Loading...
HomeMy WebLinkAboutAG RPTS 2012 1030 OB SPC Resolution No. OB-2012-26 NOTICE AND CALL OF A SPECIAL MEETING OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK NOTICE IS HEREBY GIVEN that a Special Meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City Moorpark is hereby called to be held on Tuesday, October 30, 2012, commencing at 3:30 p.m. Said meeting will convene in the Moorpark Community Center located at 799 Moorpark Avenue, Moorpark, California. Said Special Meeting shall be for the purpose of considering the following: 1. CALL TO ORDER: 2. PLEDGE OF ALLEGIANCE: 3. ROLL CALL: 4. PUBLIC COMMENT: 5. REORDERING OF, AND ADDITIONS TO, THE AGENDA: (Pursuant to Oversight Board Rules of Procedure,Section 2.9,Items to be withdrawn from the Consent Calendar shall be identified at this time.) All writings and documents provided to the majority of the Board Members regarding all open-session agenda items are available for public inspection at the City Hall public counter located at 799 Moorpark Avenue during regular business hours. Agenda packets for Oversight Board meetings are also available on the City's website at www.ci.moorgark.ca.us. Any member of the public may address the Board during the Public Comments portion of the Agenda,unless it is a Presentation/Action/Discussion item. Speakers who wish to address the Board concerning a Presentations/Action/Discussion item must do so during the Presentations/Action/Discussion portion of the Agenda for that item. Speaker cards must be received by the City Clerk for Public Comment prior to the beginning of the Public Comments portion of the meeting;and for a Presentation/Action/Discussion item,and prior to the Chairperson's call for speaker cards for each Presentation/Action/Discussion agenda item. A limitation of three minutes shall be imposed upon each Public Comment and Presentation/Action/Discussion item speaker. Written Statement Cards may be submitted in lieu of speaking orally for Presentation/Action/Discussion items. Any questions concerning any agenda item may be directed to the City Clerk's office at 517-6223. Special Meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark October 30, 2012 Page 2 6. PRESENTATION/ACTION/DISCUSSION: A. Consider Resolution Approving Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund. Staff Recommendation: Adopt Resolution No. OB-2012-_. (Staff: Ron Ahlers) 7. CONSENT CALENDAR: A. Consider Resolution Approving Minutes of Regular Meeting of October 16, 2012. Staff Recommendation: Adopt Resolution No. OB-2012-_. B. Consider Resolution to Receive and File the Status Update on Recognized Obligation Payment Schedule (ROPS) Submittals to the State of California Department of Finance. Staff Recommendation: Adopt Resolution No. 06- 2012-_. (Staff: Ron Ahlers) C. Consider Resolution Receiving Independent Accountant's Report on Applying Agreed-Upon Procedures Pursuant to ABx1 26, Community Redevelopment Dissolution. Staff Recommendation: Adopt Resolution No. OB-2012-_. (Staff: Ron Ahlers) 8. ANNOUNCEMENTS AND FUTURE AGENDA ITEMS: A. Announcements. B. Future Agenda Items. 9. ADJOURNMENT: . Dated: October 25, 2012 Maureen Benson, City Clerk In compliance with the Americans with Disabilities Act,if you need special assistance to review an agenda or participate in this meeting,including auxiliary aids or services, please contact the City Clerk's Division at(805)517-6223. Upon request,the agenda can be made available in appropriate alternative formats to persons with a disability.Upon advance notification of the need for disability-related modification or accommodation, reasonable arrangements will be made by City staff to provide accessibility to the meeting(28 CFR 35.102-35.104;ADA Title II). Special Meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark October 30, 2012 Page 3 STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss CITY OF MOORPARK ) AFFIDAVIT OF POSTING I, Maureen Benson, declare as follows: That I am the City Clerk of the City of Moorpark and that a notice for a Special Meeting of Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark to be held Tuesday, October 30, 2012, at 3:30 p.m. in the Council Chambers of the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California,was posted on October 25, 2012, at a conspicuous place at the Moorpark Community Center, 799 Moorpark Avenue, Moorpark, California. I declare under penalty of perjury that the foregoing is true and correct. Executed on October 25, 2012. Maureen Benson, City Clerk OVERSIGHT BOARD TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK MEETING of /0-30 -a o ITEM 6.A. ACTION: BY: (-t . OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AGENDA REPORT TO: Oversight Board to the Successor Agency FROM: Ron Ahlers, Finance Director a�_ DATE: October 22, 2012 (Oversight Board Special Meeting October 30, 2012) SUBJECT: Consider Resolution Approving Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund SUMMARY AB 1484, signed by the Governor on June 27, 2012, requires that by October 1, 2012 the Successor Agency shall submit a due diligence review of the Low and Moderate Housing Fund to the Oversight Board, the County Auditor-Controller, the Controller, and the Department of Finance. A due diligence review of all the other funds is required by December 15, 2012. At its regularly scheduled meeting on October 16, 2012, the Oversight Board received the Independent Accountant's Report on Applying Agreed- Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund from Rogers, Anderson, Malody & Scott, LLP (RAMS). The Oversight Board held a public comment session on this report at its regularly scheduled meeting on October 16, 2012. Staff is requesting the Oversight Board consider the attached Resolution to approve Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund. DISCUSSION The attached report is only for the Low and Moderate Income Housing Fund of the former Redevelopment Agency of the City of Moorpark (Agency). The report notes no issues and states: 1 Oversight Board to the Successor Agency October 30, 2012 Page 2 According to the Successor Agency Officials, no assets from the Low and Moderate Income Housing Fund were transferred to the Successor Agency as of February 1, 2012. All assets of the former redevelopment agency's Low and Moderate Income Housing Fund were transferred to the City of Moorpark as the Housing Successor since those assets qualified as Housing Assets in accordance to H&S Code Section 34176 (e). Below is the Government Code Section relating to the due diligence review noting the applicable dates of completion, submission of the reports, and the funds. Government Code Section 34179.6 states: SEC. 18. Section 34179.6 is added to the Health and Safety Code, to read: 34179.6. The review required pursuant to Section 34179.5 shall be submitted to the oversight board for review. The successor agency shall submit a copy of the Recognized Obligation Payment Schedule to the county administrative officer, the county auditor-controller, and the Department of Finance at the same time that the successor agency submits the review to the oversight board for review. (a) By October 1, 2012, each successor agency shall provide to the oversight board, the county auditor-controller, the Controller, and the Department of Finance the results of the review conducted pursuant to Section 34179.5 for the Low and Moderate Income Housing Fund and specifically the amount of cash and cash equivalents determined to be available for allocation to taxing entities. By December 15, 2012, each successor agency shall provide to the oversight board, the county auditor- controller, the Controller, and the department the results of the review conducted pursuant to Section 34179.5 for all of the other fund and account balances and specifically the amount of cash and cash equivalents determined to be available for allocation to taxing entities. The department may request any supporting documentation and review results to assist in its review under subdivision (d). The department may specify the form and manner information about the review shall be provided to it. (b) Upon receipt of the review, the oversight board shall convene a public comment session to take place at least five business days before the oversight board holds the approval vote specified in subdivision (c). The oversight board also shall consider any opinions offered by the county auditor-controller on the review results submitted by the successor agencies. 2 Oversight Board to the Successor Agency October 30, 2012 Page 3 (c) By October 15, 2012, for the Low and Moderate Income Housing Fund and by January 15, 2013, for all other funds and accounts, the oversight board shall review, approve, and transmit to the department and the county auditor-controller the determination of the amount of cash and cash equivalents that are available for disbursement to taxing entities as determined according to the method provided in Section 34179.5. The oversight board may adjust any amount provided in the review to reflect additional information and analysis. The review and approval shall occur in public sessions. The oversight board may request from the successor agency any materials it deems necessary to assist in its review and approval of the determination. The oversight board shall be empowered to authorize a successor agency to retain assets or funds identified in subparagraphs (B) to (E), inclusive, of paragraph (5) of subdivision (c) of Section 34179.5. An oversight board that makes that authorization also shall identify to the department the amount of funds authorized for retention, the source of those funds, and the purposes for which those funds are being retained. The determination and authorization to retain funds and assets shall be subject to the review and approval of the department pursuant to subdivision (d). (d) The department may adjust any amount associated with the determination of the resulting amount described in paragraph (6) of subdivision (c) of Section 34179.5 based on its analysis and information provided by the successor agency and others. The department shall consider any findings or opinions of the county auditor-controllers and the Controller. The department shall complete its review of the determinations provided pursuant to subdivision (c) no later than November 9, 2012, for the Low and Moderate Income Housing Fund and also shall notify the oversight board and the successor agency of its decision to overturn any decision of the oversight board to authorize a successor agency to retain assets or funds made pursuant to subdivision (c). The department shall complete its review of the determinations provided pursuant to subdivision (c) no later than April 1, 2013, for the other funds and accounts and also shall notify the oversight board and the successor agency of its decision to overturn any oversight board authorizations made pursuant to subdivision (c). The department shall provide the oversight board and the successor agency an explanation of its basis for overturning or modifying any findings, determinations, or authorizations of the oversight board made pursuant to subdivision (c). (e) The successor agency and the entity or entities that created the former redevelopment agency may request to meet and confer with the