CITY OF HIGHLAND
SPECIAL MEETING OF THE
CITY COUNCIL
AGENDA
CITY COUNCIL MEMBERS
LARRY McCALLON, MAYOR
PENNY LILBURN, MAYOR PRO TEM
JESSE CHAVEZ, COUNCIL MEMBER
ANAELI SOLANO, COUNCIL MEMBER
JOHN P. TIMMER, COUNCIL MEMBER
SPECIAL MEETING
January 10, 2023
6: 30 p.m.
City Hall
Donahue Council Chambers
27215 Base Line
Highland, California
STAFF
Joseph A. Hughes - City Manager
Chuck Dantuono - Director of Administrative Services/ City Treasurer Betty Hughes - City Clerk
Lawrence Mainez - Community Development Director
Carlos Zamano - Public Works Director/ City Engineer
Maricela Marroquin - City Attorney
MISSION STATEMENT
Highland is dedicated to the betterment of the individual, the family, the neighborhood and the community.
TheCityCouncilandthestaffof Highlandarededicatedto providingthequalityof publicfacilitiesand services that its citizens are willing to fund and will do so as efficiently as possible.
Visit the City' s website at: www. citvofhighland. orq
CITYOFHIGHLAND127215BASELINEI HIGHLAND, CALIFORNIA923461 (909) 864-6861m; (909) 862- 31809
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The City of Highland complies with the Americans with Disabilities Act of 1990. Please contact the City Clerk' s office at ( 909) 864- 6861, ext. 226, at least 72 hours prior to the meeting for any requests for reasonable accommodation to include interpreters.
Pursuant to Government Code Section 54957. 5, any disclosable public records related to an open session item on a regular meeting agenda and distributed by the City of Highland to all or a majority of the City Council less than 72 hours prior to that meeting are available for public inspection at City Hall, 27215 Base Line, Highland, CA 92346, during normal business hours.
Submission of Public Comments for ITEMS ON THIS AGENDA ONLY: For those wishing to make public comments by email, please submit your comments by email to be read aloud at the meeting. Email comments must be submitted by 5:30 p.m. on January 10, 2023, to the City Clerk at pubIiccomment( a-)-cityofhighland. org. If youare submittinga publiccomment pertaining to anitemon theJanuary10, 2023agenda, please identify the agendaitem numberin thesubjectline. Membersof thepublicwill be permittedto makepublic comments in person. CALL
AND NOTICEOF A SPECIALMEETING OF THE
HIGHLANDCITY COUNCILDonahue
Council Chambers — City Hall 27215
Base Line, Highland, California January
10, 2023 — 6: 30p. m. NOTICE
IS HEREBYGIVEN that a specialmeetingof theHighlandCity Councilis hereby called to beheldon January10, 2023, at 6: 30p. m. in theCityCouncilChambersof City Hall locatedat 27215Base Line, Highland, California. Said specialmeetingshall be for the purposeof conductingbusiness in accordancewith the attachedAgenda. AGENDA CALL
TO ORDERROLL
CALL PUBLIC
COMMENT (LIMITED TO ITEMSON THIS AGENDAONLY) To
addressthe City Council, please completea speakerform locatedat theentrance and give it totheCity Clerkprior to thebeginningof themeeting. Your name will be calledwhen it is yourturn to speak. Those wishingto speakon an item ON THEAGENDAwill be heardat thistime. State Law prohibitsthe City Council from takingaction on anyitem not on theagenda. Individual speakers are limited to threeminutes each.
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Comments received via email by January 10, 2023, 5:30 p.m., will be read into the record, provided that the reading shall not exceed three ( 3) minutes. Email comments submitted by a speaker that also appears in person to address the same matter will not be read into the record.
