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 Lilburn at the Donahue Council Chambers, 27215 Base Line, Highland, California.

The invocation was given by Councilman McCallon and the Pledge of Allegiance was led by Mayor Pro Tem Jones.

ROLL CALL

Present: Jones, McCallon, Scott, Mayor Lilburn

Absent: Timmer

SPECIAL PRESENTATIONS

None

COMMUNITY INPUT

Mr. Frank Williams, Chief Executive Officer for the Building Industry Association, stated he wanted to commend the City Council publicly for their representation and especially the representation for SANBAG and SCAG.

Ms. Faye Jure stated she resides on Olive Street and she is concerned with the project next door to her property. She would like to inquire how long a project can stand with no progress towards completion after it has been started. Work has ceased on the project in March of 2008. The perimeter fence had been removed and when she contacted the city it was stated the removal was a mistake and replaced the fencing. Debris and rotting sandbags are clearly visible from her property.

Mayor Lilburn stated staff will be contacting her to discuss her issues.

Community Development Director Jaquess stated our Building Official has been in contact with Ms. Jure several times over the last couple of weeks and he will have the Building Official contact her again.

CITY COUNCIL/REDEVELOPMENT AGENCY CONSENT CALENDAR

A MOTION was made by Councilwoman Scott, seconded by Councilman McCallon, to approve the consent calendar as submitted. Motion carried on a roll call vote, 4-0, with Councilman Timmer being 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 28, 2008 City Council Regular Meeting

Approved Minutes as submitted.

3. Minutes - October 28, 2008 RDA Regular Meeting

Approved Minutes as submitted.

4. Warrant Register

Approved Warrant Register No. 432 for November 25, 2008, in the amount of $732,325.22 and Payroll of $72,068.27.

5. Treasurer’s Report for October 2008

Received and filed Treasurer’s Report for October 2008.

6. Bid Award – Bid No. 2008-15, “Rogers Lane Street Improvement Project”

1. Found the bid submitted by Malier Contracting, Inc., non-responsive;

2. Found the arithmetic error in the bid submitted by International Pavement Solutions, Inc. (IPS) an informality and waive same; and

3. Awarded the contract to the second lowest bidder, International Pavement Solutions, Inc., (IPS) of Redlands in the amount of $355,910.95.

7. Developer In-Lieu Fee Annual Report for Fiscal Year 2007-2008

Received and filed the Developer in lieu fee Annual Report for Fiscal Year 2007-2008.

8. State COPS Grant FY 2008/2009 Allocation

Continue to allocate its funding under the annual State COPS grant for the hiring of a Sergeant position under the contract with the San Bernardino County Sheriff’s Department.

9. AB1600 Development Impact Fee Annual Report for Fiscal Year 2007-2008 per Government Code Section 66066

Received and filed the AB1600 Development Impact Fee Annual Report for Fiscal Year 2007-2008.

10. Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2008, Component Unit Financial Statements for Fiscal Year ended June 30, 2008, and the Single Audit Report on Federal Awards

Received and filed the Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2008, Component Unit Financial Statements for Fiscal Year Ended June 30, 2008, and the Single Audit Report on Federal Awards.

11. Letter Agreement with IVDA for Street Improvements

Approved the letter agreement with IVDA for Design and Construction of certain street improvements within the City of Highland.

CITY COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARING

12. Development Impact Fee Annual Adjustment

Mayor Lilburn opened the public hearing.

City Engineer Wong stated this item is the annual update of the city-wide development impact fee. As done in the past two years, the annual update is being done through an escalation factor. There are two escalation factors that you have adopted, one is the escalating factor determined by SANBAG which would apply to the transportation facilities and you have adopted those same factors for local transportation and regional drainage work. You have also adopted another factor called California Construction Cost Index and this factor would apply to other fee categories other than transportation and drainage. It would include, for example, law enforcement, fire, general government building, public libraries, community center and parks. For the purpose of fee adjustment for 2008, you will apply these two factors. We’ll have a 12.5% increase applicable to residential single family homes and it would also increase the fee by 12.7% for commercial developments for 2008. You may recall that a majority of the increase for the transportation and drainage fee has to do with a five-year rolling average which is the index adopted by SANBAG in compliance with San Bernardino County Congestion Management Plan. This factor is the 12.9% for 2008. This year in particular, SANBAG has provided three options that the city can use to adjust its fee. The three options are to just adopt the 12.9%, the other is to recalculate each of the city’s capital projects costs and then base it on the most current data that the city has complied together and submit that project estimated for each of the projects to SANBAG and then we would just use that estimate as the total cost rather than adjusting the cost from last year’s project costs. The third option that we can figure is we do not have an increase this year but have an increase two years later which would then have the effect of combining two years of increases into one. Based on Council’s previous discussions, it was Council’s preference to make an incremental increase on a yearly basis rather than wait for several years and two or more years to make the increase. Therefore, based on that preference that was used in the past, staff has calculated the fee and is now presented to Council for adoption. He would like to add that in the audience is Mr. Williams from the BIA who would like to address the Council on this issue.

Councilman McCallon stated the 12.9% is the five-year rolling average and that is high because there is one year that is pretty.

