regular meeting · 2010. 5. 12. · 18716 oxnard street, tarzana, california 91356 phone: (8 18) 88...

REGULAR MEETING

INLAND VALLEY DEVELOPMENT AGENCY

A regional joint powers authority dedicated to the reuse of Norton Air Force Base for the economic benefit of the East Valley

WEDNESDAY MAY 12, 2010

3:00 P.M.

(The IVDA Meeting is anticipated to start no earlier than 3:30 P.M.)

Lorna Linda City Hall Council Chambers 25541 Barton Road

Lorna Linda, California

AGENDA

A. CALL TO ORDER

B. ROLLCALL

C. ITEMS TO BE ADDED OR DELETED

D. CONFLICT OF INTEREST DISCLOSUREfTNFORMATIONAL ITEMS

1. Note agenda item contractors and subcontractors which may reqUIre

member abstentions due to possible conflicts of interest.

2. Informational Items

Page · 1-

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IVDA

E. BOARD CONSENT ITEMS

The following consent items are expected to be routine and non-controversial and will be

acted upon by the Board at one time under unless the Board directs that an item be held for

further discussion under DEFERRED ITEMS G.

3. Receive Register of Demands

4. Receive and File Cash Report for March 31, 20 I 0, for the Inland Valley

Development Agency (IVDA)

5. Receive and File Third Quarter Financial Report (July I , 2009 - March 31 ,

2010) for the Inland Valley Development Agency (IVDA)

6. Authorize a Special Engagement and Expenditure for Certain Professional

Services with Rogers, Anderson, Malody & Scott, LLP in an Amount Not

to Exceed $12,000 for Special Compliance Audit Services

ACTION ON CONSENT CALENDAR

F. BOARD DISCUSSION ITEMS

7. Adopt Resolution No. 2010-03 of the Inland Valley Development Agency

(IVDA) (I) Making Certain Findings and Determinations and Consenting to

Payments for Public Improvements by the IVDA Pursuant to Health &

Safety Code Section 33445 Related to Certain Airport Capital

Improvements; and, (2) Authorizing Expenditures in an Amount Not to

Exceed $5,950,000 for the Airport Terminal Renovation Project and Certain

Airport Capital Improvements

G. ADDED AND DEFERRED ITEMS

H. PUBLIC COMMENT

I. CLOSED SESSION

8. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8

Property: Norton Air Force Base (excluding Airport areas)

Page -2-

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IVDA

Negotiating Parties: Philip H. Mook, Jr. on behalf of the United States Air Force Donald L. Rogers, Executive Director, on behalf of the IVDA

Under negotiations: Instruction will be given to the IVDA negotiator concerning price and terms of payment for acquisition of all or portions of available areas on Norton Air Force Base

9. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8

Property: 1111 E. Mill Street, San Bernardino, California Former Department of Finance and Accounting Services (DFAS) Facility, Building No.1, 2nd Floor

Negotiating Parties: David H. Slaughter, Director, on behalf of Real Estate Services Department, County of San Bernardino Michael Burrows, Assistant Director, on behalf of the IVDA

Under negotiations: Instruction will be given to the IVDA negotiator concerning lease terms and conditions in the above referenced property

10. Conference with Legal Counsel - Anticipated Litigation. There is significant exposure to litigation pursuant to Government Code Section 54956.9(b): one case.

J. ADJOURN MEETING

Inland Valley Development Agency (IVDA) Board meetings are aired on City of San Bernardino Access Channel 3 at 6:00 p.m. on the Monday following the Board meeting and at 2:00 p.m. on the Wednesday following the Board meeting. Copies of the reports or other written documentation relating to each agenda item described in Section E. and Section F. above will be provided at the meeting and are on file in the office of the Clerk of the Board, 294 S. Leland Norton Way, Suite 1, San Bernardino, California. They are available for public inspection during regular office hours which are 8:00 a.m. to 5:00 p.m .• Monday through Friday. This agenda was posted in accordance with applicable State law. In compliance with the Americans with Disabilities Act. if you need special assistance to participate in this meeting. please contact the Inland Valley Development Agency office at (909) 382-4100. Notification 48 hours prior to the meeting will enable IVDA staff to make reasonable arrangements to ensure accessibility to this meeting.

Page -3-

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TO: Inland Valley Development Agency Board

FROM: Kelly Berry, Director ofInformation Services I Clerk of the Board

DATE: May 12,2010

SUBJECT: POSSIBLE CONFLICT OF INTEREST ISSUES FOR THE INLAND VALLEY DEVELOPMENT AGENCY (IVDA) BOARD MEETING OF MAY 12,2010

RECOMMENDED ACTION:

Receive for information only.

FINANCIAL IMPACT:

None.

BACKGROUND AND COMMENTS:

[n addition to other provisions of law which prohibit Inland Valley Development Agency (IVDA) Board Members from having financial interests in the contracts of public agencies, the provisions of Government Code Section 84308 prohibit individual IVDA Board Members from participating in any Board proceeding involving a license, permit, or other entitlement for use pending before the Board, if the individual member has received a contribution of more than two hundred fifty dollars ($250.00) within the preceding twelve (12) months or for three (3) months following any such Board proceeding, from any person, company or entity who is the subject of the proceeding or from any person who actively supports or opposes a particular decision in the proceeding and who has a financial interest in such decision, as defined in California Government Code Section 87103 . The restrictions of Government Code Section 84308 do not apply, if the individual member returns the contribution within thirty (30) days from the time he or she knows, or should have known, about the contribution and the proceeding. This agenda contains recommendations for action relative to the following contractors/principals and their respective subcontractors (as informed by the Principals):

Agenda Item No.

6.

Contractors/ Subcontractors Principals Principals

Rogers', Anderson. Malody & Scott, LLP None. Partners: Jay H. Zercher Phillip H. Waller Brenda L. OdIe

J:\Agcndal20 1 0\05 121 O\CONFLlCTS.doc ITEM NO. 1

6. (continued) Terry P. Shea Kirk A. Franks Matthew B. Wilson Scott W. Manno Leena Shanbhag Associates: Nancy O' Rafferty Bradferd A. Welebir Jenny Liu Timothy P. Horn Katie L. Millsom John J. Badia Jonathan R. Kuhn Papa Matar Thiaw

• Donald L. Rogers has no economic interest in the accounting finn Rogers, Anderson, Malody & Scott, LLP.

7.

7.

7.

Norton Development Company, LLC Scot Spencer, Manager Milford Harrison, Manager Tristar-Norton Holdings, LLC, Shareholder Omni Enterprises, LLC, Shareholder Tiger Holdings, LLC, Shareholder

SBD Properties, LLC Scot Spencer, Manager Milford Harrison, Manager Carole Leider, Secretary Tristar-Norton Holding, LLC Tiger Enterprises, LLC Three Quarter, LLC Omni Enterprises, LLC

First American Fund Control, Inc. Alan P. Bochenek, Senior Vice President Chief Inspector Janice Yeh, Senior Vice President, General Manager James L. Rollings, President David C. Hunter, Secretary

1:lAgcnda\20 1 0105 121 OICONFLlCfS.doc

See attached li sts.

None.

None.

