M-1/13/1970 (3)
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REDEVELOPMENT AGENCY
OF THE
CITY OF SANTA MONICA, CALIFORNIA
January 13, 1970
4:30 P.M.
The Redevelopment Agency of the City of Santa Monica, California, met in
regular annual session on January 13, 1970, at 4:30 P.M., in the City
Council Chambers.
PRESENT:
MEMBERS: J. Lee Schimmer, Chairman
B. Thomas Barnard
C II fford Conne Ily
Ted Fach
L. Wayne Harding
Mortimer T. Richey
Philip E. Whiting
ABSE NT:
MEMBERS: None
ALSO PRESENT:
John Gray, Financial Consultant
Eugene a. Jacobs, General Counsel
Ray Ripton, Los Angeles Times Reporter
Arnie Friedman, Evening Outlook Reporter
Gary G. Jones, Acting Executive Director-Secretary
May Palfrey, Stenographer
APPROVAL OF MINUTES:
The minutes of December 9, 1969 were approved
as mai led.
APPROVAL OF BILLS:
The Acting Secretary reviewed the bills as
follows:
John Gray
. . . $440.00
. . $392.50
Eugene B. Jacobs.
TOTA L BILLS. , . .
. $832.5Q
Mr. Barnard moved, seconded by Mr, Connelly, that the bills be paid
as submitted, in the amount of $832.50. The motion carried with the
following roll call vote:
AYES:
NOES:
ABSENT:
Schimmer, Barnard, Connelly, Fach, Harding, Richey, Whiting
None
None
MEMBERS:
MEMBERS:
MEMBERS:
PROJECT ACTIONS AND REPORTS:
Project I (a):
Report on Los Angeles County 1969-70 Tax Assessment
The Acting Secretary stated that the Agency had been notified by
the Assessor's Office that the apportionment of the increased tax in-
crement for 1969-70 would total $162,878.19 and that receipt of this
amount by the Agency could be anticipated in February, 1970. He noted.
in addition, that the Auditor-Controller for Los Angeles County had
reported an error in the 1968-69 assessment, which would necessitate
a downward adjustment in the total increment to be received by the
Agency.
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Minutes - 1/13/70
Page Two
The Acting Secretary then called upon Mr. John Gray, Agency
Financial Consultant, to report on the projected purchase of the Agency's
Tax Allocation Bonds based upon the expected tax Increment revenues.
Mr. Gray estimated that the total funds available to the Agency will
enable redemption of at least $160,000 in outstanding bonds and possibly
this amount could be as high as $180,000. He stated further that tax
revenues being received by the Agency would enable retirement of the
entire Tax Allocation Bond Issue within another five years.
project I (b):
<;a!"cellation ,of Sale of "Project Notes
The Acting Secretary stated that a recent financial analysis of
Project I(b) in preparation for the refinancing of the outstanding
Project loan had disclosed that the loan availability under the present
Loan and Grant Contract for Project I{b} had reached its maximum limits,
He stated that under these circumstances, it was necessary to remove
the Project Notes in the amount of $3,030,000, due to mature on March 6,
1970, from the private market and then proceed with direct Federal
financing which could be accomplished at an interest rate not to exceed
6%. Mr. Gray stated that the Agency had not illegally exceeded contract
loan amounts and that an Amendatory Application to the Loan and Grant
Contract was being prepared to provide the Agency with additional loan
amounts.
,~ENERAl:
Special Aud!t - Dept. of Housin9 and Urban"Development
The Acting Secretary reported to the Agency Members that the Dept.
of Housing and Urban Development had closed its files on the Special
Audit of the Redevelopment Agency relating to the misappropriation of
Agency funds. He noted that the three basic audit findings - (I) the
cancellation of credit cards; (2) tighter control over petty cash;
and (3) storage of blank checks - had been adjusted to comply with the
Auditor's recommendations and that internal controls of the Agency had
been considerably strengthened. fhe Acting Secretary also stated that
there was no loss of Federal funds as a result of the misappropriations
and that there were no further exceptions or findings yet to be resolved.
Dept. of Housin~ and Urban D~yelopment - Review Status of
~mended land Disposltlo~.A9reement
The Acting Secretary re?orted that a letter had been received from
Mr. James D. Richardson, Assistant Regional Administrator for the Renewal
Assistance Office of HUe, regarding the review status of the Amended land
Disposition Agreement bet~~en the Agency and Crescent Bay Properties.
