Finance & Asset Management - Meeting Agenda

Transcription

1 Finance & Asset Management - Meeting Agenda Date: Tuesday, February 18 th,, 2014 Time: 4:00 p.m. 6:00 p.m. Location: Elliott Bay Room Committee Members: Gloria Skouge (Chair), Ann Magnano (Vice Chair), Betty Halfon, Patrick Kerr, Patrice Barrentine, Jim Savitt and David Ghoddousi 4:00pm I. Administrative: A. Approval of Agenda B. Approval of the January 16 th, 2014 Finance & Asset Management Committee Minutes Chair 4:05pm II. Announcements and/or Community Comments 4:10pm III. Presentations and Discussion Items A. Review of the Final Unaudited Financial Statements for the year ending December 31, 2013 B. Review of the Financial Statements for January Checking Account Activity Report 5:00pm IV. Reports and Action Items A. Action Item: Proposed Resolution 14-05: Authorization for Contract Authority - Replace Stewart House Daystall Tenant Storage B. Action Item: Proposed Resolution 14-06: Authorization for Contract Authority Western Ave Fairley Windows Phase D. Action Item: Proposed Resolution 14-09: Authorization for Contract Authority To Purchase A Gem Electric Car E. Action Item: Proposed Resolution 14-12: Allocation of 2013 Year End Balance Sabina Proto Sabina Proto Bob Beckstrom Steve Nelson Bob Beckstrom Ben Franz-Knight 5:15pm V. Public Comment 5:20pm VI. Property Management A. Residential Property Management Report B. Closed Session (RCW [c]) I. Review of Lease Proposals II. New Renewal - Axis Planning & Development, LLC Western Ave Lease Renewal - All Things Lavender, LLC - 76 Pike Street # 2 Lease Renewal - Cintli by Beto Yarce Pike Place # 321 Lease Renewal - Downtown Food Bank Western Ave Lease Renewal - Totem Smokehouse, Inc Pike Place III. Review of Delinquency Report a. Vacancy Report b. Current Lease Negotiations C. Prelease Agreement for PPM-WE Development - OldStone ((Closed Session Per (RCW (1)(b)) D. Open Session: Approval of Lease Proposals E. Action Item: Proposed Resolution 14-13: Lease Proposals - February 2014 John Turnbull Jennifer Maietta Jennifer Maietta John Turnbull Jennifer Maietta Finance & Asset Management Packet Page 1

2 5:50pm VII. Resolution(s) to be Added to Consent Agenda 5:55pm VIII. Concerns of Committee Members Chair 6:00pm IX. Adjournment Chair Finance & Asset Management Packet Page 2

3 Pike Place Market Preservation and Development Authority (PDA) FINANCE & ASSET MANAGEMENT COMMITTEE Meeting Minutes Thursday January 16 th, :00 p.m. to 6:00 p.m. Goodwin Library Committee Members Present: Gloria Skouge, Patrick Kerr, Betty Halfon, Patrice Barrentine, David Ghoddousi Other Council Members Present: Staff Present: Ben Franz-Knight, John Turnbull, Jennifer Maietta, Jay Schalow, Kateesha Atterberry, Joseph Strong, Matt Holland, Dianna Goodsell Others Present: Howard Aller The meeting was called to order at 4:01p.m. by Gloria Skouge, Chair I. Administrative A. Approval of the Agenda There was a correction to the lease proposals info. The agenda, as amended, was approved by acclamation. B. Approval of the December 17 th, 2013 Finance & Asset Management Committee Minutes. II. Announcements and Community Comments None III. Presentations and Discussion A. Review of the Financial Statements for December 2013 Jay Schalow gave a brief overview of the Financial Statements for December The following content was included with the Financial Statements for December Current Assets decreased compared to the prior month mostly in the unrestricted ash Category. Designated Cash shows an increase; the balance will change due to further reconciliation of Capital Reserves. Restricted Cash decreased due to the payment of the principal and interest on the PC-1 Bond. Fixed Assets increased because of the work performed in different capital projects. Current Liabilities increased mainly in the category of Accounts Payable. Long Term Debt decreased due to the monthly payments on our long term obligations. Our Net Position for the current year operating result was $2,382,386. Under Accounts Receivable Report, the accounts receivable increased in December compared to November mostly in the commercial category. Under the PDA Operating Statement, the Total Revenue for the end of December 2013 was $15,824,928 or over budget by $725,834. The Total Operating Expense YTD was $11,124,900 or over budget by $2,702. The Net Operating Result YTD for December was $4,700,028 or $723,132 over budget. Under the Net Result after Debt Service & Reserves, the Annual Budget was $ 1,884,836 and for the end of December the actual amount was $2,559,982 which exceeded the annual projection by $ 723,440. Based on the Transfer Finance & Asset Management Packet Page 3

