Loading...
HomeMy WebLinkAboutR12-Economic Development Agency c c o ECONOMIC DEVELOPMENT AGENCY OF TIlE CITY OF SAN BERNARDINO I"'" '-' REOUEST FOR COMMISSION/COUNCIL ACTION From: TIMOTHY C. STEINHAUS Agency Administrator Subject: EDA ADMINISTRATIVE PROCEDURES Date: November 16,1994 .---------------------------------------------------------------------------------------------------------------------------------- Synon,i, of Prey iou, Commi"ion/CouncWCommittee Action(,): The Mayor and Common Council/Community Development Commission have taken previous actions regarding the formation of the Economic Development Agency. ---------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(,): (Community Deyelonment CommissIon) MOTION A: That the Community Development Commission receive and file the audit of the Multi-family Rental Rehabilitation Program dated September 13, 1994. MOTION B: That the Community Development Commission approve and adopt the attached revised Economic Development Agency Organizational Chart to reassign the reporting requirement of the Administrative Services Division from the Development Department to Agency Administration. MOTION C: That the Community Development Commission adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 5277 PERTAINING TO THE ESTABLISHMENT OF CERTAIN STAFFING POSITIONS FOR THE ECONOMIC DEVELOPMENT AGENCY AND TO INCLUDE THE DELETION AND THE ADDITION OF CERTAIN POSITIONS OF THE ECONOMIC DEVELOPMENT AGENCY. . STEINHAUS Agency Administrator ------------------------------------------------------------------------------------------------------------------_....--------------- Contact Person(s): Timothv C. Steinhaus Phone: 5081 Project Area(s): N/A Ward(s): N/A Supporting Data Attached: StaffReoort: Resolutions: omanizational chart FUNDING REQUIREMENTS: Amount: $0.000.000 Source: Budget Authority: -----------------------------.-...-.---------------------------....-..-..-------------.....-----------.......---------....-----------..------ C Commission/Council Notes: --------------------------------------------------------------------------------- TCS:SMM:pc:adminpro.cdc COMMISSION MEETING AGENDA Meeting Date: 11/21/1994 A2enda Item Number: '2 c c r- \..... o o Commi..ion/Council Notes: REQUEST FOR COMMISSION/COUNCIL ACTION Economic Development Agency Administrative Procedure. November 21, 1994 Page Two MOTION D: That the Community Development Commission adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 5280 PERTAINlNG TO THE ESTABLISHMENT OF COMPENSATION LEVELS AND SALARY RANGES FOR EMPLOYEES ENGAGED IN ACTIVITIES FOR THE ECONOMIC DEVELOPMENT AGENCY AND TO INCLUDE THE DELETION AND THE ADDITION OF CERTAIN POSITIONS IN THE ECONOMIC DEVELOPMENT AGENCY. MOTION E. That the Community Development Commission adopt a RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 5282 PERTAINlNG TO THE ESTABLISHMENT OF THE ECONOMIC DEVELOPMENT AGENCY MANAGEMENT AND CONFIDENTIAL EMPLOYEE COMPENSATION BENEFITS PLAN TO INCLUDE THE DELETION AND THE ADDITION OF CERTAIN POSITIONS OF THE ECONOMIC DEVELOPMENT AGENCY. TCS:SMM:pc:adminpro.cdc COMMISSION MEETiNG AGENDA Meeting Date: 11/21/1994 Agenda Item Number: ('2- c c c c .~ ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT -------------------------------------------------------------------------------------------------------------------------------- Economic Develooment Al!encv Procedures On September 13, 1994, the Agency commissioned an independent audit of the management controls and procedures regarding its multifamily rental rehabilitation program. The audit analyzed staff procedures and practices and made certain findings regarding the process used for selection and review of prospective program participants; the contents ofloan files; procedures used for making draw requests and disbursements; costs of improvements and management controls. The purpose of this agenda item is to respond to the specific findings with recommended changes to internal procedures and divisional reporting requirements which will provide a more efficient "check and balance" system within the Agency. Implementation of the proposed administrative changes should provide a mechanism for preventing instances such as the most recent events from occurring in the future. POLICIES AND PROCEDURES The audit report identifies the importance of formal written procedures to implement the rehabilitation program. As a response to this report, staff is currently preparing the necessary policy and procedure document, which will be presented to the Commission for review and approval in the near future. Many of the recommendations provided by the auditors are critical to the success of the program and will be included in the final presentation. However, I feel it is unfair to imply that all of the points addressed in the audit are deficiencies and which have not already been addressed by the Agency through preparation of the necessary program documents pending future Agency approval. It is important to note that many of the program elements are in place, and with the fine tuning that formal written policies and procedures will provide, the program will continue to meet its objectives by improving the quality of the housing stock in the City of San Bernardino. For instance, the audit implies that the program lacks procedures for marketing to residents. Over the last year, the Housing Division has aggressively pursued marketing efforts through increased presence and regular presentations at builder trade shows and quarterly meetings with realtor associations, developer associations and lenders. In addition, the program is advertised quarterly in the City newsletter which is distributed to City residents. To support these efforts, the Agency developed three quality brochures which target audiences for program participation. While these may not be formal procedures, these actions have been worthwhile and support the desire to aggressively market the program to potential participants. DRAW REOUESTS AND DISBURSEMENT PROCEDURES Procedures for the processing of invoices and draw requests have always been in place within the Agency. These procedures include review of all invoices for payment by the Administrative Services Division. For payment processing purposes, a "Payment Request" form is used (see attachment marked Attachment "A"). --------------------------------------------------------------------------------- TCS:SMM:pc:adminpro.cdc COMMISSION MEETING AGENDA Meeting Date: 11/2111994 Agenda Item Number: JL. c c c o o STAFF REPORT Economic Development Agency Procedure. November 21, 1994 Page Two In most instances, this form is completed by the Administrative Services Division and then submitted to project stafffor appropriate routing. A "typical" payment routing process as was previously in effect follows: 1. Invoice is received by Administrative Services. 2. Information is entered into computer to verifY: a) Budget Authorization b) Totals/Addition c) Inspection completed and signed offby Inspectors d) Valid contract/agreement/note payable/etc. e) Purchase Order, if necessary f) Contract limit not exceeded g) Proper back-up documentation h) No duplications 3. Request for Payment is printed. Information supplied on form identifies the vendor name and address; brief description of supplies or services; project area account number; budget line item number; department or division; amount of payment. 4. The form is then signed by the project staff person and submitted to the division manager for approval and signature. 5. Check printed. 6. Accounting use only information is completed on form. 7. Payment Request form and check are submitted together to the Development Department Executive Director for review and approval. The Executive Director signs the Request for Payment. 8. Checks are submitted to Agency Administrator for signature. Checks are accompanied by appropriate back-up documentation, including approved, signed payment request forms. 9. Checks are submitted to Mayor for signature. Checks are accompanied by appropriate back- up documentation, including approved, signed payment request forms. 10. Checks are returned to Administrative Services Division for disbursement. To facilitate a better control on the payment process, staffhas replaced the old form with attachment Exhibit "B". This provides for an additional step in the process identified in No. 2 above which will include the date --------------------------------------------------------------------------------- TCS:SMM:pc:adminpro.cdc COMMISSION MEETING AGENDA Meeting Date: 11/21/1994 (2. Agenda Item Number: _ c c c o o STAFF REPORT Economic Development Agency Procedures November 21,1994 Page Three of approval by Commission or Agency approval. All requests for payment will require the date of formal approval of the Commission by Resolution or motion for the contract, agreement, program and budget authority. If the payment falls within the granted authority of the Agency Administrator, the date will also be stated as to the purchase order or other authority for payment by the Agency Administrator. This will demonstrate to the Agency Administrator and the Mayor at the time the check is signed that the proper approval process by the Commission, or that the procedure and policies of the Agency as approved by the Commission, have been followed. Historically, the Agency has always required the signature of the Agency Administrator on all checks (approximately 150-200 checks per week), along with the signature of the Mayor. The Executive Director may only sign checks in the absence of the Agency Administrator, and historically, the Vice Chairperson of the Commission has only signed checks in the absence of the Mayor. Before the creation of the Economic Development Agency, the Executive Director of the Redevelopment Agency signed checks, and the Deputy Director signed only in his/her absence. The procedure for the Mayor and the Vice Chairperson of the Commission has been as mentioned above. Currently, the Mayor is the sole second signature on checks because no Vice Chair was designated. It is important to note that when the Administrative Services Division prepares the request for payment, verification takes place as to the accuracy of dollar amounts, tax identification information, signatures existing on all contracts, notes and agreements, that the project has received budget authorization, limit of contract/agreement amounts have not been exceeded, that the proper inspections have taken place, and if necessary, that purchase orders are in place. It is not the responsibility of the Administrative Services Division to obtain appropriate CounciVCommission action. This responsibility is that of the respective division/department, with the concurrence by the Executive Director to proceed with obtaining such Council/Commission action. However, as a new procedure, Administrative Services will print the date of the Action by the CounciVCommission or ensure that proper Agency purchasing procedures have been adhered to. PROPOSED ORGANIZATIONAL CHANGES Since the time the Mayor and Common Council and the Community Development Commission took action approving and adopting the organizational structure for the Economic Development Agency, staff has defined the role and function of the various departments