ITEM NO. la

Norton Development Company, LLC - Terminal Reconstruction Project

Aero Pro, LLC Chief Executive Officer: Joe Eruchlovich President: Michael Allen Vice President: Catherine Druin

Bogh Construction Inc. and Bogh Engineering, Inc. , a joint venture 40 1 W. 4th Street, Beaumont, CA 92223 Phone: (95 1) 845-4607 President: Mark Bogh Chief Executive Officer: Allen Bogh

J .R. Miller & Associates, Inc. CEO/President: James Mi ller CFO: Shelley DeiCrogna1e Principal Architect: Dan Bianco Principal Structural Engineeer: Wil Hanna Principal Architect: Clark Davis Project Manager: Howard Hong

NBI General Contractors, Inc 1770 Howard Place, Redlands, CA 92373 Phone: (909) 798-73 00 President: James Peter O'Hara

Ollivier Corporation President: Joel Rakow Vice President: Dave Balcorta Vice President: Eric Loincano

SASCO 2750 Moore Avenue, Fullerton, CA 92833 Phone: (71 4) 870-02 17 Chief Executive Officer: Larry Smead Secretary/Treasurer: Milton Greene Assistant Secretary: Jerry Jordan Group President: Lowell Dingman

TranSystems Corporation 6700 E. Pacific Coast Hwy, Ste. 201 , Long Beach, CA 90803 Phone: (562) 594-6974 Director of Operations: Steve Schmucker Vice President: Steve Silver Assistant Vice President: Mark Gri ffi n

T. Viole ' Construction Co., Inc. 18716 Oxnard Street, Tarzana, California 9 1356 Phone: (8 18) 88 1-881 0 Chairman: Timothy L. Viole' President: John F. Kurzeka

NORTON DEVELOPM ENT COMPANY, LLC TERMINAL RECONSTRUCTION PROJECT

1:\ WORD DOC\2009\K ell y\Con n i ct L iSls\Norton Dcvclopmcnt\Norton Dcve 1 opmen t _T eml i nal Subs I 20709. doc December 7, 2009

Norton Development Company, LLC - Terminal Reconstruction Project Continued

Acoustical Material Services 456 Industri al Road San Bernardino, CA 92408-37 16 Phone: (562) 447-2735

Ahern Rentals, Inc. 1722 West Bonanza Road Las Vegas, NY 89 106

All Ways Electric, Inc. 15 164- 1/2 Stagg Street Van Nuys, CA 91405 Phone (8 18) 996-9933

Axima Airport Svcs Bos Inc. 4620 C Proximity Dr 550 Sherbrooke St W B400 Louisvi lle, KY 40213 Montreal, QC H3AIB9

California Wholesale Material Supply, LLC Dba CALPLY, CAL-WAL Gypsum Supply 8535 E. Florence Ave. Ste. 100 Downey, CA 90240

Diaz Yourman & Associates 16 16 E. 17'h Street Santa Ana, CA 92705

Hillwood & San Bernardino, LLC 105 N. Leland Norton Way #3 San Bernardino, CA 92408-0 125

NBI General Contractors Inc. 1770 Howard PI Red lands. CA 92373 -8090 Phone: (909)798-73 00

Quinn Rental Services 3359 Pomona Blvd. Pomona, CA 91766

RJ. Allen, Inc. 10392 Stanford Avenue Garden Grove, CA 92840

NORTON DEVELOPMENT COMPANY, LLC - T ERMINAL RECONSTRUCTION PROJECT CONTINUED

1:\LOG\Clcrk Log\20 Day Nolices\SBIAA\Norton Deve lopment 20 Day Noticcs\NortonDcvclopmcnt_TerminaISubs_20 DUL 122309.doc


SASCO 2750 Moore Ave. Fullerton, CA 92833

Shangri-La Construction 1075 Hamilton Rd. Duarte, CA 910 I 0 Phone (626) 357-7170

Sierra Pacific General Corp. Sierra Pacific General Contractors 115 W. Linden Ct Burbank, CA 9 1502

Thompson Building Materials P.O. Box 950 Fontana, CA 92334-0950 Phone: (909)350-3000

United Rentals Northwest Inc. 450 Glass Ln #C Modesto, CA 95356

West Coast Storm 654 S. Lincoln Ave. San Bernardino, CA 92408-2229

Zaun Glass Co., Inc. 1218 W. Magnolia Burbank, CA 91506

NORTON DEVELOPMENT COMPANY, LLC - TERMINAL RECONSTRUCTION PROJECT CONTINUED

I: \LOG\Clcrk Log\20 Day NOlices\SBIAA\Norton Development 20 Day Noticcs\NortonDcve]opmcnt __ rcnn inaISubs_20 DaL 122309.doc


Alert Insulation

Arconas Corporation

ARINC Incorporated

Armstrong Demolition Inc.

BEC Electrical

Bell Roofing

Bertino Manufacturing

Bogh Construction Inc. and Bogh Engineering, Inc., a joint venture 40 I W. 4th Street, Beaumont, CA 92223 Phone: (95 1) 845-4607 President: Mark Bogh Chief Executive Officer: Allen Bogh

California Electrical Consulting and Design, Inc. 6477 EI Paseo St. , Long Beach, CA 908 15 Neil T. Foster, EE, President Shane M. Foster, BSEE, VP

Canyon Ridge Contract

Caston Plastering & Drywall

Clean Craft Inc.

Concepts Plus LLC

Corradini Corp

Couts Heating & Cooling

D & D Painting

David Ollis Landscaping

Diaz Yourman & Associates 1616 E. 17th Street Santa Ana, CA 92705

NORTON DEVELOPMENT COMPANY. LLC - TERMINAL RECONSTRUCTION PROJECT CONTINUED

I : \ WO R DD0C\1009\Kcll y\Con n iet Lists\Norton Dcvc 1 opmcnt\Norton Dcvc topmen t _120709 . doc fc


Direct AN

Division Systems

Donnelly Design

E & R Glass Contractors

East Island Aviation Services, Inc.

Econo Fence

Electrical Cnsltng & Design

Electrolurgy MFG Inc.

Euro Metal Art Studio

Facilities Protection

Facilities Protection Systems

Facilities Systems

Federal APD

Fence Corp Inc.

First American Fund Control, Inc. 200 Commerce, Irvine, CA 92602 Alan P. Bochenek, Senior Vice President, Chief Inspector Janice Yeh, Senior Vice President, General Manager James L. Rollings, President David C. Hunter, Secretary

Fischer, Inc.

Fisher Inc.

Forms & Surfaces

G & S Mechanical

G E Kasler Masonry

NORTON DEVELOPMENT COMPANY. LLC TERMINAL RECONSTRUCTION PROJECT CONTINUED

1:\ WOR0D0a2009\Kclly\Connict Li sts\Norton Dcvclopmcnt\NononDcvc lopmcllt_ 120709.doc fc


G.E. Kasler

Galvan's Place & Finish

Gerco Contracting Inc.

GKKWorks 204 11 SW Birch St, Ste 300, Newport Beach, CA 92660 Praful M. Kulkarni , President David Hunt, Vice President Juan Caldenty, Program Director

Inland Empire Architectural Specialties, Inc

Innovative Electronic Designs

International Pavement S

JH Concrete

John Bean Technologies Corp/JS

Joseph E Bonadiman/Asso.

JR Miller & Associates

KCB Towers Inc.

