2004 AGN MAY 18 I18 - Laserfiche WebLink

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Item #18 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the Redevelopment Agency Board Meeting of May 18, 2004 TO: Honorable Chairperson and Boardmembers FROM: Candace E. Cassel, Redevelopment Manager SUBJECT: Consideration and Approval of Agency Resolution No. 833 Establishing a Deposit Account with Bank of America for the Purposes of Paying Rancho Mediterrania Operating Account Expenses. DATE: May 4, 2004 BACKGROUND The Agency purchased Rancho Mediterrania in 1993, as part of a litigation settlement, for the purposes of converting the park to resident ownership. The conversion of the park to resident ownership has not been completed yet. As a result, the Agency requires the services of a property management company familiar with mobilehome residency law to manage Agency owned properties with the mobilehome park. The Agency owns both vacant lots and lots rented to owners of mobilehomes situated on the lots. Community Asset Management, the previous management company, resigned on January 30, 2003. An RFP for a replacement management company was issued. However, responses were not good. Of the two responses received, one was from a company in Arizona, unfamiliar with California Mobilehome law, and the other respondent withdrew after the interview. Elite Asset Management was retained by the Agency pursuant to an Interim Property Management Agreement on February 1, 2003 and, on August 19, 2003, the Agency Board formally engaged the services of Elite. Elite is also the management company for the Rancho Mediterrania Homeowner's Association ("HOA"), with reporting responsibility directly to the HOA Board. Elite is very familiar with the mobilehome park, its history and the goals of the Agency. The property manager's primary responsibilities include collection of rents, oversight of the Agency's assets, disbursement of operating expenses associated with the Agency's assets, along with other normal and customary rental administration duties. The Agency's assets have been reduced to 64 rental lots through the end of April, 2004. DISCUSSION/ANALYSIS In addition to collecting rents and managing leases, the management company is responsible for depositing rental revenue into the Agency's trust account for the purposes of paying asset related expenses. The management company is also responsible for providing income statements, balance sheets, bank statements and reconciliations, rent rolls and other reports as requested. The Agency determined that it could achieve tighter controls and meet a higher standard of record keeping associated with the operations of its Rancho Mediterrania properties, if responsibility for the expenses in the trust account was transferred from the property management company to the Agency. While Elite will continue to collect rent, handle customer issues, manage the leases and handle any late payment, evictions and the like, the recommended action will require R:\ShareRDA\Meetings\2004 Meetings\May 18, 2004\Staff Report Establishing Checking Acct for RMED Operations.doc