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HomeMy WebLinkAboutR02-RDA Minutes o o REDEVELOPMENT COMMITTEE M I NUT E S REGULAR MEETING June 21. 1990 - 4:05 p.m. The meeting of the Redevelopment Committee was called to order by Chairwoman Esther Estrada at 4:05 p.m.. in the Redevelopment Agency Conference Room. Fourth Floor. City Hall. 300 North "D" Street. San Bernardino. ROLL CALL Roll call was taken with the following members being present: Chairwoman Esther Estrada; Committee Member Jess Flores and Committee Member Michael Maudsley. STAFF PRESENT Robert J. Temple. Acting Executive Director. RDA; John Hoeger. Development Manager. RDA; Gary Wagoner, Project Manager. RDA; Nancy Davison. Project Manager. RDA; Barbara Lindseth. Accounting Manager. RDA: Phil Arvizo. Executive Assistant to the Council; Dennis A. Barlow, Senior Assistant City Attorney; Vince Bautista. Planning Department; Kimberly A. King. Recording Secretary. RDA; Margie Vance Transcribing Secretary. RDA. OTHERS IN ATTENDANCE Jim Rock. Rock Enterprises; Gene Wood. Wood-Husing Associates; John Husing. Wood-Husing Associates; Scott Rodde. National Development Council. Consultant; Cassie McDuff. The Sun. 1. Wood-Husing Investment Policy Recommendations. Mr. John Husing said that the Agency has been engaged in discussions with the banking community regarding the maximization of yields it can earn on its investment portfolio and the leverage which that portfolio gives the Agency in obtaining loanable funds. He presented an eight page report relative to a review of the cost. risk and rate of return from alternate investment strategies available consistent with the Agency's existing investment policies. He reported on the recommendations of the following strategies: Strategy No. 1 - Retain Current RDA Investment Practice Strategy No.2 - Investment by a major Bank's asset Management Department Strategy No. 3 - RDA Investment via a Trader with a brokerage firm Strategy No. 4 - City Treasurer invest RDA Funds. Mr. Husing recommended that the Agency engage on Asset Management Group, specifically Wells Fargo Bank. to handle a major portion of the Agency's portfolio. Wells Fargo has a portfolio worth over $100 million dollars. 1 June 21. 1990 5173R - - - o o Mr. Husing complimented the Agency's Accounting Division for their professionalism and their assistance in answering all questions posed by the. financial community. Chairwoman Estrada expressed her appreciation to the Accounting Division for their cooperation in this endeavor. She stated that Wood-Husing Associates report was very comprehensive and suggested that staff, the consultants and the Committee meet on Thursday, July 5, 1990, to review the proposed recommendations before sending the staff report to the Commission. RECOMMENDATION The Committee recommended that the item be .continued to Thursday, July 5, 1990. 2. Wood-Husing Line of Credit with Wells Fargo Bank. Mr. Gene Wood said that staff was requesting approval to move forward with a Loan Proposal Letter with We1lsFargo Bank. . He said that the loan could be used to assist with the financing of any Redevelopment Project whether regular or tax exempt. He explained that this proposal is designed to extend credit to the Agency as follows: Two lines of credit: Unsecured line of credit $l~OOO,OOO @ prime rate (10.0%) Secured line of credit. j6,OOO,OOO @ prime minus .50% (9.5%) TOTAL PRINCIPAL. AMOUNT $7,000.000 Mr. Wood further stated that the loan is to be paid at the Agency's terms. with a maturity date of December 1, 1991 for both unsecured and secured lines; The collateral for the unsecured is none, but. collateral for the secured line is a security interest in cash or cash equivalent of not less than the Line Commitment. There is no commitment or loan fees and no borrowing base required. He stated that in his estimation this was a good proposal. RECOMMENDATION The Committee recommended that the item be forwarded to the Commission. 3. Wood-Husing and Associates Amendments to the Agreement. Ms. Barbara Lindseth said that 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 Agreement s . Chairwoman Estrada said that as a result of Wood-Husing Associates advice the Agency has not only saved money, but has also made money in a very short period of time. She said that staff was instructed to look into the possibility of establishing an on going relationship with a financial advisor. 2 June 21, 1990 5173R - o o Mr. Temple said that Request for Qualifications (RFQ) were sent to eleven firms to seek qualifications to provide the Agency with financial and economic analysis of various programs. He explained that 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. RECOMMENDATION The Committee recommended that the item be forwarded to the Commission. 4. National Development Council (NDC) Consultant Agreement Renewal. Mr. Temple said that the National Development Council contract is up for renewal on August 1, 1990. He said that the Agreement reflects extending the contract to a three year term, allowing for termination on 30 days notice. Committee Member Maudsley expressed his approval of the contract renewal and complimented Mr. Rodde on his many accomplishments on behalf of the City. Mr. Rodde said that in the coming year NDC will continue to offer training programs and encouraged RDA staff to participate. RECOMMENDATION The Committee Recommended the item be forwarded to the Commission. 5. Miles House Restoration. Mr~ Temple said that staff is requesting execution of the First Amendment to Disposition and Development Agreement which will extend the required completion date of construction from July 1, 1990 to September 1, 1990. He stated that Mr. Rock has made a diligent effort to maintain the architectural integrity of the Miles House and in doing so has encountered delays. He further explained that staff is recommending that he be given an additional 60 days to complete the project. Mr. Jim Rock addressed the Committee and said that he has gone above and beyond normal construction methods both in architectural quality and the aesthetic design of the improvements such as inlaid brick drive, cantilevered handicap ramp, radius wrought iron entry fencing and interior molding reproductions. He reported that there are tentative tenants who have expressed interest in the Miles House and one person interested in purchasing the house. He said that the community has responded very positively to his renovation efforts. RECOMMENDATION The Committee recommended the item be forwarded to the Commission. 