Lawrence R Karr

Marble & Granite Creations

Martin Integrated

Matich Corporation PO Box 50000, San Bernardino, CA 92412 Martin A. Mati ch, Chairman Stephen A. Matich, Pres ident Roy I-\, Hays, Executive VP Randall S. Valadez, VP/Treasurer Patrick A. Matich, VP/Secretary Robert M. Matich, VP Eugene P. Boisvert, VP Wayne Hendrix, VP

McKeon Door West Inc

NORTON DEVELOPMENT COMPANY, LLC - TERMINAL RECONSTRUCTION PROJECT CONTINUED

I : \ WO R DD0C\2009\K el J y\Coll f1 iet L isIs \N orton Devc !opmcnt\Norton Deve loprncnl_120709. doc rc


MGG Services

Million Air Interlink

Moore Flooring

Morrison & Foerster

M-Techs

Mulvihill Construction

Nationwide Conveyor Specialist

NBI General Contractors, Inc 1770 Howard Place, Redlands, CA 92373 Phone: (909) 798-7300 President: James Peter O' Hara

Norton Development Company, LLC Scot Spencer, Manager Milford Harrison, Manager Tristar-Norton Holdings, LLC, Shareholder Omni Enterprises, LLC, Shareholder Tiger Holdings, LLC, Shareholder

Ollivier Corporation

Pagel Fire Protection

PHC Industries

PLCO Incorp.

SASCO, Inc. 2750 Moore Avenue, Fullerton, CA 92833 Phone: (714) 870-0217 Chief Executive Officer: Larry Smead Secretary([reasurer: Milton Greene Assistant Secretary: Jerry Jordan Group President: Lowell Dingman

SBD Aircraft Services, LLC 255 S. Leland Norton Way, San Bernardino, CA 92408 Scot Spencer, Manager

NORTON DEVELOPMENT COMPANY, LLC - TERMINAL RECONSTRUCTION PRO,fECT CONTINUED

1:\ WORDD0C\2009\Kcl [y\Connict Li sls\Norton Dcvclopmcnt\NortonDcvc lopmcnl_120709.doc fc


T. Milford Harrison, Manager Tristar Norton Holding, LLC George Warde Convair Aviation, LLC Omni Enterprises, LLC

Schindler Elevator Corporation 20 Whippany Road Morristown, NJ 07962-1935

Sierra Pacific General Corp. 11 5 W. Linden Ct Burbank, CA 91502

Sita Info Ntwrkng Computing US

St. Martin Construction Inc.

Stan Shoffiet Masonry

TranSystems Corporation 6700 E. Pacific Coast Hwy, Ste. 20 I , Long Beach, CA 90803 Phone: (562) 594-6974 Director of Operations: Steve Schmucker Vice President: Steve Silver Assistant Vice Pres ident: Mark Griffin

Trinity Valley Erectors

Trinity Valley Erectors/Jetway Corp

United Interiors

Vomar Products

West Coast Storm 654 S. Lincoln Ave. San Bernardino, CA 92408-2229

Wright-Line

Zaun Glass Co., Inc. 12 18 W. Magnolia Burbank, CA

NORTON DEVELOPMENT COMPANY. LLC TERMINAL RECONSTRUCTION PROJECT CONTINUED

1:\ WORDD0C\2009\Kcll y\Con Oi ct Lists\Norton Dcyc]opmcnt\NortonDevc lopmcnt_ 120709.doc rc


FROM: Donald L. Rogers, Executive Director

DATE: May 12, 2010

SUBJECT: INFORMATIONAL ITEMS

RECOMMENDED ACTION:

Receive for information.

FINANCIAL IMPACT:

None.


An oral report may be made at the Board Meeting, as necessary.

1 :\AGENDA \20 10105 121 OIINFO.DOC ITEM NO.2


FROM: Martin F. Romeo, Chief Financial Officer

DATE: May 12,2010

SUBJECT: RECEIVE REGISTER OF DEMANDS

RECOMMENDED ACTION:

Receive for information.

FINANCIAL IMPACT:

Various accounts as shown.


1:IAGENDAI20 1 0105 121 OIROD.DOC ITEM NO.3

Inland Valley Development Agency Register of Demands For Board Meeting

May 12,2010

COMPANY NAME DESCRIPTION AlP Register AlP Register AlP Register

Informational Item: AECOM Professional Services 1,268.11 Alex Estrada Travel Reimbursement 66.00 Angies Plants Enterprise Zone 99.19 Apple One Payroll Temporary Employment 1,673.60 Arrowhead Consulting Inc Professional Service 7,200.00 ATT Telephone Service 2,045.96 Board Members Directors Fees 1,200.00 Calif. Chamber of Commerce Dues and Subscriptions 300.00

Calif Electrical Consulting and Professional Services - 21 ,183.28 Design DFAS Calif Newspaper Service Advertising 545.60 City of Highland Good Movement - 3rd & 5th 171 ,629.27

City of San Bernardino Waste Refuse 364.62 Management City of San Bernardino Water Water Consumption I 6,418.44 Dept. Permits Coldwell Banker Commercial Professional Services 15,731 .51

Cooley Construction GM - 3rd and 5th 60,168.44 County of San Bernardino SERAF 10,077,639.00 Auditor David Evans GM - Lena Road 36,425.42 Desmond McLeish Inc Enterprise Zone 3,473.65 Dodson and Associates Professional Services 10,632.00 Falcon Associates Inc Advertising 75.00 Gas Co. Gas Consumption 672.60 Hillcrest Good Movement - Lena Rd 164,964.24 Hiltons Flowers and Gifts Office Supplies 174.01 Inland Empire Media Group Telecommunications 537.00 Inland Action Dues and Subscriptions 1 053.42 I nmark Stamp Co Office Supplies 48.95 Lewis Brisbois Bisgaard Legal Services 39,905.64 Michael Burrows Travel Reimbursement 566.02 Mission Infrastructures Group Professional Services 4,790.00 Mission Reprographs Renditions 3,216.31 MSL Electric Professional Services 25,514.00 Myriam Beltran Per Diem 200.00 NetComp Technologies Computer Maintenance and 8,886.36

Repair OCB Reprographics Renditions 170.04 PACE Professional Services/EDA 26,353.00

Lakes and Streams

POBA Courier Service 113.65

Miarod10 revised 51612010


May 12,2010

RAMS Auditing Service 337.50 R S &E Professional Services 3487.50 Rogers Development Corp Professional Services 12,843.75 Rosenow Spevek Professional Services 1 237.50 San Bernardino International Grant Operations 612,400.00 Airport SCAG BiQ Bear Study 62 ,500.00 Sunwest PrintinQ PrintinQ 260.51 US Bank Tax Increment 2,432 ,682.47 Verizon Calif Phone Service 424.20 Verizon Conferencinq Phone Service 22.82 Wayne Hendrix Professional Service 4 ,117.50 Wendy Clements Educational 200.00

Reimbursements TOTAL $ 13,825,818.08 $ - $ -

ivdarodl0 2 revised 51612010


May 12,2010

MAINTENANCE DIVISION COMPANY NAME DESCRIPTION AlP Register AlP Register AlP Register

5/1/2010 AlC Mechanical HVAC Services 6,790.73 CED Building Maintenance and 349.57

Repair Colton Truck Supply Vehicle Maintenance and 516.86

Supplies Dibs Building Maintenance and 615.35

Repair Fairview Ford Vehicle Maintenance and 173.64

Supplies Grainger Grounds Maintenance and 274.64

Supplies Hose-Mart Vehicle Maintenance and 524.55

Supplies Inland Auto Supply Vehicle Maintenance and 752.53

Supplies Interstate Battery Vehicle Maintenance and 226.31

Supplies Joes Lawnmower Service Grounds Maintenance and 283.25

Supplies Leland Nursery Grounds Maintenance and 294 .30

Supplies Mill St Auto Body Vehicle Maintenance and 1,911.72

Supplies Patton Sales Corp Grounds Maintenance and 60.17

Supplies Pete's Roadside Service Vehicle Maintenance and 262.09

Supplies Rel iable Resources Inc Grounds Maintenance and 2,880.00

Supplies SCE Electrical Services 959.61 Waxie Janitorial 881 .66 TOTAL $ 17 756.98 $ - $ -

GRAND TOTAL FOR ALL REGISTERS I I $ 13,843,575.06 I

ivdarod10 3 revised 5161201 0


FROM: Martin Romeo, Chief Financial Officer

DATE: May 12, 2010

SUBJECT: RECEIVE AND FILE CASH REPORT FOR MARCH 31, 2010, FOR THE INLAND V ALLEY DEVELOPMENT AGENCY (IVDA)

RECOMMENDED ACTION:

Receive and file Cash Report for March 31 , 2010, for the Inland Valley Development Agency (lVDA).

