MINUTES

REDEVELOPMENT AGENCY AND CITY COUNCIL

REGULAR MEETING

NOVEMBER 22, 2005 - 6:00 p.m.

CALL TO ORDER

The regular meeting of the City Council and Redevelopment Agency of the City of Highland was called to order at 6:18 p.m. by Mayor Jones at the Donahue Council Chambers, 27215 Base Line, Highland, California.

The invocation was given by City Manager Racadio and the Pledge of Allegiance was led by Councilwoman Lilburn.

ROLL CALL

Present: Lilburn, McCallon, Timmer, Mayor Jones

Absent: Scott-Excused

SPECIAL PRESENTATIONS

Mayor Jones stated the City of Highland is celebrating its 18th birthday as the city was incorporated on November 24, 1987.

COMMUNITY INPUT

Ms. Lupe Gonzales stated she had recently received her property tax bill and listed was $275 for park maintenance and lighting. When she purchased her home, the developer stated the City of Highland was responsible for the maintenance and lighting of the park. There are other residents as well who utilize the park not only the residents in the tract. Her neighborhood residents would also like to see more retail stores in Highland.

City Manager Racadio stated the area in which she resides is an existing Landscape Maintenance District. The residents on Base Line are based upon benefits such as the strip along Base Line. The Council voted 16 to 17 years ago for a policy to improve the community. Therefore, block walls will be landscaped and maintained. The park is a drainage facility for the existing development. It is a community park. The city pays 40% of the costs and the benefits are going to the residents. There are over 20 various Landscape Maintenance Districts throughout the community. There are a number of upcoming potential projects that will provide shopping for our community.

COUNCIL/REDEVELOPMENT CONSENT CALENDAR

A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilman Timmer, to approve the consent calendar with the exception of #10 for further discussion. Motion carried on a roll call vote, 4-0, with Councilman Timmer abstaining from items #2 and #3 and Councilwoman Scott absent.

1. Waive the Reading of All Ordinances

Waived the reading of all Ordinances in their entirety and read by title only.

2. Minutes - October 25, 2005 City Council Regular Meeting

Approved Minutes as submitted.

3. Minutes - October 25, 2005 RDA Regular Meeting

Approved Minutes as submitted.

4. Warrant Register

Approved Warrant Register No. 408 for November 22, 2005, in the amount of $227,822.66 and payroll of $55,432.66.

5. Treasurer's Report for October 2005

Received and filed Treasurer's Report for October, 2005.

6. AB 1600 Development Impact Fee Annual Report for Fiscal Year 2004-2005 per Government Code Section 66006

Received and filed the AB 1600 Development Impact Fee Annual Report for Fiscal Year 2004-2005.

7. Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2005, Component Unit Financial Statements for Fiscal Year Ended June 30, 2005, and the Single Audit Report on Federal Awards

Received and filed the Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2005, and the Single Audit Report on Federal Awards.

8. Award of Multiple Bids for the Project Entitled "City of Highland Athletic Center - Phase II"

1. Awarded Bid Package No. 1 - General Construction to P.W. Construction, Inc.;

2. Awarded Bid Package No. 2 - Masonry to Kretschmar & Smith, Inc.;

3. Awarded Bid Package No. 3 - Sheet Metal Roofing, Skylights to R.B. Sheet Metal;

4. Awarded Bid Package No. 4 - Plaster, Gypsum Board and Insulation to Caston Plastering and Drywall, Inc.;

5. Awarded Bid Package No. 5 - Ceramic Tile to Inland Pacific Tile;

6. Awarded Bid Package No. 6 - HVAC to West-Tech Mechanical;

7. Awarded Bid Package No. 7 - Plumbing to Kincaid Plumbing, Inc.;

8. Awarded Bid Package No. 8 - Electrical to Blum Electric (declaring the bid of Nekota Power, Inc., as non-responsive); and

9. Authorized the Mayor to sign all necessary contracts once properly executed by the awarded parties.

9. Final Map Approval/Tract No. 15960 (North American Residential Communities)

Adopted Resolution No. 2005-058 to:

