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HomeMy WebLinkAboutR02-RDA Minutes REDEVELOPMENT COMMITTEE MINUTES REGULAR MEETING March 22, 1990 - 4:20 p.m. The meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:20 p.m., in the Redevelopment Agency Conference Room, Fourth Floor, City Hall, 300 North "0" Street, San Bernardino. ROLL CALL Roll call was taken with the following members being present: Committee Member Esther Estrada, Committee Member Jess Flores and Committee Member Michael Mauds1ey. STAFF PRESENT Robert J. Temple, Acting Executive Director, RDA; John Hoeger, Development- Division Manager, RDA; Barbara Lindseth, Accounting Division Manager, RDA; Dennis A. Barlow, Senior Assistant City Attorney; Phil Arvizo, Executive Assistant to the Council; Lorraine Velarde, Executive Assistant, Mayor's Office; Marshall Julian, City Administrator; Margie Vance, Recording Secretary. 1. Audit Contract Barbara Lindseth, Accounting Manager, stated that the two year agreement with the auditing firm of Eadie and Payne, Certified Public Accountants, expired after the audit services were performed for the fiscal year 1988-89. She said that in accordance with the Agency's purchasing policy, on February 14, 1990, Agency staff mailed a Request for Proposal (RFP) for Audit Services to ten qualified professional accounting firms on the Agency's Consolidated Vendor List, and advertised in The Sun on February 17, 1990. She said that four of the ten firms contacted submitted a proposal. Ms. Lindseth said that for several years, Eadie and Payne has performed a thorough and satisfactory examination of the Agency's financial statements, but their proposed fee was higher than others submitted. She stated that KPMG Peat Marwick is currently responsible for the audit of the City of San Bernardino, and must include the Agency's audit as part of the City's audit. She felt that this would simplify the process if the same auditor is used for both the City and the Agency, thus the recommendation to use KPMG Peat Marwick over the others. RECOMMENDATION: The Committee recommended that staff negotiate the proposed fee by KPMG Peat Marwick, and to coordinate the final fee with the Chairwoman of the Redevelopment Committee prior to forwarding the item to the Commission. 1 March 22, 1990 1966R z - - 2. Wood-Busing Agreement Mr. Temple stated that a proposal was received from the firm of Wood-Busing and Associates to assist the Agency with financial services. He said that at the Mayor's request, the firm will assist with the maximization of yields the Agency can earn on its investment portfolio and maximize the leverage which that portfolio gives the Agency in obtaining loanable funds from the banking community. Be said that the proposed agreement is for a sum not to exceed $15,000 to be billed at the rate of $125 per hour, plus reasonable expenses incurred by the firm. Be said that the Agency's 1989-90 Budget, approves for financial planning services in the amount of $30,000. Mr. Temple said that staff is preparing to bring a separate agreement at a later time for services other than those being approved today. A lengthy discussion ensued regarding the coordinated efforts between the City Treasurer's office and the Agency and how Wood-Busing Agreement will interface with it all. RECOMMENDATION: The Committee recommended that the staff report be forwarded to the Commission meeting of April 2, 1990, to be received and filed. Also, that a status report of Wood-Busing's activity be prepared and presented to the next Redevelopment Committee meeting of April 5, 1990. 3. Investment of Surplus Funds. Barbara Lindseth, Accounting Manager, said that on January 22, 1990, the Community Development Commission adopted the Annual Statement of Investment Policy for the calendar year 1990. She said that Agency's attorney felt that it was prudent for the Agency to have an adopted Resolution authorizing the Executive Director, or his designee, to invest surplus funds of the Agency, sell or exchange securities and to make deposits in accordance with the provisions of the Government Code of the State of California and the adopted Annual Investment Policy. Mr. Temple said that Section 3 of the resolution was rewritten at the request of the Committee. Dennis A. Barlow, Agency Counsel, said that the purpose for rewriting Section 3 of the Resolution, was to clarify that although, any financial institution is authorized by law to hold public money, it can only do so if the public agency gives its consent. RECOMMENDATION: The Committee recommended that the item be forwarded to the Commission meeting of April 2, 1990. 2 March 22, 1990 1966R - - John Hoeger, Development Manager, asked that Item 6 be taken out of order. 6. Public Enterprise Center Financial Report. Mr. Boeger presented a financial status report on the Public Enterprise Center (PEC) building, and gave a brief overview. A lengthy discussion ensued regarding some of the steps that need to be taken to alleviate the financial burden the PEe represents to the Agency and the City. The Committee expressed concern regarding the possible relocation of the CATV to the Thrifty Building and the financial impact it will have on the PEC. Mr. Temple shared with the Committee as information only, that the Agency received a letter from the San Bernardino Community College District, wherein they expressed interest in purchasing the PEC bu~lding, and that their opening bid was for $230,000. No further comments were made regarding this issue. RECOMMENDATION: The Committee recommended that the Financial Status Report be forwarded to the Commission meeting of April 2, 1990. 4. Drop- In Center Amendment. Mr. John Boeger, Development Manager, informed the Committee that Mr. Tom Boggs of the Westside Drop-In Center, approached staff to request approval to expand their existing space, and to increase it from 1,089 to 1,889 square feet, beginning May 1, 1990. Mr. Hoeger said that the lease agreement will remain the same as in the original lease except for the expansion of space. A lengthy discussion ensued regarding the lack of more detail in the staff report pertaining to Mr. Boggs' request to expand. RECOMMENDATION: The Committee recommended that the item be continued to the next Redevelopment Committee meeting of AprilS, 1990, and that a representative of the Drop-In Center be invited to attend the meeting. 5. Loan to Simchowitz Corporation. Mr. Temple informed the Committee that this was an information item only and proceeded to say that Simchowitz Corporation had approached the Agency requesting a loan in the amount of $300,000, and outlined a few of the facts as follows: 3 March 22, 1990 1966R - * The borrowing of funds is to assist in the construction of the new 44,000 square foot facility that will house Roger's Bindery; * The Agency will be in second position on the course of construction; * The facility is outside the project area; and * The facility is already under construction. Mr. Temple stated that he had met with Mr. Pat Bopkins of the Simchowitz Corporation and that Mr. Bopkins informed staff that a letter would be presented at today's meeting, giving full detail of the request. Mr. Temple informed the Committee that no letter had been received prior to the meeting and that no Simchowitz representative was present. A lengthy discussion ensued regarding the Committee's concerns in lending money to Simchowitz to benefit Roger's Bindery, since Roger's Bindery has been in poor financial standing with the Agency. The Committee also expressed concerns regarding Simchowitz Corporation not preparing and presenting the promised letter for their review. RECOMMENDATION: The Committee was informed. No action. No recommendation. CLOSED SESSIONS The Redevelopment Committee recessed to closed session at 5:55 p.m. Pursuant to Government Code Section 54956.9(c), the Redevelopment Committee of the Redevelopment Agency of the City of San Bernardino convened in closed session to discuss pending litigation and significant exposure to litigation at 5:55 p.m. The Committee reconvened from the Closed Session at 6:05 p.m. Adjournment There being no further business, the meeting of March 22, 1990, was adjourned at 6:05 p.m. APPROVED BY: ~~K&.a Esther Estrada, Chairman Redevelopment Committee 4 March 22, 1990 1966R