MINUTES

REDEVELOPMENT AGENCY AND CITY COUNCIL

REGULAR MEETING

JANUARY 9, 2007 - 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 6:03 p.m. by Mayor Jones at the Donahue Council Chambers, 27215 Base Line, Highland, California.

The invocation was given by Reverend Wayne Reynolds of Immanuel Baptist Church and the Pledge of Allegiance was led by Councilman Timmer.

ROLL CALL

Present: Lilburn, McCallon, Timmer, Mayor Jones

Absent: Scott

SPECIAL PRESENTATIONS

None

COMMUNITY INPUT

Mr. Jack Jennings stated code enforcement has done an inspection on the requested property but he is not in agreement with the outcome. He was under the impression Highland had a motorhome policy which states no parking on a public street. He knows the motorhome can be parked on a paved surface in your yard but not on the street. There are no sidewalks in the neighborhood and with this motorhome blocking the street you have to go into the middle of the street which is very dangerous. He would appreciate if this motorhome can be removed.

Mayor Pro Tem Lilburn inquired what is the current ordinance for motorhome.

Councilman Timmer stated the DMV rules states a limit of 72 hours.

Mr. Andy Huey stated he has been reading in the paper about the concerns for the airport runway, then the concerns about Wal-Mart and now the concerns about the proposed group home. His personal opinion of having a group home next door to him is he would be in agreement if the home was for children but not for adults. He feels this group home would try to help the children.

CITY COUNCIL/REDEVELOPMENT AGENCY CONSENT CALENDAR

City Clerk Hughes stated on item #6 of the minutes, page 3 of 9, the motion was inadvertently left off. Before the last paragraph of the consent calendar the two motions, a MOTION was made by Mayor Jones, seconded by Mayor Pro Tem Lilburn, to replace Councilman McCallon with Mayor Pro Tem Lilburn on the Finance Subcommittee. MOTION carried, 3-2, with Councilman McCallon and Councilman Timmer dissenting. The next paragraph the MOTION was made by Mayor Jones, seconded by Mayor Pro Tem Lilburn, to replace Councilwoman Scott with Councilman McCallon on the Public Works Subcommittee. Motion carried, 5-0. Also, on page 5 of 9, item #14, towards the end of the item it states City Clerk Hughes closed the floor for nominations and "called for the vote" should be added and the next paragraph, Mr. Gerard Reminsky received three ayes is fine but the next paragraph has been deleted due to the vote already being taken.

A MOTION was made by Councilman McCallon, seconded by Councilman Timmer, to approve the consent calendar as modified. Motion carried on a roll call vote, 4-0, with 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 - November 28, 2006 City Council Regular Meeting

Approved Minutes as submitted.

3. Minutes - November 28, 2006 City Council Special Meeting

Approved Minutes as submitted.

4. Minutes - November 28, 2006 RDA Regular Meeting

Approved Minutes as submitted.

5. Minutes - November 28, 2006 RDA Special Meeting

Approved Minutes as submitted.

6. Minutes - December 12, 2006 City Council Regular Meeting

Approved Minutes as submitted.

7. Minutes - December 12, 2006 RDA Regular Meeting

Approved Minutes as submitted.

8. Claim Consideration - Lisa Marie Collins

Rejected claim.

9. Claim Consideration - Armando & Antoinette Medel

Rejected claim.

10. Warrant Register

Approved Warrant Register No. 432 for January 9, 2007, in the amount of $3,504,700.88 and Payroll of $116,916.08.

11. Treasurer's Report for November 2006

Received and filed Treasurer's Report for November 2006.

12. Potential Issuance of RDA Bonds

Directed staff and consultants to take the necessary steps to start the process of the potential issuance of RDA bonds.

13. Easement Acceptance/Ramirez (7026 Del Rosa Avenue)

1. Accepted the Grant of Easement for Road and Drainage Purposes from Ramirez; and

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

14. Award of a Professional Services Contract to the M.W. Steele Group, Inc., for Preparation of an Airport Land Use Compatibility Plan and Approval of a Related Budget Adjustment

Awarded a professional services contract to the M.W. Steele Group, Inc., for preparation of an Airport Land Use Compatibility Plan in an amount not to exceed $50,000 ($47,000 for labor and $3,000 for other direct costs such as material and mileage) upon review and approval by the City Attorney.