This statement had been reQuested by the Agency because of the excessive review
time takan by the Dept. of Housing and Urban Development, Mr. Richardson
noted in his letter that ~UD was attempting to work out some solution
of the timing of the Agreement as well as other aspects of the proposal,
and he was suggesting that the SHRA request an extension for acceptance
of the Agreement from Ja,uary 15 to March 15, 1970. The Acting Secretary
stated that Crescent Bay Properties had granted the Agency an interim
extension to January 31st end that they would consider an additional
extension. Mr. Barnard moved, seconded by Mr. Harding, that the Agency
request an extension of time from Crescent Bay Properties to March 15,
with the understanding that the Agency had been granted an extension
to January 31, 1970. The motion carried with the following roll call
vote:
AYES:
NOES:
ABSENT:
MEMBERS:
MEMBERS:
MEMBERS:
Schimmer. Barnard, Connelly, Fach, Harding, Richey, Whiting
None
None
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Page Three
Minutes - 1/13/70
Annual Election of Chairman and Chairman Pro-Tern
The Chairman announced that, in accordance with Agency By-Laws,
nominations for Chairman and Chairman Pro-Tern were now in order. The
Chairman then nominated Mr. B. Thomas Barnard for Chairman. Mr. Harding
seconded the nomination, stating in addition that the Agency owed
Mr. Schimmer a debt of gratitude for his many years of devoted service
to the Agency. Mr. Barnard supported Mr. Harding1s statement, adding
that Mr. Schimmer had done an outstanding job. Mr. Schimmer moved,
seconded by Mr. Connelly, that the nominations for Chairman be closed
and that Mr. B. Thomas Barnard be ejected Chairman of the Agency. The
motion carried with a unanimous voice vote. Mr. Harding then nominated
Mr. J. Lee Schimmer for Chairman Pro-Tern. The nomination was seconded
by Mr. Richey. Mr. Whiting nominated Mr. L. Wayne Harding for Chairman
Pro-Tern. Mr. Harding declined the nomination, stating that his other
civic and business commitments would not allow him sufficient time to
serve In that capacity. Mr. Richey moved, seconded by Mr. whiting,
that nominations for ChaIrman Pro-Tern be closed and that Mr. Schlmmer
be elected Chairman Pro-Tem of the Agency. The motion carried with a
unanimous voice vote.
Executive ,Session - Personnel
The ChaIrman declared the meeting adjourned into an E~ecutive
Session, to discuss personnel matters. The meeting adjourned at 5:15 P.M.
Mr. Fach left during the Executive Session, at 6:15 P.M.
The meeting reconvened at 6:55 P.M.
Advertisement for Agency Executive Director
Formal advertisement for the position of Executive Director was
discussed by the Agency Members. Mr. Richey moved, seconded by
Mr. Harding, that the Agency run concurrent advertisements in the
Los Anqeles Times, Wall Street Journal, EveninQ Outlook and the
J~urnal of Housinq for the position of Executive Director. The
motion carried with the following roll call vote:
AVES:
NOES:
ABSENT:
MEMBERS:
MEMBERS:
MEMBERS:
Barnard, Connelly, Harding, Richey, Schlmmer. Whiting
None
Fach
A Personnel Committee of three Members - Mr. Connelly, Mr. Fach
and Mr. Richey - was appointed by the Chairman to secure and process
the applications.
freJlminary Proposals - Reuse Appraisal
The Acting Secretary reported that proposals for a reuse appraisal
on all of the remaining disposition parcels in both Projects l(a) and
I (b) had been received from each of the four firms ((I) Conger & Fisk,
(2) Paul Schumacher, (3) David Ashton, of Ashton Associates, and (4)
Shattuck Company) recommended by the Dept. of Housing and urban Develop-
ment. The Acting Secretary recommended selection of the proposal
submitted by Mr. David Ashton, of Ashton Associates. based on his low
bid of $3,000 and 50-day completion schedule. Mr. Schimmer moved,
seconded by Mr. Whiting, that the Agency select Ashton Associates to
proceed with the reuse appraisal for Projects I(a) and I(b). The
motion carried with the following roll call vote:
AYES:
NOES:
ABSENT:
MEMBERS:
MEMBERS:
MEMBERS:
Barnard, Connelly, Harding, Richey. Schimmer, Whiting
None
Fach
There being no further business to be brought before the Members,
Mr. Richey moved, seconded by Mr. Connelly, that the meeting be adjourned.
The motion carried with a unanimous voice vote. The meeting adjourned at
7:20 P.M.
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