FINANCIAL IMPACT:

None.


Attached is the Cash Report for March 31 , 20 I 0 for the Inland Valley Development Agency (IVDA). Total cash being held by the financial institutions for the IVDA on March 31 , 2010 is $37,656,340 with a book cash balance of$37,622,395. The difference between the two numbers is related to the outstanding checks and the deposits in transit at March 31 , 20 I O.

If you have any questions about this report, please contact me at (909) 382-4100 extension 240.

Staff recommends the Board approve the recommended action as set forth above.

1:IAGENDAI20 I 0105 121 OICash Repon mar 20 1 O. doc ITEM NO. 4

Inland Valley Development Agency

Cash Report

March 31 , 2010

Balance Balance lillh 02128110 Increases Decreases 03131110

Parent Checking Account · Citiz&ns Business Bank S 100,000 S 13,911 ,565 • 13,911 ,565 S 100,000 Deposits In Transit :

Beginning 25 (25) Ending

Timing Differences: Investment Sweep 9,011 ,550 (301.158) (13,374,580) 22,084,972

Checking Account· Citiz&ns Business Bank 710,746 491 ,208 745,164 456,790 Deposils In Transit:

Beginning Ending

Outstanding Checks: Beginning (287,432) (287,432) Ending 33,140 (33,140)

P,yroff Account· Citizens BusiMSS Bank 3,135 53,790 5-4,975 1,950 Deposits In Transit:

Beginning Ending

Outstanding Checks: BegiMing (652) (652) Ending 806 (806)

Subtotal 9,537,373 14,155,380 1.082,986 22,609,767

Investments Loc,1 Agency Investment Funds · Rttgula' Account 2,737,550 2,737,550

Deposits In Transit: Beginning Ending

Local Agency Investment Funds· Bond Account 108,994 108,994 Deposits In Transit:

Beginning Ending

Subtotal 2,846,544 2,846,544

InY:e:l!tme;n1§ Hglg With Fjs~1 Ag~nl Rev&nue Fund General Account· US Bank -1997 S&ries 17,980,016 238,363 18,117,328 101 ,051

Deposits In Transit: Beginning Ending

Revenue Fund Reserv& Account· US Bank · 1997 series 3,430,344 3,430,344 Deposits In Transit:

Beginning Ending

Revenue Fund Account· US Bank· 2009 series 70 5,802,965 5,803,035 Deposits tn Transit:

Beginning Ending

Interest Fund Account· US Bank· 2009 series 16,905 , 16,909 Deposits In Transit:

Beginning Ending

Res&rve Fund Account · US Bank · 2009 SttrittS 2,768,500 46,245 2,814,745 Deposits In Transit:

Beginning Ending

Subtotal 24,195,835 6,087,577 18.117,328 12.166,084

Total Cash and Investments S 36,579,752 • 20,242.957 S 19,200,314 S 37,622,395


FROM: Martin Romeo, Chief Financial Officer

DATE: May 12,20 10

SUBJECT: RECEIVE AND FILE THIRD QUARTER FINANCIAL REPORT (JULY 1, 2009 THROUGH MARCH 31, 2010) FOR THE INLAND VALLEY DEVELOPMENT AGENCY (IVDA)

RECOMMENDED ACTION:

Receive and file mid-year financial report (July 1,2009 through March 31, 2010) for the Inland Valley Development Agency (IVDA).

FINANCIAL IMPACT:

None.


The Inland Valley Development Agency (IVDA) third quarter profit and loss report is for the period July 1, 2009 through March 31,20 I O. Attached are the third quarter revenue and expense Reports for the Capital Project Fund, Debt Service Fund, Low and Moderate Income Housing Fund and Sewer Fund.

The Capital Project Fund shows an excess of expenditures over revenues of $17,021,306.17 for the third quarter of the fiscal year. The primary reason for this is due to the expenses related to the San Bernardino International Airport Authority' s development.

The Debt Service Fund shows an excess of revenues over expenditures of $2,685 ,300.89 in the third quarter of the fiscal year. This is due to favorable interest rates for debt service on Agency bonds and loans in the third quarter.

The Low and Moderate Income Fund show excess of expenditures over revenues of $3 ,463 ,818.95 in the third quarter of the fiscal year.

The Sewer Fund shows a net income of$3,737.52 in the third quarter of the fiscal year.


1:\AGENDA\201 0\05 t 21 O\Financial Report 3rd qrt 3-3\ -\ O.doc ITEM NO.5

INLAND VALLEY DEVELOPMENT AGENCY THIRD QUARTER REVENUE AND EXPENDITURE REPORT - CAPITAL PROJECT FUND

JULY 1, 2009 THROUGH MARCH 31 , 2010

ACTUAL BUDGET VARIANCE OPERATING REVENUE INTEREST INCOME $ 248,060.68 $ 450,000.00 $ (201 ,939.32) MAINTENANCE AND REPAIR FEES 3,750.00 (3,750.00) LEASE BLD 58 112,500.00 (112,500.00) LEASE BLD 190 16,875.54 16,875.00 0.54 LEASE BLD 477 20,000.00 15,000.00 5,000.00 LEASE BLD 932 135,501.02 179,175.00 (43,673.98) LEASE BLD 935 94,254.75 90,750.00 3,504.75 LEASE BLD 935 STORAGE 32,400.00 32,400.00 LEASE BLD 938 85,558.00 85,500.00 58.00 LEASE BLD DFAS 1-2 395,724.00 520,650.00 (124,926.00) OTHER INCOME 37,500.00 (37,500.00) SALE OF PROPERTY Security SVCS Fee 288,033.00 971,025.00 (682,992.00) TOTAL OPERATING REVENUE $ 1,316,406.99 $ 2,515,125.00 $ (1 ,198,718.01)