department to resolve any disputes regarding the amounts or sources of funds identified as determined by the department. The request shall be made within five business days of the transmission, and no later than 3 Oversight Board to the Successor Agency October 30, 2012 Page 4 November 16, 2012, for the determination regarding the Low and Moderate Income Housing Fund, to the successor agency or the designated local authority of the department's determination, decisions, and explanations and shall be accompanied by an explanation and documentation of the basis of the dispute. The department shall meet and confer with the requesting party and modify its determinations and decisions accordingly. The department shall either confirm or modify its determinations and decisions within 30 days of the request to meet and confer. (f) Each successor agency shall transmit to the county auditor-controller the amount of funds required pursuant to the determination of the department within five working days of receipt of the notification under subdivision (c) or (e) if a meet and confer request is made. Successor agencies shall make diligent efforts to recover any money determined to have been transferred without an enforceable obligation as described in paragraphs (2) and (3) of subdivision (c) of Section 34179.5. The department shall notify the county auditor-controllers of its actions and the county auditor-controllers shall disburse the funds received from successor agencies to taxing entities pursuant to Section 34188 within five working days of receipt. Amounts received after November 28, 2012, and April 10, 2013, may be held and disbursed with the regular payments to taxing entities pursuant to Section 34183. (g) By December 1, 2012, the county auditor-controller shall provide the department a report specifying the amount submitted by each successor agency pursuant to subdivision (d) for low- and moderate-income housing funds, and specifically noting those successor agencies that failed to remit the full required amount. By April 20, 2013, the county auditor-controller shall provide the department a report detailing the amount submitted by each successor agency pursuant to subdivision (d) for all other funds and accounts, and specifically noting those successor agencies that failed to remit the full required amount. (h) If a successor agency fails to remit to the county auditor-controller the sums identified in subdivisions (d) and (f), by the deadlines specified in those subdivisions, the following remedies are available: (1) (A) If the successor agency cannot promptly recover the funds that have been transferred to another public agency without an enforceable obligation as described in paragraphs (2) and (3) of subdivision (c) of Section 34179.5, the funds may be recovered through an offset of sales and use tax or property tax allocations to the local agency to which the funds were transferred. To recover such funds, the Department of Finance may order the State Board of Equalization to make an offset pursuant to subdivision (a) of Section 34179.8. If the Department of Finance does not 4 Oversight Board to the Successor Agency October 30, 2012 Page 5 order a sales tax offset, the county auditor-controller may reduce the property tax allocations to any local agency in the county that fails to repay funds pursuant to subdivision (c) of Section 34179.8. (B) The county auditor-controller and the department shall each have the authority to demand the return of funds improperly spent or transferred to a private person or other private entity. If funds are not repaid within 60 days, they may be recovered through any lawful means of collection and are subject to a ten percent penalty plus interest at the rate charged for late personal income tax payments from the date the improper payment was made to the date the money is repaid. (C) If the city, county, or city and county that created the former redevelopment agency is also performing the duties of the successor agency, the Department of Finance may order an offset to the distribution provided to the sales and use tax revenue to that agency pursuant to subdivision (a) of Section 34179.8. This offset shall be equal to the amount the successor fails to remit pursuant to subdivision (f). If the Department of Finance does not order a sales tax offset, the county auditor-controller may reduce the property tax allocations of the city, county, or city and county that created the former redevelopment agency pursuant to subdivision (c) of Section 34179.8. (D) The department and the county auditor-controller shall coordinate their actions undertaken pursuant to this paragraph. (2) Alternatively or in addition to the remedies provided in paragraph (1), the department may direct the county auditor-controller to deduct the unpaid amount from future allocations of property tax to the successor agency under Section 34183 until the amount of payment required pursuant to subdivision (d) is accomplished. (3) If the Department of Finance determines that payment of the full amount required under subdivision (d) is not currently feasible or would jeopardize the ability of the successor agency to pay enforceable obligations in a timely manner, it may agree to an installment payment plan. (i) (1) If a legal action contesting a withholding effectuated by the State Board of Equalization pursuant to subparagraphs (B), (C), or (B) and (C) of paragraph (2) of subdivision (b) of Section 34183.5 is successful and results in a final judicial determination, the court shall order the state to pay to the prevailing party a penalty equal to a percentage of the amount of funds found by the court to be improperly withheld, as provided in Section 34179.8. This percentage shall be equivalent to the number of months the funds have been found by the court to be improperly withheld, not to exceed 10 percent. (2) If a legal action contesting an offset effectuated by the State Board of Equalization or the county auditor-controller pursuant to subdivision (h) is successful and results in a final judicial determination, the court shall order the state or the county auditor-controller to pay to the prevailing party a 5 Oversight Board to the Successor Agency October 30, 2012 Page 6 penalty equal to 10 percent of the amount of funds found by the court to be improperly offset, as provided in Section 34179.8. (j) If a legal challenge to invalidate any provision in subdivision (h) or subparagraph (B) or (C), or subparagraphs (B) and (C) of paragraph (2) of subdivision (b) of Section 34183.5 is successful and results in a final judicial determination, the invalidated provision shall become inoperative and subdivision (i) shall become inoperative with respect to the invalidated provision. FISCAL IMPACT None. STAFF RECOMMENDATION 1. Adopt Resolution No. OB-2012- , approving the report. Attachments: 1. Resolution No. 06-2012- 2. Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund 6 Attachment 1 RESOLUTION NO. OB-2012- A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FOR THE SPECIAL MEETING OF OCTOBER 30, 2012, APPROVING INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES FOR DUE DILIGENCE REVIEW PURSUANT TO HEALTH AND SAFETY CODE SECTION 34179.5 FOR THE LOW AND MODERATE INCOME HOUSING FUND WHEREAS, Section 34179 (e) of the Health and Safety requires all actions taken by the Oversight Board of the Successor Agency of the Redevelopment Agency of the City of Moorpark be adopted by resolution; and WHEREAS, on October 16, 2012 the Oversight Board conducted a public comment session on the Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund and set October 30, 2012 at 3:30 pm as the date to consider approval of said report; and WHEREAS, on October 30, 2012 the Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund was considered by the Oversight Board for approval (Agenda Item 6.A.). NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund is hereby approved, SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 7 PASSED AND ADOPTED this 30th day of October, 2012. Bruce Hamous, Chair ATTEST: Maureen Benson, City Clerk 8 ATTACHMENT 2 PURSUANT TO THE STATE OF CALIFORNIA HEALTH AND SAFETY CODE SECTION 34179.5 CITY OF MOORPARK AS THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES 9 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES TABLE OF CONTENTS Independent Accountant's Report on Applying Agreed-Upon Procedures.....................................................................1 Attachment A:Agreed-Upon Procedures .......................................................................................................................2 Attachment2.A .............................................................................................................................................................16 i 10 on ROGERS,ANDERSON, MALODY& SCOTT, LLP ®® CERTIFIED PUBLIC ACCOUNTANTS,SINCE (948 7335 E.Carnegie Dr. Suite loo Oversight Board of the Successor Agency for the San Bernardino,CA 92408 Redevelopment Agency of the City of Moorpark 909 889 0871 T 909 889 5361 F 799 Moorpark Ave. ,an,Scaa„et Moorpark, CA 93021 INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES t'r; c. .'n ' We have performed the minimum required agreed-upon procedures enumerated in Attachment"A", which were agreed to by the Oversight Board of the Successor Agency _ef<r,t for the Redevelopment Agency of the City of Moorpark, the California State Controller's ,i Iin , ,i>e, .< ,;1r«, =,; Office and the State of California Department of Finance (Agencies) solely to assist you to determine the Low and Moderate Income Housing Fund unobligated balances 'A;-P available for transfer to taxing entities complying with statutory requirements pursuant to the California Health and Safety Code section 34179.5. Management of the rFA i1' Successor Agency is responsible for the accounting records pertaining to statutory compliance pursuant to Health and Safety Code section 34182(a)(1). CPA, A .1° 1 This agreed-upon procedures engagement was conducted in accordance with ? -1 attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The scope of this engagement was limited to performing the minimum required agreed- upon procedures as set forth in Attachment"A" along with the findings noted as a result of the procedures performed. We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion as to the appropriateness of the results summarized after each procedure in Attachment "A". Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the applicable Agencies, and is not intended to be, and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report, which is a matter of public record. /��r tai Ct'nrle to oti cilocty z 1!�C07r L L16 October 10, 2012 STABILITY, ACCURACY, TRUST. 11 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Purpose: To determine the unobligated balances available for transfer to taxing entities of the Low and Moderate Income Housing Fund. [Health and Safety Code section 34179.5] Citation: 34179.5(c)(1) The dollar value of assets transferred from the former redevelopment agency to the successor agency on or about February 1, 2012. 