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Home My Public Portal AboutA 2012-08-21LSA} w. t 'ro CITY OF LYNWOOD As Successor Agency to the Lynwood Redevelopment Agency Jim Morton, Mayor Salvador Alat rre, Mayor Pro Teen Aide Castro, C un ilmember Ramon Rodriguez, C un ilmernber Maria T Santillarn-Revs, C un ilmemb r This Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each iters of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. Any person who has a question concerning any of the agenda items may call the City Manager at 31 603-0220, ext. 200_ CITY OF LYNWOOD AS SUCCESSOR AGENCY TO THE LYNWOOD REDEVELOPMENT AGENCY AUGUST 21, 2092RECE.VED REGULAR MEETING 6:00 P.M. AU6 16 2�'"� LYNWOOD CITY HALL CI-�,� 0� •L,e�,��i 0 0 D 11330 BULLIS ROAD CITY CLERKS OFFICE Auy \ 0�- Ovk-vNay\4'L JIM MORTON MAYOR SALVADOR ALATORRE AIDE GASTRO MAYOR PRO -TEM COUNCILMEMBER RAMON RC}DREGUEZ MARIA TERESA SANTILLAN-REAS COUNCILMEMBER COUNCILMEMBER CITY MANAGER ROGER L. HALEY CITY CLERK MARIA QUINONEZ CITY ATTORNEY FRED GALAI TE CITY TREASURER EDWIN ER AI DE OPENING CEREMONIES: NIES: A. Call Meeting to Order B. Roll Call (CASTRO-RODRIGUEZ-SANTILLAN-BEAS-ALATORRE-MORTON) C. Certification of Agenda Posting by City Clerk PUBLIC ORAL COMMUNICATIONS {Regarding Agenda Items Only} NON -AGENDA PUBLIC ORAL COMMUNICATIONS CONSENT CALENDAR All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion ars these iters prig t voting unless members of the Council as the Successor Agency to the Lynwood Redevelopment Agency or staff request specific iters to he removed from the Consent Calendar for separate action. 1. MINUTES OF THE PREVIOUS MEETING Regular Meeting — July 17, 2012 2. APPROVAL OF THE WARRANT REGISTER Comments: City of Lynwood Successor Agency warrant register dated August 21, 2012 Recommendation: Staff recommends that the Lynwood City Council as Successor Agency approve the warrant register for August 21, 2012 2 . APPROVAL OF VASQUEZ & COMPANY LLP TO CONDUCT "DUE DILIGENCE' REVIEW 1IEW AS REQUIRED BY AB 1484 Comments - As mrnanis As part of AB 1484, California Health and Safety Cede section 34179.5(a) requires each successor agency to select and employ a licensed accountant to complete a "due diligence'} review. . The review is intended to determine the u nebli ated balances available for transfer to taking entities. The selected accountant has to be approved by the County Auditor -Controller. (FIN) Recommendation: Staff respectfully recommends that the City Council approve the attached resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING A CONTRACT WITH VASQUEZ & COMPANY LLP TO CONDUCT "DUE DILIGENCE" REVIEW II AS REQUIRED BY AB 1484 FOR FISCAL YEAR ENDED ,JUNE 30, 2012 AT AN AMOUNT OF $20,000, AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT AND THE ENGAGEMENT LETTER'}. NEW/OLDNEW/OLD BUSINESS NONE CLOSED SESSION NONE ADJOURNMENT CITY OF LYNWOOD AS SUCCESSOR AGENCY TO THE LYNWOOD REDEVELOPMENT AGENCY MEETINGS WILL BE POSTED AS NEEDED. THE NEXT MEETING WILL BE HELD IN THE COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, CITY OF LYNIID, CALIFORNIA. C AGENDA STAFF REPORT N"! DATE. August 21, 2012 TF Honorable Mayor and Members of the City Council as Successor to the Lynwood Redevelopment Board OLAPPROVED BY- roger L. Haley, City Manage PREPARED BY Maria Quinonez, City Clerk Kristina Santana, Deputy City Clergy �5 SUBJECT Minutes of Previous Meetings Recommendation: Staff recommends the City, as the Successor to the Lynwood Redevelopment Agency, approve the following minutes. 0 Regular Meeting — July 17, 2012 Background: NA Discussion & Analysis: NA Fiscal Impact: N/A Coordinated With: N/A AGENDA ITEM CITY OF LYNWOOD AS SUCCESSOR AGENCY TO THE LYNWOOD REDEVELOPMENT AGENCY REGULAR ULAF MEETING July 17, 2012 The City of Lynwood as Successor Agency to the Lynwood Redevelopment Agency of the City of Lynwood met in aE regular meeting in the Council Chambers, 11330 Bullis Road on the above date at 6 34 p.m. Mayor Morton presiding. Council Members Castro, Rodriguez, Sa mill n -Bens, Al t rre and Marton were present. Also present were City Manager Harley, City Attorney Galante, City Clerk Quinonez and City Treasurer Hernandez. City Cierk Quinonezannounced that the Agenda had been duly pasted in accordance with the Brawn Act. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NONE PUBLIC OFFAL COMMUNICATIONS NONE CONSENT CALENDAR It was moved by Council Member Santilla n -Bears, seconded by Council Member Rodriguez, to approve the consent calendar and to receive and file staff reports. AYES COUNCIL MEMBERS CASTE , RODRIGUEZ, SANTILLAN-BEAS, ALATFFE AND MORTON NOES` NONE ABSTAIN: NONE ABSENT NONE Item ##1. APPROVAL OF THE WARRANT REGISTER RESOLUTION NO. 2012-018 ENTITLED: RESOLUTION F THE LYNWOOD CITY COUNCIL AS SUCCESSOR AGENCY T THE LYNWOOD REDEVELOPMENT AGENCY OF LYNWOOD, CALIFORNIA, NIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS ANTS I E ISI LD BUSINESS NONE CLOSED SESSION NONE ADJOURNMENT Having no further discussion, it was moved by Council Member Sarntillan-Bears, seconded by Council Member Castro, and carried to adjourn the regular City of Lynwood as Successor Agency to the Lynwood Redevelopment Agency meeting at 36 p.m. Jim Morton, Mayor 2 Maria uinone , City Clerk AGENDA STAFF REPORT y e�rr DATE: August 21, 2012 TO' Honorable Mayor and Members of the City Council as Successor Agency of Lynwood Redevelopment Agency APPROVED BY Roger L. Haley, City Manager/Executive Direoszx PREPARED Amanda Roberson, Controller/Audit Manager r a4l Monica Ochoa, Accounting Technician kP .01 SUBJECT Approval of the Warrant Registers Recommendation: Staff respectfully recommends that the Lynwood City Council as Successor Agency approve the warrant registers for Fiscal bears 2011-2012 and 2012- 2013. ---- --------------- Attached Warrant Registers dated August 21, 201 __________________ AGENDA ITEM z TMM a. C) (D 0 T- � r 0 r r o C) O �� O C''} m Cl) E O CD CD IT O o CEJ cNi T- q4 c a .c OD CO C CD O C O (D C) Cil CEJ CSI CEJ CEJ J cl z LU 2 LU {J� �f7 DD C C) CN 00 J .J Elf z w co i [0' Ma L r C 00 3C 0 Y CD C) r" v- CD T- CD r r h C) O O 0 0 0 C) C) O 0 CN CN C1 CEJ 0 0 C C co U) [D U) (n CD C CSI { CN CEJ { ( C'! 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E CL 0 C4 0 c 0 L CD 4 L O 1� C 0 E CD CD O r v 1� CY7 O 0 V V CD O - O 04 I— 0 Olf7 CD co CD Q O CDa C%4 0 .14 1 CD N 00 CD O N 1� 1� T� CD LO C> CO Cf) 1- O00 0 CD 1.- X17 O CD C CO t ) Ob t CD ci 04 C3 C*) LO CD 1- co CD CD O r v 1� CY7 O 0 V V CD O - O 04 I— 0 Olf7 CD co CD Q O L- C-1 C%4 O N m 07 T- CD N CD N 00 CD O N 1� 1� T� CD LO C> CO Cf) 1- O00 0 CD 1.