MINUTES

REDEVELOPMENT AGENCY AND CITY COUNCIL

REGULAR MEETING

AUGUST 23, 2005 - 6:00 p.m.

CALL TO ORDER

The regular meeting of the City Council and Redevelopment Agency of the City of Highland was called to order at 6:08 p.m. by Mayor Jones at the Donahue Council Chambers, 27215 Base Line, Highland, California.

The invocation was given by City Manager Racadio and the Pledge of Allegiance was led by Councilman Timmer.

ROLL CALL

Present: Lilburn, McCallon, Scott, Timmer, Mayor Jones

Absent: None

COMMUNITY INPUT

Mr. Marshall stated he received a parking citation per city code. He owns a piece of property located at Palm Avenue where a warehouse and doctor office has recently been developed. He operates an eighteen wheeler and stores personal belongings at the Palm Avenue property. He received the parking citation and was advised that he could not park on the property. While he was out of town, the due date passed, therefore, he phoned for an extension. He was informed that he could not receive an extension. Once he arrived in town, he came to pay the fine and was informed the penalties had amounted to $1,000. He is requesting Council to waive the penalties of $1,000. He was also informed he could not have a storage container at the property but the property next door has a storage container as well as the other adjoining property is storing an RV.

City Attorney Battersby stated this item has an formal appeals process attached to it on which the Council cannot make a decision this evening as this item is not listed on the agenda.

Community Development Director Hartmann stated the referred storage container belonging to the chiropractor office has been informed they cannot have the container.

Councilwoman Scott inquired if the item has been brought before the Public Nuisance Hearing Board.

Community Development Director Hartmann stated it has not as it is an administrative citation issued to the owner of the property.

Councilman Timmer stated there is an appeals process in place.

Community Development Director Hartmann stated yes, there is an appeals process. Within thirty days of the issued date, an appeal can be made to staff and then there will be an administrative hearing.

Mayor Jones stated because the item is not on the agenda, an action cannot be made. Mr. Marshall can file a formal appeal and be heard before the Public Nuisance Hearing Board.

Bernardino Castenada stated his neighbor, Mr. Meyers, has another month before completing his driveway and his concerns are the excessive driving between 10:00 p.m. and midnight. His wife was walking their dog and the dog was hit by a pellet gun. The name of the individual is Michael Reiker and gave an address and phone number.

COUNCIL/REDEVELOPMENT CONSENT CALENDAR

A MOTION was made by Councilman Timmer, seconded by Councilwoman Lilburn, to approve the consent calendar as submitted with Councilman Timmer abstaining from item number 2 and item number 3. Motion carried on a roll call vote, 5-0.

1. Waive the Reading of All Ordinances

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

2. Minutes - July 26, 2005 City Council Regular Meeting

Approved Minutes as submitted.

3. Minutes - July 26, 2005 RDA Regular Meeting

Approved Minutes as submitted.

4. Warrant Register

Approved Warrant Register No. 403 for August 23, 2005, in the amount of $322,186.87 and payroll of $62,330.36.

5. Grant of Easement for Webster Street Sidewalk

Accepted the Grant of Easement from Patrick & Richardis Taylor and direct the City Clerk to record the Grant of Easement.

6. Approval of Resolution No. 2005-047 Adopting a Retirement Health Savings Program

Adopted Resolution No. 2005-047 adopting a retirement health savings program implementing the ICMA Retirement Corporation VantageCare Retirement Health Savings Plan (RHS) as followed by private letter ruling issued by the Internal Revenue Service.

RESOLUTION NO. 2005-047

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND, CALIFORNIA, ADOPTING A RETIREMENT HEALTH SAVINGS PROGRAM

AS ALLOWED BY PRIVATE LETTER RULINGS ISSUED

BY THE INTERNAL REVENUE SERVICE

7. Easement Acceptance/Neighborhood Housing Services of the Inland Empire (DRB 04-008)

Accepted the Grant of Easements for road and drainage purposes and for sidewalk purposes, and directed the City Clerk to record the Grant of Easements.

8. Easement Acceptance/Neighborhood Housing Services of the Inland Empire (DRB 04-011)

Accepted the Grant of Easements for road and drainage purposes and for sidewalk purposes, and directed the City Clerk to record the Grant of Easements.

