOR FURNISHINGS PUBLIC ENTERPRISE CENTER - TABLED FROM PREVIOUS MEETING: ..., Mr. Flory stated that he reviewed the contract documents, the bids, and all documentatio~ available in the files regarding the award of the contract for movable equipment (fur- nishings) for the Public Enterprise Center. It is his opinion that the low, responsible bid is that of Boulevard Office Equipment in the amount of $115,177, and the Agency has no other alternative than to award the contract to Boulevard or to reject both bids and readvertise. Dick Creters, Totalplan, stated that it was the responsibility of the bidder to examine the documents and determine a savings to the owner. They did so and submitted an alternate bid for the elimination of blackout lining in certain rooms. This would make his bid the low bid. Ms. Grice, Executive Director of Operation Second Chance, felt that the contract should be awarded to the local firm. Totalplan. She stated that she felt they could give Operation Second Chance better service during the period of warranty and after the one year warranty has expired. Mr. Flory stated that he is sure the Agency as well as the City would like contracts to be awarded to local firms if possible. He stated that there is no legal way to award the contract to the local firm if they are not the low bidder, and in his opinion they were not. The bid documents did not specify that a local firm was required. This must be determined before you go out to bid. .... ..... 4: 15 p.m. - Mr. Stephenson arrived at the meeting. Mr. Obershaw introduced the following resolution: RESOLUTION NO. 3220 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA , AWARDING CONTRACT FOR FURNISHINGS, PUBLIC ENTERPRISE CENTER, TO. TO~...T.. AN INC. . IN THE AMOUNT OF $116. 000 l;..~ WHEREAS, the Redevelopment Agen@~idS for the movable equipment for the Public Enterprise Center ~ '. rnardino Sun Telegram newspaper on April 17 , 18,21 and 22, 1976;~ y WHEREAS, although five sets of contract documents were picked up by potential bidders, only two bids were submitted to the Agency: that of Totalplan Inc., a San Bernardino firm, in the amount of $116,000; and that of Boulevard Office Equip- ment. an Encino firm, in the amount of $115,177; and ..... I I ~ ....J WHEREAS, Totalplan Inc. , through a provision within the contract documents, saw a savings to the owner by the elimination of blackout lining in certain rooms within the Public Enterprise Center, and thereby submitted an alternate bid for the elimina- tion of this lining if the owner would see fit; and [ r I v I.- r I ..... 5139 WHEREAS, Operation Second Chance expressed their desire to have the bid awarded to Totalplan Inc. rather than Boulevard Office Equipment in that they would be the eventual owner of the Public Enterprise Center, and felt that they could be best serviced by a San Bernardino firm; and WHEREAS, the contract documents provide that the contract must be awarded to the lowest and most responsible bidder; and WHEREAS, Agency Legal Counsel stated that in his opinion, after review of all of the bid documents and the bids of both Boulevard Office Equipment and Totalplan Inc. , that Boulevard was the lowest.r e sp~n '. e bidder and that the Board was legally obligated to either award the contract to rd or to reject both bids and re- advertise for new bids; and ~ ~ WHEREAS, Operation Second Cl::J.a'rl~~))Zsed their concern over re-advertising for bids because of the delay it ..~ to their anticipated date of opening of the Public Enterprise Center; a~ WHEREAS, the qualifications of both contractors were thoroughly reviewed, and although each bidder was found to be fully qualified, by majority vote it was felt that the bid of Totalplan, Inc. was most responsible in that they went to great length to investigate methods of savings to the eventual owner, Operation Second Chance, and that they could best serve Operation Second Chance because of their location in San Bernardino. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to enter into contract with Totalplan, Inc. , for movable equipment for the Public Enterprise Center, in the amount of $116,000. BE IT FURTHER RESOLVED that this action is subj ect to the review and concurrence of the Mayor and Common Council. Motion was made by Obershaw and seconded by Mr. Guhin authorizing the adoption of Resolution No. 3220. Mr. Guhin stated that in his opinion Totalplan is the lowest responsible bidder, because they investigated the bid documents thoroughly and found a savings. If the blackout lining is deleted, their bid will be lower. Mr. Wilson stated that he felt all bids should be rejected and the bid should be readvertised. The specifications should be clarified before readvertising. He further stated that based on the opinion of Mr. Flory, he could see that if the con- tract is awarded to Totalplan, the Agency could end up in court. Mr. Guhin stated that readvertising would cause a delay in completion date for the Public Enterprise Center. He again stated that he felt Totalplan was the lowest responsible bidder. 5140 Mr. Flory stated that if Boulevard does not file a law suite, the Agency's action to award the contract to Totalplan will be no problem. If they do file an injunction, it could delay the job even further than readvertising. Mr. Creters stated that in readvertising, the bids would probably come in quite a bit higher. There have been increases in furnishings already since the bid was submitted. As the bids are submitted now, they are guaranteed through today. ~ I 'it ...tlJ 4: 30 p.m. - Mr. Hinojosa arrived at the meeting. After review, the mo~~...~~~.... i ~..."'.'. f. lJ'.....:{a.....'lIOWS: Ayes: Obershaw, Guhin and Blum Noes: Wilson ~K~ G ~ll J ki~,1:ltJt!pibn: Stephenson and Hinojosa The motion was declare carr' ..-.' a~frE!"'Fesolution adopted. Mr. Sam Williams, Boulevard Office Equipment, was presented. He stated that he could offer Mrs. Grice just as competent service on the furnishings as a local firm. He felt that the Board was misled relative to specification interpretation. He stated that he was not asked by anyone to delete any items. He submitted his bid on the contract documents provided. If he is asked to delete any items, a deduction will be allowed accordingly. He further stated that he does intend to take legal action on this matter. Mr. Green advised the Members that this award of contract will go before the Council June 21st for review and concurrence. liliiii CHANGE ORDER SUNRAY CONSTRUCTION COMPANY, ANTI-GRAFFITI COATING PUBLIC ENTERPRISE CENTER: ....,.jJ Authorization was requested to enter into a change order to Sunray's construction contract for the inclusion of anti-graffiti coating to provide increased protection to the exterior brick surfaces. The following resolution was introduced: RESOLUTION NO. 3221 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO CHANGE ORDER NO. 7 WITH SUNRAY CONSTRUCTION CO. FOR AN AMOUNT NOT TO EXCEED $2,668.00, PUBLIC ENTERPRISE CENTER. WHEREAS, the Redevelopment Agency has received a request to increase construction costs in the sum of $2,668.00 to add anti-graffiti coating on all exterior brick surfaces; and WHEREAS. this change has been approved and initiated by Gruen Associates, Inc; and ~ WHEREAS, this change has been approved by Frances Grice, Executive Director, Oper- ation Second Chance, Inc.; and ...... r- L r- I I ..... r '- 5141 WHEREAS, said installation of the anti-graffiti coating provides increased protection to the exterior brick surfaces in that chalk, crayon and lipstick can be more easily remov- ed from the surface. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California that the Chairman and Acting Secretary be hereby authorized to enter into Change Order No. 7 with Sunray Construction Co. for an increase not to exceed the amount of $2,668 .00 for the Public Enterprise Center. . Motion was made by Obershaw and seconded by Blum authorizing the adoption of Resolution No. 3221. The motion was carried by the following vote, to wit: Ayes: Obershaw, Blum, Guhin, Wilson, Stephenson, Hinojosa and Green Noes: None Abstention: None Absent: None CHANGE ORDER SUNRAY CONSTRUCTION COMPANY, WALL BOARD SOUNDPROOFING PUBLIC ENTERPRISE CENTER: Authorization was requested to enter into a change order to Sunray's construction contract for the inclusion of wall board soundproofing for the typing room in the Public Enterprise Center. The following resolution was introduced: RESOLUTION NO. 3222 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO CHANGE ORDER NO.8 WITH SUNRAY CON- STRUCTION CO. FOR AN AMOUNT NOT TO EXCEED $664.96, PUBLIC EN- PRISE CENTER. WHEREAS, the Agency has received a request to increase the construction contract with Sunray Construction Company, in the sum of $664.96 to add sound retarding gypsum wallboard and resilient chips to cross walls of Room 29; and WHEREAS, this change has been recommended by Gruen Associates; and WHEREAS, this change has been approved by Frances Grice, Executive Director, Operation Second Chance, Inc.; and WHEREAS, said change will provide better sound deadening for this typing room. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California that the Chairman and Acting Secretary be hereby authorized to enter into Change Order No. 8 with Sunray Construction Co. for an amount not to exceed $664.96, Public Enterprise Center. 5142 Motion was made by Guhin and seconded by Obershaw authorizing the adoption ~ of Resolution No. 3222. The motion was carried by the following vote, to wit: ....... Ayes: None Guhin, Obershaw, Wilson, Blum, Guhin, Hinojosa and Green Abstention: None Absent: None Noes: Ms. Grice stated that she does not have a copy of the Amendment to the Lease Agreement authorized by the Board. Mr. Green stated that she would be furnished with a copy. Ms. Grice informed the Board that Operation Second Chance would be meeting with the people from Cable TV on Monday. After this meeting she would be able to advise the Agency whether or not a TV antana should be installed on the Public Enterprise Center building. ARCHITECT FEES - PROPOSED SAN BERNARDINO UNIFIED SCHOOL DISTRICT ADMINISTRATION BUILDING - TABLED FROM PREVIOUS MEETING: Mr. Flory stated that he has reviewed the documents on file regarding the architect fees to the firm of Cashion & Horie. It is his opinion that the Agency is legally obligated to pay for the schematic plans as billed. These plans were reviewed by Mr. Estevene, Agency Sr. Administrative Assistant. It is Mr. Estevene' s opinion that much work went into the plans and that they are the normal type of schematic plans provided by architects. The Contract between the Agency and Cashion & Horie provides for a payment in the amount of 20% of the construction cost for the schema tic plans, or $38,267 as billed. .... - Mr. Green recommended that upon advise of the Agency Counsel, he would recom- mend approval of this payment to Cashion & Horie, with the understanding that the School District execute an Agreement in which they agree to reimburse the Agency for the expenditure if at any time in the future the plans, or any portion of the plans, are utilized by the District. Mr. Wilson asked if the School District has approved the schematic plans. No written approval is on file. After further review, motion was made by Stephenson and seconded by Guhin denying the request for payment of architect fees by the firm of Cashion & Horie. The motion was denied by the following vote, to wit: Ayes: Stephenson & Guhin Noes: Blum, Wilson and Green Abstention: Obershaw and Hinojosa Absent: None Mr. Wilson stated that he would approve a motion to approve the payment, subject to the following conditions: 1) Written approval of the Schematic plans is received by the Agency from the School District; 2) The District enters into an agreement to reimburse the Agency for the expenditure, if at any time in the future, the plans or any portion of the plans, are utilized by the School District; and 3) A release is executed between the Agency and the Architects, releasing the Agency from any future services or payments under the terms of the present agreement. .... ... [ r L r- ....... 5143 5: 10 P om 0 - Mrs 0 Blum stated that she must leave the meeting but indicated that she would vote in favor of Mr 0 Wilson's suggestion 0 It was explained that the School District was not a party to the Agreement with the architect. The Predisposition Agreement was amended deleting all of Paragraph IV pertaining to the location of the center at 7th and "E" Streets 0 The Schematic plans were presented to the Agency Chairman and Executive Director at a School Board Meeting 0 After further review, the following resolution was introduced, incorporating Mr 0 Wilson's suggestions: RESOLUTION NO 0 3223 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXPEN- DITuRE OF $38,267, FOR ARCHTECT FEES, PROPOSED SAN BERNARDINO UNIFIED SCHOOL DISTRICT ADMINISTRATION BUILDING WHEREAS, the Redevelopment Agency, by the authority of Resolution No 0 2812, entered into a Predisposition Agreement with the San Bernardino Unified School District; and WHEREAS, paragraph IV of said Agreement sets forth that the Agency will provide for the development of plans for new Administration Center for the District by Cashion & Horie, Architects; and WHEREAS, Resolution No 0 2847 of the Redevelopment Agency authorized the execu- tion of a contract with Cashion & Horie, Architects, for said services; and WHEREAS, on April 17, 1975, the Redevelopment Agency and the District executed an amendment to the Predisposition Agreement deleting all of Paragraph IV pertaining to the location of the center at Seventh and "E" Streets; and WHEREAS, a bill has been submitted from Cashion-Horie for the schematic design phase of the contract in the amount of $38,267; and WHEREAS, Agency Legal Counsel has rendered the opinion that the Agency is legally responsible for the payment of these architect fees; and WHEREAS, the Redevelopment Agency desires to enter into an Agreement with the School District, whereby the School District agrees to reimburse the Agency for any of the salvage value of the schematic design plans used by the School District for the construction of their new School District Administration Building 0 5144 NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the expenditure of $38,267, to Cashion & Horie, Architects, for architectural fees for the proposed San Bernardino Unified School District Admin- istration Building is hereby approved, contingent upon the following taking place: .., ~ ~ ..... 1. Written approval must be received by the Redevelopment Agency from the San Bernardino Unified School District that they have approved the Schematic Designs prepared by Cashion & Horie Architects. 2. The San Bernardino Unified School District must execute an Agreement, with the Redevelopment Agency in which they agree to reimburse the Agency for said expenditure if at any time in the future the plans, or any portion thereof, and/or work product of said architect are utilized by the District; and 3. A Release must be executed between the Agency and the Architects, Cashion & Horie, releasing the Agency from any further services or payments under the terms of the present contract above mentioned. BE IT FURTHER RESOLVED that no additional architectural fees will be payable unless the Agency, the Architects and the District enter into a new Agreement for services for the construction of a new school administration building. Motion was made by Wilson and seconded by Obershaw authorizing the adoption of Resolution No. 3223 containing the contingencies outlined above. The motion was carried by the following vote, to wit: Ayes: Wilson, Obershaw, Hinojosa and Green Noes: Stephenson and Guhin Abstention: None Absent: Blum .... ......i CLAIM FOR PERSONAL INJURY: Mr. Flory stated that this claim is really a claim for false arrest by a security officer in the mall. It was recommended that the claim be denied and referred to our insurance carrier. Motion was made by Obershaw and seconded by Guhin denying the Claim for Personal Insury submitted by Miguel Romero, Jr. and referring said claim to the Agency I s insurance carrier. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Wilson, Hinojosa, Stephenson and Green Noes: None Abstention: None Absent: Blum RESOLUTIONS AUTHORIZING ESTABLISHMENT OF FOUR NEW BANK ACCOUNTS WITH THE BANK OF CALIFORNIA: The following resolutions were introduced: RESOLUTION NO . 3224 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING A BANK ACCOUNT WITH BANK OF CALIFORNIA, ENTITLED CENTRAL CITY WEST REDEVELOPMENT FUND ~ ..... r- L [ r L.. 5145 WHEREAS, the City of San Bernardino adopted Ordinance No. 3553, February 17, 1976, approving the adoption of the Central City West Redevelopment Project Area; and WHEREAS, due to the adoption of this new project area it is necessary to establish a bank account for funds involving Central City West. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino, California, does hereby approve the establishing of a bank account with Bank of California, entitled Central City West Redevelopment Fund. Motion was made by Guhin and seconded by Obershaw authorizing the adoption of Resolution No. 3224. The motion was carried by the following vote, to wit: Ayes: Guhin, Obershaw, Hinojosa, Wilson, Stephenson and Green Noes: None Abstention: None Absent: Blum RESOLUTION NO. 3225 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING A BANK ACCOUNT WITH BANK OF CALIFORNIA, ENTITLED CENTRAL CITY EAST REDEVELOPMENT FUND WHEREAS, the City of San Bernardino adopted Ordinance No. 3571, May 3, 1976, approving the adoption of the Central City East Redevelopment Project Area; and WHEREAS, due to the adoption of this new project area it is necessary to establish a bank account for funds involving Central City East. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino, California, does hereby approve the establishing of a bank account with Bank of California, entitled Central City East Redevelopment Fund. Motion was made by Guhin and seconded by Obershaw authorizing the adoption of Resolution No. 3225. The motion was carried by the following vote, to wit: Ayes: Guhin, Obershaw, Hinojosa, Wilson, Stephenson and Green Noes: None Abstention: None Absent: Blum RESOLUTION NO. 3226 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING A BANK ACCOUNT WITH BANK OF CALIFORNIA, ENTITLED CENTRAL CITY SOUTH REDEVELOPMENT FUND 5146 WHEREAS, the City of San Bernardino adopted Ordinance No. 3571, may 3, 1976, approving the adoption of the Central City South Redevelopment Project Area; and ,., ."""" WHEREAS, due to the adoption of this new project area it is necessary to establish a bank account for funds involving Central City South. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino, California, does hereby approve the establishing of a bank account with Bank of California, entitled Central City South Redevelopment Fund. Motion was made by Guhin and seconded by Obershaw authorizing the adoption of Resolution No. 3226. The motion was carried by the following vote, to wit: Ayes: Guhin, Obershaw, Hinojosa, Wilson, Stephenson and Green Noes: None Abstention: None Absent: Blum RESOLUTION NO. 3227 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING A BANK ACCOUNT WITH BANK OF CALIFORNIA, ENTITLED SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT FUND WHEREAS, the City of San Bernardino adopted Resolution No. 12426, June 7, 1976, approving the adoption of the Southeast Industrial Park Redevelopment Project Area; and .... i .~ .....J WHEREAS, due to the adoption of this new project area it is necessary to establish a bank account for funds involving Southeast Industrial Park. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino, California, does hereby approve the establishing of a bank account with Bank of California, entitled Southeast Industrial Park Redevelopment Fund. Motion was made by Guhin and seconded by Obershaw authorizing the adoption of Resolution No. 3227. The motion was carried by the following vote, to wit: Ayes: Guhin, Obershaw, Hinojosa, Wilson, Stephenson and Green Noes: None Abstention: none Absent: Blum Mr. Green was asked what funds are available for the Southeast Industrial Park account. Mr. Green stated that tax incremental funds will be available. The Agency realizes the need to bond. Short term notes will be applied for first, and then a bonding issue is anticipated. Mrs. Saul, Director of Finance, stated that a separate set of books must be retained for each project area. ..... ....,; ".... t '- r I '- ",... ...... 5147 OTHER BUSINESS: The Chairman was asked if any additional information has been received from Vanir Research regarding their proposal for a fourth major department store. Mr. Green read the following letter received today from Vanir: June 14, 1976 Redevelopment Agency City of San Bernardino City Hall 300 North "D" Street San Bernardino, California 92401 ATTENTION: R. E. Shadwell, Jr. Acting Executive Director Re: Proposal to Purchase Redevelopment Agency Property Dear Mr. Shadwell: I am in receipt of your letter dated June 9, 1976, whereby you have advised me that my proposal to purchase Redevelopment Agency property for the devel- opment of a fourth major department store has been referred to Agency Legal Counsel and staff. Upon completion of your Agency Legal Counsel's research of the Reciprocal Easement Agreement, with respect to the addition of the fourth major department store, please provide me with the results of its findings and any recommendations you may have. I am prepared to discuss this matter as soon as possible and at your earliest convenience. Very truly yours, V ANIR RESEARCH COMPANY H. Frank Dominguez Mr. Green stated that the Staff is reviewing the anticipated cost of site improve- ments necessary for this proposed development. The Legal Counsel is reviewing the conditions of the REA Agreement. ADJOURNEMNT: Motion was made by Guhin and seconded by Wilson to adjourn the meeting at 5148 5: 30 p.m. The motion was carried by the following vote, to wit: Ayes: Guhin, Wilson, Stephenson, Hinojosa, Obershaw and Green Noes: None Abstention: None Absent: Blum .... .....- N~ R. E. Shadwell, Jr. Acting Secretary ..... -..J ~ - 5149 r- MINUTES OF A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 17TH DAY OF JUNE, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA i i.- The Chairman called the meeting to order at 4: 15 p om. Roll Call showed the following: Agency Members Present: Blum, Stephenson, Guhin, Obershaw and Green Agency Members Absent: Hinojosa and Wilson Also Present: Mr 0 Shadwell, Acting Executive Director; Mr 0 Flory, Agency Counsel; and Mrs 0 Baxter, Executive Secretary The audience introduced themselves 0 Mr 0 Green stated that this Special Meeting was duly called for the specific purpose of reconsidering the award of the contract for movable equipment (furnishings) for the Public Enterprise Center 0 '-- The Redevelopment Agency at its meeting last Monday, June 14, 1976, adopted Resolution No 0 3220, awarding the contract for furnishings for the Public Enter- prise Center to Totalplan Inc 0 The resolution was adopted by a 3 - 2 vote 0 In reviewing the Agency's By-Laws, Article III, Section 4, Quorum, the following is cited: "The powers of the Agency shall be vested in the members thereof in office from time to time 0 Four members shall constitute a quorum 00000000 Action may be taken by the Agency upon a vote of a majority of the full membership of the Agency 0 " r Because of this over site of the by-laws, Resolution No 0 3220, voted on at the previous meeting, must be considered "void" 0 The matter must be reconsidered 0 Mr 0 Flory stated that the Agency has three alternatives: 1) The contract may be awarded to Totalplan: 2) The contract may be awarded to Boulevard Office Equipment: or 3) Both bids can be rejected and the contract readvertised 0 Mr 0 Green asked both bidders if they would waive their 30 day guarantee of bid price 0 Both bidders stated that they would waive the 30 day guarantee through toda y 0 Mr 0 Sam Williams, Boulevard Office Equipment, stated that they would value the opportunity to prove their service in San Bernardino 0 He stated that they are hoping to locate an office in San Bernardino in the future 0 They feel that they are the low responsible bidder and do not want to resort to legal action, but will pursue ",... this course if they are not awarded the bid 0 ........ 5150 Mr. Dick Creters, Totalplan, stated that it is their position that they are the low bidder, in that they investigated the documents, and submitted an alternative bid. If this alternative bid is used their bid would be lower than Boulevard, who did not submit an alternative bid. --- ...." Boulevard stated that they did not submit a substitution bid because none was requested by the owner. If they are awarded the contract, and the owner in fact does request a deletion of the blackout lining, the contract will be amended to reflect a reduction for the deletion. Mrs. Blum stated that she felt the bids should be readvertised. Mr. Stephenson stated that he has been reconsidering the issue, and he feels that both contractors had the opportunity to submit alternate bids, and moved that the contract be awarded to Totalplan, Inc. , and a resolution be so adopted. Mr. Obershaw seconded the motion. Mr. Guhin stated that he still felt that Totalplan was the lowest responsible bidder because they went to great lengths to save the owners money be investigating the bid documents. Mr. Obershaw stated that he personally feels that service from a San Bernardino firm is more satisfactory and more economical then from an out of town firm. Mr. Ostoich, attorney for Totalplan, stated that he did not feel that an injunction placed on the job by Boulevard would cause any delay to the project. If a law suit is filed by Boulevard, it would be a law suit for damages. The bid docu- ments provide that the Agency may reject any and all bids. Mrs. Blum asked Total- plan and Boulevard if they had been asked for an alternative bid. Mr. Cretors, Total- Plan s ta ted yes. ~ .... Mr. Williams, Boulevard, stated that his firm provides service to out of town clients just as effeciently and economically as local firms. Mr. Green stated that the Redevelopment Agency is the owner of the Public Enterprise Center at this time. Operation Second Chance will be the eventual owner. He stated that the Agency did not give the bidders instructions to delete the blackout lining. Mrs. Grice stated that Operation Second Chance considers themselves the owners, in that they will take over ownership very shortly. She stated that Jo Drummond, Gruen Associates, stated in the RDA office, with Totalplan present, that there had been an over site in the contract specifications, and that the elimination of the blackout lining should be made. Boulevard was not present. Mr. Green stated that if Ms. Drummond, did state this to Totalplan, he felt that both bids should most definitely be rejected and readvertised. Upon further review, the following resolution was introduced: ..... - r ~ L.- r L ".... p r ...... 5151 "' l tr 'I ( RESOLUTION NO. 3228 f ( I i RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AWARDING CONTRACT FOR FURNISHINGS, PUBLIC ENTERPRISE CENTER, TO TOT ALPLAN INC. , IN THE AMOUNT OF $116,000 WHEREAS, the Redevelopment Agency invited bids for the movable equipment for the Public Enterprise Center in the San Bernardino Sun Telegram newspaper on April 17, 18,21 and 22,1976; and WHEREAS, although five sets of contract documents were picked up by potential bidders, only two bids were submitted to the Agency: that of Totalplan Inc., a San Bernardino firm, in the amount of $116,000; and that of Boulevard Office Equip- men t, an Encino firm, in the amount of $115, 177; and WHEREAS, Totalplan Inc. , through a provision within the contract documents, saw a savings to the owner by the elimination of blackout lining in certain rooms within the Public Enterprise Center, and thereby submitted an alternate bid for the elimina- tion of this lining if the owner would see fit; and WHEREAS, Operation Second Chance expressed their desire to have the bid awarded to Totalplan Inc. rather than Boulevard Office Equipment in that they would be the eventual owner of the Public Enterprise Center, and felt that they could be best serviced by a San Bernardino firm; and WHEREAS, the contract documents provide that the contract must be awarded to the lowest and most responsible bidder; and WHEREAS, Agency Legal Counsel stated that in his opinion, after review of all of the bid documents and the bids of both Boulevard Office Equipment and Totalplan Inc. , that Boulevard was the lowest responsible bidder and that the Board was legally obligated to either award the contract to Boulevard or to reject both bids and re- advertise for new bids; and WHEREAS, Operation Second Chance expressed their concern over re-advertising for bids because of the delay it would cause to their anticipated date of opening of the Public Enterprise Center; and WHEREAS, the qualifications of both contractors were thoroughly reviewed, and although each bidder was found to be fully qualified, by majority vote it was felt that the bid of Totalplan, Inc. was most responsible in that they went to great length to investigate methods of savings to the eventual owner, Operation Second Chance, and that they could best serve Operation Second Chance because of their location in San Bernardino. 5152 NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to enter into contract with Totalplan, Inc. , for movable equipment for the Public Enterprise Center, in the amount of $116,000. ..... ....... BE IT FURTHER RESOLVED that this action is subject to the review and concurrence of the Mayor and Common Council. The motion was carried by the following vote, to wit: Ayes: Guhin, Stephenson, Obershaw and Blum Noes: Green Abstention: None Absent: Hinojosa and Wilson ADJOURNMENT: Motion was made by Obershaw and seconded by Guhin adjourning the meeting at 4: 45 p.m. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Stephenson, Blum and Green Noes: None Abstention: None Absent: Hinojosa and Wilson R. E. Shadwell, Jr Acting Secretary ..... ...... lIIIIIlIIl ....... r L [ r- L 5153 MINUTES OF A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 25TH DAY OF JUNE, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA The Chairman called the meeting to order at 3: 07 p.m. Roll Call showed the following: Agency Members Present: Obershaw, Wilson, Hinojosa, Guhin, Blum and Green Agency Members Absent: Stephenson Also Present: Mr. Shadwell, Acting Executive Director; Mr. Flory, Agency Counsel; and Mrs. Baxter, Executive Secretary The Chairman reported that this special meeting was duly called for the purpose of reconsidering the award of contract for furnishings, Public Enterprise Center. Mr. Green read a memorandum from the City Clerk, as follows: To: Ralph Shadwell, Acting Director Redevelopment Agency From: Lucille Goforth, City Clerk Date: June 24, 1976 Subject: Contract to Totalplan - Public Enterprise Center At the meeting of the Mayor and Common Council held on the 21st day of June, 1976, upon reviewing contract, said Mayor and Council do not concur with the awarding of the contract to Totalplan for the furnishing of the Public Enterprise Center. Lucille Goforth City Clerk Mr. Green explained that the City Council does not legally, under the City Charter, have the right to overrule an action of the Redevelopment Agency Board. However, as a result of an existing agreement between the City and the Agency, the Agency cannot expend funds in excess of $3,000 without Council approval. The Council did not approve the expenditure of funds for the award of the contract to Totalplan. The Agency can do one of two things - 1) It can reject all bids and readvertise for new bids; or 2) it can award the contract to Boulevard Office Equipment. Mr. Wilson moved that the bids be rejected and the contract readvertised. Mr. Obershaw seconded the motion. Mr. Flory suggested that the motion to perform 5154 this action be reworded. Mr. Wilson reworded his motion as follows and Mr. Obershaw concurred. Motion was made by Wilson and seconded by Obershaw to reconsider the award of contract for furnishings for the Public Enterprise Center, to Totalplan Inc. The motion was carried by the following vote, to wit: A yes: Wilson, Obershaw, Blum, Hinojosa and Green Noes: Guhin Abstention: None Absent: Stephenson -. ..... After further discussion, motion was made by Blum and seconded by Obershaw to rescind Reso 3228, awarding the contract for furnishings, Public Enterprise Center, to Totalplan, Inc. The motion was carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Wilson and Green Noes: Guhin Abstention: None Absent: Stephenson Motion was made by Wilson and seconded by Obershaw rejecting all bids for furnish- ings, Public Enterprise Center, instructing the staff to see that the contract documents are clarified, and further instructing the staff to readvertise for new bids. The motion was carried by the following vote, to wit: Ayes: Obershaw, Wilson, Hinojosa, Blum and Green Noes: Guhin Abstention: None Absent: Stephenson ADJOURNMENT: Motion was made by Obershaw and seconded by Blum adjourning the meeting. The motion was carried by the following vote, to wit: Ayes: Obershaw, Blum, Guhin, Wilson, Hinojosa and Wilson Noes: None Abstention: None Absent: Stephenson .., ..... R. E. Shadwell, Jr. Acting Secretary ---- .... ,.... '-- r- L ".... L. 5155 MINUTES OF THE REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 1ST DAY OF JULY, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA The Chairman called the meeting to order at 4: 10 p.m. Roll Call showed the following: Agency Members Present: Hinojosa, Blum, Guhin and Green Agency Members Absent: Wilson, Stephenson and Obershaw Also Present: Mr. Shadwell, Acting Secretary Treasurer; Mr. Flory, Agency Counsel; and Mrs. Baxter, Executive Secretary MINUTES: The Minutes of June 3, 1976 were presented for approval. Motion was made by Blum and seconded by Guhin approving the Minutes of June 3, 1976 as submitted. The motion was carried by the following vote, to wit: Ayes: Hinojosa, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw. The Minutes of June 7, 1976 were presented for approval. Motion was made by Guhin and seconded by Blum approving the minutes of June 7, 1976 as submitted. The motion was carried by the following vote, to wit: Ayes: Hinojosa, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw. The Minutes of June 14, 1976 were presented for approval. Motion was made by Guhin and seconded by Hinojosa approving the minutes of June 14, 1976 as submitted. The motion was carried by the following vote, to wit: Ayes: Hinojosa, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw The Minutes of June 17, 1976 were presented for approval. Mrs. Blum stated that on page 2, fourth paragraph, she would like the following added into the minutes. "Mrs. Blum asked Totalplan and Boulevard if they had been asked for an alternative bid. Mr. Cretors, Totalplan, stated yes. " Motion was made by Guhin and seconded by Blum approving the Minutes of June 17, 1976 as amended. The motion was carried by the following vote, to wit: Ayes: Hinojosa, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw The Minutes of June 25, 1976 were submitted for approval. Motion was made by Blum and seconded by Guhin approving the minutes as submitted. The motion was carried by the following vote, to wit: Ayes: Hinojosa, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw 5156 EXPENDITURES: ---- The Expenditures for the month of May, 1976 were submitted. Motion was made by Guhin and seconded by Blum approving the Expenditures as submitted. The motion was carried by the following vote, to wit: Ayes: Hinojosa, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw - PROGRESS REPORT, MT. VERNON ASSOCIATES, CENTRAL CITY WEST: Mr. Green read the following letter into the record: June 25, 1976 Mr. Ralph Shadwell Acting Executive Director Redevelopment Agency of the City of San Bernardino San Bernardino, Ca Dear Mr. Shadwell: The Mt. Vernon Associates is scheduled to make its monthly progress report to the Board of Directors of your Agency of July 1, 1976, at the regularly scheduled meeting. This report regards the Central City West, Fifth and Mt. Vernon Project. ..... -- There have been certain changes in time frame in project activities being performed by Mt. Vernon Associates. For this reason we believe we will be in a better position for the presentation of the progress report at a later time. We therefore request a postponement from July 1, 1976 to some later date. Thanking you for your consideration on this request, I remain Fred Herrera President Mt. Vernon Associates Mr. Green stated that he has spoken to Mr. Herrera and has been informed that they will be ready to present a progress report at the meeting of July 15, 1976. PROGRESS REPORT, CASHION-HORlE ARCHITECTS - SCHOOL ADMINISTRATION BUILDING: Mr. Shadwell stated that at a previous meeting the Board approved the payment of architect fees to the firm of Cashion-Horie for the school administration building, with certain contingencies. These contingencies have been met. The School Board has formally approved the schematic design of the administration complex ..... ....". ,-. L r i ..... ",..... ....... 