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HomeMy WebLinkAboutR06-RDA Item . . e. " . ~.- ::::-:." !\;~~~-:~ ""-~:-\ (~~ "If "f~ ~'i"F' .,' *: - {f '. """c ~ 'f ., 'l' , ,1 \'" - ;! ~fJ \. ..../~ -""?:...c...:.D;.! RecIeYelop...~9. CItJ.ofSQ.'~ '- ''-'' "'-;'. -', - -- ',.' -,_\l ~NllItIa"D""'" '-"aJlJaar. ......-eM ..lIJ41' (71") 314.5011 PAX (114)"""'13 1'riIIe" O~ JUNE 22, 1990 AMENDMENTS TO TKE AGREEMENTS HITK HOQO-KUSING AND ASSOCIATES FOR FINANCIAL SERVICES SYnoDsIS of pr.vlous Commission/Council/Committee Action: 4-02-90 CoIIunlty Dev.lopment Commission received and filed the first Agr....nt with Hood-Kuslng and. Associates for financial services. 4-09-90 CoIaunlty Development Commission r.celved and filed the status. report on the First Agreement with Hood-Kuslng and Associates.' 4-09-90 OoInunlty Development CommisSion r.celved and filed the Second Agreement with Kood-Kuslng and Associates for financial services. 6-04-90 Community Development Commission adopted a Resolution authorizing the Agency to continue expenditures at the 1989-90 level. e Recommended Motion: (COMMUNITY DEVELOPMENT COMMISSION) Move to authorize an Increase to the Agency's 1989-90 Budget, Line Item 16600, Financial Planning Consultants, by $30,000 and to authorize an Amendment to the' First Agreement with Hood-Kuslng and Associates In the amount of $4,000 and to authorize an Amendment to the Second Agreement with Hood-Kuslng and Associates In the amount of $8,000. Respectfully Submitted, rector e Supporting data attached: Yes Funding requlrt1lK!nts: $30,000 Commission Notes: Hard: All Project : All 1307A Agenda of: July 2. 1990 Item No.: 6J e fit e o o RedeveIopmellt .AaebcY S T A F F R E P 0 R T In the FIrst Agreement. the fIrm of Wood~Huslng and AssocIates was dIrected to assIst the Agency wIth the maxlmlz~tiOft of yIelds the Agency can earn on Its Investment portfolio by undertakln.g a revIew of the cost. risk. and rate of return from alternate Investment strate,t., avaIlable consIstent wIth the Agency' 5 extstlng ,"vestment poltcl...and the fIrm was dIrected to maxImIze the leverage whIch that portfolIo gives the Agency In obtaInIng loanable funds fro. the banking cOllllUnlty. In c~tlance. the fIrm has arranged a maximum ltne of credtt from Well s hrgo~k to be used for Redevelopment purposes. Also. the flTllllSststed in the "'lQtlltlon of a loan to the Agency to. In turn. be loaned to H.A.B. Oev.l",ntforth. constructIon of off-site Improvements. lOCated south of Inte~stlte21S between 'Cable Creek and the DevH's Canyon flood control channel.. The FIrst Agreell~nt was for a sum not to exceed $15.000. to be btlled at the rate of $125 per hour. plus reasonable expenses Incurred by the fIrm. In the Se.cond Agreellllnt. Hood~Huslngand AssocIates WaS dIrected to assIst the Agency aild the ec.unlty Oevel~ntOepartllent fOrtllUlate a package on the OraRgeWOO(i Estates and to assist the~eveloper of the Nestslde ShoppIng Center secure an anchor tenant, The Second Agreement Is not to exceed $15.000. Attached. for your revIew, Is a report from Wood~Huslng and Associates outHnlng the status of work aCCOlllPltshed on the First lnd on the Second . Agreement. Due to the outlIned change of dIrectIon and the expansIon of the work. program. Amendments to the First and Second Agreement are antIcipated. It Is proposed to Increase the First Agreement by $4.000 and the Second Agreement by $8.000. for a total of $42.000 for both Agreements. On June 4. 