CITY COUNCIL LEGISLATIVE
Request for Deferment of Development Impact Fees for Ninety ( 90) Days by Dan Moore Electric located at 27002 Meines Street ( DRA- 19- 008) RECOMMENDATION: That the City Council direct the City Attorney to draft a Development Impact Fee Deferral Agreement for the City Manager' s signature. 9 10111:7T
I, Betty Hughes, City Clerk, certify I caused to be posted this Agenda on or before January 9, 2023, by 6:30 p.m., on our website at www. cityofhi. qhland. org and in the following designated areas:
Highland Branch Library
7863 Central Avenue
Fire Station No. 1
26974 Base Line
Date: January 9, 2023
Betty Hughes, MMC
City Clerk
City Hall
27215 Base Line
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STAFF REPORT
TO THE CITY COUNCIL
SPECIAL MEETING
DATE: January 10, 2023
FROM: Joseph A. Hughes, City Manager
PREPARED BY: Lawrence A. Mainez, Community Development Directorg" Maricela Marroquin, City Attorney
SUBJECT: Request for deferment of Development Impact Fees for ninety ( 90) days by Dan Moore Electric located at 27002 Meines Street ( DRA- 19- 008)..
RECOMMENDATION: Staff recommends the City Council direct the City Attorney to draft a Development Impact Fee Deferral Agreement for the City Manager' s signature.
FISCAL IMPACT: The costs associated with this request are unknown at this time. Unknown, but likely minimal, costs are: Staff and City Attorney review time drafting the subject deferral agreement. The Development Impact Fee Deferment Agreement will allow Dan Moore Electric ninety ( 90) days to pay the required Development Impact Fee in the amount of $ 288, 604. 45 and authorize the City to release a Temporary Certificate of Occupancy.
PUBLIC NOTICE: As required by City Council Resolution, the meeting agenda was posted at the City's three (3) designated posting locations. In addition, the staff report was also posted on the City' s website. No further notice is required.
ENVIRONMENTAL REVIEW:
Pursuant to the California Environmental Quality Act ( CEQA), staff is recommending the City Council determine that any proposed Development Impact Fee Deferment Agreement is exempt from the requirements of CEQA and CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the proposedDevelopmentImpactFeeDefermentAgreementwill havea significanteffect on the environment. The proposed Development Impact Fee Deferment will not result in a permanentalteration of property nor the constructionof any new or expanded structures.
Approved Motion
Denied Ayes
Continued Noes
Tabled Abstain
Absent
ty Clerk
Second Agenda Item No.
File No.
City MaKager
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City Council Meeting of
January 10, 2023
Dan Moore Electric DIF Deferment 1- 10- 23
DISCUSSION:
On December 19, 2022, the City received a letter from Dan Moore Electric outlining their concerns about the disclosure of the City's Development Impact Fees ( See Attachment A).
On January 10, 2023, the Finance Subcommittee heard Dan Moore Electric's concerns and considered staffs suggestion to recommend the City Council consider a Development Impact Fee Deferral Agreement. The recommended Deferral Agreement would provide Dan Moore Electric ninety ( 90) additional days to pay the required Development Impact Fee in the amount of $ 288, 604. 45 [ Industrial Use: $ 13.487 per sf x 13, 850 sf + Office Use: $ 17.706 per sf x 5,750 sf = $ 288, 604. 45].
Dan Moore Electric has already commenced a private loan process to pay the City's Development Impact Fee but needs additional time to complete that process. Once the Deferment Agreement is executed, the City's Building Official will issue a Temporary Certificate of Occupancy.
Attachments:
A. Dan Moore Electric letter date stamped December 19, 2023 2 -2-
Attachment A
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MILI
2_ -
L
77M --,
DEC19 2022
CITYOFHIGHLAND
I amanelectricalcontractor. I ambuilding an office/warehousein the city. The building is" 99%" complete. For me, it has been a very long and expensive process.
In determiningmy "go" or "nogo" attheinitial stages, thecitymetwith meto review variousconditions. Among thoseconditionswerediscussionsregarding storm water, fire department access, fire hydrants, turn -around areas, parking, planters, utilities, firesprinklers, streetimprovements, set -backs, etc., etc. Thelist waslongandexhaustive, butonecomponentwasnotcoveredin detail.