3 June 21, 1990 5173R o o 6. Request for Proposals (RFP) - 40th Street Study. Mr. Temple said that on May 10. 1990. the Committee authorized issuance of an RFP to do a detailed corridor study of 40th Street between Kendall Drive and Twin Creek Wash. Staff is currently reviewin9 the proposals from the five (5) consultants who responded. 'The interviews have been tentatively scheduled during the week of June 25. 1990. He explained that after interviewing the qualified consultants. staff will bring forward mutual benefit resolutions and a contract for Committee/Commission approval. Mr. Vince Bautista. Principal Planner. addressed the Committee and said that although five proposals were received. four came in within the specified deadline and one did not. He said that after discussing the matter with legal counsel it was determined that it would not be appropriate to accept the late proposal. Mr. Bautista said that staff notified the affected company of said decision and the company submitted a letter .expressing their apologies. Mr. Bautista said that he is coordinating an interview panel comprised of City staff members to participate in the required interview process. He explained that it was originally intended to have the. interviews during the week of June 25. 1990. but that due to conflicting schedules the interview date has been moved to the week of July 9. 1990. Mr. Bautista said that the reason why the "specific plan"was changed to a "corridor plan" was as a result of careful review of the proposal submi~ted by Urban Design Studios. It was noted that their proposal would cost between $67.000 to $125.000 without an Environmental Impact Report (EIR). He explained that the Office of Planning and Research would question the lack of an EIR for a specific plan of this scope. Staff determined that the proposed specific plan was an overkill and that the City was in actuality in need of a corridor improvement plan (which does not require a full EIR). He said that in his estimation the project will qualify for a Negative Declaration. Mr. Dennis A. Barlow. Agency Counsel. expressed his concern regarding the need to emphasize that staff is not talking about a "specific plan" with a different name. but rather something completely different. Mr. Bautista concurred with Mr. Barlow's statement and further explained that Urban Futures' proposal was not a specific plan. although it had the price tag of one. but in fact it was a corridor study. He said that staff is proposing to move forward with a corridor plan. . Mr. Temple said that when the item goes before the Commission staff will clarify that what staff is proposing is not a specifiC plan with a different name. Chairwoman Estrada expressed concerns regarding the cost of implementation and suggested that the Consultant be as~ed during the interview process to do the economic components at the beginning stages of the project to facilitate the immediate assessment of the total cost of the program. 4 June 21. 1990 5173R o o Mr. Bautista listed the four (4) phases of the corridor ,plan 'as follows: Phase 1: Inventory and Analysis of Project Area Phase 2: Market Evaluation Phase 3: Land Use Alternatives Phase 4: Draft Corridor Plan/Design Guidelines Mr. Bautista explained that Phase 2 is a critical part of the plan and will need to be done concurrently with Phase 1. A lengthy discussion ensued regarding the cost of implementation and the funding source. Mr. Temple said that the Agency will work out the funding plan. RECOMMENDATION There was no action. No recommendation. 7. Salary Adjustments for Redevelopment Agency Employees for Fiscal Year' 1990-1991. Mr. Temple said that staff is requesting approval of the Salary Schedule, to provide for a five percent salary adjustment for all position classifications other than management/confidential effective July 1, 1990. The costs of providing these adjustments for the current fiscal year is $21,000. He further explained that funds are available and may be authorized in accordance with the Agency's continuing budget resolution adopted on June 04, 1990. Mr. Temple stated he was working on a request by Chairwoman Estrada to research the need for a better compensation package, including but not limited to advancement, training and incentives for all present and/or future Agency employees. Committee Member Maudsley expressed his support in doing this study and said that it was very important and critical for the future success of the Agency. Chairwoman Estrada said that it was important to do a salary study and to make the necessary adjustments, not only for the purpose of maintaining the good Agency staff, but to attract future Agency staff. RECOMMENDATION The Committee recommended the item be forwarded to the Commission. 5 June 21, 1990 5173R - o o 8. Street Tree Master Plan-Phase I Report. Mr. Temple said that Mr. Manuel Moreno Jr., asked that a verbal report be presented to the Committee as follows: The Agency will be responsible for drafting the Agreement and overseeing the implementation of Phase I. Phase I will be completed by September, 1990 and the estimated cost will be $6,700.00. A meeting will be scheduled to meet with Mr. French to further review Phase II requirements. RECOMMENDATION There was no motion. No recommendation. 9. Meeting Schedule for July. A discussion ensued regarding the next meeting of July 5, 1990. It was suggested to leave it open. RECOMMENDATION There was no motion. No recommendation. ClOSED SESSIONS The Committee convened to closed session to consider personnel matters pursuant to Government Code Section 54957 at 5:30 p.m. The Committee reconvened from closed session at 5:40 p.m. Adjournment There being no further business, the meeting of June 21, 1990 was adjourned at 5:41 p.m. APPROVED BY: ~ Redevelopment Committee 6 June 21, 1990 5173R