ADMINISTRATION EXPENDITURES SALARY - ADMINISTRATION $ 641 ,559.26 $ 783,750.00 $ 142,190.74 TEMPORARY EMPLOYEE SERVICES 19,131 .34 15,000.00 (4,131 .34) ADVERTISING 4,712.91 225.00 (4,487.91) MARKETING OUTREACH 10,362.00 1,500,000.00 1,489,638.00 ENTERPRISE ZONE 67,314.60 112,500.00 45,185.40 COMPUTER SUPPLIES AND EXPENSE 12,495.27 37,500.00 25,004.73 DUES AND SUBSCRIPTIONS 5,946.00 6,375.00 429.00 EQUIPMENT MAINTENANCE 125.78 3,750.00 3,624.22 FOOD, CATERING 439.02 750.00 310.98 INSURANCE-GENERAL LIABILITY 221 ,732.78 195,000.00 (26,732.78) PRINTING 8,988.51 2,625.00 (6,363.51) MISCELLANEOUS 23,344.46 12,225.00 (11 ,119.46) OFFICE EXPENSE,SUPPLlES,FORMS 20,095.55 37,500.00 17,404.45 FREIGHT - FEDERAL EXPRESS 1,410.06 1,875.00 464.94 PROFESSIONAL TRAIN ING, SEMINARS 251.58 2,250.00 1,998.42 TELEPHONE 18,546.08 22,500.00 3,953.92 TRAVEL-AIRFARE 3,750.00 3,750.00 TRAVEL-OTHER 395.42 4,500.00 4,104.58 N/G VEHICLE OPERATIONS 225.00 525.00 300.00 TRAVEL - MILEAGE 2,796.67 1,500.00 (1 ,296.67) DIRECTORS FEES 10,100.00 10,425.00 325.00 TOTAL ADMINISTRATION EXPENDITURES $ 1,069,972.29 $ 2,754,525.00 $ 1,684,552.71

1



ACTUAL BUDGET VARIANCE CONSULTING SERVICES CONSULTING - ENVIRONMENTAL $ 20,804.20 $ 37,500.00 $ 16,695.80 CONSULTING - ENGINEERING 20,264.00 112,500.00 92,236.00 CONSULTING - OTHER 123,091 .78 213,750.00 90,658.22 LOBBYING EXPENSE 174,997.22 135,000.00 (39,997.22) APPRAISALS 2,000.00 3,750.00 1,750.00 TITLE 7,500.00 7,500.00 LEGAL 82,620.54 150.000.00 67.379.46 AUDITING/ACCOUNTING SERVICES 115,247.09 45,000.00 (70,24709) TOTAL CONSULTING SERVICES $ 539,024.83 $ 705,000.00 $ 165,975.17

PROPERTY MANAGEMENT MAINTENANCE UNIFORMS $ 4,757.10 $ 5,250.00 $ 492.90 VEHICLE MAINTENANCE 605.00 22,500.00 21 ,895.00 EQUIPMENT INVENTORY 12,168.30 24,000.00 11 ,831 .70 ADMIN SUPPORT 20,704.73 22,275.00 1,570.27 GROUNDS MAINTENANCE 423,187.49 439,200.00 16,012.51 DFAS GROUNDS MAINTENANCE 15,000.00 15,000.00 BUILDING MAINTENANCE 106,084.03 164,850.00 58,765.97 DFAS BUILDING MAINTENANCE 21 ,865.12 45,000.00 23,134.88 DFAS - JANITORIAL 30,531 .52 26,250.00 (4,281 .52) ELECTRICAL USAGE 5,302.83 45,000.00 39,697.17 HVAC 21 ,810.76 20,250.00 (1,560.76) DFAS - HVAC 22,167.00 37,500.00 15,333.00 ENVIRONMENTAL PERMITS 404.00 6,000.00 5,596.00 PEST MANAGEMENT 6,868.43 4,500.00 (2,368.43) REFUSE 10,892.39 21 ,000.00 10,107.61 SECURITY SERGEANT 92,928.18 122,025.00 29,096.82 SECURITY UNIFORMS 1,561 .99 750.00 (811 .99) SECURITY TRAINING 1,000.00 7,500.00 6,500.00 SECURITY SALARIES 342,502.17 535,500.00 192,997.83 SBPD CONTRACT 487,575.00 487,575.00 SECURITY VEHICLES 46,060.66 45,000.00 (1,060.66) DFAS- REFUSE 3,425.07 18,750.00 15,324.93 DFAS - ELECTRICAL 72,820.47 60,000.00 (12,820.47) DFAS - GAS CONSUMPTION 3,656.20 18,750.00 15,093.80 DFAS - WATERIWASTE WATER 11 ,228.04 30,000.00 18,771 .96 TOTAL PROPERTY MANAGEMENT $ 1,262,531.48 $ 2,224,425.00 $ 961 ,893.52

TOTAL OPERATING EXPENDITURES $ 2,871,528.60 $ 5,683,950.00 $ 2,81 2,421.40

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (1 ,555,121 .61) $ (3 ,168,825.00) $ 1,613,703.39

2


JULY 1, 2009 THROUGH MARCH 31, 2010

ACTUAL BUDGET VARIANCE NON OPERATING REVENUES EDA GRANT REVENU ES $ 2,128,697.05 $ 12,182,175.00 $ (10,053,477.95) SAN BAG MEASURE I 2,599,597.35 8,550,000.00 (5,950,402.65) LOAN PROCEEDS 13,500,000.00 15,000,000.00 (1 ,500,000.00) OPERATING TRANSFERS IN DEBT SVC FUND 9,000,000.00 9,000,000.00 TOTAL NON OPERATING REVENUES $ 27,228,294.40 $ 44,732,175.00 $ (17,503,880.60)

NON OPERATING EXPENDITURES EDA WEATHERIZATION $ $ 3,346,200.00 $ 3,346,200.00 EDA DOWNTOWN MITAGATION 232,111 .87 791 ,700.00 559,588.13 PROPERTY ACQUISITION 461 ,799.00 (461 ,799.00) FUEL PIPELINE PROTECTION 5,250.00 5,250.00 PARKING IMPROVEMENTS 1,280,097.22 300,000.00 (980,097.22) STATER BROS. BOND PROCEEDS 33,756.99 (33,756.99) DFAS CODE IMPROVEMENTS 189,512.57 (189,512.57) IVDAlSBIAA FENCING 11 ,250.00 11 ,250.00 EDA GRANT TERMINAL ROAD & PARKING 71,050.10 721,575.00 650,524.90 BUILDING 58 REHAB 13,498.24 150,000.00 136,501 .76 BUILDING 48 REHAB 170,517.45 1,746,750.00 1,576,232.55 SAN BAG ROADS 2,599,597.35 16,500,000.00 13,900,402.65 EDA DEMO AND LANDSCAPE 172,200.93 98,475.00 (73,725.93) EDA FACILITY IMPROVEMENTS 1,886,858.02 1,666,500.00 (220,358.02) SBIAA CAPITAL PROJ ECT 29,930,070.56 20,100,000.00 (9,830,070.56) SBIAA GRANT PROJ MATCHING FUNDS 3,000,000.00 3,992,025.00 992,025.00 SBIAA OPERATIONAL FUNDS 2,612,400.00 2,418,600.00 (193,800.00) EDA 3RD & 5TH 4,500,000.00 4,500,000.00 EDA PAVEMENT REHAB AIRFIELD 3,960,000.00 3,960,000.00 EDA CM PAVEMENT REHAB 2,998.02 417,750.00 414,751 .98 SOUTHGATE DRAINAGE CHANN EL 7,850.00 281 ,250.00 273,400.00 ALABAMA CULVERT 30,160.64 139,500.00 109,339.36 TOTAL NON OPERATING EXPENDITURES $ 42,694,478.96 $ 61 ,146,825.00 $ 18,452,346.04

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (17,021 ,306.17) $ (19,583,475.00) $ 2,562,168.83

3

INLAND VALLEY DEVELOPMENT AGENCY THIRD QUARTER REVENUE AND EXPENDITURE REPORT - DEBT SERVICE FUND

JULY 1, 2009 THROUGH MARCH 31, 2010

ACTUAL BUDGET VARIANCE REVENUE TAX INCREMENT - S.B. AREA $ 10,888,390.52 $12,484,800.00 $ (1 ,596,409.48) TAX INCREMENT - COLTON AREA 308,972.35 529,350.00 (220,377.65) TAX INCREMENT - LOMA LINDA 618,715.05 721 ,500.00 (102,784.95) TAX INCREMENT - UNINCORPORATED 6,267,753.59 7,265,100.00 (997,346.41 ) INTEREST INCOME 107,920.62 300,000.00 (192,07938) TOTAL REVENUE $ 18,191 ,752.13 $21,300,750.00 $ (3,108,997.87)

