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HomeMy WebLinkAboutSA_2012-11-27_AgendaPacketSPECIAL MEETING CITY OF ATASCADERO CITY COUNCIL IN THE CAPACITY OF SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO FOR REDEVELOPMENT AND HOUSING PURPOSES1 AGENDA Tuesday, November 27, 2012 5:00 P.M. City Hall Council Chambers 6907 El Camino Real Atascadero, California REGULAR SESSION – CALL TO ORDER: ROLL CALL: Mayor Kelley Mayor Pro Tem O’Malley Council Member Clay Council Member Fonzi Council Member Sturtevant APPROVAL OF AGENDA: Roll Call 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. COMMUNITY FORUM: (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 n ame and address for the record before making your presentation. The Board may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Board.) C. MANAGEMENT REPORTS: 1. Accountant’s Report on Applying Agreed-Upon Procedures  Fiscal Impact: None for this action.  Recommendation: City Council, in the Capacity of Successor Agency to the Community Redevelopment Agency of Atascadero, receive and file Accountant’s Report on Applying Agreed-upon Procedures prepared by the County of San Luis Obispo. [Administrative Services] BOARD ANNOUNCEMENTS AND REPORTS: (On their own initiative, the Board Members may make a brief announcement or a brief report on their own activities. Board Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Board may take action on items listed on the Agenda.) D. ADJOURNMENT TO CITY COUNCIL CLOSED SESSION: ITEM NUMBER: SA C - 1 DATE: 11/27/12 Successor Agency to the Community Redevelopment Agency of Atascadero Accountant’s Report on Applying Agreed-Upon Procedures RECOMMENDATION: City Council, in the Capacity of Successor Agency to the Community Redevelopment Agency of Atascadero, 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 determine 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: o On August 25, 2011 the Redevelopment Board adopted the original Enforceable Obligation Payment Schedule for the period of August 2011-December 2011 ITEM NUMBER: SA C - 1 DATE: 11/27/12 (EOPS I). As part of their review, the County compared the line item estimates on the EOPS I 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 On January 24, 2012, the Redevelopment Board adopted the amended Enforceable Obligation Payment Schedule for the period of January 2012 - June 2012 (EOPS II). As part of their review, the County compared the line item estimates on the EOPS II 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 On March 27, 2012, the Successor Agency Board adopted the Recognized Obligation Payment Schedule for the period of January 2012 - June 2012 (ROPS I). As part of their review, the County compared the line item estimates on the ROPS I 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 of 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. 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. The legality of the legislature’s action may be subject to future court determinations. Any amounts paid under these contracts have been listed individually on the EOPS and ROPS. 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. ITEM NUMBER: SA C - 1 DATE: 11/27/12 FISCAL IMPACT: None. ATTACHMENT: 1. Successor Agency to the Community Redevelopment Agency of Atascadero Accountant’s Report on Applying Agreed Upon Procedures