9. Declaration of Two Vacancies on the Community Trails Committee

Declared two (2) seats vacant on the Community Trails Committee and directed the City Clerk to advertise the vacancies on the Committee.

10. Award of Multiple Bids for the Project Entitled "Highland Fire Station No. 3"

• Awarded Bid Package No. 1 - General Construction to Dalke and Sons; and
• Awarded Bid Package No. 2 - Masonry to Persall Masonry; and

3. Awarded Bid Package No. 3 - Sheet Metal to R.B. Sheet Metal; and

4. Awarded Bid Package No. 5 - Plaster, Gyp Boar and Insulation to Caston

Plastering; and

5. Awarded Bid Package No. 8 - Plumbing to Verne's Plumbing; and

6. Awarded Bid Package No. 9 - Electrical to Dalke and Sons; and

7. Deferred Award of Bid Package No. 7 pending outcome of protest; and

8. Authorized the Mayor to sign all necessary contracts once properly executed by the awarded parties; and

9. Authorized a budget adjustment in the amount of $753,434 from 029-2502 Unreserved Designated Fire to 029-2100-6030 Fire Building.

COUNCIL/REDEVELOPMENT LEGISLATIVE

11. Contract with Chamber of Commerce

City Manager Racadio stated the Finance Subcommittee has had two meetings with the representatives from the Chamber of Commerce. The new contract is proposed for a duration of two years and reflects a 10% reduction in payment from the city. A reduction in service level will also occur as well as a reduction in costs. The Chamber will no longer be paying half of the registration of the International Conference of Shopping Centers and the city will be paying the expenses for one representative from the Chamber to attend the conference. Also, the annual Christmas decorating contest will be deleted and the minimum hours of operation may be reduced to Monday through Thursday from 9:00 a.m. to 4:00 p.m.

Mr. Sean Lugo stated with the 10% reduction a number of steps had to be taken. First, it was a good opportunity for the Chamber to see how it can be more self-efficient. There are no plans in the immediate future to reduce operation hours but, if needed, it is an option.

Councilwoman Lilburn inquired if the development of a community economic profile brochure for the city is completed as it is included in the proposal.

Community Development Director Hartmann responded Karen Gaffney and himself do a combined effort to help design and promote that brochure. There is budget monies to do a brochure next year, therefore, they will work together to design and distribute. It is a collaborative effort on the design and promotion. The city has beared the cost of printing and mailing.

Councilwoman Lilburn stated the proposal also stated the Chamber will assist in economic development projects.

Ms. Karen Gaffney stated most of the assistance will occur during the International Conference of Shopping Centers conference.

Councilwoman Lilburn inquired if the Chamber assists a great deal in the Citrus Harvest Festival.

Ms. Karen Gaffney responded approximately forty hours of work is done by the Chamber.

Mayor Jones stated as far as who dictates the hours of operation, does it not take away one of the criteria of the Chamber being independent of the city.

City Attorney Battersby stated the city is not dictating the hours of operation, only listing them in the agreement.

Mayor Jones stated if Council dictates the hours, this is taking away the criteria of being individually independent or in fact part of an entity. He would like the statement stricken entirely from the exhibit, therefore, allowing the Chamber the liberty of opening and closing at any time they choose to do so.

City Attorney Battersby stated this is possible or you can have a minimum hours of operation listed on the exhibit.

Mayor Jones stated when the city starts to dictate the hours of operation, then this takes away their ability of being independent.

Councilman Timmer stated if the Monday through Thursday is removed, then the number of minimum hours to be open will be appropriate.

Councilwoman Scott stated under the fiscal impact of the 10% reduction and we also did a 10% reduction last year which totals a 20% reduction in services. This 20% reduction is for an organization which is basically here for the City of Highland. She would not like to see the Chamber of Commerce only open four days a week as the city is trying to bring in other businesses. Chamber staff consists of a director and two part-time secretaries for a city that is growing. She does not support the reimbursement for line items when a person is promoting our city to potential developers, businesses and potential citizens. The exhibit states the Chamber staff will attend City Council meetings and other meetings deemed appropriate by the city. Who will be determining which meetings are appropriate and how many Chamber staff members will attend?

