HomeMy WebLinkAboutAGENDA REPORT 2015 0121 CCSA REG ITEM 10L :,,1''Y OF MO'•RPARP,CAUFOH.'
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SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE
CITY OF MOORPARK
AGENDA REPORT
TO: Honorable Successor Agency
FROM: Ron Ahlers, Finance Director ' v
DATE: December 31, 2014 (Successor Agency Meeting January 21, 2015)
SUBJECT: Consider Asset Transfer Review Report by the State Controller's
Office
SUMMARY
During July 2014 the State Controller's Office (SCO) reviewed all asset transfers from
the former Redevelopment Agency of the City of Moorpark (RDA) for the period January
1, 2011 through January 31, 2012. The attached report discusses the review and
concludes with a "Finding and Order of the Controller". Please recall the dissolution
date for the former RDA was January 31, 2012. The Successor Agency was created on
February 1, 2012.
Staff is requesting the Successor Agency consider the Asset Transfer Review report by
the SCO and receive and file the report.
DISCUSSION
The attached report states, "Our review found that the RDA transferred $31,811,477 in
assets after January 1, 2011, including unallowable transfers to the City of Moorpark
totaling $812,004..." Pursuant to State law, the former RDA transferred its assets,
liabilities and fund balance to the Successor Agency on February 1, 2012. The
"unallowable transfers" to the City represent the land and improvements for the parking
lot for the post office on High Street. The SCO has ordered the City to return these
assets to the Successor Agency. However, the Successor Agency has listed the
parking lot as "government use" on the Long Range Property Management Plan
(LRPMP). The Successor Agency has submitted the LRPMP to the Department of
Finance (DOF) for a determination. The DOF has not made a determination on the
LRPMP.
159
Successor Agency
January 21, 2015
Page 2
Page 3 of the SCO report states:
Pursuant to H&S Code section 34167.5, the City is ordered to reverse
the transfer of land and land improvement totaling $812,004 and turn
over the assets to the Successor Agency.
The Successor Agency currently is awaiting approval of the LRPMP.
Upon approval by the Department of Finance, no further action on the
$812,004 in unallowable transfers will be necessary. However, if the
LRPMP is not approved, the Finding and Order of the Controller will
remain as stated.
If the DOF determines the parking lot is "government use" then the City can retain
ownership of the parking lot. If the DOF determines the parking lot is not "government
use", then the SCO has ordered the City to return the parking lot to the Successor
Agency.
FISCAL IMPACT
None.
STAFF RECOMMENDATION
Receive and file the Asset Transfer Review report by the SCO.
Attachments:
1. Asset Transfer Review Report by the State Controller's Office
160
REDEVELOPMENT AGENCY
OF THE CITY OF MOORPARK
Review Report
ASSET TRANSFER REVIEW
January 1, 2011, through January 31, 2012
JOHN CHIANG
California State Controller
December 2014
Attachment 1
161
Ron Ahlers, Finance Director
City of Moorpark
799 Moorpark A venue
Moorpark, CA 93021
Dear Mr. Ahlers:
JOHN CHIANG
Qlalifornia ~tate Qlontroller
December 17, 2014
Pursuant to Health and Safety Code section 34167.5, the State Controller's Office (SCO)
reviewed all asset transfers made by the Redevelopment Agency of the City of Moorpark (RDA)
to the City of Moorpark (City) or any other public agency after January I, 2011. This statutory
provision states, "The Legislature hereby finds that a transfer of assets by a redevelopment
agency during the period covered in this section is deemed not to be in furtherance of the
Community Redevelopment Law and is thereby unauthorized." Therefore, our review included
an assessment of whether each asset transfer was allowable and whether the asset should be
turned over to the Successor Agency.
Our review applied to all assets including but not limited to, real and personal property, cash
funds, accounts receivable, deeds of trust and mortgages, contract rights, and rights to payment
of any kind. We also reviewed and determined whether any unallowable transfers of assets to the
City or any other public agency have been reversed.
