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HomeMy WebLinkAbout1999 06 02 CC MIN1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8COUNCIL CHAMBER JUNE 2,1999 14403 E. PACIFIC AVENUE WEDNESDAY BALDWIN PARK, CA 91706 7:00 P.M. The CITY COUNCIL of the City of Baldwin Park met in REGULAR SESSION at the above time and place. ROLL CALL: Present: Councilmembers Ricardo Pacheco, Linda Gair, Mayor Pro-Tern William Bill" Van Cleave, and Mayor Lozano Mso Present: David Olivas, City Affomey; Richard A. LeGarra, Chief of Police; James B. Hathaway, Director of Finance; Steve Cervantes, Director of Community Development; Ralph Nunez, Director of Recreation and Community Services; Ana Montenegro, City Treasurer; Kathryn V. Tizcareno, City Clerk; and Rosemary Ramirez, Deputy City Clerk PRESENTATIONS AWARDS OF MERIT Director Nunez, Mayor Lozano and the City Council MR. ROY TEST and presented Awards of Merits to Mr. Roy Test and AIfredo ALFREDO GONZALEZ Oonzalez, for recently having received the prestigious Los Angeles County Senior Recognition Award at the Dorothy Chandler Pavillion. POLICE DEPARTMENT After a brief introduction of the seven award recipients CITIZEN'S ACADEMY Chief LeGarra, Officer Villines, Mayor Lozano, and the GRADUATES City Council presented certificates of Completion to Guillermo Alvardo, Monica Brito, Marie Locher and Rosa Macon, recent graduates of the Police Department Citizen's Academy. Graduates not present this evening are: Dolores Cubillo, Richard Flood, and Donna Flood. ARTIST JUDY BACA Mayor Lozano mentioned that in the magazine RECOGNIZED Vanidades", Judy Baca was featured on several pages. Judy Baca is know in Baldwin Park for her work and design on the arch of the Metro-link station. Mayor Lozano commended Ms. Baca on her success and accomplishments. PUBLIC COMMUMCATIONS SAN GABRIEL VALLEY A representative from Assemblyman Gallegos' Office BUSINESS BOOSThR" announced that on June 11, 1999, the 1999 San Gabriel Valley Business Booster" will be held at the Radisson Hotel in Baldwin Park. BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 2 CONSENT CALENDAR City Clerk Tizcareno presented the Consent Calendar as follows: ITEM PULLED OFF AGENDA Councilwoman Gair pulled the following item from the Consent Calendar for discussion: 1) APPROVAL TO PURCHASE VEHICLE TIRES FY 1999-2000 CERTIFICATE OF POSTING Certificate of Posting for June 2, 1999, was approved. APPROVAL OF MINJTES The minutes of May 5, 1999 Regular & Study) were approved. CLAPZS AND DEMANDS Resolution No.99-38 entitled, A RESOLUTION OF RESOLUTION NO.99-38 THE CITY COUNCIL OF THE CITY OF BALDWIN PARK ALLOWING CLAIMS AND DEMANDS AGAINST THE CITY OF BALDWIN PARK", was approved. Mayor Pro-Tern Van Cleave abstained on all warrants to Mr. Bill's Hardware financial conflict of interest). ORDINANCE NO.1139 Ordinance No.1139 entitled, AN ORDINANCE OF SPEED LIMITS ON CERTAIN THE CITY COUNCIL OF THE CITY OF BALDWIN STREETS PARK AMENDING TIThE 7, CHAPTER 73, OF THE BALDWIN PARK MUNICIPAL CODE RELATING TO SPEED LIMITS ON CERTAIN STREETS", on second reading, reading by title only and waiving hirther reading thereof, was approved. ADDITIONAL FUNDS REQLEST City Council approved an additional $5,000 for Central Park West project CIP 814. BIDS REJECTED All bids received were rejected and staff was authorized CIP 807, 808, AND 819 to re-advertise to solicit new bids for Ramona Boulevard La Rica Avenue to Merced Avenue), Dalewood Street Merced Avenue to Garden View Lane), Baldwin Park Boulevard Tracy Street to Dalewood Street), Street Improvement Project, Prop C" Project, CIP 807, 808, and 819. PURCHASE POLICE VEHICLES City Council waived formal bidding procedures and AND VEHICLE CONVERSION authorized staff to use the County's bid to purchase ten 10) police patrol vehicles and one pick-up truck from Wondries Chevrolet in an amount of $621,190. BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 3 The City Council awarded the contract for the conversion of the police patrol vehicles