HomeMy WebLinkAbout10/15/12 OVERSIGHT BOARD SPECIALSPECIAL MEETING OF THE OVERSIGHT BOARD
TO THE SUCCESSOR AGENCY
OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY
AGENDA
Monday, October 15, 2012
9;00 a.m.
City Hall North - Conference Room A
1600 Truxtun Avenue
Bakersfield, CA 93301
1. ROLL CALL
2. PUBLIC STATEMENTS
3. NEW BUSINESS
a. Minutes of the October 5, 2012 special meeting
b. Resolution of the Oversight Board to the Successor Agency of the Dissolved
Bakersfield Redevelopment Agency approving the Due Diligence reviews of the
Successor Agency of the Dissolved City of Bakersfield Redevelopment Agency.
C. Resolution of the Oversight Board to the Successor Agency of the Dissolved
Bakersfield Redevelopment Agency approving the independent accountant's
report on applying agreed -upon procedures of the Successor Agency of the
Dissolved City of Bakersfield Redevelopment Agency, as issued by the Kern County
Auditor - Controllers' office.
d. Update on status of Recognized Obligation Payment Schedule (RODS III) for the period
from January 1, 2013 through June 30, 2013.
4. BOARD COMMENTS
5. ADJOURNMENT
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY
AGENDA REPORT
MEETING DATE: October 15, 2012 1 AGENDA ITEM: 3.a
TO: Members of the Oversight Board
FROM: Successor Agency Staff
SUBJECT: Minutes of the October 5, 2012 special meeting
RECOMMENDATION: Staff recommends approval of the minutes.
BACKGROUND:
S: \OVERSIGHT BOARD OF SUCCESSOR AGENCYWgenda Reports\Agenda Report MINUTES.docx
10/9/2012 8:32 AM
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY
AGENDA REPORT
MEETING DATE: October 15, 2012 I AGENDA ITEM: 3-b .
TO: Members of the Oversight Board
FROM: Nelson K. Smith
Finance Director
SUBJECT: Resolution of the Oversight Board to the Successor Agency of the Dissolved
Bakersfield Redevelopment Agency Approving the Due Diligence Reviews of the
Successor Agency of the Dissolved City of Bakersfield Redevelopment Agency.
RECOMMENDATION:
Staff recommends adoption of the resolution.
BACKGROUND:
State law AB 1484 (Section 34179.5) requires that "each Successor Agency shall employ a
licensed accountant, approved by the county auditor - controller and with experience and
expertise in local government accounting, to conduct a due diligence review to determine
the unobligated balances available for transfer to taxing entities ".
According to the legislation, the Due Diligence Review for the Housing funds carries the
following deadlines:
October 1, 2012 - the successor agency shall provide the results of the review to the
oversight board for review;
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; and
October 15, 2012 - the oversight board shall review, approve, and transmit to the
Department of Finance and the county auditor - controller the determination of the
amount of cash available for disbursement to taxing entities as determined according
to the review report.
The legislation requires a similar Due Diligence Review for all other (non- housing) funds. The
due dates in the law for the other funds are December 15, 2012 for completion of the report
and January 15, 2013 for final approval by the oversight board.
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AGENDA REPORT Page 2
Staff obtained approval from the Kern County Auditor - Controller (Ms. Ann Barnett) to hire the
accounting firm of Brown Armstrong to perform both "due diligence" reviews. The auditors
have conducted the review procedures for both the Housing funds and the "non- housing"
funds. Both reports have been provided to the oversight board members, the county auditor -
controller, the Department of Finance, the State controllers' office and the county
administrative office in accordance with state law. Staff and the auditors both felt it would be
more efficient to conduct both reviews and prepare both reports at one time.
The Oversight Board held a public meeting on Friday, October 5, 2012 to accept public
comment on the two reports prepared by the independent auditor. Staff also provided an
overview of the reports and their content. A representative from the audit firm was also in
attendance at the meeting.
In accordance with AB 1484, no action was taken at the October 5 meeting and the required
five days has elapsed since the public comment session.
