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HomeMy WebLinkAbout2012-12-20_OB_Agenda OVERSIGHT BOARD FOR SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO FOR REDEVELOPMENT AND HOUSING PURPOSES1 AGENDA Thursday, December 20, 2012 3:00 P.M. Atascadero City Hall, Conference Room #4 6907 El Camino Real Atascadero, California CALL TO ORDER: ROLL CALL: Board Member Patterson Board Member Weathers Board Member Jarvis Board Member Sommer Board Member Clemens Board Member Fonzi Board Member McKinney APPROVAL OF AGENDA: 1 On January 10, 2012, the Atascadero City Council adopted Resolution No. 2012-002, electing to serve as the successor to the Community Redevelopment Agency of Atascadero for redevelopment purposes, and also elected to retain the housing assets and functions previously performed by the Community Redevelopment Agency of Atascadero. BOARD REORGANIZATION: 1. Election of Chairperson and Vice Chairperson  Recommendation: Oversight Board elect one member to serve as Chairperson and elect one member to serve as Vice Chairperson for the Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero. PUBLIC COMMENT: (This portion of the meeting is reserved for persons wanting to address the Board on any matter not on this agenda and over which the Board has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. The Board may take action to direct th e staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Public Comment, unless changed by the Board.) A. CONSENT AGENDA: 1. Oversight Board Special Meeting Draft Action Minutes – October 11, 2012  Recommendation: Oversight Board approve the Special Meeting Draft Action Minutes of October 11, 2012. B. BUSINESS ITEMS: 1. Accountant’s Report on Applying Agreed-Upon Procedures  Recommendation: Board receive and file Accountant’s Report on Applying Agreed-Upon Procedures prepared by the County of San Luis Obispo 2. Public Session Regarding Due Diligence Review of Other Funds  Recommendation: Oversight Board review the Due Diligence Review in public session. C. BOARD MEMBER COMMENTS: D. ADJOURNMENT: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in an Oversight Board meeting, please contact the City Clerk’s Office at (805) 470-3400. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting. ITEM NUMBER: OB - 1 DATE: 12/20/12 Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero Election of Chairperson and Vice Chairperson for the Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero RECOMMENDATION: Oversight Board elect one member to serve as Chairperson and elect one member to serve as Vice Chairperson for the Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero. DISCUSSION: The Oversight Board consists of seven (7) members appointed by City and County officials. The Mayor of Atascadero appoints two (2) of the seven (7) members on the Board. The City of Atascadero elected Mayor Tom O’Malley in November 2012. Mayor O’Malley announced at the December 11, 2012 Council meeting, that he has appointed Council Member Roberta Fonzi and City Manager Wade McKinney to the Board, replacing former Mayor Bob Kelley and Assistant City Manager Jim Lewis. Mr. Kelley and Mr. Lewis were the Chair and Vice-Chair of the Board. The Board selects its Chairperson and Vice Chairperson by election. The by-laws state that the terms of these positions is one year. Recommended Voting Procedures: All actions must be taken on a majority vote of the total membership of the Board. Given that the Oversight Board has seven (7) members, four (4) affirmative votes are needed to pass a motion. Given the lack of a Chairperson or Vice Chairperson, the Secretary will open and close nominations to the Oversight Board for the Chairperson. A vote will be taken and the Chairperson and Vice Chairperson will be elected. ITEM NUMBER: OB A - 1 DATE: 12/20/12 SPECIAL MEETING OVERSIGHT BOARD FOR SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO FOR REDEVELOPMENT AND HOUSING PURPOSES1 Draft Action Minutes Thursday, October 11, 2012 3:30 P.M. Atascadero City Hall, Conference Room #4 6907 El Camino Real Atascadero, California CALL TO ORDER: Chairperson Kelley called the meeting to order at 3:30 p.m. ROLL CALL: Present: Board Members Jarvis, Clemens, Patterson, Sommer, Weathers, and Chairperson Kelley Absent: Vice Chairperson Lewis Staff Present: City Manager Wade McKinney, Administrative Services Director Rachelle Rickard, and City Clerk/Assistant to the City Manager Marcia McClure Torgerson. 1 On January 10, 2012, the Atascadero City Council adopted Resolution No. 2012-002, electing to serve as the successor to the Community Redevelopment Agency of Atascadero for redevelopment purposes, and also elected to retain the housing assets and functions previously performed by the Community Redevelopment Agency of Atascadero. Oversight Board October 11, 2012 Page 2 of 3 APPROVAL OF AGENDA: MOTION: By Board Member Sommer and seconded by Board Member Patterson to approve the agenda. Motion passed 6:0 by a roll-call vote. PUBLIC COMMENT: None A. CONSENT AGENDA: 1. Oversight Board Draft Action Minutes – October 4, 2012  Recommendation: Oversight Board approve the Draft Action Minutes of October 4, 2012. MOTION: By Board Member Jarvis and seconded by Board Member Sommer to approve the Consent Calendar. Motion passed 6:0 by a voice vote. B. BUSINESS ITEMS: 1. Approval of Due Diligence Review of Low Moderate Income Housing Fund  Fiscal Impact: None for this action.  