1. Obtain from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency to the Successor Agency on February 1, 2012. Agree the amounts on this listing to account balances established in the accounting records of the Successor Agency. Identify in the Agreed-Upon Procedures(AUP) report the amount of the assets transferred to the Successor Agency as of that date. Results: According to the Successor Agency Officials, no assets from the Low and Moderate Income Housing Fund were transferred to the Successor Agency as of February 1, 2012. All assets of the former redevelopment agency's Low and Moderate Income Housing Fund were transferred to the City of Moorpark as the Housing Successor since those assets qualified as Housing Assets in accordance to H&S Code Section 34176(e). 2 12 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(2) The dollar value of assets and cash and cash equivalents transferred after January 1, 2011, through June 30, 2012, by the redevelopment agency or the successor agency to the city, county, or city and county that formed the redevelopment agency and the purpose of each transfer. The review shall provide documentation of any enforceable obligation that required the transfer. 2. If the State Controller's Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to the city, county, or city and county that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Results: We obtained a listing, prepared by the Successor Agency, of transfers (excluding payments for goods and services) from the former redevelopment agency to the city, county, or city and county that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency described the purpose of the transfer and described in what sense the transfer was required by one of the Successor Agency's enforceable obligations or other legal requirements. See Attachment 2.A for listing of transfers prepared by the Successor Agency. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to the city, county, or city and county that formed the redevelopment agency for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Results: According to Successor Agency Officials, there were no assets transferred from the Successor Agency to the City or County for the period from February 1, 2012 through June 30, 2012. The Successor Agency did not receive any assets from the Low and Moderate Income Housing Fund of the former redevelopment agency. C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Results: See Attachment 2.A for results of this section. 3 13 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(3) The dollar value of any cash or cash equivalents transferred after January 1, 2011, through June 30, 2012, by the redevelopment agency or the successor agency to any other public agency or private party and the purpose of each transfer. The review shall provide documentation of any enforceable obligation that required the transfer. 3. If the State Controller's Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Results: According to Successor Agency Officials, there were no assets of the Low and Moderate Income Housing Fund transferred from the former redevelopment agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to any other public agency or private parties for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency's enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. Results: According to Successor Agency Officials, there were no assets transferred from the Successor Agency to any other public agency or to private parties for the period from February 1, 2012 through June 30, 2012. C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Results: Procedure not performed since the Successor Agency did not identify any transfers to other public agencies or private parties for the period from January 1, 2011 through June 30, 2012. 4 14 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(4) The review shall provide expenditure and revenue accounting information and identify transfers and funding sources for the 2010-11 and 2011-12 fiscal years that reconciles balances, assets, and liabilities of the successor agency on June 30, 2012 to those reported to the Controller for the 2009-10 fiscal year. 4. Perform the following procedures: A. Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment Agency and the Successor Agency in the format set forth in the attached schedule for the fiscal periods indicated in the schedule. For purposes of this summary, the financial transactions should be presented using the modified accrual basis of accounting. End of year balances for capital assets (in total) and long-term liabilities (in total) should be presented at the bottom of this summary schedule for information purposes. B. Ascertain that for each period presented the total of revenues, expenditures, and transfers accounts fully for the changes in equity from the previous fiscal period. C. Compare amounts in the schedule relevant to the fiscal year ended June 30, 2010 to the state controller's report filed for the Redevelopment Agency for that period. D. Compare amounts in the schedule for the other fiscal periods presented to account balances in the accounting records or other supporting schedules. Describe in the report the type of support provided for each fiscal period. Results: Procedure 4 pertains to the Successor Agency as a whole, these procedures are to be addressed and presented in the report due on December 15, 2012. 5 15 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(5)A separate accounting for the balance for the Low and Moderate Income Housing Fund for all other funds and accounts combined shall be made as follows: (A)A statement of the total value of each fund as of June 30, 2012. 5. Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income Housing Fund as of June 30, 2012 for the report that is due October 1, 2012 and a listing of all assets of all other funds of the Successor Agency as of June 30, 2012 (excluding the previously reported assets of the Low and Moderate Income Housing Fund) for the report that is due December 15, 2012. When this procedure is applied to the Low and Moderate Income Housing Fund, the schedule attached as an exhibit will include only those assets of the Low and Moderate Income Housing Fund that were held by the Successor Agency as of June 30, 2012 and will exclude all assets held by the entity that assumed the housing function previously performed by the former redevelopment agency. Agree the assets so listed to recorded balances reflected in the accounting records of the Successor Agency.The listings should be attached as an exhibit to the appropriate AUP report. Results: According to Successor Agency Officials, there were no assets transferred from the Low and Moderate Income Housing Fund of the former redevelopment agency to the Successor Agency on February 1, 2012.All assets of the former redevelopment agency's Low-Mod Income Housing Fund were transferred to the City of Moorpark as the Housing Successor. 6 16 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(5)(B) An itemized statement listing any amounts that are legally restricted as to purpose and cannot be provided to taxing entities. This could include the proceeds of any bonds, grant funds, or funds provided by other governmental entities that place conditions on their use. 6. Obtain from the Successor Agency a listing of asset balances held on June 30, 2012 that are restricted for the following purposes: A. Unspent bond proceeds: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures, amounts set aside for debt service payments, etc.) ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. Results: According to Successor Agency Officials, there were no "Unspent bond proceeds" from the former Low and Moderate Income Housing Fund held by the Successor Agency at June 30, 2012. B. Grant proceeds and program income that are restricted by third parties: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. Results: According to Successor Agency Officials, there were no "Grants proceeds or program income" from the former Low and Moderate Income Housing Fund held by the Successor Agency at June 30, 2012. C. Other assets considered to be legally restricted: i. Obtain the Successor Agency's computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by Successor the Agency as restricted. Results. According to Successor Agency Officials, there were no "Other assets considered to be legally restricted"from the former Low and Moderate Income Housing Fund held by the Successor Agency at June 30, 2012. 7 17 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A D.Attach the above mentioned Successor Agency prepared schedule(s)as an exhibit to the AUP report. For each restriction identified on these schedules, indicate in the report the period of time for which the restrictions are in effect. If the restrictions are in effect until the related assets are expended for their intended purpose, this should be indicated in the report. Results: The Successor Agency did not prepare schedules related to procedures 6.A, 6.B, and 6.C, as there were no assets held by the Successor Agency from the former Low and Moderate Income Housing Fund of the former redevelopment agency at June 30, 2092. 8 18 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT HSS CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(5)(C) An itemized statement of the values of any assets that are not cash or cash equivalents. This may include physical assets, land, records, and equipment. For the purpose of this accounting, physical assets may be valued at purchase cost or at any recently estimated market value. The statement shall list separately housing-related assets. 7. Perform the following procedures: A. Obtain from the Successor Agency a listing of assets as of June 30, 2012 that are not liquid or otherwise available for distribution (such as capital assets, land held for resale, long-term receivables, etc.) and ascertain if the values are listed at either purchase cost (based on book value reflected in the accounting records of the Successor Agency) or market value as recently estimated by the Successor Agency. B. If the assets listed at 7(A) are listed at purchase cost, trace the amounts to a previously audited financial statement (or to the accounting records of the Successor Agency) and note any differences. C. For any differences noted in 7(B), inspect evidence of disposal of the asset and ascertain that the proceeds were deposited into the Successor Agency trust fund. If the differences are due to additions (this generally is not expected to occur), inspect the supporting documentation and note the circumstances. D. If the assets listed at 7(A) are listed at recently estimated market value, inspect the evidence (if any) supporting the value and note the methodology used. If no evidence is available to support the value and\or methodology, note the lack of evidence. Results: Procedures 7.A, 7.B, 7.C, or 7.D are not applicable since the Successor Agency did not hold any assets from the Low and Moderate Income Housing Fund of the former redevelopment agency at June 30, 2012. 