15. Bid Award of Bid 2006-35 "One (1) Lot of Miscellaneous Fitness Equipment"

1. Awarded Bid No. 2006-35 to Life Fitness for $138,508.86 and Techno Gym USA for $7,279.11; and

2. Approved a budget adjustment in the amount of $145,787.97 from 023-2100 (General Capital Financing-unreserved, undesignated) to 023.3890.6040 (Equipment).

Mayor Jones stated he would like to address item #17 first and then come back to item #16.

CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARING

16. Consideration of an Appeal of the Planning Commission's Denial of Conditional Use Permit (CUP 006-004) Adopting (1) A Planned Development Document for the Subject Project Establishing Development Standards and (2) A Tentative Tract Map 18013 (TTM-006-002) for a Proposed Seventeen (17) Lot Residential Subdivision for the Subject Parcel of Land Located Three Hundred Fet (300') East of the Intersection of Victoria Avenue and Pacific Street. Assessor Parcel Number 1191-351-04. (Applicant: Hispano Investors, Inc.)

The Appeal is as follows: Appeal 006-003; An Appeal filed by Hispano Investors, Inc., requesting reconsideration of the Planning Commission's determination to deny Tentative Tract Map (TTM-006-002/TTM 18013) and Conditional Use Permit (CUP-006-004)

Mayor Jones opened the public hearing.

City Planner Mainez stated projects within the planned development district are reviewed and approved through a couple of planning documents. It can either be a specific plan or a planned development document which is adopted through a conditional use permit or other mechanisms as approved by the Community Development Director. In this particular case, the project was reviewed through a planned development document. Some of the Planning Commission's issues are the compatibility with surrounding uses and the second is master planning and street conductivity. The first major category includes a lot of variables such as lot size, density, setbacks, design of the lot itself and the width. To assist the Planning Commission, staff conducted a lot size study and took the analysis of lot size out to 500 feet and then 1,000 feet and determined that within 500 feet of the project, lot sizes range from about 7,000 to 8,000 square feet. The 1,000 feet radius lots were a little bit more compatible with the project which ranges about 5,700 square feet to 7,500 square feet. The Planning Commission was concerned about being more compatible with the larger size lots around the project area than they were with the larger radius of up to 1,000 feet. They were also somewhat concerned about the small lots, basically generate setbacks which create houses that are closer together, not only to each other but also to existing neighborhoods which could possibly be a privacy issue. Single story versus two story was also discussed. We were assured by the developer that these would be single story to be compatible with the surrounding neighborhoods. The other category, master planning and street conductivity, is two parts. The Planning Commission was aware and there was a dialogue concerning adding new traffic conflicts on both Victoria Avenue and Pacific Street. What we are trying to do in planned development district is reduce traffic conflicts per driveways, streets and use what's there. That is basically what the developer attempted to do by using Mansfield Street and Alice Street. The other issue is there are two lots that face or propose to take access off of Pacific Street. The Planning Commission was concerned that those two lots would probably be the only ones that would be built in the future if the master planning occurred on the north side of Pacific Street and they were reluctant to allow that type of development to occur. They would rather have those lots turned into a local street.

Mr. John Mirau stated the applicant has been working on this project for over a year. The applicant has been working with city staff with a lot of changes taking place. As indicated staff did approve this project and the Planning Commission has denied it. This is a planned development designation. Within 1,000 feet, 1% of the lots are 50 feet in size. In this case, the lots are 51.961 in feet and they are also about 100 feet wide. These are very consistent and this was the original findings that these lot sizes were consistent. As for the privacy issues, he thinks privacy concerns can be addressed in time with the location of windows and placement of the houses. As for circulation and access issues, there really is excellent access. We feel that the access created would be a positive issue and would be a good attribute. Consolidation of parcels, what is being proposed is the two corner parcels, south of Victoria Avenue, and the square parcel is owned by one land owner and the other is owned by a Mr. Jacobs. We recognize the public policy concerns by the city to make sure that our project is designed in a way that permits access to those parcels that could result in the future without getting access to Victoria Avenue or Pacific Street. We attempted to do this by connecting Mansfield Street with Alice Street.

Councilman Timmer inquired if the statement was that Alice Street and Mansfield Street would be tying together. The plot plan map does not show those streets tying together.