Our review found that the RDA transferred $31,811,477 in assets after January I, 2011,
including unallowable transfers to the City of Moorpark totaling $812,004, or 2.55% of
transferred assets. These assets must be turned over to the Successor Agency.
If you have any questions, please contact Elizabeth Gonzalez, Chief, Local Government
Compliance Bureau, by telephone at (916) 324-0622 or by email at egonzalez@sco.ca.gov.
Sincerely,
Original signed by
JEFFREY V. BROWNFIELD, CPA
Chief, Division of Audits
JVB/kw
162
Ron Ahlers, Finance Director
cc: Jeffery Burgh, Auditor-Controller
Ventura County
Bruce Hamous, Chair
Oversight Board
David Botelho, Program Budget Manager
California Department of Finance
Richard J. Chivaro, Chief Legal Counsel
State Controller's Office
Elizabeth Gonzalez, Bureau Chief
-2-
Division of Audits, State Controller's Office
Scott Freesmeier, Audit Manager
Division of Audits, State Controller's Office
Steven Noguchi, Auditor-in-Charge
Division of Audits, State Controller's Office
December 17, 2014
163
Redevelopment Agency of the City of Moorpark Asset Transfer Review
Contents
Review Report
Summary ........................................................................................................................... .
Background ....................................................................................................................... .
Objective, Scope, and Methodology................................................................................. 2
Conclusion.......................................................................................................................... 2
Views of Responsible Officials.......................................................................................... 2
Restricted Use.................................................................................................................... 2
Finding and Order of the Controller ...................................... ....................... ...................... 3
Schedule 1-Unallowable Asset Transfers to City of Moorpark...................................... 4
164
Redevelopment Agency of the City of Moorpark Asset Transfer Review
Asset Tran sf er Review Report
Summary
Background
The State Controller's Office (SCO) reviewed the asset transfers made
by the Redevelopment Agency of the City of Moorpark (RDA) after
January I, 20 I I. Our review included, but was not limited to, real and
personal property, cash funds, accounts receivable, deeds of trust and
mortgages, contract rights, and rights to payments of any kind from any
source.
Our review found that the RDA transferred $31,811,477 in assets after
January I, 20 I I, including unallowable transfers to the City of Moorpark
(City) totaling $812,004, or 2.55% of transferred assets. These assets
must be turned over to the Successor Agency.
In January of 2011, the Governor of the State of California proposed
statewide elimination of redevelopment agencies (RDAs) beginning with
the fiscal year (FY) 2011-12 State budget. The Governor's proposal was
incorporated into Assembly Bill 26 (ABX I 26, Chapter 5, Statutes of
2011, First Extraordinary Session), which was passed by the Legislature,
and signed into law by the Governor on June 28, 2011.
ABX I 26 prohibited RDAs from engaging in new business, established
mechanisms and timelines for dissolution of the RDAs, and created RDA
successor agencies and oversight boards to oversee dissolution of the
RD As and redistribution of RDA assets.
A California Supreme Court decision on December 28, 2011 (California
Redevelopment Association et al. v. Matosantos ), upheld ABX I 26 and
the Legislature's constitutional authority to dissolve the RDAs.
ABX I 26 was codified in the Health and Safety (H&S) Code beginning
with section 34161.
H&S Code section 34167.5 states in part," ... the Controller shall review
the activities of redevelopment agencies in the state to determine whether
an asset transfer has occurred after January I, 2011, between the city or
county, or city and county that created a redevelopment agency or any
other public agency, and the redevelopment agency."
The SCO identified asset transfers that occurred after January I, 2011,
between the RDA, the City and/or any other public agency. By law, the
SCO is required to order that such assets, except those that already had
been committed to a third party prior to June 28, 2011, the effective date
of ABX! 26, be turned over to the Successor Agency. In addition, the
SCO may file a legal action to ensure compliance with this order.