EXPENDITURES INTEREST AND LOC FEES - BONDS $ 1,219,311 .85 $ 585,000.00 $ (634,311 .85) INTEREST - 2009 BONDS 1,090,050.00 1,090,050.00 INTEREST AND FEES - OTHER 1,603,398.62 2,193,750.00 590,351 .38 TAX INCREMENT PASS THROUGHS 2,098,180.28 3,225,000.00 1,126,819.72 AUDITING & CONSULTING SERVICES 100,560.49 35,250.00 (65,310.49) PRINCIPAL ON BONDS 1997 1,485,000.00 1,113,750.00 (371 ,250.00) PRINCIPAL ON BONDS 2009 3,836,250.00 3,836,250.00 TOTAL EXPENDITURES $ 6,506,451.24 $12,079,050.00 $ 5,572,598.76

NON OPERATING EXPENDITURES OPERATING TRANSFER OUT CAPITAL PROJECT FUND $9,000,000.00 $9,000,000.00 $0.00 TOTAL NON OPERATING EXPENDITURES $9,000,000.00 $9,000,000.00

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 2,685,300.89 $ 221,700.00 $ 2,463,600.89

4

INLAND VALLEY DEVELOPMENT AGENCY THIRD QUARTER REVENUE AND EXPENDITURE REPORT - LOW AND MODERATE INCOME FUND


ACTUAL BUDGET VARIANCE REVENUE TAX INCREMENT - S.B. AREA $ 2,722,097.64 $ 3,121 ,200.00 $ (399, 102.36) TAX INCREMENT - COLTON AREA 77,243.09 132,300.00 (55,056.91 ) TAX INCREMENT - LOMA LINDA 154,678.75 180,375.00 (25,696.25) TAX INCREMENT - UNINCORPORATED 1,566,938.38 1,816,350.00 (249,411 .62) INTEREST INCOME - SB 44,250.00 (44 ,250.00) INTEREST INCOME - COL TON 2,250.00 (2,250.00) INTEREST INCOME - LL 2,250.00 (2,250.00) INTEREST INCOME - UNINC 26,250.00 (26,250.00) TOTAL REVENUE $ 4,520,957.86 $ 5,325,225.00 $ (804,267.14)

ADMINISTRATIVE EXPENDITURES AUDITING SERVICES $ $ 5,250.00 $ 5,250.00 LEGAL & CONSULTING 2,592.00 9,000.00 6,408.00 TOTAL ADMINISTRATIVE EXPENDITURES $ 2,592,00 $ 14,250.00 $ 11 ,658.00

TRANSFERS TO MEMBER AGENCIES TRANSFER PROCEEDS- S.B. $ 5,131 ,060.42 $ 3,157,050.00 $ (1,974,010.42) TRANSFER PROCEEDS -CITY COLTON 208,215.55 134,100.00 (74,115.55) TRANSFER PROCEEDS- LOMA LINDA 182,175.00 182,175.00 TRANSFER PROCEEDS- COUNTY S.B. 2,642,908.84 1,837,650.00 (805,258.84) TOTAL TRANSFER TO MEMBERS $ 7,982,184.81 $ 5,310,975.00 $ (2,671,209.81 )

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ (3,463,818.95) $ $ \3,463,818.95)

5

INLAND VALLEY DEVELOPMENT AGENCY THIRD QUARTER REVENUE AND EXPENSE REPORT - SEWER FUND


ACTUAL BUDGET REVENUE Sewer Consumption Fees $ 82,734.40 $ 67,500.00 $ TOTAL REVENUE $ 82,734.40 $ 67,500.00 $

OPERATING EXPENSES Waste Water Charges $ 45,481.36 $ 50,550.00 $ CONSULTING - OTHER LEGAL TOTAL OPERATING EXPENSES $ 45,481 .36 $ 50,550.00 $

NET INCOME (LOSS) FROM OPERATIONS $ 37,253.04 $ 16,950.00 $

CAPITAL EXPENSES Pumps 853.91 $ 450.00 $ Other Systems Improvements 32,66 1.61 16,500.00 TOTAL CAPITAL EXPENSES $ 33,515.52 $ 16,950.00 $

OTHER SOURCES (USES) OPERATING TRANFERS IN $ $ TOTAL OTHER SOURCES (USES) $ $ $

NET INCOME (LOSS) $ 3,737.52 $ $

6

VARIANCE

15,234.40 15,234.40

5,068.64

5,068.64

20 ,303.04

(403.91 ) (16 ,161.61) (16 ,565.52)

3,737.52


FROM: Donald L. Rogers, Executive Director

DATE: May 12,20 10

SUBJECT: AUTHORIZE A SPECIAL ENGAGEMENT AND EXPENDITURE FOR CERTAIN PROFESSIONAL SERVICES WITH ROGERS, ANDERSON, MALODY & SCOTT, LLP IN AN AMOUNT NOT TO EXCEED $12,000 FOR SPECIAL COMPLIANCE AUDIT SERVICES

RECOMMENDED ACTION:

Authorize a Special Engagement and Expenditure for Certain Professional Services Agreement with Rogers, Anderson, Malody & Scott, LLP in an amount not to exceed $12,000 for Completion of a Special Compliance Audit on the Airport Terminal Renovation and Infrastructure Improvements Project; and authorize the Executive Director or his Designee to Execute the Agreement and all Related Documents.

FINANCIAL IMPACT:

Funding will be provided as a part of the Airport Terminal Renovation and Infrastructure Improvements Project.


The Inland Valley Development Agency (IVDA) is requesting a special engagement with its audit firm Rogers, Anderson, Malody & Scott, LLP (RAMS). These additional services will be related to the completion of a special compliance audit on the balance of work completed as a part of the Airport Terminal Renovation and Infrastructure Improvements Project.

On February 10, 2010, the San Bernardino International Airport Authority (SBIAA) received a special compliance audit report prepared by RAMS detailing a review of all expenses incurred as a part of the San Bernardino International Airport Terminal Renovation Project through June 30, 2009. No significant findings were discovered.

This proposed action would authorize an extension of that effort for review of expenses incurred through June 30, 2010. This special compliance audit and review is being undertaken as a condition precedent to SBIAA acquiring the completed facilities as a part of the Lease Agreement by and between SBIAA and Norton Development Company, LLC.

All fees charged by the auditing team will be based on actual time and materials to perform this special engagement.