Mr. John Mirau responded the map does not show that but the change is for those streets to tie together.

Councilman Timmer inquired if the negotiations have begun to purchase the land.

Mr. John Mirau responded we have not. Obviously we will attempt to negotiate a small portion. If not, the requirement would be for the city to refrain until he gets the property.

Councilman Timmer responded the city does not have that sort of policy in the City of Highland for single family homes. He just wanted to clarify the fact that the map does not show the streets being tied together.

City Engineer Wong stated engineering conditions of approval have conditions to require the connection of the two streets plus the acquisition of offsite property right to street. It would be part of the projects obligation to do if the project is approved.

Mr. John Mirau stated with respect to the three options, the three options anticipate developing those two parcels which he has attempted to do. Right now it is not economically feasible for the applicant to buy that property low but the applicant is more than willing to design and make changes necessary to make sure that there is good access to the project that will not require the project to punch out on Victoria Avenue or on Pacific Street.

Councilman Timmer stated he has spoken with staff on some of these items. He supports the Planning Commission concerns on the density, the non-compatibility and also the lot size. He also has a big concern about the two lots accessing Pacific Street and how this will transition when further development and number of driveways coming off projects that are vacant land. When the Council adopted the general plan and we talked about these parcels that were vacant, we specifically talked about being a planned unit development with the understanding that all will develop as one master plan, not piece by piece. He really suggested we leave it low density housing but that didn't happen. He believes Council felt when this parcel develops, it develops with the master plan and he does not think this project really does that. However, he really would like to state he supports this type of housing in this location but he would really like to see a master plan for the whole thing. He has a concern about having additional driveways on Pacific Street at this point. The two story issue he would like to talk to staff about that. The houses adjacent to existing houses should be single. He would really like to see a master plan come back for the whole project all being developed in phases. At this point, based on what he has seen and heard, he would have to support the Planning Commission's decision.

Councilman McCallon stated the issue of consolidation has not been discussed.

Mr. John Mirau stated the applicant attempted to do so a year ago but now obviously a lot of money is involved in this project, the market has changed, and their view is clearly to have a great policy concern for the master plan and thinks it is their obligation to make sure they plan it in a fashion for the project to be developed.

Mr. Bill Jacobs stated he is not opposed to moving but he does not want to move some place and have a big house payment. If he can't find somewhere affordable he will have to leave the area, although he has not seen a firm offer.

Councilman McCallon inquired about housing the horses somewhere else and staying in Highland.

Mr. Bill Jacobs responded the problem is to board horses is at least $200 per month.

Mayor Pro Tem Lilburn stated she understands the Planning Commission's concerns. This is a redevelopment agency area. The current neighborhood really leaves a lot to be desired. Some of the lots are larger in that area but they have cars stored and junk. It is an in fill project and in a perfect world she doesn't think she would like to have the driveways off of Pacific Street but the current development across the street has driveways off of Pacific Street. She does not think this is unreasonable. She does not think this is a safety issue right now. She knows that Victoria Avenue at some point is going to have a great deal of development and a lot of activity. She does know staff has made recommendation and if it was wrong she doesn't think they would have approved it. She, too, would like to see the entire project developed. The applicant's have put a lot of money and time into this project only to be told to purchase the remainder of the property.

Councilman Timmer stated normally when we have planned unit developments, we do that for a specific purpose of creating additional amenities and upscale parks or trails in addition to what is a normal tract development. What amenities are being added to the particular project over a regular tract development that is not in a planned unit development? Specifically the Gardner project was referenced as they have parks built, security installed in the homes, and all those kinds of things to qualify to meet the intent of the planned unit development. This is just another small lot subdivision without any amenities. The driveways across the street as we all know, if you look at Pacific Street, when those big lots developed on the other side of Pacific Street, whatever the master plan will be for them, those driveways will probably be eliminated with major access points. Those lots are on large parcels and are also on designated plan unit development.

Mayor Pro Tem Lilburn stated she would hope that the new development on the other side of the street would not have any driveways off Pacific Street.

Councilman Timmer stated the only way to accomplish this would be to eliminate the four lots which would make it an even more difficult project to develop in the future.

