Highland City Council
October 8, 2024

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CITY COUNCIL AGENDA
Regular Meeting
October 8, 2024 at 6: 00 PM
City Hall Donahue Council Chambers
27215 Base Line, Highland CA 92346

COUNCILMEMBERS
Penny Lilburn, Mayor
District 3
Larry McCallon, Mayor Pro Tern
District 5
Jesse Chavez -Cordova, Councilmember
District 1
Anaeli Solano, Councilmember
District 2
John P. Timmer, Councilmember
District 4
STAFF
Carlos Zamano, City Manager
Lawrence Mainez, Community Development Director
Leticia Nava -Cruz, Director of Administrative Services/ City Treasurer Octavio Duran Jr., Public Works Director/ City Engineer Maricela Marroquin, City Attorney
Alondra Munoz, City Clerk

MISSION STATEMENT
Highland is dedicated to the betterment of the individual, the family, the neighborhood and the community.

The City Council and the staff of Highland are dedicated to providing the quality of public facilities and services that its citizens are willing to fund and will do so as efficiently as possible. 909) 864- 6861 www. cityofhighland. org
1 City Council Regular Meeting Agenda October 8, 2024
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance, 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 accommodations, including 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.

Levine Act: Pursuant to Government Code Section 84308, any party to a City proceeding must disclose on the record any campaign contributions made to a member of the City Council ( or commission) in excess of $250 in the past 12 months. This disclosure requirement includes contributions by the party' s agent and aggregated contributions from persons or entities related to the party. Please make the disclosure as soon as possible, but no later than the beginning of the proceeding.

CITY COUNCIL REGULAR MEETING
OCTOBER 8, 2024 - 6: 00 p. m.

AGENDA

CALL TO ORDER

INVOCATION

PLEDGE OF ALLEGIANCE

ROLL CALL

REPORT FROM CLOSED SESSION

PUBLIC COMMENT ITEMS NOT ON THE AGENDA
To address the City Council, please complete a speaker form located at the entrance and give it to the City Clerk prior to the beginning of the meeting. Your name will be called when it is your turn to speak. State Law prohibits the City Council from acting on any item not on the agenda.

Individual speakers are limited to three ( 3) minutes each.

For those wishing to make public comments by email to be read aloud at the meeting, please submit your comments by 5: 00 p. m. on October 8, 2024, to the City Clerk at publiccomment( a_cityofhighland. org. Ifyou are submitting a public comment pertaining to an item on the October 8, 2024 agenda, please identify the agenda item number in the subject line.

Emailed comments submitted by a speaker that also appears in person to address the same matter will not be read into the record.

CITY COUNCIL CONSENT CALENDAR

1. Waive the Reading of All Ordinances
RECOMMENDATION: Waive the reading of all Ordinances in their entirety and read by title only.

2. Minutes - September 10 2024 Joint Regular City Council & Special Housing Authority Meeting
RECOMMENDATION: Approve the Minutes as submitted.

Pagel of 5
2 City Council Regular Meeting Agenda October 8, 2024

3. Minutes - September 12 2024 City Council Special Meeting RECOMMENDATION: Approve the Minutes as submitted.

4. Warrant Register
RECOMMENDATION: Approve Warrant Register No. 770 for October 8, 2024, in the amount of $2, 172, 775. 33 and Payroll of $135, 368. 62.

5. Treasurer' s Report for August 2024
RECOMMENDATION: That the City Council receive and file Treasurer' s Report for August 2024.

6. Claim Consideration - Linda Beniamin
RECOMMENDATION: George Hills Company recommends the City Council reject the claim.

7. Declare Three ( 3) Seats Vacant on the Historic and Cultural Preservation Board RECOMMENDATION: That the City Council1) Declare three ( 3) seats vacant on the Historic and Cultural Preservation Board; and
2) Direct the City Clerk to advertise the vacancies on the Historic and Cultural Preservation Board.

8. Selection of an Event Date and Budget for the 27th Annual Citrus Harvest Festival RECOMMENDATION: The Historic and Cultural Preservation Board recommends the City Council:
1) Select March 29, 2025 as the Event Date for the Citrus Harvest Festival, with a Rain Date of April 5, 2025; and
2) Adopt the budget.

