FINAL REPORT - San Bernardino Superior Court

Executive Summary
purposes that directly benefit the redevelopment of GAFB. The VVEDA JPA also delegates the
authority of the management and operation of the GAFB parcels, including budgeting authority,
redevelopment authority, and all management and operational authority to the Victorville City
Council, “which shall act on behalf of the [VVEDA] Commission on all such matters.” The City
of Victorville also had authority and responsibility for the treasury function of the VVEDA JPA
until late 2009, when the VVEDA Board of Directors voted to transfer the function to the City of
Apple Valley.
The Victorville City Council, acting as the SCLAA Board of Directors, appears to have
repeatedly mishandled SCLAA bond expenditures. In at least three instances the SCLAA Board
and City management mishandled SCLAA bond funds by either: (1) poorly justifying
expenditures; (2) failing to properly identify funding sources and accounting for Victorville’s
pledged amount to SCLAA; or, (3) potentially expending funds allocated to GAFB on parcels
outside of GAFB and not primarily or directly for the purpose for the redevelopment of GAFB.
Based on these findings, the City Council should:
5.1. Revise the loan agreement between SCLAA and the City so that it incorporates back
interest that should have accrued between 2005 and 2010 based on the State Pooled
Money Investment Account average annual yields for the Local Agency Investment
Fund.
5.2. Review and amend the City’s financial statements so that the loan agreement between the
City and SCLAA for the purchase of library parcels reflects the terms of the agreement.
Specifically, that the loan is placed in the City’s Development Impact Fee fund.
5.3. Direct the City Manager to conduct an evaluation of the use of SCLAA bond funds for
the Victorville 2 Power Plant project including an analysis of the amount of funds
specifically allocated to SCLAA (less the Victorville pledge) that were used for the
project. At the completion of such analysis, establish a loan agreement between the City
and SCLAA for the repayment of the amount of SCLAA bond funds expended on the
Victorville 2 Power Plant Project less the net amount 1 pledged by Victorville for
repayment of the bonds.
Based on these findings, the SCLAA Board should:
5.4. Direct the City Manager to establish an accounting system for all expenditures of SCLAA
bond funds. Such a system should include an estimate of the amount of expenditures that
are unrelated to the redevelopment of the former GAFB and would therefore require use
of the Victorville pledge of funds from its own territory.
1 After the funds spent on the Interchange Project are considered.
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Harvey M. Rose Associates, LLC