1. Approve Final Map of Tract No. 15960;

2. Accept the subdivision bonds; and

3. Authorize the Mayor to sign the standard subdivision agreement.

RESOLUTION NO. 2005-058

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF HIGHLAND, CALIFORNIA, APPROVING THE FINAL MAP AND

SUBDIVISION AGREEMENT, AND ACCEPTING BONDS AS

IMPROVEMENT SECURITY FOR TRACT 15960

(NORTH AMERICAN RESIDENTIAL COMMUNITIES)

11. Deed and Easement Acceptance/Pro-cast Products, Inc. (DRB 03-019)

1. Accepted the Grant Deed for Third Street extension and the Grant of Easement for Landscape Maintenance District Landscaping; and

2. Directed the City Clerk to record the Grant Deed and the Grant of Easement.

12. Easement Acceptance/Julian and Martha Monteon (DRB 03-015)

1. Accepted the Grant of Easement for Road and Drainage Purposes from Julian and Martha Monteon; and

2. Directed the City Clerk to record the Grant of Easement.

13. Grant of Easement for Tract 15960 (Violet Shealer, Bernardino & Elvira Castaneda)

1. Accepted the Grant of Easements for Road and Drainage Purposes from Violet Shealer and from Bernardino & Elvira Castaneda; and

2. Directed the City Clerk to record the Grant of Easements.

ITEMS REMOVED FROM THE CONSENT CALENDAR

10. Bid Award - Project 2003-19 "Orange Street Improvements"

Councilman Timmer inquired if the underground storm drain system is to be eliminated from this project and if the storm drain will now be above ground.

City Engineer Wong responded all drainage will be on the street. Also, on the northeast corner of Orange Street and Pacific Street, there is an existing drainage structure which will remain intact.

A MOTION was made by Councilman Timmer, seconded by Mayor Pro Tem McCallon, to award the contract for Project 2003-19, "Orange Street Improvements," to EGN Construction, Inc., in the amount of $224,743.25. Motion carried, 4-0, with Councilwoman Scott absent.

14. Proposed City of Highland Community Development Block Grant (CDBG) Applications for Fiscal Year 2006-2007

Economic Development Specialist Stater stated the County is currently accepting applications for the CDBG program. The City of Highland's allocation last year was $490,000 with an estimated 5% decrease next year. It has been the policy for 15% of the total to go to public service projects. The proposed projects are three continued programs which include an after school program, code enforcement program, economic development specialist position and pavement rehabilitation program.

A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilwoman Lilburn, to approve the following items:

• Approve the City's Public Service Application to continue the After School Activity Program and fund the YMCA's administration and operation of said Program at Cypress and Thompson Elementary Schools;

2. Approve the City's Construction/Community Improvement Application to continue the Housing Code Enforcement Program to support seventy-five percent (75%) of the salary and benefits for a full-time Code Compliance Officer, forty percent (40%) of the salary and benefits for a full-time Clerk;

3. Approve the City's Construction/Community Improvement Application to continue the Southwest Highland Neighborhood Revitalization Project for twenty-five percent (25%) of the salary and benefits of the Economic Development Specialist position;

4. Approve the City's Construction/Community Improvement Application for Pavement Rehabilitation at various neighborhoods adjacent to Elmwood Street, Del Rosa Avenue, Drummond Avenue, Cole Avenue, Cole Place, Cole Court and Fisher Avenue; and

5. Authorize the City Manager to sign and submit the above referenced CDBG Applications to the County Department of Community Development and Housing for consideration. Motion carried, 4-0, with Councilwoman Scott absent.

15. Extension of an Urgency Ordinance per Government Code Section 65858 Regarding the Issuance of Land Use Authorizations, Construction Permits or Entitlements for Parolee Homes throughout the City

Community Development Director Hartmann gave a brief review of the staff report.

A MOTION was made by Councilman Timmer, seconded by Councilwoman Lilburn, to issue the written report stating the measures taken to alleviate the need extension of Interim Urgency Ordinance No. 301 and to adopt Urgency Ordinance No. 303 prohibiting the issuance of land use authorizations, construction permits, or entitlements for Parolee Homes throughout the City per Government Code Section 65858. Motion carried, 4-0, with Councilwoman Scott absent.