5157 prepared by Cashion-Horie; the School Board agreed to reimburse the Agency for all or any portion of the Agency's payment to the architect for plans used; and the architect has signed a release indicating full payment for services rendered and cancellation of the agreement between the Agency and the architect. The School District also has released the Kendall Fire Station site parcel as a portion of the security for the Agency's purchase of the Jefferson School. In view of the requirements being met, the Agency issued a check to Cashion-Horie for the architect services. SOUTHEAST INDUSTRIAL PARK APPRAISAL SERVICES: Mr. Shadwell explained that some months ago the Agency invited proposals for appraisal services within the eastern portion of the Southeast Industrial Park. These appraisals were needed for an application to the Economic Development Administration for a grant for the sewer line. The City has now authorized the use of funds from the Public Safety Authority for the sewer line. The EDA grant if received, will be used for other purposes. The appraisal of these properties is to satisfy requirements for the potential purchase and subsequent sale of im- proved building sites by the Agency. Another potential reason is the requirement to know land costs for any future applications for grants. Three proposals were received. They are as follows: Don Morrison - $7,600; Edward Grigsby - $17,500; and Ray O'Bier - $16,500. Inasmuch as Don Morrison submitted the low proposal and since the Agency has a current open contract with Don Morrison with a balance sufficient to cover the proposal fees, it was recommended that the staff be authorized to provide Don Morrison authorization to appraise the parcels under this open contract. After review, motion was made by Blum and seconded by Guhin authorizing Don Morrision to perform the appraisal services necessary within the Southeast Industrial Park, for the fee of $7,600, under his present contract which has a balance sufficient to cover this fee. The motion was carried by the fol- lowing vote, to wit: Ayes: Hinojosa, Blum, Guhin and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw MILL STREET OVERPASS: Authorization was requested to participate in the funding, if necessary and requested by the City, in the construction of the Mill Street Overpass. This area was pointed out on the map. Mrs. Blum asked if the Agency would be reimbursed by the City for funds expended. Mr. Green stated that we would not be reimbursed. Mr. Green further stated that it is not anticipated that we will need to expend funds in this area, but that if it becomes necessary we can expend these funds for the good of the City. Mr. Flory explained that this area is outside of a redevelopment project area, but it has been determined by the City that this overpass would mutually benefit surrounding project areas. The law provides that a redevelopment agency may expend funds for areas out- side of redevelopment project areas, upon the adoption of resolutions by the judicial body and the local public agency that it is mutually beneficial to other project areas. The City adopted its Resolution No. 12448 on June 21,1976 to this affect. After discussion, the following resolution was introduced: 5158 RESOLUTION NO. 3229 ...... RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE ACQUISITION, INSTALLA- TION AND CONSTRUCTION AND/OR THE CONTRIBUTION OF FUNDS THEREFOR, FOR THE MILL STREET OVERPASS CONSTRUCTION AND DEVELOPMENT, A PROJECT LOCATED OUTSIDE OF REDEVELOPMENT PROJECT OR REDEVELOPMENT SURVEY AREAS, AND FINDING AND DECLARING THAT SAID IMPROVEMENT OF THE MILL STREET OVERPASS IS BENEFICIAL TO CERTAIN REDEVELOPMENT PROJECT AREAS ......, WHEREAS, Section 33445 of the Health and Safety Code provides that a redevelopment agency, at the request of and with the consent of a city's legislative body may pay all or part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement which is publicly owned outside of a project area upon a determination by the legislative body and the rede- velopment agency that such publicly owned facilities or other improvements are of benefit to specific proj ect areas; and WHEREAS, the Mill Street Overpass project is located between Mt. Vernon Avenue and Pennsylvania Avenue in the City of San Bernardino and said project is outside of established Redevelopment Project and survey areas; and WHEREAS, it has been found and determined by the Mayor and Common Council of the City of San Bernardino that said Mill Street Overpass project will be of specific and direct benefit to the Redevelopment Agency's project areas as follows, to wit: Central City, Meadowbrook, Central City North, Central City South, Central City West and Southeast Industrial Park; and .... ..... WHEREAS, among said benefits to said designated project areas are the establishment of a higher quality of control over traffic distribution to the aforesaid project areas and the enhancement of said project areas by the providing of increased traffic in a most desirable manner; and WHEREAS, the Mayor and Common Council have found, by their adoption of Reso. No. 12448 on June 21, 1976, that the expenditure by the Redevelopment Agency for said Mill Street Overpass project will be of direct and specific benefit to the aforesaid proj ect areas. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, as follows: SECTION 1. The Mill Street Overpass project situated between Mt. Vernon Avenue and Pennsylvania Avenue in the City of San Bernardino will be of specific benefit to the following project areas: Central City, Meadowbrook, Central City North, Central City South, Central City West and Southeast Industrial Park. ..-- - 5159 r L SECTION 2. The expenditure of funds by the Redevelopment Agency in accordance with the provisions of Section 33445 of the California Health and Safety Code upon said Mill Street Overpass project is hereby ratified, confirmed and approved. Motion was made by Blum and seconded by Guhin authorizing the adoption of Reso- lution No. 3229. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Hinojosa and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw POLICY DETERMINATIONS, EXPENDITURES AND INDEBTEDNESS OF AGENCY: Mr. Green stated that during the public hearing on the Southeast Industrial Park Redevelopment Project, Councilman Katona brought forth certain restrictions that he desired to be placed on the Agency. The Council, at their meeting of June 21, 1976 adopted Resolution No. 12449 setting forth these restrictions. It has been requested that the Agency adopt a like resolution. Mr. Green stated that he could not see any problem in these restrictions, other than certain delays it might cause. Mrs. Blum expressed her feeling that we must work closely with the council and she felt that a resolution to this effect would be in order. Mr. Guhin expressed his concern in the adoption of this resolution, due to the time elements involved and the restrictions placed on the Agency. After careful review, the following reso- lution was introduced: r I , L RESOLUTION NO. 3230 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA ES- TABLISHING AND CONCURRING IN POLICY DETERMIN- A TIONS APPLICABLE TO AND BETWEEN THE MAYOR AND COMMON COUNCIL OF SAID CITY AND THE REDEV- ELopMENT AGENCY OF THE CITY OF SAN BERNARDINO RELATING TO PROSPECTIVE EXPENDITURES AND IN- DEBTEDNESS OF SAID AGENCY WITHIN AND WITHOUT REDEVELOPMENT PROJECT AREAS. WHEREAS, on March 1, 1976, the Mayor and Common Council of the City of San Bern- ardino adopted Resolution Nos. 12353 and 12354 designating survey areas for the proposed Southeast Industrial Redevelopment Project which contained a recital that purchases of real property, contracts for services or studies, or other commit- ments would not be consummated without the prior approval of the Mayor and Common Council; and WHEREAS, the Redevelopment Agency of the City of San Bernardino concurred in the policy determinations of said resolutions and on June 7, 1976, through its members, ,..... agreed to extend such policy determinations to all redevelopment project areas and i the other financial transactions hereinafter more particularly set forth; and , '- 5160 WHEREAS, the Mayor and Common Council and said members desire to work together cooperatively and harmoniously in the public interest in the initation and consummation of redevelopment projects and related matters; and ... ......, WHEREAS, the City of San Bernardino adopted Resolution No. 12449 on June 21, 1976, establishing and concurring in policy determinations applicable to and between the Mayor and Common Council of said city and the Redevelopment Agency of the City of San Bernardino relating to prospective expenditures and indebtedness of said Ag- ency within and without redevelopment project areas. NOW, THEREFORE, BE IT RESOLVED BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: SECTION 1. The Mayor and Common Council of the City of San Bernardino, herein- after called II Council II and the members of the Redevelopment Agency of the City of San Bernardino, hereinafter called IIMembersll, have agreed to establish and comply with certain policy determinations in the exercise of their legislative, administrative and quasi-judicial powers in the initiation and the implementation of redevelopment projects in conformance with the California Community Development Law and in the consummation of related areas of mutual public interest, as more particularly set forth herein. SECTION 2. The Council has requested, and the Members have agreed to a and con- curred in, procedural limitations and requirements upon the exercise of the pow- ers and duties of the Members. Consequently, the Council and the Members agree that the Members shall not take any official action, expressed or implied, within and without redevelopment project areas on matters involving sums of money, property, or things of value in excess of $3,000, except as otherwise provided herein, without the prior approval of Council taken at a public meeting. The word IImattersll shall include, but not be limited to: .., - (a) The purchase, sale, exchange or lease of land, improve- ments and real property; (b) Agreements with, awards of contracts to, or retention of consultants to perform services, undertake studies or sur- veys or perform other contractural undertakings; (c) The sale or refunding of tax increment bonds or notes: (d) The payment or approval for payment of off-site improve- ments; (e) Execution or approval of short term notes or obligations; (f) The payment or approval for payment of relocation costs in excess of $30,000; (g) The approval of change orders relating to public projects; (h) the payment or approval for payment of costs of install- ation or repair of municipal utilities, sewer and water mains, streets and other public projects. ~ -- r- L r L r- ........ 5161 SECTION 3: The prior approval by the Council shall be deemed in each instance on each matter to be done in principle only, without recourse or assumption of liab- ility or as a guarantor. Motion was made by Blum and seconded by Guhin authorizing the adoption of Reso- lution No. 3230. The motion was carried by the following vote, to wit: Ayes: Blum, Hinojosa, Guhin and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw AMENDMENT TO LAND LEASE, PUBLIC ENTERPRISE CENTER: It was explained that the previously approved amendment to the Land Lease for the Public Enterprise Center did not include certain provisions requested by Operation Second Chance. The amendment has been revised to include these requested changes. It has been approved by Norman Hanover, attorney for Operation Second Chance, and the Agency1s Attorney, Bill Flory. Mr. Green read the amendment. Upon review, the following resolution was introduced: RESOLUTION NO. 3231 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHOR- 1zING THE CHAIRMAN AND ACTING SECRETARY TO ENTER INTO AMENDMENT TO LAND LEASE BETWEEN THE REDEVELOPMENT AGENCY AND OPERATION SEC- OND CHANCE, INC. WHEREAS, the Redevelopment Agency of the City of San Bernardino, called IILessorll and Operation Second Chance, Inc., a California Corporation, called IILesseell entered into a Land Lease dated July 9, 1975; and WHEREAS, it is the desire of both the IILessorll and the IILesseell to make certain changes and/or alterations in said Land Lease. NOW, THEREFORE, BE IT RESOLVED that the Chairman and the Acting Secretary be hereby authorized to enter into Amendment to Land Lease between the Redevelopment Agency of the City of San Bernardino, Cal- ifornia and Operation Second Chance, Inc. Motion was made by Guhin and seconded by Blum authorizing the adoption of Reso- lution No. 3231. The motion was carried by the following vote, to wit: Ayes: Guhin, Blum, Hinojosa and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw 5162 REPORT OF AGENCY COUNSEL: ..... Mr. Flory stated that Judge Morris has filed the judgement on the case against the County Auditor/Assessor regarding the base reduction. The appeal will proceed in accordance with the directions of the Board. .....J 4: 45 p.m. - The Chairman recessed the meeting for an Executive Session to discuss personnel. 5: 05 p.m. - The Chairman reconviened the meeting. Mr. Green stated that the Agency appointed Ralph Shadwell, Deputy Director of the Agency, to the position of Acting Executive Director, following the resignation of Pete Quinn. Mr. Shadwell has not been compensated for the additional duties and responsibility of the position of Acting Executive Director. The following resolution was introduced: RESOLUTION NO. 3232 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, RAISING THE SALARY OF RALPH E. SHADWELL, ACTING EXECUTIVE DIRECTOR ..... WHEREAS, the Redevelopment Agency, at a Regular Meeting held April 1, 1976, accepted the verbal resignation of P. W. Quinn, Jr., Executive Director, and appointed Ralph E. Shadwell, Deputy Director of the Agency, as Acting Executive Director, effective May 1, 1976; and ...... WHEREAS, due to an over site , Mr. Shadwell's salary was not adj usted to reflect the additional duties and responsibilities encompassed by this appointment. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the salary of Ralph Shadwell is hereby raised to $28,000 per year, retroactive from May 1, 1976, if determined legally permissable by the Agency Counsel, but in any event, effective July 1, 1976. Motion was made by Blum and seconded by Guhin authorizing the adoption of Resolution No. 3232, raising the salary of Ralph Shadwell to $28,000, retro- active from May 1, 1976, if determined legally permissable by the Agency Counsel, but in any event effective July 1, 1976. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Hinojosa and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw ADJOURNMENT: ~ Motion was made by Guhin and seconded by Blum to adjourn the meeting at 5: 10 p.m. ....", [ ,....... "- "..... t...- 5163 The motion was carried by the following vote, to wit: Ayes: Guhin, Blum, Hinojosa and Green Noes: None Abstention: None Absent: Wilson, Stephenson and Obershaw R. E. Shadwell, Jr. Acting Secretary 5164 Due to the lack of a quorum, the second Regular Meeting for the month of July, 1976, was changed from Thursday, July 15, 1976 at 4: 00 p.m., to Wednesday, July 21, 1976, at 3: 00 p.m. -. R. E. Shadwell, Jr. Acting Secretary ..... ~ -' ...... ....... 5165 r- MINUTES OF THE REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 21st DAY OF JULY, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA. ...... The Chairman called the meeting to order at 3: 10 p . m. and requested all in attendance to adjourn to the Council Chambers in order to accommodate the large crowd by 3: 15 p.m. Roll Call showed the following: Agency Members Present: Blum, Guhin, Green, Wilson, Obershaw, Stephenson, Agency Members Absent: Hinojosa Also Present: Mr. Shadwell, Acting Secretary Treasurer, Mr. Flory, Agency Counsel and Mrs. Brown, Acting Executive Secretary. MINUTES: The Minutes of July 1, 1976 were presented for approval. Motion was made by Wilson and seconded by Guhin approving the Minutes of July 1, 1976. Motion carried by the following vote, to wit: Ayes: Blum, Guhin, Green, Wilson, Obershaw and Stephenson. Noes: None. Abstention: None. Absent: Hinojosa. EXPENDITURES: i I ~ The Expenditures for the Month of June, 1976 were submitted. Motion was made by Wilson and seconded by Guhin approving the Expenditures, as submitted. The motion was carried by the following vote, to wit: Ayes: Blum, Guhin, Green, Wilson, Obershaw and Stephenson. Noes: None. Abstention: None. Absent: Hinojosa. r Because of the overflow capacity crowd present representing Operation Second Chance, Inc., Mr. Green, Chairman requested that Item No. 5 of the Agenda be moved to No.1. All Board Members concurred in his request. Mrs. Frances Grice, Executive Directo"r of Operation Second Chance, Inc. went to the podium and expressed her appreciation to the Redevelopment Agency for their cooperation and her desire to continue to work closely, in harmony, with the Agency. She stressed that she wanted the community to see and hear her views on the matter and that she hopes that this proj ect, Public Enterprise Center, will become a model for the nation to follow. Mr. Green then joined Mrs. Grice and she presented him with a check in the amount of $223,454.00. ".... Mr. Green thanked Mrs. Grice for the check and stated that while there had been some problems on the project thus far, that the Agency has no intention of being anything other than cooperative with Operation Second Chance. Mr Green further stated that this project took the work and cooperation of the city, EDA, and the Community, as a whole, to make it viable. ...... Motion made by Wilson and seconded by Obershaw to accept the check in the amount of $223,454.00. Motion carried by the following vote, to wit: Ayes: Blum, Guhin, 5166 Green, Wilson, Obershaw and Stephenson. Noes: None. Abstention: None. Absent: Hinojosa, MT", VERNON ASSOCIATES PROGRESS REPORT, MT, VERNON COMMUNITY CENTER, CENTRAL CITY WEST, ..... .... Mr, Fred Herrera, representing Mt . Vernon Associates, indicated a site plan on display to the Board Members, Discussion followed regarding possible potential tenants for the Center, Mr, Obershaw asked Mr, Herrera if the tenants actually stated their desire to move into the center and Mr. Herrera informed Mr. Ober- shaw that they had. Mr. Herrera then stated that he had no written progress report, but would have one by the first of the week, July 26th. Discussion re- vealed that their contract had terminated July 16, 1976 and Mr. Herrera stated that Mt. Vernon Associates would need another extension. Mr, Herrera feels that if given enough time, Mt, Vernon Associates will be able to negotiate with SBA, however, he further stated that perhaps someone else should try and put the package together. Mt. Vernon Associates has tried, but the project, thus far, is failing because of financial problems, The tenants are unable to handle the loan interest necessary for this type of project, Discussion revealed that time is of the essence to the Redevelopment Agency. Mr, Obershaw inquired of Mr. Herrera if the project was self sustaining and was informed that it was not. Mr, Obershaw stated that he felt the Board should allow Mt, Vernon Associates another 30 day extension to see if they can work out their financial problems. At this point, Mr, Wilson referred to a letter presented to the Board regarding the proposal of Frank Dominguez. Mr, Green stated that he was unaware of any proposal submitted to the Agency, The letter in question had been prepared by the Mexican ,..... Chamber of Commerce, Mr. Porras, President, Mexican Chamber of Commerce spoke in favor of looking into the proposal submitted by Frank Dominguez. They feel that .....,j the project has lagged much too long and are desirous of moving the project as soon as possible. They recommend that any proposal should be considered. Mrs. Blum stated that she would like to give Mt. Vernon Associates a 30 day extension, but feels that the Agency should entertain any proposals received for the Mt, Vernon development, Mr, Stephenson stated that he feels the Agency should certainly see what Mr, Dominguez's proposal entails, All the Board Members feel that the Agency should be able to contact anyone regarding proposals, Councilman Tony Campos spoke from the audience and requested that the 30 day extension be granted, After further discussion the Board concurred in the 30 day request. Motion made by Obershaw and seconded by Wilson. Motion carried by the following vote, to wi t: Ayes: Blum, Guhin, Green, Wilson, Obershaw and Stephenson, Noes: None. Abstention: None. Absent: Hinojosa, At this time, Mr. Gil Lara of Vanir Research introduced himself and explained that Mayor Holcomb had requested Vanir Research prepare a proposal within 30 days time, but Vanir will also work withthe Mexican Chamber of Commerce and Mt, . Vernon Associates. Mr. Green thanked Mr. Lara for his offer of assistance. CHANGE ORDER NO, 9, SUNRAY CONSTRUCTION CO. EXTENSION OF TIME. ~ Mr. Shadwell explained to the Board that Sunray has requested an extension due to loss of time caused by the change in electrical fixtures. This change ....., 5167 [ has been recommended by Gruen Associates and Operation Second Chance. Motion made by Obershaw and second by Blum. Motion carried by the following vote, to wit: Ayes: Blum, Guhin, Green, Wilson, Obershaw and Stephenson. Noes: None. Abstention: None. Absent: Hinojosa RESOLUTION NO. 3233 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND SECRETARY TO ENTER INTO CHANGE ORDER NO.9 WITH SUNRAY CONSTRUCTION CO. ALLOWING A TIME EXTENSION OF 20 DAYS. WHEREAS, -the Agency has received a request for a 20 day time extension to Sunray Construction Co. due to the loss of time caused by the change in electrical fixtures; and WHEREAS, said extension has been approved by the Architect and Operation Second Chance. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino, California authorize the Chairman and Secretary to enter to Change Order No.9 for a time extension of 20 days. REQUEST TO WRITE OFF UNCOLLECTABLE RENTS--ARROYO BAR. .1 r L Mr. Shadwell explained to the Board Members that the Agency has $150.00 in accounts receivable that we are unable to collect. The Agency has tried many times, unsucces- sfully to locate the individual who owes the amount. The Agency no longer feels it prudent to try to locate the person and wishes to write off the amount as a loss. Mr. Obershaw agreed, but stipulated that the Agency should place the account with carried by the following vote, to wit: Ayes: Blum, Guhin, Green, Wilson, Obershaw, and Stephenson. Noes: None. Abstention: None. Absent; Hinojosa. PROPOSAL FOR DEVELOPMENT OF A FOURTH MAJOR DEPARTMENT STORE -VANIR r [! Mr. Jim Hicks, representing Vanir Research Co. referred to previous discussion with staff regarding the department store and problem of parking spaces. He stated that Vanir has amended their offer to encompass the same amount of land, only the land will be on the south side of Second Street. The store will be a 100,000 square foot pad, and Vanir presented the Offer to Purchase and their check in the amount of $6,000. representing 2% of the purchase price. Mr. Wilson inquired as to the name of the store and was informed that the information is not yet public. Mr. Obershaw stated that the information does not have to be made public, but that personally wants to know very soon. Mr. Obershaw inquired if the Agency did not require more inform- ation and Mr. Green informed him that the check was a good faith deposit and all that was necessary at this time. Mr. Green instructed the Board that it was his desire I ...... 5168 that the Board accept the proposal, review same and let the staff check out details. He also stated that the Board was merely accepting the proposal and check. If the Agency doesn't approve of the proposal, we are not obligated and will return the check to Vanir. Mrs. Blum stated that she too would like to know the name of the ~ store as soon as possible. Mr. Green then advised the Board that the City and the Agency, along with others, have been trying to keep some information from not -..III being made public, until a deal already has been made "Firm", otherwise, developers will simply stay away from San Bernardino. Motion was made by Obershaw and seconded by Wilson. Motion carried by the following vote, to wit: Ayes: Blum, Guhin, Green, Wilson, Obershaw and Stephenson. Noes: None. Abstention: None. Absent: Hinojosa. OTHER BUSINESS: Mr. Obershaw stated that he was upset at the bad press the Agency has been receiving and was irritated at some comments made by some of the councilmen. Mr. Green stated that he is very optimistic at this time about the working relationship with the Council and they seem to be cooperative and sincere in working with the Agency. 4: 15 p.m. Mr. Green announced that he was requesting the Board to go into Executive Session for a Personnel matter. Meeting reconvened at 4: 25 p.m. Mr. Green announced that the Board had appointed a new Executive Director, Mr. Ralph E. Shadwell, Jr. who has been acting in the capacity of Acting Executive Director. Mr. Shadwell's salary will be $29,556, Range M 84, Step "C", effective immediately. This salary is commensurate with that of the ., Executive Director of Community Development. Motion was made by Obershaw and . seconded by Blum. Motion carried by the following vote, to wit: Ayes: Blum, Guhi~ Green, Wilson, Obershaw, and Stephenson. Noes: None. Abstention: None. Absent: Hinojosa. Meeting adjourned until Tuesday , July 27, 1976 at 4: 00 p. m. for the express purpose of awarding the Furniture Contract for the Public Enterprise Center. Motion made to adjourn by Obershaw and seconded by Blum. Motion carried by the following vote, to wit: Ayes: Blum, Guhin, Green, Wilson, Obershaw and Stephenson. Noes: None. Absent Hinojosa. , R. E. Shadwell, Jr. Executive Director ~ .... [ r L r f L- 5169 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE REDEVEL- OPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 27th DAY OF JULY, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA. The Vice Chairman called the meeting to order at 4: 10 p. m. . Roll Call showed the following: Agency Members Present: Blum, Guhin, Obershaw and Hinojosa. Agency Members Absent: Green, Stephenson and Wilson. Also Present: Mr. Shadwell, Acting Secretary-Treasurer, Mr. Flory, Agency Counsel and Mrs. Brown, Acting Executive Secretary. MINUTES: The Minutes of July 21, 1976 were presented for approval. Motion was made by Guhin and seconded by Obershaw approving the Minutes of July 21, 1976. Motion carried by the following vote, to wit: Ayes: Blum, Guhin, Obershaw and Hinojosa. Noes: None. Abstention: None. Absent: Green, Stephenson and Wilson. AWARD OF MOVABLE FURNITURE CONTRACT-OPERATION SECOND CHANCE, INC. PUBLIC ENTERPRISE CENTER. Mrs. Blum, Vice Chairman requested Mr. Shadwell to explain the details of the bid. Mr. Shadwell stated that eight (8) firms and/or individuals had requested and been made available, specifications and plans for the furnishings for Oper- ation Second Chance, Inc. One (1) bid was received from Totalplan of the Inland Empire in the amount of $116,649.00. Motion was made by Obershaw and seconded by Guhin to accept the bid from Totalplan of the Inland Empire in the amount of $116,649. Motion carried by the following vote, to wit: Ayes: Blum, Guhin, Obershaw and Hinojosa. Nones: None. Abstention: None. Absent: Green, Stephenson and Wilson. Mr. Shadwell explained to the Board Members that this item will go before the City Council for their ratification and concurrence at the Council meeting held August 2, 1976. RESOLUTION NO. 3234 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE AWARDING OF CONTRACT TO TOT ALPLAN INC., IN THE AMOUNT OF $116,649. 00 FOR FURNISHINGS FOR THE PUBLIC ENTERPRISE CENTER. WHEREAS, the Redevelopment Agency invited bids for the movable equipment for the Public Enteprise Center; and WHEREAS, eight sets of specifications were made available for potential bidders; and 5170 WHEREAS, only one bid was received by the Agency from Totalplan Inc. , in the amount of $116,649.00. ..... NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to ~ enter into Contract with Totalplan, Inc. for movable equipment for the Public Enter- prise Center in the amount of $116,649.00. BE IT FURTHER RESOLVED that this action is subject to the review and concurrence of the Mayor and Common Council. INCREASE IN CONTRACT PRICE-SUNRAY CONSTRUCTION CO. - PUBLIC ENTER- pRIsE CENTER. Mr. Shadwell explained to the Board that it has become necessary to increase the contract to Sunray Construction Co. in the amount of $3,436.90 and that the work has been approved by Mr. Griffin of the Agency Staff, Gruen Associates, Inc. , and Operation Second Chance. Inc. Mr. Obershaw stated he felt some of the expenditures were because of poor planning, however, motion made by Obershaw and seconded by Guhin. Motion carried by the following vote, to wit: Ayes, Blum, Guhin, Obershaw and Hinojosa. Nones: None. Abstention: None. Absent: Green, Stephenson and Wilson. RESOLUTION NO. 3235 ..... RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ADDITIONAL EXPENSE OF $3,436.90 TO SUNRAY CONSTRUCTION CO., PUBLIC ENTERPRISE CENTER, CHANGE ORDER NO. 10. ... WHEREAS,the Agency has received a request from the architect and Operation Second Chance, Inc. for an increase in construction costs; and WHEREAS, the costs have been generated due to some "in-field" changes and the Agency Staff recommends approval. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino that the Chairman and Secretary be hereby authorized to enter into Change Order No. 10 in an amount not to exceed $3,436.90 APPOINTMENT OF SECRET AR Y -TREASURER Mrs. Blum explained that it was necessary to appoint a new Secretary-Treasurer and that the Agency By Laws state that the Secretary Treasurer may be the Exec- utive Director. Motion made by Obershaw and seconded by Guhin to appoint Ralph E. Shadwell, Jr., Executive Director of the Redevelopment Agency, as the Secretary Treasurer. Motion carried by the following vote, to wit: A yes: Blum, Guhin, Obershaw and Hinojosa. Nones: None. Abstention: None. Absent: Green, Stephenson and Wilson. ~ --' [ [ [ 5171 RESOLUTION NO. 3236 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE APPOINTMENT OF RALPH E. SHADWELL AS SECRETARY TREASURER OF THE REDEVELOPMENT AGENCY WHEREAS, Resolution No. 3189, adopted 4-8-76, appointed Ralph E. Shadwell, Jr., as Acting Secretary Treasurer of the Redevelopment Agency; and WHEREAS, Section 4 of Article II of the By-Laws of the Agency, as amended by Resolution No. 308, states that the Secretary Treasurer of the Agency may be the Executive Director; and WHEREAS, on July 21, 1976, a motion was carried unanimously by the Agency Board of Directors appointing Ralph E. Shadwell, Jr., as Executive Director of the Agency; and WHEREAS, it is recommended that Ralph E. Shadwell, Jr., be appointed Secretary Treasurer of the Agency and that Resolution No. 3189 appointing Mr. Shadwell as Acting Secretary Treasurer be res cinded . NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that Resolution No. 3189, appointing Ralph Shadwell as Acting Secretary Treasurer is hereby rescinded. BE IT FURTHER RESOLVED that Mr. Ralph E. Shadwell, Jr., is hereby appointed as Secretary Treasurer of the Redevelopment Agency, and in such capacity may sign on behalf of the Agency all official documents of the Agency. OTHER BUSINESS: Mr. Obershaw stated that he would like for the local news media to pass some favorable praise to the past and current board members for their foresight and clear thinking in the past, before he himself, became a member. He feels they are long overdue for this praise. The Board thanked Mr. Obershaw for his compliments. Mrs. Blum inquired if Mr. E. George Webster, seated in the audience, had any- thing that he wished to say and Mr. Webster stated that he did. He said that be- cause of a current legislative law, enacted upon July 6, 1976, he would like for the Agency to consider Santa Fe Federal Savings and Loan as a Depository for our investment purposes. He feels that the savings and loan firm can assure the Agency of the highest interest rate. Mr. Obershaw inquired what the rate was and was in- formed that the local banks are paying 5% and that a savings and loan firm was pay- ing 5*%, compounded daily. Also, the Agency would not be required to give Notice to a savings and loan firm. It was stated that the interest rate on Certificates of Deposit would be negotiable. Mr. Obershaw inquired if a motion 5172 was necessary in order to consider Mr. Webster's request and was informed no by the Vice Chairman and Executive Director. .., The Vice Chairman called for an Executive Session at 4: 17 p. m. ....., Regular Session reconvened at 4: 26 p.m. Mr. Obershaw stated that he wished to make a motion that the Staff of the Agency be authorized to acquire vacant property in the Southeast Industrial Park Re- development Project Area at the appraised value; that the Staff be authorized to improve 10 acres of vacant property and resell it, as authorized, within the five year tax increment policy; and that the Staff be further authorized to file condem- nation proceedings, if necessary, to acquire properties not available at the ap- praised value. Motion made by Obershaw and seconded by Hinojosa. Motion carried by the following vote, to wit: Ayes: Blum, Guhin, Obershaw and Hinojosa. Noes: None. Abstention: None. Absent: Green, Stephenson and Wilson. Mr. Joe Baker, representing the Sun Telegram, inquired as to the legality of calling an Executive Session and was informed by the Vice Chairman and the Agen- cy Counsel that it was legal inasmuch as possible litigation was involved. Dis- cussion following regarding the use of the property in question and Mr. Baker was assured by the Vice Chairman and Mr. Obershaw that the Agency will be more than happy to divulge their plans as soon as possible, but that right now nothing was definite. .... Mr. Obershaw stated that he had been in Amfac Thrift the day of the meeting and wondered why the Agency did not enter into some sort of agreement with the per- sones) occupying the building. Mr. Shadwell stated that the upper portion of the building was in a bad state of disrepair and that the Agency does not know what the exact plans are for the building. Mr. Obershaw stated that perhaps some type of agreement could be entered into with a provision for future happenings to the building shown therein. Mr. Shadwell assured Mr. Obershaw that the Staff will look into the matter. ...... ADJOURNMENT: Motion made by Obershaw and seconded by Guhin adjourning the meeting at 4: 30 p.m. Motion carried by the following vote, to wit: Ayes: Blum,Ober- shaw, Guhin and Hinojosa. Noes: None. Abstention: None. Absent: Green, Stephenson and Wilson. / R. E. Shadwell, Jr. Executi ve Director ~ ...,j r- i ~ r- , ! l.. r- ..... 