and divisions. Because of this process and in light of the recent events, it is clear that a structural change in the organizational flow of the Agency finance and contract administration functions should be made. At the time of the Economic Development Agency formation, the contract administration/compliance responsibilities were separated from the community development, redevelopment, housing and business development functions. The purpose for the separation was to allow the Development Division the opportunity to concentrate mainly on new development and less on compliance and monitoring of developments that were out of the negotiation phase and had received Commission approval. The Administrative Services Division was placed under the control and jurisdiction of the Development Department. --------------------------------------------------------------------------------- TCS:SMM:pc:adminpro.cdc COMMISSION MEETING AGENDA Meeting Date: 11/21/1994 Agenda Item Number: 12- c -. '-' STAFF REPORT Economic Development Agency Procednres November 21, 1994 C Page Fonr c ,...... , '- Within this division, the functions of contract administration, compliance, accounting, financial responsibilities and graphics are assigned. It is important to mention that Administrative Services is responsible for monitoring financial and contractual events for the entire Agency and the current structure prohibits direct reporting to the Administrator. The Administrative Services Division provides these services to all departments within the Agency structure, i.e., Main Street, Convention & Visitor's Bureau, Office of Business Development, Development Department and Agency Administration. Initially, all of these departments may not have been an integral part of the Agency and it was not essential to place this division directly under the Administrator. However, with the expansion of the functions of the Economic Development Agency Administrator through integration of Main Street and the creation of the Office of Business Development, it is necessary and appropriate to reassign the Administrative Services Division to the Agency Administration. It is staff's opinion that this organizational change will more effectively and efficiently discharge all of the functions assigned to the Division, and also provide a more efficient "check and balance" for all finances and contract compliance within the entire Agency. As indicated above, staff believes the proposed organizational change is necessary and appropriate. An important aspect of this organizational change is that this Division would be supervised directly by the Agency Administrator. Consequently, it is proposed that the position of Administrative Services Division Manager be changed to Director which would more accurately reflect the divisional status of the department head. In addition, because of the reduction in supervision within the Development Department and to avoid any future confusion relative to which position is ultimately responsible as the Administrator of the organization, it is proposed that the current Executive Director position be changed to that of a Director and the pay be reduced by five percent (5%) accordingly. Staffrec s adoption of the form motion. TIMOTHY C. TEINHAUS, Agency Administrator Economic Development Agency --------------------------------------------------------------------------------- TCS:SMM:pc:adminpro.cdc COMMISSION MEETING AGENDA Meeting Date: 1l/2111994 Al!enda Item Nnmber: I Z/ c o 1 - ~ 2 RBSOLUTION NO. 3 4 5 6 7 A RBSOLUTION OP THB COMMUNITY DBVBLOPMBNT COMMISSION OP THB CITY OP SAN BBRNARDINO AMENDING RBSOLUTION NO. 5277 PERTAINING TO THB BSTABLISBMBNT OP CBRTAIN STAFPING POSITIONS POR THB BCONOMIC DBVBLOPMENT AGENCY AND TO INCLUDB THB DBLBTION AND THB ADDITION OP CERTAIN POSITIONS OP THB BCONOMIC DBVBLOPMENT AGENCY. WHBREAS, the City of San Bernardino (the "City") has 8 previously caused the restructurinq of the community Development Commission of the city of San Bernardino (the "commission") in 9 10 order that the commission may function more effectively and 11 efficiently in implementinq and carryinq out Community Development 12 proqrams beneficial to the city; and 13 WHEREAS, in connection with the restructurinq of the 14 commission, the commission previously adopted its Resolution <:: 15 No. 5277 pertaininq to establishinq certain positions to staff the 16 Bconomic Development Aqency and approvinq certain job descriptions in connection therewith; nnd 17 18 WHEREAS, the Commission deems it desirable at this time to 19 amend Resolution No. 5277, pertaininq to the establishment of certain positions to staff the Economic Development Aqency to 20 include deletions and additions of positions of the Economic 21 22 Developm~nt Aqency. 23 24 ON NOW, THERBPORB, THB COMMUNITY DBVBLOPMBNT COMMISSION, ACTING BEHALP OP THB RBDBVELOPMBNT AGENCY OP THE CITY OP 25 SAN BERNARDINO, DOBS HERBBY RESOLVE, 26 POLLOWS: DETERMINE AND ORDER AS c 27 Section 1. Exhibit "A" to Resolution No. 5277 shall be amended to read as follows: 28 /2- c o 1 (a) #1, chanqe section lb. fro. "Executive Director, c 2 Development Department" (3)" to "Director, Development Department"; 3 and 4 (b) #1, chanqe Section ld. as follows: 5 AdIIlinistrative Services Division" to "Director, 6 Services Division"; and from "Manaqer, AdIIlinistrative 7 8 Section 2. Exhibit "B" to Resolution No. 5277 shall be 9 amended to add the followinq job descriptions which are attached 10 hereto: c 11 (a) Director, Development Department 12 (b) Director, AdIIlinistrative Services Division 13 III 14 III 15 III 16 III 17 III 18 III 19 III 20 III 21 III 22 III 23 III 24 III 25 III 26 III 27 III 28 III c {L- 1 C 2 3 ! a c c c o A RBSOLUTION OP THB COMKUNITY DBVBLOPKBBT COMMISSION OP THB CITY OP SAN BBRNARDINO AMB1mING RESOLUTION NO. 5277 PERTAINING TO THB ESTABLISBMBNT OP CERTAIN STAFPING POSITIONS FOR THE ECONOMIC DBVBLOPMDIT AGBNCY TO INCLUDE THE DELETION AND THE ADDITION OP CERTAIN POSITIONS OP THE ECONOKIC DEVELOPMENT AGBNCY. section 3. This Resolution shall take effect upon the date 6 of its adoption. , I HERBBY CERTIPY that the foreqoinq Resolution was duly 8 adopted J:Iy the cOlllllunity Development co_ission of the City of 9 San Bernardino at a 10 hereof, held on the meetinq day of , 11 1994, J:Iy the followinq vote, to wit: 12 commission KAmhers: AID IfAXS. ABSTAIN ABSBNT 13 NEGRETB ].I CURLIN HBRNANDBZ 15 OBBRHELMAN DEVLIN 16 POPB-LUDLAK MILLER 17 IS 19 20 21 22 Secretary The foreqoinq resolution is hereJ:Iy approved this , 1994. day of Tom Minor, Chairman Community Development commission of the city of San Bernardino Approved as to fora 23 and leqal content: 24 By: e-C\~ 25 ~ SMM:pc:re&a277 26 27 28 1/ c c c c o 1 STATE OF CALIFORNIA 2 COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO ) ) ss ) 3 I, , secretary of the community 4 Development commission of the city of San Bernardino, DO HEREBY CERTIFY that the foreqoinq and attached copy of community 5 Development commission of the city of San Bernardino Resolution No. is a full, true and correct copy of that now on file in 6 this office. 7 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the community Development commission of the 8 City of San Bernardino this _ day of , 1994. 9 10 11 12 13 14 secretary of the community Development commission of the City of San Bernardino ]5 16 ]7 18 ]9 20 21 22 23 24 25 26 27 28 /7 c o BXBIBIT "A" c (AIlBIlDBD) STAPl"IRG POSITIORS POR TIIII BCOROIIIC DBVBLOPIIIDlT &aDCY 1. Bconoaic D8v.lqpa.D~ Aa.D~V M.Daa".D~ a. AgaDcy AdaiDis~ra~or b. Direc~r, DevelopaeD~ Departa8D~ c. Depu~y Direc~or, DevelopaeD~ Deparla8D~ d. Direc~r, AdaiDis~ra~ive Services Divisi08 e. lIaJlager, BousiDg DivisioD f. lIaJlager, Office of BusiDess Developa8D~ g. Bxecu~ive Direc~or, RaiD S~ree~ 2. Rconoaic DeveloDaeD~ Agencv - coD~id.D~ial a. Assis~aD~ ~o AgeDcy AdaiDis~ra~or b. Bxecu~ive Secre~ary ~o AgeDcy AdaiDis~ra~or c. S~aff Assb~aD~ d. AdaiDis~ra~ive Secre~ary e. R...... Resources BaDager f. AccoUD~iDg/COllec~ioDs Officer 3. Rconoaic DevelQam.D~ AGencv Mid-MaD.a".D~ e. SeDior PlaDDer Projec~ RaDager (4) Graphics aDd DesigB COordiDa~or COD~rac~s AdaiDis~ra~or SeDior Accoun~aD~ BousiDg DevelopaeD~ Specialis~ III (1) Rebabili~a~ioD CoordiDa~or Mobile Boae ReD~ Board coordiDa~or RaiD S~ree~ Projec~ COordiDa~or c a. b. c. d. f. g. h. i. 4. EcoDomic Develo~.D~ AGencv Ganeral UDi~ a. SeDior Rehabili~a~ioD Specialis~ b. RousiDg DevelopaeD~ Specialis~ II (2) c. DevelopaeD~ Specialis~ (4) d. Boaeless Services ADalys~ e. LoaD Officer I f. COD~rac~ Specialis~ (2) g. LoaD Officer II h. Graphics aDd DesigB Assi.~aD~ i. ACCOUD~iDg TechniciaD j . SeDior Accoun~ Clerk k. Secreury (2) 1. TJpis~ Clerk (4) a. TJpis~ Clerk II (2) D. AdaiDi.~ra~ive/Records BaDage.eD~ Clerk o. special BveD~S COordiDa~or p. Rebabili~a~ioD IDspec~or c SMM:pc.resS277 11/" )2--- c BUlBI!!! "B" c JOB DBSCRIP'rIOIfS c c ~ V , ) c c c c :) ECONOMIC DEVELOPMENT AGENCY DIRECTOR. DEVELOPMENT DEPARTMENT JOB DESCRIPTION: Under direction of the Economic Development Agency Administrator, to manage, supervise and coordinate the functions and activities of the Development Department, of the Economic Development Agency; to implement a variety of community and economic development and housing programs; to assure governmental and private sector financing for Agency and City departments; and to provide highly complex staff assistance to the office of the Mayor, Common Council and to the Agency Administrator. SUPERVISION RECEIVED AND EXERCISED: Receives general direction from the Agency Administrator. Exercises direct and indirect supervision over the Department's professional and clerical staff. SPECIAL OUALIFICATIONS: This position differs from other Agency positions in requiring a high degree of knowledge of redevelopment and community development practices, a strong ability to interface and negotiate with the business and development community and a willingness to be innovative in the creation of development and redevelopment programs. This position further requires the ability to exercise independent judgment and authority. EXAMPLES OF DUTIES: Duties may include, but are not limited to, the following: a) Plan, manage and coordinate goals and objectives of the Department consistent with the goals and policies of the Agency; design and implement Department policies and procedures necessary to provide Department services and further Department goals; prepare a statement of Department objectives and time frames for the accomplishment thereof. b) Manage and supervise specific community development and redevelopment activities and projects; supervise Development Department staffin developing and implementing a variety of community development and redevelopment programs. 