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CC - Item 4E - Annual Report Of The Rosemead Redevelopment Agency For Fiscal Year 00-011?0 TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: BILL C, CITY MANAGER DATE: JULY 9, 2002 RE: ANNUAL REPORT OF THE ROSEMEAD REDEVELOPMENT AGENCY FOR FISCAL YEAR 2000-01 Pursuant to California Redevelopment Law, the Rosemead Redevelopment Agency is required to submit an Annual Report of its activities each year to the City Council. The attached Annual Report for Fiscal Year 2000-01 has been prepared by staff and meets all of the requirements of law. RECOMMENDATION It is recommended that the City Council accept the Annual Report. ` JUL 0 9 2002 1 I ITEM N0. ANNUAL REPORT FOR FISCAL YEAR 2000 - 2001 ROSEMEAD REDEVELOPMENT AGENCY Introduction Every redevelopment agency is required to submit to the legislative body and the State Controller an annual report for its approval. Generally, the annual report must contain the following information. A. Audit An independent financial audit, including an opinion as to the agency's compliance with applicable laws, regulations and administrative requirements is required. The audit must also report on the agency's financial activities with respect to money required to be held in a separate low- and moderate-income housing fund pursuant to California Redevelopment Law (the "CRL°). B. Fiscal Statement A fiscal statement containing information on the amount of indebtedness, the amount of tax increment revenues received by the Agency, the amount of tax increment revenue paid to any taxing entities and other information required by the CRL. C. Actions and Expenditures in Alleviating Blight A description of the agency's progress, including specific actions and expenditures, in alleviating blight in the fiscal year must be reported. D. Housing Activities The CRL specifies the reporting requirements for an agency's housing activities, including displacement. The housing report must contain information for all housing activities within the project area, whether or not they are funded exclusively, by other public agencies. II. The Annual Report The Rosemead Redevelopment Agency (the "Agency") has prepared its Annual Report for the 2000-21 Fiscal Year. This Report must be submitted to the City Council of the City of Rosemead for its review and approval. A. Independent Financial Audit McGladrey & Pullen, LLP, Certified Public Accountants performed an audit of the general-purpose financial statements of the Rosemead Redevelopment Agency for the fiscal year ending June 30, 2001. In their opinion, the general purpose financial statements present fairly, in all material respects, the financial position of the Agency as of June 30, 2001, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. Rosemead Redevelopment Agency ♦ 1 McGladrey & Pullen performed tests of the Agency's compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. The results of their tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. In planning and performing their audit, McGladrey & Pullen considered the Agency's internal control over financial reporting. This consideration would not necessarily disclose all matters in internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. McGladrey & Pullen noted no matters involving internal control and its operations that they consider to be material weaknesses as defined above. A copy of the Annual Financial Report for Fiscal Year ended June 30, 2001 for the Agency is attached to this Report as Exhibit A. B. Redevelopment Agencies Financial Transactions Report The Agency's Financial Transactions Report has been prepared by the Agency's Fiscal Officer, Karen Ogawa, and submitted to the State Controllers office pursuant to CRL. This report provides all of the financial information required for the Annual Report. A copy of the Report is attached as Exhibit B. C. Actions and Expenditures in Alleviating Blight Pursuant to the Agency's approved Implementation Plan for Project Area No. 1 for Fiscal Years 1999-00 through 2003-04, the Agency's progress in alleviating blight is described by the following actions and expenditures of the Agency. 1. The Rosemead Redevelopment Agency through the Rosemead Housing Development Corporation (the "RHDC") began construction of the 72-unit Garvey Senior Citizens Residential Complex. The four (4)-story housing project is being developed in conjunction with a community center occupying a portion of the site. The community center will provide recreation and meeting facilities for the occupants of the senior housing project and the overall community. The total square footage of the complex is approximately 67,500 square feet for the housing portion and 25,000 for the community center. 2. A First-Time Homeowner Purchase Program is operated by the RHDC using Housing Fund. Financial assistance is made available in the form of deferred payment and low-interest loans for the purchase of single-family homes or condominium units. The loan funds are used to cover the difference between the purchase price of a home (market value) and the sales price that would be affordable to the Rosemead Redevelopment Agency ♦ 2 purchaser. The loans are used to provide down payment assistance for households qualifying under guidelines that been established by the RHDC. During this reporting period, one $20,000 loan was made to a moderate-income household. 