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08/09/2011CITY OF GRAND TERRACE CITY COUNCIL MINUTES REGULAR MEETING - AUGUST 09, 2011 A regular meeting of the City Council of the City of Grand Terrace was called to order in the Council Chambers, Grand Terrace Civic Center, 22795 Barton Road, Grand Terrace, California, on August 09, 2011 at 6:00 p.m. PRESENT: Walt Stanckiewitz, Mayor Lee Ann Garcia, Mayor Pro Tern Darcy McNaboe, Councilmember Bernardo Sandoval, Councilmember Gene Hays, Councilmember Brenda Mesa, City Clerk Bernard Simon, Finance Director Joyce Powers, Community & Economic Development Director Richard Shields, Building & Safety Director John Harper, City Attorney Lt. Steve Dorsey, San Bernardino County Sheriff's Department ABSENT: Betsy M. Adams, City Manager I" . Rick McClintock, San Bernardino County Fire Department The City Council meeting was opened at 6:00 p.m. with an Invocation by Rick Doucette, Calvary the Brook Church, followed by the Pledge of Allegiance led by City Clerk Brenda Mesa. ITEMS TO DELETE None SPECIAL PRESENTATIONS The Council presented a Certificate of Recognition to outgoing City Clerk, Brenda Mesa. CONSENT CALENDAR CC-2011-68 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER MC NABOE, CARRIED 5-0, to approve the following Consent Calendar Items: 3A. Approve Check Register No. 08-09-2011 3B. Waive Full Reading of Ordinances on Agenda 3C. Approval of 07-26-2011 Minutes Council Minutes 08±09:2011 Page 2 PUBLIC COMMENT Sally McGuire, Chamber of Commerce President, announced that Burt's Jewelry and Repair has been chosen by Senator Dutton as one of six businesses of the year in the 63' District. Senator Dutton will be at Burt's Jewelry and Repair tomorrow at 3:30 p.m. She encouraged everyone to stop by and congratulate them. Peggy Reagan, encouraged the City Council to maintain the same level of police protection. She felt that law enforcement should not be reduced. Darcy Fraser, Terrace View Elementary School PTA President, stated that the CJUSD has made the decision to eliminate crossing guards throughout the district to reduce the budget. The safety of children and parents is at risk. She expressed concerned and suggested a meeting with the City, PTA and the School District to explore the possibilities of what can be done. A core of volunteers has been discussed, however, liability and funding are issues to consider. Thelma Winkler -Beach, expressed her belief that elimination of a Sheriff Deputy is not the right thing to do. Grand Terrace is safe because we have good law enforcement. Sylvia Robles, feels that the city is out of balance. We have RDA money but no general fund money. Our first priority as a city is to protect and serve the citizens with police and fire and have core municipal services. She suggested that the city be proactive and create a blue ribbon commission made up of residents to address some ofthe issues. She indicated that she would like to see the city keep the same level of police enforcement. COUNCIL REPORTS Councilmember Gene Hays, stated that he appreciates the residents coming out and voicing concerns. He referred to an article in The Sun newspaper regarding Burt's Jewelry and the being recognized by the Senator. He thanked Burt's Jewelry for their contribution to the economy. Opening ceremony for soccer was a good event. He called upon the residents to get involved and sponsor a team. He asked staff to look into using the electronic billboard on Barton Road for commercial advertisement for individual businesses. Joyce Powers, Community Development Director, indicated that the electronic billboard was constructed with redevelopment money and is restricted to nonprofit use. The city has offered space for the chamber of commerce to advertise businesses at large. She indicated that she will explore the possibility of expanding the use to include commercial advertising. Councilmember Darcy McNaboe, commended the community members who have not allowed the status quo at the state and federal level to inhibit their participation in local Council Minutes 08r'09.:2011 Page 3 projects that enhance the quality of life for their families and the greater community. Examples of these events include: Lions Club eyesight clinic, individuals interviewed to fill the vacancy left by the resignation of Kent Taylor from the CJUSD Board, Rollins Park was cleaned by soccer families, Habitat homes scheduled to be built in Grand Terrace by volunteers. She indicated there are additional opportunities to volunteer including the EOC. CERT, Crime Prevention Committee and am Radio Station 1640. She challenged the Council to consider it a priority to create policy that encourages these types of activities. She indicated that she sees signs of economic recovery and is optimistic about the future state of our city. Councilmember Bernardo Sandoval, indicated that he has been contacted by several concerned parents with regards to the crossing guard issues. He stated that the Colton Joint Unified School District will not be funding the positions of crossing guards. He feels that we are looking at significant liability issues. He was told that the school district is looking into establishing a volunteer system and has reached out to City staff. He proposed that Council direct staff to present options on how the crossing guards for Grand Terrace Schools can be funded for 30 days until a volunteer program can be established. He questioned what the result was of the conversation at staff level. Joyce Powers, Community and Economic Development Director, responded that the principal issue would be how the City will be able to pay for the guards. She indicated that there is a program through the County called Safe Routes for Schools and although they don't have