17 c c c c o c) Direct and review project activities including funding, property acquisition and disposition, relocation and project improvements, to ensure compliance with Department policies and goals; oversee the ana1ysis of development or redevelopment proposals and cost projections; secure and administer project funding. d) Create a system of prioritizing projects and proposed projects to effectively allocate the Department's assets in a manner consistent with Agency and City goals. e) Supervise the preparation of forecasts of future Department financial needs and goals, including an analysis of the sources of Department revenue; monitor and approve expenditures; develop plans for staffing, equipment, materials and supplies. t) Review and oversee Department activities to ensure compliance with City and Agency goals, policies and procedures as well as local, State and Federal regulations; supervise the preparation and filing of necessary reports and otherwise ensure Department compliance with applicable law. g) Manage, supervise and participate in the preparation of appropriate reports and studies related to Department activities; analyze reports and prepare recommendations for implementing necessary actions on programs in response thereto. h) Supervise the providing of information and technical assistance to the Mayor, Common Council, City commissioners, committees, Agency Administrator and senior City staff in matters related to the Department's activities and programs. i) Coordinate the relocation of property owners and tenants displaced by Department development or redevelopment activities. j) Meet with members of outside agencies, the public and the business and development and redevelopment goals, policies and procedures. k) Select, train and motivate Department staff; provide guidelines and procedures for the selection and training of personnel. I) Develop bids and specifications for development and redevelopment activities; administrate contracts and progress payments. m) Perform related duties as necessary or requested. (z c o c QUALIFICATIONS: Knowled2e of: Modem principals and practices of community development and redevelopment. Legislation related to community development and redevelopment. Principals of personnel administration, supervision and training. Principals and practices of budget preparation and administration. Ability to: Supervise, train and evaluate professional and clerical staff. Interpret applicable Jaws, rules and regulations. Prepare and analyze reports, statements and correspondence. Develop and administer a Department budget. C Communicate clearly and concisely, both ora1ly and in writing. Establish and maintain effective working relationships with those contacted in the course of work. MINIMUM EXPERIENCE AND TRAINING REOUIREMENTS: The minimum combination of experience and training for this position is as follows: Education: A Bachelor's Degree or equivalent from an accredited college or university with major course work in economics, urban planning, public administration or a closely related field. Experience: Ten years experience in community development or redevelopment with substantial management responsibilities including extensive involvement in negotiation of contracts, and supervision of personnel. Eight years of experience would be acceptable if the applicant possesses a masters degree in a field specified above. c ( Z-- c c c c ~ ECONOMIC DEVELOPMENT AGENCY DIRECTOR. ADMINISTRATIVE SERVICES DMSION JOB DESCRIPTION: Under direction of the Agency Administrator manages, supervises and coordinates the functions and activities of the Administrative Services Division of the Economic Development Agency, and provides staff assistance to the Agency Administrator. SUPERVISION RECEIVED AND EXERCISED: Receives general direction from the Agency Administrator. Exercises direct supervision of the Administrative Services Division's professional and clerical staff. SPECIAL OUALIFICATlONS: This position requires a thorough knowledge of California redevelopment finance and redevelopment agency accounting practices in addition to a background in contract compliance for various types of redevelopment agency agreements, CDBG, UDAG and EDA programs, investment portfolio management and bond issue compliance. The position requires the technical background and personnel skills necessary to supervise specialists in various areas, including contract compliance, accowrting, property tax analysis and graphics and design, and an ability to effectuate the policies of the Agency in a manner which addresses the concerns of the public. EXAMPLES OF DUTIES: Duties may include, but are not limited to, the following: a) Plan, manage and coordinate the goals and objectives of the Administrative Services Division consistent with the goals of the Agency; design and implement Division policies and procedures necessary to provide Division services and further Division goals; prepare a statement of Division objectives and time frames for the accomplishment thereof. b) Manage and supervise staff in the monitoring of all municipal bond financing incurred in furtherance of Agency objectives, including tax allocation bonds, single and multifamily mortgage revenue bonds, certificates of participation, taxable bonds and borrowings from conventional lenders. c) Manage, supervise and direct the preparation of appropriate reports to the State Controller, the Statement of Indebtedness to the County and the annual audit and other studies or reports related to housing, economic development and redevelopment issues I '{/ c c c c o and Division activities; ana1yze reports and prepare recommendations for implementing necessary actions or programs in response thereto. d) Supervise the providing of information and technical assistance to the Mayor, Common Council, Agency Administrator, Executive Director and Senior City staff in matters relating to the investment activities, financial condition, budget considerations and the financial ability to implement Agency programs. e) Supervise and direct the preparation of tax increment revenue cash flow analyses for each redevelopment project area, identifY irregularities in tax increment receipts and assessed value figures and monitor development project completion to obtain valid projections of tax increment growth. t) Provide liaison and coordination with State and Federal agencies involved in contract compliance for any grant or loan programs. g) Coordinate financial audits with outside auditors. h) Supervise the expenditure and investment of funding obtained by the Agency in manners consistent with applicable rules and regulations. i) Supervise and administer all aspects of the Department's word processing computer system, including hardware and software for word processing, accounting, and data processing. j) Responsible for development and maintenance of the file system. k) Supervise and administer all accounting and compliance matters dealing with the 20% Low and Moderate-Income Housing Fund, Community Development Block Grant Program, Main Street, Inc., Economic Development Administration Programs or other federal funds, including, the determination of valid expenditures and projects, time limits for expenditures, investment of funds, and assure compliance with all affordability covenants and regulatory agreements. I) Supervise the preparation of the Agency budget and budget planning activities, including the 'providing of information and technical assistance to the Agency Administrator and the Agency's other Divisions; periodically review and monitor the Agency budget and make appropriate recommendations. m) Supervise an Accounting Section and all daily general ledger accounting functions, including, accounts payable, accounts receivable and payroll. n) Supervise the Contracts Department o )Manage and supervise a Graphics and Design Section that is responsible for the design 17 c c c c :J and preparation of Agency marketing and promotional materials, audio-visual presentations of Agency economic development and housing matters, and engineering and design of certain Agency sponsored projects. p) Select, train and motivate Division staff; provide recommendations for guidelines and procedures for the selection and training of personnel. q) Perform related work as required. OUALIFICATIONS: Knowledge of: Current principles and practices of redevelopment agency accounting, investment practices and public agency financial administration. Laws and regulations related to the administration of the 20"/0 Low and Moderate-Income Housing Fund. Budget practices and budget planning and implementation. Principles of personnel administration, supervision and training. Ability to: Supervise, train and evaluate professional and clerical staff. Interpret applicable laws, rules and regulations. Prepare and analyze financial reports, investment activity statements, County Auditor-Controller tax increment disbursement statements, and related correspondence. Communicate clearly and concisely, both verbally and in writing. Establish and maintain effective working relationships with those contacted in the course of work. Mll\'lMUM EXPERIENCE AND TRAINING REOUIREMENTS: The minimum combination of experience and training for this position is as follows: Education: A Bachelor's degree or equivalent from an accredited college or university with major course work in economics, municipal finance, accounting, public administration or a i'l c c c c o closely related field. Experience: Six (6) years experience, including substantial managemeot responsibilities in local government accounting, contract compliance and property tax analysis or equivalent private sector experience. Of said six (6) years total experience, at least two (2) years experience must be demonstrated in direct supervision of subordinate persoMeI in some financial, contract compliance or accounting situation. /"1 I C 2 , 3; ~I I _I ~. 6 , c c /""', ~ RESOLUTION NO. A RESOLUTION 01' THB COJIKtlNITY DEVELOPMBII'1' COMMISSION 01' THB CITY 01' SAN BBRNARDINO AMBNDING RBSOLUTION NO. 5280 PBRTAINING TO THB BSTABLISBKENT 01' COMPENSATION LBVBLS AND SALARY RANGBS FOR EXPLOYBBS ENGAGBD IN ACTIVITIBS FOR THB BCONOMIC DBVBLOPMENT AGENCY AND TO INCLUDB THB DBLBTION AND THB ADDITION 01' CBRTAIN POSITIONS IN THB BCONOMIC DBVBLOPMENT AGENCY. WHBREAS, the City of San Bernardino (the "City") has previously caused the restructurinq of its community Development 8 Department and community Development Commission of the City of 9 San Bernardino (the "commission") in order to promote the qoals 10 and activities of the community and economic development and II redevelopment activities within the City; and 12 13 WHBREAS, in connection with the restructurinq of the 14 commission, the commission previously adopted its Resolution 15 No. 5280 pertaininq to establishinq compensation levels and salary 16 ranqes for Bconomic Development Aqency employees; and 17. 18 WHEREAS, the Commission deems it desirable at this time 19 to amend Resolution No. 5280 to include the deletion and the 20 addition of certain positions of the Bconomic Development Aqency. 21 22 NOW, THERBI'ORB, THB COMMUNITY DEVELOPMENT COMMISSION, 23 ACTING ON BEHALF OF THE RBDBVBLOPMENT AGENCY OF THE CITY 01' 24 SAN BERNARDINO, 25 FOLLOWS: 26 C 27 28 DOES HERBBY RBSOLVE, DETERMINE AND ORDER AS I ? c 0 1 section 1. Bxhibit "A" to Resolution No. 5280 shall be C 2 amended to amend salary ranges as follows: 3 ,I steps Position A B C D E a 6 K Director, Development Department 6400 6721 7057 7410 7780 I III 8 III 9 III 10 III 11 III 12 III 13 III 1,1 III C 15 III 16 III 17 III 18 III 19 III 20 III 21 III 22 III 23 III 2-1 III 25 III 26 III C 27 III III 28 17 1 C 2 3 -4 a 6 , 8 9 10 11 12 c 18 19 20 21 22 23 24 25 26 C 27 28 o o A RESOLUTION OP THE COMKUNITY DEVELOPKBNT COMKISSION OP THE CITY OP SAN BERNARDINO AMENDING RESOLUTION NO. 5280 PERTAINING TO THB BSTABLISBKENT OP COMPENSATION LBVBLS AND SALDY RANGBS POR EMPLOYBBS ENGAGED IN ACTIVITIBS POR THB ECONOMIC DEVBLOPMENT AGENCY TO INCLUDE THB DELETION AND THE ADDITION OP CBRTAIN POSITIONS OP THE ECONOMIC DBVBLOPMENT AGENCY. section 3. This Resolution shall take effect upon the date of its adoption. I HEREBY CERTIPY that the foregoing Resolution was duly adopted by the community Development co.