3. The Agency provided numerous capital improvements for the community including, improvements to the Rosemead Park and Pool; Garvey Park and Pool; Garvey Community Center and Zapopan Park and Community Center. D. Redevelopment Agency Loans The Agency has no loans that are fifty thousand dollars ($50,000) or more, that are in default or not in compliance with the terms of the loan approved by the Agency. E. Agency Owned Property The Agency currently owns no property. F. Housing Activities Displacement The total number of non elderly and elderly households, including separate subtotals of very low income households, other lower income households, and persons and families of moderate income, that were displaced or moved from their dwelling units as a part of a redevelopment project of the Agency during Fiscal Year 2000-01. Income Number Very Low 0 Other Low 0 Moderate 0 The total number of non elderly and elderly households, including separate subtotals of very low income households, other lower income households, and persons and families of moderate income, that the Agency estimates will be displaced or will move from their dwelling units as a part of a redevelopment project during Fiscal Year 2000-01. Income Number Very Low 0 Other Low 0 Moderate 0 Rosemead Redevelopment Agency • 3 2. Demolition and Removal The total number of dwelling units housing very low income households, other lower income households, and persons and families of moderate income, respectively, which have been destroyed or removed from the low or moderate income housing market during reporting year as part of a redevelopment project of the Agency. Income Number Very Low Other Low Moderate 3. Construction and Rehabilitation The total number of Agency-assisted dwelling units which were constructed, rehabilitated, acquired or subsidized during the Fiscal Year 2000-01 for occupancy at an affordable housing cost by elderly persons and families, but only if the units are restricted by agreements or ordinance for occupancy by the elderly, and very low income households, other lower income households, and persons and families of moderate income, respectively, specifying those units which are not currently so occupied, those units which have replaced, destroyed or removed units pursuant to the CRL, and the length of time any agency assisted units are required to remain available at an affordable cost. Income Number Very Low 0 Other Low 0 Moderate 0 The total number of new or rehabilitated units subject to Health & Safety Code Section 33413(b) (2) (regarding the production of affordable units resulting from public or private construction), including separate subtotals of the number originally affordable to and currently occupied by, elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower incomes, and persons and families of moderate income, respectively, and the length of time these units are required to remain available at an affordable cost. Income Number Very Low 0 Other Low 0 Moderate 0 Rosemead Redevelopment Agency • 4 Exhibit A Annual Financial Report Rosemead Redevelopment Agency Rosemead, California ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 3% 2001 r■■■■■\ r a A■■■■■■■L MMMMMMMMM \ @19MEQ 0 ROSEMEAD REDEVELOPMENT AGENCY FINANCIAL AND COMPLIANCE REPORT JUNE 30, 2001 CONTENTS INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION FINANCIAL STATEMENTS Combined balance sheet - all fund types and account groups 2 and 3 Combined statement of revenues, expenditures and changes in fund balances - all governmental fund types 4 and 5 Combined statement of revenues, expenditures and changes in fund balances - budget and actual - all governmental fund types 6-8 Notes to financial statements 9- 18 SUPPLEMENTARY INFORMATION Combining balance sheet - special revenue funds 20 Combining statement of revenues, expenditures and changes in fund balances - special revenue funds 19 Computation of low-moderate income housing excess/surplus funds 20 and 21 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUD/TING STANDARDS 22 and 23 McGLADREY& PULLEN, LL P ® Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION To the Governing Board Rosemead Redevelopment Agency Rosemead, California RSM international We have audited the accompanying general purpose financial statements of the Rosemead Redevelopment Agency (the Agency), a component unit of the City of Rosemead, California, as of and for the year ended June 30, 2001. These general purpose financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Agency as of June 30, 2001, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated October 16, 2001 on our consideration of the Agency's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining fund statements and the computation of low-moderate housing excess/surplus funds listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the Agency. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. Pasadena, California October 16, 2001 ROSEMEAD REDEVELOPMENT AGENCY COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS June 30, 2001 Governmental Fund Assets and Other Debits Special Revenues Debt Service Capital Projects Assets Cash and investments $ 6,567,512 $ - $ 13,665,178 Receivables 73,128 32,834 175,707 Restricted cash and investment - 2,323,333 - Due from the City of Rosemead - _ 5 Property and equipment _ _ _ Other Debits Amount available in Debt Service Fund - - _ Amount to be provided for retirement of general long-term debt - _ - Total assets and other debits $ 6,640,640 $ 2,356,167 $ 13,840,890 Liabilities, Equity and Other Credits Liabilities Accounts payable and accrued liabilities $ 173,959 $ - $ 294,198 Due to the City of Rosemead _ _ - Tax allocation bonds _ Total liabilities 173,959 - 294,198 Equity and Other Credits Investment in general fixed assets Fund balances: Reserved for Debt Service Reserved for Low-Moderate Income Housing Unreserved, designated for redevelopment projects Total equity and other credits Total liabilities, equity and other credits See Notes to Financial Statements. ' 6,136,067 2,356,167 330,614 - 13,546,692 6,466,681 2,356,167 13,546,692 $ 6,640,640 $ 2,356,167 $ 13,840,890 2 Account Groups Totals (Memorandum Only) General General Fixed Assets Lang-term Debt 2001 2000 $ $ - $ 20,232,690 $ 20,729,969 - 281,669 541,034 - 2,323,333 2,324,304 5 10,940,994 - 10,940,994 9,444,660 - 2,356,167 2,356,167 2,335,495 - 32,268,833 32,268,833 32,634,505 $ 10,940,994 $ 34,625,000 $ 68,403,691 $ 68,009,967 $ $ $ 468,157 $ 178,160 - 204,373 34,625,000 34,625,000 34,970,000 34,625,000 35,093,157 35,352,533 10,940,994 - 10,940,994 9,444,660 - - 2,356,167 2,335,495 - 6,136,067 6,358,788 - 13,877,306 14,518,491 3 ROSEMEAD REDEVELOPMENT AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 2001 Revenues: Property tax increment Intergovernmental Use of money and property Other Total revenues Expenditures: Current: Improvements to project area Operating Professional fees City administrative services Facility charge paid to City Debt service: Principal Interest Total expenditures Revenues over(under)expenditures Other financing sources (uses): Operating transfers: From other funds (To) other funds Total other financing sources (uses) Revenues and other financing sources over (under) expenditures and other financing sources (uses) Fund balance, beginning Fund balance, ending See Notes to Financial Statements. Revenues Debt Service Capital $ $ $ 2,945,876 55,795 497,070 157,977 1,076,534 7,232 - - 504,302 157,977 7078,205 - - 1,378,299 677,773 - - 23,513 - 49,828 90,000 - 1,036,458 60,000 - - 345,000 - 1,922,847 - 851,286 2,267,847 2,464,585 (346,984) (2,109,870) 1,613,620 1,040,409 2,130,542 (800,000) - (2,370,951) 240,409 2,130,542 (2,370,951) (106,575) 20,672 (757,331) 6,573,256 2,335,495 14,304,023 $ 6,466,681 $ 2,356,167 S 13,546,692 4 Totals (Memorandum Only) 2001 2000 $ 2,945,876 $ 2,990,564 55,795 - 1,731,581 1,297,324 7,232 34,181 4,740,484 4,322,069 1,378,299 2,016,636 677,773 140,066 73,341 51,038 1,126,458 1,067,374 60,000 60,000 345,000 330,000 1,922,847 1,942,258 5,583,718 5,607,372 (843,234) (1,285,303) 3,170,951 2,372,248 (3,170,951) (2,372,248) (843,234) (1,285,303) 23,212,774 24,498,077 $ 22,369,540 $ 23,212,774 ROSEMEAD REDEVELOPMENT AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES Year Ended June 30, 2001 Revenues: Property tax increment Intergovernmental Use of money and property Other Total revenues Expenditures: Current Improvement to project area Operating Professional fees City administrative services Facility charge paid to City Debt service: Principal Interest Total expenditures Revenues over(under)expenditures Other financing sources (uses): Operating transfers: From other funds (To) other funds Total other financing sources (uses) Revenues and other financing sources over(under)expenditures and other financing uses Fund balance, beginning Fund balance, ending See Notes to Financial Statements. Special Revenue Funds Variance Favorable Budget Actual (Unfavorable) $ - $ - $ - 216,600 497,070 280,470 5,000 7,232 2,232 221,600 504,302 282,702 5,159,540 677,773 4,481,767 14,000 23,513 (9,513) 90,000 90,000 60,000 60,000 - 5,323,540 851,286 4,472,254 (5,101,940) (346,984) 4,754,956 1,040,409 1,040,409 (800,000) (800,000) 240,409 240,409 $ (5,101,940) (106,575) $ 4,995,365 6,573,256 $ 6,466,681 6 Debt Service Funds Capital Project Funds Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) $ - $ - $ - $ 2,800,000 $ 2,945,876 $ 145,876 - 55,795 55,795 135,000 157,977 22,977 160,000 1,076,534 916,534 135,000 157,977 22,977 2,960,000 4,078,205 1,118,205 9,721,090 1,378,299 8,342,791 49,500 49,828 (328) - - 959,900 1,036,458 (76,558) 345,000 345,000 - - 2,267,848 2,130,542 (137,306) 7,429,419 (7,429,419) - - (7,429,419) (2,370,951) 5,058,468 2,267,848 2,130,542 (137,306) (2,370,951) (2,370,951) $ 135,000 20,672 $ 2,335,495 $ 2,356,167 (114,328) $ (7,770,490) (757,331) $ 7,013,159 14,304,023 $ 13,546,692 7 ROSEMEAD REDEVELOPMENT AGENCY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES, CONTINUED Year Ended June 30, 2001 Revenues: Property tax increment Intergovernmental Use of money and property Other Total revenues Expenditures: Current: Improvement to project area Operating Professional fees City administrative services Facility charge paid to City Debt service: Principal Interest Total expenditures Revenues over(under)expenditures Other financing sources (uses): Operating transfers: From other funds (To) other funds Total other financing sources (uses) Revenues and other financing sources over (under) expenditures and other financing uses Fund