City Engineer Wong stated the five-year rolling average fixed into the cause adjustment either up or down for the past five years. For the past five years, you have a 4% increase, a 45% increase, a 24% increase, a 4% increase and -7%. So you combine all this together, the trend is still going up because of this 5 years, you have 4 years of increases, including two major increases and only have one year of down.

Councilman McCallon stated if the Council decided not to take the third option which is not to increase the fee, you said if we do it in the second year that we would have to use 12.9% for this year and whatever it is for next year.

City Engineer Wong stated if you don’t do an increase this year, then next year you’re going to increase, you’re going to have an increase that would technically be this year’s increase plus next year’s increase.

Councilman McCallon stated the other option in two years is to just re-price our project.

City Engineer Wong stated that would be an option that SANBAG would allow the city to do but that would require the re-calculation of each and every project.

Councilman McCallon stated he understands that and is surprised that the California Construction Cost Index is 9.1% from last year. That is astounding to him.

City Engineer Wong stated he has an attachment in the staff report that shows the numbers. Are you surprised that is high or low?

Councilman McCallon stated he thinks it is high. He doesn’t doubt that the data shows that but he is just astounded that it is 9.1% in this economy.

City Engineer Wong stated it is on page 12 of the staff report. It takes into account the number in October 2007 and October 2008. The State compiled this cost data.

Councilman McCallon stated he doesn’t doubt the numbers, he’s just surprised.

Mr. Frank Williams, Building Industry Association, stated in all due respect they got notice of the fee increase on the 20^th. We had sent a certified letter to the city requesting a 14-day notice of any fee increase. His request is to continue this item as they have concerns about the 9.5%. They would like to sit down and have a workshop with city staff and have an opportunity to look at the Nexxus Study that was used to increase all these fees. It may be correct, it may not be correct. He doesn’t have to say the state of the economy, now is not the time to be increasing fees. In fact, a number of cities have decreased their fees. For example, the City of Adelanto actually decreased their fees over ½. Last Wednesday night, the City of Rancho Cucamonga deferred their fees and allowed builders to pay their fees with their Certificate of Occupancy. In their letter we noted a number of cities who are working with the Building Industry to help jump start the industry. Permits are down 85% in southern California; we have 175,000 construction workers unemployed. We need to partner with cities to see how we can help jump start the industry.

City Engineer Wong stated he was the staff person who sent out the direct mailing and the emails to the developers who have active projects on the list and it was his oversight that he had forgotten that BIA has an ongoing request for a 14-day notice and he apologizes for that. He would like to say that the city is really not doing any study of any kind that required any analysis as far as this fee increase is concerned. All we are doing is simply applying a factor to the existing fee and then come up with a new fee. So, there is really no additional information that can be analyzed by any parties relative to this proposal. He doesn’t know what additional time would do or any additional information that he can provide to BIA for them to analyze.

Mr. Frank Williams stated they question the 9.5% index. They think they have some figures that would dispute that particular index.

City Engineer Wong stated as he mentioned before, page 12 of the staff report is a copy from the State’s website and that’s where the numbers come from. The city did not compile this information, just simply used the public information supplied by the State. Staff printed this out less than two weeks ago. It has information as late as October 2008.

Mayor Lilburn stated there are no more speaker slips in favor or opposition of this agenda item so she will now close the public hearing.

City Manager Hughes stated at this time what he would like to do is recommend to the Council that staff go ahead and move this item to the next meeting, date specific, and allow BIA to give their input on that CPI. They can give it in writing and we will include it in the staff report.

A MOTION was made by Councilwoman Scott, seconded by Mayor Pro Tem Jones, to continue this item to the next regularly scheduled Council meeting to be held on Tuesday, December 9, 2008. Motion carried, 4-0, with Councilman Timmer being absent.

CITY COUNCIL/REDEVELOPMENT AGENCY LEGISLATIVE

13. Appointments of the Three (3) Vacancies on the Community Trails Committee

City Clerk Hughes opened the floor for nominations.

A MOTION was made by Mayor Pro Tem Jones, seconded by Councilman McCallon, to appoint three (3) Members of the Public, Michael Haynes, Nick Termini and Julio Silva, to the Community Trails Committee with terms ending October 2010. Motion carried, 4-0, with Councilman Timmer being absent.

14. Appointments of the Three (3) Vacancies on the Historic and Cultural Preservation Board

City Clerk Hughes opened the floor for nominations.

A MOTION was made by Councilwoman Scott, seconded by Councilman McCallon, to appoint three (3) Members of the Public to the Historic and Cultural Preservation Board, Nancy Alexander, John Starbuck and Jan-Hendrik Vroom, with terms ending November 2010. Motion carried, 4-0, with Councilman Timmer being absent

15. Tolling Agreement with San Bernardino County

Director of Administrative Services Chuck Dantuono gave a brief review of the staff report.

A MOTION was made by Councilman McCallon, seconded by Councilwoman Scott, to approve and authorize the Mayor to execute a tolling agreement between the City of Highland and the County of San Bernardino relative to property tax administration fees charged by the County of San Bernardino. Motion carried, 4-0, with Councilman Timmer being absent.