City Planner Mainez stated one of the first design options is to connect the streets which are currently at a dead end and that definitely is a benefit, not only to future residents but also existing residents. During the Planning Commission meeting, we heard from some residents who are already having difficulty getting access at certain times of the day at Victoria Avenue and Pacific Street so this will benefit them. The other amenities is something they mirrored after the Gardner project with security wiring, the full property landscaping including rear and front, side yard walls, window coverings.

Councilman Timmer inquired if the walls would be block.

City Planner Mainez responded there is a wall but he is not sure if it is block.

Mayor Pro Tem Lilburn inquired if we could require the walls to be upgraded to block.

City Planner Mainez stated the upgrade was required of the last project that came before you but it is not a standard.

Councilman Timmer stated he thought it was the intention for staff to assume this would be the new standard.

City Planner Mainez stated the Council amended the development code to include the returns particularly on the corner lots which are visible throughout the neighborhood.

Councilman Timmer stated no, we talked about all lots, internal lots during the general plan.

City Planner Mainez stated he will have to review the development code.

Ms. Bonnie Baldwin stated she really does not have any objection to this project as the surrounding vacant lots end up as dump sites for trash. It would be an improvement to the surrounding area. The only concern she would have is the traffic from Victoria Avenue as she has to wait 10-15 minutes for the cars to pass by, so another outlet would be a good idea.

Councilman McCallon stated he too is concerned about the lots that front on Pacific Street. He does not think this is a good idea. He would like to see those lots developed as part of a larger project eventually. He understands this project does not include the larger lots because there is a problem with the purchase negotiation. He thinks it makes sense to plan on having the whole project done at some point in a fashion that would take into account this project if we approve the appeal. He would propose at this time not to include the two lots that face on Pacific Street and leaving them undeveloped. These lots will be developed as part of the overall larger project that would eventually come. He knows this takes away two lots from the developer but he would propose this as a compromise as a way of possibly approving this project.

Councilman Timmer stated as he listened, he looked at a compromise, as he would like to see the area be developed and upgraded. If we eliminated the four lots, the two that front Pacific Street and the two that would front Mansfield Street, that will allow all the options to be in place and will be able to develop all the lots that are south of Mansfield Street, along Goodman Court and along Alice Street with the provision of lots 9 and 10 being turned 90 degrees allowing them to face the same street. He would see this as a reasonable compromise. The big concern is the traffic issue as we know the traffic will only become greater.

Councilman McCallon stated the issue then would be if we take away the four lots would it still be financially feasible for the developer.

Mr. John Mirau stated the lots being considered are 1,300 square foot homes to approximately 1,500 square feet and lots 11 and 12, which are the ones that face Pacific Street, we were contemplating driveway approaches to the rear of the property. Setbacks would be 12-foot setbacks and the front would be 25-30 feet from the setback. We are not thinking of developing the whole property.

Councilman Timmer stated when the other lots develop they will have driveways as well unless we have a master plan. Some commercial could come in and build a commercial project.

Mayor Jones stated this is the issue as we can't predict what this is going to develop.

Councilman Timmer stated this is why we put a planned unit development so we could see the entire parcel being developed just like we are doing at the Golden Triangle. We aren't going to allow them to get approval on one corner, we are looking at the whole parcel.

Mr. John Mirau stated recognizing this issue with respect to the two lots on Pacific Street, there are a couple of ways. One way is to combine those parcels and have 11, 12, and 13, 14 as one parcel that faces onto Mansfield Street. Obviously we don't want to lose four parcels but that is a major issue. This is one proposal that can be done. Another proposal would be to create a lot of 12 and 13 and withhold them from this development so they could be integrated into the other development. A third option would be to build a half street and cul-de-sac that comes up and have those lots face onto that so at a later point of time when the rest of the land develops it would fit in with that. There are a number of ways to resolve this issue and we are willing to work with the city on this.

Mayor Jones stated we have a willing developer who wants to develop in the City of Highland and Highland wants you to develop here. The only item we have to agree on is what the development will look like. All members on the Council want this to happen. It's just reaching an agreement to improve the neighborhood. He drove the current neighborhood and saw the larger lots are not being taken care of. This concerns him greatly. In a previous project, the Gardner project, the lot sizes were smaller but we also began to do amenities that would enhance the neighborhood and hope to create another pride of ownership within those neighborhoods. He would be one that would lean towards approving the appeal but sending it back to the Planning Commission to work on an agreement. This will allow us to have the development and the enhancing of the neighborhood.