-ission of the City of San Bernardino at a meeting hereof, held on tbe day of , 1994, by the following vote, to wit: 13 Commission Members: 14 KBGRBTE CURLIN 15 HERNANDEZ OBERHBLMAN DEVLIN 16 POPE-LUDLAM 17 KILLER BAn ABSTAIN ABSENT AID Secretary The foregoing resolution is hereby approved this of , 1994. day Tom Minor, Cbairman Community Development Commission of the City of San Bernardino Approved as to form and legal content: By: ~~~ Agency nsel SMM:pc:resl280 ,7 c c c c o 11 STATB OP CALIPORHIA 21 COUNTY OP SAN BERNARDIIIO I CITY OP SAN BBRHARDIIIO 3! i 4i I _I ;)1 ) ) ss ) 6 I, , Secretary of the CODlllluni ty Development CODllllission of the City of San Bernardino, DO HERBBY CERTIPY that the foregoing and attached copy of cODllllunity Development Commission of the City of San Bernardino Resolution 110. is a full, true and correct copy of that now on file in this office. I III WITNESS WBERBOP, I have hereunto set my hand and affixed the official seal of the community Develop.ent commission of the city of San Bernardino this ____ day of , 1994. 8 9 10 11 12 13 14 15 16 secretary of the CoIIIIIIunity Development Commission of the City of San Bernardino Ii 18 19 20 21 22 23 2-1 25 26 27 28 , "7 o o c I 2 3 .. 5 6 7 RESOLUTION NO. A RESOLUTION OP THE COHM1JJfl:TY DEVELOPMENT COMMISSION OP THE CITY OP SAN BERNARDINO AMENDING RESOLUTION NO. 5282 PERTAINING TO THB BSTABLISHMENT OP THB ECONOMIC DBVBLOPMBNT AGENCY MANAGEMENT AND CONPIDBNTIAL EMPLOYEE COMPENSATION BBNBI'ITS PLAN TO INCLUDB THB DELBTION AND THB ADDITION OP CBRTAIN POSITIONS OP THE ECONOMIC DBVBLOPJUDIT AGENCY. WHERBAB, the city of San Bernardino (the "City") has previously caused the restructurinq of its community Development 8 9 Department and community Development commission of the city of San Bernardino (the "Commission") in order to promote the qoals and 10 11 activities of the community and economic development and redevelopment activities within the city; and 12 13 c 14 WHEREAS, in connection with the restructurinq of the Commission, the Commission previously adopted its Resolution 15 16 No. 5282 pertaininq to establishinq the Economic Development Aqency Manaqement and Confidential Employee Compensation and Benefits 17 Plan; and 18 19 20 21 to amend 22 addition 23 III 24 III 25 III 26 III C 27 III III 28 WHERBAB, the Commission deems it desirable at this time Resolution No. 5282 to include the deletion and the of certain positions of the Econo.ic Development Aqency. IY~ c c c c o I NOW, THERBFORB, THB COMMUNITY DEVELOPMENT COMMISSION, ACTING ON 2 BBJlALI' OF THB RBDEVBLOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, 3 DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: .I ;) section 1. paqe 1 of Attacbment "A" to Resolution No. 5282 6 shall be amended as follows: Chanqe the list of Manaqement , employees from "Executive Director, Development Department" to S "Director, Development Department"; and chanqe from "Administrative to "Director, Adaninistrativae services 9 Services Division Manaqer" 10 Division". 11 1/1 12 III 13 III It 1/1 15 III 16 III Ii III IS III 19 III 20 III 21 III 22 /II 23 III 2.1 /II 25 III 26 /II 27 III 2S III 11 13 commission Members: C It NEGRETE 15 CURLIN HBRRANDEZ 16 OBBRHELHAR DBVLIN 17 POPE-LUDLAM MILLER 18 r- \w 19 20 21 22 23 24 25 26 C 27 28 c o I A RESOLUTION OF THE COHMtJRITY DBVBLOPHDT COMKISSIOR OF THE CITY OF 2 SAR BBRRARDINO AlIBRDING RESOLUTION NO. 5282 PERTAINING TO THE ESTABLISHHBRT OF THE ECONOMIC DEVELOPMENT AGBRCY HARAGBMBRT AND CONFIDENTIAL EMPLOYEE COHPBR8ATION AND BENEFITS PLAN TO INCLUDE THE 3 DELETION AND THE ADDITION OF CERTAIN POSITIONS OF THB BCONOMIC -I DEVBLOPMENT AGENCY. -I ~ section 2. This Resolution shall take effect upon the date 6 of its adoption. I 8 I HEREBY CERTIFY that the foregoing Resolution was duly 9 adopted by the cOlllllunity Development Commission of the city of 10 San Bernardino at a II thereof, held on the meeting day of , 12 1994, by the following vote, to wit: AID lIAD. ABSTAIN ABSENT secretary The foregoing resolution is hereby approved this , 1994. day of Tom Minor, Chairman community Development commission of the city of San Bernardino Approved as to form and legal content: By: V;~ Agency sel SMM:pc:resli282 JL c c c o I I STATE OF CALIFORNIA ) I COUNTY OF SAN BBRRARDINO ) ss 21CITY OF SAN BERNARDINO ) 31 I I , ~IDevelopment Commission of the lCERTIFY that the foreqoinq .IDevelopment commission of the a'NO. is a full, true and this offioe. 6 o , seoretary of the COllllluni ty city of San Bernardino, DO HEREBY and attaohed oopy of community City of San Bernardino Resolution oorreot oopy of that now on file in IN WITNESS WHEREOF, I have hereunto set my hand and affixed i the offioial seal of the community Development Commission of the 8 city of San Bernardino this day of , 1994. 9 10 11 12 13 14 15 16 17\ I Isl I 19 20 21 22 23 2( 25 26 27 28 Seoretary of the community Development commission of the city of San Bernardino ,. -) o o 1 C 2 c c AMENDBD ATTACHIIBIlT "A" 3 Manaq..ent Employees Aqency Administrator 4 Director, Develop.ent Departaent Deputy Director, Develop.ent Department 5 Director, Administrative services Division Housinq Division Manaqer 6 Office of Business Develop.ent Manaqer Executive Director, Main street 7 8 Confidential Employees Assistant to Aqency Administrator 9 Executive secretary to Aqency Administrator staff Assistant 10 Administrative secretary Human Resources Manaqer 11 Accountinq/Collections Officer 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 /7 r-- '-' c c - o - - o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM SEPTEMBER 13, 1994 -.-, f / c c c - c o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM SEPTEMBER 13, 1994 Table of Contents Pal!e Independent Accountants' Report........ .......... ....... ..... ................ ................................... 1 Executive Summary. ...... ...... ..... .................................................................................... 3 Summary of Findings and Instances of Noncompliance ................................................. 4 Detailed Description of Findings and Instances of Noncompliance ................................ 6 Recommendations...................................................................................................... 11 Exhibits: I List of Participant Files Examined ................................................................... 12 II Formal Written Procedures for Granting Program Loans................................. 13 III Contents of Program Participant Loan Files.................................................... 16 IV Contractor Bid List ......................................................................................... 24 V Miscellaneous Items........................................................................................ 25 1,7 L. - o o . fillIIT ~= ANDERSON, MALODY & SCOTI CERTIFIED PUBLIC ACCOUNTANTS ;'ONALD L. ROGERS, C_P.A OENNIS H. MALODY II, C.P.A JACK C. SCOTT, C.P.A JAY H. ZEACHER CPA WilliAM E REINEKING' C,P,A ROBERT S. MEMORY' C.P,A THOMAS V. HESS: C,P.A PHilLIP H. WALLER, C,P,A To the Community Development Commission City of San Bernardino Economic Development Agency San Bernardino, California TERRY p, SHEA. CoP_A NANCY Q'RAFFERTY, C.P.A CYNTHIA L. SAKS, C_PA BRIAN W. TOMPKINS, C,P,A. UNDA M. HERNANDEZ C,P,A BRENDA L. COLE: C.P,A LEENA SHANBHAG, C.P_A. LINDA L. WOODRUFF, C,P.A LORI ANN KUNTZ, C.P,A. KATHLEEN l. OEVALK CP,A RICHARO A. LOCKWOOD: CPA INDEPENDENT ACCOUNTANfS' REpORT At your request, we have applied the procedures enumerated below with respect to the management controls and procedures with regard to the City of San Bernardino Economic Development Agency's (the Agency) Multifamily Rental Rehabilitation Program (the Program) as of September 13, 1994. It is understood that this report is solely for your information and is not to be referred to for any purpose or distributed to anyone who is not a member of the Community Development Commission or management of the Agency. Our procedures are explained below. We have analyzed all relevant staff procedures, both written and informal, regarding: c a. The selection and review of prospective participants in the Program. b. The contents of Program participant loan files. c. Verification of the draw requests and disbursement procedures. d. Verification as to costs of improvements funded with Agency loans. e. The management controls in effect for the Housing Department for insuring compliance with Agency adopted goals and objectives and requirements of the Community Redevelopment Law. We have also analyzed all available information contained in the Housing Department files for Agency loans granted to the following Program participants from all funding sources. ,.- "- a. Hector and Marisela Labastida b. John G. Brown c. Clyde Thompson, Sr. and Jr. d. Jesse and Eunice Thompson e. Munawar Ahmed f. Daniel and Phyllis Hale g. Alexandro Espinoza h. Hector and Maria Vizcarra 1. Richard and Geraldine Kater J. Toby Bryant k. Joseph and Paula Martin 1. William H. Cooper MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTION OF THE DIVISION FOR CPA FIRMS CAL1FOrlNIA SOCIETY OF 1 VANIR TOWER. 290 NORTH "0" STREET' SUITE 300 ,,-, SAN BERNARDINO. CA 92401 r I (anal RRa.nR7f . (anal R?4.1':7.'U; . ~A){ IQI1.QJ RRQ.',.1fi1 . ,... '- c c - o o Page 2 m. Dean and Joyce Clark n. Lee Turner Because the procedures noted above do not constitute an audit made in accordance with generally accepted auditing standards, we do not express an opinion on any of the items referred to above. In connection with the procedures referred to above, we noted certain findings and instances of noncompliance which are identified in the accompanying Summary of Findings and Instances of Noncompliance and Detailed Description of Findings and Instances of Noncompliance. This report relates only to the items specified above and does not extend to any financial statements of the City of San Bernardino Economic Development Agency taken as a whole. September 29, 1994 f~, 1/~/;f1~ 'J'~ 2 i'l c o c CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM EXECUTIVE SUMMARY SEPTEMBER 13, 1994 During our analysis of the City of San Bernardino Economic Development Agency's (the Agency) Multifamily Rental Rehabilitation Program (the Program), we noted the folIowing: * The same property owners received more than one loan on numerous occasions. * Construction contractors were not selected using competitive bidding procedures. * 55% of the total dollars loaned were for projects that used Barrow Construction as the construction contractor. * Invoices submitted by Barrow Construction for rehabilitation work performed were inadequate. * All loans were "maxed out"; that is, no projects were completed for an amount less than the contractors' estimates. c * Some projects even needed additional funding, oftentimes from different funding sources. * The Agency had no established authority for approving loans. * The Agency's Independent Contract ConsultantlInspector processed invoices for payment before the construction work being billed was completed. * The Agency loaned money to the owners of Barrow Construction to rehabilitate a rental unit, and then agreed to purchase the property back from them. * HUD looked at two Program files during its monitoring visit dated May 12, 1994, and noted no problems. We noted that one file (participant File Number 8) looked at did not include a loan application, a copy of the promissory note or evidence of competitive bidding procedures. The other (Participant File Number 20) included the required documents. HUD's monitoring visit should have detected problems based on Participant File Number 8. * Mr. Oliver Moore, Housing Rehabilitation Coordinator, seems to have had an apparent conflict of interest with Barrow Construction. C * The Agency does not have adequate formal written procedures for the Program. 