1990. the CommissIon adopted a ResolutIon authorIzing the Agency to contInue expenditures past July I, 1990 at the 1989-90 fundIng level. Foodlng for Budget lIne Item #6600. Ftnanclal PlannIng Consultants, Is currently at the level of $30.000. Staff 1$ seekIng approval to Increase thts Une Item by the amount of $30.000 for a total of $60.000 to provIde funding for these Amendments and for future work programs. Recently. Requests for QualIfIcatIons were sent to eleven fIrms to seek qualIfIcations to provIde the Agency wIth financial and economic analysIs of varIous programs. These Requests for QualIfIcatIons must be receIved by the Agency no later than July 6, 1990. After the QualifIcations are revIewed and approved by the CommIssIon, It Is antIcIpated that the fundIng level for these servIces Is to be $60,000 for the FIscal Year 1990-91. e . o JUD. 11, 1990 .h'-"'i:.IVtu JUli 1 ; 19>.', t;t'lrl~ . ....""..... . io."r :. _. Robert '("'~" .let,1a,. ~ctQr 8.. ~. . . .... _ .Q.t=. "lq..t a....cy 300JlOrtlll" ." o' 8.. BerDarIlU.O, CA 92418 "'/'. UIOEIot:'llnlll...... SuiIoA06 ....._ r ..CAt24JO (7Wll..;24U Dear lob: FAX (714)3tl.clOP5 o I>> At JOW: r~t I "-,,, 0-0l1li'1..,.11 ...~ ~., ~... 'J:'Ci)jec.t. wtltO W~"'_",,,,,,,,, la, .~.lf'Of ... ,.,. AM", 'l..j.......ll.....:...t ~" t..~...tl1.J,1...t. :: \'::.....I~..:ti=t.=DU;:"I=_::r:; th. Agency, tbe NaJOl'a84 tu'eouacll. ......_nn.... T~""" --""Ja - --t: Our wort OIl thi. ,roject~. been c.,l.t_ .\ICe...fully. 7be city an. ~c:r .84M up tI.ttb '30jt,OOO u. -profit on th.ir lull ~,,~t, ,Iu. tbe Ag~ tlUl.... ~C....J:'cial rat.. of int.re., ud point. on loan. to th..ev.lo,.r. Anticipat.d time to cOllPl.t. ,roject: 0 Iaoun 0 Co.t "at:~.... -"-laG e.nt:_: ~ IlarDt Wood-Huaing 11 curnDtlr participating !n 4i~..ion. with tbe cteV.loper .... a .jO&' foo4urUt: .01l8.a that 11 iat.r.at.. ia "becoainv. th, uchor t....t for this ..v.lopae..t. fh diacuaaiOlll bav. ,roc..... to a point wb.r. th. chaia 11 about to ..11:. a final 4ecidoD. Antici,.ted till. to cOllplet. project: "~IML. This "penda upoawb.th.rtbb Martet approve. th,pJ:'oject, and wh.th.r tbe Aleney wut. Woo4-Hwliag to eOllt!nu. to the a..i.t the dev.loper and the ehaill ia in.uring the d.al i. .uee.a.ful. W_t:attt. lIh_iaG r....t:_: 1'...~lK'ial laatitutioa '!'he AgeDey r'W..t.. that Wood-HUlin, follow up OIl cOlltaets with a ..jor fiDancial iutitutioa Wbic:h !n4icat.d to U8 that it had u iDter..t iD locatia, III the c.nt.r. -- It e o o I>b~aiOD' ..."- ........b.14 ri~" .1:,. de~"'Ud tb. _1::I.~\tt:J9n_. '.11", ,. '~l to '''')~titUtiOJ1 ...t COM froll .1tbv ~e Attmcy ..the ""'!Oper. "~ic~~ ~~~'P\! ","j~. . ~. ..... '''.11.' .~. ......~i> . ~:. ...h....."'~"o eontiDue to ~-..lJbti_WiI.... ..