4 Agreement between PDA and QB2, the amount of $675,146 had been transferred to QB2 in order to comply with the requirement on threshold balance of cash on QB2. The amount represents the excess revenue over budgeted amount generated from the properties of the QB2, and it doesn t create any shortage on PDA s side. Footnotes on the Operating Expenses noted the following: Commercial Revenue was over budget mainly in Base Rent and Percent Rent. Percent rent was $376,123 over budget. Residential Revenue was over budget overall by $ 28,026. Surface Revenue was on track for the end of December, Garage Revenue was over budget by $129,119 and Miscellaneous Revenue was over budget at the end of November in Trademark. Under Operating Expenses, Residential expenses were over budget mostly in payroll and in Bad Debt, Daystall expenses were over budget due to the spending of the Arcade Lights Event, Surface Lots expenses were over budget because of the larger amount of the Management fee due to the increase in Revenue and the Utilities were over budget mainly due to the higher electricity consumption and the price rate increases. There was a request to include a footnote and exhibit regarding the transfer of funds $675,146 to the QB2 account under the December 2013 financial statements. 1. Checking Account Activity Report The Checking Account Activity Report was distributed to Dianna Goodsell, Administrative Services Coordinator. IV. Reports and Action Items A. Action Item: Proposed Resolution 14-01: New Bank Accounts and Signature Authority - Pike Place Market PDA Investment Account with Cetera Investment Services Ben Franz-Knight introduced the resolution which states that The Pike Place Market PDA has opened a new account to invest funds with Cetera Investment Services. LET IT BE RESOLVED, that the following banks be, and hereby are, authorized to honor and pay checks or other appropriate orders for the payment or withdrawal of money drawn in the name of Pike Place Market Preservation and Development Authority (PPMPDA) in this new account, and all accounts set forth below: Bank of America: Operating Account Payroll Account PC1 General Reserve Fund Basic Account PC1 Revenue Fund PC 1 Revenue Fund II Parking Trust Account HUD Depository Account (Checking and Saving) Sanitary Market Replacement Reserves In Trust for Residents Low Income Housing Reserve PC1 South Condominium Association Pine Residential Revenue Fund Pike Place Market PDA Levy Funds Farm Program Account (SNAP and Credit/Debit Cards) Waterfront Project (new) US Bank - Bond Accounts: Refunding Bonds Series 2002 Debt Service Fund Refunding Bonds Series 2002 Debt Service Reserve 2002 Refunding Bonds Sinking Funds State of Washington Local Government Investment Pool: L.G.I.P. - PPMPDA Cetera Investment Services: 85 Pike Street, Room 500 Seattle, WA (206) Finance & Asset Management Packet Page 4