9. Resolution No 2024- 1 a Resolution of the City Council of the City of Highland, California Reaffirming and Extending Proclamation of a Local Emergency in the City of Highland as a Result of the Line Fire
RECOMMENDATION: That the City Council adopt Resolution No. 2024- , extending the Proclamation of a Local Emergency in the City of Highland because of the Line Fire.

10. Proposed City of Highland Community Development Block Grant ( CDBG) Applications for Fiscal Year 2025/ 2026 Including One for Enhanced Code Enforcement and One for Pavement Rehabilitation and Ancillary Work on Two Streets: Sparks Street between Victoria Avenue and Cunningham Street and 11th Street between Los Feliz Drive and Victoria Avenue
RECOMMENDATION: That the City Council:
1) Approve the City' s application for Enhanced Code Enforcement that supports a portion of the salary and benefits of a Code Enforcement Officer, Administrative Assistant, and Community Development Director; and
2) Approve the city' s application to construct pavement rehabilitation and ancillary work on Sparks Street and Victoria Avenue within the CDBG Low -Moderate Income eligible block area boundaries.

3 City Council Regular Meeting Agenda October 8, 2024

CITY COUNCIL PUBLIC HEARING
The order of business for Public Hearings shall be.
1) Mayor opens Public Hearing;
2) Staff presentation.-
3) Applicant/ Representative presentation;
4) Speakers in favor ofproposal;
5) Speakers in opposition to proposal,
6) Applicant rebuttal;
7) Mayor closes Public Hearing;
8) Council discussion, motion and vote.

Once the Public Hearing is closed, no further testimony is taken.

11. General Plan Amendment ( GPA 24- 001) and Zone Change ( ZC 24- 001) from Low Density/ Single- Family Residential ( LD/ R- 1) to Planned Development ( PD); Conditional Use Permit ( CUP 23- 010) for the Development of a 79- unit Small Lot Single - Family Community; Design Review Application (DRA 24-003) for the Related Site Plan Building Elevations Landscaping and Grading Plan; Tentative Tract Map No. 20693 ( TTM 24- 001) to Subdivide Three ( 3) Parcels Into 79 Single -Family Lots and Common Areas; Adoption of a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program ( EVN 24- 002) for the Adoption of Mitigation Measures for Potential Impacts RECOMMENDATION: The Planning Commission recommends the City Council:
1) Adopt Resolution No. 2024- , approving a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program ( ENV 24-002), and direct staff to file a Notice of Determination with the San Bernardino County Clerk of the Board of Supervisors;
2) Adopt Resolution No. 2024- approving General Plan Amendment (GPA 24- 001) to change the land use designation of the site from Low Density ( LD) Residential to Planned Development ( PD);
3) Introduce Ordinance No. , approving Zone Change ( ZC 24- 001), changing the zoning designation of the site from Single -Family ( R- 1) Residential to Planned Development ( PD);
4) Adopt Resolution No. 2024- approving Conditional Use Permit ( CUP 23- 010) for a 79- unit single- family Planned Development and related improvements, subject to the Conditions of Approval and Findings of Facts; 5) Adopt Resolution No. 2024-, approving Design Review Application (DRA 24- 003) for the Site Plan, Building Elevations, Conceptual Grading Plan, and Conceptual Landscape Plan for the residential development, subject to the Conditions of Approval, Design Directives, and Findings of Fact; and 6) Adopt Resolution No. 2024- , approving Tentative Tract Map No. 20693 TTM 24- 001) for the subdivision of three ( 3) parcels into 79 single- family lots and common areas, subject to Conditions of Approval and Findings of Fact.

4 City Council Regular Meeting Agenda October 8, 2024

CITY COUNCIL LEGISLATIVE

12. Rejection of Bids - Bid No. 2024- 05 " Bledsoe Creek Storm Drain ( Line " A") and Slope Repair" ( Protect No. sdr17001)
RECOMMENDATION: That the City Council:
1) Reject all bids;
2) Direct staff to modify the project scope as necessary; and 3) Re -advertise for construction bids at a later date for Bid No. 2024- 05, " Bledsoe Creek Storm Drain ( Line " A") and Slope Repair" ( Project No. sdr17001)

13. Construction and Construction Management Services Contract Awards - Bid No. 2024 02 " Highland Natural Parkland Trail Project" ( Project No. tra20001) RECOMMENDATION: That the City Council:
1) Award the construction contract for Bid No. 2024- 02, " Highland Natural Parkland Trail Project" to the responsible low bidder, HL Hitchcock Construction, Inc., in the amount of $ 1, 434, 882. 50;
2) Approve the proposal from Engineering Resources of Southern California, Inc.