balance, beginning Fund balance, ending See Notes to Financial Statements. Totals Variance Favorable Budget Actual (Unfavorable) $ 2,800,000 $ 2,945,876 $ 145,876 - 55,795 55,795 511,600 1,731,581 1,219,981 5,000 7,232 2,232 3,316,600 4,740,484 1,423,884 9,721,090 1,378,299 8,342,791 5,159,540 677,773 4,481,767 63,500 73,341 (9,841) 1,049,900 1,126,458 (76,558) 60,000 60,000 345,000 345,000 - 1,922,848 1,922,847 1 18,321,878 5,583,718 12,738,160 (15,005,278) (843,234) 14,162,042 9,697,267 3,170,951 (6,526,316) (7,429,419) (3,170,951) 4,258,468 2,267,848 - (2,267,848) $ (12,737,430) (843,234) $ 11,894,196 23,212,774 $ 22,369,540 8 ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 1. Nature of Operations, Reporting Entity, Fund Accounting and Significant Accounting and Reporting Policies Nature of operations: The Rosemead Redevelopment Agency (the Agency) was established in June 1972 pursuant to State of California Health and Safety Code Section 33000 entitled Community Redevelopment Law. Its purpose is to finance street, park and utility improvements. It also acquires and constructs major capital facilities all within the Rosemead Project Area No. 1. The Agency is a component unit of the City of Rosemead (the City), California, and is included in the general purpose financial statements of the City. The Agency has the same fiscal year as the City. The financial statements contain information for the Agency only. The City financial statements can be obtained from the Finance Department of the City. Reporting entity: As required by GAAP, these financial statements present the government and its component unit, an entity for which the government is considered to be financially accountable. A blended component unit, although a legally separate entity, is, in substance, part of the government's operations and; therefore, data from this unit is combined with data of the primary government. The blended component unit included in the Agency's reporting entity is the Rosemead Housing Development Corporation (the Corporation). The Corporation is a California nonprofit public benefit corporation organized under Section 501(c)(3) of the Internal Revenue Code. The Corporation accounts for the construction, financing and operations of low-moderate income housing. The Corporation's financial statements can be obtained from the Finance Department of the City. Fund accounting: The accounts of the Agency are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts which comprise its assets, liabilities, equity, revenues and expenditures. The financial statements of the Agency have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The various funds and account groups are presented as follows: Governmental fund types: The Special Revenue Funds account for the proceeds of specific revenue resources (other than major capital projects) that are legally restricted to expenditures for specified purposes. The Special Revenue Funds and their purposes are as follows: Low-Moderate Income Housing Set-Aside Fund - Accounts for the 20% of gross property tax increment revenue received by the Agency to fund future projects involving the replacing or rehabilitation of low-moderate income housing within City limits. Rosemead Housing Development Corporation - Accounts for the construction and financing of low-moderate income housing. 9 ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 1. Nature of Operations, Reporting Entity, Fund Accounting and Significant Accounting and Reporting Policies, Continued The Debt Service Fund accounts for the accumulation of resources for the payment of general long- term debt principal, interest and related costs. The Capital Projects Fund accounts for the financial resources to be used for the improvement and rehabilitation of the community redevelopment project areas and acquisition or construction of major capital facilities within the Agency. Account groups: The General Fixed Assets Account Group accounts for all Agency general fixed assets The General Long-term Debt Account Group accounts for the outstanding principal balances of all Agency long-term debt expected to be financed from Governmental Fund Types. The following is a summary of the significant accounting and reporting policies: Basis of accounting and change in accounting policy: Governmental Fund Types are accounted for using the modified accrual basis of accounting. Revenue is recognized in the accounting period in which it becomes both measurable and available to finance the expenditures of the current period. "Measurable" means the amount of the transaction can be determined. "Available" means collectible within the current period or soon enough thereafter to pay current liabilities. Expenditures are generally recognized in the accounting period in which the fund liability is incurred, if measurable, except expenditures for debt service on long-term obligations, which are recognized when due. Change in accounting policy: Beginning July I, 2000, the Agency adopted Government Accounting Standards Board (GASB) Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions. GASB Statement No. 33 requires that governments record and report assets, liabilities, revenues and expenditures for the four types of nonexchange transactions, including restating prior financial information, if necessary. During the year ended June 30, 2001, the Agency recorded imposed nonexchange revenues and voluntary nonexchange transactions as defined below: 1. Imposed Nonexchange Revenues - Assessments imposed on nongovernmental entities, including individuals, other than assessments on exchange transactions (e.g., property taxes and fines). Assets are recognized when the government has an enforceable legal claim to the resources or resources are received, whichever occurs first. Revenues are recognized when the use of the resources is required or first permitted by time requirements, or at the same time as the assets if the government has not established time requirements and resources are available. 