funding available, they have offered to train the volunteers. She stated to pay for one guard it would cost the City approximately $400.00 per month. She stated that there is a service that the school district has used and staff may be able to contact them. CC-2011-69 MOTION BY COUNCILMEMBER SANDOVAL, SECOND BY MAYOR PRO TEAM GARCIA, CARRIED 5-0, to add the funding of crossing guards to the agenda as Item 8A. Councilmember Sandoval, feels that it is important to look into webstreaming Council Meetings so that residents are very aware of the conversations that take place during the meetings. Mayor Pro Tern Garcia, thanked everyone that was at the meeting giving their input. She had an opportunity to meet with the Director of Security for the School District and he indicated that he will be meeting with the Sheriffs Department regarding the new high school and other city related items. She reported that Planning Commissioner, Bob Baffles is involved in the Clean Sweep Program and has already had meetings regarding the new high school and how they can make it safer for the students. She stated that the safety of the community has always been the number one priority. She stated that the law enforcement issue will be discussed on Tuesday, August 30, 2011 at 6:00 p.m. She reported that she went on a tour of Council Minutes 08109/2011 Page 4 the new high school. She announced that she is going to sponsor the Titans soccer team and encouraged others to sponsor a team for $175.00. She reported that Stacey West will be coordinating the Grand Terrace Chamber of Commerce Golf Tournament that will be held on October 10, 2011. She reminded everyone of the College Student Free Bus Service through Omnitrans. She expressed her concern with the recent graffiti in the City and urged residents to report graffiti as soon as they see it so it can be taken care of quickly. Mayor Stanckiewitz, thanked all community members that participated in the blood drive at Wilden Pump. They will hold blood drives at that location every eight to ten weeks. The dates for the blood drives will be announced on the reader board. He reported that the City transferred the deed of a piece of property on Michigan where Habitat for Humantity will be constructing two homes. Wilden Pump has many volunteers that will take this opportunity to help with the construction of the homes. Information Meetings will be held for the families that would like to be considered for these homes on Wednesday, August 24, 2011 at 7:00 p.m. and Saturday, August 27, 2011 at 10:00 a.m. in the Community Room at City Hall. He announced a list of requirements for the program. He encouraged the residents to stay involved. PUBLIC HEARINGS 6A. Refinancing of Multi -family Housing Revenue Bonds Issued in 1985 to Develop the Highland Apartments Joyce Powers, Community and Economic Development Director, indicated that North Waterford Apartments, L.P. contacted staff requesting the City's assistance with a new tax- exempt multi -family revenue bond financing, which would refund the 1985 Series A Agency Multifamily Housing Revenue Bonds, with a current unpaid balance of approximately $24.5 million. In addition, the new financing contemplates an additional $11.5 million of taxable revenue bonds to refinance other obligations of the Borrower and provide funds to make improvements to the property located at 11750 Mount Vernon Avenue. Approximately $3 million of the taxable proceeds would be used to make interior and exterior improvements to the property. She gave an overview of the process of the refinancing of the Bonds. She stated that the City Attorney has reviewed all of the documents and there is no fiscal impact to the City. The City does not bear any responsibility for the tax-exempt status of the Obligations, the debt service on the Obligations or any other matter related to the Obligations. John Harper, City Attorney, confirmed that the City will not have liability or obligations with regards to the refinancing of these bonds. Mayor Stanckiewitz opened the public hearing for discussion, there being none he closed the public hearing and returned the discussion to Council. Council Minutes 08?0912011 Page 5 Councilmember Darcy McNaboe, questioned if there is a cost associated with becoming an Associate Member of their JPA. Joyce Powers, Community and Economic Development Director, responded that there is no cost. Councilmember McNaboe, stated that it was mentioned that as an Associate Member, the City would have to support the issues of the JPA. She questioned what particular issues they would be supporting. John Harper, City Attorney, responded that it is just the issues of issuing the bonds. Councilmember McNaboe, clarified that the purpose of the JPA is specifically to provide loans of this nature. Joyce Powers, Community and Economic Development Director, confirmed that they are for public benefit projects only. Councilmember McNaboe, questioned if this refinancing of bonds will change the City's Redevelopment budget balance. Joyce Powers, Community and Economic Development Director, responded that it has no effect on the Agency. Councilmember McNaboe, indicated that it states that 20% of the units will continue to be reserved for low and moderate income tenants while obligations are outstanding and questioned if we will have to re -negotiate whether they will continue to do 20% for low and moderate income tenants once the obligation is paid. Joyce Powers, Community and Economic Development Director, responded in the affirmative and stated that she would expect that the pay-off period is 30 to 35 years. Councilmember McNaboe, questioned if they have been successful in challenging the valuation of their assessment. Joyce Powers, Community and Economic Development