Mr. John Mirau stated our point of view is if there are going to be minor changes such as those two lots, we would like to go forward and not have to reprocess through the Planning Commission. If we are going to redesign the project, we will need to go back to the Planning Commission but we would hope to deal directly with the issues, make the adjustments and move forward from here.

Councilman McCallon inquired if the applicant is willing not to develop the two lots on Pacific Street.

Mr. John Mirau responded yes.

Mayor Jones stated he said he would be willing to consolidate them into one lot and postpone them for future development.

Mr. John Mirau stated or alternatively we would forego the two lots so they will be able to be integrated at a future time.

Councilman McCallon stated the large long lots are not viable because we have seen what happens with the large lots the back yards never get taken care of.

Councilman Timmer stated lot 12 would be landlocked that will never develop to be part of a plan.

Mayor Jones stated what we are saying is we are planning on developing that housing now. Where they are proposing that they would not develop at all but would leave it for a later planned development of the entire parcel which would then include consolidating the lot into the larger parcel.

Mayor Pro Tem Lilburn stated if this was going to continue on as residential and unless they make it one great big parcel and if they are kept separate, they are still in a position to have a driveway leading out onto Pacific Street.

Mayor Jones stated what needs to be done is take all four of the lots and combine them together into one parcel.

Councilman Timmer stated no, that is not what is being said. They were saying to develop the bottom two.

Mr. John Mirau stated they would develop the bottom two and then they would be willing to agree for the other two not to be developed at all except in connection with the master plan. The other possibility would be to construct a half cul-de-sac as shown in plan B. This would require them to purchase the vacant lot from the Jacobs.

City Engineer Wong stated half cul-de-sac does not give proper access for fire trucks.

Councilman Timmer stated we have given some options for the developer to consider and whether they want to come back to us or go to the Planning Commission for further consideration.

Mr. John Mirau stated one other option would be plan A.

Councilman Timmer stated no, it has access to Pacific Street.

Mr. John Mirau stated it has street access to Pacific Street not driveway access.

Councilman McCallon stated that is not acceptable.

Mayor Jones stated he thinks that is acceptable. As you go into the neighborhood now, there is Goodman Court, Mansfield Street and these residents do not have any other alternative and it was originally planned for this to occur. Mansfield Street was supposed to access a future project. He thinks the access from Alice Street to Pacific Street would complete this intent both of Alice Street and Mansfield Street.

Councilman McCallon stated our current plan is not to do this.

City Engineer Wong stated general plan policy discourages no additional access and especially major access onto a busy street. If Alice Street is accessed through, the distance between Alice Street and the intersection of Victoria Street and Pacific Street, is not much different than the distance from Goodman Court and the intersection of Victoria Avenue and Pacific Street.

Mr. John Mirau stated this would work for us but the problem with the full cul-de-sac is basically we are going immediately adjacent to the Jacobs' home. He doubts they would want this.

City Engineer Wong stated with plan C, maybe the developer could develop two of the three parcels.

City Planner Mainez stated the referred plans A, B and C are conceptual drawings only.

Mayor Jones stated we are creating a dead end street there, not a cul-de-sac and if the future development of the property on the west is not developed in housing but is commercial, how will we address the dead end street.

City Engineer Wong stated one way would be to install a cul-de-sac and not a knuckle.

Mayor Jones stated this will encroach more on the Jacobs' property. Why doesn't the Council continue the item and have the applicant come back to Council with a plan that will work as the applicant works with staff and the adjacent property owners.

Mr. John Mirau stated he would like direction to where Council would like to go.

Community Development Director Jaquess stated the Planning Commission did not look at these alternative options. The Council has given some indication of what they would like to see in the area that will resolve some of the initial concerns of the Planning Commission. It might be valuable to get an opportunity for the Commission to review this again and make a recommendation back to the Council on some of these design issues.

Mayor Jones stated as long as the amenities are going to be an upgrade to the neighborhood.

Councilman McCallon stated the major concern is we do not want any access onto Pacific Street.

Councilman Timmer stated lots 9 and 10, to match consistency, they will need to be turned 90 degrees. This will allow them all to face Alice Street.

Mr. John Mirau stated we need to look at this and make sure it will work because they don't want to create lots that are not feasible.