Mayor Pro Tem McCallon stated he would like to clarify the reduction is not 10% a year over the next two years. It is only 10% over the two-year period. It is not a real reduction as we are going to reduce the amount of payment by 10% and when they attend the International Conference of Shopping Centers the city will pay for their expenses. It is a positive move for the Chamber to take the initiative of becoming more self-sufficient.

Councilwoman Scott inquired if a survey of various cities and their chambers has been done. Also, if any of these chambers are self-sufficient. She would like this information available. The city needs to be out there promoting itself.

Councilman Timmer stated the City of San Bernardino Chamber of Commerce is self-sufficient.

Mr. Sean Lugo stated in response to Councilwoman Scott's statement, the City of San Bernardino and the City of Redlands chambers are both self-sufficient. Smaller cities such as Rialto, Loma Linda, Fontana, Colton and Yucaipa all receive funding from their respective cities. Rialto receives $50,000, Loma Linda receives $48,000, Fontana receives $50,000, Colton receives $30,000 and Yucaipa receives $20,000.

Councilwoman Lilburn stated regarding the information just received, Yucaipa is the closest to our city in regards to demographics and population. What is the budget of Yucaipa, number of staff, and the amount of funding received?

Mr. Sean Lugo stated the city funding is $20,000, the budget is $125,000 and has approximately 300 members and one staff member, the Director. During the month of April, the Highland Chamber received a total amount of 700 calls with general city information calls totaling 161.

Councilwoman Scott stated she is against the Chamber closing on Friday. The City of Highland is growing and the Chamber is working more.

Councilman Timmer stated based on that analogy, the Chamber should receive less monies from the city as the Chamber is receiving more clients and membership fees. It was the understanding from the beginning that over a time period, the funding from the city shall cease.

Councilwoman Lilburn stated she does not have the understanding for the need of the contract other then the necessity of funding allocations. The financial support has not decreased although the hours of operation may be shortened.

Councilman Timmer stated initially Exhibit "A" was developed due to the fact that funds cannot be allocated to an organization without having the criteria of how the monies will be spent. This was the reasoning for creating the exhibits rather than instructing the Chamber how to operate. The list of items reflects how the allocation of funds will be spent.

A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilman Timmer, to approve the two-year agreement with a 10% reduction in payment but with a commensurate reduction in service level and cost with the deletion of required operation hours from the contract. Motion carried, 4-0, with Councilwoman Scott dissenting.

12. Proposed Disposition and/or Development of the Property Owned by the Redevelopment Agency east of Highland Community Park (Lillian Lane) and south of Hibiscus Street

City Manager Racadio stated this item was included on the Work Program to go through the process of putting an entitlement and selling the land east of Highland Community Park. This land is approximately four acres. Community Development Director Hartmann has prepared a comprehensive staff report and is excited about turning the property over to the city while also acting as the developer. He will go through the process of the Planning Commission and City Council as the developer of the land. The city will control the density of what is planned for the property and the value of the land will return to the city. The city will generate between four and five times in return.

Councilman Timmer stated based upon the city being able to control what is planned, should the Council choose to do the tract map and go out to bid to purchase the approved tract, will this be done under some restrictive housing allocations?

Community Development Director Hartmann stated a portion of the fifteen acres that was purchased was designated low to moderate income fund. Ten percent (10%) of the monies that was used to purchase the 15 acres was used with our set aside money. Of the 30 acres, a portion should be used for affordable. It is within a redevelopment project area.

Councilman Timmer inquired if any monies received from the sale of the property after the tract map can be used to reimburse the low to moderate account, therefore, allowing no restrictions.

Community Development Director Hartmann responded yes this is feasible.

Councilman Timmer stated the funding for this property is coming from low to moderate funding which has restrictions based upon affordability. The money received from the sale of the property should be more than enough to reimburse the low to moderate fund and have no restrictions if Council chooses to do so.

Community Development Director Hartmann stated the only caution there would be is there will now be a deficit. Within a redevelopment area, 15% of the units should be available to families of low to moderate income.

Councilman Timmer inquired if the city could continue to use the low to moderate funding for this project and only restrict one or two homes.

Community Development Director Hartmann responded yes.

Mayor Jones inquired why would the city want to do this.