1:\AGENDA\20 1 0\05 12 1 O\SpeciaJ Engagement_RAMS rpLdoc ITEM NO. 6


FROM: Bill Ingraham, AAE, Aviation Director

DATE: May 12,20 10

SUBJECT: ADOPT RESOLUTION NO. 2010-03 OF THE INLAND VALLEY DEVELOPMENT AGENCY (IVDA) (1) MAKlNG CERTAIN FINDINGS AND DETERMINATIONS AND CONSENTING TO PAYMENTS FOR PUBLIC IMPROVEMENTS BY THE IVDA PURSUANT TO HEALTH & SAFETY CODE SECTION 33445 RELATED TO CERTAIN AIRPORT CAPIT AL IMPROVEMENTS; AND, (2) AUTHORIZING EXPENDITURES IN AN AMOUNT NOT TO EXCEED $5,950,000 FOR THE AIRPORT TERMINAL RENOVATION PROJECT AND CERTAIN AIRPORT CAPITAL IMPROVEMENTS

RECOMMENDED ACTION:

Adopt Resolution No. 2010-03 of the Inland Valley Development Agency (IVDA) (I) Making Certain Findings and Determinations and Consenting to Payments for Public Improvements by the IVDA Pursuant to Health and Safety Code Section 33445 Related to Certain Airport Capital Improvements; and (2) Authorizing Expenditures in an Amount Not to Exceed $5,950,000 for the San Bernardino Airport Terminal Renovation Project and Certain Airport Capital Improvements.

FINANCIAL IMPACT:

Resolution No. 2010-03 would authorize and direct expenditures on behalf of the San Bernardino International Airport Authority (SBIAA) to be paid from available tax increment revenues or from net loan proceeds of the Inland Valley Development Agency (IVDA) in the maximum amount of $5,950,000, which funds shall be used and applied for the purpose of completing the construction of the Airport Tenninal Renovation Project and Certain Airport Capital Improvements (Terminal Development Projects), as specified below.

All authorized funds are deposited on an "as-needed" basis with First American Fund Control, Inc. (fonnerly California Fund Control, Inc.), pursuant to the Fund Control Agreement and paid out only upon satisfaction of the requirements as set forth in the Fund Control Agreement for the verification and reimbursement of the costs of the labor and materials in furtherance of the Terminal Development Projects. These verifications include documentation that prevailing wages are being paid to workers by all contractors and subcontractors and that all contracts and subcontracts are being bid and awarded to the lowest responsible bidder, with the additional obligation of First American Fund Control to provide physical inspection of work completed and obtain all lien releases .

1:\AGENDA\20 1 0\05121 O\S l3lAA $5.95 Mil TransfcfJpt(2) .doc ITEM NO.7


On May 23, 2007, the San Bernardino International Airport Authority (SBIAA) Commission approved the terms of a Terminal Lease Agreement to facilitate the development and construction of the Terminal Development Projects.

On the same date, the Inland Valley Development Agency (IVDA) adopted Resolution No. 2007-01, and subsequently Resolution No. 2008-03, which authorized the transfer of $38 million of excess tax increment revenues to the IVDA Capital Projects Fund and the execution of certain documents in furtherance of the Terminal Development Projects. This initial funding authorization did not include specialized communications, security, information and surveillance systems nor funding for additional facilities and improvements needed to assure the effective operation of commercial passenger air service.

On July 23, 2008, the IVDA adopted Resolution No. 2008-08 which authorized $19 million to fund the first phase of adjacent public parking facilities and the acquisition and installation of communications, security, information and surveillance systems.

On March 11 , 2009, the IVDA adopted Resolution No. 2009-03 which authorized $9,275,000 to fund a variety of faci lities to support commercial air passenger service including the second phase of the surface parking lot, the rental car ready parking lot, the renovation of Building 675 to accommodate flight kitchens and ground service equipment maintenance and monument signs.

On April 8,2009, the IVDA adopted Resolution No. 2009-06 which authorized $14,513,100 to fund previously budgeted, but unfunded, construction costs and to add funding for related infrastructure projects, including the first phase of ramp pavement rehabilitation and replacement, and to add a 10 percent construction contingency.

On October 14, 2009, the IVDA adopted Resolution No. 2009-15 which authorized $3,800,000 to fund the second phase oframp pavement rehabi litation and replacement.

On December 9, 2009, the IVDA adopted Resolution 2009-1 9 which authorized $1 ,900,000 to fund initial terminal equipment maintenance costs, relocation of impacted utilities, security enhancements to the Airport fire station and United States Forest Service Tanker Base, and estimated costs of constructing a basic cargo facility to support carriage of "belly" cargo in commercial passenger aircraft.

Adoption of Resolution No. 2010-03 will authorize the transfer of up to $5.95 million in excess tax increment revenues or from net loan proceeds to the IVDA Capital Projects Fund to be used and applied for the purpose of funding specified additional Terminal Development Project costs as needed to meet additional project requirements and to pay for changes necessary to meet security and customer service requirements. Further detail will be provided prior to consideration of this resolution.

I:IAGEN DA\2010\051210ISBIAA $5.95 Mi l TransfcfJ pl(2).doc ITEM NO. 7a

Terminal Development Projects represent a significant impetus to passenger service and, with these additional Airport infrastructure improvements, complement the on-going aircraft maintenance, repair and overhaul, corporate aviation and general aviation development programs of the IVDA and SBlAA. In addition, these projects further the common economic development, job creation, blight elimination goals of both the IVDA and SBlAA in pursuit of the creation of a safe and sustainable public Airport for the benefit of the region.


1:IAGEN DAI20 10\05 1210\sBIAA $5 .95 Mil Transfcr_rpl(2).doc ITEM NO. 7b

San Bernardino International

Terminal BuildingIMonument Signage/ Equipment/Systems/ Wayfinding Parking Lots/Landscaping! Revenue Control/Systems

Fencing Upgrades/Communications/ TSA Security Improvements/ Gate Controls/Systems

ARFF Building! Belly Cargo/ B. 675/ Systems/ Equipment/Rental Car Lot

Tarmac/Ramp Improvements/ Striping!Signage

Airport Terminal Renovation and Airport Infrastructure Improvements

RESOLUTION NO. 2010-03

RESOLUTION OF THE INLAND VALLEY DEVELOPMENT AGENCY (1) MAKING CERTAIN FINDINGS AND DETERMINATIONS AND CONSENTING TO PAYMENTS FOR PUBLIC IMPROVEMENTS BY THE IVDA PURSUANT TO HEALTH AND SAFETY CODE SECTIONS 33445 RELATED TO CERTAIN AIRPORT CAPITAL IMPROVEMENTS; AND (2) AUTHORIZING EXPENDITURES IN AN AMOUNT NOT TO EXCEED $5,950,000 FOR THE AIRPORT TERMINAL RENOVATION PROJECT AND CERTAIN AIRPORT CAPITAL IMPROVEMENTS

WHEREAS, the Inland Valley Development Agency (the "!VDA") is a joint powers

authority formed by the legislative bodies of its members pursuant to California Health and

Safety Code Section 33320.5 and California Government Code Section 6500, et seq; and

WHEREAS, the Board, as the governing body of the IVDA, did adopt Resolution Nos.