Recommendation: Oversight Board approve Successor Agency to the Community Redevelopment Agency of Atascadero Agreed Upon Procedures - AB 1484 Low/Moderate Housing Fund Report. [Administrative Services] Administrative Services Director Rachelle Rickard gave the staff report and answered questions from the Board. PUBLIC COMMENT: None MOTION: By Board Member Clemens and seconded by Board Member Weathers to approve Successor Agency to the Community Redevelopment Agency of Atascadero Agreed Upon Procedures- AB 1484 Low/Moderate Housing Fund Report. Motion passed 6:0 by a roll-call vote. Oversight Board October 11, 2012 Page 3 of 3 2. Review of Oversight Board Meeting Schedule  Fiscal Impact: None for this action.  Recommendation: Oversight Board receive oral report from staff and direct staff to cancel the next regular meeting of October 18, 2012. [City Clerk] Mayor Kelley stated that this item is about cancelling the regularly scheduled meeting next week, and meet again in December. MOTION: By Board Member Sommer and seconded by Board Member Clemens to cancel their regularly scheduled meeting of October 18, 2012, and meet at the next regularly scheduled meeting on December 20, 2012. Motion passed 6:0 by a voice vote. C. BOARD MEMBER COMMENTS: None D. CITY MANAGER COMMENTS: Ms. Rickard explained to the Board that the Department of Finance (DOF) has approved our ROPS, except for 5 line items, all are City Hall projects. She and City Manager McKinney will attend a Meet and Confer meeting next week with the DOF in an attempt to resolve these issues. E. ADJOURNMENT: Chairperson Kelley adjourned the meeting at 3:50 p.m. MINUTES PREPARED BY: ______________________________________ Marcia McClure Torgerson, C.M.C. City Clerk / Assistant to the City Manager ITEM NUMBER: OB – B 1 DATE: 12/20/12 Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero Accountant’s Report on Applying Agreed-Upon Procedures RECOMMENDATION: Board receive and file Accountant’s Report on Applying Agreed -Upon Procedures prepared by the County of San Luis Obispo DISCUSSION: The adoption of AB1x26 requires each County Auditor-Controller to conduct, or cause to be conducted, an agreed-upon procedures (AUP) audit of each former redevelopment agency in their respective county. The original purpose of the report was to ensure that the dissolved redevelopment agency is in compliance with statutory requirements and to establish each RDA’s assets and liabilities; to document and determine each agency’s pass-through payment obligations to other taxing entities; and to determine and document the amount and terms of any indebtedness incurred by the former RDA. AB1484 was later adopted, requiring two independent auditor separate reports that will be used by the State to determ ine assets, liabilities and compliance; however the original County report is still required. Representatives of the San Luis Obispo County Auditor-Controller’s Office began their review of the former Community Redevelopment Agency of Atascadero in May 2012, and completed the report November 15, 2012. The report includes an executive summary, a detailed section on the agreed -upon procedures and results, and an asset listing. Some of the procedures performed include: ITEM NUMBER: OB – B 1 DATE: 12/20/12 o The County compared the line item estimates on the EOPS I (adopted 8/25/11 for the period of August 2011-December 2011) to the supporting documentation showing the obligation was enforceable. They then compared the original estimates on the EOPS I, to what their estimate was at the time of their review (May 2012-November 2012). All differences were reported. o The County compared the line item estimates on the EOPS II (adopted 1/24/12 for the period of January 2012-June 2012) to the supporting documentation showing the obligation was enforceable. They then compared the original estimates on the EOPS II, to what their estimate was at the time of their review (May 2012-November 2012). All differences were reported. o The County compared the line item estimates on the ROPS I (adopted 3/27/12 for the period of January 2012 - June 2012) to the supporting documentation showing the obligation was enforceable. They then compared the original estimates on the ROPS I, to what their estimate was at the time of their review (May 2012-November 2012). All differences were reported. While there are many items listed where the estimated amount was different than the actual amount paid, these are to be expected, do not change the funding for the Successor Agency and are now reported to the Department of Finance as part of the new ROPS III form developed with the passage or 1484. Overall, the Auditor-Controller’s review supports the status of the individual items presented on the Successor Agency’s Final Required Obligation Payment Schedule (ROPS) with a few exceptions. The exceptions included the following items: o Loans from the City of Atascadero. AB1x26 set forth criteria for determining eligibility for repayment of loans between the City and the RDA. AB 1484 has since revised the treatment of all loans between the City and the Agency. All loans are now eligible for repayment with the approval of the Oversight Board and once the Successor Agency has met certain criteria. AB 1484 sets forth how the loans will be repaid. o Contracts between the Agency and the City of Atascadero. In June 2011, the legislature passed AB1x26 which determined that City/Agency agreements entered into after January 1, 2011 were not valid. The City