- X17 O CD C CO t ) Ob t CD ci 04 C3 C*) LO 1 1- co T vm V- rL F- r r r r r rCL r r co r rcn r co r i r m r r t� o(DW LUoC)w w o ❑ rqr-OIr- Ir-0V-raVM- 0 V - V- co CD LO U) co V) 0 o ov V-- OD oo oo co to 00 T-- o CD T-- T� T- r r r r CD 0 0 V- r T- 0 0 r r- r 0 r r r r r V- r r r r co CD LO U) co V) 0 o (D EO co r r co CD LO U) co V) :.�i. AGENDA STAFF REPORT DATE: August 21, 201 To: Honorable Mayor and Members of the city Council as Successor to the Lynwood Redevelopment Board FROM: Roger L. Haley, City llaana 6; WP PREPARED ED BY: Amanda Roberson, Controller/Audit Man germs Christy Valencia, Finance Manager SUBJECT: Approval of Vasquez & Company LLP to Conduct "Du Diligence" Review as Required by AB 1484 Staff respectfully recommends that the City Council approve the attached resolution entitled, "A RESOLUTION of THE CITY COUNCIL OF THE CITY of L N1 OOD APPROVING lNG A CONTRACT ACT 11 ITH VASQUEZ & COMPANY LLP To CONDUCT 19DUE DILIGENCE12REVIEW S REQUIRED BY AB 1484 FOR FISCAL YEAR ENDED JUNE Sot 2012 AT AN AMOUNT of $20,000, AUTHORIZING ING THE MAYOR To EXECUTE THE AGREEMENT AND THE ENGAGEMENT LETTER Background: As part of AB 1484, California Health and Safety Code Section 34179.5(a) requires each successor agency to select and employ ar licensed accountant to complete at "due diligence" review. The review is intended to determine the unobligated balances available for transfer to taxing entities. The selected accountant has to be approved by the county Auditor -Controller. Discussion and Analysis: In May 2012, the City Council approved a contract to engage Vasquez & Company LLP to audit the FY 12 financial statements of the City of Lynwood. The contract includes the issuance of the Comprehensive Annual Financial Report, Single Audit Report, State controller's Report and a Management Report. Since Vasquez & Company has been engaged to conduct the City's audit, it would be practical to engage the same firm to complete a "due diligence" review. The City is required to obtain approval from the county of Los Angeles before employing the services of an accountant. Staff submitted the request to the County AGENDA ITEM to approve Vasquez & Company LLP to perform the "due diligence" review of the Successor Agency. Recently, the City received a notice from the County of their approval. Fiscal Impact: The fee for the audit services i $20,000. This fee may increase or decrease in the event that the Department of Finance maks significant changes to the required procedures for the Due Diligence Review. The cost will be appropriated in the F 2012-2013 Budget. Coordinated With: City Manager's Office Cit} Attorney's Office Attachments: (1) Resolution (2) Agreement (3) Approval Letter from the County of Los Angeles RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWO D APPROVING A CONTRACT WITH VASQUEZ & COMPANY Y LLP TO CONDUCT "DUE DILIGENCE" REVIEW AS REQUIRED UIF ED B AB 1484 FOR FISCAL YEAR ENDED JUNE 30, 2012 AT AN OF $20,000, AUTHORIZING THE MAYOR T EXECUTE THE AGREEMENT AND THE ENGAGEMENT LETTER WHEREAS, EAS, as part of AB 1484, California Health and Safety Code Section 34179.5(a) requires each successor agency to select and employ a licensed accountant to complete a "due diligence" review; and WHEREAS, Vasquez & Company LLP was engaged by the City to perform the City's annual audit and is familiar with the City's finaln ial system; and WHEREAS, EAS, Vasquez & Company LLP is licensed and in good standing with the California Board of Accountancy, and has the required local government e perience, and WHEREAS, EAS, the City received a approving the City's request to allow the review as required by AB 1484; and iotice from the County of Los Angeles sane firm to perform the "due diligence NOW, THEREFORE, E, the City Council of the City of Lynwood does hereby find, order, and resole as follows: Section 1. That the engagement of Vasquez & Company LLP to provide audit services for the City of Lynwood for the fiscal year ended June 3, 2012 Is approved at an amount of $20,000. Section 2. That the Mayor is authorized to execute the agreement and the Engagement Letter with Vasquez & Company, LLP attached hereto and incorporated herein. Section 3. That this resolution shall become effective immediately upon its adoption. PASSED, APPROVED AND ADOPTED this day of 2012. .Jim Morton, Mayor FITTEST: Maria Quinonez, City Clergy APPROVED AS TO FORM: Fred Galante City Attorney APPROVED AS TO CONTENT: Roger L. Daley City Manager PROFESSIONAL/CONSULTING AUDITING SERVICES AGREEMENT This agreement "Agreement" is made as of August 21, 2012 by and between the City of Lynwood, a municipal corporation "City" as Successor Agency to the dissolved Lynwood Redevelopment Agency and Vasquez & Company LLP ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively referred to as the "Parties." RECITALS WHEREAS, City desires to utilize the services of Consultant as an independent contractor to provide consulting services to City as set forth in the attached Schedule 1 of the Engagement Letter; and WHEREAS, Consultant represents that it is fully qualified to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees. NOW, THEREFORE, in consideration of performance by the Parties of the covenants and conditions herein contained, the Parties hereto agree as follows: 1. Consultant's Services, A. Scope ofServices. The nature and supe of the specific services to he performed by Consultant are as described in Schedule 1 of the Engagement Letter. B. Time of Performance. Consultant shall complete the specific services according to the deadlines established by the Department of Finance and the County of Los Angeles. . Terni of Agreement. This Agreement shall be for a terra of one 1 ear-, commencing on August 21, 2012 (the "Commencement ate") and terminating August 21, 2013 (the "Termination Date", unless sooner terminated pursuant to the provisions of this Agreement. . Compensation. A. Payment will be made only after submission of proper monthly invoices in the form and manner specified by City. Each invoice shall include a breakdown of all monthly services performed together with the hours spent on each service. City shall endeavor to pay invoices bearing correct and authorized charges within forty-five days of the elate they are received; however, Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. City shall not be responsible to Consultant for any additional charges, interest or penalties due to a failure to pay within such period. B. Total payment to Consultant pursuant to this Agreement is $20,000. Due Diligence Review Pursuant to AB 1484 FY 2011-2012 C. If at the request of the City, Consultant is required to incur out