5 Portfolio Investment as follows Investment Grade Fixed Income PIMCO GNMA P Pioneer Government Income Y Municipal Bonds Nuveen In term Duration Muni Bond I Nuveen Short Term Municipal Bon I Short-Duration Bond(STB) Loomis Sayles LTD Term Govt and Agency Y BE IT FURTHER RESOLVED, that the following persons are duly designated to authorize deposits and withdrawals of funds for the above listed accounts: (a) Checks up to $250.00: Any one of the following: Ben Franz-Knight (Executive Director) alone; Sabina Proto (Director of Finance) alone, John Turnbull (Director of Asset Management) alone. (b) Checks over $250.00: Ben Franz-Knight, Sabina Proto, John Turnbull All signatories are reminded, especially those who are co-signing checks, to verify that the check is completely filled out and the purpose of the check is clearly known before signing, including, and not limited to: Against what invoice is the check being drawn? To satisfy what obligation is the check being written? Is the amount of the check appropriate to its purpose? For what reason are monies being transferred between accounts? The Market relies on the diligence of its check signatories. These public funds are deposited in accordance with laws of the State of Washington. This authority revokes all previous authorities for these accounts, and shall continue in force until notice in writing of its revocation shall have been received by said bank. Betty Halfon moved, Patrice Barrentine seconded There was a brief discussion that followed regarding the memo. David Ghoddousi inquired about the resolution and the investment services and specific risks for the investment services. David wanted to incorporate specific language in the resolution which states the risks associated with the proposed investments. Ben Franz-Knight discussed the various types of proposed bonds and their potential risks. Gloria Skouge thought that there should be a change in the first whereas statement since the account had not been opened yet. David Ghoddousi requested to have the resolution to be tabled. David Ghoddousi moved to table the Proposed Resolution 14-01, Betty Halfon seconded the motion For: Gloria Skouge, Patrick Kerr, Betty Halfon, Patrice Barrentine, David Ghoddousi Against: 0 Abstain: 0 The motion to Table Proposed Resolution was passed unanimously B. Action Item: Proposed Resolution 14-03: Authorization for Contract Authority - Consolidate all PDA Security Camera Recordings to New Server and Software 85 Pike Street, Room 500 Seattle, WA (206) Finance & Asset Management Packet Page 5

6 Joseph Strong introduced the resolution which states that the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion of survival of small businesses, and the expansion of services to the public market community; and, WHEREAS, in order to maintain the quality, reliability, and usefulness of the PPMPDA s security camera recordings and services the PPMPDA has determined that the current recording systems are fragmented and unproductive and need to be replaced; and, WHEREAS, the PPMPDA has executed a competitive pricing review process to upgrade and consolidate the PPMPDA s current security camera systems into a single server and expandable recording software platform. THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA to purchase the server hardware and associated software from Insight and Siemens in an amount not to exceed $16,000.00, for the upgrading and consolidation of the PPMPDA s security camera system. The funds for this project will be drawn from the Capital Projects Budget. The Accounting Code for this project is Capital Inventory Computer Equipment. David Ghoddousi moved, Patrick Kerr seconded There was a brief discussion that followed. For: Gloria Skouge, Patrick Kerr, Betty Halfon, Patrice Barrentine, David Ghoddousi Against: 0 Abstain: 0 Resolution passed unanimously V. Public Comment None VI. Property Management A. Residential Property Management Report John Turnbull distributed a copy of the Residential Property Management Report. A copy of the Residential Property Management Report was included with the meeting minute s record. Closed Session started at 4:45p.m. B. Closed Session (RCW [c]) I. Review of Lease Proposals II. New Lease - Slow Loris Studio Pike Place #316 Lease Renewal - Pen & Ink Pike Place #323 Lease Renewal - Rotary Grocery Pike Place III. Review of Delinquency Report a. Vacancy Report b. Current Lease Negotiations C. Open Session: Approval of Lease Proposals ridiculous Closed Session ended at 5:05p.m. Open Session started at 5:06p.m. E. Action Item: Proposed Resolution 14-02: Lease Proposals - January 2014 Jennifer Maietta introduced the resolution which states the Lease Proposals for January 2014 below: Tenant Term Start Date Slow Loris Studio One (1) Year March 1, 2014 Jessica Lynch & Arlo Rumpff 85 Pike Street, Room 500 Seattle, WA (206) Finance & Asset Management Packet Page 6