A few weeksago, I hadanover-the-countermeetingwith staff, andI waspresented for the first time — a "billing" for over $288,000.00for DevelopmentImpactFees DIF"). At first, I wasjustthinkingit wassomesortofjoke, buttherealityof the situationbecameclearoverthenext hoursanddays. If I didn't paytheDIF, I was not going to get occupancy.
Theinitial issueisthecity'sprocessin full andtransparentdisclosureof DIF.
Additional issues come from this core issue.
City staffhasrepeatedlyassertedthatinitial meetingswith "developers" always includes a detailed discussion about " conditions", and always " covers" DIF because this issue is always important to the " bottom line" on development projects.
Moreover, in follow-upconversationswith staff, theyhaveassertedthatin 20 years, thisisthefirstandonlytimethatDIFhashadthisimpactatthisstageofthe project.
First, I think thereareplenty of humanfactor studiesthatwould discounttheterm, always". Second, a20-yearrecordlendsitselfto a first -time -evermistake. Thisis whypilotsusecheck -listsandwhythereareformalTransmittalLettersof important documents. To me, a bill for $ 288, 000. 00 + is an important document.
I amverygoodattakingnotesandkeepingrecords, whileI didsigntheproject conditions, I did not receive the " DIF Table" handout. It is not in my records. 1833 Riverview Drive, Ste E
San Bernardino, CA 923408
Office ( 909) 888- 8639 Fax ( 909) 888- 8640
Lice. No. 938017
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Consistentwithmyrecords, thecity doesnothaveanyrecordof anykind showing thatI didgetthehandout, andtheycertainlydonothaveasignedreceipt, transmittal, or otherdocumentfrom me acknowledgingthetransmissionof theDIF handout or calculations, or even an internal checklist of handouts.
My point is pretty simple... The DIF onmy project is oneof themost expensive single -line items. I canassureyou that it would haveweighedheavily on my "go"/ no-go" decisionprocess, hadtheamountbeenfullyandtransparentlydiscussed.
Essentially, theConditionsareaContractwith thecity, andmypositionis thatI didn't getall thepagesto thatcontract. Thecitystaffposition, basedon discussions and emails, is that no mistakes were made by the city, someone on " my team" caused a " communication breakdown", and " buyer beware" ( I should have figured out that I would owe over $ 288, 000. 00 at some point.) Initially, I requestedadditionaltimeto refinancemyprojectandpaytheDIF.
However, I' ve beeninformedthat the committeeandcouncilwill not be reviewing thisissuein full until atleastFebruary, andI needoccupancybyJanuary31, 2023.
The loan process (as typical) takes 6 — 8 weeks, subsequently I don' t have this amountof timepriorto needingto vacateourcurrentleasespaceonRiverviewDr. in San Bernardino.
In lightof thecity'stimeline, andtheconflictwith myown, I'mtryingto beclear on the following points:
Protest Period -
I' m not sure what rules or casesare involved, but I think my " protest period" startswhenI receivedthebill, andI amcertainlyprotesting — the
disclosure" /" documentation" process/procedures, andtimeliness.
DIF Study and other dated documents -
1833 Riverview Drive, Ste E
San Bernardino, CA 923408
Office ( 909) 888- 8639 Fax ( 909) 888- 8640
Lice. No. 938017
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I amalsoprotestingtheamountof thevariousDIF contributionsand2006 studyandotherdocumentsrelatedtotheDIF Calculations. It seemsto me thata 16-year-old studyis extremelyout-of-date. I amhopefulthecity has updated other things since 2006 and I find it questionable that the DIF are still accurate. A more detailed challenge will be presented to the committee or council.
Payment Under Protest -
Again, I' m not sure what rights I may have, or what rules or casesapply, butI wanttoattempttopreservemyrightto paytheDIFUnderProtestand to continue the Appeal Processthrough the committee and council.
Thankyou for your considerationof thesepoints.
Z I1& d2Q
Dan Moore
Owner
1833 Riverview Drive, Ste E
San Bernardino, CA 923408
Office ( 909) 888- 8639 Fax ( 909) 888- 8640
Lice. No. 938017
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