Community Development Director Hartmann responded this is one of the goals and policies of the redevelopment agency to make available to residents affordable housing prices. We would take the same approach as the Gardner development down on the private side. We would subsidize homes to allow low to moderate income families to purchase the homes which keeps the numbers flushed. At some point of time, you will be in the deficit due to all the housing units produced in the city. We will need to come up with a factor and a percentage of those are supposed to be made affordable to low to moderate income families. If the point is reached that you cannot make up the deficit over an eight to ten year period, you could be subject to fines or monies can be retracted by the State of California. There may be some fiscal ramifications. He cannot say it would occur but it is a possibility. The bottom line is that the State could step in and develop affordable housing in our community without any say in the matter. There may be penalties long term but this is not a City of Highland problem at this time as the City of Highland has more units than we are required to construct.

Mayor Jones inquired why would the city want to provide affordable housing to low income and then turn around and prevent them from making a profit by restricting the property for 55 years.

Community Development Director Hartmann responded he agrees with the Mayor's statement but it is a state law.

Mayor Jones stated it is not in the best public interest of low income or any other citizen to prevent the possibility of profit from their property.

City Manager Racadio stated as long as the Council has been made publicly aware of the item, you are the policy makers.

Councilman Timmer stated the big issue is the hammer the state has and if we fail to make these required numbers at some point, the state will go after the redevelopment monies.

Councilwoman Scott inquired if the housing is available to low income families and will be located across the street from the park, what measures will be done regarding the vandalism already occurring.

Community Development Director Hartmann responded one of the advantages of the park development plan is that it has public right-of-way on three sides. It seems the biggest problem is on the easterly side where there is no community policing due to the lack of visibility. The idea is with the construction of homes there will be more public assistance.

Councilman Timmer inquired if the homes will be based upon today's housing market even in the proposed neighborhood. Once the project goes through the process and is sold, the price range will still be in the $300,000 to $400,000 range. What would the housing price need to be to meet the affordability requirement?

Community Development Director Hartmann responded there are two ways to approach this; one is zero money can be used and sell the property with restrictions that the homes are to be sold to low to moderate income families. The developer would reflect the price on the property knowing they would have to discount a couple of units to meet the criteria. If a family would try to qualify to purchase a home, for example, a family of four at the higher end can afford a $300,000 home. These numbers were recently ran in the Inland Communities project which is north of Big Pulsar. Homes in the area are selling between $300,00 and $325,000. It is possible for the city to contribute $100,000 to $125,000 to the construction of the homes. It is also possible to make it mandatory of the developer to have the units and discount the selling price.

Councilwoman Lilburn inquired if there is a big difference between moderate to low income requirements.

Community Development Director Hartmann responded moderate is 120% of the median income. Median income is around $50,000 to $56,000 for a family of two. It is also based on the family size.

Councilwoman Scott inquired if a list could be provided for the requirements of the median income.

Councilwoman Lilburn responded there is a list in the CDBG packet.

Community Development Director Hartmann responded it is not the one to review. We receive a report once a year from the Federal Government via Urban Futures. A copy will be provided to Council.

Councilwoman Lilburn inquired if the city gave assistance to a first time homebuyer in the low to moderate income category, would it qualify the city to meet the required obligations.

Community Development Director Hartmann responded no. It is not considered substantial rehabilitation. Substantial rehabilitation would have to invest 25% of the property value after it was improved.

Councilwoman Lilburn inquired if a $100,000 was needed to absorb the cost of construction for one to two homes. Would it be possible to ask the developer to share the cost?

Community Development Director Hartmann responded yes it is possible.

Councilman Timmer stated this would all be negotiated when we go out for request for proposals.

Community Development Director Hartmann stated if the Council requests to have a tentative map prepared, staff would prepare, process and have it entitled. At this time, professional assistance would be sought to appraise the property. An analysis would be done on the types of family that could afford the housing. Based upon the appraisal, it would be determined what the monetary difference between the affordability and the market rate. There are a great deal of variables if the Council is interested in constructing affordable units part of this property.

City Manager Racadio stated on the drive-in theater lot, the city had entered into an agreement for the cost of $20,000 per house to make them affordable. With the housing prices increasing, will the amount needed to contribute increase also or would it be better to go to a developer and propose to make 10 units affordable?

Community Development Director Hartmann stated yes, the amount needed to contribute will be higher.