3 ,7 c c c o o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM SUMMARY OF FINDINGS AND INSTANCES OF NONCOMPLIANCE SEPTEMBER 13, 1994 The following is a summary of the findings and instances of noncompliance that were noted during our analysis of the management controls and procedures of the City of San Bernardino Economic Development Agency's (the Agency) Multifamily Rental Rehabilitation Program (the Program). Selection and Review of Prospective Participants in the Program 1. The Agency does not have formal written procedures for making the residents of the community aware of the Program loans. As a result, residents of the community who are aware of the Program have an unfair advantage over those who are not. 2. The Agency does not have formal written procedures for determining the source( s) of funding for the Program loans. As a result, monitoring the loans is made more difficult because of the numerous funding sources utilized for the loans. 3. The Agency does not have formal written procedures limiting the number of loans granted to Program participants. As a result, numerous loans have been granted to the same Program participants. 4. The Agency does not have formal written procedures limiting the number of contracts to be granted to construction contractors. As a result, over one half of the total dollar amount of loans made were for projects where the same construction contractor was used. Contents of Program Participant Loan Files 5. The Agency does not have formal written procedures indicating the documents to be included in the Program loan files. As a result, loan files do not always contain the necessary documents. Draw Requests and Disbursements Procedures 6. The Agency does not have formal written procedures for preparing and reviewing draw requests. As a result, the Agency is not fully aware of the status of funds available at a given time. 4 r'j c o c CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM SUMMARY OF FINDINGS AND INSTANCES OF NONCOMPLIANCE SEPTEMBER 13, 1994 Draw Reauests and Disbursements Procedures (Continued) 7. The Agency does not have formal written procedures for disbursing funds to the construction contractors. As a result, the Agency is not fully aware of the statu~ of the construction for the projects at a given time. Costs oflmorovements 8. The Agency does not have formal written procedures for verifYing costs of improvements funded with Program loans. As a result, the Agency could have been paying the construction contractors for work that was either not completed or completed in an unsatisfactory manner. C Management Controls 9. The Agency is not following its formal written procedures for selecting construction contractors used for rehabilitation. As a result, the Agency is not in compliance with Federal regulations for some of the Program loans made with Federal funds. Furthermore, the Agency's formal written procedures are inadequate. c 5 ,) r""' "'-" c c c o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MUL TIF AMIL y RENTAL REHABILITATION PROGRAM DETAILED LISTING OF FINDINGS AND INSTANCEs OF NONCOMPLIANCE SEPTEMBER 13, 1994 The following is a detailed listing of the findings and instances of noncompliance that were noted during our analysis of the management controls and procedures of the City of San Bernardino Economic Development Agency's (the Agency) Multifamily Rental Rehabilitation Program (the Program). Selection and Review of Prospective Particioants in the Program 1. The Agency does not have formal written procedures for making the residents of the community aware of the Program loans. Based on our discussions with Agency personnel, residents of the community are made aware of the Program if they have been told that the Program exists by another resident, or if they happen to learn about it by talking with Agency personnel. This provides those who know of the Program's existence an unfair advantage over those who are unaware of it. 2. The Agency does not have formal written procedures for determining the source( s) of funding for the Program loans. Many of the Program participant loans were made from more than one funding source (i.e., CDBG and HOME Program, Low- and Moderate-income Housing Fund and CDBG, etcetera). As a result, more Agency personnel time must be devoted to ensure compliance with the different funding source requirements. 3. The Agency does not have formal written procedures limiting the number of loans granted to Program participants. Many of the loans were made to the same Program participants. This obviously reduces the amount of residents in the community who can participate in the Program. 4. The Agency does not have formal written procedures limiting the number of contracts to be granted to construction contractors. That is, it appears that construction contractors are not being selected on an equitable basis. This results in the appearance that the Agency favors one contractor on the approved contractor list over all of the others. (See Contractor Bid List at EXHIBIT IV.) Contents ofPro~ram Participant Loan Files 5. The Agency does not have formal written procedures indicating the documents to be included in the Program loan files. This resulted in numerous Program participant loan 6 1'7 ,- ........ c c C 0 CITY OF SAN BERNARDINO . ECONOMIC DEVELOPMENT AGENCY MULm AMIL Y RENTAL REHABILITATION PROGRAM DETAILED LISTING OF FINDINGS AND INSTANCES OF NONCOMPLIANCE SEPlEMBER 13, 1994 Contents of Program Participant Loan Files (Continued) files not having the necessary documents included in them. The following indicates the Participant File numbers and the documents not included in the respective loan flies. a. Participant File Number 8 did not include a Property Improvement Program Loan Application form. b. Participant File Number 8 did not include a copy of the Promissory Note. c. Participant Files Number 2 and 22 were required to have a Request for Fund Reservation form signed by Mr. Kenneth Henderson and Mr. David Edgar, but did not. d. Participant File Number 3 did not include an Information Disclosure Authorization form. e. Participant Files Number 4, 17 and 29 did not include a Mortgage Verification form. f. Participant Files Number 11 and 19 did not include copies of the participants' tax returns. However, copies of the participants' tax returns were included in Participant Files Number 10 and 18, respectively. g. Participant Files Number 3 and 9 did not include an Affordable Housing Covenants and Restrictions form. h. Participant Files Number 1 through 22, 24 through 26, 30 and 31 did not include either evidence of a competitive bid, an Agreement to Waive Competitive Bid Selection Process for Rehabilitation Contractor form, or a memo requesting a negotiated bid. I. Participant File Number 28 did not include a Checklist of Application Statutes and Regulations form. J. Participant File Number 27 did not include a cost estimate by the Agency. k. None of the Participant files included pictures of the rehabilitated property. 7 /7 c c c c o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM DETAILED LISTING OF FINDINGS AND INSTANcEs OF NONCOMPLIANCE SEPTEMBER 13, 1994 Contents of Program Participant Loan Files (Continued) 1. Participant Files Number 1 through 3, 5 through 26, 28, 30 and 31 (28 files) did not include copies of any construction contractor invoices supporting the payments made. Participant Files Number 27 and 29 included copies of the construction contractor invoices supporting the payments made, but the total amount of the invoices was less than the amount of the contract as set forth in the Agreement for Rehabilitation form or the final approved Change Order form. m. Participant Files Number 1 through 3, 5 through 21, 24 through 26, 28, 30 and 31 (26 files) did not include copies of any checks written to the construction contractors. Participant Files Number 22, 23, 27 and 29 included copies of checks written to the construction contractors, but the total amount of the checks was less than the amount of the contract as set forth in the Agreement for Rehabilitation form or the final approved Change Order form. Note: See List of Participant Files Examined at EXHIBIT I and Contents of Program Participant Loan Files at EXHIBIT III. Draw Reouests and Disbursements Procedures 6. The Agency does not have formal written procedures for preparing and reviewing draw requests (HOME Program). The Program has two accounts established with the Department of Housing and Urban Development from which funds may be drawn. The Agency draws down funds from the "Administration" account, and United States Escrow draws down funds from the "Program" account. As a result of not having formal written procedures, the Agency was not sure what types of authorizations were required for drawing down funds. This also resulted in the Agency's being uncertain as to the exact amount that had been drawn down for each of the escrow accounts maintained by United States Escrow for each program loan. 7. The Agency does not have formal written procedures for disbursing funds to the construction contractors (all funding sources for the Program). The informal procedure required the contractor to submit the invoice to the Agency after a portion of the work was completed. The Agency's Independent Contract Consultant/Inspector (the Inspector) along with the contractor and the Program 8 ,'-7 c c c o o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM DETAILED LISTING OF FINDINGS AND INSTANCES OF NONCOMPLIANCE SEPTEMBER 13, 1994 Draw Requests and Disbursements Procedures (Continued) participant would then inspect the work performed (approval was indicated with each of the three parties signing the invoice). The Inspector would submit the invoice with the appropriate request for payment form to Accounting. The processed check and invoice payment stub would be returned to the Inspector and the contractor would come to the Agency office and pick up the check. This procedure resulted in the Inspector's receiving and processing some invoices prior to the construction being performed; that is, each of the three parties signed the invoices before the work being billed was completed. Costs ofImprovements 8. The Agency does not have formal written procedures for verifying costs of improvements funded with Program loans. As mentioned above, very