*tIle ttll~.lal1D.tit\ltion a tryin. to ..It, ..lia . :r_-~-'" ~~_ .=-=~~~_'1ot::'~~~;.r:=~;.:~ :a::l:;'~.i.,~Ii"t _..~...=.-=. w.t.tJa "01"'1_~ iiftltutd at CO\1nCU....UU1.y.. r.....t. . 'tbia porticm.f o"'tf.P,I;'k effort ba. taken .~~ .ot'. u.. tban. iUtj,aU, ~'''~~te4 J:lec:a.of. a ..... in .trat4tft. 6t~....... At-Ilcy an4 tile Mayor'. d.aire to obtaill \lIlr'Mtt:l.~ Iou lae. of credit. Ini UaUy our W'Qr~ fOC:....d 011 oU.rillg tIl' Agellcy 4 option., witb tb. goal. of ud.idng yie14 at .inimum r18k: 1. HailltainiDg curr.nt practice. 2. Working 011t. a relation.b.tp wher. .taU woru with on. ~.ti~qt~" .~lc;H)r trader toplac' order. for a wi4er...iCr~ :l.nv"1:-.nt J.a.tnMftt. witb equal .af.ty. l.v.la "'t bip.r yi.l4a. 3. Having the City 'trea.urer inve.t JU)A'. fund.. 4. Payag a .ajor in.titution to _Dage the agency'a portfolio '\abject to RDA POliciea. A. unr.atricted loan linea were proving aOll8what hard to get, w. w.nt back to thebarat. aad.. upped tbe ut. iD our dbcua.iona, byaaling th_. what th.y would do for the ae.ncy on the lending aide, in _change for baving tbe rifbta to bec:o.e ita portfolio aanager. Our report will thua include a diacua.ion of thi. fifth option. . . e o e o o AIlt.tcipat.el tiM tOC0lIP1.t.. ~:I.ct: .10 .... eo.t '1~.. nl. .t.. 1.......1:.. CoIIIt-l-'..Of tU reJlC>l't ..t lwalt tb. f1ial oUtOOM of tbtt Ioftwa, 11n. cll&CUII.1DD.. ......awiJur ID OW 1...t l'~, .. d~." Itt.-pt. toobta:!.n I .~_~~!_1~.E; .. '.'or ....... ',! '; .....$""t.....~..",.~.. nb :ru~J:fltM::A1V;JIf'~~o::~.. I........ and l:'.:~.IW~_::: fr. tI1.~,.", ,.0' ......1:..=....#,..1:.t.1:. ...... ....iael.l C~41t. .1_. ""'. ........... ....."~.......... .... 1. .......'.. ...... 'j._~.. l.lf.boiH.. ... ....l -.el :=.:~1t:-:,.:II~::!t;ftd 1':':;".:~r:t:~flc.nt In tb... C~~...'lDD... hav. llUect tU ave...nt anel bOl'rOValJ al_...... or..,. .t. .t"o t.il4t-..t .ofl.r. from the ballJct Wlth...... ... Jaf:jl4.l89'COIMl'..tiona . It b our hOpe to_..;_f~for fOurcouiderat1on afore the .nel of the IIOJlth. ADtic.lpat.. t,iat to c..l.t. p.-o.:t.ct:15 IIoure Co.t: '1,8". . nia................ucc... wltb.thOh l.nel.n curr-tlYfa.l..._t~ ",..tioa. on tile pacta... th.y ar. r.vlewiDJ. Utili_ &trat." .ta unaucc...ful, more work will a l'equlr.ct. Very truly yours, ~ ~ Wod. h,en. R. Wooel 'enior Partner o o Apr11 3, 1990 Mr. Robtrt ~~., Act!Il' J)irec~or ... .....rtiaO ......10IlMlltAPllcy 300 IDrth"J)" 8~t S.. letaardillo, CA92418 1180 Eul NinIII-. Salle A-6 SIn Ben-dl.... CA 92410 (7J4)Q2.2485 -ar Bob'. FAX (714)381.0095 ... e e At YO\ar r~tI~~9""'llt"belOtf ~ the fOlarP'9j.cts _.iohW004-"~J'''''tl'"""", .i.rJ., _"If of the _pacy. ~ .Iijlch..o....~ .... O,*"i.."OIar aharge from DA,.. .. ~~.lt# <~ .~of t1ae. _ichha. Nell ..,.n..-to ""t..<~ ~;J:c)u9h ..tiaat. of th. ..ount of tUte requ!rM toflDl8b tbe it.. III ,u.ral let_ 1Ddicat. ~t the UlOunt of tille which Wood-aa.in, wUleleVOtf to tIl... _d s1ll11ar efforts on tb. a,.acf'.~fc..t _ -tiaated Witb preciaion beca~. oft.. MtUr.oftb.e work. W. believe we have ..timat.d on the hi9l1 siele below. :r_.~t: ~Ut!Y In order to aullli.e the field which JtDA neeive. f;rom it. inve.tment po.