Councilman Timmer stated we will validate in the general plan that block walls are to be included in all projects from this point forward.

City Attorney Battersby stated if the Council refers it back to the Planning Commission for some revision, it will be re-noticed when the applicant comes up with a new design, heard by the Planning Commission and the appeal is left pending, but it will be re-noticed when it comes back to the City Council.

Mayor Jones inquired if the Council was in agreement to have the item directed back to the Planning Commission and to have the developer come with a new plan with a recommendation from the Planning Commission to the City Council as how we are to proceed.

Mr. John Mirau stated it is his understanding that the appeal is still pending.

Mayor Jones stated this is correct. Once we have a new recommendation from the Planning Commission, then we will hear the appeal and either approve it with the new recommendation or deny it in its entirety.

Mr. John Mirau stated the Planning Commission made some policy decisions different than what was made today, so, he feels it is important when they go back that the Planning Commission is informed that Council is okay with the lot size but you don't want Alice Street accessed through.

Councilman Timmer stated the Planning Commission will receive a copy of the minutes as part of their agenda. He would like to clarify as part of the review process we are looking at the four parcels north of Mansfield Street and how it will all fit together but he does not want to end up with some remainder parcel that is difficult if ever to develop.

Mayor Jones closed the public hearing.

A MOTION was made by Councilman McCallon, seconded by Councilman Timmer, to have the item brought back to the Planning Commission for further analysis and review and for the Planning Commission to determine a recommendation to be brought to Council. Motion carried, 4-0, with Councilwoman Scott absent.

17. Proposed Formation of Community Facilities District No. 2007-1 ("CFD 2007-1"), including a Public Hearing, Resolutions Forming the District, Declaring the Necessity to Incur Bond Debt, Calling for an Election, Declaring Results of such Election, and an Ordinance Authorizing the Levy of Special Taxes within the District

City Attorney Battersby stated before this item is addressed, on item #1 the Resolution of Formation, before you act on this, there are some changes that need to be reflected in the resolution to reflect the state law that changed on January 1, 2007.

Director of Administrative Services Dantuono stated he would like to turn over the staff report to Marshall Linn of Urban Futures.

Mr. Marshall Linn stated this item is the last action in the Formation of CFD 2007-1. This process was initiated in the summer of 2006. On November 14, 2006, the form was adopted to establish an adoption of a resolution to establish CFD 2007-1 and another one to authorize the special tax . In order to complete the formation of the district, it is necessary to hold a public hearing. The purpose of the CFD will be to provide financing, to issue bonds for the improvements of the Boulder Avenue Bridge and City Creek. Part of the special tax which will be levied on properties is that the City of Highland will receive on an annual basis $325 per home. Mr. Marshall Linn inquired if a notice of this hearing was published.

City Clerk Hughes responded a notice of this public hearing was published and mailed to landowners within the District in accordance with the requirement of the Mello-Roos Community Facilities Act.

Mayor Jones stated the floor is now open for the public hearing portion.

Councilman Timmer stated for clarification this does not cost anyone who lives outside the District. This is only for the residents who live within the District.

Mr. Marshall Linn stated the District is located at the northeast corner of Boulder Avenue and Fifth Street.

City Attorney Battersby stated the District currently has only one property owner.

Mayor Jones stated there does not appear to be a major protest existing against this establishment of District against the furnishings of the specified types or type of facilities for services within the District or against levied as specified tax, a special tax within the District.

City Clerk Hughes stated no written protests have been received from the landowners within the District, therefore, a majority protest does not exist.

Mayor Jones stated at this time because of a non-existent majority protest, it is appropriate for the City Council to consider resolutions to form the District, to declare the necessity to incur bonded indebtedness and to call a special election within the District.

City Attorney Battersby stated on section 7, subsection b, which is on page 4 of the Resolution Formation, item #1, in the agenda packet because state law changed effective January 1, 2007, to remove the exemption under CEQA. That is an exemption for Fish and Game fees as well. In light of this change, section 6D should be amended to read as follows, "The City Council hereby directs staff to remit to the County Clerk the appropriate documentary handling fee in connection with Fish and Game code requirement and the applicable department of Fish and Game filing fee imposed pursuant to Fish and Game code section 7-11.4 for mitigated negative declarations." This language will replace what is now in the resolution, the Resolution Formation section 7. This will mean whereas before the city might not have had to pay a fee, now we will have to pay $1,800 in order to adopt this resolution.