to Pursuit, Inc. in the amount of$12,100. REPLACE WINDOWS AT City Council waived the formal bidding procedures for POOL FACILITY the removal and replacement of windows in the Community Center pool facility and authorized staff to solicit informal bids. AWARD OF FACILITIES & City Council authorized staff to issue purchase orders for FLEET ANNUAL CONTRACTS the purpose of maintaining City Facilities and equipment FY 1999-2000 as follows: J.C. Plumbing-$30,000; El Rey Products Floor Finishing)-$20,000; Nichols Lumber Hardware)- $20,000; Monty's Electric-$30,000; Clippinger Chevrolet Auto Repair)- $20, 000; Ramona Auto Pans-s 15,000; Star Auto Pan s-S 10,000; West Covina Auto Body- $20,000; Certified Transmission-$10,000; and Ralph Villasenor Painting)-$25 000. SOLE SOLRCE CONTRACTS City Council awarded sole source contracts as follows: FACILITIES & FLEET USA Alarm System, Inc., in the amount of $12,500 for MAINTENANCE DWISION security services of City facilities and to San Diego Rotary Broom in the amount of $11,000 for purchase of equipment/supplies for City's street sweepers. ENGINEER'S REPORT Further reading was waived and Resolution No.99-40 CITYWIDE PARK MAJNI'ENANCE entitled, A RESOLUTION OF THE CITY COUNCIL ASSESSMENT DISTRICT OF THE CITY OF BALDWIN PARK; CALIFORNIA, RESOLUTION NO.9940 APPROVING THE ENGINEER'S REPORT FOR THE STREET PARK MAINTENANCE IN A CITYWIDE PARK MAINTENANCE ASSESSMENT DISTRICT IN THE CITY OF BALDWIN PARK", was adopted. ORDER ANNUAL ASSESSMENT Further was waived and Resolution No.99-39 entitled, A SET PLBLIC HEARING RE: A RESOLUTION OF THE CITY COUNCIL OF THE CITYWIDE PARK MAIN.ItNANCE CITY OF BALDWIN PARK; CALIFORNIA, RESOLUTION NO.99-39 DECLARING ITS INTENTION TO ORDER THE ANNUAL ASSESSMENT LEVY AND COLLECT ASSESSMENTS FOR CERTAIN INPROVEMENTS AND MAINTENANCE PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2 OF THE STREETS AND FHGHWAYS CODE OF THE STATE OF CALIFORNIA AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING" was adopted. Public Hearing date is scheduled for July 7, 1999. BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 4 ENGINEER'S REPORT CITYWIDE Further reading was waived and Resolution No.99-41 LANDSCAPING AND LIGIITING entitled, A RESOLUTION OF THE CITY COUNCW MAINTENANCE DISTRICT OF THE CITY OF BALDWIN PARK, CALIFORNIA, RESOLZON NO.99-41 APPROVING THE ENGINEER'S REPORT FOR STREET LANDSCAPING AND LIGIITING MAINTENANCE IN A LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT IN THE CITY OF BALDWIN PARK", was adopted. ORDER ANNUAL ASSESSMENT Further reading was waived and Resolution No.99-42 SET PUBLIC HEARING entitled, A RESOLUTION OF THE CITY COUNCW CITYWIDE LANDSCAPE AND OF THE CITY OF BALDWIN PARK, CALIFORNIA, LIGHTING DISTRICT DECLARING ITS INTENTION TO ORDER THE RESOLUTION NO.99-42 ANNUAL ASSESSMENT LEVY AND COLLECT ASSESSMENTS FOR CERTAIN IMPROVEMENTS AND MAINTENANCE PURSUANT TO THE PROVISIONS OF DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING" was adopted. Public Hearing is scheduled to be held July 7, 1999. TRANSFER AND CONVEYANCE Further reading was waived and Resolution No.99-43 STORM DRAIN NO.1512 entitled, ARESOLUTION OF THE CITY COUNCIL OF RESOLUTION NO.99-43 THE CITY OF BALDWIN PARK' CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT OF THE STATE OF CALIFORNIA TO ACCEPT ON BEHALF OF SMD DISTRICT A TRANSFER AND CONVEYANCE OF STORM DRAIN IMPROVEMENTS KNOWN AS MTD 1512, LINE A, PHASE lB IN THE CITY OF BALDWIN PARK FOR FURTHER OPERATION, MAINTENANCE, REPAIR, AND IMPROVEMENT, AND AUTHORIZE THE TRANSFER AND CONVEYANCE THEREOF", was adopted. CONSENT CALENDAR APPROVED A motion was made to approve the Consent Calendar as presented. MOTION: Councilman Pacheco SECOND: Mayor Pro-Tern Van Cleave Motion Carried APPROVAL TO PURCHASE In answer to Councilwoman Gair's question, Director VEHICLE TIRES Hathaway explained that the reason we are utilizing a vendor located outside of the City is because we are using a State authorized vendor. There are currently no BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 5 vendors in the city that are part of the state bidding/purchasing process. A motion was made to approve the purchase of vehicle tires from Y-Tire Sales, Azusa, in an approximate amount of $25,000 for fiscal year 1999-2000. MOTION: Councilwoman Gair SECOND: Councilman Pacheco Motion Carried PUBLIC HEARINGS ORDER OF AGENDA ITEM A motion was made to move Public Hearing Item No. T)" entitled, CONSIDERATION OF AN APPEAL OF WE PLANNING COMMISSION'S DECISION TO DENY A BANQUET FACILITY WITH DANCING AND LIVE ENTERTAINMENT CASE NO. CP557, APPELLANT: ROGELIO ROJAS", to the beginning of the Public Hearing Matters. MOTION: Councilwoman Gair SECOND: Councilman Pacheco Motion Carried APPEAL OF PLANNING Assistant Planner Harbin explained that we received a COMMISSION DECISION letter from Mr. Rojas' attorney, requesting that this be CASE NO. CP557 ROJELIO continued to the June 16, 1999 meeting. ROJAS Mayor Lozano declared the Public Hearing Open for public participation. There were no speakers. A motion was made to continue this matter to June 16, 1999. MOTION: Councilwoman Gair SECOND: Councilman Pacheco City Attorney explained that the City Clerk received a petition that was submitted in this matter. Said petition will be entered in the record as having been received. JOINT PUBLIC HEARING Director Cervantes presented the report as follows: Staff DISPOSITION & DEVELOPMENT and Agency Counsel have reviewed the DDA and AGREEMENT SAFRAN PROJECT) supplementary documentation. This project will provide a unique opportunity to leverage the Agency's limited resources with additional Los Angeles County, state and federal tax credit flinding. This project will allow the Developer and Agency to significantly upgrade the tire BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 6 Corak neighborhood as well as accomplish related Agency, Housing and Redevelopment goals. Staff recommends approval of the 33433 Summary Report, the proposed Disposition and Development Agreement with Thomas Safran & Associates and, Resolution No.99,45 entitled, A RESOLUTION OF THE CITY OF BALDWIN PARK APPROZING A DISPOSITION AND DEVELOPMENT AGREEMENT OF AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF BALDWIN PARK AND THOMAS SAFRAN & ASSOCIATES, PERTAINING TO THE DISPOSITION AND DEVELOPMENT OF THE REAL PROPERTY LOCATED OUTSIDE OF DESIGNATED REDEVLEOPMENT PROJECT AREAS AND MAKING FINDINGS THEREFORE AS REQUIRED BY HEALTH AND SAFETY CODE CALIFORNIA REDEVELOPMENT LAW 33433". Mayor Lozano declared the Public He&ing Open for public participation. David Ferguson, Thomas Safran and Associates, stated that the project has been modified since it was first presented and feels that it is better than originally planned. Of the 71 units, 35 will be for senior citizens and the other 35 will be for families. We have proposed to close the alley on Corak and redirect it to serve the residents on Corak and Francisquito. A swimming pool, a spa, and a public computer room library will all be provided. There will also be an on-site manager who will assist the tenants 24 hours a day. It is a two-story development. There is no access to the alley. Sidewalks, driveways, parkways, sprinklers are also going to be installed. If this is approved, local businesses receive benefit and local hiring is promoted. We will be committed to completing the street improvements first. City Attorney Olivas mentioned that a Councilmember has requested that individuals wishing to speak, state whether they are homeowners or renters. Cecilia Rojas, BaldwinZPark, renter, is against the housing complex. She feels we need more jobs to assist low- income families. The city needs to entice businesses to come to Baldwin Park. Ms. Rojas reminded the council that the interest of the city and it's residents is at stake. A BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 7 grassroots campaign against those approving this project will be started if council approves this project. Dan Trunco, Baldwin