ORDINANCE NO. 303

AN URGENCY ORDINANCE OF THE CITY OF HIGHLAND, CALIFORNIA,

EXTENDING ORDINANCE NO. 301 FOR A PERIOD NOT TO EXCEED

TEN (10) MONTHS AND FIFTEEN (15) DAYS, RESTRICTING THE

ESTABLISHMENT OF PAROLEE HOMES PENDING THE ESTABLISHMENT

OF ZONING, DEVELOPMENT STANDARDS AND DEFINITION FOR SAID

PAROLEE HOMES PURSUANT TO GOVERNMENT CODE SECTION 65858

16. A Proposed Street Name Change of Fifth Street to "Greenspot Road" from the State Route 30 on the west to Church Street on the east continued from the City Council Meeting of October 11, 2005

Community Development Director Hartmann stated Caltrans has stated it is feasible to change only the street name and not change the freeway signs. Caltrans will not mandate the changing of the freeway signs. Staff is recommending signs be posted at the bottom of the off ramps to direct traffic east and west. Properties west of the freeway to Victoria Avenue was not part of the advertised public hearing, therefore, before changing the name to Greenspot Road a formal public hearing must be held. There are 116 property owners and approximately 45 businesses which will be affected by the name change.

Mayor Pro Tem McCallon inquired if state law requires us to alter the freeway signs.

Community Development Director Hartmann responded evidently not. The freeway off ramp will identify Fifth Street and Greenspot Road. The street signs will be installed at a cost of $1,100 dollars.

Councilwoman Lilburn inquired if a large number of developers have requested a name change or just a minimal number of developers.

Mayor Jones responded three new developers have requested a name change to the east of the freeway.

Councilman Timmer inquired if the developers will help to absorb some of the costs.

Community Development Director Hartmann responded a developer has stated he would help to contribute toward the costs.

A MOTION was made by Councilman Timmer, seconded by Mayor Pro Tem McCallon, to adopt Resolution No. 2005-059 changing that portion of Fifth Street from State Route 30 to Church Street to "Greenspot Road" and to pursue the option of changing only the street signs while working with Caltrans to complete the project. Motion carried, 3-1, with Councilwoman Lilburn dissenting and Councilwoman Scott absent.

RESOLUTION NO. 2005-059

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF HIGHLAND, CALIFORNIA, APPROVING THE

STREET NAME CHANGE OF FIFTH STREET TO

"GREENSPOT ROAD" FROM THE STATE ROUTE 30

ON THE WEST TO CHURCH STREET ON THE EAST

COUNCIL/REDEVELOPMENT LEGISLATIVE

17. Second Reading of Ordinance No. 302 to Re-zone approximately 1.87 Acres of Land Associated with Tentative Tract Map 17590 (also referenced as ZC-05-002, GPA-05-002, and SUB-05-002) as Planned Development (PD) within the City of Highland Generally Located on the south side of Base Line between McKinley Street and Victoria Avenue

A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilman Timmer, to adopt Ordinance No. 302 to amend the Official Zoning Map, pursuant to Title 16 (Land Use and Development) of the City's Municipal Code as adopted by the City of Highland. Motion carried, 4-0, with Councilwoman Scott absent.

ORDINANCE NO. 302

AN ORDINANCE OF THE CITY OF HIGHLAND, CALIFORNIA ADOPTING ZONE CHANGE (ZC-05-002) TO RE-ZONE APPROXIMATELY

1.87 ACRES OF THE SUBJECT PARCELS AS PLANNED DEVELOPMENT (PD) WITHIN THE CITY OF HIGHLAND GENERALLY LOCATED ON THE SOUTH SIDE OF BASE LINE BETWEEN

MCKINLEY STREET AND VICTORIA AVENUE

APPLICANT: GARDNER CONSTRUCTION AND DEVELOPMENT INC.

18. One Appointment to the Planning Commission

Councilman Timmer nominated John Gamboa.

A MOTION was made by Mayor Pro Tem McCallon, seconded by Mayor Jones, to appoint John Gamboa as a member of the public to the Planning Commission. The term will expire in May, 2007. Motion carried, 4-0, with Councilwoman Scott absent.

A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilwoman Lilburn, to declare a vacancy on the Design Review Board and to direct staff to advertise for the position in accordance with the Maddy Act. Motion carried, 4-0, with Councilwoman Scott absent.

19. Update on SANBAG, SCAG, Omnitrans, Work Program and Regional/Legislative Issues/Development Issues

Mayor Pro Tem McCallon stated he had attended a League of California Cities conference and the information received was very valuable. A number of goals were adopted for the coming year and will include infrastructure, housing and protecting redevelopment ability.