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165
Redevelopment AgenGy of /he City of Moorpark Asset Transfer Review
Objective, Scope,
and Methodology
Conclusion
Views of
Responsible
Officials
Restricted Use
Our review objective was to determine whether asset transfers that
occurred after January I, 2011, and the date upon which the RDA ceased
to operate, or January 31, 2012, whichever was earlier, between the city
or county, or city and county that created an RDA or any other public
agency, and the RDA, were appropriate.
We perfonned the following procedures:
• Interviewed Successor Agency personnel to gain an understanding of
the Successor Agency's operations and procedures.
• Reviewed meeting minutes, resolutions, and ordinances of the City,
the RDA, the Successor Agency, and the Oversight Board.
• Reviewed accounting records relating to the recording of assets.
• Verified the accuracy of the Asset Transfer Assessment Fonn. This
fonn was sent to all fonner RDAs to provide a list of all assets
transferred between January I, 2011, and January 31, 2012.
o Reviewed applicable financial reports to verify assets (capital, cash,
property, etc.).
Our review found that the Redevelopment Agency of the City of
Moorpark transferred $31,811,477 in assets after January I, 2011,
including unallowable transfers to the City of Moorpark totaling
$812,004, or 2.55% of transferred assets. These assets must be turned
over to the Successor Agency.
Details of our finding are described in the Finding and Order of the
Controller section of this report.
At an exit conference on July 31, 2014, we discussed the review results
with Ron Ahlers, Finance Director, who agreed with the review results.
Mr. Ahlers further agreed that a draft review report was not necessary
and that the report could be issued as final.
This report is solely for the infonnation and use of the City of Moorpark,
the Successor Agency, the Oversight Board, and the SCO. It 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 when issued final.
Original signed by
JEFFREY V. BROWNFIELD, CPA
Chief, Division of Audits
December 17, 2014
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166
Redevelopment Agency of the City of Moorpark Asset Transfer Review
Finding and Order of the Controller
FINDING-
Unallowable asset
transfers to the
City of Moorpark
The Redevelopment Agency of the City of Moorpark (RDA) made
unallowable transfers totaling $812,004 to the City of Moorpark (City).
The transfers occurred after January I, 2011, and the assets were not
contractually committed to a third party prior to June 28, 2011.
On January 17, 2011, the RDA transferred $334,000 in land (APN 512-
0-090-050) and $478,004 in associated land improvements totaling
$812,004, to the City. The land and land improvements were
subsequently included on the Long-Range Property Management Plan
(LRPMP).
Health and Safety (H&S) Code section 34167.5 states that any assets
transferred by the RDA to a city, county, city and county, or any other
public agency after January I, 2011, that were not contractually
committed to a third party, must be returned to the Successor Agency for
disposition in accordance with H&S Code sections 34177(d) and (e).
Order of the Controller
Pursuant to H&S Code section 34167 .5, the City is ordered to reverse the
transfer of land and land improvements totaling $812,004 and tum over
the assets to the Successor Agency.
The Successor Agency currently is awaiting approval of the LRPMP.
Upon approval by the Department of Finance, no further action on the
$812,004 in unallowable transfers will be necessary. However, if the
LRPMP is not approved, the Finding and Order of the Controller will
remain as stated.
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167
Redevelopment Agency of the City of Moorpark
Schedule 1-
U nallowable Asset Transfers to
the City of Moorpark
Asset Transfer Review
January 1, 2011, through January 31, 2012
Date
January 17,2011
January 17, 2011
APN
512-0-090-050
512-0-090-050
Total unallowable transfers to the City of Moorpark
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Description
Land
Land improvement
$
$
334,000
478,004
812,004
168
SIS-RDA-9006
State Controller's Office
Division of Audits
Post Office Box 942850
Sacramento, CA 94250-5874
http://www.sco.ca.gov
169