Park, said that we do not need to be a homeowner to speak regarding this subject. Mr. Trunco feels that we need more housing for senior citizens. He is in favor of the project. Isela last name not audible), Baldwin Park, homeowner, said that she is in favor of the project. Some of her neighbors have had to relocate due to the Auto Nation Project. It is necessary to have alternate housing arrangements for people that are forced to move. Tom Chargoy, Baldwin Park, said that he visited the Safrttn & Associates West Covina Housing Development. To his surprise; the development and it's upscale construction and maintenance, changed his negative opinion into a positive one. It was very well organized, and it is something that the community needs. He is in favor of the proposed Safran development. Stacy Perez, business owner, said that this is a great project. It gives children a healthy living environment. Any city would be lucky to live in the conditions that this project offers. Helen Hickam, Baldwin Park, homeowner stated that Corak Street is in deplorable condition. Mr. Ferguson has come along and offered to clean it up. She asks the Council to support this project and the dream of the residents to clean up this area. Maria Gonzalez, Baldwin Park, said that the Safran project is a good one however, the council should focus on attracting businesses, not additional housing. Lou Hickam, Baldwin Park, stated that the subject property is one that no one has ever had an interest to develop. Now, we have a developer who wants to beautifZ Corak Street. Mr. Hickam is in favor of the project and he urges the City Council to support the Safran project. Victor Santa Cruz, Baldwin Park, says that this project will not benefit the City of Baldwin Park. The city BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 8 already has too many apartments. We need to bring in more businesses to Baldwin Park. Manuel Perez, said that he is in favor of the Safran Project. It is the best thing that could happen to this town. Barney York, Baldwin Park, said that this project is a big help to Baldwin Park. Rosalva Gamboa, Baldwin Park, said that she originally was opposed to this project. After much review and public input, she is now in favor of the project. She urged the council to support Safran and Associates and the construction of the housing units. Salvador Gonzales, Baldwin Park, is opposed to these apartments. Apartments do not bring revenue to the City. Businesses bring revenue and the city needs to increase its revenue. Magdalena Polino, Baldwin Park, said she is in favor of the proposed project. The developer has offered many benefits that would help the residents of Baldwin Park. Cecilia Lee, Baldwin Park, is opposed to the project. The Council should concentrate on motivating existing business property owners to fix up their buildings and focus on anracting new businesses into town. Baldwin Park has enough apartments. We need more businesses. Diana Guzman, Baldwin Park, said that the proposed building site currently is used as a city dump. There is trash dumped there on a regular basis. Mr. Ferguson's project would help clean up this area. Also, the computer lab would be a great help to it's residents. Ms. Guzman is in favor of the project. Suzanne Brewer, Baldwin Park, is in favor of the project and said that the project would beautifi' this area and it would assist the residents with affordable housing in Baldwin Park. Sandy Ramos, Baldwin Park, is opposed the project. There are many other areas in Baldwin Park that need to be rehabilitated. We need big businesses in the city not housing projects. BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 9 Isajas Gamboa, Baldwin Park, is in favor of the project. He would rather have this than another business. Marco Perez, commented on the progress the City has made in the past four years and would like to see the city continue in a forward direction. He also supports the Safran Project. Seeing no Rirther interest, Mayor