of pocket expenses (including but not limited to, out-of-town travel and lodging) which are above and beyond the ordinary expenses associated with per#bbrmance of this Agreement, C nhart shall be entitled t reimbursement of such expenses. Out of pocket expenses are not to exceed the estimated amounts submitted by the Auditor and approved by the City, prior to incurring the expenses. Consultant shall only be reimbursed for those expenses which: 1 appear on Consultant44 monthly invoices;(ii) are accompanied by a copy of the City's written authorization for Consultant to incur such expenses; and (iii) receipts documenting such expenses. . General Terms and Conditions. The General Terms and Conditions set forth in Exhibit B are incorporated as part of this Agreement. In the event of any inconsistency between the General Tens and Conditions and any other exhibit to this Agreement, the General Terms and Conditions ,shall control unless it is clear frorn the context that both Parties intend the provisions of the other exhibit(s) to control. . Standard Engagement Letter. The standard engagement letter which contains the audit objectives, management responsibilities, audit procedures, and audit administration is attached as Exhibit C to this contract. In the event of inconsistency between the General Terns and Conditions and the Engagement Letter, General Terns and Conditions shall have priority. . Addresses. city City of Lynwood 11330 Bullis Road Lynwood, CA 90262 Attn: Mr. Roger L. Haley, City Manager ger Consultant Vasquez & Company LLP 801 S. Grand Avenue, Suite 400 Los Angeles, CA 90017-4646 Attn. Mr. Gilbert R. Vasquez, CPA 7. Exhibits. All exhibits referred to in this Agreement are listed here and are incorporated and made part of this Agreement by this reference. Exhibit A — Scope of Services, Time of Performance and Compensation Schedule (one page) Exhibit B — General Terms and Conditions (seven pages) Exhibit C — Standard Engagement Letter (seven pages) ///Scope of Services, Time ofPerfarma.nce and Compensation Schedule (three (3) pages) . SIGNATURES: IIS WITNESS WHFREOF, the p arti e have executed this Agreement as of the slates wntten below. Due Diligence review Pursuant to AB 1484 FY 2011-2-0 1 CITY: CITY of LYl W OD Jim Morton, Mayor CONSULTANT: VASQLTEZ &COMPANY LLP M Date Gilbert R. Vasquez, CPA Date ATTEST: Maria Quinonez, City Clerk Date APPROVED AS TO FORM: M Fred Galante, City Attorney Date Due Diligence Review Pursuant to AR 1484 FY 2011-20 12 EXHIBIT SCOPE OF SERVICES, TIME OF PERFORMANCE CE AND COMPENSATION SCHEDULE NATURE OF SERVICES REQUIRED Scope of Work to be Performed - See Engagement Letter and attached Schedule 1 (Agreed Upon Procedures) TIME of PERF CE The due diligence review shall be completed in accordance with deadlines established by the Department Finance and the County of Los Angeles. COMPENSATION SCHEDULE The fee for this engagement is $20,000. Once the due diligence review and the required reports are completed and after the City receives )'nvoiees from the audit firm., the City of Lynwood will issue payments to Vasquez & Company LLP. Due Diligence Review Pursuant to AB 1484 Exhibit FY 20 t 1-2012 EXHIBIT GENERAL TERMS AND CONDITIONS 1. Status as Independent Contractor. A. Consultant is, and shall at all tunes remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as ars agent. Neither City nor any of its agents shall have control over the conduct ofConsultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of city. B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to i ndemrm fir and hold City ha r Jess from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. In the event that City is audited by any Federal or State agency regarding the independent contractor stags of the Consultant and the audit in any way fails to sustain the validity of a wholly independent contractor relationship between City and Consultant, thea Consultant agrees to reimburse City for all costs, including accounting and attorneys fees, arising out of such audit and any appeals relating thereto. C. Consultant shall fully comply with the workers' compensation law regarding Consultant and Consultant's employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement and any amount due to the City from Consultant as a result of Consultant's failure to promptly pay to City any reimbursement or ind rrrrrification arising under this Section 1. . Standard of Performance. Consultant shall perforin all work to the highest professional standards and in a manner reasonably satisfactory to the City Manager or her designee. The City Manager or his/her designee may from time to time assign additional or different tasks or services to Consultant, provided such tasks are within the scope of services described in Exhibit A. However, no additional or different tasks or services shall be peronned by Consultant other than those specified in Exhibit A, or those so assigned in writing to Consultant by the City Manager or his/her designee. . Inde milication. A. Consultant is skilled in the professional calling necessary to perform the services and duties agreed to be performed under this Agreement, and the City is relying upon the skill and knowledge of Consultant to perforin said services and duties. ] ,e Diligence Review Pursuant to AB 1484 Exhibit B FY 2011 -20 12 - - B. City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "Indemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, defend, protect and hold harmless Indemnitees from and against, any and all liabilities, claims, aeons, causes f cretin, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims"), which Indemnitees may suffer or incur or to which Indemnitees may become subject by reason of or arising out of any injury to or death of any persons, damage to property, loss of use of property, economic loss or other loss occurring as a result of or allegedly caused by the Consultant's performance of or failure to perform any services under this Agreement or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, subcontractors, subconsultants or employees, committed in performing any of the services under this Agreement. Notwithstanding the foregoing, the provisions of this subsection shall not apply to Claims occurring as a result f the City's sole negligence or willful acts or omissions. C. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth in this Section from each and every subcontractor, subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the perfoi mance of this Agreement. In the event Consultant falls to obtain such indemnity obligations from others as required in this Section, Consultant agrees to be fully responsible according to the terms of this Section. Failure of the City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indem-nify and defend Indemnitecs as set forth herein shall survive the termination of this Agreement and is in addition to any rights which City may have under the laver. This indemnity is effective without reference to the existence or applicability of any insurance coverages which may have been required under this Agreement or any additional insured endorsements which may extend to City. . Insurance, A. Without limiting Consultant's inderrmnifica ion of Indemnitees pursuant to Section 3 of this Agreement, Consultant shall obtain and provide and maintain at its ori expense during the term of this Agreement: the types and amounts of insurance as described below: (1) Commercial General Liability Insurance using Insurance Services Office Commercial General Liability Form CCS 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or sults by one insured against another. Limits shah be no less than l ,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate. (ii)Business Auto Coverage on ISO Business Auto Coverage Form CA 00 01 5$uDiligence review Pursuant to AB 1484 Exhibit B FY 2011-2012 - 2 - including symbol I (Any Auto) or the exact equivalent. Limits shall be no less than l ,000,000 per accident, combined single limit. if consultant owns no vehicles, this requirement may be satisfied by a non -owned auto endorsement to the general liability policy described In the preceding subsection. If Consultant or Consultant's employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. (iii) workers' Compensation insurance on a state approved policy form providing statutory benefits a required by lave with employer's Iiability limits no less than S I ,000,000 per accident for all covered losses. (iv)Professional Liability or Errors and omissions Insurance as appropriate to the profession, written on a policy form coverage specifically designed to protect against acts, errors or omissions of the consultant and "Covered Professional Services'} as designated in the policy must specifically include work performed under this Agreement. The policy limit shall be not less than $1,000,000 per claire and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive slate shall be on or before the effective date of this Agreement. B. City, its officers, officials, employees and volunteers shall be named as additional insureds on the policies) as to commercial general liability and automotive liability. C. All insurance procured pursuant to these requirements shall be written by insurers that are admitted ea m'ers in the state of California with a Best's rating of no less than AXII. D. All insurance policies shall provide that the insurance coverage shall not be non - renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance caner without the insurance carrier giving City thirty days' prior written notice thereof Any such thirty o day notice shall be submitted to the City via certified rail, return receipt requested, addressed to "Risk Manager," City of Lynwood, 11330 Bullis Toad, Lynwood, California, 90262. Consultant agrees that it will not cancel, reduce or otherwise modify said insurance coverage. E. Consultant shall submit to City i insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and(ii) insurance policy endorsements indicating compliance with all other minimum insurance requirements above, not less than one 1 clay prior to beginning of performance under this Agreement. Indorsements shall be executed on City's appropriate standard forms entitled "Additional Insured Endorsement". F. The Consultant's insurance shall be primary as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Fie Diligence Review Pursuant to AB 1484 Exhibit B FY 2011-2012 -3- City, its officers, officials, employees and volunteers shall be excess of the Consultant's insurance and shall not contribute with it. G. Consultant agrees that if it does not beep the aforesaid insurance in full force and effect, and such insurance is available at a reasonable cost, City may take out the necessary insurance and pay the premium thereon, and the repayment hereof shall be deemed an obligation of Consultant and the cost of such insurance may be deducted, at the option of City, from payments due Consultant. . Confidentiality. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this section shall survive the termination of this Agreement. . Ownership of Work Product. All reports, documents or other written material developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Such material shall not be the subject of a copyright application by Consultant. . Conflict of Interest. A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the perforancc of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement. B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendors of services to City as a result of the performance of this Agreement, or the scrvices that may be procured by the City as a result of the recommendations made by Consultant. Consultant's covenant under this section shall survive the termination of this Agreement. 1 Termination for Cause. Should Consultant fail to perform any of the obligations required of Consultant within the time and in the manner provided for under this Agreement within seven 7days after receipt from City of a written notice of such default, or should Consultant violate any of the terms and conditions of the Agreement, City may terminate this Agreement with cause upon thirty 3 days' mitten notice to Consultant. The effective date of termination shall be upon the date specified in the nonce of termination. Consultant agrees that in the event of such termination, City's obligation to pay Consultant shall be Rue Diligence Review Pursuant to AS 1484 Exhibit B FY 2011-2012 - 4 - limited to payment only for those services satisfactorily rendered prior to the effective date of termination. Immediately upon receiving written notice of termination, Consultant shall discontinue performing services, preserve the product of the services, and turn over to City the product of the services in accordance with written instruction ofCity. . Personnel. Consultant represents that it has, or will secure at its oven expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance o Consultant's services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City's premises. 