HomeMy Public PortalAboutOversight Board Minutes - 2013/01/07Monday, January 7, 2013
STATEMENT OF PROCEEDINGS FOR THE REGULAR MEETING OF THE
CITY OF TEMPLE CITY OVERSIGHT BOARD
CITY OF TEMPLE CITY
COUNCIL CHAMBERS
5938 KAUFFMAN AVENUE
TEMPLE CITY, CALIFORNIA 91780
1:00 p.m.
AUDIO LINK FOR THE ENTIRE MEETING (13-0527)
Attachments: Audio
I. CALL TO ORDER
Chair Jaynes called the meeting to order at 1:00 p.m.
II. ROLL CALL
Tanya Ruiz, Oversight Board Secretary, called the roll:
Present: Board Members Brian Haworth, Linda Payne, Jose Pulido,
Scott Wiles, Vice Chair Steven Peacock and Chair David Jaynes
Vacancies: County of Los Angeles Appointee
III. STAFF COMMUNICATIONS
This time is set aside for Successor Agency staff to update the Board on
important items initiated by staff or previously requested by the Oversight Board.
1. Update on the “Meet and Confer” with the Department of Finance on October 1,
2012. (12-5083)
Tracey Hause, Administrative Services Director, presented a verbal report
on the "Meet and Confer" telephone conference that took place between the
Successor Agency and the Department of Finance (DOF) on October 1,
2012. Ms. Hause informed the Oversight Board that the DOF submitted
their determinations in a December 18, 2012, letter denying all requests of
the Successor Agency, including the remaining bond proceeds listed in the
Due Diligence Review as well as funds related to the Rosemead Boulevard
Project listed in the Recognized Obligation Payment Schedule for the
period of January 1, 2013 through June 30, 2013 (ROPS 3); and concluded
that the Successor Agency staff intends to continue contesting the DOF’s
determinations.
By Common Consent, there being no objection (County of Los Angeles
Appointee being vacant), the Oversight Board accepted Ms. Hause's report.
January 7, 2013 Temple City Oversight Board Statement of Proceedings
IV. ADMINISTRATIVE MATTERS
2. Recommendation: Approve the minutes for September 26, 2012. (12-0218)
On motion of Board Member Payne, seconded by Vice Chair Peacock, duly
carried by the following vote, the Oversight Board approved the September
26, 2012 Minutes.
Ayes: Board Members Haworth, Payne, Pulido, Wiles,
Vice Chair Peacock and Chair Jaynes
6 -
Vacancies: County of Los Angeles Appointee 1 -
Attachments: September 26, 2012 Minutes
V. DISCUSSION
3. Discussion and review of the All Funds Due Diligence Review (DDR) report,
convening a public comment session thereon, and setting a date for vote thereon,
pursuant to Health and Safety Code Section 34179.6(b). (13 -0179)
Tracey Hause, Administrative Services Director, provided a staff report and
the All Other Funds Due Diligence Review Report (DDR) to the Oversight
Board. Ms. Hause explained the DDR process and concluded her
presentation with the recommendation that the Oversight Board (1) receive
and file the DDR report, (2) convene the public comment session, and (3)
continue to allow public comments until January 14, 2013.
David Showalter, Accountant, Vavrinek, Trine, Day & Co., LLP, explained
that the purpose of the report is to determine what assets can be disbursed
to the taxing entities; and the report concluded that $6,956 would be
remitted to the County of Los Angeles for disbursement to taxing entities.
Mr. Showalter also informed that the Agreed Upon Procedures (AUP) report
revealed transfers that were made in January 1, 2011 through January 31,
2012, and referred to page 10 of the report, which lists property transfers
made by the Successor Agency to the City of Temple City. He noted that
since the transfers were made during that specific time period, the
Successor Agency may be required to reverse the transact ions.
Mr. Showalter also referenced pages 5 and 6 of the report, and revealed that
Procedure 6 lists the Successor Agency’s restricted assets. He explained
that the Successor Agency classified assets totaling $1,982,914 as
restricted unspent bond proceeds and of that amount, $627,255 was
identified as restricted for bond debt service reserve with a third -party
trustee. Furthermore, Mr. Showalter informed that based on the report,
$1,355,689 has been identified as unspent bond proceeds.