-tfolio, thel""IlCYhaS aaJce4 Woo4-lCutin, to rfYiew the rates of "t..,. AIldrlW of YUfin, iilv..talent strat_i.s. and ree1:lIilll.,t _ QI>>l'OPriat. Maner . for the apncy to h..dle its fUll" in the future. In tbis li9l1t, we bav. int.rviewed a .ariety of local baakuna,ers, re,i~l ....,,.., . !av..tlant portfolio unaprs ancs floor trad.rs at..eIl ..jor bailJc witb whom the apnCJ doesbUsin.ss .swel1 .. the city t~s\arer. In acld1tion we bave review.dtbe aDA's ni.till' portfolio ..d investment poliCf. and b.ld talb .witb tb. City 'lreas\arer. Weare scheduled to talk with two additional buts and two brok.rage bous... OUr wort bas focused Oil tbe c\arreQt investlant strategy and bowaDA sbould consider UleD4in, it. ftealtenative. ap~r to be: ..!atainin, C\arrellt practice, workin, out a relationship where .taff worb with ~ .1Dat1t,*tion's tloor trader to plac. orders for a tt14ft variety of investment instrwaents witb equal saf.tyl...18 but bi,her e It e . o ill Ji.14s, laaviD, th. Qity . T",s~er 11l".t ~'. fUll"', and "fia,. ..jell' j,UtitUtioll to ....,. th. .,ocyt. portfolio .Ubj.ct to IDA polici.s. ~ B'Ch of th... o,tion. haa positive an4 ..,.tiv. ....Ct8 . wbich will be outlua" in our find report by th. .n4 of April. '1'1M iDv'st.. to ut,: A44ition.l '1M: '1'ot.l 32.5 hour.. .a.a.A hour.. 65.0 hour.. Co.t: Coat: Co.t: .. ,062.50 .~-,!O&,~.so '8,125.00 .... -~........ --.~~..... In or4er tOIlU.ilti'.th. 1l8e of .It..c.rc::. r.sourc.s, th, IDA .p~ent~fwl~to f. .,.r. to l-..r.":I.t. ....t. to obtdll I>>ank'l~to f"'~. --oflt_ dfort.. Currentlr ...1.0.....;.......... writtea.fora. auch a. pri.. ,lu. po....i:. "l.b~..tlll, ~l,~. 1U).l has ..t84 Wo04-lIu8iiat tofin4 . w.r toobtaua .uch fund. at IIOre competitift rate.. Aa part of our con"~rllaUOll. wtth the ..jor banks we have 4i8CU...4 ra1:...4...th", of obtaini_ this fun41n, for RDA.' In eff-.t tJaII. ..cr .nu14 ""'1' to have 801le pacu,e. whiCh "j,l~.Ufyfor below pr_... they can be View" .. tU ...t 104..., br theloan1ll, .pDCy. Other pacta,.."Utile atcOIIIMrCi.l r.te., but clo.. to prille bec.use of tbe ltDA' 8 .troll, balanc. .beet. The fir.t packap to to be pl.ced before the bob will be the HAIl packa,.. It is COMplete .n4 ,Oill' out this weet for review. T.iae inve.t84 to ute: M4i tional Ti..: Total 31.0 bour.. u..Jl hours. 45.0 hours. Co.t: Cost: Co.t: '3,875 '1.'150 f5,625 DlI1r.._.,.... .1'.ftvlllftA a..-l. -"I: '1'he RDA apparently w1.he. to in.ure that the affordable hou.iD, project proposed by ])ute'-~"4Aa.oci.t'.' Inc., an4 aPProve4br the Mayor all4 C....llCouncil, .ucceed, but with. a lIiDi.. risk to the .,.Of, . wbile achievin, ...~ co.patibility with c....~1al yi.14., risk lev.ls and ..curity. Wood-Huain, .... .Z'eIIWt8ted to work withRbA, the eo.unitr DevelOPlltnt ~t and ])ut"-Duke. an4 r.0..-n4 a pacta,. which WOU14 achieve tbe.e Objective.. . . o o 1fOo4"'lIUirlSJ ba.. aOCOIaplbb84 all of tb..eobjective. anel · *'fIIo1't .....,......1.ac:84irl the .......I>ft...,...~. 'fbe OJaJ,' *...~.t.~1 efl~ ..~ cnar pan .1~t .. 111 ,,1.tirl9 ....,. C';-"~'tr~ClI!..~t 91' .