A MOTION was made by Councilman Timmer, seconded by Mayor Pro Tem Lilburn, to adopt Resolution No. 2007-001 a Resolution of Formation of the City Council of the City of Highland, California, to Establish City of Highland Community Facilities District No. 2007-1, to Make Environmental Findings with Respect thereto Pursuant to the California Environmental Quality Act, to Establish an Appropriations Limit therefor, to Authorize the Levy of Special Taxes therein, and to Submit the Establishment of an Appropriations Limit and the Levy of Special Taxes to the Qualified Electors therefor as amended. Motion carried, 4-0, with Councilwoman Scott absent.

RESOLUTION NO. 2007-001

A RESOLUTION OF FORMATION OF THE CITY COUNCIL

OF THE CITY OF HIGHLAND, CALIFORNIA, TO ESTABLISH

CITY OF HIGHLAND COMMUNITY FACILITIES DISTRICT NO. 2007-1,

TO MAKE ENVIRONMENTAL FINDINGS WITH RESPECT THERETO

PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,

TO ESTABLISH AN APPROPRIATIONS LIMIT THEREFOR, TO AUTHORIZE

THE LEVY OF SPECIAL TAXES THEREIN, AND TO SUBMIT THE

ESTABLISHMENT OF AN APPROPRIATIONS LIMIT AND THE LEVY

OF SPECIAL TAXES TO THE QUALIFIED ELECTORS THEREOF

A MOTION was made by Councilman Timmer, seconded by Mayor Pro Tem Lilburn, to adopt Resolution No. 2007-002 to Declare the Necessity to Incur Bonded Indebtedness within the City of Highland Community Facilities District No. 2007-1.

Motion carried, 4-0, with Councilwoman Scott absent.

RESOLUTION NO. 2007-002

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND, CALIFORNIA, TO DECLARE THE NECESSITY TO INCUR BONDED

INDEBTEDNESS WITHIN CITY OF HIGHLAND COMMUNITY FACILITIES

DISTRICT NO. 2007-1

A MOTION was made by Councilman McCallon, seconded by Mayor Pro Tem Lilburn, to adopt Resolution No. 2007-003 Calling a Special Election within City of Highland Community Facilities District No. 2007-1. Motion carried, 4-0, with Councilwoman Scott absent.

RESOLUTION NO. 2007-003

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND, CALIFORNIA, CALLING A SPECIAL ELECTION WITHIN CITY OF HIGHLAND COMMUNITY FACILITIES DISTRICT NO. 2007-1

Mayor Jones stated at this time the election will now be open pursuant to Resolution 2007-003, the election for the incurring of the bonded indebtedness, the levy of special taxes and the establishment of the appropriation limits for the City of Highland Community Facilities District No. 2007-1. The City Clerk may now conduct the election.

City Clerk Hughes stated she does have the ballot from the landowner which was mailed in. The envelope is marked, the identification envelope, with the return ballot. This ballot represents twelve votes and Proposition A has been marked yes and Proposition B has been marked yes. She will certify the certificate of the City Clerk as to the results of the canvas of the election in term.

Mayor Jones stated the City Clerk has received the ballots from the landowners in the District.

City Clerk Hughes stated the canvassing board for the City of Highland Community Facilities District No.2007-1 special election held on January 9, 2007, has completed the canvass of the ballot. The canvas was as follows; on Proposition A, 12 votes were cast in support of the Proposition and 0 votes were cast in opposition to the Proposition, therefore, Proposition A was approved with a 100% vote in favor. On Proposition B, 12 votes were cast in support of the Proposition and 0 votes were cast in opposition to the Proposition, therefore, Proposition B was approved with a 100% vote in favor.

Mayor Jones closed the public hearing.

A MOTION was made by Councilman Timmer, seconded by Councilman McCallon, to adopt Resolution No. 2007-004 Declaring the Results of a Special Election in the City of Highland Community Facilities District No. 2007-1 and Directing the Recording of a Notice of Special Tax Lien. Motion carried, 4-0, with Councilwoman Scott absent.