ERSC) to provide Construction Management and Inspection Services ( CM Services) in the amount of $ 190, 011. 00;
3) Authorize the City Manager to approve amendments to the ERSC task order up to 10% of the proposal amount; and
4) Approve a budget adjustment to transfer $ 229, 178 from the General Capital Financing fund balance ( Account No. 023- 2510) to be expended from the Trails Construction fund ( Account No. 023- 3890- 6816).

14. City Manager Report and Comments ( Work Program Regional/ Legislative/ Development Issues, Subcommittees, etc.)
RECOMMENDATION: Discussion and possible action.

15. Council Member Comments (Agency/Committee/AB 1234 Reports, District Updates, etc.) RECOMMENDATION: Discussion and possible action.

ANNOUNCEMENTS

CLOSED SESSION

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code Section 54956. 9( d)( 2) and/ or ( d)( 3):

One case.

ADJOURN
Regular Meetings
Effective March 1, 2022, pursuant to Resolution No. 2022-001, the regular City Council meetings will be held once a month on the second Tuesday of each month. The next regular meetings of the City Council for 2024 are as follows: November 12; December 10.

5 City Council Regular Meeting Agenda October 8, 2024
I, Alondra Munoz, City Clerk, certify I caused to be posted this Agenda on or before October 3, 2024, by 5: 30 p. m., on our website at www. cityofhighland. org and in the following designated areas:

Highland Branch Library
7863 Central Avenue
Date: October 3, 2024
Fire Station No. 1 City Hall
26974 Base Line 27215 Base Line
4 ,
Alondra Mu" z
City Clerk ff

6 STAFF REPORT

TO THE CITY COUNCIL
DATE: October 8, 2024
FROM: Carlos Zamano, City Manager
PREPARED BY: Alondra Munoz, City Clerk
SUBJECT: Waive the Reading of All Ordinances
RECOMMENDATION: Waive the reading of all Ordinances in their entirety and read by title only.

Approved Motion Second Agenda Item No.

Denied Ayes
Continued Noes File No.

Tabled Abstain
Absent
City City Manager
1 STAFF REPORT

TO THE CITY COUNCIL
DATE: October 8, 2024
FROM: Carlos Zamano, City Manager
PREPARED BY: Alondra Munoz, City Clerk
SUBJECT: Minutes - September 10, 2024 Regular Meeting
RECOMMENDATION: Approve the Minutes as submitted.

Approved Motion
Denied Ayes
Continued Noes
Tabled Abstain
Absent
Second Agenda Item No.

File No.

C49 City anager
1 Joint CC Regular & HA Special Meeting Minutes September 10, 2024

CALL TO ORDER
The regular meeting of the City Council of the City of Highland was called to order at 6: 00 p. m. by Mayor Lilburn at the Donahue Council Chambers, 27215 Base Line, Highland, California.

The invocation was given by Pastor Al LeBrun, Immanuel Baptist Church, and the Pledge of Allegiance was led by Councilmember Solano.

ROLL CALL

Present: Chavez -Cordova, Lilburn, McCallon, Solano, Timmer

Absent: None

REPORT FROM CLOSED SESSION
None

SPECIAL PRESENTATIONS
Battalion Chief Brown from the Highland Fire Department gave a brief update on the Line Fire.

Mayor Lilburn presented a Proclamation proclaiming the month of September 2024 as Childhood Cancer Awareness Month.

Bryan Anderson, Supervising Analyst from the County of San Bernardino Community Development & Housing Department ( CDH), gave a brief presentation regarding the Community Development Block Grant ( CDBG) 5 Year Consolidated Plan.

PUBLIC COMMENT ( ITEMS NOT ON THE AGENDA)
Chris Nielsen and Jane Bouch representing the Highland Chamber of Commerce spoke regarding upcoming events.

Chris Carrillo, Board of Directors from East Valley Water District expressed gratitude to the Highland Emergency Response Team for their prompt response during the Line Fire.

Fatima Rahman thanked the Highland Emergency Response Team for their response during the Line Fire.