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January 7, 2013 Temple City Oversight Board Statement of Proceedings
Ms. Hause pointed out that the $1,355,689 amount is unspent bond
proceeds for the 2005 bonds, which are restricted for the Rosemead
Boulevard Redevelopment Project Area. . Ms. Hause informed that bond
proceeds are normally transferred to a third -party, but in 2005, the former
Redevelopment Agency failed to do so, therefore, the funds were
comingled into the Successor Agency’s checking account and not in a
separate bank or trustee account.
Teresa Highsmith, Oversight Board Legal Counsel, informed the Oversight
Board that the procedures in the report were completed accurately, legally,
and noted that she had no issues or concerns to report.
By Common Consent, there being no objection (County of Los Angeles
Appointee being vacant), the Oversight Board opened the public comment
session.
On motion of Board Member Payne, seconded by Board Member Wiles,
duly carried by the following vote, the Oversight Board: (1) Received and
filed the All Other Funds Due Diligence Review Report; (2) Opened the
Statutory public comment and received no public input; and (3) Continued
to allow for public comments to Monday, January 14, 2013 at 2:30 p.m.:
Ayes: Board Members Haworth, Payne, Pulido, Wiles,
Vice Chair Peacock and Chair Jaynes 6 -
Vacancies: County of Los Angeles Appointee 1 -
Attachments: Staff Report
Final All Funds Due Diligence Review
All Funds Due Diligence Review
Resolutionhttp://file.lacounty.gov/bos/supdocs/73629.pdf
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January 7, 2013 Temple City Oversight Board Statement of Proceedings
4. Discussion on the repayment of deferred Housing Fund Deposits. (12-5081)
Tracey Hause, Administrative Services Director, presented a staff report
and briefed the Oversight Board that in 1985, the form er Redevelopment
Agencies (RDA) were required to set aside 20% of tax increment for Low
and Moderate Income Housing Funds; however, the rules did not become
fully defined until 1996. In 2011, Seifel Consulting was retained by the RDA
to investigate all aspects of the RDA’s revenue projections, outstanding
financial obligations and historical use of Housing Funds. The report
indicated that from 1985 to 1996, the RDA, as permitted by law, deferred
depositing its required 20% of gross tax increment into the Housing Fund.
The calculation of how the Low and Moderate Deferral (20% Set aside)
asset of $753,736 was derived and noted in Attachment A of the staff report.
Therefore, the RDA, before its dissolution, had not approved a repayment
schedule for this outstanding debt as ABx1 26 halted any actions.
Chair Jaynes questioned who will be responsible for the repayment of the
debt. Teresa Highsmith, Oversight Board Legal Counsel, informed the
Oversight Board that the Successor Agency will have to repay the Hou sing
Successor Agency over a time period, beginning Fiscal Year 2013 -2014.
Ms. Highsmith also indicated that the Successor Agency has no
information on the repayment schedule nor the steps required, but assured
the Oversight Board that the direction will come from the State.
By Common Consent, there being no objection (County of Los Angeles
Appointee being vacant), the Oversight Board received and filed the report.
Attachments: Staff Report
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January 7, 2013 Temple City Oversight Board Statement of Proceedings
VI. MISCELLANEOUS
5. Matters not on the posted agenda (to be presented and placed on the agenda of
a future meeting). (12-5084)
Board Member Wiles requested to change the meetin g time for the Special
Meeting of January 14, 2013 from 1:00 p.m. to 2:30 p.m.
On motion of Chair Jaynes, by Common Consent, there being no objection
(County of Los Angeles Appointee being vacant), the Oversight Board
approved the change in time from 1:00 p.m. to 2:30 p.m. for the Special
Meeting of Monday, January 14, 2013.
6. Public Comment. (12-5085)
There were none.
7. Adjournment. (12-5086)
The meeting adjourned at 2:09 p.m. A Special Meeting has been scheduled
for Monday, January 14, 2013 at 2:30 p.m.
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