7 Pen & Ink Drawings Three (3) Years February 1, 2014 Patrick Kerr Rotary Grocery Three (3) Years February 1, 2014 Henry & Jane Kim Betty Halfon moved, Patrice Barrentine seconded Patrick Kerr specifically noted to recuse himself from the vote. For: Gloria Skouge, Betty Halfon, Patrice Barrentine, David Ghoddousi Against: 0 Abstain: Patrick Kerr Resolution passed with a vote of VII. VIII. IX. Resolution(s) to be added to the Consent Agenda Resolution was moved to the Consent Agenda. Concerns of Committee Members None Adjournment The meeting was adjourned at 5:07 p.m. by Gloria Skouge, Chair Meeting minutes submitted by: Dianna Goodsell, Administrative Services Coordinator 85 Pike Street, Room 500 Seattle, WA (206) Finance & Asset Management Packet Page 7

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35 Pike Place Market Preservation and Development Authority (PDA) Proposed Resolution Authorization for Contract Authority Replace Stewart House Daystall Tenant Storage Units February 2014 WHEREAS, WHEREAS, WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. Seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion and survival of small businesses, and the expansion of services to the public market and community; and, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has determined the Stewart House Building Daystall tenant storage units are inefficient, of substandard quality, and are in need of replacement. the PPMPDA has executed a competitive bid process to replace the Stewart House Building Daystall tenant storage units, including demolition and disposal of the old wooden units currently in place. BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to enter into a contract with Engineered Products, in an amount not to exceed $93, for the execution of replacing the storage units in the Stewart House basement level. The funds for this project will be drawn from the Capital Projects Budget, Accounting Code Gloria Skouge, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Finance & Asset Management Packet Page 35

36 Asset Management Meeting, Febrauary, 18, 2014 Proposed Resolution #14-05 Description Proposed Resolution: Replace the Stewart House Daystall Tenants Storage Units Proposed Resolution Costs: $93, Current Budget: Account: $93, (Replace Stewart House Daystall Storage Units) Capital Projects Accounting Code: Project Description: Replace the Stewart House Daystall Tenants Storage Units Scope: The purpose of this project is to replace the Stewart House Daystall Tenants Storage Units, including demolition and disposal of current wooden locker structures. Bid process: Solicited six contractors and received four bids: o Engineered Products $93, ($85, with 10% contingency). o Harrison Equipment $98, o California Wiring $134, o Northwest Handling Rec d bid but units were non-compliant with RFP o L.K. Goodwin No bid received o Newark Wire Works No bid received Finance & Asset Management Packet Page 36

37 Pike Place Market Preservation and Development Authority (PDA) Proposed Resolution Authorization for Contract Authority Western Ave Fairley Windows Phase 1 February 2014 WHEREAS, WHEREAS, WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. Seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion and survival of small businesses, and the expansion of services to the public market and community; and, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has determined the window façade of the Fairley Building on Western Avenue is in need of repair and repaint. the PPMPDA has executed a competitive bid process to repair and repaint the window façade of the Fairley Building on Western Avenue including but not limited to window panes, wood frames and casing repair and paint. BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to enter into a contract with Experienced Construction, Inc. in an amount not to exceed $235,791 for the execution of painting and repairing on the Western Ave Fairley Windows. The funds for this project will be drawn from the Capital Projects Budget, Accounting Code Gloria Skouge, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Finance & Asset Management Packet Page 37

38 Asset Management Meeting, February 18, 2014 Proposed Resolution #14-06 Description Proposed Resolution: Western Ave Fairley Windows Proposed Resolution Costs: $235,791 Current Budget: $250,000 Account: Capital Projects Accounting Code: Project Description: Restoration of Western Ave Fairly Windows Scope: The PPMPDA has executed a competitive bid process to repair and repaint the window façade of the Fairley Building on Western Avenue. Phase I includes, but is not limited to window panes, wood frame and casing repair paint and hardware. Bid process: Solicited 5 contractors and received 1 bid: o Experienced Construction $179,446 o Legacy $0 o Sargent $0 o Bailey $0 o RAFN $0 (Bid: $179,446 + WST: $17, % Contingency for unknown conditions: $39,298) Finance & Asset Management Packet Page 38