Director, responded in the negative. Councilmember Sandoval, questioned if the City is incurring no liability or Obligation then what exactly is the City doing. John Harper, City Attorney, responded that the City is essentially lending their tax exempt status to the issuance of the bonds. Without the Agency being involved the bonds could not Council Minutes 08.09;2011 Page 6 be tax exempt. Councilmember Sandoval, questioned how we know that they will use the $3 million dollars to improve the property. John Harper, City Attorney, responded that Wells Fargo is going to lend the money and they will provide a closing statement stating that these are the sources and uses of funds. One of the uses of the funds will be the $3 million dollars for doing improvements and there will be an obligation in their document to do that. He stated that we don't have the ability to enforce how they use the funds, although the JPA will be a party to those agreements. Councilmember Hays, questioned what the other obligations are that were mentioned in the staff report. Sam S Balisy, Esq., responded that there is a second loan on the property from Fannie Mae and there is some preferred debt that they have to pay off. They are trying to achieve some cost savings and have some money available to make improvements. Councilmember Hays, questioned what preferred debt is. San S. Balisy. Esg., responded that one of the ways the financing of housing units is done, is with some equity financing and some debt financing. Preferred debt means that, in terms of the borrower's organization, those lenders would get their money be lore the rest of the distributions are made. Mayor Stanckiewitz, stated that he has lived in the Highland Apartments twice in his lifetime. They take good care of the property and keep it up to date. He feels that the City should continue to support them. Councilmember Ha s, questioned what can be done with the eye sore that is between the two properties. Joyce Powers, Community and Economic Development Director, stated that it would be a separate matter and is owned by a different property owner. Ma or Pro Tem Garcia, thanked staff for their work done on this item. Councilmember Sandoval, stated that he too lived in the Highland Apartments and it was a great place to start out and supports the item. CC-2011-70 MOTION BY COUNCILMEMBER SANDOVAL, SECOND BY MAYOR PRO TEM GARCIA, CARRIED 5-0, to adopt a Resolution approving an Associate Council Minutes 08 '09 '2011 Page 7 Membership Agreement between the California Enterprise Development Authority ("CEDA") and the City to facilitate the bond financing and adopt a Resolution approving the issuance by CEDA of the Obligations for the benefit of the Borrower. UNFINISHED BUSINESS 7A. Barton Plaza Commercial Project Second Reading - An Ordinance of the City Council Adopting Zone Change 11-01 to Amend the Zoning Map by Re -Zoning 0.75 Acres located on the West Side of Mt. Vernon Avenue and Approximately 400 Feet North of Barton Road from Administrative Professional to BRSP - Village Commercial Second Reading - An Ordinance of the City Council Adopting Specific Plan Amendment 11-01 to Incorporate 0.75 Acres located on the West Side of Mt. Vernon Avenue and Approximately 400 Feet North of Barton Road into the Barton Road Specific Plan CC-2011-71 MOTION BY COUNCILMEMBER HAYS, SECOND BY COUNCILMEMBER MC NABOE, CARRIED 5-0, to approve the Second Reading of an Ordinance of the City Council Adopting Zone Change 11-01 to Amend the Zoning Map by Re -Zoning 0.75 Acres located on the West Side of Mt. Vernon Avenue and Approximately 400 Feet North of Barton Road from Administrative Professional to BRSP - Village Commercial and the Second Reading of an Ordinance of the City Council Adopting Specific Plan Amendment 11-01 to Incorporate 0.75 Acres located on the West Side of Mt. Vernon Avenue and Approximately 400 Feet North of Barton Road into the Barton Road Specific Plan. 7B. Second Reading - An Ordinance of the City Council Electing to Comply with and Participate in the Alternative Voluntary Redevelopment Program Contained in Part 1.9 of Division 24 of the California Health and Safety Code CC-2011-72 MOTION BY COUNCILMEMBER HAYS, SECOND BY COUNCILMEMBER SANDOVAL, CARRIED 5-0, to approve the Second Reading of an Ordinance of the City Council Electing to Comply with and Participate in the Alternative Voluntary Redevelopment Program Contained in Part 1.9 of Division 24 of the California Health and Safety Code. NEW BUSINESS 8A. Crossing Guard Funding Council Minutes 08109/2011 Page 8 Terry McGuire, suggested that Sheriff's Department help out with the Crossing Guard duties. CC-201 i -73 MOTION BY MAYOR PRO TEM GARCIA, SECOND BY COUNCILMEMBER SANDOVAL, CARRIED 5-0, to authorize the expenditure of not to exceed $1,500.00 out of the Reserves for the purpose of funding crossing guards for up to thirty days and direct the City Manager to contact the Superintendent of the Colton Joint Unified School District to coordinate a volunteer group that will be certified to provide this service to the schools, keep the parents informed, and bring an update to the Council at the next regular meeting. CLOSED SESSION 9A. Conference with Real Property Negotiators Pursuant to GC 54956.8 Pro e - APN# 0275-231-48 through 0275-231-66 Agency Negotiator - Betsy M. Adams Owner/Negotiator - Douglas Jacobsen Mayor Stanckiewitz announced that the Council met in Closed Session for a Conference with Real Property Negotiators Pursuant to GC 54956.8 and there was no reportable action taken. Mayor Stanckiewitz adjourned the meeting at 7:59 p.m., until the next City Council Meeting which is scheduled to be held on Tuesday, August 23, 2011 at 6:30 p.m. CITY CLEa of thL City of Gr Terrace MAYOR o the City of Grand Terrace