City Manager Racadio stated LAFCO has informed us that the City of Highland does have a seat on the committee for the consolidation. They have asked us to present a designated representative and an alternate if we so choose. At the last Council meeting, Councilman Timmer was appointed as the representative. If Council chooses to appoint an alternate, we need to do so at this time.

Mayor Jones stated he would be willing to be appointed as the alternate.

City Manager Racadio stated Council has approved the athletic center and the covering of the therapy pool. The project cost is $5.3 million which includes construction of the gym and the covering of the therapy pool. The cost of the cover for the therapy pool is $1 million of which $500,000 was given by a grant from Senator Jim Brulte. The suggestion is to name the pool for Senator Jim Brulte.

A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilwoman Lilburn, to name the therapy pool located at the athletic center after Senator Jim Brulte. Motion carried, 4-0, with Councilwoman Scott absent.

Councilman Timmer stated an action was taken in San Francisco prohibiting military recruiters to enter any of their schools. He would like staff to research this incident and advise Council to take appropriate action for the City of Highland.

Councilman Timmer stated he would like to thank City Engineer Wong and his staff for the outstanding job on the 14th Street project.

Community Development Director Hartmann stated Mission Development is wrapping up their planning documents and it is expected for them to file in the first part of 2006. The San Manuel Band of Mission Indians project has been filed with a completion letter. Gardner Development is constructing a commercial venture at Base Line and Stoney Creek. CVS/Baker project has a new representative, therefore, we have to inform the new representative of all the procedures and updates. There is some interest with the Arden Avenue/Guthrie Street relocation. Economic Development Specialist Stater has been in contact with the school district almost on a weekly basis. Centex project at the end of Base Line is almost completed. Standard Pacific is constructing 250 homes and there are approximately 300 homes under construction at various tracts. There are some older substandard lots which are 25 feet in width and single family home permits have been issued for development at these properties. There is a great deal of infill development west of the freeway. Valencia Lea is moving along well. Calvary Chuch project is moving forward as well.

20. San Bernardino International Airport Authority and IVDA

None to report.

ANNOUNCEMENTS

November 28 - 1:00 p.m.-6:00 p.m. Blood Drive at the Community Center

December 3 - 8:00 a.m.-12:00 p.m. Highland Improvement Team Project

CLOSED SESSION

At 7:14 p.m., the Redevelopment Agency and City Council convened into closed session regarding the following:

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

Significant exposure to litigation pursuant to Government Code Section 54956.9(b)(1):

Two cases.

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

Initiation of litigation pursuant to Government Code Section 54956.9(c):

One case.

CONFERENCE WITH REAL PROPERTY NEGOTIATOR

Pursuant to Government Code Section 54956.8 regarding the following property:

Property: Real property owned by Dios La Iglesia De Sacred Holy Sacramento Rev. James O'Leary, Esq. and/or L. James McCarty and identified as Assessor's Parcel Numbers 1191-471-62 and 63.

Negotiating Parties: Sam Racadio, City of Highland

Dios La Iglesia De Sacred Holy Sacramento Rev. James O'Leary, Esq. and/or L. James McCarty.

Under Negotiation: Instruction to Negotiators concerning price.

Property: APN 1201-331-03

Negotiating Parties: Sam Racadio, City of Highland & First American Title Insurance Co.

Under Negotiation: Instruction to City's negotiator concerning price and terms of payment.

Property: APN 1201-331-04

Negotiating Parties: Sam Racadio, City of Highland & First American Title Insurance Co.

Under Negotiation: Instruction to City's negotiator concerning price and terms of payment.

Property: APN 1201-341-016

Negotiating Parties: Sam Racadio, City of Highland & First American Title Insurance Co.

Under Negotiation: Instruction to City's negotiator concerning price and terms of payment.

Property: APN 1201-341-17

Negotiating Parties: Sam Racadio, City of Highland & First American Title Insurance Co.

Under Negotiation: Instruction to City's negotiator concerning price and terms of payment.

At 8:03 p.m., the City Council and Redevelopment Agency convened into open session, with all members present, making no announcements.

ADJOURN

There being no further business, Mayor Jones adjourned the meeting at 8:05 p.m.

Submitted By: Approved By:

Betty Hughes Ross B. Jones

City Clerk Mayor