~. C1t,At~".office iJl,..n..., t~f~l dOcn.,ra.t.or .....l-.atirl. tbe _'''lIlt.. .bac.a.. 10 bO\ar. iIbowD below.. '1't.. 10y..t84 ~o elate: AIIltlODal ,.....: '1'ot:al 30.0 bour.. 1Il...QboUr. . -10.0 benan. Coat: Coat: co.t: $3,750 11. 2'~ ",000 "'bt~ . IIItftBBtftft .~'t.ar n._ apJIaJ'IDt)7 ,.10e. to... . .bo,ppirl. ceDtel" built . .. W..~... .fJi....1erDQ41Do .t ...,.U_ -.sJJctllc.l CcNltu Drlv,,~"'i)a9.' ~ .....to ".lat tbe 4eVeloper irl' fiD<< _ llDchOr fooCt .tor. teunt. 'ft.. tnye.t.el to elate: A4Cl1tiooal '1'1..: total 1.0 hour.. ll...O. bour.. 16 . 0 hour.. Co.t: CO.t: Co.t: . 125 ft.'7~ . ,000 ... -py "'4Il~rae~.. Y ..... II Autborbe4 Cootra<:t 2'111': mo--..teel 2'1IIe: Dou.eel 2'1118: 2-10 hour.. lli boun. 1-1bour.. Cost: Cost: Cost: '30,000 120.750 . 9,250 Veq tru y yours, .~) J E. Huslng, Ph.D. 880101' Partoer e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 e 15 16 17 e 18 19 20 21 22 23 24 25 26 27 28 o . FIRST ~ TO ~~ FOR PROtPBSSIONALSBR9ICBS THIS FIRST AMENDMENT TO AGI\EBMENT is made and entered into this day of , 1990, by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a pUblic agency ("Agency"), and WOOD-HUSING AND ASSOCIATES ("Consultant"): WITNESSETH: WHEREAS, the parties entered into that certain Agreement for Professional Services dated February 28, 1990, and WHEREAS, the parties desire now to amend said agreement by increasing the maximum compensation allowed thereunder from $15,000 to $23,000, NOW, THEREFORE, the parties hereto agree as follows: 1. Section 3 of said Agreement is hereby amended to read as follows: "3. Terms This Agreement shall commence as of the day and year first above shown and shall remain in full force and effect until the services described in Attachment I have been completed. The Executive Director of the Agency or his or her designee is authorized to expand the work assignments of the Consultant as long as the approved amount of $23,000 has not been exceeded.". / / / DAB/ses/Service2.agr e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e e o . 2. The first paragraph of Section 8 of said Agreement i8 hereby amended to read as follows: "During the term of this Agreement, Agency shall pay Consultant, on an hourly basis in accordance with the schedule described in Attachment I. Said compensation shall be considered full and complete reimbursement for all of Consultant's costs associated with the services provided hereunder. The maximum compensation for services, including all COnsultant's costs, under the terms of this Agreement, shall not exceed $23,000. 3. Except as amended herein said Agreement shall remain in full force and effect. / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / DAB/ses/Service2.agr . . 4 5 6 7 8 9 10 11 12 13 14 15 . 16 17 18 19 20 21 22 23 24 25 26 27 28 o . 1 2 AGREEMENT BY AND BETWEEN THE COMMUNITY DEVE~OPMENT COMMIS$ION OF THB CITY OF SAN BERNARDINO ON BBHALF OF THE 3 REDBVELOPMBNT AGENCY OF THE CITY OF SAN BBRNARDINO AND WOOD- BUSING AND ASSOCIATES. IN WITNESS WHBREOF, the parties hereto have caused this First Amendment to Agreement to be executed as of the day and year first above shown. COMMUNITY DEVELOPMENT COKIIISSION OF .'l'Jq CITY OF SAN BB1tNARDtNO, ON ISEKAI.' 