2. Voluntary Nonexchange Transactions - Legislative or contractual agreements, other than exchanges, entered into willingly by the parties to the agreement (e.g., certain grants and private donations). Assets are recognized when all applicable eligibility requirements are met or resources are received, whichever occurs first. Revenues are recognized when all applicable eligibility requirements are met and resources are available. 10 ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 1. Nature of Operations, Reporting Entity, Fund Accounting and Significant Accounting and Reporting Policies, Continued There was no material effect on the Agency's beginning fund balance as a result of the adoption of this standard and, therefore, no change in fund balance was recorded as of June 30,2000. Cash and investments: The Agency pools cash and investment resources of some of its funds in order to facilitate the management of cash. Cash applicable to a particular fund is readily identifiable. The balance in the pooled cash accounts is available to meet current operating requirements. Investments are stated at fair value. The fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced liquidation. The fair value of the investments is generally based on published market prices and quotations from major investment firms. Investment earnings are allocated based on the source of funds. Receivables: Property taxes attach as an enforceable lien on property as of March 1. Taxes are levied on July I and are payable in two installments on December 10 and April 10. The County of Los Angeles bills and collects the property taxes and remits them to the Agency in installments during the year. Property taxes received within 60 days after the Agency's fiscal year end are considered "measurable" and "available" and are accrued in the Agency's financial statements. All other receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. Property and equipment: All property and equipment of the Agency are accounted for in the General Fixed Assets Account Group. Property and equipment items acquired or constructed for general governmental operations are recorded as expenditures in the fund making the expenditure and capitalized in the General Fixed Assets Account Group. All general fixed assets which were purchased or constructed are stated at cost. Assets acquired by gift or bequest are recorded at their fair market value at the date of transfer. No depreciation is recorded on general fixed assets. Fund balances: The reserved portion of the fund balances represents that amount which has been legally identified for the specific purpose or it represents that amount which is not available to liquidate current liabilities. The unreserved portion represents the amount available for future appropriations. Designated fund balances represent tentative plans for future use of financial resources. "Memorandum Only" total columns: Included on the combined financial statements are total columns captioned "Memorandum Only" to indicate that they are presented only for informational purposes. Adjustments to eliminate interfund transactions have not been recorded in arriving at such amounts and the memorandum totals are not intended to fairly present the financial position or results of operations of the reporting entity taken as a whole. Additionally, the 2000 totals presented in the "Memorandum Only" columns are included to provide a summarized comparison with comparable 2001 amounts and are not intended to present all information necessary for a fair presentation of financial position and results of operations in accordance with generally accepted accounting principles. ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 1. Nature of Operations, Reporting Entity, Fund Accounting and Significant Accounting and Reporting Policies, Continued Budget matters: Budgets presented in this report for comparison to actual amounts are presented in accordance with generally accepted accounting principles. The modified accrual basis of accounting is employed in the preparation of the budget. Reported budget amounts represent the original adopted budget as amended. The legal level of budgetary control is at the department level. Expenditures exceeded appropriations by $9,513 for the fiscal year ended June 30, 2001 in the Rosemead Housing Development Corporation Administration Department. Unexpended budgeted amounts lapse at the end of the budget year. Note 2. Cash and Investments The components of cash and investments at June 30, 2001 are as follows: Cash: Cash $ 2,076,591 Time certificates of deposit 1,989,598 Cash total 4,066,189 Investments Debt securities