Mayor Pro Tem McCallon inquired how the Gardner project of 14 units has worked out.

Community Development Director Hartmann responded it has worked out quite nicely. A couple of the units have refinanced for a lower interest rate which includes the city primary loans. The city has not allowed the refinance of the 55 year covenant which still keeps first position. Our goal is keep it affordable for the life of 55 years. It is not visible which Gardner units are subsidized.

Mayor Pro Tem McCallon inquired how many lots will be on the property.

Community Development Director Hartmann responded a subdivision of 7,200 square foot minimum lot size has been done. Currently there are 13 units proposed. If the Council desires to change the lot size, direction can be taken and adjustments will be done.

Mayor Pro Tem McCallon inquired how much is estimated that the city will have to contribute to one or two houses to make them affordable.

Community Development Director Hartmann responded if very low income is chosen, the amount will be substantial. If the higher end of low income to moderate income, then the amount may be $25,000 to $30,000. It depends on the family as what they will qualify for financing for the primary price of the home and the city will pay the difference.

Mayor Pro Tem McCallon inquired if the city is in a deficit in the low to moderate housing.

Community Development Director Hartmann responded he believes not.

Mayor Pro Tem McCallon stated if the city chooses not to make one or two of the units affordable, would it put us in a deficit position?

Community Development Director Hartmann responded his opinion is no. Reports are due in December and at that time a better barometer will be available as to where we stand.

Councilwoman Scott inquired if the item could be continued to another meeting so that Council may review the information further.

Councilman Timmer stated the point the Mayor had made previously is pertinent to this issue. He feels we should go forward with the issue and approve the 7,200 square foot minimum.

Mayor Jones stated take the list that was given, for example, no person on the list would be able to qualify for the units and make the monthly payments. This is using the new criteria that states 50% of the income can be used for housing.

A MOTION was made by Mayor Pro Tem McCallon, seconded by Mayor Jones, to instruct staff to prepare and process a tentative tract map on the four (4)+/- acres adjacent to Highland Community Park (Lillian Lane) and initiate the necessary proceeding to sell the property to include, but not limited to: conducting the appraisal of the property to be sold, draft the required Disposition and Development Agreement and retain a professional realtor/broker to aide the Agency in the disposition of the property. Motion carried, 5-0, with the addition of 7,200 square foot minimum lot size requirement and no affordability covenants.

13. Hiring of a Planning Technician II for the Purposes of Housing Rehabilitation and Expansion of the Neighborhood Pride Home Improvement Grant Program

City Manager Racadio gave a brief review of the staff report.

Councilman Timmer stated this program has been very successful and has worked very well. The neighborhoods have seen a great turnaround and the only concerns are if too many improvements are done in too many areas, it will defeat the purpose.

A MOTION was made by Councilman Timmer, seconded by Mayor Pro Tem McCallon, to authorize the addition of a Planning Technician II position for the purposes of single-family housing rehabilitation; Approve a budget adjustment including salary and benefits for Planning Technician II position, as well as increased program costs for the rehabilitation of homes in the amount not to exceed $382,775 from the Agency LMI Fund and $3,640 from the city's general fund; and Approve a budget adjustment to increase the RDA LMI Fund of Traffic Improvements and Contract Services - Engineering, in the amount of $250,000 and $50,000 respectively. Motion carried, 5-0.

14. Discussion of the Feasibility and Desire to Implement the City Council Compensation Authorized by State Legislation for General Law Cities with Population in Excess of 50,000

City Manager Racadio gave a brief review of the staff report.

A MOTION was made by Mayor Pro Tem McCallon, seconded by Councilwoman Lilburn, to instruct staff to prepare the appropriate documents to implement the adjustment in compensation in accordance with state legislation for cities over 50,000 population. Motion carried, 3-2, with Councilman Timmer and Councilwoman Scott dissenting.

Councilman Timmer stated this is an issue that has come before Council many times. He understands the logic of what is being done. However, he will not support the item.

Councilwoman Scott stated she is appreciative of the report but it should be filed and not be acknowledged. She also is not in favor of the item.

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

Mayor Pro Tem McCallon stated he would like to commend Councilwoman Lilburn

as she is a great advocate for the city and for Omnitrans. She does her job well.