CITY COUNCIL CONSENT CALENDAR
A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilmember Chavez -Cordova, to move Item No. 17 from the City Council Legislative Calendar to the City Council Consent Calendar. Motion carried 5- 0.

A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilmember Solano, to approve the consent calendar, with Mayor Lilburn abstaining from Item No. 12.

Motion carried on a roll call vote, 5- 0.

2 Joint CC Regular & HA Special Meeting Minutes September 10, 2024 Waive the Reading of All Ordinances
Waived the reading of all Ordinances in their entirety and read by title only.

2. Minutes - August 13, 2024 City Council Regular Meeting Approved the Minutes as submitted.

3. Minutes - August 22, 2024 City Council Special Meeting Approved the Minutes as submitted.

4. Minutes - August 29, 2024 City Council Special Meeting Approved the Minutes as submitted.

5. Warrant Register
Approved Warrant Register No. 769 for September 10, 2024, in the amount of 2, 388, 770. 99 and Payroll of $239, 213. 02.

6. Treasurer's Report for July 2024
Received and filed Treasurer' s Report for July 2024.

7. Year -End Budget Adjustments for Fiscal Year 2023/ 2024 Approved the Fiscal Year 2023/ 2024 Year -End Budget Adjustments for Expenditures and Revenues.

8. Second Reading of an Ordinance to Amend Title 5, Chapter 5. 04 Sections 5. 04. 160 and

5. 04. 240 of the City of Highland Municipal Code ( Business License) Conducted the second reading of Ordinance No. 465, amending sections 5. 04. 160 License Fee -payment Due Dates) and 5. 04. 240 ( Penalty for Delinquency -Action to Collect) of Title 5 ( Business Licenses and Regulations) of the Highland Municipal Code establishing a single annual business license fee renewal date and amending penalties and procedures for collecting penalties for delinquent business license fees and approving an environmental exemption.

ORDINANCE NO. 465

AN ORDINANCE OF CITY OF HIGHLAND, CALIFORNIA, AMENDING SECTIONS

5. 04. 160 ( LICENSE FEE - PAYMENT DUE DATES) AND 5. 04. 240 ( PENALTY FOR DELINQUENCY - ACTION TO COLLECT) OF TITLE 5 ( BUSINESS LICENSES AND

REGULATIONS) OF THE HIGHLAND MUNICIPAL CODE ESTABLISHING A SINGLE,

ANNUAL BUSINESS LICENSE FEE RENEWAL DATE AND AMENDING PENALTIES

AND PROCEDURES FOR COLLECTING PENALTIES FOR DELINQUENT BUSINESS

LICENSE FEES AND MAKING A FINDING OF EXEMPTION UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT

3 Joint CC Regular & HA Special Meeting Minutes September 10, 2024

9. Contract Renewal - 2022- 06 Highland HVAC Systems Maintenance, Monitoring, and Repair Contract
1) Extended the 2022- 06 Highland HVAC Systems Maintenance, Monitoring, and Repair Contract with F. M. Thomas Air Conditioning, Inc. for one year; and 2) Approved a 13. 2% increase to the contract.

10. Community Development Block Grant ( CDBG) Subrecipient Contract Between the City of Highland and Central Little League to Provide Youth Baseball and Softball Programs 1) Approved the Contract; and
2) Authorized execution by the Community Development Director.

11. Community Development Block Grant ( CDBG)Subrecipient Contract Between the City of Highland and the Highland Family YMCA to Provide Health and Wellness Programs and Resources
1) Approved the Contract; and
2) Authorized execution by the Community Development Director.

12. Community Development Block Grant ( CDBG) Subrecipient Contract Between the City of Highland and Highland District Council on Aging, Inc. to Provide for Senior Programs, Activities, and Services to Improve Quality of Life, Physical Fitness, Social Programs, Daily Interaction and Nutrition to Low -and Moderate -Income Seniors 1) Approved the Contract; and
2) Authorized execution by the Community Development Director.

13. Bid Award - Bid No. 2024- 04, " Purchase of One New Vehicle" ( HP-) 1) Awarded Bid No. 2024- 04 to Courtesy Chevrolet Center in the amount of 65, 187. 671
2) Approved the quote from West Coast Lights and Sirens to perform the outfitting of the new vehicle in the amount of $ 37, 241. 28 through our Sourcewell Cooperative Purchasing Program Contract No. 97402; and
3) Approved a budget adjustment transfer of $ 2, 169. 97 from 007. 2100. ( DIF Fund balance) to be expended from 007. 8330. 6060 ( Vehicles).