9 19 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(5)(D)An itemized listing of any current balances that are legally or contractually dedicated or restricted for the funding of an enforceable obligation that identifies the nature of the dedication or restriction and the specific enforceable obligation. In addition, the successor agency shall provide a listing of all approved enforceable obligations that includes a projection of annual spending requirements to satisfy each obligation and a projection of annual revenues available to fund those requirements. If a review finds that future revenues together with dedicated or restricted balances are insufficient to fund future obligations and thus retention of current balances is required, it shall identify the amount of current balances necessary for retention. The review shall also detail the projected property tax revenues and other general purpose revenues to be received by the successor agency, together with both the amount and timing of the bond debt service payments of the successor agency, for the period in which the oversight board anticipates the successor agency will have insufficient property tax revenue to pay the specified obligations. 8. Perform the following procedures: A. If the Successor Agency believes that asset balances need to be retained to satisfy enforceable obligations, obtain from the Successor Agency an itemized schedule of asset balances(resources) as of June 30, 2012 that are dedicated or restricted for the funding of enforceable obligations and perform the following procedures. The schedule should identify the amount dedicated or restricted, the nature of the dedication or restriction, the specific enforceable obligation to which the dedication or restriction relates, and the language in the legal document that is associated with the enforceable obligation that specifies the dedication of existing asset balances toward payment of that obligation. Results: Procedure 8.A is not applicable since the Successor Agency did not hold any assets from the Low and Moderate Income Housing Fund of the former redevelopment agency at June 30, 2012. i. Compare all information on the schedule to the legal documents that form the basis for the dedication or restriction of the resource balance in question. ii. Compare all current balances to the amounts reported in the accounting records of the Successor Agency or to an alternative computation. iii. Compare the specified enforceable obligations to those that were included in the final Recognized Obligation Payment Schedule approved by the California Department of Finance. iv. Attach as an exhibit to the report the listing obtained from the Successor Agency. Identify in the report any listed balances for which the Successor Agency was unable to provide appropriate restricting language in the legal document associated with the enforceable obligation. 10 20 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A B. If the Successor Agency believes that future revenues together with balances dedicated or restricted to an enforceable obligation are insufficient to fund future obligation payments and thus retention of current balances is required, obtain from the Successor Agency a schedule of approved enforceable obligations that includes a projection of the annual spending requirements to satisfy each obligation and a projection of the annual revenues available to fund those requirements and perform the following procedures: Results: Procedure 8.B is not applicable since the Successor Agency did not hold any assets from the Low and Moderate Income Housing Fund of the former redevelopment agency at June 30, 2012. i. Compare the enforceable obligations to those that were approved by the California Department of Finance. Procedures to accomplish this may include reviewing the letter from the California Department of Finance approving the Recognized Enforceable Obligation Payment Schedules for the six month period from January 1, 2012 through June 30, 2012 and for the six month period July 1, 2012 through December 31, 2012. ii. Compare the forecasted annual spending requirements to the legal document supporting each enforceable obligation. a. Obtain from the Successor Agency its assumptions relating to the forecasted annual spending requirements and disclose in the report major assumptions associated with the projections. iii. For the forecasted annual revenues: a. Obtain from the Successor Agency its assumptions for the forecasted annual revenues and disclose in the report major assumptions associated with the projections. C. If the Successor Agency believes that projected property tax revenues and other general purpose revenues to be received by the Successor Agency are insufficient to pay bond debt service payments (considering both the timing and amount of the related cash flows), obtain from the Successor Agency a schedule demonstrating this insufficiency and apply the following procedures to the information reflected in that schedule. Results. The procedure is not applicable as there are no Low and Moderate Income Housing Bonds issued and outstanding at June 30, 2012. i. Compare the timing and amounts of bond debt service payments to the related bond debt service schedules in the bond agreement. ii. Obtain the assumptions for the forecasted property tax revenues and disclose major assumptions associated with the projections. iii. Obtain the assumptions for the forecasted other general purpose revenues and disclose major assumptions associated with the projections. 11 21 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A D. If procedures A, B, or C were performed, calculate the amount of current unrestricted balances necessary for retention in order to meet the enforceable obligations by performing the following procedures. Results: The procedure is not applicable since procedures 8.A, 8.B, or 8.0 were not performed. i. Combine the amount of identified current dedicated or restricted balances and the amount of forecasted annual revenues to arrive at the amount of total resources available to fund enforceable obligations. ii. Reduce the amount of total resources available by the amount forecasted for the annual spending requirements.A negative result indicates the amount of current unrestricted balances that needs to be retained. iii. Include the calculation in the AUP report. 12 22 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(5)(E) An itemized list and analysis of any amounts of current balances that are needed to satisfy obligations that will be placed on the Recognized Obligation Payment Schedules for the current fiscal year. 9. If the Successor Agency believes that cash balances as of June 30, 2012 need to be retained to satisfy obligations on the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2012 through June 30, 2013, obtain a copy of the final ROPS for the period of July 1, 2012 through December 31, 2012 and a copy of the final ROPS for the period January 1, 2013 through June 30, 2013. For each obligation listed on the ROPS, the Successor Agency should add columns identifying (1) any dollar amounts of existing cash that are needed to satisfy that obligation and (2) the Successor Agency's explanation as to why the Successor Agency believes that such balances are needed to satisfy the obligation. Include this schedule as an attachment to the AUP report. Results: Procedure 9 is not applicable since the Successor Agency did not hold any"cash balances"from the Low and Moderate Income Housing Fund of the former redevelopment agency at June 30, 2012. 13 23 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A Citation: 34179.5(c)(6) The review shall total the net balances available after deducting the total amounts described in subparagraphs (B)to(E), inclusive, of paragraph (5). The review shall add any amounts that were transferred as identified in paragraphs (2) and (3) of subdivision (c) if an enforceable obligation to make that transfer did not exist. The resulting sum shall be available for allocation to affected taxing entities pursuant to Section 34179.6. It shall be a rebuttable presumption that cash and cash equivalent balances available to the successor agency are available and sufficient to disburse the amount determined in this paragraph to taxing entities. If the review finds that there are insufficient cash balances to transfer or that cash or cash equivalents are specifically obligated to the purposes described in subparagraphs (B), (D), and (E)of paragraph (5) in such amounts that there is insufficient cash to provide the full amount determined pursuant to this paragraph, that amount shall be demonstrated in an additional itemized schedule. 10. Include(or present)a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Entities.Amounts included in the calculation should agree to the results of the procedures performed in each section above. The schedule should also include a deduction to recognize amounts already paid to the County Auditor-Controller on July 12, 2012 as directed by the California Department of Finance.The amount of this deduction presented should be agreed to evidence of payment. The attached example summary schedule may be considered for this purpose. Separate schedules should be completed for the Low and Moderate Income Housing Fund and for all other funds combined (excluding the Low and Moderate Income Housing Fund). Results. We have included a schedule (prepared by the Successor Agency) detailing the computation of the Balance Available for Allocation to Affected Taxing Entities from the Low and Moderate Income Housing Fund. We agreed amounts included in the calculation to the results of the procedures performed in each section of the report referenced in the calculation. The schedule does not contain a payment to the County Auditor-Controller on July 12, 2012 as directed by the California Department of Finance because the Low and Moderate Income Housing Fund of the Successor Agency was not required to make such payment. SUMMARY OF BALANCES AVAILABLE FOR ALLOCATION TO AFFECTED TAXING ENTITIES Total amount of assets held by the successor agency as of June 30,2012(procedure 5) $ Add:the amount of any assets transferred to the city or other parties for which an enforceable obligation with a third party requiring such transfer and obligating the use of the transferred assets did not exist - (procedures 2 and 3) Less:assets legally restricted for uses specified by debt covenants,grant restrictions,or restrictions imposed by other governments(procedure 6) Less:assets that are not cash or cash equivalents(e.g.,physical assets)(procedure 7) Less:balances that are legally restricted for the funding of an enforceable obligation(net of projected annual revenues available to fund those obligations)(procedure 8) Less:balances needed to satisfy ROPS for the 2012-13 fiscal year(procedure 9) Less:the amount of payments made on July 12,2012 to the County Auditor-Controller as directed by the California Department of Finance Amount to be remitted to the County for disbursement to taxing entities $ - 14 24 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment A 11. Obtain a representation letter from Successor Agency management acknowledging their responsibility for the data provided to the practitioner and the data presented in the report or in any attachments to the report. Included in the representations should be an acknowledgment that management is not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in the AUP report and its related exhibits. Management's refusal to sign the representation letter should be noted in the AUP report as required by attestation standards. Results: We obtained a representation letter dated October 10, 2012 from the Successor Agency's management acknowledging their responsibility for the data provided to us and the data presented in the report and in all attachments to the report. Included in the representations there is an acknowledgment that management is not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in the Agreed-upon procedures report and its related exhibits. 