16. An Ordinance of the City of Highland adopting Redevelopment Plan Amendment No. 2 to the Highland Redevelopment Project

A MOTION was made by Councilman McCallon, seconded by Mayor Pro Tem Jones, to approve the second reading for the adoption of Ordinance No. 336 of the City of Highland for the adoption of Redevelopment Plan Amendment No. 2 to the Highland Redevelopment Project. Motion carried, 4-0, with Councilman Timmer being absent.

17. Presentation Regarding Senate Bill 375 – A Landmark Regional Transportation Planning, Housing, CEQA and Global Warming Emission Reduction Law

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

City Planner Mainez presented a power point presentation regarding Senate Bill 375, A Landmark Regional Transportation Planning, Housing, CEQA and Global Warming Emission Reduction Law.

Councilman McCallon stated the Bill states SCAG and the subregions can be the ones who actually do the sustainable strategies with cities. SCAG opposed this Bill and still opposes it after it has been signed. This Bill puts into law something that will try to reduce the vehicle miles traveled and to do that they have this sustainable community strategy which has to be approved by CARB. The idea being that we would intensify development around transit nodes so growth would be denser.

Community Development Director Jaquess stated the local general plan under SB 375 still prevails in terms of land use authority. They have a lot of incentives in SB 375 but our general plan does not have to be consistent with the sustainable community strategy. The State will use the strategy to invest transportation dollars throughout the State.

Councilwoman Scott stated she sees another level of government telling us what we can or cannot do and if we do not do them, they will withhold money that rightfully should come to us through the vehicle license fees.

Councilman McCallon stated the requirement to re-zone in accordance with the housing element within three years was not mentioned, also the extension of the Anti-NIMB for affordable housing projects. SB 375 extends a strict Anti-NIMB protection for housing development projects which are defined as projects where at least 49% of the units are affordable to families of lower income households.

Community Development Director Jaquess stated the bill is very much already hinting toward encouraging higher density, infield development near areas where people can drive less and use public transit more. On the other hand it is also a very complicated bill and very lengthy. There are elements which will affect local government.

Councilwoman Scott stated if people are not using public transportation now, they will not be using it later.

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

SANBAG is holding their Metrolink Holiday Toy Express scheduled for San Bernardino County where a free live stage show will be presented in San Bernardino on December 13, 2008. Firefighters will be on hand to collect donated toys for the toy drive. SCAG has decided to see if we could obtain RHNA reform legislation. As of right now RHNA has not built any type of affordable housing and it has put a strain on everyone. A committee was formed to further discuss options. Irvine has filed a lawsuit against SCAG for its RHNA allocation. Irvine’s main objection was to the distribution of low moderate income housing. This is something SCAG has no control over. At the League of California Cities Board Meeting, the league decided to stay out of the lawsuit because it is one city suing 186 other cities.

City Manager Hughes stated an email was sent out regarding an electronic version of the Work Program Items as well as hard copies placed in Council’s mailbox. We will be putting together a final update of work program items.

Mayor Pro Tem Jones stated himself, Councilman McCallon and staff members met with Dr. Thomas, County Superintendent of Schools, to review the proposed day school. They claim to have spent $750,000, $500,000 for the property another $250,000 for planning and architectural and other fees. They are looking to be in construction sometime in the first quarter of 2009 and for it to be completed in the third or fourth quarter of 2009. Nothing has changed from the initial meeting with Dr. Fischer on the same issue except the fact the construction will be done in two phases. A first phase which would be absent of some classrooms and as the need comes about classrooms will be added. We did have some input regarding the wrought iron fence being installed. It was recommended a 6’ fence be installed.

19. San Bernardino International Airport Authority and IVDA

None

ANNOUNCEMENTS

November 28, 2008 Grand Opening/Board Cutting – Lowe’s

December 11, 2008 Special Council Meeting with Assemblyman Adams

December 23, 2008 City Council Meeting will not be held

January 21, 2009 Meeting with Redlands Unified School District

CLOSED SESSION

At 7:12 p.m., the City Council and Redevelopment Agency 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 - EXISTING LITIGATION 54956.9(a)

City of Highland v. McCarty, et al.

San Bernardino Superior Court Case No. SCISS130282

City of Highland v. Richard and Darlene To

San Bernardino Superior Court Case No. CIVSS707766

CONFERENCE WITH REAL PROPERTY NEGOTIATOR

Pursuant to Government Code Section 54956.8 regarding the following properties:

Property: APN 285-742-08

Negotiating Parties: Joseph Hughes, City of Highland

Singh Blair Family Trust

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

Property: APN 285-742-09

Negotiating Parties: Joseph Hughes, City of Highland

Jhawar Enterprise, Ltd. Partnership

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

At 8:34 p.m., the City Council and Redevelopment Agency convened into open session, with all members present excluding Councilman Timmer who is absent, making no announcements.

ADJOURN

There being no further business, Mayor Lilburn adjourned the meeting at 8:36 p.m. in memory of Lisa Lawrence.

Submitted by: Approved by:

____________________________ _________________________________

Betty Hughes, CMC Penny Lilburn

City Clerk Mayor