17. Declare Two ( 2) Seats Vacant on the Community Trails Committee 1) Declared two (2) seats vacant on the Community Trails Committee; and 2) Directed the City Clerk to advertise the vacancy on the Community Trails Committee.

CITY COUNCIL PUBLIC HEARING
No public hearing.

4 Joint CC Regular & HA Special Meeting Minutes September 10, 2024

CITY COUNCIL LEGISLATIVE

14. Measure I Capital Project Needs Analysis ( FY 2025/ 2026 - FY 2029/ 2030) Public Works Director/ City Engineer Duran Jr. gave a brief review of the staff report.

A MOTION was made by Councilmember Timmer, seconded by Councilmember Solano to approve the Five -Year Capital Project Needs Analysis ( FY 2025/ 2026 - FY 2029/ 2030) for the Measure I Major Street and Freeway Interchange Programs.

RESOLUTION NO. 2024- 041

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND,

CALIFORNIA, ADOPTING THE MEASURE I FIVE-YEAR CAPITAL PROJECT NEEDS ANALYSIS FOR FISCAL YEARS 2025/ 2026 THROUGH 2O29/ 2030

15. Construction and Construction Management Services Contract Award - Bid No. 2024- 02, Highland Natural Parkland Trail Project" ( City Project No. tra20001) City Manager Zamano requested to pull the item. The project has been impacted by the Line Fire and staff would like the opportunity to re- evaluate the conditions of the project site. Staff will bring this item back to the City Council at a later date.

A MOTION was made by Councilmember Solano, seconded by Councilmember Chavez - Cordova to pull Item No. 15. Motion carried, 5- 0.

16. Resolution of Intention to Establish City of Highland Community Facilities District No. 24- 001 ( Highland Park) Generally on Base Line East of Isabella Villa Court Public Works Director/ City Engineer Duran Jr. gave a brief review of the staff report.

A MOTION was made by Councilmember Timmer, seconded by Councilmember Solano to:
1) Adopt Resolution No. 2024- 042, entitled: A Resolution of Intention of the City Council of the City of Highland to establish Community Facilities District No. 24- 001 ( Highland Park); and
2) Authorize the Levy of a Special Tax within City of Highland Community Facilities District No. 24- 001 ( Highland Park). Motion carried, 4- 1 with Councilmember Chavez -Cordova dissenting.

RESOLUTION NO. 2024- 042

A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF

HIGHLAND, CALIFORNIA, TO ESTABLISH CITY OF HIGHLAND COMMUNITY FACILITIES DISTRICT NO. 24- 001 ( HIGHLAND PARK) AND TO AUTHORIZE THE

LEVY OF A SPECIAL TAX WITHIN CITY OF HIGHLAND COMMUNITY FACILITIES DISTRICT NO. 24- 001 ( HIGHLAND PARK)

5 Joint CC Regular & HA Special Meeting Minutes September 10, 2024

18. City Manager Report and Comments ( Work Program, Regional/ Legislative/ Development Issues. Subcommittees. etc.)
City Manager Zamano stated the Highland Sheriff' s Department for the period of August 5 through September 8 received a total 3, 977 calls, made 424 reports, 154 arrests, 76 citations, 343 traffic enforcement stops, 64 traffic collisions, towed 21 vehicles, and 33 transient calls.

The Highland Fire Department for the month of August received 655 calls for service, some of which included: 514 medical aids, 18 traffic collisions, 14 structure fires, 10 vegetation fires, and 4 vehicle fires.

Staff received approval from Caltrans to advertise the Highland Regional Connector Project, which is set to commence construction. This initiative aims to repair pavement conditions and upgrade various streets. Key improvements include enhanced curb ramps, installation of bicycle markings and signage to facilitate pedestrian and bicycle connectivity to Arroyo Verde Elementary School, Highland Grove Elementary School, and Beattie Middle School. The specific street segments involved in this project include Orange Street from Greenspot Road to Tonner Drive, Tonner Drive from Orange Street to Glenheather Drive, Streater Avenue/ Glenheather Drive from Base Line to Church Street, and the cul- de- sac on Love Street, adjacent to Arroyo Verde Elementary School.