15 25 REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DUE DILIGENCE REVIEW PURSUANT H&S CODE SECTION 34179.5 LOW AND MODERATE INCOME HOUSING FUND AGREED-UPON PROCEDURES Attachment 2.A Transfers from the former redevelopment agency to the city,county,or city and county that formed the redevelopment agency for the period from January 1 2011 through January 31 2012 Assets Transferred Transfer Date Purpose Recipient Legal Requirement Total Amount Procedure 2.0 Results Transferred The City of Moorpark elected to be the Housing Successor obtaining Encumbered Cash 1131/2012 To transfer Housing Asset to City of Moorpark as rights to keep the housing assets in the Low-Mod Fund of the former Housing Successor Housing Successor H&S Section 34176 $ 11,750 redevelopment agency.Per City Officials,the asset qualifies as a Housing Asset in accordance to the definition of the H&S Code Section 34176. The City of Moorpark elected to be the Housing Successor obtaining Accounts Receivable 1/31/2012 To transfer Housing Asset to City of Moorpark as H&S Section 34176 $ 4,108 rights to keep the housing assets in the Low-Mod Fund of the former Housing Successor Housing Successor redevelopment agency.Per City Officials,the asset qualifies as a Housing Asset in accordance to the definition of the H&S Code Section 34176. The City of Moorpark elected to be the Housing Successor obtaining Loan Receivable 1131/2012 To transfer Housing Asset to City of Moorpark as H&S Section 34176 $ 600,000 rights to keep the housing assets in the Low-Mod Fund of the former Housing Successor Housing Successor redevelopment agency.Per City Officials,the asset qualifies as a Housing Asset in accordance to the definition of the H&S Code Section 34176. The City of Moorpark elected to be the Housing Successor obtaining Loan Receivable Deferred 1/31/2012 To transfer Housing Asset to City of Moorpark as rights to keep the housing assets in the Low-Mod Fund of the former Housing Successor Housing Successor H&S Section 34176 $ 1,176,500 redevelopment agency.Per City Officials,the asset qualifies as a Housing Asset in accordance to the definition of the H&S Code Section 34176. The City of Moorpark elected to be the Housing Successor obtaining Rehabilitation Loans 1/31/2012 To transfer Housing Asset to City of Moorpark as H&S Section 34176 $ 16,383 rights to keep the housing assets in the Low-Mod Fund of the former Housing Successor Housing Successor redevelopment agency.Per City Officials,the asset qualifies as a Housing Asset in accordance to the definition of the H&S Code Section 34176. The City of Moorpark elected to be the Housing Successor obtaining Land Held for Resale 1/31/2012 To transfer Housing Asset to City of Moorpark as H&S Section 34176 $ 8 213 770 rights to keep the housing assets in the Low-Mod Fund of the former Housing Successor Housing Successor redevelopment agency.Per City Officials,the asset qualifies as a Housing Asset in accordance to the definition of the H&S Code Section 34176. 116 N 01 OVERSIGHT BOARD TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGE14CY of OF THE CITY OF MOORPARK MEETING ITEM 7.A. /0 -30 -aoi ACTION: BY: OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AGENDA REPORT TO: Oversight Board to the Successor Agency FROM: Maureen Benson, City Clerk V)",& DATE: October 17, 2012 (OB Special Meeting of 10/30/12) SUBJECT: Consider Regular Oversight Board Meeting Minutes for October 16, 2012 BACKGROUND AND DISCUSSION Staff has prepared meeting minutes for the Regular Oversight Board meeting of October 16, 2012. STAFF RECOMMENDATION Adopt Resolution approving the Regular Oversight Board meeting minutes of October 16, 2012. Attachments: 1-Regular Oversight Board meeting draft minutes of October 16, 2012 2-Draft Resolution 27 ATTACHMENT 1 MINUTES OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY COUNCIL Moorpark, California October 16, 2012 A Regular Meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark was held on October 16, 2012, in the Community Center of said City located at 799 Moorpark Avenue, Moorpark, California. 1 . CALL TO ORDER: Chairperson Hamous called the meeting to order at 3:35 p.m. 2. PLEDGE OF ALLEGIANCE: Board Member Iris Ingram led the Pledge of Allegiance. 3. ROLL CALL: Present: Board Members Ingram, Kasper, Nicks, Parvin, Priestley, and Chairperson Hamous. Absent: Board Member Burgh. Staff Present: Steven Kueny, Executive Director; Ron Ahlers, Finance Director; David Bobardt, Community Development Director; David Moe, Redevelopment Manager; and Maureen Benson, City Clerk. 4. PUBLIC COMMENT: None. 5. REORDERING OF, AND ADDITIONS TO, THE AGENDA: None. 6 PRESENTATION/ACTION/DISCUSSION: A. Consider a Public Comment Session to Consider Resolution Receiving Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund and Setting Date for Consideration of Approval. Staff Recommendation: 1) Hold a public comment session on the Independent Accountant's Report; and 2) 28 Minutes of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark California Page 2 October 16, 2012 Adopt Resolution No. OB-2012-18, receiving the Report and setting a date to consider approval. Mr. Ahlers gave the staff report. Chair Hamous opened the public comment session. There were no speakers. Chair Hamous closed the public comment session. A discussion followed among the Board Members and staff regarding the date of October 30, 2012, for a Special Oversight Board meeting to consider approval of the Independent Accountant's Report. MOTION: Board Member Parvin moved and Board Member Ingram seconded a motion to adopt Resolution No. 2012-OB-18, receiving the Independent Accountant's Report on Applying Agreed-Upon Procedures for Due Diligence Review Pursuant to Health and Safety Code Section 34179.5 for the Low and Moderate Income Housing Fund and set the date of Tuesday, October 30, 2012, at 3:30 p.m. for a Special Oversight Board meeting to consider approval of the Report. The motion carried by voice vote 6-0, Board Member Burgh absent. B. Consider Resolution Adopting the Modified Recognized Obligation Payment Schedule (ROPS 111) for January 1, 2013 to June 30, 2013. Staff Recommendation: 1) Adopt Resolution No. OB-2012-19; and 2) Direct staff to transmit the approved BOPS, with the signature of the Chairperson, to the State of California (Department of Finance, State Controller's Office), Ventura County Auditor-Controller, and post to the City's website, as per the legislation [Health and Safety Code, Section 34177(k)(2)(C)]. ROLL CALL VOTE REQUIRED Mr. Ahlers gave the staff report. There were no speakers. MOTION: Board Member Ingram moved and Board Member Parvin seconded a motion to: 1) Adopt Resolution No. OB-2012-19, adopting the modified Recognized Obligation Payment Schedule (ROPS 111) for January 1, 2013 to June 30, 2013; and 2) Direct staff to transmit the approved ROPS, with the signature of the Chairperson, to the State of California (Department of Finance, State Controller's Office), Ventura County Auditor-Controller, and post to the City's website, as per the legislation [Health and Safety Code, Section 34177(k)(2)(C)]. The motion carried by roll call vote 6-0, Board Member Burgh absent. 29 Minutes of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark California Page 3 October 16, 2012 7. CONSENT CALENDAR: MOTION: Board Member Nicks moved and Board Member Kasper seconded a motion to approve the Consent Calendar. The motion carried by voice vote 6-0, Board Member Burgh absent. A. Consider Resolution Approving the Minutes of Special Meeting of July 17, 2012. Staff Recommendation: Adopt Resolution No. OB-2012-20. B. Consider Resolution Approving Minutes of Special Meeting of August 28, 2012. Staff Recommendation: Adopt Resolution No. OB-2012-21. C. Consider Resolution Approving Minutes of Regular Meeting of September 18, 2012. Staff Recommendation: Adopt Resolution No. OB-2012-22. D. Consider Resolution Authorizing Agreement between the Successor Agency of the Redevelopment Agency of the City of Moorpark and Mike's Handyman Service for Property Maintenance at Various Properties. Staff Recommendation: Adopt Resolution No. OB-2012-23. E. Consider Resolution Authorizing Agreement between the Successor Agency of the Redevelopment Agency of the City of Moorpark and R.A. Atmore, Inc. for Weed Abatement at Various Properties. Staff Recommendation: Adopt Resolution No. OB-2012-24. F. Consider Resolution Cancelling the November 20, 2012, Regular Oversight Board Meeting. Staff Recommendation: Adopt Resolution No. OB-2012-25. 8. ANNOUNCEMENTS AND FUTURE AGENDA ITEMS: A. Announcements. Chair Hamous announced a Special meeting of the Oversight Board will be held on Tuesday, October 30, 2012, at 3:30 p.m. Chair Hamous announced on November 10-11 at Underwood Family Farms, the Moorpark Rotary Club will present "The Blue and The Gray" commemorating the 150th Anniversary of the Civil War. B. Future Agenda Items. None. 30 Minutes of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark California Page 4 October 16, 2012 9. ADJOURNMENT: MOTION: Board Member Parvin moved and Board Member Kasper seconded a motion to adjourn the meeting. The time was 3:58 p.m. Bruce Hamous, Chairperson ATTEST: Maureen Benson, City Clerk 31 ATTACH M ENT 2 RESOLUTION NO. OB-2012- A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FOR THE SPECIAL MEETING OF OCTOBER 30, 2012, APPROVING THE REGULAR OVERSIGHT BOARD MEETING MINUTES OF OCTOBER 16, 2012 WHEREAS, Section 34179 (e) of the Health and Safety Code requires all actions taken by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark be adopted by resolution; and WHEREAS, at the special meeting of October 30, 2012, the Regular Oversight Board meeting minutes of October 16, 2012, were submitted to the Oversight Board for approval (Agenda Item 7.A.). NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Approve the Regular Oversight Board meeting minutes of October 16, 2012. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 30th day of October, 2012. Bruce Hamous, Chairperson ATTEST: Maureen Benson, City Clerk 32 OVERSIGHT BOARD TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK MEETING Of ITEM 7= ACTION: OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AGENDA REPORT TO: Oversight Board to the Successor Agency FROM: Ron Ahlers, Finance Director 62,A-- DATE: October 23, 2012 (Oversight Board Special Meeting October 30, 2012) SUBJECT: Consider Resolution to Receive and File the Status Update on ROPS submittals to the State of California Department of Finance SUMMARY The State of California, Department of Finance (DOF) has responded to the Successor Agency's submittals of Recognized Obligation Payment Schedule (ROPS). DISCUSSION The Oversight Board approved the ROPS for January 1, 2013 to June 30, 2013 (ROPS III) at its special meeting of August 28, 2012. Staff submitted the report to the various agencies prior to September 1, 2012, as per AB 1484. The DOF approved of the ROPS III via a letter dated October 14, 2012. Attachment 1 is the approval letter showing the approved amount of$2,286,968. At the regularly scheduled meeting of September 18, 2012, the Oversight Board approved a revised ROPS II for the period July 1, 2012 to December 31, 2012. The DOF sent an email rejecting this revised ROPS II (attachment 2). At the regularly scheduled meeting of October 16, 2012, the Oversight Board approved a revised ROPS III. The DOF sent an email rejecting this revised ROPS III (attachment 3). FISCAL IMPACT The Successor Agency is limited to spending resources as they are listed on the ROPS. 33 Oversight Board to the Successor Agency October 30, 2012 Page 2 STAFF RECOMMENDATION 1. Adopt Resolution No. OB-2012- , receiving the report. Attachments: 1. DOF letter stating approval of ROPS III 2. DOF email rejecting the revised ROPS II 3. DOF email rejecting the revised ROPS III 4. Resolution No. 06-2012- 34 ,C �� ATTACHMENT 1 If � z W A p A ac DEPARTMENT OF EDMUND G. BROWN JR. ■ GOVERNOR FI N A N C E 9 1 5 1.. STREWr 0 BACRAMIENT13 CA ■ 95014-3706 t WWW.DDF.DA.ODV October 14, 2012 Mr. David C. Moe II, Redevelopment Manager Cityof Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Dear Mr. Moe: Subject: Recognized Obligation Payment Schedule Pursuant to Health and Safety Code(HSC) section 34177 (m), the City of Moorpark Successor Agency (Agency) submitted a Recognized Obligation Payment Schedule (ROPS III)to the California Department of Finance (Finance) on August 30, 2012 for the period of January through June 2013. Finance has completed its review of your ROPS III,which may have included obtaining clarification for various items. Based on our review,we are approving all of the items listed on your ROPS III at this time. The Agency's maximum approved Redevelopment Property Tax Trust Fund(RPTTF) distribution for the reporting period is$2,286,968 as summarized below: Approved RPTTF Distribution Amount For the period of January through June 2013 Total RPTTF funding requested for obligations $ 2,151,968 Less: Six-month.total for items) denied or reclassified as administrative cost 0 Total approved RPTTF for enforceable obligations $ 2,151,968 Plus: Allowable RPTTF distribution for administrative cost for ROPS Ili 135,000 Total RPTTF approved: $ 2,286,968 Pursuant to HSC section 34186 (a), successor agencies were required to report on the ROPS III form the,estimated obligations and actual payments associated with the January through Juno 2012 period..The amount of RPTTF approved in the above table will be adjusted by the county auditor-controller to account for differences between actual payments and past estimated obligations. Additionally,these estimates and accounts are subject to audit by the county auditor-controller and the State Controller. Please refer to the ROPS II I schedule that was used to calculate the approved RPTTF amount: http://www.dof.ca.govlredevelopment/ROPS/ROPS III Forms by Successor Anency/. 35 Mr. David C. Moe October 14, 2012 Page 2 All items listed on a future RODS are subject to a subsequent review. An item included on a future ROPS may be denied even if i#was not questioned from the preceding ROPS. The amount available from the RPTTF is the same as the property tax increment that was available prior to enactment of ABx1 26 and AB 1484. This amount is not and never was an unlimited funding source. Therefore, as a practical matter, the ability to fund the items on the ROPS with property tax is limited to the amount of funding available to the successor agency in the RPTTF. Pleose direct irigOiries to Beliz Chappuie, Supervisor or Mindy Patterson, Lead Analyst at (910)'445-1546'.. Sincerely, Ara, STEVE SZALAY Local.Govemment Consultant cc: Mr. Ron Ahlers, Finance Director, City of Moorpark Ms. Sandra Bickford, Chief Deputy, Ventura County Auditor Controller 36 ATTACHMENT 2 Ron Ahlers From: David Moe Sent: Thursday, October 11, 2012 8:17 AM To: Steve Kueny; Ron Ahlers; David Bobardt Subject: FW: Revised ROPS H to submit to the State DOF As we expected,the state rejected our ROPS II. From: Redevelopment Administration [mailto:RedevelopmentAdministration(cbdof.ca.govl Sent: Wednesday, October 10, 2012 7:30 PM To: David Moe Subject: RE: Revised ROPS II to submit to the State DOF Mr. Moe, On October 8, 2012,we received a revised Recognized Obligation Payment Schedule (ROPS II) for the City of Moorpark Successor Agency for the period of July through December 2012. Pursuant to HSC section 34183 (a), all distributions from the Redevelopment Property Tax Trust Fund covering obligations for July through December 2012 were made on June 1, 2012. Therefore, the Department of Finance is not accepting any revised ROPS II forms, and the Agency's ROPS II is hereby rejected. To the extent you added additional items to the revised ROPS II that are valid enforceable obligations,you may list them in a subsequent ROPS (subsequent to the January through June 2013 period), and we will review them at that time. Sincerely, Redevelopment Administration Department of Finance From: David Moe [mailto:dmoe @ci.moorpark.ca.usl Sent: Monday, October 08, 2012 4:11 PM To: Redevelopment Administration; Hill, Mark; christine.cohen @ ventura.org; Sandra.Bickford @ventura.org; jkanemasu(a)sco.ca.gov Cc: Steve Kueny; David Bobardt Subject: FW: Revised ROPS II to submit to the State DOF To whom this may concern: Please find the attached revised ROPS II for the Successor Agency of the Redevelopment Agency of the City of Moorpark. Please contact me if you have any questions. Thank you, David C. Moe II Redevelopment Manager City of Moorpark 799 Moorpark Avenue 1 37 ATTACHMENT 3 Ron Ahlers From: Redevelopment Administration <RedevelopmentAdministration @dof.ca.gov> Sent: Friday, October 19, 2012 1:28 PM To: David Moe; Redevelopment Administration; Hill, Mark; christine.cohen @ ventura.org; Sandra.Bickford @ventura.org;jkanemasu @sco.ca.gov Cc: Steve Kueny; Ron Ahlers; David Bobardt Subject: RE: Moorpark Revised ROPS III Pursuant to Health and Safety Code (HSC) section 34177 (m), the Moorpark Successor Agency submitted a Recognized Obligation Payment Schedule (ROPS) to the California Department of Finance (Finance) on August 30, 2012 for the period January through June 2013. Our determination on the Moorpark Successor Agency ROPS III was transmitted on October 14, 2012. Per HSC section 34177 (m), the ROPS for this period was due no later than September 1, 2012, and in compliance with that section the ROPS was submitted. As such, we will not be accepting any revised ROPS Forms, and will made our determination based on the ROPS that was received on August 30, 2012. To the extent you added additional items to the revised ROPS that are valid enforceable obligations, you may request funding for them on a subsequent ROPS and we will review and consider them at that time. Based on the foregoing, the Department of Finance returns the Oversight Board action of the Moorpark Successor Agency, and pursuant to section 34179 (h) the action is not effective. Sincerely, Department of Finance Redevelopment Agency Administration From: David Moe [mailto:dmoe@ci.moorpark.ca.usl Sent: Tuesday, October 16, 2012 5:15 PM To: Redevelopment Administration; Hill, Mark; christine.cohen @ ventura.org; Sandra.Bickford @ventura.org; jkanemasu @sco.ca.gov Cc: Steve Kueny; Ron Ahlers; David Bobardt Subject: Moorpark Revised ROPS III To whom this concerns: On October 16, 2012, the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark approved the attached revised ROPS 111. Please let me know if you concur with this action. Have a good day, David C. Moe II Redevelopment Manager City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 Office: 805-517-6217 1 38 Attachment 4 RESOLUTION NO. OB-2012- A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FOR THE SPECIAL MEETING OF OCTOBER 30, 2012, RECEIVING STATUS UPDATE ON RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) SUBMITTALS TO THE STATE OF CALIFORNIA DEPARTMENT OF FINANCE WHEREAS, Section 34179 (e) of the Health and Safety requires all actions taken by the Oversight Board of the Successor Agency of the Redevelopment Agency of the City of Moorpark be adopted by resolution; and WHEREAS, on October 30, 2012 the Status update on ROPS submittals to the State of California Department of Finance was submitted to the Oversight Board for its review (Agenda Item 7.13.). NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Status update on ROPS submittals to the State of California Department of Finance is hereby received, SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 30th day of October, 2012. Bruce Hamous, Chair ATTEST: Maureen Benson, City Clerk 39 OVERSIGHT BOARD TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK MEETING of /o-30 .201A TEM 7.C. ACTION: — � 9 . BY: OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AGENDA REPORT TO: Oversight Board to the Successor Agency FROM: Ron Ahlers, Finance Director(_�)+ DATE: October 22, 2012 (Oversight Board Special Meeting October 30, 2012) SUBJECT: Consider Resolution Receiving Independent Accountant's Report on Applying Agreed-Upon Procedures Pursuant to ABx1 26, Community Redevelopment Dissolution SUMMARY On June 29, 2011, as part of adopting the State of California Fiscal Year 2011-12 budget, the Governor signed two trailer bills, ABX1 26 ("Dissolution Act") and ABX1 27 ("Voluntary Alternative Redevelopment Program"), into law. The legislation became effective on June 29, 2011. The California Redevelopment Association and League of California Cities sued the State of California on the grounds that ABX1 26 and 27 were unconstitutional. The California Supreme Court upheld ABX1 26 and declared ABX1 27 unconstitutional. This ruling eliminated redevelopment agencies throughout California as of February 1, 2012. Health and Safety Code section 34182(a)(1) states, "The County Auditor-Controller shall conduct or cause to be conducted an agreed-upon-procedures audit of each redevelopment agency in the county that is subject to his part, to be completed by March 1, 2012." The attached report is the agreed-upon-procedures audit mentioned above. Staff is requesting the Oversight Board consider the attached Resolution to receive Independent Accountant's Report on Applying Agreed-Upon Procedures Pursuant to ABx1 26, Community Redevelopment Dissolution. 