5173 MINUTES OF THE REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 12TH DAY OF AUGUST, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA Vice Chairman Blum called the meeting to order at 4: 10 p. m . Roll Call showed the following: Agency Members Present: Blum, Wilson, Obershaw, Stephenson and Hinojosa Agency Members Absent: Green and Guhin Also Present: Mr. Shadwell, Executive Director; Mr. Flory, Agency Counsel; and Mrs. Baxter, Executive Secretary MINUTES: The Minutes for the Adjourned Regular Meeting held July 27, 1976 were submitted for approval. Motion was made by Obershaw and seconded by Wilson approving the minutes as submitted. The motion was carried by the following vote, to wit: Ayes: Obershaw, Wilson, Stephenson, Hinojosa and Blum Noes: None Abstention: None Absent: Green and Guhin USE OF UCB BANK BUILDING - EMBLEM CLUB: Mr. Shadwell explained that the Emblem Club, a part of the Elks Club, has requested the use of the downstairs of the UCB Bank Building for a Flea Market Rummage Sale from August 17th through September 25, 1976. Mrs. Alice Palmieri, representing the Emblem Club, was introduced. Mrs. Palmieri stated that they have sufficient public liability insurance and they will assume responsibility for cleaning the build- ing after the sale. Mr. Wilson requested that the Agency be named as co-insured on the policy during the period of the sale. All members agreed. Motion was made by Wilson and seconded by Obershaw authorizing the use of the downstairs of the UCB Bank Building by the Emblem Club for the purpose of a flea market rummage sale, with the condition that the Agency is co-insured for the event by the Emblem Club. The motion was carried by the following vote, to wit: Ayes: Obershaw, Wilson, Stephenson, Hinojosa and Blum Noes: None Abstention: None Absent: Green and Guhin 4: 15 p. m. - Mr. Guhin arrived at the meeting. CONTRACT FOR BOND COUNSEL SERVICES - JAMES WARREN BEEBE: Authorization was requested to enter into a new contract with James Warren Beebe, a Law Corporation, for Bond Counsel Services. It was explained that the Agency currently has a contract with this firm. The new contract is merely an update of the contract. There are minor changes in the fee schedule. The amount to be paid depends on the amount of bonds to be sold. After review, the following resolution was introduced: 5174 RESOLUTION NO. 3237 ~ RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO CONTRACT WITH JAMES WARREN BEEBE AS BOND COUNSEL AND SPECIAL COUNSEL ...... WHEREAS, the Redevelopment Agency desires to engage the services of a Law Corporation as Bond Counsel and Special Council for the preparation of various documents necessary to accomplish the Agency's objectives in carrying out the implementation of the Plan of Development; and WHEREAS, James Warren Beebe, a Law Corporation, has proposed to provide this service and the Agency is desirous of engaging their service. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, that the Chairman and Secretary are hereby authorized to execute Contract with James Warren Beebe as Bond Counsel and Special Counsel for Agency acti vities . Motion was made by Wilson and seconded by Guhin authorizing the adoption of Resolution No. 3237. The motion was carried by the following vote, to wit: Ayes: Wilson, Guhin, Obershaw, Stephenson, Hinojosa and Blum Noes: None Abstention: None Absent: Green ~ AUTHORITY TO AMEND BY-LAWS OF THE REDEVELOPMENT AGENCY TO PROVIDE FOR AN ASSISTANT SECRETARY: -..I Mr. Wilson asked that this item be deferred until he had time to review it further. Mr. Shadwell explained that the proposed amendment would merely provide for the office of Assistant Secretary in case of the absence of the Secretary. Mr. Wilson inquired as to salary change. Mr. Shadwell advised that he did not recommend any salary adjustment for this position. Mr. Flory stated that with the absence of Mr. Quinn, former Secretary, Mr. Shadwell was appointed as Acting Secretary. There has never been any provision for an Assistant Secretary in the By Laws. He felt it prudent to amend the By-Laws to provide for this office. Mr. Wilson again asked that the matter be deferred. There were no objec- tions, therefore the matter was deferred. V ANIR RESEARCH COMPANY - OFFER TO PURCHASE CENTRAL CITY SOUTH: Mr. Shadwell explained that the Agency has received an Offer to Purchase approxi- mately 100,000 sq. ft. of land from Vanir Research Company for land within Central Ci ty South. They are offering $3.00 per sq. ft. They have also submitted a deposit check in the amount of $15,000, or 5% of the purchase price. ~ .....", [ [ [ 5175 The areas to be purchased were pointed out on the map. They propose to develop a department store, a savings and loan and a restaurant. The Agency at this time only owns about 1/2 of the property involved. If we are authorized to proceed, we must get preliminary title reports and appraisals on the parcels to be purchased and enter into negotiations with the owners involved, in order that this land can be sold to Vanir. The Agency has paid approximately $3.00 per sq. ft. for the land already purchased. Mr. Wilson asked if the name of the department store could be disclosed. Mr. Hicks, representing Vanir Research, explained that the company they are nego- tiating with has requested that the name not be disclosed until the transaction between Vanir and the tenant is formally executed. Mr. Wilson asked if it was proper for the Agency to accept this offer without knowing the name of the depart- ment store. Mr. Flory stated that at this time the action would be to acknowledge receipt of the Offer to Purchase and deposit check and to schedule a public hearing. He also felt that the Chairman and Secretary should be authorized to enter into a Predisposition Agreement with Vanir, which agreement will set forth all the terms of the sale. It will also be necessary for the Agency to ask the authorization of the City Council to acquire land, through condemnation if necessary, within the boundaries of this proposed development. Mr. Flory explained that the Offer to Purchase cannot actually be accepted until after the Public Hearing. Vanir proposes a $4,000,000 development within this block. All members expressed that a development of this magnitude would greatly help the Agency's tax base. It was explained that the Agency would provide the off site improvements up to 5 years tax incremental income for this development. Mrs. Blum asked what would happen if Vanir was not able to secure their proposed tenant for the depart- ment store. Mr. Hicks stated that Vanir would then be obligated to find another tenant of equal standard for the department store. The only condition whereby Vanir would be able to regain their deposit, would be if they were not able to obtain proper financing. After careful review, the following resolution was introduced: RESOLUTION NO. 3238 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACKNOWLEDGING RECEIPT OF AN OFFER TO PURCHASE FROM V ANIR RESEARCH FOR PRO- PERTY WITHIN CENTRAL CITY SOUTH, SCHEDULING A PUBLIC HEARING ON SAID SALE, AND SETTING FORTH CERTAIN CON- DITIoNs WHEREAS, the Central City South Redevelopment Project Area was adopted by the City of San Bernardino by Ordinance No. 3572, May 3, 1976; and WHEREAS, the Agency has received an offer to purchase approximately 100,000 sq. ft. of property within the block bounded by 2nd Street on the North, "F" 5176 Street on the east, Rialto Avenue on the south, and "G" Street on the west, from V anir Research Company; and -- WHEREAS, the Agency must acquire portions of this block in order to dispose of the land to Vanir Research Company, and therefore would require the authoriza- tion of the Mayor and Common Council to condemn property, if necessary, within the boundaries of this proposed development; and -- WHEREAS, because of the many conditions to be placed on this development by both the Agency and the Developer, it is essential to enter into a Predisposition Agreement acceptable to both parties. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino, California, does hereby acknowledge receipt of the Offer to Purchase approximately 100,000 sq. ft. within Central City South from Vanir Research Company. and receipt of their deposit check in the sum of $15,000, which is 5% of the purchase price. BE IT FURTHER RESOLVED that the staff is hereby authorized to publish the Notice of Public Hearing for said sale, to be held September 2, 1976, at 4: 00 p. m. in the Redevelopment Agency board room. BE IT RESOLVED FURTHER that the Chairman and Secretary are hereby authorized to enter into a Predisposition Agreement with Vanir Research Company on terms acceptable by both parties. Said agreement to contain an acceptable development schedule for the proposed development. ~ -- BE IT RESOLVED FURTHER that pending the execution of the Predisposition Agree- ment, the staff is authorized to request from the Mayor and Common Council the authority to condemn property, if necessary, within the boundaries of the proposed development. Motion was made by Wilson and seconded by Obershaw authorizing the adoption of Resolution No. 3238. The motion was carried by the following vote, to wit: Ayes: Wilson, Obershaw, Guhin, Stephenson, Hinojosa and Blum Noes: None Abstention: None Absent: Green MILLER & SCHROEDER MUNICIPALS, INC. CONTRACT AMENDMENT FOR FINANCIAL CONSULTANT SERVICES: Authorization was requested to enter into Contract Amendment with Miller & Schroeder for the inclusion of the newly adopted project areas of Central City West, Central City East, Central City South and the Southeast Industrial Park Redevelopment Project area. Mr. Wilson asked if the Agency has ever had any problems with this firm. Mr. Shadwell stated that he knows of no problems with them and that he has always found that they have gone out of their way to work with the Agency. After review the following resolution was introduced: ...., ....J ,... L r ~ r-- ~. t '-- 5177 RESOLUTION NO. 3239 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO EXECUTE CONTRACT AMENDMENT NO. 2 WITH MILLER & SCHROEDER MUNICIPALS, INC. WHEREAS, the Redevelopment Agency of the City of San Bernardino, California, entered into a Contract with Miller & Schroeder Municipals, Inc., dated November 1, 1973, for Financial Consulting Services; and WHEREAS, said Contract provides for rather limited services insofar as project areas are concerned; and WHEREAS, the Agency is currently embarking on various activities in various areas wherein it has jurisdiction and it is believed that the Miller & Schoreder con- tract should be expanded to provide for similar services. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to execute Contract Amendment No. 2 with Miller & Schroeder Municipals, Inc. , broadening the area of service in their contract. Motion was made by Obershaw and seconded by Guhin authorizing the adoption of Resolution No. 3239. The motion was carried by the following vote, to wit: Ayes: Obershaw, Guhin, Hinojosa, Stephenson, Wilson and Blum Noes: None Abstention: None Absent: Green KEYSER MARSTON ASSOCIATES CONTRACT FOR TECHNICAL MEMORANDUM OF DISPOSITION VALUES HOTEL DEVELOPMENT: Authorization was requested to enter into a contract with Keyser Marston Asso- ciates for the preparation of a technical memorandum of disposition values for the hotel development. This study will determine the feasibility of the hotel and the Agency's participation in the development. Mr. Obershaw stated that he felt that all studies of this nature were to be provided by the hotel consultant, Bob Schwartz. Mr. Shadwell explained that this study is not included within Mr. Schwartz' contract. Mr. Flory stated that it an absolute necessity. After further review, the following resolution was introduced: RESOLUTION NO. 3240 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO CONTRACT WITH KEYSER MARSTON ASSOCIATES FOR TECHNICAL MEMORANDUM OF DISPOSITION VALUES FOR THE HOTEL DEVELOPMENT 5178 WHEREAS, the Redevelopment Agency desires to engage the services of an authority in the field of economics and financial feasibility, in order to provide a study to de- termine the Agency's participation in the proposed hotel development; and .... ....., WHEREAS, Keyser Marston Associates, recognized as experts in this field, have proposed to provide this service for a sum not to exceed $2,500. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to execute a contract with Keyser Marston Associates for a Technical Memorandum of Disposition Values for the Hotel Development, for a sum not to exceed $2,500. Motion was made by Wilson and seconded by Stephenson authorizing the adoption of Resolution No. 3240. The motion was carried by the following vote, to wit: Ayes: Wilson, Stephenson, Guhin, Hinojosa and Blum Noes: None Abstention: Obershaw Absent: Green CHANGE ORDER SUNRAY CONSTRUCTION COMPANY PUBLIC ENTERPRISE CENTER: Mr. Jones, Operations Officer, requested authorization to enter into a change order with Sunray Construction Company, contractor for the Public Enterprise Center, to include extra services in resolving the instability of the steel ..... preimeter fence for the Public Enterprise Center. The architect has indicated that it was impossible to foresee that these problems would exist at the time the fence ....., was designed. They have proposed a three phase program for resolving this situation. Phase I will include the installation of horizontal rails and posts which are essential to maintain the fence in a stable condition, and will cost $11,250. If this does not correct the situation, Phase II will allow each vertical bar to be welded to the horizontal rail, costing $4,197. If this does not correct the situation, Phase III will grout each existing fence post, for a cost of $1,840. The total change will amount to $17,287. Mr. Jones stated that only that work needed will be done. If stability is reached after Phase I, the remainder of the change will not need to be enacted. All members agreed that the fence must be fixed. If we have approval to enter into the change order, we can go before the Council on Monday for ratification. The Agency can withhold from the architects fees the amount of this change. Mr. Branigan of Gruen Associates could not be present for this meeting to discuss this with the Board. After careful review and consideration, the following resolution was introduced: ~ ....." r \- r ~ ,.... \,' ...... 5179 RESOLUTION NO. 3241 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIRMAN AND SECRET AR Y TO ENTER INTO CHANGE ORDER NO. 11 WITH SUNRAY CONSTRUCTION COMPANY FOR ADDITIONAL SERVICES, PUBLIC ENTERPRISE CENTER WHEREAS, it has been found that the stability of the preimeter steel fence for the Public Enterprise Center is questionable, and appears to present a safety and security problem; and WHEREAS, in order to correct this safety and security factor, the architect has suggested certain increases in service of the contractor; and WHEREAS, it is found necessary at this time to have this problem resolved by the increase in services. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to execute Change Order No. 11 with Sunray Construction Company for additional services required to insure stability of the preimeter steel fence. The cost of the additional services is as follows: Said work would be performed in phases as outlined below and only when necessary to stable the fence and to meet safety and securi ty conditions, as required. Phase I: To install horizontal rail and posts which are essential to maintain the fence in a stable condition - $11,250. Phase II: Welding of the vertical bars to the horizontal rails, if necessary - $4,197. Phase III: Grouting of the existing fenceposts, if required - $1,840. The total Change Order shall not exceed the sum of $17,287.00. Motion was made by Wilson and seconded by Obershaw authorizing the adoption of Resolution No. 3241, authorizing a change order to Sunray Construction Company's contract, and instructing the staff to withhold this amount of funds from the architects fees pending negotiations with the architect regarding this matter. The motion was carried by the following vote, to wit: Ayes: Obershaw, Wilson, Hinojosa, Stephenson, Guhin and Blum Noes: None Abstention: None Absent: Green OTHER BUSINESS: Mr. William R. Leonard was presented to the Members. Mr. Leonard read the following request concerning the San Bernardino Golf Course: 5180 William R. Leonard representing the owners of San Bernardino Golf Course, ...... requests that the Agency express their concern over the pending closure of the course due to the Lytle-Warm Creek Flood Control Project. ...." The Flood Project, if completed, as planned, will result in the closure of the golf course. It is important that alternative plans be designed that both provide flood control and allow the course to operate. The economic development of the Southeast Industrial Park Project is of special importance to the Agency. The existing golf course provides a viable in- vestment in the area. Further economic development in the project area would be severly hampered by the closure of the golf course. While flood control is important, the economic and environmental benefits pro- vided by the golf course are equally as important. The Agency's expression of concern to the County Board of Supervisors, County Flood Control District, and the U. S. Army Corps of Engineers would be of help. To solve the problems, all parties must meet to design a project that satisfies all needs. ...... Mr. Leonard stated that they do not know what all the needs of the Corps of Engineers are, but that they feel they can offer an alternative to the proposed plan. The Federal Court will render a judgement tomorrow on the matter. -.till Mr. Leonard stated that as soon as a decision is reached by the Courts, Councilman Katona has indicated that he will approach the Council for their vote of concern over the project. Mr. Wilson stated that he did not feel it proper for the Agency to endorse this matter one way Or another. Mr. Guhin stated that we are a public body and that the golf course is of concern to the Southeast Industrial Park Project, and therefore felt that the Agency had a right to express its concern. After review and consideration, motion was made by Obershaw and seconded by Blum expressing the Agency's concern regarding the Lytle-Warm Creek Flood Control Project, because of possible adverse effects to the San Bernardino Golf Course. The motion was carried by the following vote, to wit: A yes: Obershaw, Hinojosa, Guhin and Blum Noes: Wilson and Stephenson Abstention: None Absent: Green ...... ....... r- I I L r- \ i "- ".... ...... 5181 ADJOURNMENT: Motion was made by Wilson and seconded by Obershaw adjourning the meeting at 5: 00 p.m. The motion was carried by the following vote, to wit: Ayes: Wilson, Obershaw, Hinojosa, Guhin, Stephenson and Blum Noes: None Abstention: None Absent: Green ~, R. E. Shadwell, Jr. Secretary 11. 5182 ..... -- .... ....", II!IIIIIt ....... r L 5183 DUE TO LACK OF QUORUM, THE BOARD MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO HELD AT 4: 00 P.M., AUGUST 20,1976 WAS ADJO NED TO 4: 00 P.M., AUGUST 26, 1976. R. E. Shadwell, Jr. Executive Director r I i i '-- ",.... ....... , ,...,. ...." ~ ....., ~ ...." ,..., L r \..... [ 5184 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, HELD THE 26th DAY OF AUGUST, 1976, 399 NORTH "D" STREET, SAN BERNARDINO, CA. Chairman Green called the meeting to order at 4: 08 p. m . Roll Call showed the following: Agency Members Present: Wilson, Obershaw, Stephenson, Hinojosa and Green. Agency Members Absent: Blum and Guhin. Also Present: Mr. Shadwell, Executive Director, Mr Flory, Agency Counsel and Mrs. Brown, Executive Secretary. MINUTES: The Minutes for the Regular Meeting held August 12, 1976 were submitted for approval. Motion was made by Obershaw and seconded by Wilson approving the minutes, as sub- mitted. The motion was carried by the following vote, to wi t: Ayes: Obershaw, Green, Wilson, Stephenson, and Hinojosa. Noes: None. Abstention: None. Absent: Guhin and Blum. Expenditures for the month of July, 1976 were submitted for approval. Motion was made by Obershaw and seconded by Wilson to approve the expenditures, as submitted, for the month of July, 1976. The motion was carried by the following vote, to wit: Obershaw, Wilson, Stephenson, Hinojosa and Green. Noes: None. Abstention: None. Absent: Blum and Guhin. AWARDING OF CONTRACT FOR DEMOLITION OF AGENCY WALL ADJACENT TO THE WILSON PROPERTY LOCATED AT 424 West Court St. Mr. Shadwell explained that the Agency had demolished a building west of 426 Court St, however the east wall the building was left standing due to extensive damage that could have occurred, had wall been removed. Mr Wilson, owner of 424-426 Court St. states that this unsightly condition has hampered the lease of his property. Mr. Shadwell recommended that the Agency award Demolition Contract to Pres co Building Materials to demolish the wall for $1,980.00. Mr. Guhin arrives at meeting at 4: 12 p. m. Mr. Stephenson inquired as to why the wall should be demolished now, why not before? The discussion of safety ensued. The only costs incurred by the Agency will be the legal obligation that the Agency owes. After review the following resolution was introduced: RESOLUTION NO. 3242 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE AWARDING OF CONTRACT FOR DEMOLITION OF WALL LOCATED AT 424 WEST COURT STREET TO PRESCO BUILDING MATERIALS IN THE AMOUNT OF $1,980.00. 5185 WHEREAS, the Agency demolished a building west of 426 Court St; and WHEREAS, the East wall of said building was left standing due to extensive damage that ~ could have occurred had wall been removed; and - WHEREAS, the owner of the property states that the wall is an unsightly condition and has hampered the lease of his property; and WHEREAS, the Agency secured two demolition bids; and WHEREAS, it is the interest of the Agency to accept the bid of Presco Building Materials in the amount of $1,980.00. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino that the Chairman and Secretary be authorized to enter into contract with Presco Building Materials for an amount not to exceed $1,980.00 for demolition of wall located at 424 West Court St. Motion was made by Obershaw and seconded by Wilson authorizing the adoption of Resolution No. 3242. The motion was carried by the following vote, to wit: Ayes: Obershaw, Wilson, Stephenson, Hinojosa, Guhin and Green. Noes: None. Abstention: None. Absent: Blum. FINDER I S FEE- V ANIR DEVELOPMENT CO. -CENTRAL CITY SOUTH --- At the time Vanir Research Co. submitted their Offer to Purchase at the Board Meet- . ing held on August 12, 1976 for land in Central City South, they also submitted a reques~ for a Finder's Fee submitted by Vanir Development Co., in the name of James Hicks, Licensed Real Estate Broker. Mr. Shadwell feels that this matter should be referred to Agency Counsel for legal opinion and recommendation. Mr. Hicks representing Vanir Development Co. stated that while Vanir Research Co. was, in fact, owned by Frank Dominguez, Vanir Development Co. is an independent corporation comprised of Mr. Dominguez and members of the staff. Companies like Vanir Development Co. depend on Finder's Fees for their income. Mr. Wilson inquired what the fee would be and Agency staff responded that at this time, we do not know. It must correspond, in kind, with the regulations stipulated in Agency Resolution No. 3167. A building permit must be secured first and a fee would be paid in accord- ance with the Resolution. After review, motion was made by Wilson and seconded by Obershaw that the matter be referred to Agency Legal Counsel for his consideration and presentation to the Board by a written legal opinion. Motion carried by the follow- ing vote to wit: Ayes: Obershaw, Wilson, Stephenson, Hinojosa, Guhin and Green. APPOINTMENT OF COMMITTEE TO COORDINATE WITH V ANIR RESEARCH CO. REL- ATIVE TO DEVELOPMENT OF DEPARTMENT STORE-CENTRAL CITY SOUTH. ..., Mr. Green explained that about Ii weeks ago there was a meeting with Frank Domingue~ with reference to his proposal for Central City South, involving the Board's position of demanding the names of the proposed tenants for his development. Mr. Green feels [ r \.,..., r- L 5186 a reasonable compromise can be reached by the appointment of a committee of three to represent the Agency Board and work closely with Mr. Dominguez in the ultimate development of his proposed project. Mr. Green also stated that this was strictly his personal request and that he would like to appoint the members to the committee. The committee will report back on all matters to the full membership of the Board. After review, the following resolution was adopted: RESOLUTION NO. 3243 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPOINTING A COMMITTEE TO COORDINATE WITH V ANIR RESEARCH CO . RELATIVE TO DEVELOPMENT OF A DEPARTMENT STORE FOR CENTRAL CITY SOUTH. WHEREAS, Vanir Research Co. has submitted an Offer to Purchase Land of approximately 1,000,000 sq. ft. bounded by Second St. to Rialto Ave. and "F" to "G" Streets; and WHEREAS, questions have been presented by Agency Board Members regarding the name of the department store and the cost of developing this one-block project; and WHEREAS, a Committee could coordinate these and any other questions or problems with the proposed developer; and WHEREAS, said Committee would then report back to the full membership of the Redevel- opment Agency Board regarding the feasibility of this project; and WHEREAS, it is desired that a committee of three (3) Agency Board Members be appointed. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino that a Committee consisting of 3 Agency Board Members be appointed to coordinate with Vanir Research Co. relative to the development of a department store for Central City South. Motion was made by Obershaw and seconded by Wilson authorizing adoption of Resol- ution No. 3243. Motion carried by the following vote, to wit: Ayes: Obershaw, Green, Wilson, Stephenson, Hinojosa and Guhin. Noes: None. Abstention: None. Absent: Blum. Mr. Green then appointed Members, Blum, Guhin and Obershaw to the Committee. AMEND BY-LAWS OF THE AGENCY PROVIDING FOR AN ASSISTANT SECRETARY. Ralph Shadwell explained that the current By-Laws provide for the offices of Chair- man, Vice-Chairman and Secretary and it is felt prudent that the By-Laws be amended to provide for an Assistant Secretary. The Assistant Secretary would be appointed by the Board to function only in the absence of the Executive Director- Secretary. Mr. Obershaw questioned whether this would mean a new job and new salary and was informed no. The question was raised as to whether the individual, when named, could make Agency decisions. Mr. Shadwell responded that the individual could act in his behalf in cases of emergency, in fact, that is one of the reasons it is im- portant to have this position. Thus, the continuity of Agency operations could con- 5187 tinue to flow in an orderly manner in the absence of the Secretary and other officers. After review the following resolution was adopted: RESOLUTION NO. 3244 .., RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING THE BY LAWS OF THE REDEVELOPMENT AGENCY, BY PROVIDING FOR AN ASSISTANT SECRETARY ..... BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that Article II, Section 1, shall read as follows: "Section 1. Officers. The officers of the Agency shall be a Chairman, a Vice Chairman, a Secretary, who may be the Executive Director, and an Assistant Secretary." BE IT FURTHER RESOLVED that Article II, Section 4, is hereby amended by adding thereto Section 4 (a) reading as follows: "Section 4(a). Assistant Secretary. The Assistant Secretary shall per- form the duties of the Secretary in the absence or incapacity of the Secretary. In the case of the resignation or death of the Secretary, the Assistant Sec- retary shall perform such duties as are imposed upon the Secretary until such time as the Agency Board shall select a new Secretary. " ..... Motion made by Obershaw and second by Guhin adopting Resolution No. 3244 amending......., By-Laws to provide for an Assistant Secretary. Motion carried by the following vote, to wit: Ayes: Obershaw, Wilson, Stephenson, Hinojosa, Guhin and Green. Noes: None. Abstention: None. Absent: Blum. AUTHORIZING EXCLUSIVE RIGHT TO NEGOTIATE-DEVELOPMENT OF CENTRAL CITY WEST REDEVELOPMENT PROJECT. Mr. Green publicly acknowledges the presence of Councilman Campos in the audience and asked the Councilman if he had any specific questions. Councilman Campos in- dicated that he was there for the express purpose of hearing the above referred to Agenda Item. No further discussion. Mr. Green explained that certain civic minded individuals in the community had formed a company called the San Bernardino Local Development Company, Inc. hereinafter referred to as LDC (Local Development Company). Mr. Green then read aloud the following letter. ~ ....I r L. r t I.- ,... ....... 5188 August 23, 1976 Mr. Wallace Green, Board Chairman Redevelopment Agency of the City of San Bernardino 300 North "D" Street San Bernardino, CA 92401 RE: REQUEST TO NEGOTIATE EXCLUSIVELY Dear Mr Green: Our organization is a newly formed Local Development Corporation, (LDC) eminating in part from an earlier existing LDC, which has been incorporated to capitalize upon the resources and past efforts employed to develop the Central City West Redevelopment Proj ect Area. We hereby submit to the Redevelopment Agency of the City of San Bernardino a Request to Negotiate Exclusively for a period of 90 days for the purchase and development of that area generally described, with parcel exceptions fronting upon Spruce Street, as the area bounded by Fifth Street on the south, Mt. Vernon Avenue on the west, Spruce Street on the north and Garner Street on the east within the City of San Bernardino. We request that the Agency negotiate exclusively with us for a 90 day period during which time we will seek to complete a contract for the purchase of the land. Should our offer be accepted, we will exert every effort to proceed diligently and in good faith, with our obligations under this offer. We will submit monthly progress reports, in subsequent months, to reach the Agency beginning not later than 30 days from the acceptance of this offer, advising the Agency on all matters pertaining to the land in ques- tion, and all studies, plans and reports made or caused to be made by us during the re- porting period. We understand, of course, that the nature and type of development is subject to the approv- al of the Agency. We further understand that we will be required to make full disclosure to the Agency of our principals, officers, stockholders, partners, et cetera, and all other pertinent information concerning the developer and our associates. The architect and any other principal associates connected with this development shall be subject to the approval of the Agency. We further understand that we will be required to make full disclosure to the Agency of the methods of financing to be used in purchasing and developing the site. 5189 Page -2- ~ We further understand that the Agency reserves the right at any time either before or after the offers are submitted, to request additional information and data from the ~ developers, and that the Agency particularly reserves the right to obtain further inform- ation, data and commitments to ascertain the depth of developer capability and desire to purchase and develop the site expeditiously. We solicit the Board's support and recognition of our organization and grant this request to negotiate with the Agency exclusively for the time period indicated. Sincerely, sl s Lowell Trask, President San Bernardino Local Development Co. Inc. Mr. Green then explained that the company was being formed with the help of the Econ- omic Development Council and the Mayor. All the necessary documents have been filed with the State of California as a non-profit corporation. All officers were named, as follows: President: Lowell Trask; 1st Vice President: Mario Porras; 2nd Vice Presi- dent: Frank Dominguez; Secretary: Bill McCall; Treasurer: Wesley Jefferson. Mr. Obershaw inquired if any of the officers would be paid for their time and was in- ~ formed no, that it was strictly a group of individuals hopeful that they can be help- . ful to the Central City West Project. After review the following resolution was adopted:.... RESOLUTION NO. 3245 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE EXCLUSIVE RIGHT TO NEGOTIATE FOR THE DEVELOPMENT OF CENTRAL CITY WEST REDEVELOPMENT PROJECT AREA. WHEREAS, San Bernardino Local Development Company, Inc. , a local development company (referred to as LDC) has been formed to develop the Central City West Project and WHEREAS, the LDC will provide the instruments to obtain SBA loans for those persons de- siring to locate within the Central City West Project; and WHEREAS, by agreeing to the provision of an Exclusive Right to Negotiate with San Bern- ardino Local Development Company, Inc., the Agency and the LDC can proceed to process documents for SBA loans and to obtain firm commitments from proposed tenants. NOW THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bern- ..... ardino that the Chairman and Secretary be authorized to enter into Exclusive Right to Negotiate for the development Central City West Redevelopment Project, (LDC). -- BE IT FURTHER RESOLVED that said Exclusive Right to Negotiate is for a 90 day period, with the San Bernardino Local Development Company, Inc. r L ,-.. ....... r '-- 5190 Motion made by Stephenson and seconded by Obershaw to grant an Exclusive Right to Negotiate for the Development of Central City West Redevelopment Project with the San Bernardino Local Development Co. Inc. Motion carried by the following vote, to wit: Ayes: Obershaw, Wilson, Stephenson, Hinojosa, Guhin and Green. Noes: None. Abstention: None. Absent: Blum. RESTRUCTURING NOTE FOR PURCHASE OF PROPERTY -P AUL AND ANNE LOTZE Mr. Green reads aloud the following letter from the Lotzes. August 14, 1976 Mr. Ralph Shadwell Chairman RDA, San Bernardino, Calif. Dear Sir: To introduce ourselves, we are Paul and Anne Lotze, long-time residents of San Bernardino; in fact, Paul was born in San Bernardino in 1906. He was the owner of San Bernardino Sheet Metal Works until the property was taken over by the RDA. This firm was established in 1914 by his father and uncle. To make this as brief as possible: Because of the problems existing with the Agency, our financial status is in real jeopardy--and my husband, Paul, as a result of the pressures and uncertainties involved, is suffering more than he should: his hypertension, heart, etc., cannot take much more of this stress and strain. I am sure you understood and appreciate my concern. Our payoff was due on June 7, this year. We do thank you for interests on the principal we have received up to April 15 . Obligations and committments incurred, because of our belief that we would be paid by June 7, are pressing us and we are now at a place "of no return", unless you can help us. Mr. Shadwell, would it be possible for us to receive our interest due us up to this present date--August l4? If it would help you, we would accept 5% of the 7% interest now, with the 2% remaining interest added to the Principal and 7% interest when paid. We are also asking for the payment of the principal within 90 days from the current date--August 14, 1976--with all principal and interest (interest accrued from August 14) paid in full on Nov. 14, 1976. Your approval, with that of the committee involved, would be so appreciated by us and would help us both to "rest in peace" during our retirement years. Understanding your problems-- and appreciating your understanding ours, we thank you! Sincerely yours, 8/S Paul W. Lotze .tV"" s/ s Anne M. Lotze Mailing Address: 196 W. Marshall Blvd. 5191 Mr. Shadwell explained to the Board that the property is a key link to Central City South and is worth far more than the money currently owed to the Lotzes. In order to pay the Lotzes off in full we must market bonds for the Project Area. Mr. Wilson inquired as to the status of the other note holders. Agency staff replied that if we can, we should payoff all the others. Many things are still pending re- garding the formation of the parking district and our ability to market bonds. Agency staff explained that if we market bonds for Central City South, the monies will be used primarily for that project area to construct off-site improvements for de- velopments that could include retireing notes due to assemble land for development. ~ -- John Primrose, representing the Lotzes spoke from the audience. He stressed the fact that the Lotzes were in bad financial condition, but wanted to cooperate with the Agency as much as possible. Mr. Wilson questioned whether we could work with the Note Holders that are pressing Lotzes and was informed by Mr. Flory, "No". All Board Members feel that the Agency, i. e., Chairman and Secretary try to meet the demands if at all possible and help the Lotzes as soon as possible. Perhaps a partial payment can be made until we sell the bonds in the project area. Mr. Green stated that he felt we could make some payment to them. Mr. Primrose stated that he feels the Lotzes will go along with any reasonable payment. Board directs Chairman and Executive Director to try and work out a solution to save the property from foreclosure and help Lotzes. After review and consideration the following resolution was adopted: RESOLUTION NO .3246 ~ RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE RE-STRUCTURING OF A NOTE FOR PROPERTY PURCHASED FROM PAUL AND ANNE LOTZE LOCATED AT 649-655 and 663 WEST SECOND ST AND BACK LAND. ..... WHEREAS, the Redevelopment Agency of the City of San Bernardino purchased 7 parcels of land from Paul and Anne Lotze on June 7, 1974; and WHEREAS, the parcels consists of 99,694 square feet located at 649-655 and 663 West Second Street and backland; and WHEREAS, the purchase price was $305,000 with a down payment of $45,750 and a principal amount of $259,250 due June 7, 1976; and WHEREAS, the Lotze's have requested payment because of undue hardship and per- sonal physical suffering; and WHEREAS, the property is significantly valuable and a key to development in the Cen- tral City South Project Area and the Agency desires to retain the property for develop- ment. ~ NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San) Bernardino that the Agency will pay the Lotze's interest at 7% to August 15, 1976 and 5%"-; to November 15, 1976, with the 2% difference added to the final payment and the final r I ~ \..