10. Financial Condition, prior to entering into this Agreement, Consultant has submitted documentation acceptable to the City Manager, establishing that it is financially solvent, such that it can reasonably be expected to perform the services required by this Agreement. within thirty o days of the first anniversary of the effective elate of this Agreement, Consultant shall submit such financial information as may be appropriate to establish to the satisfaction of the City Manager that Consultant is in at least as sound financial position as was the case prior to entering into this Agreement. Financial information submitted to the City Manager shall be returned to Consultant after review and shall not be retained by City. 11. lion -Discrimination and Equal Employment opportunity. A. Consultant shall not discriminate as to race, colon creed, religion, sc, matl status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual onMatron, n the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto. Such nondiscrimination shall include but not be limited to the following: employment, upgrading, demotion, transfers, recruitment or recruitment advertising; layoff` or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sec, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials. 1. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant's obligations hereunder, without the prior written due Diligence Review Pursuant to AB 1484 Exhibit 8 FN 2011-2012 -5- consent of City, and any attempt by Consultant t assign this Agreement or any ri ht , duties, or obligations arising hereunder shall be void and of no effect. 13. Performance Evaluation. For any Agreement in effect for twelve months or longer, a written annual administrative p rfon-nance evaluation shall be required within ninety days of the first anniversary of the effective date of this Agreement, and each year thereafter throughout the term of this Agreement. The work product required by this Agreement shall be utilized as the basis for review, and any comments or complaints received by City during the review period, either orally or in writing, shall be considered. City shall meet with Consultant prior to preparing the written report. If any noncompliance with the Agreement is found, City may direct Consultant to correct the inadequacies, or, in the alternative, may terminate this Agreement as provided herein. 1. Compliance with Laws. Consultant shall keep itself informed of State, Federal and Local laws, ordinances, codes and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all tunes comply with such laws, ordinances, odes and regulations. Without limiting the generality of the foregoing, if Consultant is an out-of-state corporation or LLC, it must be qualified or registered to do business in the state of California pursuant to sections 2 105 and 17451 of California Corporations Code. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section. 15. Licenses. At all times during the term of this Agreement, Consultant shall have in fall force and effect all licenses (including a City business license) required of it by law for performance f the services hereunder, 16. Non -'salver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of perforrance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 17. Attorney's Fees. In the event that either party to this Agreement shall commence any legal or equitable action or proceeding to enforce or interpret the provisions of this Agreement the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and consultants. 18. Notices. Any notices, bills, invoices, or reports required by this Agreement shall b deemed received on a the day of delivery if delivered by hand during Consultant's regular business hours or by facsimile before or during Consultant's regular business hours; or b on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in the Agreement, or to such other addresses as the parties e Diligence Review Pursuant to AB 1484 Exhibit B FY 2011-2012 - 6 - may, from time to time, designate in wr'trng pursuant to the provisions of this section. 19. Governing Law. This Agreement shall be interpreted, construed and enforced in accordance with the laws of the State ofCalifornia. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument. 1. Severability. If any provision or any part of any provision of this Agreement is found to be invalid or unenforceable, the balance of this Agreement shall remain ire full force and effect. . Entire Agreement, This Agreement, and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the Parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by the appropr'ate officer of the City as set forth in subsection 6-3.1 et seq. of the Lynwood Municipal Code and attested by the City Clerk. 3. Authority. The person or persons executing this Agreement on behalf ofConsultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. Diligence Review Pursuant to AB 1484 Exhibit B FY 2011-20 1 - 7 - EXHIBIT Vzz "' VA S om QU Ez LIAM & COMPANY LLP CEAtEFIED PUBLIC ACCOUNTI% TS AND BLIS1NESS 'CONSULTANTS 80 1 South Grand Avenu e, Suite 400 * Los Ames, CA goo 17-4646 w Ph. {2 1 ) 8 73 -1700 it Fax 1 8 73 -1 777 VVW Vasqua. com July 26, 2012 To the Oversight Committee/Board Successor Agency to the Dissolved Lynwcod Redevelopment elope ent Agency City of Lynwood 11330 Bullis road Lynnwood, CA 90282 We are pleased to confirm our understanding of the nature and limitations of the services we are to provide to the City of Lynwood as Successor Agency to the dissolved Lynwood Redevelopment Agency (the "Successor Agency 14). We will apply the agreed-upon procedures, which are required by Section 34179.5 of AB 1484, as listed in the attached Schedule 1, to determine the Successor Agency's unobligated balances available for transfer to taking entities as of June 30, 2012, This engagement is solely to assist the Successor Agency in complying with Section 34179.5 of ABI 484 Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American institute of Certified Puiblfc Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in the report. Consequently, we rake no representation regarding the sufficiency of the procedures described in the attached schedule either for the purpose for which this report has been requested or for any other purpose. If, for any reason, we are unable to complete the procedures, we will describe any restrictions on the performance of the procedures in our report, or will not issue a report as a result of this engagernent Because the agreed-upon procedures listed in the attached schedule do not constitute an examination, we will not express an opinion as to the reasonableness of the Successor Agency's unobligated balances available for transfer to taking entities In addition, we have no obligation to perform any procedures beyond those listed in