39 Pike Place Market Preservation and Development Authority (PDA) Proposed Resolution Authorization for Contract Authority To Purchase A Gem Electric Car February 2014 WHEREAS, WHEREAS, WHEREAS, the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. Seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion and survival of small businesses, and the expansion of services to the public market and community; and, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has determined the Pike Place Market PDA is in need of a utility use hauling vehicle for the Market to meet the demands of all the various Market functions. the PPMPDA has executed a competitive search process to purchase an electric GEM Car. BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to enter into a contract with Mc Electric, in an amount not to exceed $15, The funds for this project will be drawn from the Capital Equipment Budget, Accounting Code Gloria Skouge, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Finance & Asset Management Packet Page 39

40 Pike Place Market Preservation and Development Authority (PDA) PROPOSED RESOLUTION Allocation of 2013 Year End Balance February 2014 WHEREAS, WHEREAS, the PDA staff has carefully reviewed the 2013 year-end PDA un-audited operating statements and finds that there is a year-end net-result operating balance after debt service and reserves of $ 1,959,620; and, the full PDA Council in their annual budget process had budgeted a surplus of $1,884,836 to be contributed to PDA capital repair and replacement fund (CRRF), leaving an unallocated balance from 2013 operations of $74,783; and, WHEREAS, the PDA Finance Committee has considered PDA Council priorities and alternatives for use of additional year end monies available, and annually recommends to the full Council use of any such un-programmed operating balance. THEREFORE BE IT RESOLVED that the PPMPDA Council allocates the remaining year-end operating balance as follows: $ 36,783 to the Capital Repair and Replacement Fund (CRRF) $ 38,000 to the Pike Place Market Pension Plan Gloria Skouge, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Finance & Asset Management Packet Page 40

41 Pike Place Market Preservation and Development Authority (PDA) PROPROSED RESOLUTION 14-13: Lease Proposals FEBRUARY 2014 Tenant Term Start Date Axis Planning & Development, LLC Two (2) Years March 1, 2014 Carrie Holmes All Things Lavender, LLC Three (3) Years March 1, 2014 Patrick Hovey & Melissa Hovey Cintli by Beto Yarce Three (3) Years March 1, 2014 Beto Yarce Downtown Food Bank Ten (10) Years January 1, 2014 Pike Market Senior Center/ Downtown Food Bank, NPC Totem Smokehouse, Inc. Five (5) Years March 1, 2014 Mark Zenger Gloria Skouge, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Finance & Asset Management Packet Page 41

42 Pike Place Market Preservation and Development Authority (PDA) LEASE SUMMARY Date: 02/18/2014 Business Name/Owner: Axis Planning & Development, LLC / Carrie Holmes Address/Building/Square feet: 1529 Western Ave / Heritage / 586 sf Tenant Since: New Tenant Primary Term: Two (2) Years Options: One (1) Year Use Description: Office Use Specializing in Real Estate Development and Consulting Services Business Name/Owner: All Things Lavender, LLC / Patrick Hovey & Melissa Hovey Address/Building/Square feet: 76 Pike Street #2 / Leland / 252 sf Tenant Since: Since 2002/New Owners 2013 Primary Term: Three (3) Years Options: N/A Use Description: Retail business specializing in the sale of lavender and lavender related products Business Name/Owner: Cintli by Beto Yarce / Beto Yarce Address/Building/Square feet: 1501 Pike Place #321 / Fairley / 507 sf Tenant Since: Since 2004 Primary Term: Three (3) Years Options: N/A Use Description: Retail business specializing in the sale of Mexican & Latino handmade imports and gifts (50% home & office, 25% screen printed t-shirts & clothing accessories, 25% unique jewelry. Finance & Asset Management Packet Page 42

43 Business Name/Owner: Address/Building/Square feet: Tenant Since: Primary Term: Options: Use Description: Downtown Food Bank / Pike Market Senior Center/Downtown Food Bank, NPC 1533 Western Ave / Garage / 4,805 sf Since1990 Ten (10) Years N/A Food Bank and food services related to the downtown population. Business Name/Owner: Totem Smokehouse, Inc. / Mark Zenger Address/Building/Square feet: 1906 Pike Place / Stewart / 493 sf Tenant Since: Since 1995 Primary Term: Five (5) Years Options: N/A Use Description: Retail business specializing in the sale of smoked fish and meats. Finance & Asset Management Packet Page 43