and Agency had entered into several agreements on January 14, 2011. Because the contracts were already in place at the time of the legislation, the legality of the legislature’s action may be subject to future court determinations. In order to fully disclose all transactions, the Successor Agency has consistently included all contracts entered into by the City to fulfill these RDA/City contracts on the EOPS and ROPS. ITEM NUMBER: OB – B 1 DATE: 12/20/12 o The Agency paid California Redevelopment Association dues for $2,670 on July 1, 2011. The County found that they were not necessary for the continued operation or administration of the RDA. None of the items listed as exceptions will change the course of current business for the Successor Agency. ATTACHMENT: 1. Successor Agency to the Community Redevelopment Agency of Atascadero Accountant’s Report on Applying Agreed Upon Procedures ITEM NUMBER: OB B - 2 DATE: 12/20/12 Oversight Board for Successor Agency to the Community Redevelopment Agency of Atascadero Public Session Regarding Due Diligence Review of Other Funds RECOMMENDATION: Oversight Board review the Due Diligence Review in public session. DISCUSSION: The adoption of AB1484 in June of 2012 requires that each former Redevelopment Agency have a two separate due diligence reviews prepared by a licensed accountant. One review is for the remaining assets of the Low Moderate Income Housing Fund, and the other review is for all other former Redevelopment Agency Funds. The due diligence reviews require a licensed accountant to perform certain procedures designed to address specific areas of the legislation. The procedures were developed by the Department of Finance in conjunction with the California Society of Certified Public Accountants and were finalized on August 27, 2012. By December 17, 2012, the Due Diligence Review of the Other Funds (Other Funds Review) must be completed by the licensed accountant and submitted to the members of the Oversight Board, the County Auditor Controller, the State Controller and the Department of Finance. After receipt of the Other Funds Review, the Oversight Board must hold a public session to consider the Other Funds Review. The Oversight Board must then wait at least five business days after the public session, to hold another meeting in which they can consider approval of the Other Funds Review. The second meeting must be completed and the final approved Due Diligence Review of the Other Funds must be submitted to the State by January 15, 2013. ITEM NUMBER: OB B - 2 DATE: 12/20/12 The Department of Finance will then review the Other Funds Review and must approve or decide to overturn the Oversight Board approval by April 1, 2013. Within 5 days of the Successor Agency receipt of the Department of Finance decision, the Successor Agency may either: 1) Request a meet and confer process to resolve disputes on the Review; or 2) Transfer funds as reported in the Other Funds Review to the auditor- controller for distribution to the taxing agencies. The results of the Other Funds Review confirmed that the funds had $16,413,420 in assets as of June 30, 2012. This amount is reduced by:  $1,456,919 that is legally restricted by various bond documents  $5,752,747 of non- liquid assets  $2,228,446 that was needed to satisfy the ROPS for the 2012-2013 fiscal year  $762,507 that was distributed to taxing agencies in July of 2012 This leaves a balance of $6,152,801 that will be distributed to the taxing agencies sometime in the spring. The report contains various schedules required by the legislation.  Attachment A shows assets transferred from the Redevelopment Agency to the Successor Agency on 1/31/12. (Per the legislation, related liabilities are not shown)  Attachment B shows amounts transferred from the Redevelopment Agency to the City during the period of January 1, 2011 through January 31, 2012  Attachment B1 is the Asset transfer assessment for submitted to t he State Controller in May of 2012  Attachment C shows the assets, liabilities, revenues and expenditures for various years for all redevelopment funds (including the Low-Moderate Income Housing Fund)  Attachment D is a listing of assets for other funds as of June 30, 2012. This shows total assets of $16,413,420 and ties to the total assets listed in Attachment H  Attachment E details $1,456,919 in assets that are restricted for specific use by bond covenants  Attachment F details $5,752.747 in non-liquid assets. These assets are not easily converted to cash and thus cannot be “paid” to the County for distribution. They include capital assets such as park improvements and buildings, along with other accounting assets  Attachment G details $2,288,446 that needs to be withheld from the available RDA assets in order to meet required obligations on the ROPS. ITEM NUMBER: OB B - 2 DATE: 12/20/12  Attachments G1 and G2 are copies of the Oversight Board approved ROPS for the periods of July 1, 2012 – December 31, 2012 and January 1, 2013- June 30, 2013.  Attachment H calculates the amount to be distributed to the taxing agencies. No exceptions were found by MLH during the Due Diligence Review of Other Funds. In compliance with AB1484, the Oversight Board will review the Due Diligence Review of Other Funds in a public session, but will not take any action on this item at this time. ATTACHMENT: 1. Successor Agency of the City of Atascadero Agreed Upon Procedures – AB1484 Other Funds (Due Diligence Review of Other Funds)