Community Development Director Hartmann stated the administrative draft of the general plan is coming to final stages. The intent is to have the general plan ready for public viewing by September 9, 2005. A copy will be provided to Council. A number of small single family units are moving forward in progress. The apartments at Olive Street and Base Line are progressing nicely as well. A number of small commercial projects at Base Line and Boulder Avenue are being considered; a 12,700 square foot and a 2,800 square foot project for a storage facility and retail shops. The biggest commercial project will be by San Manuel who has filed their application. A 160,000 square foot of commercial with the hotel being the biggest part of the square footage.

Councilman Timmer stated in the renderings it shows work being done in Caltrans' right-of-way, has San Manuel gotten permission for this?

Community Development Director Hartmann stated San Manuel has been working diligently with Caltrans.

City Engineer Wong stated this was part of the original plan and San Manuel is aware that they will have to work closely with Caltrans.

Community Development Director Hartmann stated Calvary Church located at Greenspot Road has been trenching to find the fault lines and should be completed in a few months. The La Praix apartments has inquired if it would be feasible to be reclassified as condominiums. This is being evaluated also. A lot of interest is still being generated for the property located at Greenspot Road and Seven Oaks. The Post Office has moved forward in their design build. The site plan has been worked out and the goal is to have it constructed by the end of 2006. Many new projects are waiting for the general plan to be completed.

Councilwoman Lilburn stated developers are waiting for the general plan to be completed and will the proposed moveable apartments be zoned commercial.

Community Development Director Hartmann stated Base Line commercial does allow multiple-family residential.

Councilwoman Scott inquired if housing can be constructed in a commercial zone.

Community Development Director Hartmann stated the city code presently allows for multiple-family housing under a conditional use permit.

Councilwoman Scott stated this needs to be reviewed.

Councilwoman Lilburn inquired where the 121 condominiums will be located.

Community Development Director Hartmann responded this project is south of Beattie Middle School between Orange Street and Boulder Avenue.

Councilman Timmer inquired as far as the transportation issue goes and there is a grant to widen Fifth Street between the freeway and Boulder Avenue. Three lanes will be needed in each direction and this will be the only opportunity to acquire this land. Does the general plan address this need?

City Engineer Wong responded the general plan will include three lanes going west from Boulder Avenue but not going east.

16. San Bernardino International Airport Authority and IVDA

Councilwoman Scott stated in December, 2002, the Airport Authority and the IVDA was managed by a triage of Don Rogers, Bill Leonard and Tim Saebo. Don Rogers was appointed the interim director. The Airport Authority has concurred with IVDA establishing an assistant director position, Michael T. Burrows. His salary will be $105,000 and will be available September 15, 2005. Don Rogers will work closely with the new assistant director.

ANNOUNCEMENTS

Mayor Pro Tem McCallon stated after reviewing the attendance records for the Planning Commission and other boards, he is requesting this item be brought back for further discussion.

September 10, 2005 at 4:00 p.m. Discover Highland Night at the Albertsons Center

September 19, 2005 at 8:00 a.m. Affordable Housing Conference at Ontario Convention Center

Councilman Timmer stated he attend Southern California Edison's Big Creek tour. He recommends the tour as it is educational and is an amazing project. Winter is approaching and he would like to discuss, at the next Public Works Subcommittee, the flooding issues that has occurred in the past.

A MOTION was made by Mayor Jones, seconded by Councilwoman Lilburn, to add an additional item to closed session. Motion carried, 5-0.

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

Significant exposure to litigation pursuant to Government Code Section 54956.8(a):

Property: Property located at Central Avenue near Sixth Street - Library and Environmental Learning Center

Negotiating parties: Sam Racadio, City of Highland

County of San Bernardino

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

CLOSED SESSION

At 7:36 p.m., the Redevelopment Agency and City Council convened into closed session regarding the following:

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

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

One case.

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

Significant exposure to litigation pursuant to Government Code Section 54956.8(a):

Property: Property located at Central Avenue near Sixth Street -

Library and Environmental Learning Center

Negotiating parties: Sam Racadio, City of Highland

County of San Bernardino

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

At 7:57 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 7:58 p.m.

Submitted By: Approved By:

Betty Hughes Ross B. Jones

City Clerk Mayor