- r L r- , t' '- 5192 payment made November 15, 1976. BE IT FURTHER RESOLVED that this final payment be contingent upon the Agency's ability to market bonds in the Central City South Project in an amount sufficient to retire the note. AND BE IT FURTHER RESOLVED that should the Agency be unable to satisfy the final payment on November 15, 1976, the Chairman and Secretary will seek means to satis- fy the financial status of Paul and Anne Lotze and retain the parcels of property in question for development by the Agency. Motion made by Obershaw and seconded by Guhin to adopt Resolution 3246 and authorize Chairman and Executive Director to look for a solution to save the property and financial help for the Lotzes. Motion carried by the following vote, to wit: Ayes, Obershaw, Wilson, Stephenson, Hinojosa, Guhin and Green. Noes: None. Abstention: None. Absent: Blum. CHANGE ORDER FOR SUNRAY CONSTRUCTION CO. -PUBLIC ENTERPRISE CENTER Mr. Shadwell explained that certain changes have become necessary for the Public Enterprise Center and it is the desire of Frances Grice, Executive Director of Oper- ation Second Chance, Inc. that said changes be approved. Mrs. Grice stated that one of the changes that was very important to the people in the area was the name change for the library to be housed in the Public Enterprise Center. Mr. Obershaw inquired who would pay for these changes and was informed that the Agency would pay for them now, however, eventually the name change cost would be borne by Operation Second Chance. After review the following resol- ution was adopted: RESOLUTION NO. 3247 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CHAIRMAN AND SEC- RETARY TO ENTER INTO CHANGE ORDER WITH SUNRAY CON- STRUCTION CO. FOR AN AMOUNT OF $2,770.20. WHEREAS, some of the tenants who are to occupy the Public Enterprise Center are requesting certain changes to be made; and WHEREAS, all changes have been approved by Gruen Associates, Inc., architect for the project and Frances Grice, Executive Director for Operation Second Chance, Inc.; and WHEREAS, in order to avoid delaying the contract it is recommended that approval for the increase be awarded to Sunray Construction Co. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino that the Chairman and Secretary be authorized to enter into Change Order with Sunray Construction Co. for an amount not to exceed $2,770.20. 5193 Motion made by Wilson and seconded by Guhin adopting Resolution No. 3247. Motion carried by the following vote, to wit: Ayes: Obershaw, Wilson, Stephenson, Guhin, Green and Hinojosa. Noes: None. Abstention: None. Absent: Blum. CHANGE ORDER FOR SUNRAY CONSTRUCTION CO. - PUBLIC ENTERPRISE CENTER ~ Mr. Shadwell stated that the Agency staff did not recommend this Change Order that it is a policy decision to be made by the Board. -- Discussion followed regarding the use of the audio visual and other requests desired by Mrs. Grice for the Public Enterprise Center. Mr. Wilson inquired when the Agency would be able to turn the building over to Operation Second Chance and was informed next month. Mr. Wilson then inquired why Operation Second Chance did not pay for these additional requests on their own. Mrs. Grice stated that Operation Second Chance, at this time, is not financially able to assume these costs and that had the architect's specifications been correct many of these additional changes would not have been necessary. She stated her absolute concern regarding the lack of commun- ication between herself and the architect. At this point, Mr. Green stated that while there had been many changes in the specifi- cations, that he personally had toured the building and that it was a structure that all could be proud of and that Operation Second Chance was doing a fine job in their job placement. Mrs. Grice and Mr. Bivens stated that they had placed 337 students in 4 years. Mr. Obershaw congratulated them on the fine job they were doing. Mr. Wil- son inquired if there were going to be any more change orders and Mr. Jones stated that there would be a couple more, probably totaling approximately $3,000. Discuss- ion revealed that there has been $1,202,930.03 committed to the project, including these last two Change Orders. The original estimated budget was $1,200,000. After additional review and discussion, the following resolution was adopted: .... i~ ~ RESOLUTION NO. 3248 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND SEC- RETARY TO ENTER INTO CHANGE ORDER WITH SUNRAY CONSTRUCTION CO. FOR AUDIO VISUAL EQUIPMENT FOR AN AMOUNT NOT TO EXCEED $22,902.06. WHEREAS, the Agency has received a request from Operation Second Chance, Inc. for audio visual equipment for the school of opportunities; and WHEREAS, said equipment will be used primarily to bolster job placement as- pects of the project's program, together with scholastic, social and group encounter settings; and WHEREAS, with the use of said equipment student's areas of weakness can be readily identified and corrective action prescribed. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California that the Chairman and Secretary be authorized to enter into Change Order with Sunray Construction Co. for Audio Visual Equipment to be used for the Public Enterprise Center. .... ....J r l.. r L r-- ...... 5194 Motion made by Wilson and seconded by Guhin adopting Resolution No. 3248. Motion carried by the following vote, to wit: Ayes, Obershaw, Green, Wilson, Stephenson, Hinojosa and Guhin. Noes: None. Abstention: None. Absent: Blum. AWARD OF DEMOLITION CONTRACT TO LUTHER KELLY-LERNERS BUILDING Mr. Shadwell explained that Mr. Kelly had submitted the low bid of $2,000. and that Mr. Kelly expected to recover $16,000 in salvage from the building. After review the following resolution was adopted: RESOLUTION NO. 3249 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CHAIRMAN AND SECRETARY TO ENTER INTO CONTRACT WITH LUTHER KELLY DEMOLITION FOR LERNER -BERLANDS BUILDING FOR AN AMOUNT NOT TO EXCEED $2,000.00. WHEREAS, it is the desire of this Agency that the building referred to as 440 No. "E" and 450 No. "E" Street, more commonly known as Lerners and Ber1ands be demolished; and WHEREAS, Invitations to demolish the building were published in the Sun Telegram and six contractors picked up plans and specifications, however, only three contractors submitted bids; and WHEREAS, city inspection, stated in Building & Safety Dept. 's letter dated Aug. 5, 1976, found the following major defects in said structure: 1. South wall of original building has been damaged due to collapse of adjacent building, leaving the wall badly out of alignment. 2. The walls of the front half of the building that faces on "E" Street are composed of unreinforced brick. These walls are supporting the roof structure. 3. The wood roof sheathing and wood rafters are not adequately tied to the unrein- forced masonry walls. 4. The sign at the front of the building does not appear to have sufficient lateral bracing; and WHEREAS, in view of the aforementioned City findings, it has been determined that it is in the best interest of the Agency to accept the bid of Luther Kelly Demolition in the amount of $2,000.00. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino be authorized to enter into contract with Luther Kelly Demolition for demolition of the building located at 440 and 450 No. "E" Street in an amount not to exceed $2,000.00. 5195 Motion made by Obershaw and seconded by Guhin adopting Resolution No. 3249. Motion carried by the following vote, to wit: Ayes, Obershaw, Green, Wilson, Stephenson, Hinojosa and Guhin. Noes: None. Abstention: None. Absent: Blum. EXCLUSIVE RIGHT TO NEGOTIATE FOR J . C. PENNEY CO. - V ANIR RESEARCH CO. Mr. Shadwell explained that the Agency had received a request from Vanir Research Co. for an exclusive right to negotiate for the J. C. Penney Building for 180 days. He further explained that the City and Agency had tried to utilize the structure to no avail and it has stood vacant for over 4 years. Mr. Obershaw inquired about previous plans presented regarding the location of the Police Department into the building. Discussion revealed that perhaps the Police Department would locate into the Elks Building and the library would relocate into the Penney Co., however, now the library does not want to locate into the building and there has been no further research into relocation of the Police Department. Mr. Green stated that he feels we should grant the exclusive right. Mr. Obershaw stated that he felt a 90 day exclusive with the possibility of an additional 90 day extension would be appropriate in lieu of the requested 180 days. Mr. Hicks, representing Vanir Research Co. stated that building has been vacant since March of 1973 and that Vanir can and will rehabilitate the building and fine a tenant. Mr. Green then stated that he feels a 90 day exclusive would be the best way for the Agency to go inasmuch as that has been the policy in the past. If within 90 days, Vanir cannot do as they state, then the Agency could proceed with another developer. Mr. Wilson stated that he would go for the 180 days, but only with Council ratification because of the time and money spent on the building thus far. After review the following resolution was adopted: ,_J.-'(~- /- ~/l RESOLUTION NO. 3250 U/,d-_c {yo '> ::; ::... (' RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING AN EXCLUSIVE RIGHT TO NEGOTIATE FOR J .C. PENNEY CO. BUILDING TO VANIR RESEARCH CO. FOR 180 DAYS. WHEREAS, Vanir Research Co. desires to enter into an Exclusive Right to Negotiate for development of the old Penney Co. building in order to rehabilitate the structure and locate a tenant for same; and WHEREAS, inasmuch as this structure has stood vacant since March, 1973, the Agency deems it proper to grant said right to negotiate to Vanir Research Co.; and WHEREAS, Vanir Research Co. is to submit to the Agency progress reports, either in writing or verbal every sixty (60) days. NOW, THEREFORE, BE IT RESOLVED that the Chairman and Secretary be authorized to enter into Agreement authorizing Exclusive Right to Negotiate for J.C. Penney Co. Building for 180 days with Vanir Research Co. BE IT FURTHER RESOLVED that this Agreement is valid only upon Council ratification. -.. ....,j .... -- ~ ...., [ r I i ..... "... '-- 5196 Motion made by Stephenson and seconded by Wilson. Motion carried by the following vote, to wit: Ayes: Wilson, Stephenson, Hinojosa and Guhin. Noes: Green and Obershaw. Abstention: None. Absent: Blum. Discussion followed regarding responsibility of Vanir Research Co. to submit progress reports to the Agency. Motion made by Wilson and seconded by Obershaw that the first progress report be submitted 60 days after council ratification and monthly thereafter. Motion failed by the following vote, to wit: Ayes: Wilson and Obershaw. Noes: Hinojosa, Stephenson and Guhin. Abstention: Green. Absent: Blum. Motion made by Obershaw and seconded by Guhin that progress reports be submitted every sixty (60) days. Motion carried by the following vote, to wit: Ayes: Obershaw, Guhin, Stephenson, Wilson, Green and Hinojosa. Noes: None. Abstention: None. Absent: Blum. OTHER BUSINESS: Discussion regarding the cost of the fence at the Public Enterprise Center. Mr. Dan Branigan, Partner, Gruen Associates, Inc. spoke indicating that Gruen had made an honest error and were willing to compensate for their error. Mr. Green then stated that he felt that Gruen had made a fair compromise whereby Gruen's Contract Agreement in the amount of $81,570 would be reduced to $76,275. After discussion the following resolution was adopted: RESOLUTION NO. 3251 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CHAIRMAN AND SECRETARY TO ENTER INTO CONTRACT AMENDMENT WITH GRUEN ASSOCIATES, INC. WHEREBY THEIR CONTRACT AMOUNT WILL BE REDUCED TO $76,275. WHEREAS, Gruen Associates, Inc. and the Redevelopment Agency entered into Contract March 21, 1975 for architectural services relative to the Public Enterprise Center; and WHEREAS, because of an architectural error in the design of a fence, freely admitted by Gruen Associates, Inc., it has become necessary to enter into Contract Amendment No. 1 reducing said contract to the amount of $76,275. NOW THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, that the Chairman and Secretary be authorized to enter into Contract Amendment No.1 with Gruen Associates, Inc. , reducing their contract amount to $76,275 from $81,570. 5197 Motion made by Obershaw and seconded by Guhin adoping Resolution No. 3251. Motion carried by the following vote, to wit: Ayes: Obershaw, Guhin, Hinojosa and Green. Noes: Wilson and Stephenson. Abstention: None. Absent: Blum. ,.... YMCA -JEFFERSON SCHOOL Mr. Green stated a letter was to be in Agency possession from YMCA regarding a 30 daf"'" extension for the option to purchase the balance of the Jefferson School Site. Mr. Green made motion that we accept the YMCA's request for 30 day extension exchange for waiving of one (1) month's interest rate that the Agency is paying on the facility. Extension period will expire September 30, 1976. Motion made by Wilson and seconded by Obershaw to give a 30 day extension to the YMCA in exchange for the waiver of one month's interest currently being paid by the Agency. Motion carried by the following vote, to wit: Ayes: Obershaw, Green, Wilson, Stephenson, Hinojosa. Noes: None. Abstention: Guhin. Absent: Blum. ADJOURNMENT: Motion made by Guhin and seconded by Obershaw adjourning the meeting at 6: 10 p.m. Motion carried by the following vote, to wit: Ayes: Wilson, Obershaw, Hinojosa, Green, Stephenson, and Guhin. Noes: None. Abstention: None. Absent: Blum. --- R. E. Shadwell, Jr. Executive Director .... bb ~ ""'""'" 5198 t --- MINUTES OF THE ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO HELD THE 9th DAY OF SEPTEMBER, 1976, 300 NORTH "D" ST. SAN BERNARDINO, CA. r- Chairman Green called the meeting to order at 4: 06 p.m. Roll Call showed the following: Agency Members Present: Obershaw, Hinojosa, Green, Guhin and Blum. Agency Members Absent: Wilson and Stephenson Also Present: Ralph Shadwell, Executive Director, Wm. A. Flory, Agency Counsel and Barbara Brown, Executive Secretary. Mr. Green presented Paul Perea with a Resolution honoring Mr. Perea for his time and devotion during his tenure on the Agency Board. Mr. Perea thanked Mr. Green and the other Board Members. ~ The Minutes for the Adjourned Meeting held August 26, 1976 were submitted for approval. Mr. Hinojosa directed Mrs. Brown to correct his response from a No vote to aYes vote under Resolution No. 3250 stipulations. Mrs. Brown assured Mr. Hinojosa this would be done. Motion made by Hinojosa and seconded by Obershaw to approve the Minutes with the stipulation that the correction be made. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green and Guhin. Noes: None. Abstention: Blum. Absent: Wilson and Stephenson. ........ Mr. Green then announced this was the time and place for the Public Hearing for Vanir Research Co's Development in Central City South and opened the Hearing at 4:15 p.m. Mr. Green inquired if anyone present was opposed to the development and received no response. Mr. Green then inquired if anyone was in favor of the development, which will comprise the purchase of about 100,000 square feet for development and the balance for public parking and again received no response. Mr. Green then closed the Public Hearing at 4:17 p.m. Mr. Green inquired if the Agency's 3 Member Committee, working with Vanir Research Co., for this development had anything to report. ".... Mr. Obershaw stated that they had a fruitful discussion with Mr. Dominguez. Mr. Obershaw stated that up until this time, Mr. Dominguez seemed to feel that the Agency had an "anti-Dominguez" attitude which Mr. Obershaw now feels confident no longer exists. Mr. Obershaw stated however that Mr. Dominguez will have to come up with some plans more concrete than he has thus far, but he does feel that we can and should start purchase of the land and implementing the necessary bonding procedures. He further stated that Mrs. Blum had made it emphatic at the meeting with Mr. Dominguez that she desired a first rate department store, i. e. Bullocks etc. , but Mr. Obershaw feels that a Sears type development would be acceptable. Mrs. Blum does not share this feeling. ...... 5199 Mrs. Blum stated that she gets the feeling from her discussion with Mr. Dominguez that he does not have anyone in mind as yet. Perhaps he is seeking a medium priced department store, but she feels we have plenty of them already. Mrs. Blum stated ..... she has doubts, but thinks the Agency should go ahead and seek appraisals on the property, but that Mr. Dominguez must tell us what the name of the department store..... is. Mr. Obershaw stated that he feels Mr. Dominguez will do this very shortly. Mr. Guhin stated that he feels Mr. Dominguez knows now, but hasn't revealed it as yet. Mr. Green then inquired what the recommendation was of the committee and was told to proceed with negotiations for the property and get the appraisals and leave it at at that point. Mr. Obershaw feels that the matter should be tabled for awhile until we have more stable type information. Mr. Green asked about accepting the Offer to Purchase with certain conditions. At this time, Charles Ross of Riverside, owner of buildings in the block and Harvey Bryce of Bryce Industries, one of Mr. Ross's tenants, urged the board provide specific details of the possible property purchases to enable them to plan for their future. Mr. Green informed him this is impossible at this time as the Agency doesn It know what type of development or time schedule Mr. Dominguez would need for the development. Mr. Bryce voiced further concern and was assured that there was a State Law protecting both he and his rights. Mrs. Blum inquired how many days had the Agency given to Vanir Research and was ~ informed none, this is just an Offer to Purchase. Mr. Obershaw stated that he did not feel a project of this size could be put together fast. Agency Counsel reads aloud Resoluti~ No. 3252, as follows: RESOLUTION NO. 3252 RESOLUTION OF THE REDEVELOPMENT AGENCY ACCEPTING THE OFFER OF V ANIR RESEARCH CO. TO PURCHASE LAND IN CENTRAL CITY SOUTH SUBJECT TO CERTAIN CONDITIONS. WHEREAS, Vanir Research Co. submitted an Offer to Purchase Land August 12, 1976 of approximately 100,000 square feet at $3.00 per square foot to develop a department store plus a savings and loan and a restaurant in the block bounded by Second to Rialto and "F" to "G" Streets; and WHEREAS, a deposit of $15,000, $5% of the purchase price, was deposited with the Redevelopment Agency at the August 12, 1976 meeting; and WHEREAS, a Public Hearing was held on September 9, 1976 at 4: 00 p.m. and WHEREAS, if the Offer to Purchase submitted by Vanir Research Co. is accepted by the Board, a Predisposition Agreement should be entered into and executed between Vanir ~ - ",... i.j:. ~ , .... r I -....- ,... ..... 5200 Research Co. and the Agency, acceptable to both parties, including an acceptable development schedule for the project; and WHEREAS, another contingency of the acceptance of the Offer to Purchase is authorization by the Mayor and Council of the City of San Bernardino allowing this Agency to condemn property for the project, if necessary. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California that the offer of Vanir Research Co. be accepted, subject to the following conditions: 1. The entering in to a Predisposition Agreement with Vanir Research Co. acceptable to the Agency and approved by the Redevelopment Agency Board. 2. A development time schedule accepted by the Agency Board. 3. Authorization by the City Council permitting the Agency to condemn property for the project, if necessary. BE IT FURTHER RESOLVED that the Chairman and Secretary of the Agency be authorized to enter into a Predisposition Agreement acceptable to the Agency, after Board approval, and that the Staff be authorized to seek the permission of the City Council to condemn real property for the project, if necessary. Discussion follows the reading of the above and aforesaid Resolution regarding time schedules acceptable to both parties. Mr. Shadwell stated that he feels we should definitely go ahead and obtain the appraisals. Mrs. Blum stated that she too feels we should have the appraisals in any event. Again, Mr. Obershaw states that he feels the matter should be tabled for 90 days in order to enable Vanir to come in with something more. They could come back sooner if they want to. At this point Mr. Shadwell inquires if the Agency holds the deposit or returns it to Vanir. Board Members desire to continue to hold it. Mr. Hicks representing Vanir Research speaks from the audience opposing the tabling of the matter as it puts Vanir in a position where they have no place and/or leverage to go. He stated that Vanir would be willing to go along with all the stipulations. Mr. Green suggests to the Board that they accept the Offer to Purchase with the conditions as set forth by Agency Counsel in Resolution No. 3252. Mr. Obershaw inquired if the Predisposition Agreement can be ready by the next board meeting and is assured that it can be. Mr. Obershaw asks that the stipulations be read aloud again and Mr. Green obliges. Motion made by Obershaw and seconded by Guhin to accept Offer to Purchase under the conditions as set forth in the aforesaid Resolution No. 3252 already spread on the Minutes. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green, Guhin and Blum. Noes: None. Abstention: None. Absent: Wilson and Stephenson. CONTRACT AMENDMENT WITH C M ENGINEERING FOR WAGE RATE CHANGE. NO CONTRACT AMOUNT TO BE CHANGED. Mr. Shadwell explained to the Board Members that each year the International Union of Operating Engineers revises their Prevailing Wage Rate Schedule to 5201 reflect additional costs for engineering firms. There is no cost to the Agency, however, the rates go up so the contract price runs out faster. Mr. Obershaw asked if there was anyway around this was told no, not if you want to employ professional engineering firms. After discussion the following Resolution was adopted: ...... - RESOLUTION NO. 3253 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING CONTRACT AMENDMENT TO C M ENGINEERING INCORPORATING CHANGE IN WAGE RATES. WHEREAS, August 1st, of each year, the International Union of Operating Engineering revises the Prevailing Fee Schedule to reflect additional costs for engineering firms; and WHEREAS, in accordance with the provisions of the Agency, contractors with said firms indicate that Amendments to said Contracts incorporating the revised wage rates will be renegotiated; and WHEREAS, this Agency has received C M Engineering's Wage Rates reflecting no increase in contract amounts. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino that Contract Amendment be entered into with C M Engineering for the incorporation of Prevailing Wage Rates. ... BE IT FURTHER RESOLVED that said Amendment reflects on all open contracts with C M Engineering and that no contract amounts will be changed. ....... Motion made by Obershaw and seconded by Guhin adopting Resolution No. 3252. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green, Guhin and Blum. Noes: None. Abstention: None. Absent: Wilson and Stephenson. CHANGE ORDER - SUNRAY CONSTRUCTION CO. - PUBLIC ENTERPRISE CENTER Mr. Obershaw immediately asked why. Mr. Jones of the Agency explained to Mr. Obershaw that additional equipment had to be moved. Also that the increase for ventilation was necessary to the transformer room in order to prevent overheating of the equipment. Mr. Obershaw asked whose fault it was. Mr. Jones was hesitant to say, but feels the fault must lie with the architect and the engineer. Mr. Obershaw asked Mr. Jones for a breakdown on this item for the next board meeting as he is very un- happy about all these change orders. After discussion the following Resolution was adopted: RESOLUTION NO. 3254 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING CHANGE ORDER WITH SUNRAY CONSTRUCTION COMPANY FOR AN AMOUNT NOT TO EXCEED $2,269.25. ...... --' 5202 r- WHEREAS, the Agency received a price from the contractor through Gruen Associates, Inc., and approved by Operation Second Chance, Inc., for additional services on the Public Enterprise Center; and ....... WHEREAS, it is the understanding of this Agency that additional shelves for the library are the desire of the Library Director; and WHEREAS, the additional increase for ventilation to the transformer room to prevent overheating of the equipment was due to the increase in equipment in said location and a requirement of the Fire Department and this item was not included in the original plans and specifications; and WHEREAS, the original amount of this Change Order has been reduced from $2, 753 . 58 to $2,269.25. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino that the Chairman and Secretary be authorized to enter into Change Order with Sunray Construction Co. for additional shelves and additional ventilation for an amount not to exceed $2,269.25 for the Public Enterprise Center. Motion made by Blum and seconded by Guhin to adopt Resolution No. 3254. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green, Guhin and Blum. Noes: None. Abstention: None. Absent: Wilson and Stephenson. "...... 45 DAY EXTENSION TO ALEXANDER-WEISSMAN-SENIOR CITIZEN HOUSING - Mrs. Blum inquired as to the necessity of an additional forty-five day extension and Mr. Alexander explained that because of HUD regulations, the additional time is necessary. After discussion the following Resolution was adopted: RESOLUTION NO. 3255 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO CONTRACT AMENDMENT WITH ALEXANDER & WEISSMAN DEVELOPERS, EXTENDING EXCLUSIVE RIGHT TO NEGOTIATE FOR SR. CITIZENS HOUSING COMPLEX WHEREAS, the Redevelopment Agency, by Resolution No. 3168, granted an exclusive right to negotiate for the development of the Senior Citizens Housing Complex, Centerl City North, to Alexander & Weissman Developers; and ,..... j WHEREAS, pursuant to this resolution, on March 12, 1976 a contract was entered into between the Agency and Alexander & Weissman for a 90 day exclusive right to negotiate for said development, expiring June 12, 1976; and .... WHEREAS, the Redevelopment Agency, by Resolution No. 3212, extended the expiration date of the exclusive right to negotiate by 90 additional days, expiring September 12, 1976; and 5203 WHEREAS, Alexander & Weissman have requested an extension of 45 days in order to pursue special funding through a HUD program; and -- WHEREAS, the Agency Members have reviewed their request and have found that the request is warranted. - NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to enter into Contract Amendment with Alexander & Weissman Developers extending the exclusive right to negotiate from September 12, 1976 to October 27, 1976. Motion made by Obershaw and seconded by Blum adopting Resolution No. 3255. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green, Guhin and Blum. Noes: None. Abstention: None. Absent: Wilson and Stephenson. AMENDMENT OF RESOLUTION NO. 3250 PLACING CONTINGENCY UPON EXCLUSIVE RIGHT TO NEGOTIATE WITH VANIR RESEARCH CO. Mr. Green explained that because of previous board stipulations, this Item went before the Mayor and Council at their meeting held September 7, 1976. The Mayor and the Council approved the item with the condition that said Resoltuion be amended to include stipulation providing that if the owner initiates foreclosure proceedings, that the period be limited to 90 days from date said foreclosure is recorded. Mrs. Blum inquired if we could still have the Exclusive Right to Negotiate and was in- formed yes. After discussion the following Resolution was adopted: .... - RESOLUTION NO. 3256 RESOLUTION OF THE REDEVELOPMENT AGENCY AMENDING RESOLUTION NO. 3250 AWARDED BY THE AGENCY BOARD AUGUST 26, 1976 GRANTING AN EXCLUSIVE RIGHT TO NEGOTIATE FOR 180 DAYS FOR THE FORMER J. C. PENNEY CO. TO V ANIR RESEARCH CO. WHEREAS, the Agency Board at it's last Board Meeting held August 26, 1976 awarded 180 day Exclusive Right to Negotiate to Vanir Research Co. for the J. C. Penney Co. contingent upon ratification of the Mayor and Common Council; and WHEREAS, at the Council meeting held September 7, 1976 the Mayor and Council approved, in principle, the Exclusive Right to Negotiate for the former J. C. Penney building lo- cated at Fifth and "E" Streets, provided however, if the owner initiates foreclosure proceedings, that the period be limited to 90 days from date said foreclosure notice is recorded. NOW, THEREFORE, BE IT RESOLVED that Agency Resolution No. 3250, awarded August 26, 1976, to Vanir Research Co. for an Exclusive Right to Negotiate for the former J. C. Penney Co. for 180 days is amended to provide that if the owner initiates foreclosure ....... proceedings, that the period be limited to 90 days from date said foreclosure is recorded. - ,- , I ~ r I ..... r i k ... 5204 Motion made by Obershaw and seconded by Guhin adopting Resolution No. 3256. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green and Guhin. Noes: Blum. Abstention: None. Absent: Wilson and Stephenson. Mr. Green calls for Executive Session at 4: 58 p.m. Mr. Green states that the Executive Session is being called to discuss possible litigation. Mr. Green re-opens Regular Adjourned Meeting at 5: 12 p.m. Following the Executive Session, the board acted on Item No. 6 of the Agenda, as follows: RESOLUTION TERMINATING CONTRACT FOR PROFESSIONAL ARCHITECTURAL SERVICES CENTRAL CITY WEST. Resolution reads as follows: RESOLUTION NO. 3257 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TERMINATING CONTRACT FOR PROFESSIONAL ARCHITECTURAL SERVICES WITH MARVIN G. SUTTER, A.LA. CENTRAL CITY WEST. WHEREAS, a contract between the Agency and Marvin G. Sutter was entered into on June 6, 1975 in order to provide plans and specifications for the development of the Central City West Project, 5th and Mt. Vernon Avenue; and WHEREAS, the Agency at their meeting held August 26, 1976 entered into Exclusive Right to Negotiate with a Local Development Company; and WHEREAS, it now becomes imperative that the plans and specificatons for this project become a necessary instrument for the completion of said project; and WHEREAS, numerous verbal efforts have been made to contact Mr . Sutter which have all proven fruitless and to no avail and Certified Mail, R. R. R. was also forwarded to Mr. Sutter with the request that he contact the Agency, which he failed to do and; WHEREAS, on September 1, 1976, Agency Counsel had hand delivered, to Mr. Sutter a Notice of Intention to Terminate Contract and Mr. Sutter failed to reply to said Notice; and WHEREAS, since the Agency must now move forward and obtains plans for this devel- opment, it becomes necessary to terminate this contract and seek other means for the furtherance for plans and specifications for this project. NOW, THEREFORE, BE IT RESOLVED that the Agency terminate Contract for Professional Architectural Services with Marvin G. Sutter entered into June 6,1975 for Central City West. 5205 CONTRACT FOR PROFESSIONAL ARCHITECTURAL SERVICES-CENTRAL CITY WEST. Mr. Green, Chairman, stated that because of his close relationship i. e. , Economic Development Council Vice President, and possible conflict of interest, he will abstain and step down. Vice-Chairman Blum chairs the Board. ...., ......J Mr. Shadwell explains that the Economic Development Council has been working very diligently for tenants for the Central City West Development Project. Mr. Shadwell refers to architectural layout prepared by Michael J. Murphy. Mr. Shadwell also explained that the plot plan has gone through the Planning Commission for the necessary lot splits. After discussion the following Resolution is adopted: RESOLUTION NO. 3258 RESOLUTION OF THE REDEVELOPMENT AGENCY TO ENTER INTO CONTRACT WITH MICHAEL J. MURPHY, A.I.A. FOR PROFESSIONAL ARCHITECTURAL SERVICES - CENTRAL CITY WEST. WHEREAS, The Redevelopment Agency has entered into Exclusive Right to Negotiate with the newly formed Local Development Co., (LDC) , to develop the Central City West Project; and WHEREAS, plans are in the process of being finalized through the Economic Develop- ment Council to provide tenants for this development; and WHEREAS, detailed plans and specifications are necessary to determine costs and construction schedule; and ... .... WHEREAS, in order to provide for said plans and construction schedule it has become necessary to acquire the services of an architect; and WHEREAS, Michael J. Murphy has submitted a proposal in three phases, as follows: Phase 1: Phase 2: Phase 3: Market: Drug Store: Boutique Shops: $6,600.00 $3,000.00 $1,500.00 TOTAL: $11,100.00. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino that the Chairman and Secretary be hereby authorized to enter into Con- tract with Michael J. Murphy, A.I.A. for Professional Architectural Services for Central City West for three phases of work not to exceed the amount of $11,100.00. Motion made by Obershaw and seconded by Guhin adopting Resolution No. 3258. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Guhin and Blum. Noes: None. Abstention: Green: Absent: Wilson and Stephenson. JIIIIIIIl At this point Mr. Obershaw requests that Mrs. Brown make Agenda Item Nos. larger and is assured by Mrs. Brown that this will be done. ...,.; CONTRACT FOR PROFESSIONAL ENGINEERING SERVICES-C M ENGINEERING-SEIP 5206 [ Mr. Green explains to the Board that we have a large development for our Southeast Industrial Project, namely, Lifetime FFoam Products, Inc., a subsidiary of Sears Roebuck Co, but that the timing for this project is very critical. Mrs. Blum expressed her delight at the news. Mr. Obershaw inquired just what part Huntley Properties will play in the project and is informed that Huntley Properties will be the developer and that they were selected by Lifetime Foam and will build the structure. The upset figure proposed by C M Engineering is not to be exceeded, and hopefully will be negotiated lower, but because of lack of time, an upset figure had to be arrived at in a short amount of time. After some discussion the following Resolution was adopted: RESOLUTION NO. 3259 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO CONTRACT WITH CM ENGINEERING, FOR PROFESSIONAL SERVICES, SOUTHEAST INDUSTRIAL PARK WHEREAS, the Southeast Industrial Park Redevelopment Proj ect Area, was adopted by City Ordinance No. 3583, June 21, 1976; and [ WHEREAS, Huntley Properties, representing Lifetime Foam Products, has expressed an interest in certain land within the Southeast Industrial Park, for the development of a mattress factory; and WHEREAS, Lifetime Foam Products have expressed their urgency in moving this development toward completion as rapidly as possible; and WHEREAS, pursuant to Resolution No. 3204 of the Redevelopment Agency, adopted 5-6-76, the Agency is authorized to provide necessary on and off site improvements to developers; and WHEREAS, due to the great urgency of rapid completion of this development, it is necessary to engage the services of a professional engineering firm, to provide the Agency with specifications and contract documents for the on and off site improvements within this proposed location; and WHEREAS, CM Engineering has proposed to provide this service within the time elements involved. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to execute an Agreement with CM Engineering for necessary engineering services within the Southeast Industrial Park, as they relate to the Lifetime Foam r Products development, for an upset figure of $ 67,500.00 ! ! ~ 5207 Motion made by Obershaw and seconded by Blum to adopt Resolution No. 3259. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Blum, Guhin and Green. Noes: None. Abstention: None. Absent: Wilson cmd Stephenson. ---. OTHER BUSINESS: - Mr. Green reads aloud a letter from the Mayor, dated September 9,1976, as follows: September 9, 1976 Board of Directors Redevelopment Agency City of San Bernardino 300 North "D" Street San Bernardino, CA 92418 Gentlemen: Re: Office Space at California Theatre I have received a request from the Community Services Department, County of San Bern- ardino, for free use of a small ground floor office in the California Theatre building for a senior citizens drop-in information center. Their concept for an information center to assist our senior citizens appears to be inter- .., esting and in vew of the fact that the proposed site is in close proximity to the main bus ~ terminal, I believe the location they request would be ideal. .....Ii I respectfully request that your Board give favorable consideration to this request as it would not only promote intergovernmental relations, but would also help provide needed services to our senior citizens. Thank you for your consideration of this request. Sincerely, sls W. R. "Bob" Holcomb, Mayor WRK.:k Mr. Green then reads aloud letter from Human Resources Agency. August 6, 1976 Honorable Robert Holcomb, Mayor City of San Bernardino 300 "D" Street San Bernardino, CA .., ......, Dear Mayor Holcomb: Mr. Virgil Davis recentl s k . y po e wIth you about vacant space in the old California r .... r ~ ~ [ 5208 Theater Building. This Community Services Department would be interested in this location as a walk-in Information and Referral Center for seniors. The location is very desirable since it is across from the bus stop. Mr. Davis' understanding that the building will be made available to us as a public service to the senior citizens in the City of San Bernardino that we each attempt to serve. If made available to us, we will staff and maintain a desk and phone eight hours per day in an office there. The senior's Information and Referral Program is operated by the Community Ser- vices Department under contract from the Office on Aging formerly known as Plan Action for Senior Citizens. The Community Services Department is committed to be- ginning service in your city on or around September 1, 1976. Therefore, we would appreciate a complete discussion of this matter as soon as possible. Mr. James Curtis, Senior Opportunities and Services Manager, is available for dis- cussion or to answer any questions you may have. Also, please feel free to call me at any time. Sincerely yours, sl s C. C . Vermillion Interim Executive Director CCV:JC:pn Mr. Green stated that there would be no cost to the Agency in allowing this courtesy to the senior citizens. Mayor Holcomb said that they would pay all costs, i. e. , utilities, minor repair etc. Mr. Obershaw inquired about liability in- surance. After discussion motion was made to allow Community Services Department, Human Resources Agency, to occupy space in the old California Theatre providng that no costs shall be incurred by the Agency and that the County hold the Agency harmless from any liability. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Guhin, Green and Blum.. Noes: None. Abstention: None. Absent: Wilson and Stephenson. Mrs. Blum brings up the subject ot the appraisals for Central City South and states her thoughts that the appraisals should definitely be sought, and that a motion should be passed regarding the appraisals. After discussion, motion made by Blum and seconded by Guhin authorizing the Agency to proceed with the acquisition of appraisals for the Central City South Project. Motion carried by the following vote, to wit: Ayes: Ober- shaw, Hinojosa, Guhin, Blum and Green. Noes: None. Abstention: None. Absent: Wilson and Obershaw. Mr. Green explained that the next regular meeting of the Agency should be September 16, 1976, however, we will need additional time in order for the bonding documents to be available and asks that the meeting be adjourned until September 23, 1976 at 3: 00 p.m. Motion to adjourn the meeting until 3: 00 p.m., September 23,1976, made by Guhin and 5209 seconded by Blum. Motion carried by the following vote, to wit: A yes: Obershaw, Hinojosa Guhin, Blum and Green. Noes: None. Abstention: None. Absent: ilson and Stephenson. -- - b ...., -...,.,II ...., ....., r i l., ""...., ..... r ...., 5210 MINUTES OF THE SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO HELD AT 3: 00 P.M. SEPTEMBER 16,1976, 300 NORTH "D" STREET, SAN BERNARDINO, CALIFORNIA. Chairman Green called to order a Special Meeting to a duly given Notice at 3:13 p.m. Roll Call showed the following: Agency Members Present: Obershaw, Hinojosa, Green, Blum and Stephenson. Agency Members Absent: Guhin and Wilson Also Present: Ralph Shadwell, Executive Director, Wm. A. Flory, Agency Counsel and Barbara Brown, Executive Secretary. AWARDING OF CONTRACT WITH ALBERT KNORR, M.A.1. FOR APPRAISAL SERVICES, CENTRAL CITY SOUTH PROJECT. Mr. Green stated that he believed that most of the Board Members had been polled by telephone and that all agreed to the acceptance of the proposal submitted by Albert Knorr in the amount of $4,5000.00 and that he would like the necessary ratifying motion to accept the proposal and adopt the following Resolution: RESOLUTION NO. 3260 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIRMAN AND SECRETARY TO ENTER INTO CONTRACT WITH ALBERT E. KNORR, M.A.1. FOR APPRAISAL SERVICES, CENTRAL CITY SOUTH. WHEREAS, the Agency desires to engage professional services for the appraisals of 14 parcels of land within the block bounded by "F" and "G" and Second and Rialto Avenues, within the Central City South Project; and WHEREAS, four proposals were received for this service, the lowest being submitted by Albert E. Knorr in the amount of $4,500 with a 45 day completion date. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, CA that the Chairman and Secretary be authorized to enter into Contract with Albert E. Knorr for appriasal services, Central City South, in an amount not to exceed the total sum of $4,500.00. Motion made by Blum and seconded by Obershaw. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green, Blum and Stephenson. Noes: None. Abstention: None. Absent: Guhin and Wilson. ACCEPTANCE OF PRE-DISPOSITION AGREEMENT WITH SAN BERNARDINO GRAND HOTEL, INC. Mr. Green explained that this Item is the main reason for the Special Meeting and now q -/10 - ~l~ 5211 was the time to proceed. Mr., Obershaw inquired if th~r~ had been any changes, in ,the shar,eh~lders of the ~an Ber~ ardmo Grand Hotel, Inc. , orlgmally named at the begmmng of thIS Item and was mformec ( yes, that Mr. Frank G. Fleischer has become a shareholder and the President of the San Bernardino Grand Hotel, Inc. However, Mr. Green, at this time, asked Mr. Schwartz -....Ii to address himself to the Board. Mr. Schwartz stated that a Pre-Disposition Agreement had been drawn up by Agency Counsel, Wm. A. Flory, and had been to tall y acceptable to his people and his attorneys. Mr. Schwartz has also deposited a "good faith deposit" with the Agency, so that no one will have the feeling that because his commitment to the Agencyis up with his request for final payment of $2,500, that he will not continue to follow up for a major hotel to locate in the Cetral City Project. Said deposit is $2,500. Mr. Schwartz further explained that he will be meeting with lenders next Thursday in New York. Mr . Schwartz explained some of the financial institution's feelings toward financing. San Bernardino Grand Hotel, Inc., will obviously go to the lender that will give them the best loan. At this time, Mr. Green refers to Memorandum prepared by Mr. Shadwell, dated September 14, 1976 and the Predisposition Agreement wherein the $2,500 good faith deposit is mentioned. Mr. Green again stipulates that this is done on Mr. Schwartz's part so that no one will feel that he will no longer try to put the hotel package together. This was not a necessary action on Mr. Schwartz I s part, but Mr. Schwartz felt it would be in the best interest of all to do so. Mr. Guhin arrives at 3: 30 p.m. .... Mrs. Blum inquires of Mr. Schwartz if Grand Metropolitan was a firm from England. Mr. Schwartz replied yes. He stated that because of current British tax laws, they must get permission from the Bank of England to invest funds overseas. The Raddison Hotel Chain does not have the same premise. Mrs. Blum inquired as to what type hotel the Raddison Chain was and was informed that it was in the same category as the Marriott Hotel Chain. Raddison has four major hotels in Minneapolis, Minn., one in Atlanta, Ga., Charlote, No. Carolina, Omaha, Neb., Lincoln, Neb., Denver, Colo., Kansas City, Ka., and one in Tobago in the West Indies. Mrs. Blum states that she wants to make sure that it is a high level quality hotel. ....", Mr. Schwartz brings to the Board's attention, the fact that the former Chairman, W. W. Hodgdon had been in contact with this chain long before, but never followed through on it. This was confirmed by Mr. Green. Thus, when Mr. Schwartz contacted them as a possible developer for San Bernardino, they produced correspondence from Chair- man Hodgdon and their subsequent reply. Mr. Schwartz indicated that Raddison was pleased to be contacted again for a project in San Bernardino, California. Mr. Schwartz stipulates with finality that financing will be and is the major part of the whole development. Mr. Schwartz also stated that it would be very detrimental to say that he has changed negotiations with anyone at this time, nor has he signed a contract with anyone. Mrs. Blum inquired as to how long it might be before Mr. Schwartz would be in a position to sign a contract and Mr. Schwartz informed her within the next thirty days. The terms will be the main factor in the signing .., ....J ,.... ~ L r \.- r- ~ ..... 5212 of any contract. Mr. Schwartz also stated that the in dealing with the three organi- zations he is currently dealing with, the terms will make the final decision as to where to pursue the management section. Mr. Baker, reporter for the Sun Telegram questioned Mr. Schwartz as to the size of the project, dollar wise. Mr. Green advised Mr. Schwartz to answer Mr. Baker, with an answer to include all parking etc. Mr. Schwartz did so, by informing Mr. Baker the total cost would be $13,500,000. Mr. Baker asked how much it would cost without parking and was informed $11,500,000. Wm. R. Leonard spoke from the audience and asked if there was a time deadline in the Agreement. Mr. Green requested that someone give Mr. Leonard a copy of the Agreement, which is done. Mr. Green further explains that the good faith deposit will be used toward the entering into of the Agreement. The actual cost of the land will be determined prior to the entering into of the Disposition Agreement. Mr. Green calls for a motion to authorize the Chairman and Secretary to enter into a Pre-Disposition Agreement with San Bernardino Grand Hotel, Inc., and for the payment of $2,500 to Mr. Schwartz for the final phase of his contract with the Agency. Mr. Stephenson stated that while he had not had the opportunity to read the Agree- ment, if Agency Counsel Flory had prepared the documents, that was good enough for him and he would so vote. The following Resolution was adopted: RESOLUTION NO. 3261 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND SECRETARY TO ENTER INTO PRE-DISPOSITION AGREEMENT WITH THE CENTRAL CITY HOTEL DEVELOPER, SAN BERNARDINO GRAND HOTEL, INC. WHEREAS, the Agency entered into an Agreement with Hotel Development Consultants, Inc. , to work toward the development and construction of a first class hotel in downtown San Bernardino; and WHEREAS, Mr. Robert Schwartz, Hotel Development Consultants, Inc., has now completed the third phase of said Agreement, that of executing a Pre-Disposition Agreement between the Agency and the developer for the development of the hotel site; and WHEREAS, Hotel Development Consultants, Inc., are now due the $2,500 payable upon the sigr ing of said Pre-Disposition Agreement; and WHEREAS, San Bernardino Grand Hotel, Inc. , lead developer, deposited $2,500 with the Agency as a II good faith deposit II toward the completion of the hotel development. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California that the Chairman and Secretary be authorized to enter into Pre- Disposition Agreement with San Bernardino Grand Hotel, Inc. BE IT FURTHER RESOLVED that the final phase due Hotel Development Consultants, Inc. , in the amountof $2,500.00 be paid. Motion made by Obershaw and seconded by Blum. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green, Blum, Stephenson and Guhin. Noes: None. Abstention: None. Absent: Wilson. At this time Mr. Fleischer, President of San Bernardino Grand Hotel, Inc., spoke. He assured the Board that his firm would move forward and he complimented the Board on a very fine project. The Board acknowledged Mr. Fleischer with their thanks. Mr. Green calls for adjournment. Motion made by Stephenson and seconded by Ober- shaw. Motion carried by the following vote, to wit: Ayes: Obershaw, Hinojosa, Green, Blum, Stephenson and Guhin. Noes: None. Abstention: None. Absent: Wilson. Adjourned: 3: 45p.m. ~~ R. E. Shadwell, Jr. Secretary b 4213 ....... ....- ., ~ ..... ~ ......- 4214 [ MINUTES OF THE ADJOURNED REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA HELD THE 23rd DAY OF SEPTEMBER, 1976, 300 NORTH "D" STREET, SAN BERNARDINO, CA. Chairman Green called the meeting to order at 3: 13 p . m . Roll Call showed the following: Agency Members Present: Blum, Obershaw, Hinojosa, Stephenson and Green Agency Members Absent: Wilson and Guhin Also Present: Ralph Shadwell, Jr. , Executive Director, Wm. A. Flory, Agency Counsel and Barbara Brown, Executive Secretary The Minutes for the Adjourned Regular Meeting held September 9, 1976, were submitted for approval. Motion made by Obershaw and seconded by Blum to approve the Minutes. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None. Abstention : None. Absent: Wilson and Guhin. The Minutes for the Special Meeting held September 16, 1976 were submitted for approval. Motion made by Blum and seconded by Obershaw to approve the Minutes. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin . [ Expenditures for the Month of August, 1976 were submitted for approval. Mr. Obershaw questioned the expense of Allen B. Gresham and was informed that he performed special legal services regarding the litigation on the Lerner Building. Mrs. Blum questioned the expenditures for the BankAmerica Card and was in- formed that they represented costs for the special dinner briefings held for) buncil persons and Agency Staff. Mr. Baker, representing the Sun Telegram questioned this item and was assured by Mr. Green and Agency Counsel that these meetings were legal and expenditures legal, nor were they held in secrecy. Motion made by Obershaw and seconded by Stephenson to accept the expenditures for the Month of August. Motion carried by the following vote, to wit: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin. RESOLUTION AUTHORIZING ISSUANCE OF $2,000,000 TAX ALLOCATION NOTES Mr. Green explained to the Board that this type of transaction has been an action typical of the Agency in the past and is necessary to move forward with our Central ,... City North Project. They are three year notes. Mrs. Blum inquired if anyone J was present from Miller and Schroeder and was informed no. After discussion ...... motion was made to adopt the following resolution. ~ "i ...J .... ~ .....; ~ .....J r i L. RESOLUTION NO. 32H2 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING THE ISSUANCE OF $2,000,000 PRINCIPAL AMOUNT OF TAX ALLOCATIOI\ NEGOTIABLE PROMISSORY NOTES, ISSUE OF 1976, TO AID IN THE FINANCING OF A REDEVELOPMENT PROJECT KNOWN AS THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA. [ Recitals Resolving Clause Section I. Definitions Section 2. Amount, Issuance and Purpose of Notes Section 3. Nature of Notes Section 4. Description of Notes Section 5. Interest Section 6. Place of Payment Section 7. Forms of Notes;- Temporary Notes Section 8. Execution of Notes Section 9. Types of Notes, Registration and Exchange Section 10. Note Register Section II. Redemption of Notes Prior to Maturity A. Terms of Redemption B. Call for Redemption C. Notice of Redemption D. Redemption Fund E. Partial Redemption of Fully Registered Nott.s F. Effect of Redemption Section 12. Funds Section 13. Sale of Notes; Disposition of Note Proceeds; Redevelopment Fund Section 14. Tax Revenues Section 15. Special Fund Section 16. Deposit and Investment of Moneys in Funds Section 17. Issuance of Parity Notes and Bonds Section 18. Covenants of the Agency 1. Complete Redevelopment Project; Amendment to Redevelopment Plan 2. Use of Proceeds of Notes; ~lanagement and Operation of Properties r I L... 4215 Page 1 1 1 2 3 3 4 4 4 5 5 5 5 5 6 6 6 7 i ~ I H I) 9 9 10 11 11 11 ~ ....., ... ...., ..... .... 4216 ,,-. l'a!l:(' I..... .3. No Priority 4. Punctual Payment 5. Payment of Taxes and Other Charges 6. Books and Accounts; Financial Statements 7. Eminent Domain Proceeds 8. Disposition of Property 9. Protection of Security and Rights of Noteholders; No Arbitrage Section 19. Taxation of Leased Property Section 20. Fiscal Agent and Paying Agents Section 21. Lost, Stolen, Destroyed or Mutilated Notes. Section 22. Cancellation of Notes Section 23. Amendments . A. Calling Noteholders' Meeting B. Notice of Meeting C. Voting Qualifications D. Issuer-Owned Notes E. Quorum and Procedure F. Vote Required Section 24. Proceedings Constitute Contract Section 25. . Severability Section 26. Effective Date Exhibit A (Form of Bearer Note) Exhibit B (Form of Fully Registered Note) 11 11 11 12 12 12 \-.. r-- 12 13 13 13 14 14 14 14 15 15 15 15 15 16 17 20 24 ,... ......... 11 "'" - ~ --..J ~ - 4217 C,", c ,I " "~,,,. , , " ,.... HESOLUTION NO. $JltD~ ~ '- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNAHDINO AUTHORIZING THE ISSUANCE OF $2,000,000 PRINCIPAL AMOUNT OF TAX ALLOCATION NEGOTIABLE PROMISSORY NOTES, ISSUE OF 1976, TO AID IN THE FINANCING OF A REDEVELOPMENT PROJECT KNOWN AS THE CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA. WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a redevel- opment agency (a public body, corporate and politic) duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law [Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the State of California] and the powers of the Agency include the power to issue notes for any of its corporate purposes; and WHEREAS, the Redevelopment Plan for a redevelopment project known and designated as the "Central City North Redevelopment Project Area" has been adopted and approved and all require- ments of law for and precedent to the adoption and approval of the Redevelopment Plan have been duly complied with; and WHEREAS, the issuance of notes at this time is necessary to enable the Agency to accomplish the purposes of the Redevelopment Plan. r , Now, THEREFORE, THE REDEVELOPMENT AGENCY Ot' THE CITY OF SAN BERNARDINO DoES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: "'- ".. Section 1. ,Definitions. As used in this Resolution the following terms shall have the following meanings, unless the context otherwise requires: (a) "City" means the City of San Bernardino, California. (b) "Federal Securities" means United States Treasury Notes, bonds, bills, or certificates of indebtedness, or obligations for which the faith and credit of the United States are pledged for the payment of principal and interest; bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by federal land banks or federal intermediate credit banks established under the Federal Fann Loan Act, as amended, and Farm Credit Act of 1971, debentures and consolidated debentures issued by the' Central Bank for Cooperatives and banks for cooperatives established under the Farm Credit Act of 1933, as amended, and the Farm Credit Act of 1971, bonds or debentmes of the Federal Home Loan Bank Board established under the Federal Home Loall Balik Act, honds of any federal home loan bank established under said act and stocks, bonds, debentures, participations and other obligations of or issued by the Federal National Mortgage Association, the Student Loan Marketing Association, the Gov- ernment National Mortgage Association and the Federal Home Loan Mortgage Corporation; and bonds, notes or other obligations issued by the Federal Financing Bank, the United States Postal Service, or issued or assumed by the International Bank for Reconstrnction and Develop- ment, the Tennessee Valley Authority. the IlIter-American Development Bank, the Government Development Bank for Puerto Rico. or the Asian Development Bank. ( c) "Fiscal Agent" means the fiscal agent appointed by the Agency pmsuant to Section 20 hereof, its successors and assigns, and any other corporation or association which may at any time be substituted in it~ place, as provided in this Resolution. '-- ~ - ~ ..... ~ - 4218 r- I ! ""'- (d) "Fiscal Year" means the year period heginning on July 1st and ending on the next following June 30th. (e) "Independent Financial Consultant" and "Independent Engineer" mean any financial consultant or any engineer or firm of such consultants or engineers, respeetively, appointed hy the Agency, and who, or each or whom, has a favorable reputation in the field in which his opinion or certificate will be given, and: (1) is in fact independent and not under domination of the Agency; and (2) does not have any substantial interest, direct or indirect, with the Agency; and (3) is not connected with the Agency as an officer or employee of the Agency, but who may be regularly retained to make reports to the Agency. (f) "Law" means the Community Redevelopment Law of the State of California, as cited in the recitals hereof. (g) "Notes" means the two million dollars ($2,000,000) principal amount of tax allocation negotiable promissory notes authorized by this Resolution. (h) "Noteholder" or "Holder of Notes", or any similar ternl, means any person who shall be: (i) the holder of any outstanding Note payable to bearer, or (ii) the registered owner or his duly authorized attorney, trustee, representative, or assigns of any outstanding Note which shall at the time be registered so as to be payable other than to bearer. For the purpose of Noteholders' voting rights or consents, Notes owned hy or held for the account of the Agency, or the City, directly or indirectly, shall not be counted. (i) "Parity Notes" means any additional tax allocation notes (including, without limitation, bonds, notes, interim certificates, debentures or other obligations) issued hy the Agency as per- mitted by Section 17 of this Resolution. (j) "Paying Agent" means any paying agent provided by the Agency pursuant to this Resolution. ,.... ~ ! , \-., (k) "Redevelopment Plan" means the "Redevelopment Plan for the Central City North Rede- velopment Project Area" approved and adopted by the City by Ordinance No. 3366, and includes any amendment thereof, heretofore or hereafter made pursuant to law. (1) "Redevelopment Project" means the Central City North Redevelopment Project Area. (m) "Redevelopment Project Area" means the project area described and defined in the Redevelopment Plan. (n) "Tax Revenues" means that portion of taxes levied upon taxable property in the Redevelopment Project Area and received hy the Agency on or after September 6, 1973, which is allocated to and paid into a special fund (as in this Resolution created) of the Agency pursuant to Article 6 of Chapter 6 of the Law and Section 16 of Article XVI of the Constitution of the State of California, all as more particularly set forth hereafter in this Resolution. (0) "Treasurer" means the officer who is then performing functions of Treasurer of the Agency. ".... Section 2. Amount, Issuance and Purpose of Notes. Under and pursuant to the Law and under and pursuant to this Resolution, Notes of the Agency in tlw principal amount of two million dollars ($2,000,000) shall be issued by the Agency for the corporate purposes of the Agency aiding in the financing of the Redevelopment Project and for other purposes relab'd thereto as hereinafter provided. and such issue of Notes is hereby created. '- 2 ..... - ,.... ...... .... ...., 4219 [ Section 3. Nature of Notes. The Notes shall be and are special obligations of the Agency and are secured by an irrevocable pledge of, and are payable as to principal, premium, if any, and interest from Tax Revenues and other funds as hereinafter provided. The principal of, premium, if any, and interest on the Notes are not a debt of the City, the State of California or any of its political subdivisions, and neither the City, said State, nor any of its political subdivisions is liable thereon, nor in any event shall said principal, premium, if any, and interest be payable out of any funds or properties other than those of the Agency as in this Resolution set forth. The Notes do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Neither the members of the Agency nor any persons executing the Notes are liable personally on the Notes by reason of their issuance. The Notes shall be and are equally secured by an irrevocable pledge of Tax Revenues and other funds as hereinafter provided, without priority for number, date of sale, date of execution, or date of delivery, except as expressly provided herein. The validity of the Notes is not and shall not be dependent upon the completion of the Rede- velopment Project or upon the performance by anyone of his obligation relative to the Redevelop- ment Project. Nothing in this Resolution shall preclude: (i) the payment of the Notes from the proceeds of refunding notes, refunding bonds or other such ohligations issued pursuant to law; or (ii) the payment of the Notes from any legally available funds of the Agency. Nothing in this Resolution shall prevent the Agency from making advances of its own funds howsoever derived to any of the uses and purposes mentioned in this Resolution. r i I l.... If the Agency shall payor cause to be paid, or shall have made provision to pay upon maturity or upon redemption prior to maturity to the Holders of the Notes, the principal of, premium, if any, and interest to become due thereon, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with a fiscal agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities then the lien of this Resolution, including, without limitation, the pledge of the Tax Revenues, and all other rights granted hereby, shall thereupon cease, terminate and become void and be discharged and satisfied, and the principal of, premium, if any, and interest on the Notes shall no longer be deemed to be outstanding and unpaid. In such event, the Fiscal Agent shall cause an accounting for such period or periods as shall he requested by the Agency to be prepared and filed with the Agency, and the Fiscal Agent, upon the request of the Agency, shall release this Resolution and execute and deliver to the Agency all such instruments as may he desirable to evidence such release, discharge and satisfaction, and the Fiscal Agent shall pay over or deliver to the Agency all moneys or securities held by it pursuant to this Resolution which are not required for the payment or redemption of Notes not theretofore surrendered for such payment or redemption. ,..... l, Section 4. Description of Notes. The Notes shall he issued in the principal amount of two million dollars ($2,000,000) and shall be designated REDEVELOP~1ENT AGENCY OF THE CITY OF SAN BERNARDINO, CENTRAL CITY NORTH REDEVELOP~IENT PROJECT AREA, TAX ALLOCA- TION NEGOTIABLE PRO~fISSORY NOTES. ISSUE OF 1976. The Notes may be initially issued in the form of Bearer Notes in the denomination of five thousand dollars (85,000) each, or in the form of Fully Registered Notes in denominations of five thouand dollars (85,000) each or any whole multiple thereof. The Bearer Notes shall be dated as of October 1, 1976. and shall be numhered from 1 to 400, both inclusive. The Notes shall he term Notes mahlring on October L 1979. '- :3 ~ ....... ..... .... ---- -.J 4220 '-- Section 5. Interest. The Notes shall bear interest at a rate to be hereafter fixed by resolution of the Agency, but not to exceed eight percent (Slit) per annum, payable semiannually on April 1st and October 1st of each year. Each Note shall bear interest until the principal sum thereof has been paid; provided, however, that if funds are available for the payment thereof in full accordance witli the terms of this Resolution, such Note shall then cease to bear interest. Interest coupons attached to the Bearer Notes shall be numbered in consecutive numerical order from 1 upwards in the order of their respective maturities. r- The Fully Registered Notes shall be numbered by the Fiscal Agent as the Fiscal Agent shall determine and shall be dated as of the date of authentication thereof, except that Fully Registered Notes issued upon exchanges and transfers of Fully Registered Notes and upon exchanges of Bearer Notes for Fully Registered Notes shall be dated so that no gain or loss of interest shall result from such exchange or transfer. Each Fully Registered Note shall bear interest from the interest payment date next preceding the date thereof unless it is dated prior to the first interest payment date, in which event it shall bear interest from the date of the Bearer Notes. Interest on Fully Registered Notes shall be paid by the Fiscal Agent (from the appropriate funds) by check or draft mailed to the registered owner at his address as it appears on the register kept by the Fiscal Agent at the close of business on the fifteenth (15th) day preceding the interest payment date. r , t \ -..... Section 6. Place of Payment. The Notes, the interest thereon and any premiums upon the redemption thereof prior to maturity shall be payable in lawful money of the United States of America and (except for interest on Fully Registered Notes which is payable by check or draft as stated above) shall be payable at the Corporate Agency Division of the Bank of America National Tmst and Savings Association, Fiscal Agent of the Agency, in Los Angeles or San Francisco, Califomia, or, at the option of the holder, at the office of any Paying Agent of the Agency in Chicago, Illinois, or New York, New York, or such other office of any other Paying Agent that the Agency may, from time to time, designate. Section 7. Forms of Notes; Temporary Notes. The Bearer Notes and the interest coupons apper- taining thereto shall be negotiable and shall be substantially in the fom) attached hereto as Exhibit A and by this reference incorporated herein, and the Fully Registered Notes shall be substantially in the form attached hereto as Exhibit B and by this reference incorporated herein. Such forms are hereby approved and adopted as the forms of such Notes, and of the coupons and redemption, exchange. registration and assignment provisions pertaining thereto. with necessary or appropriate variations. omissions and insertions, as pennitted or required by this Resolution. r- Any Notes issued pursuant to this Resolution may be initially issued in temporary form exchange- able for definitive Notes when the same are ready for delivery. The temporary Notes may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the Agency, shall be without coupons and may contain such reference to any of the provisions of this Resolution as may be appropriate. Every temporary Note shall be executed by the Agency and he issued by the Fiscal Agent upon the same conditions and in substantially the same fonn and manner as the definitive Fully Registered Notes. If the Agency issues temporary Notes. it will execute and furnish definitive Notes \vithout delay, and, thereupon, the temporary Notes may be surrendered for cancellation at the Bank of America National Tmst and Savings Association, Fiscal Agent for the Agency, in Los Angeles, California, and the Fiscal Agent shall deliver in exchange for such temporary Notes an equal aggregate principal amount of definitive Bearer Notes or definitive Fully Registered Notes without coupons of authorized denominations of this same issue. Until so exchanged, the temporary Notes shall he entitled to the same benefits under this Resolution as definitive ~ oks of this same issue delivered hereunder. .... 4 IIIIIIIlIII ...... IlIIllIII ... ~ - 4221 ..... Section 8. Execution of Notes. The Notes shall be siglled on behalf of the Agency by facsimile signature of its Chairman and by manual signahue of its Secretary, and the seal of the Agency shall be impressed, imprinted or reproduced thereon. The interest coupons on the Notes shall be signed by facsimile signature of the Secretary. The foregoing officers are hereby authorized and direc.1:ed to sign the Notes and coupons in acc.'Ordance with this Section. If any Agency member or officer whose manual or facsimile signature appears on the Notes or coupons ceases to be such member or officer before delivery of the Notes, such signature is as effective as if such officer had remained in office. r- I..- Section 9. Types of Notes, Registration and Exchange. To facilitate registration of the Notes, two forms of Notes are provided for herein: (i) those which shall be initially issued and which are in negotiable form, payable to bearer with negotiable coupons (herein sometimes referred to as "Bearer Notes"), and (ii) those which are issued to facilitate registration and so are issued as non-negotiable Fully Registered Notes payable to the registered owner (herein sometimes referred to as "Fully Registered Notes"). The Bearer Notes are not registrable by endorsement, but may be exchanged for Fully Registered Notes as provided herein. A Bearer Note or Bearer Notes may be registered by ex- changing the same for a Fully Registered Note or Fully Registered Notes. A Bearer Note or Bearer Notes and a Fully Registered Note or Fully Registered Notes may be exchanged for a Fully Registered Note or Fully Registered Notes. A Fully Registered Note may be exchanged in whole for a Bearer Note or Bearer Notes or in part for such Bearer Note or Bearer Notes and the balance for a Fully Registered Note or Fully Registered Notes. Transfer of ownership of a Fully Registered Note or Fully Registered Notes shall be made by exchanging the same for a new Fully Registered Note or Fully Registered Notes. All of such exchanges shall be made in such manner and upon such reasonable terms and conditions as may from time to time he determined and prescribed by the Agency; provided, how- ever, no such exchange shall be made between the fifteenth (15th) day preceding any interest payment date and such interest payment date. Such exchanges shall be free of any costs or charges to the person, firm or corporation requesting such exchange, except for any tax or govemmental charge that may be imposed in connection therewith. Each Bearer Note issued pursuant to this Resolution shall be of the denomination of five thousand dollars ($5,000). Each Fully Registered Note issued pursuant to this Resolution shall be of a denomination which is five thousand dollars ($5,000) or a whole multiple thereof, shall be of the same issue, and may he of one or more interest rates. ,....... Section 10. Note Register. The Fiscal Agent shall keep or cause to be kept at its principal office in Los Angeles, Califomia, sufficient books for the registration and transfer of the Notes, which shall at all times be open to inspection hy the Agency; and, upon presentation for such purpose, the Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said register, the Notes as hereinbefore provided. ".... Section 11. Redemption of Notes Prior to Maturity. A. Terms of Redemption. The outstanding j\otes, or an)' of them, may be called before maturity and redeemed, at the option of the Agency,. from any source of funds, on April 1, 1977, or on any interest payment date thereafter prior to maturity. If less than all of the Notes outstanding are to he redeemed at anyone time, the Notes to be redeemed shall be detemlined by lot. The interest payment date on which Notes are to be presented for redemptioll is herein sometimes referred to as the "redemption date". Notes called for redemption shall he redeemed at a redemption price for each redeemed Note equal to the principal amount thereof. plus accrued interest to the redemption date and the following premium (percentage of principal amollnt) if redeemed on the following redemption dates: ..... .5 --- - ... - IIIIlIIIIII - 4222 [ PHE\lIU\I~ AND HEDE\fPTION DATES Heuempliol1 Dat,. Premilllll April L 1 ~)77 1 ( , October I, 19Ti 1 ( ; April L 1971-; %(.; October 1, 197H %(7, April L 1979 Ih r;; ........ B. Call for Redemption. The Agency may (and, if required by Section 15 hereof, shall) by resolution direct the call and redemption prior to maturity of Notes (which are by their terms then callable for redemption) b)' the Fiscal Agent in such amounts as funds are available to redeem at least twenty-five thousand dollars ($2.5,000) thereof and shall give notice to the Fiscal Agent of such redemption at least sixty (60) days prior to the redemption date. C. Notice of Redemption. Notice of redemption prior to maturity (except as provided below) shall be given by publication at least once prior to the redemption date in a financial newspaper or journal, printed in the English language and customarily published on each business day, of general circulation in New York, New York, such publication to be not less than thirty (30) nor more than sixty (60) days before such redemption date. If any Note called for redemption is a Fully Registered Note, notice of redemption thereof shall also be mailed, not less than thirty (30) nor more than sixty (60) days prior to the redemption date. to the registered owner of each such Note. but neither failure to mail such notice nor any defect in any notice so mailed shall affect the sufficiency of the proceedings for the redemption of any of the Notes. The notice of redemption shall: (i) state the redemption date; (ii) state the redemption price; (iii) state the numbers of the Notes to be redeemed; provided, however, that \vhem'ver any call includes all of the outstanding Notes, the numbers of the Notes need not he stated; (iv) require that Bearer Notes be surrendered with all interest coupons maturing subsequent to the redemption date at the place or places of re- demption; (v) state. as to any Fully Registered Notes redeemed in part only. the registered note numhers and the principal portion thereof to be redeemed; and (vi) state that interest on the principal portion of the Notes so designated for redemption shall c.-ease to accrue from and after such redemption date and that on said date there shall hecome due and payable on each of such Notes the principal amount thereof to be redeemed, interest accrued thereon to the redemption date and the premium thereon, if any (such premium to be specified). If, at the time of giving notic.-e of redemption, no Notes are outstanding except Fully Registered Notes, puh]ication of such notice shall be deemed to have been waived if such notice shall have been mailed hy registered or certified mail to each registered owner of such Notes at his address as it appears on the registration hooks or at snch address as he may han> filed with the Fiscal Agent for that purpose. The actual receipt hy the Holder of any Note of notice of such redemption shall not be a condition precedent to redemption. and failure to receive such notice shall not affect the validity of the pro- ceedings for the redemption of such Notes or the cessation of interest on the redemption date. Notice of redemption of Notes shall be given by the Fiscal Agent for and on behalf of the Agency at the expense of the Agency. A (-ertificate hy the Fiscal A~ent that Ilotice of redemption has heen givell as herein provided shall he conclusive as against all parties. and no Noteholder whose Hearer Note or Fully Registered Note is called for redemption may ohject thereto or ohjeet to the cessatioll of interest Oil the redemp- tioll date fixed hy any claim or sho\\'ill~ that he failed to actually recein' such Ilotice of call and redemption. ,...... ,- D. Redemptioll Flllld. Priur to the publicatioll as above required. tlH' Fiscal Agent shall estah- lish, maintain and hold ill trust a separate fund which is hereby created and called the "Redevelopment ..... fj ...... - ..... - ~ .....", 4223 ,... L Agency of the City of San Bemardino, Central City I\orth Redevelopment Project Area, Tax Alloca- tion Negotiable Promissory Notes, Issue of 1976, Redemption Fund" (herein sometimes referred to a, the "Redemption Fund"); and there shall be set aside in the Redemption Fund moneys for the purpo~(' and sufficient to redeem, at the premiums, if any, payable as provided in this Resolution, the I\ote, designated in such notice of redemption. Said moneys shall be set aside in said Fund solely for that purpose and shall be applied on or after the redemption date to the payment of principal and premium, if any, of the Notes to be redeemed upon presentation and surrender of such Notes and, except as to Fully Registered Notes, all interest coupons maturing after the redemption date. Any interest coupon due on or prior to the redemption date shall be paid from the Special Fund upon presentation and surrender thereof. Any interest due on or prior to the redemption date upon Fully Registered Kotes shall be paid from the Special Fund. Each Bearer l\'ote presented must have attached thereto or presented therewith all interest coupons maturing after the redemption dak. i I ..... E. Partial Redemption of Fully Registered Notes. Upon surrender of any Fully Registered Note redeemed in part only, the Agency shall execute and the Fiscal Agent shall authenticate and deliver to the registered owner thereof, at the expense of the Agency, a new Note or Notes of authorized denominations equal in aggregate principal amount to the unredeemed portion of the Fully Registered Note surrendered and of the same interest rate, which new Note or Notes may be, at the option of the registered owner, either a Bearer Note or Bearer Notes with all matured coupons appertaining thereto or a Fully Registered Note or Fully Registered Notes or in part a Bearer l\'ote or Bearer Notes and the balance a Fully Registered Note or Fully Registered Notes. The registered owner of any Fully Registered Note may, in lieu of surrendering such Note for a new Note, endorse on the reverse of such Fully Registered Note a notation of such partial redemption, in such form as may be satisfactory to the Agency and the Fiscal Agent and under such conditions as the Fiscal Agent may approve. Such partial redemption shall be valid upon payment of the amount thereby required to be paid to such registered owner, and the Agency and the Fiscal Agent shall be released and discharged from all liability to the extent of such payment, irrespective of whether such endorse- ment shall or shall not have been made upon the reverse of such Fully Registered Note by such registered owner and irrespective of any error or omission in such endorsement. ".... F. Effect of Redemption. Notice of Redemption having been duly given as aforesaid, and moneys for payment of the principal of, premium, if any, and interest payable upon redemption of the Notes being set aside in the Redemption Fund, the Notes, or parts thereof, as the case may be, so called for redemption shall, on the redemption date, become due and payable at the redemption price specified in such notice. interest on the Notes, or parts thereof, as the case may be, so called for redemption shall cease to accrue, the COUpOIlS for interest thereon maturing subsequent to the redemption date shall be void, and such Notes, or parts thereof, as the case may be, shall cease to be entitled to any lien, benefit or seem-ity under this Resolution, and the Holders of the Notes shall have no rights in respect thereof except to receive payment of the redemption price thereof, and, in the case of partial redemption of Fully Hegistered i'\otes. to also receive a lIew I'\ote or Notes for the unredeemed balance as aforesaid. All unpaid interest installments represented by coupons which shall have matured on or prior to the date of redemption designated ill such notice shall continue to be payahle to the respective Holders thereof but without interest thereon. All Notes, or parts thereof, as the case may be, redeemed pursuant to the provisions of this Section and the appurtenant coupons, if any, shall be cancelled upon surrender thereof and delivered to, or upon the order of, the Agency. ",... Section 12. Funds. There is hereby created with the Treasurer a special trust fund called the "Redevelopment Agency of the City of San Bernardino, Central City r\orth Redevelopment Project Area, Tax Allocation I'\egotiable Promissory Notes. Issue of HJ/6, Rede\'elopment Fund" (herein '- - I ...... - .... -- ..... -- 4224 "..,. ~ \- sometimes referred to as the "Redevelopment Fund"). There is hereby created with the Fiscal Agcnt a special trust fund called the "Redevelopment Agency of the City of San Bemardino, Central City North Redevelopment Project Area, Tax Allocation Negotiable Promissory Notes, Issue of 1976, Speeial Fund" (herein sometimes referred to as the "Special Fund"). So long as any of the Notes herein authorized, or any interest thereoll, remain unpaid, the moneys in the foregoing Funds shall be used for no purpose other than those required or permitted by this Resolution, any resolution providing for the issuance of Parity Notes and the Law. [ Section 13. Sale of Notes; Disposition of Note Proceeds; Redevelopment Fund, The Agency may provide by resolution for the sale of the Notes in the manner provided by the Law. The proceeds from the sale of the Notes shall be placed in the Redevelopment Fund. The moneys set aside and placed in the Redevelopment Fund shall remain therein until from time to time expended solely for the purpose of financing a portion of the cost of the Redevelopment Project and other costs related thereto, and also included in such costs: (a) The payment, in any year during which the Agency owns property in the Redevelopment Project Area, to any city, county, city and county, district or other public corporation which would have levied a tax upon such property had it not been exempt, an amount of money in lieu of taxes, as authorized by Section 33401 of the Law; (b) The cost of any lawful purpose in connection with the Redevelopment Project, including, without limitation, Section 33445 of the Law; and (c) The necessary expenses in connection with the issuance and sale of the Notes and fees of the Fiscal Agent and Paying Agents. If any sum remains in the Redevelopment Fund after the full accomplishment of the objects and purposes for which the Notes were issued, said sum shall be transferred to the Special Fund. Section 14. Tax Revenues, As provided in the Redevelopment Plan pursuant to Article 6 of Chapter 6 of the Law and Section 16 of Article XVI of the Constitution of the State of California, taxes levied upon taxable property in the Redevelopment Project Area each year by or for the benefit of the State of Califomia, any city, county, city and county. district. or other public corporation (herein sometimes called "taxing agencies") after the effective date of the Ordinance approving the Redevelopment Plan (being Ordinance No. 3366 of the City of San Bernardino. which Ordinance became effective OIl September 6, 1973) shall be divided as follows: (a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the Redevelopment Project Area as showll upon the assessment roll used in connection with the taxation of such property by such taxing agency last equalized prior to September 6, 1973 (being tbe eHective date of the Ordinance above referred to), shall be allo- cated to and when collected shall be paid into the funds of the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid; and (b) That portion of said levied taxes each year ill excess of such amount shall he allocated to and when collected shall be paid into the Spl'cial Fund of the Agency. r y The foregoing prm'isions of this Section are a portion of the provisions of said Article 6 as applied to the Notes and shall be interpreted in accordancl' with said Artide 6, and the further provisions and definitions contained in said Artide 6 are Iwreby incorporated herein by referenc'e and shall apply. ..... ,.... ~ - .... ....... -- ..... 4225 [ The Tax Revellues (except that POrtiOIl which the Agency may use pursuant to Section 1.5 hereof for any purpose authorized in said Article 6) are herehy allocated and pledged in their entirety to the payment of the principal of, premium, if any, and interest on the Notes (including all Parity Notes, if any) as in this Resolution provided, and until all of the Notes (including all Parity Note, if any), and all interest thereon, have been paid (or until moneys for that purpose have been irrevocably set aside) the Tax Revenues (suhject to the exception set forth above) shall be applied solely to the payment of the Notes (including all Parity Notes, if any) and the interest thereon as in this Resolution provided. Such allocation and pledge is for the exclusive henefit of the Holders of the Notes and shall he irrevocable. [ Section 15. Special Fund. All Tax Revenues shall he deposited in the Special Fund. At the maturity of any Notes and Parity Notes, if any, and after all interest then due on the Notes and Parity Notes then outstanding has heen paid or provided for, moneys in the Special Fund shall be applied to the payment of the principal of any of such Notes and Parity Notes. The Fiscal Agent, on March 1st and September 1st of each year, commencing March 1, 1977, shall ascertain the balance in the Special Fund, and that portion of said halance which is in excess of the amount of interest to become due on the then outstanding Notes and Parity Notes, if any, on the next two (2) interest payment dates: (i) may he used and applied hy, and at the option of, the Agency to purchase outstanding Notes and Parity Notes in the manner hereinafter provided, and any remainder of said moneys so available to purchase Notes and Parity Notes hut which is not used to purchase Notes and Parity Notes may (and, if sufficient to redeem at least twenty-five thousand dollars ($25,000) prin- cipal amount of outstanding Notes and Parity Notes, shall) be used and applied by the Fiscal Agent, if any of the Notes and Parity Notes are then callable, to call and redeem the largest principal amount of outstanding Notes and Parity Notes which can be called (including the payment of the applicable premium thereon) with the moneys available therefor; or (ii) may, at the option of the Agency, be transferred to the Redevelopment Fund. Any such call and redemption shall be made in accordance with the provisions of Section 11 hereof by transferring the above described availahle moneys to the Redemption Fund. Purchases of outstanding Notes may be made by the Fiscal Agent at public or private sale as, when and at such prices as the Fiscal Agent may in its discretion detennine but only at prices (including brokerage or other expenses) not more than principal plus accrued interest plus the premium applicable at the next following call date according to the schedules applicable thereto, and any accrued interest payable upon the purchase of Notes may he paid from the amounts reserved in the Special Fund for the payment of interest on the next following interest date. Any Notes so purchased together with all unpaid interest coupons appertaining thereto shall be cancelled by the Fiscal Agent forthwith and surrendered to the Agency and shall not he reissued. The previous provisions of this Section for the determination on !vlarch 1st and September 1st of each year of the amount of moneys in the Special Fund available for purchase or redemption of Notes or transfer to the Redevelopment Fund shall not prevent the Fiscal Agent from purchasing Notes or making such transfers with moneys in the Special Fund in the manner hereinbefore provided at any other time or times during any year but any such purchases or transfers (except for accrued interest) shall he made only with the portion of the balance in said Fund which is in excess of the amount of interest to become due on the then outstanding Notes and Parity Notes, if any, on the next two (2) interest payment dates. r + '-- Section 16. Deposit and Investment of Moneys in Funds. Subject to the provisions of Covenant 9 of Section 18 hereof, all moneys held by the Agency in the Redevelopment Fund and by the Fiscal Agent in the Special Fund, except such moneys which are at the time invested, shall be held in time or demand deposits in any bank or trust company authorized to accept deposits of public ~) IIIlI\ --' .., Cj -" ,.., ...,." 4226 r I r ..... funds (including the banking department of the Fiscal Agent) and shall be secured at all times by bonds or other obligations which are authorized by law as security for public deposits, of a market value at least ec!ua] to the amount required by law. Moneys in the Redevelopment Fund may from time to time be invested by the Agency. and moneys in the Special Fund may, and upon written request of the Agency shall, be invested hy the Fisca] Agent as provided by the Law, subject to the following restrictions: (a) t-.loneys in the Redevelopment Fund shall be invested only in obligations which wiII by their terms mature not later than six (6) months after the date the Agency estimates the moneys represented by the particular investment wiII be needed for withdrawal from such Fund. (b) Moneys in the Special Fund shall he invested only in obligations which will by their terms mature on such dates as to insure that before each interest payment date there will be in such Fund, from matured obligations and other moneys already in such Fund, cash equal to the interest and principal payable on such date. ~ i Obligations purchased as an investment of moneys in either of said Funds shall be deemed at all times to be a part of such Fund and the interest accruing thereon and any gain realized from such investment shall be credited to such Fund and any loss resulting from any such authorized investment shall be charged to such Fund without liability to the Agency or the members and officers thereof or to the Fiscal Agent. The Agency or the Fisca] Agent, as the case may be, shall sell at the best price obtainable or present for redemption any obligation so purchased whenever it shall be necessary to do so in order to provide moneys to meet any payment or transfer from such Fund as required by this Resolution. For the purpose of detennining at any given time the balance in any such Fund, any such investment constituting a part of such Fund shall be valued at the then estimated or appraised market value of such investment. '! \.... Section 17. Issuance of Parity Notes and Bonds. A. If at any time the Agency determines that it wiII not have sufficient moneys available from the sale of the Notes and other sources to pay the costs of the Redeve]opment Project, the Agency may provide for the issuance of and sell Parity Notes in such principal amount as it estimates will be needed for such purpose. The issuance and sale of any Parity Notes shall be subject to the following conditions precedent: (1) The Agency shall be in compliance with all covenants set fmth in this Reso]ution. (2) The Parity Notes shall be 011 such terms and conditions as may be set forth in a supple- mental resolution which supplemental resolution shall provide for the deposit of a portion of the Parity Note proceeds in the Special Fund in an amount sufficient to pay interest on the Parity Notes to maturity. (3) The issuance of such Parity Notes shall have been recommended by an opinion of an Independent Financial Consultant. B. The Agency shall use its best efforts to sell its tax allocation hands in such time prior to the maturity date of the Notes, so as to pay t]w Notes at maturity. C. Should the Agency's efforts to sell such bonds he unsuccessful, a new issue of tax allocation negotiable promissory notes shall be issued and sold to retire the Noks. ,.... D. Nothing in this Resolution shall preclude: (i) the payment of the Notes from the proceeds of refunding notes, refunding bonds or other such obligations issued pursuant to law; or (ii) the pay- ment of the Notes from any ]egally availab]e funds of the Agency. Nothing in this Reso]ution .... 10 ~ ....... llIIIll - ..... - 4227 ".... shall prevent the Agency from making advances of its own funds howsoever derived to any of the uses and purposes mentioned in this Resolution. t , "- Section 18. Covenants of the Agency. As long as the Notes are outstanding and unpaid, the Agency shall (through its proper members, officers, agents or employees) faithfully perform and abide hy all of the covenants, undertakings and provisions contained in this Resolution or in any Note issued hereunder, including the following Covenants and agreements for the benefit of the Note- holders which are necessary, convenient and desirable to secure the Notes and will tend to make them more marketable; provided, however, that said Covenants do not require the Agency to expend any funds other than the Tax Revenues: Covenant 1. Complete Redevelopment Project; Amendment to Redevelopment Plan. The Agency covenants and agrees that it shall diligently carry out and continue to completion, with all practicable dispatch, the Redevelopment Project in accordance with its duty so to do under and in accordance with the Law and the Redevelopment Plan and in a sound and economical manner. The Redevelop- ment Plan may be further amended, but no such further amendment shall be made which would substantially impair the security of the Notes or the rights of the Noteholders, as shown by a certificate or opinion of an Independent Financial Consultant. Covenant 2. Use of Proceeds of Notes; Management and Operation of Properties. The Agency covenants and agrees that the proceeds of the sale of the Notes shall be deposited and used as pro- vided in this Resolution and that the Agency shall manage and operate all properties owned by it and comprising any part of the Redevelopment Project in a sound and businesslike manner. ",- I i Coverlant 3. No Priority. The Agency covenants and agrees that it shall not issue any obliga- tions payable, principal or interest, from the Tax Revenues which have, or purport to have, any lien upon the Tax Revenues prior or superior to the lien of the Notes herein authorized and the interest coupons appertaining thereto. Except as permitted in Section 17 hereof, the Agency shall not issue any obligations payable, principal or interest, from the Tax Revenues, which have, or purport to have, any lien upon the Tax Revenues on a parity with the Notes herein authorized and the interest coupons appertaining thereto; provided, however, that nothing in this Resolution shall prevent the Agency (i) from issuing and selling pursuant to law refunding notes, refunding bonds or other such obligations payable from and having any lawful lien upon the Tax Revenues, if such refunding notes, refunding bonds or other such obligations are issued and are sufficient for the purpose of refunding all of the Notes authorized hy this Resolution and then outstanding, or (ii) from issuing and selling notes, honds or other obligations which have, or purport to have, auy lien upon the Tax Revenues which in each year is subordinate to the Notes herein authorized and the interest coupons appertaining thereto, or (iii) from issuing and selling notes, hands or other obligations which are payable in whole or in part from sources other than the Tax Revenues. I ! -- Covenant 4. Punctual Payment. The Agency covenants and agrees that it shall duly and punc- tually payor cause to he paid the pl;ncipal of and interest on each of the Notes issued hereunder on the date, at the place and in the manner provided in said Notes and the interest coupons appertain- ing thereto. ".-- Covenant 5. Payment of Taxes and Other Charges. The Agency covenants and agrees that it shall from time to time pay and discharge, or cause to he paid and discharged, all payments in lieu of taxes, service charges, assessments or other governmental charges which may lawfully he imposed upon the Agency or any of the properties then owned by it in the Redevelopment Project Area, or upon the revenues and income therefrom and shall pay all lawful claims for labor, material and supplies which if unpaid mi~ht become a lien or char~e upon any of said properties, revenues or iIH.-'ome or which might impair the security of the Notes or the use of Tax Revenues or other legally \.-. II --- ....... ..... ......, .... - 4228 "... ~ ...... available funds to pay the principal of and interest thereon, all to the end that the priority alld security of the Notes shall he preserved; provided that nothing in this Covenant shall require tIll Agency to make any such payment so long as the Agency in good faith shall contest the validit\ thereof. Covenant 6. Books and Accounts; Financial Statements. The Agell~y covenants and agrees that it shall at all times keep, or cause to be kept, proper and current books and accounts (separate from all other records and accounts) in which complete and accurate entries shall he made of all transactions relating to the Redevelopment Project and the Tax Revenues and other funds relating to the Redevelopment Project, and shall prepare within one hundred twenty (120) days after the dose of each Fiscal Year a complete financial statement or statements for such year in reasonable detail covering such Redevelopment Project, Tax Revenues and other funds, certified by a certified public accountant or firm of certified public accountants selected by the Agency, and shall fumish a copy of such statement or statements to the original purchaser of the Notes or to any Noteholder upon written request. Covenant 7. Eminent Domain Proceeds. The Agency covenants and agrees that if all or any part of the Redevelopment Project Area should be taken from it by eminent domain proceedings or other proceedings authorized by law, for any public or other use under which the property will be tax exempt, the net proceeds realized by the Agency therefrom shall be deposited in the Special Fund and used and applied for the purpose of paying principal of and interest on the Notes as in this Resolution provided. 1 L Covenant 8. Disposition of Property. The Agency covenants and agrees that it shall not dispose of property in the Redevelopment Project Area (except property shown in the Redevelopment Plan in effect on the date this Resolution is adopted as planned for public use, or property to be used for public streets, public off-street parking, sewage facilities, parks, easements or rights of way for public utilities, or other similar uses) to public bodies or other persons or entities whose property is tax exempt, if, in the opinion of an Independent Financial Consultant, as a result of such disposition, the security of the Notes or the rights of Noteholders would be substantially impaired. r- ""... Covenant 9. Protection of Security and Rights of Noteholders; No Arbitrage. The Agency covenants and agrees to preserve and protect the security of the Notes and the rights of the Noteholders and defend their rights under all claims and demands of all persons. The Agency covenants and agrees to contest by court action or otherwise any assertion by the United States of America or any department or agency thereof that the interest received by the Noteholders is taxable under federal income tax laws. The Agency covenants and agrees to take no action which, in the opinion of counsel, would result in the interest received by the Noteholders becoming taxable under federal income tax laws. Any opinion of such counsel may be based upon, insofar as it relates to factual matters. information which is in the possession of the Agency as shown by a certificate or opinion of, or representation by, an officer or officers of the Agellcy, unless such counsel knows, or in the exercise of reasonable care should have known, that the certificate or opinion or representation with respect to the matters upon which his opinion may be based, as aforesaid, is erroneous. As used herein "opinion of counsel" means a written opinion of an attonll'Y or firm of attorneys of favorable reputation in the field of municipal bond hm", The Agency hereby covenants to the purchasers of the Notes that it will make no use of the proceeds of the Notes at any time during the teml thereof which. if such use had been reasonably expected at the date the Notes are issued. would have caused such Notes to be "arbitrage bonds" within the meaning of Section 103(d) of the United States Internal Revenue Code of 19.54, as amended, and applicable regulations adopted thereunder hy the Internal Revenue Service, and the Agency hereby assumes the obligation to comply with such Section 103 (d) and such regulations throughout the term of the Notes. '- 12 """ - lIIIlIII ..... ,...., ...... 4229 r L Section 19. Taxation of Leased Property. \Vhencver any property in the Redevelopment Projt.ct Area ha~ been redeveloped and thereafter is leased by the Agency to any person or persons (other thaI I a public agency) or whenever the Agency leases real property in the Redevelopment Project Area to any person or persons (other than a public agency) for redevelopment, the property shall be assessed and taxed in the same manner as privately owned property, as required by Section 33673 of the Law. and the lease or contract shall provide: (i) that the lessee shall pay taxes upon the assessed value of the entire property and not merely upon the assessed value of his or its leasehold interest, and (ii) that if for any reason the taxes levied upon such property in any year during the tenn of the lease are less than the taxes which would have been levied if the entire property had been assessed and taxed in the same manner as privately owned property, the lessee shall pay such diHerence to the Agency within thirty (30) days after the taxes for such year become payable to the taxing agencies and in no event later than the delinquency date of such taxes established by law. All such payments shall be treated as Tax Revenues, and when received by the Agency shall be deposited in the Special Fund. l... Section 20. Fiscal Agent and Paying Agents. The Agency hereby appoints the Bank of America National Trust and Savings Association as Fiscal Agent to act as the agent and depositary of the Agency for the purpose of receiving Tax Revenues and other funds as provided in this Resolution, to hold, allocate, use and apply such Tax Revenues and other funds as provided in this Resolution, and to perform such other duties and powers of the Fiscal Agent as are prescribed in this Resolution. The Agency may remove the Fiscal Agent initially appointed or any successor thereto and in such case shall forthwith appoint a successor thereto, but any successor shall be a bank or trust company doing business and having an office in Los Angeles, California, having a combined capital and surplus of at least fifty million dollars ($50,000,000). The Fiscal Agent so appointed, or any substituted Fiscal Agent, may at any time resign as such by writing filed with the Agency, in which event the Agency shall forthwith appoint a substitute Fiscal Agent and the resignation shall become eHective upon such appointment. In the evt-'nt that the Fiscal Agent or any successor bt-'comes incapable of acting as such, the Agency shall forthwith appoint a substitute Fiscal Agt-'nt. Any bank or trust company into which the Fiscal Agent may be n1t-'rged or with which it may be consolidated shall become the Fiscal Agent without action of the ~gency. A Fiscal Agent may become the owner of any of the Notes authorized by this Resolution or any of the coupons appertaining thereto with the same rights it would have had if it were not the Fiscal Agt-'nt. The Fiscal Agent shall have no duty or obligation whatsoever to enforce the collection of or to exercise diligence ill the enforcement of the collection of funds assigned to it hereunder. or as to tl1t-' correctness of any amounts received. but its liability shall he limited to the proper accounting for such funds as it shall achlally receive. The recitals of fact and all promises, covenants and agreements herein and in the Notes shall be taken as statements, promises, covenants and agreements of the Agency, and the Fiscal Agent assumes no responsibility for the correctness of the same, makes no representations as to the validity or sufficiency of this Resolution or of the Notes or coupons, and shall incur no responsibility in respect thereof other than in eonnection with the duties or obligations herein or in the Notes assigned to or imposed upon the Fiscal Agent. The Fiscal Agent shall not be liahle in connection with the per- formance of its duties hereunder, except for its own negligence or default. The Agency shall, during the life of the Notes, provide for Paying Agents, at least one in Chicago. Illinois, and at least one in New York, Nt'w York. at the office of which the Notes and coupons are pay- able at the option of the Holder. ,..... r- I \- Section 21. Lost, Stolen, Destroyed or Mutilated Notes. In the event that any Note or any interest coupon appertaining thereto is lost, stolen, destroyt'd or mutilated. the Agency shall cause to be issued a new Note or coupon. similar to the original. to replace the same in such manner and 13 ~ .....,,; ... - .., ~ 4230 ..... upon such reasonable tenns amI conditions (including the payment of costs and the posting of a a surety bond if the Agency deems such surety hond necessary) as may from time to time be deter- mined and prescribed by resolution. The Agency may authorize such new Note or coupon or coupons to he signed and authenticated in such manner as it determines in such resolution. ".. Section 22. Cancellation of Notes. All Notes and coupons surrendered to the Fiscal Agent or any Paying Agent for payment shall upon payment therefor be cancelled immediately and forthwith trans- mitted to the Treasurer. All of the cancelled Notes and interest coupons shall remain in the custody of the Treasurer until destroyed pursuant to authorization hy the Agency. '- Sedion 23. Amendments. This resolution, and the rights and ohligations of the Agency and of the Holders of the Notes and coupons issued hereunder, may be modified or amended at any time by supple- mental resolution adopted by the Agency; (i) without the consent of Noteholders, if such modification or amendment is for the purpose of curing any ambiguities, defects or inconsistent provisions in this Resolution or to insert such provisions clarifying matters or questions arising under this Resolution as are necessary and desirable to accomplish the same, provided that such modifications or amendments do not adversely affect the rights of the Noteholders, and/or (ii) with the consent of Noteholders holding sixty percent (60% ) in aggregate principal amount of the outstanding Notes, exclusive of Notes, if any, owned by theAgency or the City, and obtained as hereinafter set forth; provided, however, that no such modification or amendment shall, without the express consent of the Holder or registered owner of the Note affeded, reduce the principal amount of any Note, reduce the interest rate payable thereon, extend its maturity or the times for paying interest thereon or change the monetary medium in which principal and interest are payahle, or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment so consented to shall be binding upon the Holders of all of the Notes and interest coupons, whether such coupons he attached to Notes or detached therefrom, and shall not be deemed an infringement of any of the provisions of this Resolution or of the Law, whatever the charader of such act may be, and may be done and perfonned as fully and freely as if expressly pemlitted by the terms of this Resolution, and, after such consent relating to such specified matters has been given, no Noteholder or holder of any interest coupon, whether attached to a Note or detached therefrom, shall have any right or interest to object to such action or in any manner to question the propriety thereof or to enjoin or restrain the Agency or any officer thereof from taking any action pursuant thereto. r- \ A. Calling Note1101ders' Mcetil1f!,. If the Agency shall desire to ohtain any such consent, it shall duly adopt a resolution calling a meeting of Noteholders for the purpose of considering the action the consent to which is desired. "... B. Notice of Meetil1g. Notice specifying the purpose, place. date and hour of such meeting shall be published once in a financial newspaper or journal of national circulation puhlished in New York, New York, such puhlication to be not less than sixty (60) days and not more than ninety (90) days prior to the date fixed for the meeting. Such notice shall set forth the nature of the proposed action consent to which is desired. If any of the Notes shall be so registered as to be payable otherwise than to bearer, the Agency shall, on or before the puhlication of such notice, cause to be mailed a similar notice, postage prepaid. to the respective registered owners thereof at the address appearing on the Note registry books in the possession of the Fiscal Agent. The place, date and hour of holding such meeting and the date or dates of publishing and mailing such notice shall be determined by the Agency in its discretion. The actual receipt by any Noteholder of Notice of any snch meeting shall not be a condition precedent to the holding of such meeting, and failure to receh'c such notice shall not affect the validity of the proceedings thereat. A certificate by the Secretary of the Agency, approved by resolution of ...... 14 ~ - IIIlIII - ...... ........ 