Staff submitted a Federal Grant Application for the Highway Safety Improvement Program HSIP), requesting a total funding amount of $ 1. 7 million to enhance the safety of our citywide traffic signal system. The proposed improvements include the installation of a new traffic signal at the intersection of Glenheather Drive and Church Street, located adjacent to Arroyo Verde Elementary and the addition of yellow reflective backplates at various signalized intersections. We anticipate receiving notification regarding the grant award status by the end of this year.

For the month of August, Burrtec completed 147 illegal dumping work orders.

On Monday, September 30 from 12: 00 p. m. to 5: 00 p. m., a Blood Drive will be held at the Highland Police Station.

The Planning Department received a Design Review Application from Diversified Pacific for a proposed development on a 12- acre site located at the northeast corner of Greenspot Road and Alta Vista. The proposal entails the construction of 113 single-family detached homes on smaller lots with recreational facilities. Additionally, applicant Diversified Pacific requests a zone change from single-family zoning to plan development zoning, aimed at achieving increased density and enhanced flexibility in development standards.

The Finance Department' s Annual Comprehensive Financial Report for fiscal year ending June 30, 2023 was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association.

6 Joint CC Regular & HA Special Meeting Minutes September 10, 2024

19. Councilmember Comments ( Agency/ Committee/ AB 1234 Reports, District Updates, etc.) Councilmember Timmer thanked the firefighters for their diligent efforts in safeguarding the City of Highland from the Line Fire.

Mayor Lilburn announced the grand re -opening of the Highland Senior Center will be held on October 5.

ANNOUNCEMENTS
None

CLOSED SESSION
None

ADJOURN CITY COUNCIL MEETING
There being no further business, Mayor Lilburn adjourned the meeting at 7: 00 p. m.

JOINT CITY COUNCIL AND HOUSING AUTHORITY MEETING

CALL TO ORDER
The joint meeting of the Highland City Council and Highland Housing Authority of the City of Highland was called to order at 7: 00 p. m. by Chair Lilburn.

ROLL CALL

Present: Chavez -Cordova, Lilburn, McCallon, Solano, Timmer

Absent: None

BUSINESS ITEMS
A MOTION was made by Vice Chair McCallon, seconded by Authority Member Solano, to approve the Minutes as submitted. Motion carried, 5- 0.

Minutes - July 9, 2024 Special Meeting
Approved the Minutes as submitted.

CITY COUNCIL AND HOUSING AUTHORITY PUBLIC HEARING

2. Second Amendment of the Ground Lease with Housing Venture I, Enabling the Refinancing and Loan Funds to Make Repairs and Improvements Related to the Jeffrey Court Senior Apartments, and Extend the Ground Lease Term for an Additional Twenty - Six ( 26) Years, Enacting a New Fifty -Five ( 55) Year Term, and First Amendment of the Regulatory Agreement between the Housing Authority, the City of Highland, and Lessee to Extend the Term of the Affordabilitv Covenant by an Additional Twentv- Six ( 26) Years

7 Joint CC Regular & HA Special Meeting Minutes September 10, 2024 Chair Lilburn stated she would abstain from this item due to a conflict of interest; her property is 500' in proximity to the project site and asked Vice Chair McCallon to open the public hearing.

Vice Chair McCallon opened the public hearing for the Second Amendment of the Ground Lease with Housing Venture I.

Assistant Community Development Director Stater indicated the item involves an amendment to the Ground Lease and Regulatory Agreement pertaining to Jeffrey Court Senior Apartments and its lessee, Housing Venture I. In 1998, Housing Ventures collaborated with the Highland Redevelopment Agency to finance and construct Jeffrey Court Senior Apartments and has served as the ongoing lessee and manager for the past twenty- six ( 26) years since the project' s foundation.

Housing Ventures I approached the Highland Housing Authority to request refinancing of their primary loan on the project, seeking $ 2. 3 million to fund essential onsite repairs.

These repairs will include re -piping units and restoring the fire sprinkler system.