Lozano declared the Public Hearing Closed. Councilwoman Gair said that she will not use threats of being removed from the Council as a reason for voting for or against any matter. During her term of office, she vowed to make informed decisions and do a good job while in office. Councilwoman Gair irther stated that afler seeing several of David Ferguson's beautiflil projects, she is in favor of this project David Ferguson explained that because of the efforts of the City Council to create value where none existed before, the tax value of the new property tax increment) is higher than the previous increment. The commitment of flinds from the City of Baldwin Park buys the rents for a certain period of time only go up as incomes go up, not as rent goes up. Councilman Pacheco thanked the audience, staW, the Planning Commission, and David Ferguson for their comments and diligent work towards the preparation of this proposal. At this time, he is not in support of this project. The city has the option of rehabilitating empty homes, make them affordable and offer them to individuals of different income levels. Councilman Pacheco questioned several particulars of the Development Agreement, specifically the fact that we are flinding a 1.7 million loan to a development company, which has five years to look at different ways to reduce the amount of the loan. We should go to the LA County to use money that is available. The DDA is also giving a loan for 40-60 year loans at 3% interest. For how long will the houses have the management? Will the city need to comply to see the same quality in 15-20 years? BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 10 Mayor Pro-Tern Van Cleave said that he originally had a negative opinion of this project. However, after geffing a first hand look at one of Mr. Ferguson's other projects, his opinion has changed dramatically. These homes are not like the apartments. The caliber of these homes are types that individuals including I) would be willing to live in. The City Council works hard to make the best decisions possible for the city. Quoting from the Agency Loan to the Developer, the Fiscal Impact Report, and the Developers Responsibility Regarding Agency's Loan, Mayor Lozano said that we loan the 1.7 million dollars to the project, of which is an actual loan to the company. However, there is approximately five years in which Safran Corporation has to look at the various resources to pay the 1.7 million dollars. Mayor Lozano expressed his concern over the possibility of the Developer not being able to repay the 1,7 million- dollar loan within the five-year time frame. He also mentioned that the Promissory Note would be for a term of 40-60 years at the rate of 3% interest. Mayor Lozano continued to quote from the Evidence of Financing". He mentioned that he does not have the contract. He flarther stated that he does not see an advantage for the City of Baldwin Park in the contract. He continued quoting from the agreement entitled Subordination of Affordability Covenant" and feels that the contract could be written differently. Mayor Lozano said that he is not comfortable in taking this risk. He is not willing to gamble a million plus dollars. In response to Mayor Lozano's concerns, Director Cervantes clarified that the 1.7 million dollars represents three parts. The first part has already incurred about $144,000. The $200,000 represents a neighborhood improvement. The initial conveyance would be $1,355,000 that would go for the closing of parcels and the demolition and closing costs related. David Ferguson said that the 9% tax credit program is 55 years. Plus the five equals 60. The loan amounts must be BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 11 matching in term with the State and Federal tax credit requirements. If it is 9%, then it is a 60-year loan. If it is 4%, then it is a 35-40 year loan. He flirther stated that it is customary for the contract to be provided at a later date. The tax credit partner is