0' THE REDSVlLOPMBN'1'A.~CY -OF THE CITY OF SAN BERNARDINO By: Robert J. T8IIIp1e, Acting Ex.cuti". Director ~UL'''' ~ By: 'I)ll .u~. · APPROVED AS TO FORM AND LEGAL CONTENT: ~ APPROVED AS TO PROGRAM: REDEVELOPMENT AGENCY OR THE CITY OF SAN BERNARDINO BY:~((L~~L?f- Divis on Manager DAB/ses/Service2.agr e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 .. . 22 23 24 25 26 27 28 o o FIRS'!' ~ '1'0 ~ POR PROdSSIOMAL SBIl9lCBS ~IS FIRST AMENDMENT TO AGREEMENT is made and entered into this day of , 1990, by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, on behalf of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public agency ("Agency"), and WOOD-HUSING AND ASSOCIATES ("COnsultant"): WITNESSETH: WHBREAS, the parties entered into that certain Agreement for Professional Services dated March 22, 1990, and WHEREAS, the parties desire now to amend said agreement by increasing the maximum compensation allowed thereunder from $15,000 to $19,000, NOW, THEREFORE, the parties hereto agree as follows: 1. Section 3 of said Agreement is hereby amended to read as follows: "3. Terms This Agreement shall COIIIlIIence as of the day and year first above shown and shall remain in full force and effect until the services described in Attachment I have been completed. The Exeoutive Director of the Agency or his or her designee is authorized to expand the work assignments of the Consultant as long as the approved amount of $19,000 has not been exceeded." / / / DAB/ses/Servioes.agr . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . o o 2. The fLrat paragraph of SectLon 8 of saLd Agreement Ls hereby 8IIIended to read as follows: "DurLng the term of thLs Agreement, Agency shall pay Consultant, on an hourly basLs Ln accordance wLth the schedule descrLbed Ln Attachment I. SaLd compensation shall be considered full and complete reimbursement for all of Consultant's costs associated with the services provided hereunder. The maximum compensation for services, including all COnsultant's costs, under the terms of this Agreement, shall not exceed $19,000. 3. Except as amended herein saLd Agree.ent shall remain Ln full force and effect. / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / DAB/ses/Services.agr I- - e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o AGREBMENT BY AND BETWBBN THE COMMUNITY DBVBLOPMBNT COMMISSION. OF TIlB CITY OF SAN BBRNARDINO 0Jf BlnlALP . OF THB RBDBVBLOPMBNT AGENCY OF THB CITY OP SAN B~INO AND WooD- RUSING AND ASSOCIATBS. IN WITNBSS WHBRBOF, the parties hereto have caused this First Amendment to Agreement to be executed as of the day and year first above shown. COMMUNITY DBVBLOPMBNT COMMtsSION OF THBCITY OF SAN BERNARDINO, ON BBJlALF OF THE RBDBVBLOPMBNT AGENCY OF THE CITY OF SAN BBRNARDINO By: Robert J. Temple, Acting Executive Director CONSULTANT By: Title: APPROVBD AS TO FORM AND LEGAL CONTBNT: B:#~ APPROVED AS TO PROGRAM: REDEVELOPMENT AGENCY OR THE CITY OF SAN BERNARDINO By: d~~~/,:!r~ Div sion Manager DAB/ses/Services.agr