the attached schedule, We will submit a report listing the procedures performed and our findings This report is intended soVy for the use of the Successor Agency Management and Oversight Board, the State Controller, the Department of Finance, and the Los Angeles County Auditor -Controller and should not be used by anyone other than these specified parties our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that world have been reported to you Management Responsibilities You are responsible for the presentation of the Successor Agency's unobligated balances available for transfer to the taking entities, including all the accounting records used to calculate the said balances in accordance with Section 34179.5 of AB1484 and for selecting the criteria and determining that such criteria are appropriate for your purposes. You are also responsible for making all management decisions and pelcrming all management functions, for designating an individual with suitable skill, knowledge, and/or experience to oversee the attestation services we provide; and for evaluating the adequacy and results of those services and accepting responsibility for them At the conclusion of our engagement, we will require a representation letter from management that, among other things, will confirm management's ement' responsibility described above. Regi stred with Pub IIc Company Accounting Oversight Board Member of Private ComPanies Practice Section & Center for Pu b tic Company Audit f=irms 1 + To the Oversight Committee Boa LQJ City of Lynwood July 26, 2012 Page 2 E-mail Communication In connection with this engagement, we may communicate with you or others via e-mail transmission As e-mails may be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whore they are directed and only to such parties, we cannot guarantee or warrant that e-mails from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure or communication of e-mail transmissions, or for the unauthorized use or failed delivery of e-mails transmitted by us in connection with the performance of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of e-mail transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information Ownershipof Working in Papers The documentation for this engagement is the property of Vasquez & Company LLP and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to ,,rake certain documentation available to a Cognizant or Oversight Agency for Audit or its designee, a federal agency providing direct or indirect funding, or the U S Government Accountability office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Vasquez & Company LLP personnel Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The documentation for this engagement will be retained for a minimum of seven years after the report release date or for any additional period requested by the Cognizant Agency, Oversight Agency for Audit} or Pass-through Entity If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting a finding, we will contact the party(ies) contesting the finding for gurdance prior to destroying the documentation. Dispute leslutlon Procedure If any dispute, controversy, or claim arises out of, relates to, or results from the performance or breach of this Agreement, excluding claims for non -monetary or equitable relief collectively, the "Dispute"), either party may, upon written notice to the other party, request nor, -binding mediation. A recipient party of such notice may waive its option to resolve such Dispute by non-binding mediation by providing written notice to the party requesting mediation and then such parties hereto shall resolve such Dispute by binding arbitration as described below Such mediation shall be assisted by a neutral ,mediator acceptable to beth parties and shall require the commercially reasonable efforts of the parties to discuss with each other in good faith their respective positions and different interests to finally resolve such Dispute. If the parties are unable to agree on a mediator within twenty g days from delivers, of the written notice, either party may invoke the mediation service of the American Arbitration Association (the Each party may disclose any facts to the other panty or to the mediator that it, in good faith, considers reasonably necessary to resolve the Dispute. However, all such disclosures shall be deemed in furtherance of settlement efforts and shall not be admissible in any subsequent proceeding against the disclosing party Except as agreed to in writing by both parties, the mediator shall keep confidential all information disclosed during mediation. The mediator shall net act as a witness for either party in any subsequent proceeding between the parties. k � To the Oversight Committee/Board h� City of Lynwood July 26, 2012 Page 3 Unless waived, such mediation shall conclude after the parties have engaged in good faith settlement negotiations, but nonetheless are unable to resolve the Dispute through the mediation process. The attorneys' fees and costs incurred by each party in such mediation shall be borne solely by such party, except that the fees and expenses of the mediator, if any, shall be borne equally by the parties Any Dispute not resolved first by mediation between the parties or if the mediation process is waived as provided herein) shall be decided by binding arbitration. The arbitration proceeding shall take place in the City in which the Vasquez & Company, LLP office providing the majority of services involved exists, unless the partes agree in writing to a different locale. The arbitration shell be governed by the provisions of the lags of the state in which the arbitration is to taro place (except if there is no applicable state law providing for such arbitration} thea the Federal Arbitration Act shall apply) and the substantive lain of such state shall be applied without reference to conflicts of law rules. In any arbitration instituted hereunder} the proceedings shall proceed in accordance with the then current Arbitration Rules for Professmal Accounting and Related Disputes of the AAA, except that the Arbitration Panel as defined below) shall permit discovery that is consistent with the scope of discovery typically permitted by the Federal Rules of Civil Procedure and/or is otherwise customary in light of the complexity of the Dispute and the amount in controversy Any Dispute regarding discovery, or the relevance or scope thereof, shall be determined by the Arbitration Panel as defined below) The arbitration shall be conducted before a panel of three persons, one selected by each party, and the third selected by the two party -selected arbitrators