Staff is recommending adoption of the resolution to approve the Due Diligence Reviews for
both the Housing and the "non- housing" funds as prepared by the outside audit firm.
S:\Hdmin\Hdmin Reports \Successor Agehcy\SA -OB -Admin approval of due diligence reports Oct 15 2012 mtg.docx
10/5/201212:48 PM
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY
AGENDA REPORT
MEETING DATE: October 15, 2012 I AGENDA ITEM: 3.G .
TO: Members of the Oversight Board
FROM: Nelson K. Smith
Finance Director
SUBJECT: Resolution of the Oversight Board to the Successor Agency of the Dissolved
Bakersfield Redevelopment Agency Approving the Independent Accountant's
Report on Applying Agreed -Upon Procedures of the Successor Agency of the
Dissolved City of Bakersfield Redevelopment Agency, as issued by the Kern
County Auditor - Controllers' office.
RECOMMENDATION:
Staff recommends adoption of the resolution.
BACKGROUND:
State law ABxI 26 required the County Auditor Controllers office to perform agreed upon
procedures" to help ensure that the dissolved redevelopment agency was complying with its
statutory requirements. The report was originally supposed to be completed and distributed
by July 1, 2012. AB 1484 amended the due date of this report to October 1, 2012.
The Kern County Auditor Controllers' office performed the required procedures and distributed
their report to the City of Bakersfield via e-mail on September 27, 2012. A copy of the report is
included in your packet. The City has also posted a copy of this report on the Successor
Agency web site for public review.
The report includes twenty (20) separate procedures outlined with the auditors' results for each
procedure. In summary, the county auditor determined that the City as Successor Agency
was following all of the rules and there were no "findings" nor any issues of "non- compliance"
pertaining to the documents, activities or actions of the City as Successor Agency.
Staff is recommending approval of the report by adoption of the resolution.
SAAdminWdmin Reports \Successor Agency\SA -OB -Admin approval of county aup report Oct 15 2012 mtg.docx
10/5/2012 1:18 PM
OVERSIGHT BOARD TO THE SUCCESSOR AGENCY
OF THE DISSOLVED BAKERSFIELD REDEVELOPMENT AGENCY
AGENDA REPORT
MEETING DATE: October 15, 2012 ]AGENDAITEM: 3,d.
TO: Members of the Oversight Board
FROM: Successor Agency Staff
SUBJECT: Update on Status of Recognized Obligation Payment Schedule (ROPS III) for the
period from January 1, 2013 through June 30, 2013.
RECOMMENDATION:
Staff recommends receive and file staff report regarding current status of ROPS III report.
BACKGROUND:
State law AB 26 requires the Oversight Board to review and approve a Recognized Obligation
Payment Schedule (ROPS) looking forward for each six month period from January to June
and from July to December of each year. The adopted ROPS is then reviewed by the
Department of Finance (DOF), the State Controllers' Office (SCO) and the Kern County Auditor
Controllers Office. This law was further amended by AB 1484 to require the schedule be
approved by the Oversight Board and submitted to the DOF by September 1, 2012 (four
months in advance) to allow them sufficient time to review and approve this schedule.
The Oversight Board met on August 17, 2012 and approved the ROPS III report, which was
transmitted to the Department of Finance later that same day. After some communication of
questions and answers between DOF staff and City staff, the DOF transmitted the attached
letter on October 1, 2012 denying certain items listed on the ROPS III schedule.
City staff has filed a request for a "meet and confer" procedure as outlined in AB 1484, where
we will appeal the initial decisions dictated in the October 1, 2012 DOF letter. Should the DOF
prevail on all issues, the potential impact to the City substantial, with financial impact of the
items denied totaling approximately $27.9 million. This includes project funding losses of about
$4.2 million as well as negative annual debt service impact of about $2.7 million per year.
A copy of our request to meet and confer is attached for your review, which outlines in
greater detail the specific issues of concern regarding each denied item. We do not have a
date or time yet when we will be meeting with DOF staff, but will provide further update at the
October 15, 2012 meeting date as to the status of our request.
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10/5/2012 2:03 PM