The Highland Housing Authority is asked to extend the ground lease for an additional twenty- six ( 26) years, effectively renewing the project' s original fifty- five ( 55) year term to provide affordable senior housing in the City of Highland. The established lease rate of 120, 000 per year will remain in effect for this extended period. This initiative represents a significant advancement for the city's housing strategy, and the state is expected to recognize the city' s commitment to maintaining affordability covenants within the community. The program documents have been reviewed by the city's consultant TKE Engineering, Inc. and the City Attorney.

Mark David, Secretary at JC GP, Inc. and Co -lessee partner stated Jeffrey Court Senior Apartments were built 26 years ago. They have made an effort to be good partners to the city by providing affordable housing for seniors throughout the years. The property has deteriorated overtime and efforts to maintain it have been made by utilizing the cash flow available. The property is victim to a piping problem caused by a nationwide manufacturing flaw. It overwhelmed the ability to fix without financing.

The lender has stipulated that an extension of the lease is necessary to secure this financing, which will ultimately benefit residents by ensuring that all repairs are made, including upgrades to the fire sprinkler system and commit to maintain the property as affordable housing for an additional twenty-six ( 26) years.

Vice Chair McCallon expressed concerns regarding individuals residing in apartments who should not be there. He asked what measures would be implemented in response to this issue?
Co -lessee David stated if an individual over the age of 55 resides in the unit, they are entitled to have younger individuals living with them.

Authority Member Timmer indicated there are currently three loans, is this approach intended to consolidate all the loans into a single arrangement?

8 Joint CC Regular & HA Special Meeting Minutes September 10, 2024 Co -lessee David responded, one loan is tied to the City of Highland, which is continuing to be repaid alongside the lease. The other loans pertain to bonds, as this is an affordable housing project. The lender responsible for enhancing the credit of these bonds has issued a letter of intent to increase the funding amount and will be utilized as previously mentioned.

Vice Chair McCallon asked if anyone from the public wanted to speak for or against the item.

Seeing none, Vice Chair McCallon closed the public hearing and brought it back to the City Council for questions.

A MOTION was made by Authority Member Chavez -Cordova, seconded by Authority Member Solano to:
1) Adopt City Council Resolution No. 2024- 043 approving the First Amendment of Regulatory Agreement between the Housing Authority, the City of Highland, and Housing Venture I, and making a finding of exemption under the California Environmental Quality Act,
2) Adopt Housing Authority Resolution No. 2024- 002 approving the Second Amendment of the Ground Lease with Housing Venture I, enabling the refinancing and loan funds to make repairs and improvements related to the Jeffrey Court Senior Apartments, and extending the Ground Lease Term for an additional twenty- six ( 26) years, and the First Amendment of the Regulatory Agreement between the Housing Authority, the City of Highland, and Lessee to extend the term of the affordability covenant by an additional twenty- six ( 26) years; and 3) Direct the Housing Authority Secretary/ City Clerk to file a Notice of Exemption with the San Bernardino County Clerk of the Board of Supervisors. Motion carried, 4- 0, with Chair Lilburn abstaining.

RESOLUTION NO. 2024- 043

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND,

CALIFORNIA, APPROVING A FIRST AMENDMENT OF REGULATORY AGREEMENT

BETWEEN THE HIGHLAND HOUSING AUTHORITY, CITY OF HIGHLAND, AND

HOUSING VENTURE I, AND MAKING A FINDING OF EXEMPTION UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
RESOLUTION NO. HA2024- 002

A RESOLUTION OF THE HIGHLAND HOUSING AUTHORITY APPROVING A

SECOND AMENDMENT OF GROUND LEASE BY AND AMONG THE HIGHLAND

HOUSING AUTHORITY AND HOUSING VENTURE I, AND FIRST AMENDMENT TO

REGULATORY AGREEMENT BETWEEN THE HIGHLAND HOUSING AUTHORITY,

CITY OF HIGHLAND, AND HOUSING VENTURE I, AND MAKING A FINDING OF

EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

ADJOURN JOINT CITY COUNCIL AND HOUSING AUTHORITY MEETING There being no further business, Chair Lilburn adjourned the meeting at 7: 08 p. m. in memory of John Baker, Bill Annear, Sarah Culpepper, and Jim Stark.

9 Joint CC Regular & HA Special Meeting Minutes September 10, 2024 Submitted By:

Alondra Munoz
Secretary
Approved By. -
Penny Lilburn
Chair

10 STAFF REPORT

TO THE CITY COUNCIL
DATE: October 8, 2024
FROM: Carlos Zamano, City Manager
PREPARED BY: Alondra Munoz, City Clerk
SUBJECT: Minutes - September 12, 2024 Special Meeting
RECOMMENDATION: Approve the Minutes as submitted.