the "Arbitration Panel" ), The party -selected arbitrators shall be treated as neutrals The Arbitration Panel shell have no authority to award non -monetary or equitable relief, but nothing herein shad be construed as a prohibition against a party from pursuing non - monetary or equitable relief in a state or federal court. The parties also waive the right to punitive damages and the arbitrators shall have no authority to award such damages or any other damages that are not strictly compensatory in nature. In rendering their award, the Arbitration Panel shall issue in writing findings of fact and conclusions of lav The Arbitration Panel shall not have authority to grant a award that is not supported by substantial evidence or that is based on an error of law, and such absence of substantial evidence or such error of law may be reviewed on appeal to vacate an award based on the standard of review otherwise applicable in the Federal Appellate Court responsible for the jurisdiction ire which the arbitration is v nuedx and without regard to any heightened standard of review otherwise applicable to an arbitration decision rendered by the AAA. The confidentiality provisions applicable to mediation shall also apply to arbitration The award issued by the Arbitration Panel may be confirmed in a judgment by any federal or state court of competent jurisdiction. No payment of any award or posting of any bond of any kind whatsoever is required to be made or posted until such Dispute is finally determined, In no event shall a demand for arbitration be ,Wade after the date on which the initiation of the legal or equitable proceeding on the same Dispute would be barred by the applicable statute of limitations or repose. For the purposes of applying the statute of limitations or repose, receipt of a written demand for arbitration by the AAA shall be deemed the initiation of the legal or equitable proceeding based on such Dispute. Independence Vasquez and Company, LLP meets the independence requirements of Generally Accepted Auditing Standards (AAS) as it relates to the Successor Agency and the City Professional and certain regulatory standards require us to be independent, in both fact and appearance, with respect to the Successor Agency in the performance of our services. Any discussions that you have with personnel of our Firm regarding employment could pose a threat to our independence. Therefore, we request that you inform us immediately prior to any such discussions so that we can implement appropriate safeguards to ,maintain our 'independence, To the Oversight Committee/Board City of Lynwood July 26, 2012 Page 4 Administration, Fees, and Other Ms, lie McBride is the engagement partner and is responsible for aupervising the enciagernent. lll'lr; Gilbert Vasquez is responsible for signing the report on a reed -u on procedures. Our fees for the servr ces outlined in this engagement letter are based upon our estimates of the time needed to complete the project at our standard hourly rates. You acknowledge that any fee estimates vire have furnished are only our good faith estimates based on our understanding of the engagement assumptions and the facts and circumstances we are aware of at this time. If the bases of our estimate are inaccurate, the fees and expenses may be different from those we each anticipate If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Our standard hourly rates Crary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit The fees are based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will net be encountered during the engagement. The fee for this engagement is $20,000. Our invoices for these fees will be rendered in accordance with the terms set below and are payable on presentation. In accordance with our Firm policies, work may be suspended if your account becomes thirty days or more overdue and will not be resumed until your account is paid in full If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notice of termination, even if we have not issued a report, You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. Invoices aged over 30 days may be subject to a 10% late charge We appreciate the opportunity to be of service to the City and believe this letter accurately summarizes the significant teras of our engagement. If you have any questions, please let us know If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. If the need for additional procedures arises, our agreement with you will need to be revised It is customary for us to enumerate these revisions in an addendum to this letter If additional specified parties of the report are added, we will require that they acknowledge in writing their responsibility for the sufficiency of procedures Very truly yours, VASQUEZ &COMPANY LLP Gilbert R. asq Managing - artner RESPONSE This letter correctly sets forth the understanding of the City of Lynwood as successor agency to the dissolved Lynwood Redevelopment Agency B. Title [Date: Schedule I AGREED UPON PROCEDURES AB 1484 requires a "due diligence review" and also amends certain sections of the State of California Health and Safety code. These amended sections and the related procedures required to meet the due diligence review requirements of AB 1484 follow Section 34179.5(c.1) 1 The review shall include the dollar value of assets transferred frorn the former redevelopment agency to the successor agency on or about February 1, 2012 Procedures: Request schedule listing the dollar value of assets transferred from the former redevelopment agency to the successor agency on or about February 1, 2012. b.Agree the value of assets with the trial balance as of January 31, 2012. c. Agree the value of assets with the documents and subsidiary schedules supporting the assets recorded. d. Document the basis for valuation. Section 34179.5(c.2 The review stall include the dollar value of assets and cash and cash equivalents transferred atter 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 obligkon that rewired the transfer Procedures. a. Request a schedule listing 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 b. Trane posting of the transfrlpayments made to the General Ledger c. Determine and document the related enforceable obligation that required the transfer Section 34179.5(c.3) 3 The review shall include 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 Procedures: a. Bequest a schedule listing 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 pubkc agency or private party and the purpose of each transfer b. Trace posting of the transfer/payments made to the GL. c Determine and document the related enforceable