40 Oversight Board to the Successor Agency October 30, 2012 Page 2 DISCUSSION The County Auditor-Controller selected the firm of Brown Armstrong Accountancy Corporation to conduct the agreed-upon-procedures audit. The audit firm conducted their audit the week of June 11, 2012. The attached report is dated September 24, 2012. Staff received this report, via email, on October 19, 2012. FISCAL IMPACT None. STAFF RECOMMENDATION 1. Adopt Resolution No. OB-2012- , receiving the report. Attachments: 1. Resolution No. 06-2012- 2. Independent Accountant's Report on Applying Agreed-Upon Procedures Pursuant to ABx1 26, Community Redevelopment Dissolution 41 Attachment 1 RESOLUTION NO. OB-2012- A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FOR THE SPECIAL MEETING OF OCTOBER 30, 2012, RECEIVING INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES PURSUANT TO A13X1 26, COMMUNITY REDEVELOPMENT DISSOLUTION WHEREAS, Section 34179 (e) of the Health and Safety requires all actions taken by the Oversight Board of the Successor Agency of the Redevelopment Agency of the City of Moorpark be adopted by resolution; and WHEREAS, on October 30, 2012 the Independent Accountant's Report on Applying Agreed-Upon Procedures Pursuant to ABx1 26, Community Redevelopment Dissolution was submitted to the Oversight Board for its review (Agenda Item 7.C.). NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Independent Accountant's Report on Applying Agreed-Upon Procedures Pursuant to ABx1 26, Community Redevelopment Dissolution is hereby received, SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 30th day of October, 2012. Bruce Hamous, Chair ATTEST: Maureen Benson, City Clerk 42 ATTACHMENT 2 ` INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED-UPON PROCEDURES „3 Ventura County Auditor-Controller/Oversight Board of the Successor Agency City of Moorpark Moorpark, California 93021 MA! We We have performed the minimum required agreed-upon procedures (AUP) _�� enumerated in Attachment A, which were agreed to by the California State �xooTRUxTUWAVExuE Controller's Office, Department of Finance, and Ventura County Auditor-Controller, "WIFE solely to assist you in ensuring that the dissolved redevelopment agency is complying rqs EtCtc��33r with its statutory requirements with respect to ABX1 26. Management of the = successor agency and the County of Ventura are responsible for the accounting pertaining statutory p pursuant to Health and Safety Code . records ertainin to statuto compliance ' t bb���4 a ?"":° Section 34182(a)(1). This agreed-upon procedures engagement was conducted in -tll E{ stc ana accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the o- 360 1+13°RLSLAYEN11JE, responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. Z,�-VMAr The scope of this engagement was limited to performing the minimum required 8050 ALh[AYE IUE, lfl agreed-upon procedures and additional procedures identified by the Ventura County g Auditor-Controller as set forth in Attachment A. The results of the procedures L �vt performed are also listed under each related testing step in Attachment A. _N gn We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion as to the appropriateness of the results summarized in Attachment A. Accordingly, we do not express such an opinion. Had we performed IM U � additional procedures, other matters might have come to our attention that would have been reported to you. a This report is intended solely for the information and use of the Ventura County Auditor-Controller, the successor agency, and applicable State agencies, and is not intended to be, and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report, which is a matter of public record. f BROWN ARMSTRONG _• ACCOUNTANCY CORPORATION ;' . � M s ' v r � t " ' Bakersfield, California t � September 24, 2012 .fis}M AIYNrIw, CIZTdG"" 6ECvISr.R�G�1�'tt11<F�blrr� mr.a+r Acca.nti, i 4cr ghi E1e�d a_t MSABER4Lf.' "ric�thatULeu' Cat't8e�if',ihac',4..ccvntar;U .r _ 43 Attachment A—Agreed-Upon Procedures Engagement Pursuant to ABX1 26, Community Redevelopment Dissolution Purpose. To establish each redevelopment agency's assets and liabilities, to document and determine each redevelopment agency's pass-through payment obligations to other taxing agencies, and to document and determine both the amount and the terms of any indebtedness incurred by the redevelopment agency and certify the initial recognized obligation payment schedule. (Health and Safety Code Section 34182(a)(2)j In conformity with attestation standards, the language in each separate report for each agency will need to be specific as to the type of documents that were examined in performing the procedure. A. RDA Dissolution and Restrictions ❑ For each redevelopment agency dissolved, perform the following: 1. Obtain a copy of the enforceable obligation payment schedule (EOPS) for the period of August 1, 2011, through December 31, 2011. Trace the redevelopment project name or area (whichever applies) associated with the obligations, the payee, a description of the nature of the work/service agreed to, and the amount of payments made by month through December 31, 2011, and compare it to the legal document(s) that forms the basis for the obligations. Since amount could be estimated, determine that they are stated as such and that legal documentation supports those estimates. Result: We noted the following exception: A) Estimated amounts existed on the EOPS; however, they were not stated as such on the EOPS form. 2. Obtain a copy of all amended EOPS filed during the period of January 1, 2012, through June 30, 2012. Trace the redevelopment project name or area (whichever applies) associated with the obligations, the payee, a description of the nature of the work/service agreed to, and the amount of payments to be made by month through June 30, 2012, and compare it to the legal document(s) that forms the basis for the obligations. Again, since amount could be estimated, determine that they are stated as such and that legal documentation supports those estimates. Result: We noted the following exception: A) Estimated amounts existed on the amended EOPS; however, they were not stated as such on the form. 3. Identify any obligations listed on the EOPS that were entered into after June 29, 2011, by inspecting the date of incurrence specified on Form A of the Statement of Indebtedness filed with the Ventura County Auditor-Controller, which was filed on or before October 1, 2011. Result: We found no exceptions as a result of the procedures performed. 44 4. Inquire and specifically state in the report the manner in which the agency did or did not execute a transfer of the Low and Moderate Income Housing Fund to the redevelopment successor agency by February 1, 2012. Procedures to accomplish this might include changing the name of the accounting fund and related bank accounts that are holding these assets for the successor agency. If the successor agency is a party other than the agency that created the redevelopment agency, an examination of bank statements and changing of account titles and fund names evidencing such transfer will be sufficient. Result: We noted the redevelopment agency executed a transfer of the Low and Moderate Income Housing Fund #2901 to the Successor Agency Fund #2203 by February 1, 2012. We obtained a summary of Journal Vouchers that executed the transfer of assets and liabilities from the RDA Low and Moderate Income Housing Fund. 5. Inquire and specifically state in the report how housing activities (assets and functions, rights, powers, duties, and obligations) were transferred and the manner in which this agency did or did not execute a transfer. Procedures to accomplish this might include changing the name of the accounting fund and related bank accounts that are holding these assets for the other agency. An examination of bank statements and changing of account titles and fund names evidencing such transfers will be sufficient. If the housing successor is a party other than the agency that created the redevelopment agency, an examination of bank statements and re-recording of titles evidencing such transfer will be sufficient. Result: We noted that on January 4,2012, per Resolution No. 2012-3079, the Moorpark City Council elected for the City to retain all housing assets and functions previously held and performed by the redevelopment agency, including all rights, powers, liabilities, duties, and obligations. Procedures to accomplish this included changing the related fund and bank account. B. Successor Agency 1. Inspect evidence that a successor agency (A) has been established by February 1, 2012, and (B)the successor agency oversight board has been appointed, with names of the successor agency oversight board members, which must be submitted to the Department of Finance by May 1, 2012. Result: We found no exceptions as a result of the procedures performed. 2. Inquire regarding the procedures accomplished and specifically state in the report the manner in which this agency did or did not execute a transfer of operations to the successor agency, which was due by February 1, 2012. Procedures to accomplish this might include changing the name of the accounting fund and related bank accounts that are holding these assets for the successor agency. If the successor agency is a party other than the agency that created the redevelopment agency, an examination of bank statements and changing of account titles and fund names evidencing such transfers will be sufficient. Result: We noted the procedures to accomplish the execution of transfer of operations to the successor agency included changing the related funds from#2901, 2902, 2904, 2905, 3901, 3902, and 3903 to #9100-9107 and 2203, as well as opening two new bank accounts. 3. Ascertain that the successor agency has established the Redevelopment Obligation Retirement Fund(s) in its accounting system. Result: We found no exceptions as a result of the procedures performed. 45 4. Inspect the EOPS and ROPS and identify the payments that were due to be paid through the date of the AUP Report. We tested 100% of non-payroll payment expenditure items over $10,000, which constituted 96% of the total non-payroll amount. We also tested 74% of payroll payment expenditure items as determined by the Ventura County Auditor-Controller and compared the payments that were due to be paid through the date of the AUP Report to a copy of the cancelled check or other documentation supporting the payment. Result: We found no exceptions as a result of the procedures performed. 5. Obtain listings that support the asset figures (cash, investments, accounts receivable, notes, receivables, fixed assets, etc.) in the audited financial statements as of June 30, 2010, June 30, 2011, and as of January 31, 2012, as determined by the successor agency and include as an attachment to the AUP Report. Result: We found no exceptions as a result of the procedures performed. Please see Attachment B for listings that support the asset figures. 6a. Identify the transfers that were made from June 27, 2011, through the date of the Agreed-Upon Procedures Report to confirm that there have been no transfer of assets from the RDA to the City. Result: We found no exceptions as a result of the procedures performed. 6b. Verify any cash balances in the Redevelopment Obligation Retirement Fund, and state in the report the moneys that have been moved into this fund. Result: We verified that no cash funds were moved into the successor agency Redevelopment Obligation Retirement Fund#9100. We found no exceptions as a result of the procedures performed. C. Recognized Obligation Payment Schedule(Draft ROPS) C Obtain a copy of the initial draft of the ROPS from the successor agency. 1. Inspect evidence that the initial draft of the ROPS was prepared by March 1, 2012. Result: We found no exceptions as a result of the procedures performed. 2. Note in the minutes of the Oversight Board that the draft ROPS has been approved by the Oversight Board. If the Oversight Board has not yet approved the draft ROPS as of the date of the AUP Report, this should be mentioned in the AUP Report. Result: We noted the following exception: A) We obtained minutes of the first Oversight Board meeting and noted that the draft ROPS was not approved; rather, the final ROPS was approved on April 17, 2012. 