4231 ,.... the Agency, that the meeting has been called and that notice thereof has been given as hen-ill provided shall be conclusive as against all parties and it shall not be open to any Noteholder to show that he failed to receive actual notice of such meeting. '- C. Volin/!, Qualifications. Noteholders may, prior to such meeting, deliver their Notes to the Fiscal Agent and shall thereupon be entitled to receive an appropriate receipt for the Notes so deposited, calling for the redelivery of such Notes at any time after the meeting. The Fiscal Agent shall prepare and deliver to the chainnan of the meeting a list of the names and addresses of the registered owners of Notes, with a statement of the maturities and serial numbers of the Notes held and deposited by each of such Noteholders, and no Noteholders shall be entitled to vote at such meeting unless their names appear upon such list or unless they shall present their Notes at the meeting or a certificate of deposit thereof, satisfactory to the Agency, executed by a bank or trust company. No Noteholder shall be permitted to vote with respect to a larger aggregate principal amount of Notes than is set against such Noteholder's name on such list, unless he shall produce the Note or Notes upon which he desires to vote, or a certificate of deposit thereof as above provided. D. Issuer-Owned Notes. The Agency covenants that it shall present at the meeting a certificate, signed and verified by one member thereof and by the Treasurer, stating the maturities and serial numbers of all Notes owned by, or held for account of, the Agency or the City, directly or indirectly. No person shall be pennitted at the meeting to vote or consent with respect to any Note appearing upon such certificate, or any Note which it shall be established at or prior to the meeting is owned by the Agency or the City, directly or indirectly, and no such Note (in this Resolution sometimes referred to as "issuer-owned Note") shall be counted in determining whether a quorum is present at the meeting. "..... E. Quorum and Procedure. A representation of at least sixty percent (60o/c) in aggregate principal amount of the Notes then o~tstanding (exclusive of issuer-owned Notes, if any) shall be necessary to constitute a quorum at any meeting of Noteholders, but less than a quorum may adjourn the meeting from time to time and the meeting may be held as so adjourned without further notice. whether such adjoumment shall have been had by a quorum or by less than a quorum. The Agency shall, by an instrument in writing, appoint a temporary chairman of the meeting, and the meeting shall be organized by the election of a permanent chainnan and secretary. At any meeting, each Noteholder shall be entitled to one vote for every five thousand dollars (85,000) principal amount of Notes with respect to which he shall be entitled to vote as aforesaid, and such vote may be given in person or by proxy duly appointed by an instrument in writing presented at the meeting. The Agency, by its duly authorized representative. may attend any meeting of the Noteholders. but shall not be required to do so. F. Vote Required. At any such meeting held as aforesaid, there shall be submitted for the consideration and action of the Noteholders a statement of the proposed action consent to which is desired, and if such action shall be consented to and approved by Noteholders holding at least sixty percent (60;-; ) in aggregate amount of the Notes then outstanding (exclusive of issuer-owned Notes) the chainnan and secretary of the meeting shall so certify in writing to the Agency, and such certificate shall constitute complete evidencp of consent of Noteholders under the provisions of this Resolution. A celtificate signed and verifipd by the chairman and the secretary of any such meeting shall be conclusive evidence and the only competent evidence of mattprs stated in such certificate relating to proceedings taken at such meeting. ~ r Section 24. Proceedings Constitute Contract. The provisions of this Resolution. of the resolutions providing for the sale of the Notes and dwarding the Notes and fixing the interest rate thereon, and of any other resolution supplementing or amending this Resolution, shall constitute a contract between the Agency and the Noteholders and the provisions thereof shall he enforceable by any Noteholder for the equal benefit and protection of all Noteholders similarly situated by mandamus, accounting, '-- 15 ~ - ... """"'" ~ ......, 4232 r i ~ mandatory injunction or any other suit, action or proceeding at law or in equity that is now or lIla\ hereafter he authorized under the laws of the State of California in any court of competent jurisdictioli. Said contract is made under and is to be constmed in accordance with the laws of the State of California No remedy conferred hereby upon any 1\'oteholder is intended to be exclusive of any other remedy. but each such remedy is cumulative and in addition to every other remedy and may be exercised with- out exhausting and without regard to any otber remedy conferred hy the Law or any other law of the State of California. 1\'0 waiver of any default or breach of duty or contract hy any Noteholder shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies on said subsequent default or breach. No delay or omission of any Noteholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the Noteholders may be enfor<.-ed and exercised as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and should said suit, action or proceeding be abandoned, or be detennined adversely to the Noteholders, then, and in every such case, the Agency and the Noteholders shall be restored to their foroler positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. After the issuance and delivery of the Notes, this Resolution and supplementary resolutions thereto shall be irrepealable, but shall be subject to modification or amendment to the extent and in the manner provided in this Resolution. but to no greater extent and in no other manner. CUSIP identification numbers may be imprinted on the Notes, but such numbers shall not constitute a part of the contract evidenced by the Notes and no liability shall hereafter attach to the Agency or any of the officers or agents thereof because of or on account of said numbers. Any error or omission with respect to said numbers shall not constitute cause for refusal by the successful bidder to accept delivery of and pay for the Notes. "... '"- Section 25. Severability. If any covenant, agreement or proViSIOn, or any portion thereof, contained in this Resolution, or the application thereof to any person or circumstances, is held to be unconstitutional, invalid or unenforceable, the remainder of this Resolution and the application of any such covenant, agreement or provision, or portion thereof, to other persons or circumstances. shall be deemed severable and shall not be affected, and this Resolution and the Notes issued pursuant hereto shall remain valid and the Noteholders shaJJ retain all valid rights and benefits accorded to them under this Resolution and the Constitution and laws of the State of California. If the provisions relating to the appointment and duties of a Fiscal Agent are held to be unconstitutional, invalid or unenforce- able. said duties shall be perfonned by the Treasurer. r- '-- 16 ~ - .... "",., ~ .....J 4233 SectioJl 26. EHective Date. This Resolution shall take ell ect upon adoptioll. [ ADOPTED AND ApPHovED the da\' of A TrEST: Secretary of the Redevelopment Agency of the City of San Bernardino [SEAL] r \- [ . 1 !:l76. Chainnan of the Redevelopment Agency of the City of San Bernardino 'f' Ii ...... -' 't- .... " -..Ii .., ~) ...J 4234 ".. STATE OJ' CALlH)IIXJ,\ COUXTY OF SAX BEIIXAIIUJ/,;O CITY OJ' SAN BEIINAHDI:\O 1 r ss. J SECRET AHY'S CEHTlFIG.\TE RE ADOPTION OF RESOLUTI01\ '- I, , Secretary of the Redevelopment Agency of the City of Sail Bemardino, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by said Agency at a meeting of said Agency held on the day of , 1976, and that the same was passed and adopted by the following vote, to wit: AYES: Memhers: NOES: Members: ABSENT: Memhers: Secretary of the Redevelopment Agency of the City of San Bemardino [SEAL] r '-- ",... ...... If> ........ - .... ......, ...... --" 4235 [ STATE OF CALlFOJ\;";lA COUNTY OF SA;"; BEJ\;";AHDlJ',;() CrIT OF SAN BEHNAHDl:-:O 1 r 5S. J SECRETARY'S CERTIFICATE OF AUTHENTICATIO;'\ I, ., Secretary of the Redevelopment Agency of the City of San Bemardino, DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. of said Agency and that said Resolution was adopted at the time and by the vote stated on the above certificate, and has not been amended or repealed. Secretary of the Redevelopment Agency of the City of San Hemardino [SEAL ] r L... . ,.. ~ ! ir..- HJ ~ --- ~ .....Jj .., -.J 4236 , EXHIBIT A ,,- [FOIL\I OF HEAHEH l'O(rn:J --- UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO REDEVELOP~1ENT AGENCY OF THE CITY OF SAN BERNARDINO CENTRAL CITY NORTH REDEVELOP~1ENT PROJECT AREA TAX ALLOCATION NEGOTIABLE PROMISSORY NOTE Issne of HJ76 No. $5,000 r ~ THE REDEVELOPMEKT ACEKCY OF THE CITY OF SAN BERNARDINO (herein sometimes referred to as the "Agency"), a public body, corporate and politic, duly organized and existing under the laws of the State of California, for value received, hereby promises to pay (but solely from the funds hereinafter mentioned) to the bearer or, if this Note be registered, to the registered owner hereof, on October 1, 1979, upon presentation and surrender of this Note, the sum of FIVE THOUSAND DOLLARS ($5,000), with interest thereon (payable solely from said funds) from the date hereof at the rate of 'I< per annum, interest payable semiannually on April 1st and October 1st of each and every year until this Note is paid, upon presentation and surrender of the respective interest coupons hereto attached; provided, however, that if at the maturity date of this Note funds are available for payment thereof, as provided in the Resolution herein- after mentioned, this Note shall then cease to bear interest. Both principal and interest are payable in lawful money of the United States of America at the Corporate Agency Division of Bank of America National Trust and Savings Association, Fiscal Agent for the Agency, in Los Angeles or San Francisco, California, or, at the option of the Holder hereof, at the office of any Paying Agent of the Agency in Chicago, Illinois, or New York, New York. This Note, the interest hereon and any premium due upon the redemption of this Note prior to maturity are not a debt of the City of San Bernardino, the State of California or any of its political subdivisions and neither said City, said State nor any of its political suhdi\;sions is liable hereon, nor in any event shall this Note. said interest or said premium be payable out of any funds or properties other than the funds of the Agency as set forth in tlw Resolution hereinafter mentioned. This Note does not constitute an indehtedness within the meaning of any constitu- tional or statutory debt limitation or restriction. Neither the members of the Agency nor any persons executing this l\ote are liable personally on this Note hy reason of its issuanee. "... This Note is one of a duly authorized issue of Notes of the Agency designated "Redevelop- ment Agency of the City of San Befllardino, Central City North Redevelopment Project Area, Tax Allocation Negotiable Promissory l'\otes. Issue of 1976" (herein sometimes referred to as the "N otes") in aggregate principal amount of two million dollars ($2,000,000), all of like tenor (except for numbers thereon) and all of which have been issued pursuant to and in full conformity with the Constitution and laws of the State of California and particularly the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Cod,' of the State of California) for the corporate purposes of the Agency aiding in the financing of the redevelopment project above designated, and are authorized hy and issued pursuant to Resolution No. , adopted by the Agency on (said Resolution ;\0. being herein sometimes referred to as the "Resolution"). All of the Notes are equally secured in accordane(:' with the terms of the 'fl -..., 20 .... - ~ ...... ~ - 4237 "- Resolutioll, referenc"t' to which is here!>y made tor a specific description ot the security thereiJl provided for the Notes, for the nature, extent and manner of enforcement of such security, for the covenants and agreements made for the benefit of the Noteholders, and for a statement of the rights of the Noteholders, and by the acc-eptance of this Note the Holder hereof and of the coupons attached hereto assents to all of the terms, conditions and provisions of the Resolutioll, In the manner provided in the Resolution, the Resolution and the rights and obligations of the Agency and of the Holders of the Notes and coupons may (with certain exceptions as stated ill the Resolution) be modified or amended with the consent of the Holders of sixty percent (6()<)~ ) in aggregate principal amount of outstanding Notes (exclusive of issuer-owned Notes, as such term as defined in the Resolution), unless the modification or amendment is for the purpose of curing ambiguities, defects. etc., in which case no Noteholder's consent is required. The principal of this Note and the interest hereon are secured by an irrevocable pledge of, and are payable solely from, the Tax Revenues (as such tern1 is defined in the Resolution) and certain other funds, all as more particularly set forth in the Resolution. The Resolution is adopted lll1der and this Note is issued under and is to be construed in accordance with the laws of the State of California. "".. r The outstanding Notes, or any of them, may be called before maturity and redeemed, at the option of the Agency, from any source of funds, on April 1, 1977, or on any interest payment date thereafter prior to maturity (the "redemption date"). If less than all of the Notes outstanding are to he redeemed at anyone time, the Notes to be redeemed shall he detennined by lot. Notes called for redemption shall be redeemed at a redemption price for each redeemed Note equal to the principal amount thereof, plus accrued interest to the redemption date and the following premium (percentage of principal amount) if redeemed on the following redemption dates: "'- PREMIUMS AND REDEMPTION DATES Redemption Date Premium April 1, 1977 October 1, 1977 April 1. 1978 Octoher 1, H)7~ April 1, 1979 1 1 (/. " ~It %~; %(i; 1f2(/ Notice of call and redemption prior to maturity shall be given as provided in the Resolution, ",.. This Note and the coupons attached hereto are negotiable instruments and shall be negotiable hy delivery. This Note (issued in the form of a hearer note and hereinafter sometimes referred to as "Bearer Note") is not registrahle by endorsement, hut may lw exchanged for a Fully Registered Note as provided in the Resolution. FuJIy Registered Notes may he exchanged for a like aggregate principal amount of Bearer Notes of the same issue, hearing all unmatured coupons, or for a like aggregate principal amount of Fully Registered Notes of other authorized denominations, or in part for Bearer Notes and the balance for Fully Registered Notes of the same issue, and Bearer Notes bearing aJI unmatured coupons may he exchanged for a like aggregate principal amount of Fully Registered Notes of authorized dt'nominations of the same issue, all as more fully set forth in the Resolution; provided, however. no such exchange shall he made between the fifteenth (15th) day preceding any interest payment date and such interest payment date. Such exchange shall be free of any eosts or eharges to the person, firm or corporation rt'tluesting such exchange, except for any ta.x or governmental charges that may he imposed in connection with such exchange. '-- 21 ..-..- - ...... - ... .....I 4238 "'- It is hereby recited, certified and declared that any and all facts, conditions and things required to exist, to happen and to be performed precedl'nt to and in the issuance of this Note exist, have happened and have been perfonned in due tinw. form and manner as rl'quired by the Constitutioll and laws of the State of Califomia. ,..... I~ WITNESS WHEREOF, the Redevelopment Agency of the City of San Bernardino has caused this Note to be signed on its behalf by facsimile signature of its Chairman and by manual si~natur(' of its Secretary, and the seal of the Agency to be imprinted hereon, and the interest coupons hereto attached to be signed by facsimile signahue of its Secretary and this Note to be dated as of tht, first day of Octoher, 1976. Chairman of the Redevelopment Agency of the City of San Bernardino [SEAL] Secretary of the Redevelopment Agency of the City of San Bernardino r I ........ ,.. t..." 22 ... -..I ...... ....... ~ .....J [ [ [ \. 4239 I COUPON FOH:--t] On the first day of I!-J the REUEVELOPME;\;T AGE:-OCY OF TilE CITY OF SA" BEHNAHDl:-OO will pay to bearer, at the Corporate Agency Division of the Bank of America National Trust and Coupon r\o, Savings Association, Fiscal Agent for the Agency, in Los Angeles or Sali Francisco, California, or, at the option of the Holder hereof, at the office of any Paying Agent of the Agency in Chicago, Illinois, or New York, New York, solely from the funds S mentioned in the Note to which this coupon is attached, the sum shown hereon ill lawful money of the United States of America, being the interest then due on its CENTIIAL CITY NOHTII Ih:J)EvELOI'ME~T PHOJECT Am:A. TAX ALLOCATlO;'; ]\iECO- TIABLE PHOMISSOHY r\OTE. Issue of 1976. dated Octoher 1, 1976. No. Secretary of the Redevelopment Agency of the City of San Bernardino I HEVEnSE OF COUI'O,\;] If the Note to which this coupon is attached is redeemahle and is duly called for redemption 011 a date prior to the matllfity date of this coupon. this coupon will be void. 2:3 .., J i .....- ... ...... 1 -J 4240 "...... EXIIIBIT B I FOIlM OF FULLY IlEG!STEIlEIJ "en I';] .... UNITED STATES OF A~fERICA STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO REDEVELOP~lENT AGENCY OF THE CITY OF SAN BERNARDINO CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA TAX ALLOCATION NEGOTIABLE PRO~fISSORY NOTE ISSUE OF 1976 Fully Registered Note No. R THE REDEVELOI'ME1\'T AGE1\'CY OF THE CITY OF SAN BERXARDIXO (herein sometimes referred to as the "Agency"), a public body, corporate and politic, duly organized and existing under the laws of the State of California, for value received, hereby promises to pay (but solely from the funds hereinafter mentioned) to or registered assigns (herein some- times referred to as the "registered owner"), suhject to the right of prior redemption hereinafter mentioned, the principal sum of Dollars ($ ), being Notes maturing as follows: l\laturity Date Amount Intt'rt'st Ratt' r L ,.. and to pay such registered owner by check or draft mailed thereto at his address as it appears on the register kept by the Fiscal Agent at the clost' of business on the fifteenth (15th) day preceding the interest payment date, interest on su(;h principal sum from the interest payment date next preceding the date ht'reof (unless the date hert'of is prior to , 1977, in which event from L 1977) until tilt' principal hert'of shall have been paid or provided for in accordance with the Resolution Iwrt'inafter referred to, at the ratt' or rates abo\'(:, indicated, payable semiannually on April 1st and October 1st in each year. Both principal and interest and any prt'mium upon tht' redemption prior to maturity of all or part hert'of are payable in lawful money of tIll:' Unikd States of America and (ex(;ept for interest which is payable hy check or draft as stated above) are payable at the Corporate Agency Division of Bank of America National Trust and Savings Association, Fiscal Agent for the Agency, in Los Angeles or San Francisco, California, or, at tht' option of the Holder Ilt'rt'of, at tIlt' offict' of an~' Paying Agent of the Agency in Chicago, Illinois. or New York, New York. This Note, the interest hereon and any premium due upon tIlt' redt'mption of this Note, prior to maturity are not a debt of the City of San Bernardino, tht' State of California nor any of its political subdivisions and neither said City. said State nor any of its political subdivisions is -- :2~ IIIIlIJ ..." .... ......, ~ - 4241 Il"""" liable hereon, nor in any event shall this Note, said interest or said premium be payable out of any funds or properties other than the funds of the Agency as set forth in the Resolution herein- after mentioned. This Note does not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Neither the members of the Agency nor any persons executing this Note are liable personally on this Note by reason of its issuance. This Note is one of a duly authorized issue of Notes of the A~ency desi~nated "Redevelop- ment Agency of the City of San Bernardino, Central City North Redevelopment Projeet Area. Tax Allocation Negotiable Promissory Notes, Issue of 1976" (herein sometimes referred to as the "Notes") in a~~regate principal amount of two million dollars (82,(XX),OOO), all of like tenor (except for numbers thereon) and all of which have been issued pursuant to and ill full conformity with the Constitution and laws of the State of California and particularly the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of California) for the corporate purposes of the Agency aiding in the financing of the redevelopment project above designated, and are authorized by and issued pursuant to Resolution No. . . ., adopted by the Agency on (said Resolution N'o. being herein sometimes referred to as the "Resolution"). All of the Notes are equally secured in accordance with the terms of the Resolution, reference to which is hereby made for a specific description of the security therein provided for the Notes, for the nature, extent and manner of enforcement of such security, for the covenants and agreements made for the benefit of the Note- holders, and for a statement of the rights of the N'oteholders, and by the ac'Ceptance of this Note the registered owner hereof assents to all the terms, conditions and provisions of said Resolu- tion. In the manner provided in the Resolution, the Resolution and the rights and obligations of the Agency and of the Noteholders may (with certain exceptions as stated in said Resolution) be modified or amended with the consent of the Holders of sixty percent (60'/r ) in aggregate prin- cipal amount of outstanding Notes (exclusive of issuer-owned Notes, as that ternl is defined in the Resolution), unless the modification or amendment is for the purpose of curin~ ambiguities. defeets, etc., in which case no N'oteholder's consent is n'quired. The principal of this Note and the interest hereon are secured by an irrevocable pledge of, and are payable solely from, the Tax Revenues (as such tenn is defined in said Resolution) and certain other funds, all as more particularly set forth in the Resolution. The Resolution is adopted under and this Note is issued uncler and is to be construed in accordance with the laws of the State of California. ",... ....... '- The outstanding Notes. or any of them. may be called before maturity and redeemed, at tIlt' option of the Agency, from any source ot funds, on April 1, 19Ti, or on any interest payment date thereafter prior to maturity (the "redemption date"). If less than all of the Notes outstanding are to be redeemed at anyone time, the Notes to be redeemed shall be determined by lot. Notes called for redemption shall be redeellled at a redemption price for each redeemed Note equal to the principal amount thereof, plus accrued interest to the redemption date and the following premium (pen:entage of principal amount) if redeemed on the following redemption dates: PHEMIUMS AN'D REDE~fPTION DATES Redelllption DatI' Prl'mium ~ April 1, 1977 October 1, 1977 April 1, HJ7H October 1, 197H April L 1979 1 (/ ,( 1 (/ '( ~'4 (~,; 3/4 '/; 1/2 (,; ...... Notice of call and redemption prior to maturity shall he given as provided in the Resolution, 2-5 ,...... - ... - ...... - 4242 ,..,.... This J'Ioote IS Issued in fully registered form (herein sometimes referred to as a "Fully Regis- tered Noten) and is non-negotiable. This Note may be exchanged for a like aggregate principal amount of Hearer Notes of the same issue, bearing all unmatured coupons, or for a like aggregate principal amount of Fully Registered Notes of other authorized denominations, or in part for Bearer Notes and the balance for Fully Registered Notes, of the same issue, and Bearer Notes bear- ing all unmatured coupons may be exchanged for a like aggregate principal amount of Fully Reg- istered Notes of authorized denominations of the same issue, all as more fully set forth in the Resolution. This Note is transferable by the registered owner hereof, in person or by his attomey duly authorized in writing, at the principal office of the Fiscal Agent in Los Angeles, Califomia. but only in the manner, subject to the limitations and upon payment of the charges provided in the Resolution, upon surrender and cancellation of this Note. Upon such transfer, a new Fully Registered Note of authorized denomination or denominations for the same aggregate principal amount of the same issue will be issued to the transferee in exchange therefor. No .exchange for transfer shall be made between the fifteenth (I.5th) day preceding any interest payment date and such interest payment date. The Agency, the Fiscal Agent and any Paying Agent may treat the registered owner hereof as the owner for all purposes, and the Agency, the Fiscal Agent and any Paying Agent shall not be affected by any notice to the contrary. This Note shall not be entitled to any benefit under the Resolution, or become valid or obligatory for any purpose, until the certificate of authentication hereon endorsed shall have been signed by the Fiscal Agent. It is hereby recited, certified and declared that any and all acts, conditions and things required to exist, to happen and to be perfonned precedent to and in the issuance of this Note exist, have happened and have been performed in due time. fonn and manner as required by the Constitution and laws of the State of Califomia. ".- --- ...... IN "'ITNESS \VHEHEOF, the Redevelopment Agency of the City of San Bemardino has (.waused this Note to be signed on its behalf by facsimile signature of its Chairman and by manual signature of its Secretary and the seal of the Agency to be imprinted hereon, all as of the day of ., 19 Chairman of the Redevelopment Agency of the City of San Bemardino [ SEAL] Secretary of the Redevelopment Agency of the (:ity of San Bemardino [FOB:"! OF CEHTIFICATE OF AUTHE:\"T1CATJO:-': 0:-': FULLY HECISTEHEIl :-;OTES] This is one of the Fully Registered Notes described in the within-mentioned Resolution. . Fiscal Agent "... By Authorized Officer '-- 2R ..... --' ..... ...... ~ - 4243 [ lFOH:o.r OF EI'J>OHSE"IEI'T 0:\ FULLY HE(:ISTEIIED :\OTES] This Fully Registered Note (issued in fully registered form without coupons) is issued ill lieu of or in exchange for Bearer Note (s) of this issue of the denomination of five thousand dollars ($5,000), each not contemporaneously outstanding, aggregating the face value hereof; and Bearer Notes of this same issue and of the de'nomination of five thousand dollars ($5,000) shall be issued in exchange for this Note in the manner, with the effect and under the terms and eonditions stated on the faee of the Note and in the Resolution rpfprred to therein. I FOH:o.f OF ASSIG:\ME:'\, OF FULLY REGISTEHEIl NOTES] For value received unto irrevoeably eonstitutes and appoints ., attomey, to transfer the same with full power of substitution in the premises. hereby sells, assigns and transfers the within-mentioned Note and hereby on the hooks of the Fiscal Agent Dated: [ NOTE: The signature to this Assignment must eorrespond with the name as written on the face of the within Note in every partieular, without alteration or enlargement or any change whatsoever. [ .,- .;../ ..... - ... 'i .....,;jJ .., I ...J ,.....,. . ... r '-- r i I ...... 424~ Motion made to Adopt Resolution No. 3262 by Blum and seconded by Obershaw . Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin. Mr Baker inquired why these were short term notes instead of long term bonds. Mr. Shadwell replied interest rates were better for the short term notes, at this time. RESOLUTION PROVIDING FOR THE SALE OF $2,000,000 PRINCIPAL AMOUNT OF T AX ALLOCATION NOTES Mr. Green explained that this Resolution set forth the date of Opening of Bids and the Awarding of the Bid. Mr. Green also explained that this will necessitate the Board holding a Special Meeting on October 26th at 3: 00 p.m. Board Members concurred in the necessity of this Meeting. Mr. Stephenson inquired if there was a maximum interest rate and Mr. Shadwell explained that the maximum allowable was 8%, but that the Agency was very hopeful that it would be a lower rate. Agency representatives will be at the Bid Opening to be held in Los Angeles. Mr. Baker asked why the meeting was to be held in Los Angeles instead of San Bernardino, as has been the usual procedure in the past. Mr. Baker was informed that the staff would find out why the Bid Opening was to be held in Los Angeles. After discussion motion made to adopt the following resolution: ...., j i -..J ] ., I I .....J 4246 ,^ r I , l.- HESOLUTION NO. 3263 /:, l. .,,/r ( ( I ~ c, Lr ,~ .,.--".---" RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO PROVIDING FOR THE SALE OF $2,000,000 PRINCIPAL AMOUNT OF TAX ALLOCATION NEGOTIABLE PROMISSORY NOTES. WHEREAS, the Redevelopment Agency of the City of San Bernardino (herein sometimes referred to as the "Agency") is a redevelopment agency (a public body, corporate and politic) duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law [Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the State of California] and the powers of the Agency include the power to issue notes for any of its corporate purposes; and WHEREAS, the Agency has heretofore adopted its Resolution entitled: "Resolution of the Redevelopment Agency of the City of San Bernardino Authorizing the Issuance of $2,000,000 Principal Amount of Tax Allocation Negotiable Promissory Notes, Issue of 1976, to Aid in the Financing of a Redevelopment Project Known as the Central City North Redevelopment Project Area" (hereinafter referred to as the "Resolution of Issuance"); and \VHEREAS, the Agency deems it necessary to sell at this time the $2,000,000 Notes as author- ized by the Resolution of Issuance. r NOW, THEREFORE, THE REDEVELOP~fENT AGENCY OF THE CITY OF SAN BER- NARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: ....... Section 1. Sale Authorized. The sale of two million dollars ($2,000,000) principal amount REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA, TAX ALLOCATION NEGOTIABLE PROMISSORY NOTES, ISSUE OF 1976 (herein sometimes referred to as the "Notes") in accordance with law is hereby authorized. Section 2. Notice Inviting Bids. The invitation for bids for the purchase of the Notes is hereby authorized, such invitation to be substantially in accordance with the Notice Inviting Bids attached hereto as Exhibit A and by this reference incorporated herein. Said Notice Inviting Bids and the Bid Form, including the memorandum of interest cost, attached hereto as Exhibit B and by this reference incorporated herein, are hereby approved. Section 3. Publication of Notice Inviting Bids. The Secretary of the Agency (herein sometimes referred to as the "Secretary") shall cause to be published in the Sail Bernardino SUII-Telegram, a news- paper published and of general circulation in the City of San Bernardino, California, by at least one insertion at least ten (10) days prior to the day fixcd for the receipt of bids, the Notice Inviting Bids. Section 4. Terms and Conditions of Sale. The terms and conditions of the offering and the sale of the r\otes shall be as specified in said Notice Inviting Bids. r Ii I L Section 5. Official Statement Approved. The Agency hereby approves, to be furnished to prospectin' bidders for the Notes, and to the successful bidder, an Official Statement, to he prepared hy the Executive Director of the Agency and the Financial COllsultants, and to be approved hy Bond Counsel. 1 ] .., ~ -J ..., ~ ,1 ...J 4247 \...... Section 6. Official Statement Furnished. The Secretary and the Financial Consultant are hereby authorized and directed to cause to be furnished to prospective bidders a reasonable number of copies of said Notice Inviting Bids (including the Rid Form) and a reasonable number of copies of said Official Statement. r- , ~ Section 7. Secretary's Authorization. The Financial Consultants and/or Bond Counsel are hereby authorized and directed to open the bids at the time and place specified in said Notice Inviting Bids and to present the same to the Agency. The Financial Consultants and/or Bond Counsel are hereby authorized and directed to receive and record the receipt of all bids made pursuant to said Notice Inviting Bids, to cause said bids to be examined for compliance with said Notice Inviting Bids, to cause computations to be made as to which bidder has bid the lowest interest cost to the Agency and to present such bids to the Agency as provided in said Notice Inviting Bids, along with a report as to the foregoing and any other matters deemed pertinent to the award of the Notes and the pro- ceedings for the issuance thereof. Section 8. Effective Date. This Resolution shall take effect upon adoption. ADOPTED AND APPROVED this day of .,1976. Chairman of the Redevelopment Agency of the City of San Bernardino ,- ATTEST: '-- Secretary of the Redevelopment Agency of the City of San Bernardino [SEAL] ,..... '-- 2 ., , 'j i (. ...... ..., 1 1 ...J ~ --' 4248 "..., STATE OF CALIFOR:\IA } COUNTY OF SA!\" BER:\ARDINO ss. CITY OF SAN BERNARDINO SECRETARY'S CERTIFICATE RE ADOPTION OF RESOLUTION -- I, . . , Secretary of the Redevelopment Agency of the City of San Bemardino. DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by said Agency at a regular meeting of said Agency held on the day of , 1976, and that the same was passed and adopted by the following vote, to wit: AYES: Members: NOES: Members: ABSENT: \lembers: Secretary of the Redevelopment Agency of the City of San Bemardino [SEAL] r" -..... STATE OF CALIFORNIA } COUNTY OF SAN BERNARDINO ss. CITY OF SAN BERNARDINO SECRETARY'S CERTIFICATE OF AUTHENTICATION I, . , Secretary of the Redevelopment Agency of the City of San Bemardino, DO HEREBY CERTIFY that the above and foregoing is a full, tme and correct copy of Resolution No. of said Agency and that said Resolution was adopted at the time and by the vote stated on the above certificate, and has not been amended or repealed. Secretary of the Redevelopment Agency of the City of San Bemardino [SEAL] f L 3 -, , -J -., ii .~ --J ..., .~ J 4249 ,..., , i ! i... EXHIBIT A HEDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO NOTICE INVITING BIDS $2,000,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA TAX ALLOCATION NEGOTIABLE PROMISSORY NOTES, ISSUE OF 1976 NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of two million dollars ($2,000,000) principal amount of tax allocation notes of the Redevelopment Agency of the City of San Bernardino (herein sometimes referred to as the "Agency") will be received by the Agency at the place and up to the time specified: TIME: October 26, 1976 ll:OO o'clock A.M., P.D.S.T. PLACE: Law Offices of James 'Varren Beebe, A Law Corporation 611 West Sixth Street, Suite 1892 Los Angeles, California 90017 r- OPENING OF BIDS: The bids will be received at the above time and place, will be opened by the Financial Consultants and Bond Counsel and will be presented to the Agency at its meeting to be held later that day. ........ ISSUE: Two million dollars ($2,000,000) designated "Redevelopment Agency of the City of San Bernardino, Central City North Redevelopment Project Area, Tax Allocation Negotiable Promissory Notes, Issue of 1976", consisting of four hundred (400) notes, numbered 1 to 400, each inclusive, of the denomination of five thousand dollars ($5,000) and dated October 1, 1976. MATURITY: The Notes will mature on October 1, 1979. INTEREST: The Notes will bear interest at a rate to be fixed upon the sale thereof, but not to exceed eight percent (8~1, ) per annum, payahle semiannually on April 1st and October 1st in each year beginning on April L 1977. PAYMENTS: The Notes will bear interest at a rate to be fixed upon the sale thereof, but not to exceed prior to maturity are payahle in lawful money of the United States of America and (except for interest on Fully Registered Notes. which is payable by check or draft) are payable at the Corporate Agency Division of Bank of America National Trust and Savings Association, Fiscal Agent of the Agency, in Los Angeles or San Francisco, California, or, at the option of the holder, at the office of any Paying Agent of the Agency in Chicago, Illinois, or New York. New York. r i '- REGISTRATION: To facilitate registration of the Notes, two forms of Notes have been provided: (i) those which shall be initially issued and which are in negotiable forn1, payable to bearer, with negotiable coupons ("Bearer Notes"), and (ii) those which are issued to facilitate registra- tion and so are issued as non-Jwgotiable Fully Registered NOh'S payable to the registered owner ("Fully Registered Notes"). The Bearer Notes are not registrahle hy endorsement and, to facilitate their registration, they may he exchanged for Fully Registered Notes as provided in the Resolution herein- -1 ., I ....... ..., I -J ..., f: i B -i 4250 ~ after referred to. A Bearer Note or Bearer Notes may be registered by exchanging the same for a Fully Registered Note or Fully Registered Notes. A Bearer Note or Bearer Notes and a Fully Registered Note or Fully Registered Notes may be exchanged for a Fully Registered Note or Fully Registered Notes. A Fully Registered Note may be exchanged in whole for Bearer Notes or in part for such Bearer Notes and the balance for Fully Registered Notes. Transfer of ownership of a Fully Registered Noh' or Fully Registered Notes shall be made by exchanging the same for a new Fully Registered Note or Fully Registered Notes. All of such exchanges shall be in such manner and upon such reasonable tenm and conditions as may from time to time be determined and prescribed by the Agency; provided, however, no such exchange shall be made between the fifteenth (15th) day preceding any interest payment date and such interest payment date. Such exchanges shall be free of any costs or charges to the person, firm, or corporation requesting such exchange, except for any tax or governmental charge that may be imposed in connection with such exchange. Each Bearer Note issued pursuant to the Resolution shall be of the denomination of five thousand dollars ($5,000). Each Fully Registered Note issued pursuant to the Resolution shall be of a denomination which is five thousand dollars ($5,000) or any whole multiple thereof. ",... CALLABLE OPTION: The outstanding Notes, or any of them, may be called before maturity and redeemed at the option of the Agency, from any source of funds, on April 1, 1977; or on any interest payment date thereafter prior to mahlrity. If less than all of the Notes outstanding are to be redeemed at anyone time, the Notes to be redeemed shall be determined by lot. Notes so called for redemption shall be redeemed at a redemption price for each redeemed Note equal to the principal amount thereof, plus accrued interest to the redemption date and the following premium (percentage of principal amount) if redeemed on the following redemption dates: PREMIUMS AND REDEMPTION DATES ",- Redemption Date Pn'mium 1 010 1 o/c %% 3f4o/c 1h0c ...... April 1, 1977 October 1, 1977 April 1, 1978 October 1, 1978 April 1, 1979 Notice of call and redemption shall be given as provided in the Resolution hereinafter referred to. PURPOSE OF ISSUE: The Notes are to be issued by the Agency under and pursuant to the Com- munity Redevelopment Law of the State of California (Part 1 of Division 24 of the Health and Safety Code) for the corporate pm1Joses of the Agency aiding in the financing of a redevelopment project in the City of San Bernardino, California, known as the Central City North Redevelopment Project Area, and are to be issued pursuant to Resolution No. 3262 adopted by the Agency on September 23,1976 (herein sometimes referred to as the "Resolution"), to which reference is made for further particulars. SECURITY: The Notes are payable, both principal and interest, solely from Tax Revenues (as defined in the Resolution) and from certain other limited funds as provided in the Resolution. The Notes are not obligations of the City of San Bernardino or the State of California and do not con- stitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. TERMS OF SALE ...... Interest Rate: The rate bid may not exceed eight percent (8%) per annum, payable semiannually on April 1st and October 1st in each year, and must be a multiple of 1/20 of 1%. The interest on anyone Note shall he at one rate only. All Notes must carry the same interest rate and ~ 5 , I ......I ] ., ~ ! ! ....... 4251 r , each coupon period shall be represented by one interest coupon. Bids providing for additional or supplemental coupons will be rejected. i .... Award: The Notes shall be sold for cash only. All bids must be for not less than all at the Notes hereby offered for sale and each bid shall state that the bidder offers accrued interest to the date of delivery, the purchase price, which shall not be less than ninety-five per cent (95% ) of principal, and the interest rate, not to exceed that specified herein, at which the bidder offers to buy the Notes. Each bidder shall state in his bid the total net interest cost in dollars and the average net interest rate determined thereby, which shall be considered informative only and not a part of the bid. Highest Bidder: The Notes will be awarded to the highest responsible bidder or bidders considering the interest rate specified and the premium or discount offered, if any. The highest bid will be determined by deducting the amount of the premium bid (if any) from, or adding the amount of the discount (if any) to, the total amount of interest which the Agency would be required to pay from the date of the Notes to the maturity date thereof at the coupon rate specified in the bid, and the award will be made on the basis of the lowest net interest cost to the Agency. The purchaser must pay accrued interest from the date of the Notes to the date of delivery computed on a 360-day year basis. The cost of printing the Notes will be borne by the Agency. Right of Rejection: The Agency reserves the right, in its discretion, to reject any and all bids and, to the extent not prohibited by law, to waive any irregularity or informality in any bid. ....... Prompt Award: The Agency will take action awarding the Notes or rejecting all bids not later than twenty-six (26) hours after the time herein prescribed for the receipt of bids; pro- vided that the award may be made after the expiration of the specified time if the bidder shall not have given to the Agency notice in writing of the withdrawal of such bid. ,....... CUSIP: CUSIP identification numbers may be imprinted on the Notes, but such numbers shall not constitute a part of the contract evidenced by the Notes and no liability shall hereafter attach to the Agency or any of the officers or agents thereof because of or on account of said number. Any error or omission with respect to said number shall not constitute cause for refusal by the successful bidder to accept delivery of and pay for the Notes. Delivery and Payment: Delivery of the Notes will be made to the successful bidder at Jeffries Bank- note Company, 1330 'Vest Pica Boulevard, Los Angeles, California, or at such other place as may be agreed upon by the successful bidder and the officer of the Agency making delivery. Payment for the Notes must be made in funds immediately available to the Agency in Los Angeles, California. The Notes will he delivered to the successful hidder on or ahout November 9, 1976, and such prompt delivery time is of the essence of the contract to be made here- under for the sale of the Notes. The Agency, at its sole option, shall have the right to delay the delivery of the Notes beyond said date; provided, however, that the successful bidder shall have the right, at his option. to cancel the contract of purchase if the Agency shall fail to execute the Notes and tender them for delivery within sixty (60) days from the date herein fixed for the receipt of bids. and in such event the sllccessful bidder shall be entitled to return of the check accompanying his bid. Prompt Delivery; Cancellation for Late Delivery: ,...... i ! '-- Form of Bid: Each bid, together with the bid check. must be in a sealed envelope, addressed to the Agency, with the envelope and bid clearly marked "Bid for S2,OOO,OOO Tax Allocation fj ] ] .., J 4152 '-- Negotiable Promissory Notes of the Redevelopment Agency of the City of San Bernardino". Each bid must be unconditional and in accordance with the terms and conditions set forth herein, or permitted herein, and must be submitted on. or in substantial accordance with, bid fonns provided by the Agency. Bid Check: A certified or cashier's check on a responsible bank or trust company in the amount of forty thousand dollars ($40,000), payable to the order of the Agency; must accompany each bid as a guaranty that the bidder, if successful, will accept and pay for the Notes in accordance with the terms of his bid. The check accompanying any accepted bid shall be applied to the purchase price of the Notes. If such bid is accepted hut not perfornwd, unless such failure of performance shall be caused by any act or omission of the Agency, the check accompanying any accepted bid shall then be cashed and the proceeds retained by the Agency. The check accompanying each unaccepted bid will be returned promptly. r- At any time before the Notes are tendered for delivery, the successful bidder may disaffirm and withdraw the bid if the interest received by private holders from the Notes of the same type and character shall be declared to be taxable income under present Federal income tax laws, either by a ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable by the tern1S of any Federal income tax law enacted subsequent to the date of this notice. Arbitrage: On the basis of the facts, estimates and circumstances (including covenants of the Agency) in existence on the date of issue of the Notes it is not expected that the proceeds of the Notes will be used in a manner that will cause the Notes to be arbitrage bonds and the Agency will furnish to the successful bidder at the time of delivery of the Notes an arbitrage certificate certifying to the foregoing. Change in Tax Exempt Status: -- Legal Opinion: The unqualified opinion of the Bond Counsel firn1 of James 'Varren Beebe, A Law Corporation, Los Angeles, California, approving the validity of the Notes, will be furnished the successful bidder at or prior to the time of delivery of the Notes, at the expense of the Agency. A copy of such opinion. certified by an officer of the Agency by his facsimile signature, will be printed on the back of each definitive Note. No charge will be made to the purchaser for such printing or certification. No Litigation Certificate: At the time of payment for and delivery of the Notes, the Agency will furnish the successful bidder a certificate that there is no litigation pending affecting the validity of the Notes. Official Statement: The Agency will furnish to the successful bidder, at no charge, 400 copies of the Official Statement for this issue for use in ('onnection with any resale of the Notes. At the time of delivery of the Notes to the successful bidder, the Agency will furnish a certificate to the effect that at the time of sale of the Notes and at all times subsequent thereto up to and including the time of such delivery the Official Statement did not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made. not misleading. INFORMATION Requests for copies of the Resolution and the Official Statement pertaining to the AVAILABLE: Notes, or for other information concerning the Agency, should be addressed to Miller & Schroeder ~1unicipals, Inc.. Financial Consultants to the Agency, BOO Prospect, La Jolla, California 92037, telephone (714) 459-2661. GIVEN by order of the Agency adopted on September 23, 1976. r-" r t . ~ RALPH E. SHADWELL, JR. '-- Secretary of the Redevelopment Agency of the City of San Bcmardino - I ...., f I ....J ] ...... f ~ ....J 4253 r EXHIBIT B t ...... BID Fon THE PUHCHASE OF $2,000,000 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO CENTRAL CITY NORTH REDEVELOPMENT PROJECT AREA TAX ALLOCATION NEGOTIABLE PROMISSORY NOTES ISSUE OF 1976 October 7, 1976 Redevelopment Agency of the City of San Bernardino City of San Bernardino, California In behalf of a group which we have forn1ed, consisting of r- ........ and pursuant to the Notice Inviting Bids hereinafter mentioned, we offer to purchase two million dollars ($2,000,000) principal amount, all or none, of the Notes designated as "Redevelopment Agency of the City of San Bemardino Central City North Redevelopment Project Area, Tax Allocation Negotiable Promissory Notes, Issue of 1976", mahlring on October 1, 1979, particularly described in said Notice, bearing interest at the rate of %, and to pay therefor the aggregate sum of S 0 plus interest accmed on such Notes to the date of delivelY thereof. This bid is made subject to all the terms and conditions of the Notice Inviting Bids heretofore published, all of which tenl1S and conditions are nlade a part hereof as fully as though set forth in full in tllis bid, As specified in the Notice Inviting Bids, this bid is subject to acceptance not later than twenty-six (26) hours after the expiration of the time for the receipt of bids, and the unqualified opinion of the Bond Counsel finn of James \Varren Beebe, A Law CO'1)oratioll, Los Angeles, California, approving the valiility of the Notes, will be furnished us (if we arc the successful bidder) at the time of delivery of the Notes at the expense of the Agency. r 'i , L. There is enclosed herewith a 00 (840,000), payable to tlw order of the Agency, check in the amount of forty thousand dollars o 82,000,000, plus premium or less discount. 00 Insert "certified" or "cashier's". H ..., --- .., J ...., j I , -J 4254 [ There is submitted herewith a memorandum (which shall not constitute a part of this bid) stating the total net interest cost in dollars on the Notes during the life of the issue under this bid, and the average net interest rate determined thereby. ".... .... MEMORANDUM OF INTEREST COST The total net interest cost on the Notes during the life of the issue under the above bid is $ , and the average net interest rate determined thereby is %. ~ ..... 9 ~ ..J .., .....IJ ..... ..... ,...... .... r ...... ,... (; ~ ~ ~ ..... 4255 Motion to adopt Resolution No. 3263 made by Oberhsaw and seconded by Hinojosa. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin. Mr. Green asked permission of the Board to move to Agenda Item No. 6 with no opposition from the Board Members. FISCAL AGENT AGREEMENT - BONDING- CENTRAL CITY NORTH After a very brief discussion motion was. made to adopt the following resolution: RESOLUTION NO. 3264 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPOINTING FISCAL AGENT FOR THE CENTRAL CITY NORTH TAX ALLOCATION NEGOTIABLE PROMISSORY NOTES. WHEREAS, pursuant to Section 20 of Resolution No. 3263, of the Redevelopment Agency of the City of San Bernardino, the Chairman and Secretary are authorized to appoint an appropriate person or company to act as Fiscal Agent in connection with $2,000,000 Central City North Tax Allocation Negotiable Promissory Notes. NOW, THEREFORE, BE IT RESOLVED that the Chairman and Secretary are hereby auth- orized and directed to appoint the Bank of America, Los Angeles, California, as Fiscal Agent for the $2,000,000 Central City North Tax Allocation Negotiable Promissory Notes. Motion made to Adopt Resolution No. 3264 by Stephenson and seconded by Hinojosa. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None: Abstention: None. Absent: Wilson and Guhin. After discussion with the Board Mr. Green proceeds to Agenda Item No.9. OWNER PARTICIPATION AGREEMENT - COMMERCENTER- BOBBY MC GEES-SEIP Mr. Green apologizes to the Board for the lateness in their receiving this package. They are in receipt of it at this time because it must go before the Council October 4th, and time is at an absolute minimum. Mrs. Blum inquired if the Council hadn't recently approved this item overruling another commission because of the density of the site and was informed yes. Mr. Flory briefy outlines the Agreement to the Board. Mr. Obershaw and Mrs. Blum express their opinion that they see no way that the Agency can lose on this type of transaction. Mr. Hatle addresses the board and states that his project will employ approximately 60 persons and should gross $600,000 These figures based on an average volume. Mrs. Blum inquired of Mr. Hatle what type of restaurant Bobby McGee1s was and he produced a brochure outlining the decor. Mrs. Blum was very pleased with the decor. After discussion, motion made to adopt the following resoluution: ,., I f ......J ] .., J 4256 RESOLUTION NO. 3265 ",...., RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO PROPERTY OWNER'S PARTICIPATION AGREEMENT WITH SOUTHERN CALIFORNIA COMMERCENTER, LTD., SOUTHEAST INDUSTRIAL PARK REDE- VELOPMENT PROJECT AREA .., WHEREAS, the Redevelopment Plan for the Southeast Industrial Park Redevelop- ment Project Area was adopted by the City of San Bernardino by Ordinance No. 3583 on June 21, 1976; and WHEREAS, the Plan provides for the participation in the renewal and redevelop- ment of property in the Project Area by the owners of certain parcels of property if the owner agrees to participate in the redevelopment in conformity with the Plan; and WHEREAS, Southern California Commercenter, Ltd, a California limited partnership, desires to participate in said Project by the development of a dinner house cocktail lounge to be known as Bobby McGee's Conglomeration; and ".... WHEREAS, the Redevelopment Agency has reviewed the proposed development and have determined it to be in the best interest of the Project. NOW, THEFEFORE, BE IT RESOLVED by the Redevelopment Agency of the City of ...... San Bernardino, California, that the Chairman and Secretary are hereby authorized to enter into a Property Owner's Participation Agreement with Southern California Commercenter, Ltd, Southeast Industrial Park Redevelopment Project Area. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None: Abstention: None. Absent: Wilson and Guhin. Mr. Green now refers back to the original order of the Agenda. MEMO AND BACK UP FOR BOARD REVIEW-TRANSFORMER-PUBLIC ENTERPRISE Mr. Green states that no action has been taken by the Staff regarding this Item. Mr. Green proceeds to read aloud a letter from Gruen Associates, Inc., as follows: September 15, 1976 ""... I ~ Mr. Wallace Green Chairman Redevelopment Agency of the City of San Bernardino 300 North "D" St. San Bernardino, CA 92401 Dear Mr. Green: 4257 The Agency Board has expressed both concern and disappointment over the omission on our Public Enterprise Center drawings that resulted in a change order being issued to stabilize the fence. The change order required to provide necessary ventilation for the transformer room undoubtably evokes similar sentiments on the part of Board members. .... ..,....J My public statements to date relative to the above issues have been limited to insuring that all concerned understand that the change orders result from an omission on the Architect's drawings as opposed to acts of God or faulting others. I would have liked to have mentioned a mitigating factor when I last appeared before the Agency Board, but I came to realize that anything I said would simply fuel a fire that was near out of control already. However, I continue to believe the Agency wishes to be fully acquanted with all facets of issues, so I feel obligated to remind the Agency of an event that bears heavily on the few omissions made in our Public Enterprise Center drawings. I reference an article in last week's Sun-Tele- gram as a lead-in to recalling the event. The paper reported that Federal Public Works Employment Act funds were available to construct City projects such as a police station, fire station, etc. However, it was noted that the City had to certify that they could start construction on such Public Works Projects within 90 days. It was further noted plans, specifications and cost estimates are required in the appli- cation which must be submitted within the next few weeks. I don It know what action the City Council took relative to authorizing a crash program to generate bid docu- ments on public buildings, but I believe the following quote from a Morse Topper comment, "Even if this doesn't work, weIll need the plans later anway." is indic- ative of the almost hopeless task the City faces in attempting to secure the Federal grant. As a practical matter, the City cannot deliver to the Federal Government valid plans, specifications and a cost estimate for a new police facility or fire station within two to three weeks. ~ -...iI Mr. Wallace Green September 15, 1976 Page Two The Redevelopment Agency faced an identical situation in March, 1975. Operation Second Chance wished to have a new facility; said facility was eligible for a Federal Public Works Employment grant; the only trouble was no architect had been hired; thus, extensive documentation required by the applic- ation (due in three weeks) was non-existent. The Agency did not view this time frame as an insurmountable obstacle. The services of Gruen Associates were engaged on March 21,1975, and a 196 page application to EDA, including preliminary plans, outline specifications and a cost estimate was submitted to the Federal government on Aprilll, 1975. These dates are a matter of record--in a period 21 days, we com- pleted work that would have normally required a minimum of several months. Com- pletion of working drawings was similarily accelerated because of the need to certi- fy the project could be under construction in 90 days. ...... ..... r r, ,.1 " \... ,- ..... r-- L 4258 It is my hope the Agency Board understands that when a work schedule is radically compressed, omissions in drawings are inescapable. It is also my hope that the Ag- ency Board will keep in mind the benefits achieved by fast-tracking the project (we got the grant) when considering added costs required to cover omitted items. You have probably assumed this letter is in response to a question "Why must we add ventilation to the electrical room--where does the responsibility lie?" No-so-- this question is answered under separate cover. Also, I am not ressurecting the fence issue by implying in all fairness Gruen Associates should not have been required to participate financially in the matter. My singular intent is to remove, or at the very least, soften any ill feeling any Board member might have toward Gruen Associ- ates relative to professional competence and performance. I honestly believe our performance on the project, given the hazards of the unrealistic time schedule, was exceptional; I don It require or expect praise along these lines, but I would feel bad- ly if a Board Member, through an unfamiliarity with the early history of the project, felt that it was possible to prepare drawings containing no omissions within the pro- duction time frame allocated. Respectfully yours, GRUEN ASSOCIATES, INC. sl s Dan M. Branigan, AlA DMB:rb cc: Mr. Ralph Shadwell Mr. Green stated that he felt no action was necessary on this item. Mr. Obershaw stated that he felt there were no hard feelings regarding this matter, however, he does feel it is the Board I s responsibility to questions these additional costs. Mrs. Blum states that she feels the same way regarding board responsibility. CHANGE ORDER - SUNRAY CONSTRUCTION CO. - PUBLIC ENTERPRISE CENTER After reviewing documentation submitted for the Board, Mr. Obershaw stated that he feels the reasons are very well outlined. After discussion the following resol- ution was adopted: 4259 RESOLUTION NO. 3266 RESOL UTI ON OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING CHANGE ORDER WITH SUNRAY CONSTRUCTION CO. - PUBLIC ENTERPRISE CENTER FOR AN AMOUNT NOT TO EXCEED $406.20. .... .......J WHEREAS, Thermostat Guards have been noted by both Contractor and Inspector as a possible problem which could exist with students tampering with thermostats, making it impossible to control the temperature; and WHEREAS, the installation of guards over the thermostats will prevent unauthorized persons from adjusting them; and WHEREAS, this amounts to $207.58; and WHEREAS, after the bookcases were installed, the Librarian determined there were not enough shelves to provide storage for the amount of children I s books now on hand; and WHEREAS, this addition will still not provide the required space needed; and WHEREAS, this amounts to $138.00; and WHEREAS, the water heater was relocated from the closet in the Librarian I s office to provide more usable space and storage for the office; and ~ WHEREAS, said water heater was relocated in the attic space above the office, therefore a removable panel was required to provide access to the water heater; and --' WHEREAS, this amounts to $60.62. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino that the Chairman and Secretary be authorized to enter into Change Order with Sunray Construction Co. for an amount not to exceed $406.20. Motion made to adopt Resolution No. 3266 by Obershaw and seconded by Blum. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin. MUTUAL BENEFIT RESOLUTION - SOUTHEAST INDUSTRIAL PARK Mr. Green refers to map set up in the Board Room and explained the benefits of a Mutual Benefit Resolution. After discussion the following resolution was adopted: RESOLUTION NO. 3267 RESOL UTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE ACQUISITION INSTALLATION AND CONSTRUCTION AND/OR CONTRIBUTION OF FUNDS THEREFOR FOR THE EXTENSION OF ORANGE SHOW ROAD TO FAIRWAY DRIVE AND THE EXTENSION OF SEWERS AND SEWER FACILITIES BOTH WITHIN AND WITHOUT THE SOUTHEAST INDUSTRIAL ~ ....... r L r L.. [ 4260 PARK PROJECT AND FINDING AND DECLARING THAT SAID IMPROVE- MENTS ARE OF BENEFIT TO THE SOUTHEAST INDUSTRIAL PARK PRO- JECT AND OTHER REDEVELOPMENT PROJECT AREAS WITHIN THE CITY. WHEREAS, on June 23,1952, the Mayor and Common Council by Resolution No. 2361, did create the Redevelopment Agency of the City of San Bernardino, California; and WHEREAS, on the 7th day of June, 1976, the Mayor and Common Council, after public hearing thereon, approved the adoption of Resolution No. 12426 approving a redevelop- ment plan for the Southeast Industrial Park Project; and WHEREAS, Section 33445 of the California 'Health and Safety Code . provides that a Re- development Agency, at the request of and with the consent of a legislative body, may pay all or part of the value of the land for and the cost of the installation and construction of any building, facility, structure, or other improvement which is publicly owned either within or without a project area upon determination that such buildings, facilities, struct- ures, or other improvements are of benefit to the project area; and WHEREAS, the extension of Orange Show Road, which is now within the Southeast Ind- ustrial Park Project area, from its current terminus Southwest of Interstate 15, south- westerly and southerly so that it intersects Fairway Drive will be of specific and direct benefit to the following Redevelopment Agency project areas, to wit: Central City, Meadowbrook, Central City North, Central City South, Central City West, and South- east Industrial Park, in that said improvements will eliminate the terminus of Orange Show Road and permit the flow of traffic to proceed southwesterly and southerly so that it joins and intersects Fairway Drive; and southerly so that it joins and inter- sects Fairway Drive; and WHEREAS, the extension of sewers and sewer facilities which are presently within the Southeast Industrial Park project area along "F" Street between Orange Show Road and Fairway Drive within the City of San Bernardino, but outside said project area, will be of specific and direct benefit to the Redevelopment Agency's Southeast Industrial Park, Central City, Meadowbrook, Central City North, Central City South, Central City West project areas, in that it will encourage industrial development in the area and thereby create new jobs for the citizens of San Bernardino and be, therefore, economically bene- ficial to the City by the increase of payrCllls, taxes and other economic benefits: NOW THEREFORE, BE IT RESOLVED that. the Redevelopment Agency of the City of San Bernardino, California, does hereby find as follows: SECTION I: The acquisition, installation and con struction and/or the contribution of funds therefor for the extension of Orange Show Road, which is now within the Southeast Industrial Park Project area, from its current terminus Southwest of In- terstate 15 southwesterly and southerly so that it intersects Fairway Drive will be of specific and direct benefit to the following Redevelopment Agency project areas, to wit: Central City, Meadowbrook, Central City North, Central City South, Central City West and Southeast Industrial Park, in that said improvements will eliminate the terminus of Orange Show Road and permit the flow of traffic to proceed south- westerly and southerly so that it joins and intersects Fairway Drive; and 4261 SECTION 2: The extension of sewers and sewer facilities which are presently within the Southeast Industrial Park project area along "F" Street between Orange Show Road and Fairway Drive within the City of San Bernardino, but outside said project area, will be of specific and direct benefit to the Redevelopment Agency's Southeast Industrial Park, Central City, Meadowbrook, Central City North, Central City South, and Central City West project areas, in that it will encourage industrial development in the area and thereby create new jobs for the citizens of San Bernardino and be, therefore, econ- omicallybeneficial.to the 'City. by the increase of payrolls., taxes and other economic benefits; and ...., I ! --i SECTION 3: The expenditure of funds by the Redevelopment Agency in accordance with the provisions of Section 33445 of the California Health and Safety Code for the above- referred to public improvements will be and are of direct and specific benefit to the afore- said project areas as hereinabove set forth. Motion made to adopt Resolution No. 3267 by Blum and seconded by Obershaw. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin. CHANGE ORDER NO. 1 - TOT ALPLAN INC. , - PUBLIC ENTERPRISE CENTER Mr. Green explained the financial status of the Public Enterprise Center to the Board. We are now $35,000 above the original budget. Mr. Green further explained that he feels the Agency is obligated to pay at least $1,000 for the rug inasmuch as that amount was called for in the specifications, but that the Agency was not obligated to pay any amount over $1,000. ~ I 1 ! -....I Mrs. Dorothy Traver, a retired librarian spoke out from the audience regarding the high cost of Golden Oak for the library book cases. After discussion, Mr. Green stated that his own personal opinion was that the Agency should pay for the rug at a cost not to exceed $1,000, but that the additional amount required for the Golden Oak Bookcases be denied. Mr. Obershaw stated that he opposed them both. Mrs. Blum made a motion to pay for the rug and delete the bookcase. Motion dies for lack of second. Mr. Jones from the Agency stated that the Contractor had not bought the rug yet and that he would instruct him that if he could not find a rug for $1,000, that there would be no rug because the Agency will not pay the additional cost of $310.43. Mr. Obershaw makes a motion to deny both the rug and the book cases. Motion dies for lack of a second. Request for Change Order died for lack of action by the Board. PROPOSAL FROM MICHAEL J. MURPHY- PUBLIC AND PARKING AREAS-CENTRAL CITY WEST. ...... ....J Mr. Green explained to the Board the need for additional architectural services for [ "...., -- r l.. 4262 Central City West. The Agency contacted Mr. Murphy because he has already been awarded a contract for architectural services and could work easily with the Agency on the additional contract. Mr. Murphy submitted a proposal not to exceed $1,050. After discussion the following resolution was adopted: RESOLUTION NO. 3268 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE CHAIRMAN AND SECRETARY TO ENTER INTO CONTRACT WITH MICHAEL J. MURPHY, A.LA. FOR PUBLIC AND PARKING AREA, 5th and MT. VERNON, CENTRAL CITY WEST PROJECT. WHEREAS, it has been deemed necessary to secure the professional services of an architectural firm for the public and parking areas for the Redevelopment Project Area known as Central City West; and WHEREAS, Michael Murphy has submitted a proposal, as follows: 1. Prepare Preliminary Parking Design for Parcel 8; 2. Prepare Preliminary Landscape, Irrigation and Lighting Plans for Planting Areas; 3. Assist in obtaining approvals from the City of San Bernardino; and 4. Co.ordinate with C M Engineering any required details affecting the plans, in- cluding utility requirements; and WHEREAS, said proposal is not to exceed the sum of $1,050.00; and WHEREAS, said work will be completed within 30 days of authorization to proceed. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Bernardino, California be authorized to enter into Contract with Michael J. Murphy for Architectural Services, Public and Parking Area, Central City West for an amount not to exceed $1,050.00. Motion made to adopt Resolution No. 3268 by Stephenson and seconded by Hinojosa. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin. CHANGE TO CITY-AGENCY LEASE FOR PARKING AREA AROUND THE MALL Mr. Green explained to the Board the contents of Mr. Julian's letter and read aloud the following change to be incorporated into the Lease: Section 4(a): It is understood and agreed that the leased premises shall be maintained and ~sed as a parking facility for primary bene- 4263 fit of the shopping public, as opposed to all-day employee parking. the facility shall be available to the shopping public without charge, provided, however, that the City may adopt and enforce reasonable regulations with respect to such use, including parking time limits." ..., ! ......) Discussion follows regarding the merits of the change. After said discussion motion is made to adopt a resolution authorizing the change in the lease: RESOLUTION NO. 3269 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CHAIR- MAN AND SECRETARY TO ENTER INTO AMENDMENT TO AGREE- MENT WITH THE CITY OF SAN BERNARDINO FOR THREE LEVEL PARKING STRUCTURE, CENTRAL CITY PROJECT AREA. WHEREAS, the Redevelpment Agency of the City of San Bernardino, California, entered into an Agreement with the City of San Bernardino, dated June 10, 1968, for the lease by the City of San Bernardino of the three-level parking structure within the Central City Project Area; and WHEREAS, the City Administrator has requested a modification to Section 4(a) of this Agreement, whereby the language of this Section (Use) would clarify the status of the parking facility by indicating that it is not reserved for a particular segment of the overall shopping area and further indicates that the shopping public is intended to have precedence over all-day parkers; and .., 1 j ---' WHEREAS, the Redevelopment Agency Board has reviewed this request and finds and determines that the modification would be to the best interest of the City of San Bernardino and the Central City Project. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of San Bernardino, California, that the Chairman and Secretary are hereby authorized to execute Amendment to Agreement with the City of San Bernardino for the Three- Level Parking Structure, Central City Project, by revising Section 4(a) as follows: Section 4(a) . It is understood and agreed that the leased premises shall be maintained and used as a parking facility for primary benefit of the shopping public, as opposed to all-day employee parking. The facility shall be available to the shopping public without charge, provided, however, that the City may adopt and enforce reasonable regulations with respect to such use, including parking time limits. Motion made by Blum to adopt Resolution No. 3269 and seconded by Stephenson. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, ,...... Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin. -- r' L ,-. ....... [ 4264 OTHER BUSINESS: Mr. Green stated that Mr. Flory, Agency Counsel had a staff member place a call to the law office of Warren Beebe to find out why the Bid Opening for the SEIP would be taking place in Los Angeles instead of San Bernardino. The reason is that it will be much more convenient for the bidders and that is the only reason. Motion made to adjourn by Obershaw and seconded by Blum. Motion carried by the following vote, to wit: Ayes: Blum, Obershaw, Hinojosa, Stephenson and Green. Noes: None. Abstention: None. Absent: Wilson and Guhin. b R. E. Shadwell, Jr. Executive Director Adjourned: 4: 20 p.m. ...... ~ ..... -.-i ~ ......,.