obligation that required the transfer Section 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 gears that reconcile balances, assets, and liabilities of the successor agency on ,dune 30, 2012 to those reported to the Controller for the 2009- 10 fiscal year P roced u res: a. Request copies of the audited financial statements for the FY 0-10 and 10-11 and unaudited financial statements of the successor agency and low/mod fuand for the FY 11-12. b. Prepare a schedule of expenditures, revenues, transfers and other funding sources for the fiscal years 2010-11 and 2011-12. c. Request a rollforward schedule of the balances, assets, and liabffibes of the former re levetopment agenc lsuccessor agency from-, June 3 o, 2010 through June 30, 2 011 a rid 2 012. d. Agree .dune 20, 2010 balances to those reported to the Controller for the 2009-10 fiscal year. Section 34179.5(c.6) 5) A separate accounting for the balance for the Low and Moderate Income Housing Fund for alb other funds and accounts combined shall be ,made as follows statement of the total value of each fund as of .dune 30, 2012. 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. 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 shali list separately housing -related assets 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 shell provide a listing of all approved enforceable obligations that includes a projection of annual spending requirements to satisfy each obligation and a projection of anflual 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 recewed 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. E. An sterni ed 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 procedures1 a. Separately for the Love and Moderate income Housing Funds, and all the remaining funds and accounts of the successor agency. A. Request a triad balance and fund financial statements for each fund as of June 30, 2012. Bequest an itenoi ed statement listing any amounts that are legally restricted as to purpose and cannot be prided 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, G Request 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 -gelated assets D Request 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. f. Request from the successor agency a listir?g of all approved enforceable obligations that include a projection of annual spending requirements to satisfy each obligation and a projection of annual revenues available to Bind these r -e urrements. IL Using the projections obtained in i. above, determine if the future revenues together with dedicated or restricted balances are sufficient to fund future obligations *If future revenues are insufficient to fund future obligations and thus retention of current balances is required, identify the amount of current balances necessary for retention - iii. bequest the details of 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 bora 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. E Request st an itemized list and analysis of any amounts of current balances that are needed to satisfy obligations that will be placed on the i ecegnf ed Obligation Payment Sohedu�es for the current fiscal year Section 34179.5(c.6) ( The review shall total the net balances available after deducting the total amounts described in subparagraphs B) to , inclusive, of paragraph . The review shall add any amounts that were transferred as identified in paragraphs and of subdivision c if an enforceable obligadon to rake that transfer did not a (t.. The cesuffing suss shall be avai�al le for akcabon 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 insufficjent cash balances to transfer or that cash or cash equivalents aro specifically obligated to the purposes described in subparagraphs (B), (D), and E f paragraph ) 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 iternized schedule Procedures. Calculate the Net Balances available for allocation to taxing agencies as follows. Tefa1 the net balances available after deducting the total amounts described in subparagraphs (B t (E), inclusive, of paragraph (5). Add any amounts that were transferred as identified in Paragraphs ( and ( of subdivision (c) if an entorceab)e obligation to make that transfer did not exist The resulting sure shall be available for allocation to affected taxing entities pursuant to Section 34179 6. 1f shalt be a rebuttable presumption that cash and cash equivalent balances avaif ble to the successor agency are avaitabie and sufficient to disburse the amount determined in this paragraph to taxing entities, If there are insufficient cash balances to transfer or cash or cash equivalents are specifically obligated to the purposes described in subparagraphs (B), (D), and E of paragraph in such amounts that there is insufficient cash to provide the full amount determined pursu@nt to this paragraph, that amount shall be demonstrated in an additional itemized schedule. ENDY L, WAT NABS AUDITOR -CONTROLLER J DI E THOMAS CHIEF DEPUTY ,duly 26, 2011 COUNTYof LOS ANGELES DEPARTMENT of AUMORwCONTROLLER KENNETH H HN HALL of ADMINISTRATION TRATION 500 WEST TEMPLE STREET, Roots 525 LOS ANGELES, CALIFORNIA 90012-3873 PHONE: ( 13) 974-3301 FAX (21 3) 626-5427 VIA ELECTRONICMAIL 5 ' f 14 �i��a}ry. /may +l ■��y��J��yy�y TYiy�{ *'4ti.FV'+ M �� f7Yf rr.T f i F AUDIT DVt=N 350 S, FIGUERO 4 ST., 6T" FLW , LOS ANGELES, CA 90071 T 0 Christy Valencia 4 Finance Manager City of Lynwood - FR : Robert Campbell, Chief Audit Division SUBJECT: APPROVAL of VASQUEZ & COMPANY LLP To CONDUCT A DUE DILIGENCE REVIEW PURSUANT To AB 1484 We have reviewed and approve your request to hire Vasquez Company.LLP to conduct a due diligence review of the successor agency for the City of Lynwood, in accordance with Health and Safety Code Section 34179.5(a). We have verified that Vasquez & Company LLP is licensed and in good standing with the California Board of Accountancy, and does not have any dis 1plinalry actions or license restrictions as of the date of our review. We also reviewed information your provided regarding the firma local government accounting experience and. its relationship, if any, to the former redeVelopment agency of the City of Lynwood, the successor agency, and the City of Lynwood. Based on our review, we found nothing that would disqualify Vasquez & Company LLP from conducting the due diligence review. Please contact Keri Van Orden of my staff at kvanorden@auditor.lacoun!Y.gov or(213) 253`01607 if you have questions or need additional information. RGC,.MP-KVO c, Wendy L. Watanabe, , Auditor -Controller Help Conserve Paper — Print Double-Side "To Emrich Lives Through Effective and Gering Services