typically the Edison Company and we have to get the credits, then we form the partnership, and it is sent on a tri-party arrangement for the city to sign off on. David Ferguson, additionally stated that his company does not have the resources to start the project without any city assistance. He said that the company already invested 5 million dollars into the property. The items, which Mayor Lozano has been quoting from the contract, are actual legal information transferred from other documents, which have been used for years. After lengthy discussion, Councilwoman Gair suggested to Mayor Lozano, that this matter be continued in an effort to discuss and address his concerns and other concerns pertaining to the Development Agreement and supporting documentation. A motion was made to continue this matter to the June 16Z meeting. MOTION: Mayor Pro-Tem Van Cleave SECOND: Councilwoman Gair Motion Carried SPECIFIC PLAN AND Mayor Lozano declared the public hearing OPEN for DEVELOPMENT PLAN public participation. There were no speakers. SAFRAN & ASSOCIATES PROJECT CORAK ST) A motion was made to continue item this matter to June 16, 1999. MOTION: Mayor Pro Tem Van Cleave SECOND: Councilwoman Gair Motion Carried ZONE CHANGE REQUEST Mayor Lozano declared the Public Hearing Open for FROM IC PD) TO IC(PD)(O) public participation. There were no speakers. APPLICANT: KEN SPIKER & ASSOCIATES CASE Z-509 A motion was made to continue this matter to June 16 1999. MOTION: Councilwoman Gair SECOND: Councilman Pacheco Motion carried BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 1999 06 02 CC MINòw @˜€° 1999 06 02 CC MINòw @˜€° CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 13 Approved as presented by the Council at their meeting held July 7, 1999. Rosemary M. Ramirez, Deputy City Clerk BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05 CC MIN JUNE 2 1999â›[H45 8City Council Minutes June 2, 1999 Page 12 REPORTS OF OFFICERS, COMMISSIONS, AND COMMITTEES SHOP BALDWIN PARK PROGRAM Transit Coordinator Bouton presented the report as follows: The Shop Baldwin Park" was a success. The kids took time to benefit the city. The posters, flyers, bumper stickers, discount books, and discounts will be seen continually. Upon question from Mayor Pro-Tern Van Cleave, Coordinator Bouton said that these posters might be placed in stores to be seen by the public. The Mid-Valley Consortium will hang a poster in their El Monte office. It was also suggested that the posters be used as a back drop for the Recreation Department's summer concert senes. COUNCIUSTAFF REQUESTS AND COMMUNICATIONS RECREATION GRANT Mayor Lozano requested sending a letter to State Senator APPLICATION Solis for the $1 million that could end up in Baldwin Park for a Teen Center. Director Nunez his staff are to be commended for a job well done. PUBLIC WORKS GRANT Councilwomen Gair said that Wendy Lemm-Harris received a $25,000 grant for the resilient service in Barnes Park. TRANSIT SERVICES GRANT Director Hathaway mentioned that $137,000 was received in a grant for Transit Coordinator Kara Bouton. QUIET ZONE MATTER Mayor Lozano asked staff to send a letter to residents in reference to the Metrolink and the quiet zone issue. MEETING WITH TRAILER Councilman Pacheco asked Steve to have a meeting with PARK TENANTS the residents of the Trailer park, since their permit is going to be up in November. CLOSED SESSION PUBLIC EMPLOYEE The item entitled LBHC EMPLOYEE DISCIPLINEI DISCIPLINEI DISMISSAL! DISMISSAL! RELEASE" was pulled from this agenda. RELEASE ADJOURN There being no other maffers for discussion, Mayor Lozano adjourned the meeting at 10:20 p.m. There were no objections. BIB] 37175-U01 CC-U02 MIN-U02 JUNE-U02 2-U02 1999-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 FO3915-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 BIB] 37263-U01 1999-U02 06-U02 02-U02 CC-U02 MIN-U02 LG1-U03 LI1-U03 FO3433-U03 FO3888-U03 DO3930-U03 C4-U03 MINUTES1-U03 10/11/2001-U04 ADMIN-U04 CITY-U05 COUNCIL-U05 MINUTES-U05