RESOLUTION NO. 2007-004

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND, CALIFORNIA, DECLARING THE RESULTS OF A SPECIAL ELECTION IN CITY OF HIGHLAND COMMUNITY FACILITIES DISTRICT NO. 2007-1 AND DIRECTING THE RECORDING OF A NOTICE OF SPECIAL TAX LIEN

A MOTION was made by Councilman Timmer, seconded by Mayor Pro Tem Lilburn, to adopt Ordinance No. 311 An Ordinance of the City Council of the City of Highland, California, Acting in its Capacity as the Legislative Body of City of Highland Community Facilities District No. 2007-1 Authorizing the Levy of Special Taxes within that District. Motion carried, 4-0, with Councilwoman Scott absent.

City Clerk Hughes introduced Ordinance No. 311:

ORDINANCE NO. 311

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HIGHLAND, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY

OF CITY OF HIGHLAND COMMUNITY FACILITIES DISTRICT

NO. 2007-1 AUTHORIZING THE LEVY OF SPECIAL TAXES

WITHIN THAT DISTRICT

which title was read.

CITY COUNCIL/REDEVELOPMENT AGENCY LEGISLATIVE

18. Appointment of One (1) Vacancy on the Public Nuisance Hearing Board

City Clerk Hughes stated there is one vacancy on the Public Nuisance Hearing Board. There are three applications before you for consideration.

Mayor Pro Tem Lilburn nominated Bonnie Baldwin.

Councilman McCallon seconded the nomination.

Bonnie Baldwin, a member of the public, was appointed to the Public Nuisance Hearing Board with the term ending August, 2010.

19. Update on SANBAG, SCAG, Omnitrans, Work Program and Regional/Legislative Issues/Development Issues/Subcommittees/AB 1234 Updates

Councilman McCallon excused himself from the dais prior to the discussion of the LAFCO item to be discussed by Community Development Director Jaquess.

Community Development Director Jaquess stated there are two issues in regards to the San Bernardino Valley Water Conservation District reorganization. Item one is the Water Conservation District has asked LAFCO to determine if they are non- district status and they believe they are non-district and this modifies LAFCO's jurisdiction. Municipal Water District submitted a plan for services to LAFCO in December to implement the action of LAFCO. Municipal Water District is proposing to absorb the Water Conservation District into its structure. In their proposal they have identified that Plan B would continue to be a priority. They would absorb all the current staff from the Water Conservation District at their current pay. He is quoting their proposal now. The Water Conservation District Board would become an Advisory Board to the Municipal Water District for a maximum of a four-year appointment. The issue of the proposed consolidation as submitted by the Municipal Water District is coming up at the department review committee at LAFCO on January 25.

Councilman Timmer stated initially we had a committee formed and one of the recommendations we made, and he thought LAFCO adopted all our recommendations, wherein relation to Plan B that we had a concern of the consolidation occurred too rapidly, it would impact Plan B and the decision was the action to consolidate would not occur before June of 2007 which gave us a full year to complete the Plan B process. His question would be is if this process goes forward, would the consolidation occur prior to this time or after June 2007?

Community Development Director Jaquess stated he does not know what the

schedule would be at this point.

Councilman Timmer requested research on recommendations made by the working committee to LAFCO. The second question is we have already gone on record as being in opposition to this. Do we need to restate this at the current LAFCO meetings?

City Attorney Battersby stated if the city is still in opposition then yes.

Councilman Timmer stated if the Council agrees, staff needs to prepare a letter for the Mayor's signature to go ahead and continue to be in opposition to this process.

Mayor Jones stated the letter of opposition from the Council would not include Councilman McCallon.

20. San Bernardino International Airport Authority and IVDA

None

ANNOUNCEMENTS

Thursday, January 18, 2007 at 11:30 Work Program Study Session

Wednesday, January 31, 2007 at 11:00 Work Program Study Session

CLOSED SESSION

At 7:46 p.m., the City Council and Redevelopment Agency convened into closed session regarding the following:

CONFERENCE WITH REAL PROPERTY NEGOTIATOR

Pursuant to Government Code Section 54956.8 regarding the following property:

Property: APN 278-111-13

Negotiating parties: Joseph Hughes, City of Highland

Mark S. Adams for Ralph A. and Tressia M. Coiner (deceased)

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

At 8:13 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 8:15 p.m. in memory of Marlene Fawcett.

Submitted By: Approved By:

Betty Hughes, CMC Ross B. Jones

City Clerk Mayor