Housing Minutes 05-08-20070 0
MINUTES OF THE REGULAR MEETING
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
MAY 8, 2007
President Tran called the Regular Meeting of the Rosemead Housing Development
Corporation to order at 7:50 p.m. in the Conference Room of City Hall, 8838 E. Valley
Boulevard, Rosemead, California. The pledge to the flag and invocation were waived as
having been completed during the meeting just adjourned.
ROLL CALL OF OFFICERS:
Present: Director Clark, Low, Taylor, Vice-President Nunez, President Tran
Absent: None
The Rosemead Housing Development Corporation recessed at 7:51 pm to reconvene
after the City Council Meeting. The meeting reconvened at 12:35 am.
1. PUBLIC COMMENTS FROM THE AUDIENCE - None
2. CONSENT CALENDAR
A. Minutes
April 24, 2007 - Regular Meeting
B. Approval of Contract with Mayer Hoffman McCann, P.C. for Fiscal
Year2007
The California Government Code requires that an independent audit of the
City of Rosemead's records, books, and inventories be conducted and a
report issued thereon.
The services provided by the independent auditor are to support the City's
reporting function as well as to provide ongoing technical support when
necessary. The current contract with McGladrey & Pullen ended after
audit services for fiscal year ending June 30, 2006 were completed. The
City spent $89,100 for audit services performed by McGladrey & Pullen for
fiscal year 2006.
On April 24, 2007 the City Council authorized the City Manager to seek
proposals to contract with new public accounting firm to perform the
annual audits of the financial statements of the City of Rosemead, the
Rosemead Community Development Commission, and the Rosemead
Housing Development Corporation. In addition, the accounting firm will
also perform the audit to satisfy the requirement imposed by the Single
Audit Act and U.S Office of Management and Budget (OMB Circular A-
133). City staff requested proposals from five well established, full service
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independent accounting firms with municipality specialization including
McGladrey & Pullen.
Each firm was evaluated based on the competitive selection process, in
which the evaluation of proposals was not limited to price alone. Audit
service proposal pricing ranged from $44,610 to $73,300, with only $390
separating the two lowest bids. Each Firm demonstrated strong technical
experience auditing similar entities, performing the types of work outlined,
and the ability to provide ongoing technical support when necessary.
However, a critical factor in the overall rating was the firms' commitment to
the internal control review process and ongoing consultative support. The
proposal of $45,000 from Mayer Hoffman McCann, not only addressed
their reporting of the internal control matters of significant deficiency or
material weakness by letter to the City Council, but also included the
preparation of a letter to City management with other recommendations
from their review of internal control procedures. City staff views this benefit
as significant due to numerous staff and operational changes throughout
the City which may have a direct impact on internal controls. The proposal
also included a provision for additional client training at their annual client
training conference. Further, the proposal reiterated that the firm's policy is
to provide unlimited telephone consultations to their municipal clients
regarding accounting and other technical matters. The selection of Mayer
Hoffman McCann will result in a $28,300 cost savings in audit fees.
Recommendation: That the City Council authorize the Mayor to execute
a contract with the public accounting firm of Mayer Hoffman McCann, P.C.
to perform the annual audits of the financial statements of the City of
Rosemead, the Rosemead Community Development Commission, and the
Rosemead Housing Development Corporation for the amount of $45,000..
D. HDC Attorney Contract Agreement
On April 3, 2007, the City Council hired Bonifacio "Bonny" Garcia of
Garcia, Calderon, and Ruiz (GCR) to serve as Rosemead's official legal
council. Based on that action, staff has received a contract agreement
from GCR to perform legal council services for the Housing Development
Corporation. Under the proposed contract, the Housing Development
Commission would compensate GCR for basic legal services, including
travel time, at the hourly rate of $215/hour for partners and associates,
$150/hour for law clerks, and $125/hour for paralegals.
Recommendation: That the Housing Development Corporation approve
the proposed agreement for Attorney services with GCR.
Director Taylor made a motion, with a second by Vice- President Nunez to approve the
aforementioned Consent Calendar items A, B, and D. Voted resulted:
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Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Abstain: None
Absent: None
C. Review and Approval of Contract with City of Rosemead for
Implementation of Certain Home Funded Programs
The City of Rosemead is required to commit its HOME funds for particular
affordable housing activities within 24 months after HUD's appropriation of
the entitlement allocation. To comply with this requirement, the City
desires to contract with the Rosemead Housing Development Corporation
(RHDC) to administer certain HOME funded programs.
Recommendation: That the Board take the following actions:
1. Approve a contract with the City of Rosemead for the implementation
of:
• Residential Rehabilitation Program - $200,000,
• Mortgage Assistance Program - $150, 000,
• Garvey Housing Revitalization Project - $ 1,959, 456, and
• Tenant-Based Rental Assistance (TBRA) Program - $ 511,719; and
2. Authorize the President to execute the contract on behalf of RHDC.
Vice-President Nunez made a motion, with a second by Director Low to approve the
aforementioned consent calendar item C. Voted resulted:
Yes: Low, Nunez, Tran
No: Clark, Taylor
Abstain: None
Absent: None
3. MATTERS FROM THE PRESIDENT & DIRECTORS- None
4. MATTERS FROM THE EXECUTIVE DIRECTOR & STAFF- None
5. ADJOURNMENT
There being no further action at this time the meeting adjourned at 12:40 am.
Res ectfully submitted:
Corporation Secretary
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
0
I, Nina Castruita, Agency Secretary of the City of Rosemead Housing
Development Corporation, do hereby certify that the minutes from May 8, 2007 were
duly and regularly approved and adopted by the Rosemead Housing Development
Corporation on the 12th of June, 2007, by the following vote to wit:
Yes: Clark, Low, Nunez, Taylor, Tran
No: None
Absent:: None
Abstain: None
~ t' A- " 0, un"
Nina Castruita
Agency Secretary