few loan files included copies of invoices from the construction contractors and copies of checks to the construction contractors. The Agency was required to rely on United States Escrow statements for HOME Program funded loans to determine actual disbursements made from each escrow account for each Program loan. For loans made from other funding sources, check copies and invoices were retained in Accounting. Finally, though there are photographs of the "pre-rehabilitated" properties in the appraisal reports, there are no photographs of the completed properties included in the loan files. Management Controls 9. The Agency is not following its formal written procedures for selecting construction contractors used for rehabilitation. The Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (24 CFR Section 85.36), also known as the "Common Rule," require construction contractors to be selected using formal competitive bidding procedures when the Agency selects the contractors for loans funded with Federal monies. This would not be required when the loans were made to Program participants who were also the construction contractors. In the cases where the participants were not the contractors, the loan files rarely included evidence of competitive bidding procedures (1 in 26 files examined), an Agreement to Waive Competitive Bid Selection Process for Rehabilitation Contractor 9 /1"7 c c c c o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MUL TIF AMIL y RENTAL REHABILITATION PROGRAM DETAILED LISTING OF FINDINGS AND INSTANCES OF NONCOMPLIANCE SEPTEMBER 13, 1994 Management Controls (Continued) form (2 in 26 files examined) or a memo requesting a negotiated bid (1 in 26 files examined). This does not provide sufficient evidence that the Program participant selected the contractor, nor that the Agency conducted competitive bids. Two Program participants interviewed indicated that the Agency selected the construction contractor, and neither of these files included evidence of competitive bids. 24 CFR Section 85.36(b)(3) states, in part, "No employees of [the Agency] shall participate in selection, or in the reward or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved." It is not known whether Mr. Oliver Moore, Housing Rehabilitation Coordinator, has a conflict of interest with Barrow Construction, but it does appear that Mr. Moore was involved in selecting Barrow Construction/Clyde Thompson, Sr. and Jr., in a manner that seemed to favor Barrow Construction/Clyde Thompson, Sr. and Jr., over other construction contractors. 10 1/ r- '-' o 0 CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIF AMll.. Y RENTAL REHABll.ITATlON PROGRAM RECOMMENDATIONS SEPTEMBER 13, 1994 The following are our recommendations that will assist the Agency in operating the Program in a more efficient manner and ensuring compliance with Agency goals and Federal requirements. I. The Agency needs to prepare formal written procedures for the Program including, but not limited to, the following. a. b. c. d. e. C f. g. A marketing strategy to "advertise" the Program to residents in the community. A system for determining funding sources to be used for the loans. A system for limiting the number of loans a Program participant is allowed to be granted without Community Development Commission approval. A system for ensuring that construction contracts are distributed to numerous contractors. A checklist that will be included in every loan file that will indicate the necessary documents to be included in the file. A system indicating what the Agency must do, what United States Escrow must do, and what documents/authorizations are required for drawing down HOME Program funds. A system indicating what the Agency must do, what United States Escrow must do (for the HOME Program loans), and what documents/authorizations are required for making payments to construction contractors. h. A system for ensuring that improvements set forth in the construction contractor's cost estimate were necessary and actually performed. I. A checklist indicating the different requirements of different funding sources (i.e., CDBG, HOME Program, etcetera). J. A system for ensuring that Agency employees involved in the selection of construction contractors have no real or apparent conflicts of interest with the construction contractors selected. 2. The Agency needs to designate one employee who will stay "up to date" on the status of the HOME Program loans and applicable Federal requirements. 3. The Agency needs to include documentation in the Program participant loan files that support that a competitive bidding process was utilized and that the Program participant selected the construction contractor, that the Program participant waived the competitive bidding process, or that the Agency actually selected the contractor and utilized a competitive bidding process. c 11 ,-., J / o o EXHIBIT I ;~ "- CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM LIST OF PARTICIPANT FILES EXAMINED SEPTEMBER 13, 1994 PARTICIPANT FILE PARTICIPANT PROPERTY ADDRESS Number 1 Labastida, Hector and Marisela 2005 McKinley Street Number 2 Labastida, Hector and Marisela 2281 E. 20th Street Number 3 Brown, John G. 272-280 West 8th Street Number 4 Thompson, Clyde Sr. and Jr. 2141 Dumbarton Avenue Number 5 Thompson, Jesse and Eunice 2168 Sunrise Lane Number 6 Thompson, Jesse and Eunice 2156 Sunrise Lane Number 7 Thompson, Jesse and Eunice 2142 Sunrise Lane Number 8 Thompson, Jesse and Eunice 2116 Sunrise Lane Number 9 Thompson, Jesse and Eunice 2130 Sunrise Lane Number 10 Ahmed, Munawar 2331 20th Street .......- Number 11 Ahmed, Munawar 2251 20th Street \,.... Number 12 Hale, Daniel and Phyllis 2095 Dumbarton Avenue Number 13 Hale, Daniel and Phyllis 2141 Newcomb Street Number 14 Hale, Daniel and Phyllis 2291 E. 20th Street Number 15 Hale, Daniel and Phyllis 2371 E. 20th Street Number 16 Hale, Daniel and Phyllis 2029 Dumbarton Avenue Number 17 Espinoza, Alexandro 209 E. 4th Street Number 18 Espinoza, Alexandro 213 E. 4th Street Number 19 Espinoza, Alexandro 201 E. 4th Street Number 20 Vizcarra, Hector and Maria 2095 McKinley Street Number 21 Vizcarra, Hector and Maria 2255 E. Sunrise Lane Number 22 Kater, Richard and Geraldine 1447-1461 N. Wall Avenue Number 23 Kater, Richard and Geraldine 1427-1443 N. Wall Avenue Number 24 Bryant, Toby 2051 McKinley Street Number 25 Bryant, Toby 2029 McKinley Street Number 26 Bryant, Toby 2311 E. 20th Street Number 27 Martin, Joseph and Paula 1414-1446 E. Citrus Number 28 Cooper, William H. 488 W. 17th Street Number 29 Clark, Dean and Joyce 1238-1254 N. Sierra Way C Number 30 Turner, Lee 2051 N. Guthrie Street Number 31 Turner, Lee 2005 N. Guthrie Street 12 I 7 r V :> EXHIBIT II c CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM FORMAL WRTITEN PROCEDURES FOR GRANTING PROGRAM LOANS SEPTEMBER 13, 1994 STEP 1. Preliminary (Walk-in or Scheduled Aooointments) a. Explain Program to prospective Program participant. b. Determine loan type. c. Provide application/checklist of documents that must be attached. d. Schedule return appointment. e. Appointments may also be scheduled by mailing out checklist/appointment letter/applicable application. STEP 2. C. Schedule Return Aooointment a. Review application for completeness or complete application at scheduled return appointment. b. Review and photocopy applicable checklist documents. c. Advise prospective Program participant of final qualification review (i.e. lot book report, appraisal, termite inspection, TRW, letter of notification regarding waiting list status). STEP 3. Qualification Review a. Lot book report/preliminary title report. b. TRW. c. Termite inspection. d. Appraisal. c 13 JfF}' o o EXHIBIT II o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM FORMAL WRITIEN PROCEDURES FOR GRANTING PROGRAM LOANS SEPTEMBER 13, 1994 STEP 4. Write-uo/Insoection a. Assign Senior Rehabilitation Specialist. b. Schedule inspection. c. Conduct property inspection. d. Write-up/Inspection/Cost Estimate. STEP 5. Review Work Write-uos c a. Schedule in-house appointment with prospective Program participant. b. Review work write-up/cost estimate/additions or deletions. c. Schedule bid walk-through date with prospective Program participant. STEP 6. Bids a. Mail to contractors, minimum of three (3), pre-bid information, date of walk- through, return date, and wok write-up. The contractors may be telephoned and given a date and time to pick up bid packet(s). The three (3) bid process may be waived, subject to owner approval. STEP 7. Review of Bids a. b. 0 c. d. e. Review bids with prospective Program participant. Prospective Program participant selection of contractor. Verify contractor's license and expiration date. Certificate of contractor insurance (i.e., liability and workers' compensation). City business tax license. 14 " "7 o o EXHIBIT III Ie CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIF A.MIL y RENTAL REHABILITATION PROGRAM CONTENTS OF PROGRAM P ARTICll'ANT LOAN FILES SEPTEMBER 13, 1994 Amount of Number Client File Propertv Address Loan of Units Status of Units Labastida, Hector and Marisela 2005 McKinley $ 86,700 4 Vacant Labastida, Hector and Marisela 2281 E. 20th Street $ 73,300 4 Vacant Brown, John G. 272-280 West 8th Street $ 530,000 32 Partially Occupied Thompson, Clyde Sr. and Jr. 2141 Dumbarton Ave. $ 116,700 4 Vacant Thompson, Jesse and Eunice 2168 Sunrise Lane $ 68,500 4 Vacant Thompson, Jesse and Eunice 2156 Sunrise Lane $ 68,500 4 Vacant Thompson, Jesse and Eunice 2142 Sunrise Lane $ 68,500 4 Vacant Thompson, Jesse and Eunice 2116 Sunrise Lane $ 68,500 4 Vacant Thompson, Jesse and Eunice 2130 Sunrise Lane $ 68,500 4 Vacant Ahmed, Munawar 2331 20th Street $ 88,550 4 Vacant Ced, Munawar 2251 20th Street $ 96,450 4 Vacant ., Daniel and Phyllis 2095 Dumbarton Ave. $ 95,515 4 Vacant Hale, Daniel and Phyllis 2141 Newcomb Street $ 132,729 4 Vacant Hale, Daniel and Phyllis 2291 E. 20th Street $ 91,628 4 Vacant Hale, Daniel and Phyllis 2371 E. 20th Street $ 94,973 4 Vacant Hale, Daniel and Phyllis 2029 Dumbarton Ave. $ 56,100 4 Vacant Espinoza, Alexandro 209 E. 4th Street $ 57,300 4 Vacant Espinoza, Alexandro 213 E. 4th Street $ 55,700 4 Vacant Espinoza, Alexandro 201 E. 4th Street $ 61,350 4 Vacant Vizcarra, Hector and Maria 2095 McKinley Street $ 94,500 4 Vacant Vizcarra, Hector and Maria 2255 E. Sunrise Lane $ 66,700 4 Vacant Kater, Richard and Geraldine 1447-1461 N. Wall Ave. $ 202,500 8 Occupied Kater, Richard and Geraldine 1427-1443 N. Wall Ave. $ 380,026 10 Partially Occupied Bryant, Toby 2051 McKinley Street $ 60,000 4 Partially Occupied Bryant, Toby 2029 McKinley Street $ 60,000 4 Partially Occupied Bryant, Toby 2311 E. 20th Street $ 60,000 4 Occupied Martin, Joseph and Paula 1414-1446 E. Citrus $ 260,000 36 Partially Occupied Cooper, William H. 488 W. 17th Street $ 650,000 42 Occupied Clark, Dean and Joyce 1238-1254 N. Sierra Way $ 160,000 9 Occupied Turner, Lee 2051 N. Guthrie Street $ 97,920 4 Vacant Turner, Lee 2005 N. Guthrie Street $ 99 450 4 Vacant C T ota! all projects $ 4.170.591 16 -J 1/ r- '- Client File Labastida, Hector and Marisela Labastida, Hector and Marisela Brown, John G. Thompson, Clyde Sr. and Jr. Thompson, Jesse and Eunice Thompson, Jesse and Eunice Thompson, Jesse and Eunice Thompson, Jesse and Eunice Thompson, Jesse and Eunice Aluned, Munawar ~ed, Munawar . " Daniel and Phyllis e, Daniel and Phyllis Hale, Daniel and Phyllis Hale, Daniel and Phyllis Hale, Daniel and Phyllis Espinoza, Alexandro Espinoza, Alexandro Espinoza, Alexandro Vizcarra, Hector and Maria Vizcarra, Hector and Maria Kater, Richard and Geraldine Kater, Richard and Geraldine Bryant, Toby Bryant, Toby Bryant, Toby Martin, Joseph and Paula Cooper, William H. Clark, Dean and Joyce Turner, Lee Turner, Lee c o o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MUL TIF AMIL Y RENTAL REHABILITATION PROGRAM CONTENTS OF PROGRAM PARTICIPANT LOAN FILES SEPTEMBER 13, 1994 Date Property Purchased 06-18-93 03-30-93 02-19-93 10-11-93 06-14-93 06-14-93 06-14-93 06-14-93 06-14-93 07-04-92 02-17-93 12-02-92 12-02-92 12-02-92 12-02-92 12-02-92 12-03-92 12-03-92 05-20-93 12-09-93 07-21-93 04-16-90 04-16-90 07-01-92 07-01-92 07-01-92 10-16-93 06-xx-93 09-01-92 04-16-94 04-16-94 Date of Loan ADolication 06-25-93 04-15-93 06-19-93 10-13-93 07-14-93 07-14-93 07-14-93 NONE 07-14-93 03-04-93 06-15-93 01-01-93 01-01-93 01-01-93 01-01-93 01-01-93 12-03-92 12-03-92 05-06-93 01-09-94 06-08-93 04-04-93 04-04-93 06-26-93 06-26-93 06-26-93 01-16-93 06-28-94 03-18-93 04-16-94 04-16-94 17 Proiect Number 061309L7392 041230L7392 061314D9730 101362L5729 0663300005 0663300008 0663300007 0663300006 0663300009 9002000044 061303L9831 01l217L3636 121212L3636 011216L3636 011213L3636 01l218L3636 121222L9777 121221L9777 061302L9777 011385L2463 061326L2463 0663300002 0663300014 061330L6253 061304L6253 061332L6253 0663300001 061411L5745 0663300003 041405H4826 041404H4826 EXHIBIT III Source of Loan Funds CDBG CDBG CDBG/20% Set-aside 20% Set-aside HOME, CDBG HOME, CDBG HOME, CDBG HOME, CDBG HOME, CDBG Rental Rehab, CDBG CDBG CDBG CDBG CDBG, 20% Set-aside CDBG, 20% Set-aside CDBG, 20% Set-aside Rental Rehab, CDBG Rental Rehab, CDBG Rental Rehab, CDBG CDBG CDBG CDBG, 20% Set-aside, HOME HOME HOME, CDBG HOME, CDBG HOME, CDBG HOME 20% Set-aside HOME HOME HOME " -7 r '-' Client File Labastida, Hector and Marisela Labastida, Hector and Marisela Brown, John G. Thompson, Clyde Sr. and Jr. Thompson, Jesse and Eunice Thompson, Jesse and Eunice Thompson, Jesse and Eunice Thompson, Jesse and Eunice Thompson, Jesse and Eunice Ahmed, Munawar ~ed, Munawar ~, Daniel and Phyllis . ale, Daniel and Phyllis Hale, Daniel and Phyllis Hale, Daniel and Phyllis Hale, Daniel and Phyllis Espinoza, A1exandro Espinoza, A1exandro Espinoza, A1exandro Vizcarra, Hector and Maria Vizcarra, Hector and Maria Kater, Richard and Geraldine Kater, Richard and Geraldine Bryant, Toby Bryant, Toby Bryant, Toby Martin, Joseph and Paula Cooper, William H. Clark, Dean and Joyce Turner, Lee Turner, Lee o o CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM CONTENTS OF PROGRAM PARTICIPANT LOAN FILES SEPTEMBER 13, 1994 Type of Loan Limited Deferred Limited Deferred Limited Det7 Amortized Limited Deferred Lim Det7Self Liquid straight Lim Det7Self Liquid straight Lim Det7Self Liquid straight Lim Det7Self Liquid straight Lim Det7Self Liquid straight Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Limited Deferred Self Liquid Straight Lim Det7Self Liquid straight Lim Det7Self Liquid straight Lim Det7Self Liquid straight Self Liquid Straight Limited Deferred Self Liquid Straight Self Liquid Straight Self Liquid Straight Construction Comoanv Vizcarra Vizcarra Barrow Barrow (Thompson) Wilcox Wilcox Wilcox Wilcox Wilcox Barrow Barrow Remmel, BohnlJensen Remmel, BohnlJensen Remmel, BohnlJensen Remmel, BohnlJensen Remmel, BohnlJensen Sierra Home Remodeling Sierra Home Remodeling Sierra Home Remodeling Vizcarra Vizcarra Barrow Barrow A&A Invest Contractors A&A Invest Contractors A&A Invest Contractors Barrow Barrow Barrow Westworld (Turner) Westworld (Turner) <;: Indicates attribute tested was satisfied and/or document was examined. 18 EXIDBIT III Loan Apolication X X X X X X X NO X X X X X X X X X X X X X X X X X X X X X X X Tenant Information Sheets X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X 17 o o EXHIBIT III c CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMll. Y RENTAL REHABILITATION PROGRAM CONTENTS OF PROGRAM PARTICIPANT LOAN FILES SEPTEMBER 13, 1994 Displaced Request for Infonnation Promissory tenants given Fund Disclosure Client File Note(s) prQper notices? Reservation Credit Report Authorization Labastida, Hector and Marisela X N/A X X X Labastida, Hector and Marisela X N/A NO X X Brown, John G. X N/A X X NO Thompson, Clyde Sr. and Jr. X N/A X X X Thompson, Jesse and Eunice X N/A X X X Thompson, Jesse and Eunice X N/A X X X Thompson, Jesse and Eunice X N/A X X X Thompson, Jesse and Eunice NO N/A X X X Thompson, Jesse and Eunice X N/A X X X Ahmed, Munawar X N/A X X X Ced, Munawar X N/A X X X . ., Daniel and Phyllis X N/A X X X Hale, Daniel and Phyllis X N/A X X X Hale, Daniel and Phyllis X N/A X X X Hale, Daniel and Phyllis X N/A X X X Hale, Daniel and Phyllis X N/A X X X Espinoza, Alexandro X N/A X X X Espinoza, Alexandro X N/A X X X Espinoza, Alexandro X N/A X X X Vizcarra, Hector and Maria X N/A X X X Vizcarra, Hector and Maria X N/A X X X Kater, Richard and Geraldine X X NO X X Kater, Richard and Geraldine X N/A N/A X X Bryant, Toby X N/A X X X Bryant, Toby X N/A X X X Bryant, Toby X N/A X X X Martin, Joseph and Paula X N/A N/A X X Cooper, William H. X N/A X X X Clark, Dean and Joyce X N/A N/A X X Turner, Lee X N/A N/A X X Turner, Lee X N/A N/A X X C X: Indicates attribute tested was satisfied and/or document was examined. 19 i "7 0 :> EXHIBIT III CITY OF SAN BERNARDINO C ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM CONTENTS OF PROGRAM PARTICIPANT LOAN FILES SEPTEMBER 13, 1994 Affordable Deed of Housing Mortgage Trust/Grant Covenants and Client File V erification Tax Returns Title Policy Deed R-estrictions Labastida, Hector and Marisela X X X X X Labastida, Hector and Marisela X X X X X Brown, John G. X X X X NO Thompson, Clyde Sr. and Jr. NO X X X X Thompson, Jesse and Eunice X X X X X Thompson, Jesse and Eunice X X X X X Thompson, Jesse and Eunice X X X X X Thompson, Jesse and Eunice X X X X X Thompson, Jesse and Eunice X X X X NO Ahmed, Munawar X X X X X eed, Munawar X NO X X X " Daniel and PhyIlis X X X X X Hale, Daniel and PhyIlis X X X X X Hale, Daniel and Phyllis X X X X X Hale, Daniel and PhyIlis X X X X X Hale, Daniel and PhyIlis X X X X X Espinoza, Alexandro NO X X X X Espinoza, Alexandro X X X X X Espinoza, Alexandro X NO X X X Vizcarra, Hector and Maria X X X X X Vizcarra, Hector and Maria X X X X X Kater, Richard and Geraldine X X X X X Kater, Richard and Geraldine X X X X X Bryant, Toby X X X X X Bryant, Toby X X X X X Bryant, Toby X X X X X Martin, Joseph and Paula X X X X X Cooper, William H. X X X X X Clark, Dean and Joyce NO X X X X Turner, Lee X X X X X Turner, Lee X X X X X C X: Indicates attribute tested was satisfied and/or document was examined. 20 J'7 0 :.> EXHIBIT III CITY OF SAN BERNARDINO C ECONOMIC DEVELOPMENT AGENCY MULTIF AMlL Y RENTAL REHABILITATION PROGRAM CONTENTS OF PROGRAM PARTICIPANT LOAN FILES SEPTEMBER 13, 1994 Truth in Change Lending Order(s) Disclosure Appraisal Notice of approved by Description of Client File Statement Reoort Completion David Edl!:ar Work Required Labastida, Hector and Marisela X X X N/A X Labastida, Hector and Marisela X X X X X Brown, John G. X X X X X Thompson, Clyde Sr. and Jr. X X X X X Thompson, Jesse and Eunice X X X X X Thompson, Jesse and Eunice X X X X X Thompson, Jesse and Eunice X X X X X Thompson, Jesse and Eunice X X X X X Thompson, Jesse and Eunice X X X X X Ahmed, Munawar X X X X X ~ed, Munawar X X X X X ,,-., Daniel and Phyllis X X N/A X X Hale, Daniel and Phyllis X X X X X Hale, Daniel and Phyllis X X X X X Hale, Daniel and Phyllis X X X X X Hale, Daniel and Phyllis X X N/A X X Espinoza, A1exandro X X X X X Espinoza, A1exandro X X X X X Espinoza, A1exandro X X X X X Vizcarra, Hector and Maria X X N/A N/A X Vizcarra, Hector and Maria X X X X X Kater, Richard and Geraldine X X X N/A X Kater, Richard and Geraldine X X X X X Bryant, Toby X X X X X Bryant, Toby X X X X X Bryant, Toby X X X X X Martin, Joseph and Paula X X X X X Cooper, William H. X X N/A N/A X Clark, Dean and Joyce X X X X X Turner, Lee X X N/A N/A X Turner, Lee X X N/A N/A X ,"-" \- X: Indicates attribute tested was satisfied and/or document was examined. 21 ( n { ^___m..,,_.___,n 0 0 EXlllBIT III CITY OF SAN BERNARDINO C ECONOMIC DEVELOPMENT AGENCY MULTIFAMll.. Y RENTAL REHABILITATION PROGRAM CONTENTS OF PROGRAM PARTICIPANT LOAN FILES SEPTEMBER 13, 1994 Evidence of Checklist of Tenant Competitive Applicable EDA Pictures of Assistance Bidding for Statutes and Inspector Rehabilitated Policy (RRP Client File Contractors Regulations Estimate Propel'\Y - onJv) Labastida, Hector and Marisela NO X $ 117,310 NO N/A Labastida, Hector and Marisela NO X $ 60,000 NO N/A Brown, John G. NO X $ 530,000 NO N/A Thompson, Clyde Sr. and Jr. NO X $ 90,000 NO N/A Thompson, Jesse and Eunice NO X $ 77,227 NO N/A Thompson, Jesse and Eunice NO X $ 77,227 NO N/A Thompson, Jesse and Eunice NO X $ 77,227 NO N/A Thompson, Jesse and Eunice NO X $ 77,227 NO N/A Thompson, Jesse and Eunice NO X $ 77,227 NO N/A Ahmed, Munawar NO X $ 48,000 NO X ~ed, Munawar NO X $ 90,000 NO N/A '-", Daniel and Phyllis NO X $ 40,000 NO N/A Hale, Daniel and Phyllis NO X $ 50,000 NO X Hale, Daniel and Phyllis NO X $ 40,000 NO X Hale, Daniel and Phyllis NO X $ 40,000 NO X Hale, Daniel and Phyllis NO X $ 40,000 NO X Espinoza, Alexandra NO X $ 51,737 NO X Espinoza, Alexandro NO X $ 49,220 NO X Espinoza, Alexandro NO X $ 51,737 NO X Vizcarra, Hector and Maria NO X $ 90,000 NO N/A Vizcarra, Hector and Maria NO X $ 56,000 NO X Kater, Richard and Geraldine NO X $ 180,000 NO N/A Kater, Richard and Geraldine Waiver X $ 355,000 NO N/A Bryant, Toby NO X $ 53,000 NO N/A Bryant, Toby NO X $ 53,000 NO N/A Bryant, Toby NO X $ 53,000 NO N/A Martin, Joseph and Paula Memo X NONE NO N/A Cooper, William H. Waiver NO $ 502,000 NO N/A Clark, Dean and Joyce X X $ 142,000 NO N/A Turner, Lee NO X $ 120,013 NO N/A Turner, Lee NO X $ 120,013 NO N/A C X: Indicates attribute tested was satisfied and/or document was examined. 22 . ."7 0 0 EXHIBIT III CITY OF SAN BERNARDINO C ECONOMIC DEVELOPMENT AGENCY MUL TIF AMlL Y RENTAL REHABILITATION PROGRAM CONTENTS OF PROGRAM PARTICIPANT LOAN FILES SEPTEMBER 13, 1994 Affinnative Rental Rehab Marketing Service Evidence of Policy (RRP Agreement Agreement for Environmental Davis-Bacon Client File only) (RRP only) Rehabilitation Impact Checklist - Compliance Labastida, Hector and Marisela N/A N/A X X N/A Labastida, Hector and Marisela N/A N/A X X N/A Brown, John G. N/A N/A X X X Thompson, Clyde Sr. and Jr. N/A N/A X N/A N/A Thompson, Jesse and Eunice N/A N/A X X N/A Thompson, Jesse and Eunice N/A N/A X X N/A Thompson, Jesse and Eunice N/A N/A X X N/A Thompson, Jesse and Eunice N/A N/A X X N/A Thompson, Jesse and Eunice N/A N/A X X N/A Ahmed, Munawar X X X X N/A ~ed, Munawar N/A N/A X X N/A \-;, Daniel and Phyllis N/A N/A X X N/A Hale, Daniel and Phyllis X X X X N/A Hale, Daniel and Phyllis X X X X N/A Hale, Daniel and Phyllis X X X X N/A Hale, Daniel and Phyllis X X X X N/A Espinoza, Alexandro X X X X N/A Espinoza, Alexandro X X X X N/A Espinoza, Alexandro X X X X N/A Vizcarra, Hector and Maria N/A N/A X N/A N/A Vizcarra, Hector and Maria X X X X N/A Kater, Richard and Geraldine N/A N/A X X N/A Kater, Richard and Geraldine N/A N/A X N/A N/A Bryant, Toby N/A N/A X X N/A Bryant, Toby N/A N/A X X N/A Bryant, Toby N/A N/A X X N/A Martin, Joseph and Paula N/A N/A X N/A X Cooper, William H. N/A N/A X N/A N/A Clark, Dean and Joyce N/A N/A X N/A N/A Turner, Lee N/A N/A X N/A N/A Turner, Lee N/A N/A X N/A N/A C X: Indicates attribute tested was satisfied and/or document was examined. 