2007-01 , 2007-05, 2008-03 , 2008-08, 2009-03, 2009-06, 2009-15 and 2009-19 which made

certain findings and determinations and consented to payments for public improvements

pursuant to Health & Safety Code Section 33445 related to various airport capital improvement

projects as set forth in the SBlAA Airport Layout Plan ("ALP") and the FAA approved Airport

Capital Improvement Plan ("ACIP"); and

WHEREAS, the Board, as the governing body of the IVDA, pursuant to the California

Environmental Quality Act of 1970, as amended ("CEQA"), and the Regulations promulgated

pursuant thereto, has completed an independent review of the various capital improvement

projects as required by California Code of Regulations, Title 14, Section 15096; and

WHEREAS, pursuant to Health & Safety Code Section 33445, this Board must make

certain findings and provide certain consents as the legislative body of the IVDA prior to the

IVDA disbursing tax increment revenues either directly or indirectly for the construction of

certain improvements which are publicly owned; and

4849-920 1-8689.1

WHEREAS, SBIAA has undertaken the renovation of the Airport Terminal as previously

funded in the manner as described hereinafter pursuant to the prior actions of this Board and

SBIAA has expended approximately $61,000,000 on the Airport Terminal Renovation Project of

the $86,488,100 as previously authorized by official actions of SBIAA and this Board pursuant

to the above referenced Resolutions, and an additional $5,950,000 is presently anticipated to be

required in furtherance of the Airport Terminal Renovation Project and specifically certain

related Airport infrastructure as provided in the Staff Memorandum dated May 12,2010, and

WHEREAS, on May 23 , 2007, the SBIAA approved a certain Airport Terminal Lease

Agreement, for the renovation and remodeling of the Airport Terminal with provisions thereof

for the purchase of the improvements by SBIAA upon the completion of the Airport Terminal

Renovation Project as further defined therein which Airport Terminal Lease Agreement was

amended by Amendment No. I , Amendment No.2 and Amendment No.3 for the purposes of

including additional ancillary infrastructure projects in support of the Airport Terminal and to

assure the completion of all elements of the Airport Terminal; and

WHEREAS, as set forth in the ALP, the Airport Tenninal shall be at all times a publicly

owned facility in order to meet the future needs of the Airport and attract commercial airlines to

the facility.

NOW THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE

BOARD AS THE GOVERNING BODY OF THE INLAND VALLEY DEVELOPMENT

AGENCY, AS FOLLOWS:

SECTION I. The above Recitals are true and correct and are incorporated herein by this

reference.

SECTION 2. Pursuant to Health and Safety Code Section 33445, the Board hereby

makes the following findings and determinations concerning the Airport Tenninal Renovation

Project and the related Airport infrastructure improvements, which have been included as part of

the assets of SBIAA at the Airport as set forth in the ALP and the ACIP which is a publicly

owned facility, and the Board further detennines as being an appropriate use of IVDA funds that

4849-9201-8689.1 2

(i) net loan proceeds of the IVDA, and (ii) excess tax increment revenues to be transferred from

the Debt Service Fund to the Capital Improvement Fund as authorized pursuant to this

Resolution: (I) that those portions of the Airport Terminal Renovation Project and the other

Airport infrastructure projects and tarmac renovation as authorized pursuant to the Airport

Terminal Lease Agreement, are those capital improvements as set forth on the ALP and the

ACIP to be undertaken pursuant to the Airport Terminal Lease Agreement and are of benefit to

the Project Area for which the IVDA has the exclusive powers to undertake the redevelopment

thereof; (2) that no other reasonable means of financing the Airport Terminal Renovation Project

are available to the community pursuant to the Statement of Facts noted in the Staff Report; (3)

that the transfer of an amount not to exceed $5,950,000 in excess tax increment funds and other

net loan proceeds of the IVDA without further authorization from this Board will assist in the

elimination of one or more blighting conditions inside the Project Area; and (4) that the

construction of the Airport Terminal as part of the Airport Terminal Renovation Project, together

with the other projects as Airport infrastructure improvements as authorized pursuant to the

Airport Terminal Lease Agreement, is consistent with the Inland Valley Redevelopment Plan

and consistent with the IVDA Implementation Plan as adopted pursuant to Health & Safety Code

Section 33490. This Board, in its role as the legislative body of the IVDA, hereby consents to a

one-time expenditure for the benefit of the SBIAA in an amount not to exceed $5,950,000 in

excess tax increment revenues and net loan proceeds of the IVDA required for the next phase of

the Airport Terminal Renovation Project and related Airport infrastructure, including, but not

limited to those uses as set forth in the May 12, 20 I 0 Staff Memorandum which work is

necessary for the provision of Airport services in support of commercial passenger airline service

at the Airport, as authorized pursuant to the ALP and the ACIP and as further set forth in the

Recitals of this Resolution.

SECTION 3. The Board hereby finds that, as a responsible agency under CEQA for

purposes of the approval of this acquisition of real property improvements for the benefit of

SBIAA, no further environmental review of the SBIAA requested Airport Terminal Renovation

Project, together with the other projects as authorized pursuant to the Airport Terminal Lease

Agreement, pursuant to the ALP and ACIP is necessary at this time as a condition precedent to

the approval and adoption of this Resolution and the undertaking of the actions as contemplated

herein. The Board recognizes that the Developer approved by SBIAA for the Airport Terminal

4849·9201·8689.1 3

Renovation Project, together with the other projects as authorized pursuant to Amendment No.3

to the Airport Terminal Lease Agreement, shall be responsible for complying and has complied

with all conditions for the obtaining of all governmental approvals and further compliance with

all CEQA and other environmental impact mitigation measures as required by the IVDA, SBIAA

and the City of San Bernardino under the approval of the development project application for the

capital improvement project of SBIAA consisting of the Airport Terminal Renovation Project

and other airport capital improvements, replacements and repairs, and the Executive Director of

the IVDA shall be authorized to file an appropriate Notice of Exemption with the County Clerk.

SECTION 4. (a) The IVDA hereby authorizes and directs the one-time transfer of

excess tax increment revenues presently on deposit in the IVDA Debt Service Fund to the IVDA

Capital Projects Fund and other net loan proceeds of the IVDA in the aggregate amount not to

exceed $5,950,000, which funds shall be used and applied for funding the next phase of the

Airport Terminal Renovation Project and related Airport infrastructure, for the uses set for in the

May 12, 2010 Staff memorandum which work is necessary for the provision of Airport services

as authorized pursuant to this Resolution. Such funds as authorized pursuant to this Resolution

shall be deposited on an "as-needed" basis with First American Fund Control, Inc (formerly

California Fund Control, Inc.), pursuant to that certain agreement entitled "Fund Control

Agreement, dated as of July 27, 2007" (the "Fund Control Agreement") upon satisfaction of the

requirements as set forth in the Fund Control Agreement for the verification and reimbursement

of the costs of the labor and materials in furtherance of the Airport Terminal Renovation Project

and other related Airport infrastructure improvements.

(b) This Board hereby authorizes the following to be signatories for any and all

transactions related to the transfer of funds of the IVDA as set forth in subsection (a) above for

deposit pursuant to the Fund Control Agreement for the payment of the additional costs to

complete the Airport Terminal Renovation Project and the Airport infrastructure improvements

as set forth in this Resolution. The following titles of position on the Board and staff positions

are hereby authorized to execute all necessary documents for the transfer of funds by the

execution thereof upon obtaining two (2) signatures comprised of any two (2) of the following

Board members and IVDA staff persons.

4849-920 1-8689. 1 4

Authorized Signatories by Title: Co-Chairs Vice-Chair Executive Director Assistant Director Director of Redevelopment and Transportation

SECTION 5. This Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 12th day of May, 2010.

Patrick J. Morris, Co-Chair Josie Gonzales, Co-Chair Inland Valley Development Agency Inland Valley Development Agency

(SEAL)

Attest:

Kelly Berry Clerk of the Board, Inland Valley Development Agency

I, Kelly Berry, Clerk of the Board of the Inland Valley Development Agency (IVDA) do hereby certify that the foregoing Resolution No. 2010-03 was duly and regularly passed and adopted by the IVDA Board at a Regular meeting thereof, held on the 12th day of May, 20 I 0, and that the foregoing is a full , true and correct copy of said Resolution and has not been amended or repealed.

(SEAL)

Attest:

Kelly Berry Clerk of the Board, Inland Valley Development Agency

4849·920 1-8689.1 5