Approved Motion Second
Denied Ayes
Continued Noes
Tabled Abstain
Absent
Agenda Item No.

File No.

City Clerk ity Manager
1 City Council Special Meeting Minutes September 12, 2024

CALL TO ORDER
The special meeting of the City Council of the City of Highland was called to order at 4: 00 p. m. by Mayor Lilburn at the Donahue Council Chambers, 27215 Base Line, Highland, California.

ROLL CALL

Present: Chavez - Cordova, Lilburn, McCallon, Solano, Timmer

Absent: None

PUBLIC COMMENT ( LIMITED TO ITEMS ON THIS AGENDA ONLY)

CITY COUNCIL LEGISLATIVE
Resolution No. 2024- 044, a Resolution of the City Council of the City of Highland, California, Ratifying the Proclamation of a Local Emergency in the City of Highland Issued by the City's Director of Emergency Services on September 11, 2024 as a Result of the Line Fire
A MOTION was made by Mayor Pro Tern McCallon, seconded by Councilmember Chavez -Cordova, to approve Resolution No. 2024- 044, ratifying the Proclamation of a Local Emergency in the City of Highland issued by the City' s Director of Emergency Services on September 11, 2024, as a result of the Line Fire. Motion carried, 5- 0.

RESOLUTION NO. 2024- 044

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND,

CALIFORNIA, RATIFYING A PROCLAMATION OF A LOCAL EMERGENCY IN THE

CITY OF HIGHLAND ISSUED BY THE CITY' S DIRECTOR OF EMERGENCY SERVICES ON SEPTEMBER 11, 2024, AS A RESULT OF THE LINE FIRE

ADJOURN
There being no further business, Mayor Lilburn adjourned the meeting at 4: 02 p. m.

Submitted By:

Alondra Munoz
City Clerk
Approved By:

Penny Lilburn
Mayor

2 STAFF-- REPORT
TO THE ChI - Y COUNCIL
DATE: October 8, 2024
FROM: Carlos Zamano, City Manager
PREPARED BY: Leticia Nava -Cruz, Director of Administrative Services/ City Treasurer SUBJECT: Warrant Register # 770
RECOMMENDATION: City Council to approve Warrant Register #770; Warrants in the amount of $2, 172, 775'.33 and Payroll in the amount of $135, 368. 62 FISCAL IMPACT: The total of Cash and Expenditures is $ 2, 308, 143. 95 PUBLIC NOTICE: The agenda for this item was posted at the three locations per Resolution No. 2011- 047 and on the City' s website.

BACKGROUND: See Printouts Attached.

Approved
Denied
Motion
Ayes
Continued Noes
Tabled Abstain
fNl
Absent
Cit jerk
Second Agenda Item No.

File No.
ity Manager
1 CITY OF "! GHLAND
WARRANT REGISTER # 770
October 8, 2024
Warrants:
9/ 3/ 2024 Ck# 90022- 90064 & Wire# 1002725929 283, 202. 58 9/ 6/ 2024 Payroll Wire # 939- 942 & Ck # 90065 70, 617. 84 9/ 10/ 2024 Ck# 90066- 90110 275, 254. 74
9/ 17/ 2024 Ck# 90111- 90149 250, 397. 80
9/20/ 2024 Payroll Wire # 943- 946 & Ck # 90150 74,451. 02 9/ 24/ 2024 Ck# 90151- 90191 1, 218, 851. 35
Total Warrants 2, 172, 775. 33
Payroll:
9/ 6/2024 Direct Deposits # 14358- 14000 11, 599. 38
9/ 6/2024 Ck # 729 279. 98
9/ 20/ 2024 Direct Deposits # 14001- 14443 123, 209. 28 9/ 20/ 2024 Ck # 730 279. 98
Total Payroll 135, 368. 62
Total Warrants & Payroll 2, 308, 143. 95
APPROVED BY:

Larry McCallon
Finance Subcommittee
John Timmer
Finance Subcommittee
Carlos Zamano
City Manager
Leticia Nava - Cruz
Director of Administrative
Services/ City Treasurer
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