23 /7_ c c c - o o EXHIBIT IV CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIF AMll- y RENTAL REHABILITATION PROGRAM CON1RACTOR BID LIST SEPTEMBER 13, 1994 A & A INVESTMENT CONTRACTORS Charles Walker, Owner 708 West Mill, Suite Al San Bernardino, California 92410 BARROW CONSTRUCTION, INC. Clyde B. Thompson, Sr., Owner P.O. Box 5058 Colton, California 92324 DAVIDA. DAVIES, INc. David A. Davies, Owner P.O. Box 397 A1ta Lorna, California 9170 I MUCHMORE CONSTRUCTIONIUNDERWOOD AND SONS Lindval Underwood, Owner 740 West Mill Street, Suite B San Bernardino, California 92410 SONORA CONSTRUCTION COMPANY, INC. R. Guzman, Owner 1126 Brookhurst Street, Suite 110 Anaheim, California 9280 I VIZCARRA CONSTRUCTION & DEVELOPMENT COMPANY Hector Vizcarra, Owner 2255 Sunrise Lane, Suite B San Bernardino, California 92404 WILCOX CONSTRUCTION COMPANY Delmont Wilcox, Owner 740 West Mill Street, Suite N San Bernardino, California 92410 Source: NEIGHBORHOOD REHABIliTATION PROGRAM, Contractor Bid List, obtained from Mr. Oliver Moore, Housing Rehabilitation Coordinator. 24 .'", / c c c c o EXHIBIT V CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM MISCELLANEOUS ITEMS SEPTEMBER 13, 1994 L Status of Loans : Total ofloans fully funded $3,689,215 Total ofloans in process 1.208.268 Total of all loans granted $4 897 483 2. Source ofloan funds: CDBG CDBG/NRP CDBG/Low- and Moderate-Income HOME NRP NRP/RRP RRP Low- and Moderate-Income Unknown $ 361,679 655,244 627,838 2,008,758 270,000 174,350 20,600 777,514 1.500 Total of all loans granted $4 897 483 3. The Agency made a loan to Clyde Thompson, Sr. and Jr., for $116,000 from Low- and Moderate-Income Housing funds to rehabilitate the property at 2141 Dumbarton Avenue. The Thompsons own Barrow Construction, which performed the rehabilitation construction for the property. The Agency later agreed to purchase the property from the Thompsons for $150,000, with the intention of granting the property to Operation Grace, a not-for-profit organization, to satisfy a HOME Program Community Housing Development Organization (CRDO) requirement. Barrow Construction was the contractor that performed the construction for most of the Program loans. The Agency had not purchased the property from Clyde Thompson as of the date of this report. 4. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from 25 17 o o EXHIBIT V . 'C CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY MULTIFAMILY RENTAL REHABILITATION PROGRAM MISCELLANEOUS ITEMS SEPTEMBER 13, 1994 unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. From a strict accounting standpoint the Agency's internal controls over the Program are essentially adequate to allow for a fiscal year-end audit. However, it would appear that all Program loans were made without official action by the Community Development Commission or the City Council, but solely with the authorization of Mr. Kenneth Henderson, Executive Director, and Mr. David Edgar, Housing Division Manager. It is questionable as to what authority Messrs. Henderson and Edgar relied upon to implement the Program and execute the documents including, but not limited to, the following: c . For loans where REQUEST FOR FUND RESERVATION and DIsPOsmoN OF FUNDs forms were required (all loans other than those funded with HOME Program monies), the forms were signed by Mr. Edgar. . For loans where REQUEST FOR FUND RESERVATION and DIsposmoN OF FUNDs forms were not required, HOME CONTROL INSTRUCTIONS forms were submitted to United States Escrow with Mr. Edgar's signature on them. (These forms were used by United States Escrow to create new escrow accounts for HOME Program participants.) . When there were CHANGE ORDER forms prepared for the construction contracts funded by the Program loans, the CHANGE ORDER forms were signed by both Mr. Henderson and Mr. Edgar. . The CHECKLIST OF APPLICABLE STATUTES AND REGULATIONS forms were signed by Mr. Edgar. . The AGREEMENT FOR HOME PROGRAM PARTICIPATION forms were signed by Mr. Henderson. . The AFFORDABLE HOUSING COVENANTS AND RESTRICTIONS agreements between the Agency and the Program participants were signed by Mr. Henderson. c . The HOME PROGRAM IMPLEMENTATION AGREEMENT between the Agency and United States Escrow was signed by Mr. Henderson. 26 . 7 , , ,..-, ...... ...- """'" r """'" o ATTACHMENT "B" o c c c. o 0 ECONOMIC DEVELOPMENT AGENCY Payment Request Contract: Contract II Purchase Order II Date or Approval · By. Or: Penon Generating Payment Request . Div ----.....--------.-.---------------------------------------------------------------------------------------------- Payable To. Check Made Out To V# Vendorll Address Work Order /I. City WOtI Invoice Invoice II Amount Amouat or Invoice Due by Due Date Description of Supplies ,lr Services: Description Remarks/Special Ir.structions: Special Instructions Account Information: FA Line Account Fund Budget II Account II ICO Amount Project Area Amount.r Check Step Allocation: Special Contract Compliance Balance Contract Balance Amount Amouut .rCheck .. - _.__ ____ - ___ - __ _.w __ __ ___ ___ _. _ ______ ______ _ __ __ _ ____ _._ _____ __ _ _ __ _ _ __ _____.. ___ _ .__ ____ __ __ __ _ __ ___ ___ ___ ___ o\!>PROVED BY Date Stsff and Division Manner . Division Manager Executive Director . DeputylExec.Director Agency Administrator -----------------------------------------------------------------------------------------------------------. Contract Gross~ Paid Paid to Date . Totsl Contract Pending Any Open Items Request This Request Balance Contract balance after this payment Check Writer: iCheck 1# Date Cheek Date Run by Wbo ran cheek Cash Log Who IO'l!ed Who Verified in Administration - Administrative Services BL:pc:pmlreq.&m 1I/1II\>4 o o /""' \w PROPOSED ORGANIZATIONAL CHART c c // I I u ! ~ I ! Iii Ii c f 'ii Ii :2 I I J i- I ~ il I I II C .J i j ~ ~ j- IB o' I .! . -1 I E ! II II u ~ i ! i ! . i. i- ! c I h G 1> E ,I ,I Ii ... 0 ,I ~ Ji l .! J Ii H J ~ J >- I J I:; ~ t I 15 is If J il ~ ;; H ~ I ~ '0:( I J .~ I- I c J i1 G E ~t: I s- a; J > 1- om III I . .!l .t:: .c " il -e:SO h I <\llU- I 11 . C E Q III ~o 5 J :i .- I J l- t:: - _.,~ ~o ~ ul J I il ..... :c: "c I 00 III . .eO Cl o:lJ! Ii I Ol G 0 GlUO c - --" c o II " I $ Ol . ~ ~ .1 :> i I ~ > c <3 Ii II . II . ... ~ <:1 g "0 " ~ .;; &! i7 c c c o ATTACHMENT "A" o , ') o CITY OF SAN BERNARDINO 0 ECONOMIC DEVELOPMENT AGENCY . . PAYMENT REQUEST <l> ~ IS ~;trIe/ PAYABLE TO 13~1-<<.) e..<.~(!r...;J DATE 3 -...:2 :1 - ~y ADDRESS eJ>~ 1.3~ S""P-IT {!:8-~1 @/-j 7.;J3...:J-V , ATTN DESCRlI'TlON OF SUPPLIES OR SERVICES .i..u/ rJ1~ -mR._at-.ff.5 fJJLL-t '} ~-1l-L..-,&~_-<) 4":U :t:f;. / s-. RfOUESTEOB~" <l~~ SIGNATURE ....~,~~ U~A--"fii> REQUESTING DIVISION Admin. Services PROJECT BUDGET DEPT. AMOUNT LINE ITEM /0' rClJ~'/ 7M)/ ~ 4..f'p /:>1 :3-(~ TOTAl:"lf~ J..? . -H"""'''"'_L !t;"'t &-',A ; ~"'''"''~_._'' ~__1 ..t~ ~~." ContracllP.O. J~=--f.Y' ContracllP.O. T elm ContracllP.O. Amount ContracllP.O. Balance-GS) IS: .1'.<..>2." Amount of This Invoice f/? /.:I. r ,() Balance Remaining / P t I? .; c. 11' V Check One: Par1iaI Payment ACCOUNTING USE ONLY Fnal Payment IS:/} Vendor # cf)S77 Check # ;) 15"0/",1 ill: Dale ~/"/-/II Run by PfJ 1/ ' . I .' / :': lor! Approval ~ Approval ~ ..'.~ ........ .' , .#6- . # Due Dale Cash log DO #173 .(j)~eCf-ip+ of f'tAJiw . Barrow Consuucuon P.O. Box 5058 <. Colton, California 92324 .- . o REQUEST FOR PAYMENT Customer's Name: Barrow Construction Address: P.O. Box 5058 Colton CA 92324 Property Owner(s): Patricia Mar ason Address: 958 North G Street San Bernardino Ca. ;)lifttU _3 Invoice #: 1529 Lie. # 576844 Phone (909) 825-7312 Fax (909) 872-0631 Phone Number: 909-825-7312 W11?W7 . n MAR 21 1994 III ~ CITY Of SAN BERNAaDINO ECONOMIC D"E^V!.l~~':.~NT AGENCY ,,'.,',<Contracl. . ...-.. " . . . . , .".......... 'u .. 'Poce 265.00 695.00 165.00 160.00 150.00 65.00 150.00 690.00 1650.00 495.00 897.00 o o o o o o o o o o $S.3:2.0. c ii,...,....'.,'.....'ltem...NoJ&, '.',"',8"r, i,ef,ii,"ii i..' ".' ....."',i...;D~$eti6t1ah""',.,."i','..,',""".""'" Plumbina #30 Plumbina #31 Plumbina #32 Eledrical #33 Eledrical #34 Eledrical #35 Eledrical #36 Floorina #37 Paintlna #38 Penni1 #40 Profit & Overhead r::::'I r,. L:I ~ I il , II ,'w;,( 1(4ljll II .~) !I .' , " .-:...,; en '{ .;.~;. ......,,, ...",....I~~U ~ 'T ^,- .f'" ;"\.IUI~UI'lIv l.J~' 1..1...... TOTALS: "N~t~D~~~~~f .... .WotK.,. 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% o o o o o o o o o o o ,""'QcmarAmouht'.., '.Reau&sledii $ 265.00 $ 695.00 $ 165.00 $ 160.00 $ 150.00 $ 65.00 $ 150.00 $ 690.00 $1 650.00 $ 495.00 $ 897.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ o.o~ $S.382.0~ ' Total Amount: .'......iRem~liiiiigii ,..'....'..Blii$h~'.)""... $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Pa 1l1~~~ J4.843.80@ c t- O') L/) (W') N o o Z . .. i "- .CJo ~o~ ~I~ \ i~g ~ li: ~III~ N N ~~<( cb - c:...z _ j~~ .Wz ~!~ .. .. a: ii: -....-.-".:'. ......".~.-, o 0 ,.:'t Z '. ." "'.-d~1 . 0 .W . :J: ,:: 0 z ~'. '0...., ..... :J >:;;;,.., 'w .,. 0 .~ ..,UU .' ..J 11 .. 0( ....Z . _..' ,."1 ",11.1 .. ID , N C> "0 ~ 4( , rt..,' '.<11( ;; .J: . ... - .. W '" Z c 0 - 01 - 0( " ,,2':; e" Q 'n -r ... ....c W 0 -r ...-' Z ..... .., .... en_, >- ' I 010 b ,,' Q~ ..... 01- -. a:U Z .. = ~ "' - z w o ~ - Q ... "' a: :s ~ g . ;'1 .... ..c '. " '" ... ..t ~ . u ~ : ;~. wZ << v...., :J:OII: . ,~..... F n:.lnN II..lL """.I',\)- :J .~O o oC 0 ' ""on c 'f. > U Z . <{. 'v: '< t'- U .;:). ., .,' ">1- <"""" lr ZO~... F.'." :;r,"'~'!!'l'r 111 t!! a: ~ I ; ..t..:,~ <~~." '.^:i' ... ~ ~ oC"~ '~ ,';' ...r~~~'.'::;-;\.;. ~ z z t:: ,..~-,.' :. c"',;.~~.y;.;.,...". " W II: I/) g . ,- .... i,~, '':'!~:'''':i ' llllz e';" .~ './~i.',:...~;;.., q z :E . -';',r~~'~ " .:~~~;.:' ;~~~;-~;~.~.~:. :~: -~;r' ;~. w-....o., ...... ..,...." ;f,.;...".... .,'.t.;., ......l1li( ,,;.f-.;' -.-";,'0 .,....'........<,..-. I~!+.. >1/), ::-;.' ':.;,t>,.,Pa:w,;'llt'''';:'1l':''~' ~lI..o . . t." \~ ..t,:......... w .' ... ..:~.' . ,. ""1\' II:~ ~ ..,~ .,. '.' U' ~ o .. ~ o " t- O') L/) (W') N o ---.-- ~_._..- -.-- - - .. . ._.-~ - ,. . Z :J . 0 , < , z 0 " ::J ,. CIl ii: >- '" . 2S - Z :J 0 U U < . . - " Z :J , 0 , , ~ , <. , '. ., J ~( ! , < ... < i , .. '.' '. . " ':l -...... .. ~ . , , ,. '. " ~ ,.. , , ~ .' ". ", .' - .. .. , < C" ,,- <.. ,- . I" ,. , .., ~\; -l'lIo '0' " .:, c.. ~ ... .( .. .1; ~, , .. ',,', :.1 ~ '['. .:) .. " ,.: ., ". ., .~ - 'L .- ,. ... ~ w. --r ow -<0 0, U' >:J ~ h r. "' - ., V ., , w '" Q uw - 0< ~o , '. -.--- -. -. -- - . .-. .. .. .- I o Z l' ' ,. ~ '" oJ o ctI lr t'- r..O o '" .. - ca ~ '" o o o '" '" ... ., .. ~ r:", .., .... OJ "J; '::J .... u. "-I ~- .... ,~ .... .t" '.t: ":.") .. ,~ .n -' ,~ .::0 .....0: :0>-_ u. u << <<'( .:.) ... .~. r_ (:1-. ~:\ . , " )~.. ) ... I l.. ) ~... I l.. ) :... ~, J.. :l:J:d.. . CJ i ) i .. . ! ~ i iii . '" . i i~ c ;10\ i~ ~ u . S '0 .. CJ Z W " .. .. Z W l! .. 9 W > W C III a: t.:""', ,e ~: ,J)... )~) . . ~.. _:l.. .~.. _:l.. ~.. ).... .