46 3. Inspect evidence that a copy of the draft ROPS was submitted to the Ventura County Auditor- Controller, State Controller, and Department of Finance. Result: We noted the following exception: A) No evidence was available to verify that the draft ROPS was submitted to the Ventura County Auditor-Controller, State Controller, and Department of Finance. 4. Inspect evidence that the draft ROPS includes monthly scheduled payments for each enforceable obligation for the current six-month reporting time period. Result: We found no exceptions as a result of the procedures performed. 5. We tested 100% of enforceable obligations over $10,000 as determined by the Ventura County Auditor-Controller, and traced the enforceable obligations listed on the draft ROPS to the legal document that forms the basis for the obligation. Result: We found no exceptions as a result of the procedures performed. 6. Trace the obligations enumerated on the draft ROPS to the obligations enumerated on the EOPS (including amendments) and note any material differences over$10,000 as agreed to by the Ventura County Auditor-Controller. Result: We noted certain material differences as listed in Attachment C. D. Recognized Obligation Payment Schedule(Final ROPS) ❑ Obtain a copy of the final ROPS (January 1, 2012, through June 30, 2012) from the successor agency. 1. Inspect evidence that the final ROPS was submitted to the Ventura County Auditor-Controller, the State Controller, and Department of Finance by April 15, 2012, and is posted on the website of the City/County as successor agency(Health and Safety Code Section 34177(2)(C)). Result: We noted the following exception: A) We obtained evidence that a previous final ROPS, which was approved and signed April 18, 2012, was submitted to the Ventura County Auditor-Controller, the State Controller, and Department of Finance on May 1, 2012. However, there was an amended final ROPS approved on May 16, 2012, for which no evidence of submittal to the Ventura County Auditor-Controller, State Controller, and Department of Finance was provided. We also noted that the final ROPS was not posted on the website of the successor agency. 47 2. Inspect the final ROPS and identify the payments that were due to be paid through the date of the Agreed-Upon Procedures report. For payments on the ROPS that were identified as being due through the date of the Agreed-Upon Procedures Report, inspect evidence of payment and determine that amounts agree to the purpose of the obligation as amounts could be estimated. Result: We found no exceptions as a result of the procedures performed. 3. We tested 100% of enforceable obligations over $10,000 as determined by the Ventura County Auditor-Controller, and traced the enforceable obligations listed on the final ROPS to the legal agreements or documents that forms the basis for the obligation. Result: We found no exceptions as a result of the procedures performed. E. Other Procedures ❑ Obtain a list of pass-through obligations and payment schedules. 1. Obtain a list of pass-through obligations and payments made from the redevelopment agency from July 1, 2011, through January 31, 2012, inspect evidence of payment, and note any differences from the list of pass-through obligations and payments made. Result: We found no exceptions as a result of the procedures performed. ❑ Issue Agreed-Upon Procedures Report and distribute to the California State Controller by July 15, 2012. Result: AB 1484 has extended the due date for the agreed-upon procedures report to October 1, 2012. We will submit the report to the California State Controller on or before October 1, 2012. 48 Attachment B—List of Assets for the Successor Agency of the City of Moorpark Redevelopment Agency June 30, 2010 June 30, 2011 January 31, 2012 ASSETS Cash and Investments $ 15,417,172 $ 12,595,695 $ 7,132,266 Receivables: Accounts 25,894 19,830 8,528 Interest 1,281,499 20,745 - Notes 2,053,616 616,384 616,384 Property Held for Resale/Development 19,428,853 20,795,867 20,795,867 Restricted Cash and Investments 2,178,925 1,884,771 2,539,692 Debt Issuance Costs 446,605 429,753 419,748 Total Assets $ 40,832,564 $ 36,363,045 $ 31,512,485 49 Attachment B-1—List of Assets for the Successor Agency of the City of Moorpark Redevelopment Agency by Fund: June 30, 2010 FUND- 2901 - LOW/MOD INCOME HSNG FUND Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 258,091.57 $ - $ 258,091.57 1307 REHAB LOANS-PRINCIPAL REC 16,383.74 - 16,383.74 1308 NOTES RECEIVABLE 332,446.20 - 332,446.20 1315 YEAR-END ACCRUALS 5,178.68 - 5,178.68 1506 LAND FOR RESALE OR LEASE 7,887,425.44 - 7,887,425.44 Total Assets $ 8,499,525.63 $ - $ 8,499,525.63 FUND- 2902- MRA OPERATING FUND Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 4,124,352.60 $ 10,689.00 $ 4,113,663.60 1198 PETTY CASH 1,500.00 - 1,500.00 1302 INTEREST RECEIVABLE 1,253,180.54 (10,689.00) 1,263,869.54 1308 NOTES RECEIVABLE 1,704,786.00 - 1,704,786.00 1315 YEAR-END ACCRUALS 20,714.67 - 20,714.67 1506 LAND FOR RESALE OR LEASE 7,142,621.93 - 7,142,621.93 Total Assets $ 14,247,155.74 $ - $ 14,247,155.74 50 FUND-2904- MRA 2001 TAB PROCEEDS Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 1,381,694.64 $ 2,329.00 $ 1,379,365.64 1302 INTEREST RECEIVABLE - (2,329.00) 2,329.00 1506 LAND FOR RESALE OR LEASE 4,398,805.79 - 4,398,805.79 Total Assets $ 5,780,500.43 $ - $ 5,780,500.43 FUND-2905-MRA 2006 TAB PROCEEDS Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 9,679,851.51 $ 15,301.00 $ 9,664,550.51 1302 INTEREST RECEIVABLE - (15,301.00) 15,301.00 Total Assets $ 9,679,851.51 $ - $ 9,679,851.51 FUND-3901 - 1999 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1202 CASH W/FISCAL AGENT-RDA $ 1,065,302.56 $ - $ 1,065,302.56 Total Assets $ 1,065,302.56 $ - $ 1,065,302.56 FUND-3902-2001 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1202 CASH W/FISCAL AGENT-RDA $ 584,675.10 $ - $ 584,675.10 Total Assets $ 584,675.10 $ - $ 584,675.10 51 FUND-3903-2006 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1202 CASH W/FISCAL AGENT-RDA $ 528,948.00 $ - $ 528,948.00 Total Assets $ 528,948.00 $ - $ 528,948.00 OTHER LONG TERM ASSETS: DEBT ISSUANCE COSTS $ 446,605.00 TOTAL ASSETS $ 40,832,563.97 52 Attachment B-2—List of Assets for the Successor Agency of the City of Moorpark Redevelopment Agency by Fund: June 30, 2011 Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 572,044.88 $ 546.00 $ 571,498.88 1301 ACCOUNTS RECEIVABLE 4,108.00 - 4,108.00 1302 INTEREST RECEIVABLE - (546.00) 546.00 1304 LOANS RECEIVABLE 600,000.00 - 600,000.00 1307 REHAB LOANS-PRINCIPAL REC 16,383.74 - 16,383.74 1315 YEAR-END ACCRUALS 3,144.60 - 3,144.60 1506 LAND FOR RESALE OR LEASE 8,302,304.47 - 8,302,304.47 Total Assets $ 9,497,985.69 $ - $ 9,497,985.69 FUND -2902- MRA OPERATING FUND Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 3,507,577.71 $ 7,676.00 $ 3,499,901.71 1198 PETTY CASH 1,500.00 - 1,500.00 1302 INTEREST RECEIVABLE - (7,676.00) 7,676.00 1315 YEAR-END ACCRUALS 12,578.37 - 12,578.37 1506 LAND FOR RESALE OR LEASE 6,856,423.93 - 6,856,423.93 Total Assets $ 10,378,080.01 $ - $ 10,378,080.01 53 FUND-2904- MRA 2001 TAB PROCEEDS Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 495,087.90 $ 718.00 $ 494,369.90 1302 INTEREST RECEIVABLE - (718.00) 718.00 1506 LAND FOR RESALE OR LEASE 5,111,349.45 - 5,111,349.45 Total Assets $ 5,606,437.35 $ - $ 5,606,437.35 FUND-2905- MRA 2006 TAB PROCEEDS Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 7,714,743.69 $ 11,805.00 $ 7,702,938.69 1302 INTEREST RECEIVABLE - (11,805.00) 11,805.00 1506 LAND FOR RESALE OR LEASE 525,789.48 - 525,789.48 Total Assets $ 8,240,533.17 $ - $ 8,240,533.17 FUND-3901 - 1999 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 325,486.39 $ - $ 325,486.39 1202 CASH W/FISCAL AGENT-RDA 771,148.31 - 771,148.31 Total Assets $ 1,096,634.70 $ - $ 1,096,634.70 FUND-3902-2001 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1101 B OF A CONCENTRATION $ - $ - $ - 1121 BOFAMRA - - - 1202 CASH W/FISCAL AGENT-RDA 584,675.59 - 584,675.59 1315 YEAR-END ACCRUALS - - - 1402 DUE/MRA AGENCY - - - Total Assets $ 584,675.59 $ - $ 584,675.59 54 FUND- 3903-2006 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1202 CASH W/FISCAL AGENT-RDA 528,947.48 - 528,947.48 Total Assets $ 528,947.48 $ - $ 528,947.48 OTHER LONG TERM ASSETS: DEBT ISSUANCE COSTS $ 429,753.00 TOTAL ASSETS $ 36,363,046.99 55 Attachment B-3—List of Assets for the Successor Agency of the City of Moorpark Redevelopment Agency by Fund:January 31, 2012 FUND- 2901 - LOW/MOD INCOME HSNG FUND Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 310,366.62 $ - $ 310,366.62 1301 ACCOUNTS RECEIVABLE 5,658.00 - 5,658.00 1304 LOANS RECEIVABLE 600,000.00 - 600,000.00 1307 REHAB LOANS-PRINCIPAL REC 16,383.14 - 16,383.14 1506 LAND FOR RESALE OR LEASE 8,302,304.47 - 8,302,304.47 Total Assets $ 9,234,712.23 $ - $ 9,234,712.23 FUND-2902-MRA OPERATING FUND Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 1,186,591.71 $ - $ 1,186,591.71 1198 PETTY CASH 1,500.00 - 1,500.00 1301 ACCOUNTS RECEIVABLE 2,870.00 - 2,870.00 1506 LAND FOR RESALE OR LEASE 6,856,423.93 - 6,856,423.93 Total Assets $ 8,047,385.64 $ - $ 8,047,385.64 56 FUND- 2904- MRA 2001 TAB PROCEEDS Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 494,164.18 $ - $ 494,164.18 1506 LAND FOR RESALE OR LEASE 5,111,349.45 - 5,111,349.45 Total Assets $ 5,605,513.63 $ - $ 5,605,513.63 FUND- 2905- MRA 2006 TAB PROCEEDS Year to Date Current Account Description Debit Credit Balance ASSETS 1121 B OF A MRA $ 5,139,643.54 $ - $ 5,139,643.54 1506 LAND FOR RESALE OR LEASE 525,789.48 - 525,789.48 Total Assets $ 5,665,433.02 $ - $ 5,665,433.02 FUND-3901 - 1999 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1202 CASH W/FISCAL AGENT-RDA $ 890,878.91 $ - $ 890,878.91 Total Assets $ 890,878.91 $ - $ 890,878.91 FUND-3902-2001 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1202 CASH W/FISCAL AGENT-RDA $ 872,645.76 $ - $ 872,645.76 Total Assets $ 872,645.76 $ - $ 872,645.76 57 FUND-3903-2006 MRA TAB DEBT SERVICE Year to Date Current Account Description Debit Credit Balance ASSETS 1202 CASH W/FISCAL AGENT-RDA $ 776,167.39 $ - $ 776,167.39 Total Assets $ 776,167.39 $ - $ 776,167.39 OTHER LONG TERM ASSETS: DEBT ISSUANCE COSTS $ 419,748.00 TOTAL ASSETS $31,512,484.58 58 Attachment C—Material Differences Amount per Amount per Descriptions of Obligation Amended EOPS the Draft ROPS Differences 1 Bond Trustee $ - $ 10,000.00 $ (10,000.00) 2 Administrative Fees - 250,000.00 (250,000.00) 3 Bond Disclosures - 10,000.00 (10,000.00) 4 Bond Arbitrage Calks - 10,000.00 (10,000.00) 5 Ruben Castro Human Services Center - 30,400.00 (30,400.00) 6 Ruben Castro Human Services Center - 366,300.00 (366,300.00) 7 Ruben Castro Human Services Center - 217,800.00 (217,800.00) 8 Ruben Castro Human Services Center - 66,400.00 (66,400.00) 9 Ruben Castro Human Services Center - 125,600.00 (125,600.00) 10 Ruben Castro Human Services Center - 164,500.00 (164,500.00) 11 Ruben Castro Human Services Center - 1,000.00 (1,000.00) 12 Legal - 30,000.00 (30,000.00) 13 Watershed Protection District - 10,000.00 (10,000.00) 14 Ruben Castro Human Services Center - 120,000.00 (120,000.00) Total $ - $ 1,412,000.00 $ (1,412,000.00) 59