investments 100,000 Investment in State Treasurer's Investment Pool 16,066,501 Investments total 16,166,501 Cash and investments total $ 20,232,690 Cash: The Agency maintains cash and investment pools that are available for use by all funds. Each fund's or fund type's share of the pool balance is reported in the financial statements as cash and cash investments. Earnings from the pooled investments are allocated monthly to each participating fund based on a formula that takes into consideration each fund's average investment in the pool. At year end, the carrying amount of the Agency's deposits was $4,066,189 and the bank balance was $4,353,506. Of the bank balance, $502,893 was covered by federal depository insurance or by collateral held in the Agency's name, and $3,850,613 was collateralized by depository collateral pools as described in the following paragraph. In accordance with state statutes, the Agency maintains deposits at those depository institutions insured by the Federal Deposit Insurance Corporation. The California Government Code requires California banks and savings and loan associations to collateralize the deposits of governmental entities by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of those deposits. California law also allows financial institutions to secure the deposits of governmental entities by pledging first trust deed mortgage notes having a collateral value of 150% of an agency's total deposits. 12 ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 2. Cash and Investments, Continued The cash deposits are classified in three categories of credit risk as follows: Category one includes deposits that arc insured or collateralized with securities held by the entity or by its agent in the entity's name; Category two includes deposits that are collateralized with securities held by the pledging financial institution's Trust Department or agent in the entity's name; Category three includes deposits that are uncol lateral ized. Cash Time certificates of deposit Category 1 2 3 Total $ 402,893 $ 1,961,015 100,000 1,889,598 1,989, 598 $ 502,893 $3,850,613 $ $ 4,353,506 $ 2,363,908 Investments: State statutes authorize the Agency to invest any available funds in securities issued or guaranteed by the United States Treasury or agencies of the United States, bank certificates of deposit, bankers acceptances, negotiable certificates of deposit, the State Treasurer's Investment Pool (LAIF), repurchase agreements, commercial paper and bonds, and registered warrants or treasury notes of the State of California and its local agencies. An advisory board has been established to monitor LAIF's compliance with regulations and investment alternatives established by the State. The Agency participates in a voluntary external investment pool, LAIF, which is managed by the State Treasurer. LAIF has oversight provided by the Local Agency Investment Advisory Board. The Board consists of five members as designated by State statute. The Chairman of the Board is the State Treasurer or his designated representative. The fair value of the Agency's shares in the pool approximates the fair value of the position in the pool. At June 30, 2001, the Agency's pooled investments in LAIF in the amount of $16,066,501 are not subject to custodial credit risk categorization. The total estimated fair value invested by all public agencies in LAIF is $55,175,428,123. Of that amount, 95.49% is invested in nonderivative financial products and 4.51% in derivative financial products. Restricted cash and investments: All restricted cash and investments of the Agency are held by trustees or an escrow agent. The California Government Code provides that these funds, in the absence of specific governing provisions to the contrary, may be invested in accordance with the resolutions or indentures that specify the allowable investment of bond proceeds. and funds earmarked for bond repayment. 13 ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 2. Cash and Investments, Continued The Agency's investments, including restricted cash and investments, as of June 30, 2001, are categorized in the following schedule to give an indication of the level of risk assumed by the entity at year end: Category Uncate- 1 2 3 gorized Balance Investment U.S. government and government agency securities Investment in State Treasurer's Investment Pool Restricted cash and investments Guaranteed investment contract Total investments $100,000 $ $ $ - $ 100,000 - 16,066,501 16,066,501 2,3 $100,000 $ - $ - $18,389,834 $ 18,489,834 The three preceding risk description categories are defined as follows: Category Descripti Investments that are insured, registered or for which the securities are held by the Agency or its agent in the Agency's name. 2 Uninsured and unregistered investments for which the securities are held by the counterparty's Trust Department (if a bank) or agent in the Agency's name. 3 Uninsured and unregistered investments for which the securities are held by the counterparty's Trust Department (if a bank) or agent, but not in the Agency's name. Note 3. Reimbursement Agreements and Related-party Transactions The Agency has entered into various reimbursement agreements with the City which require the City to install certain public improvements for the benefit of the Rosemead Redevelopment Agency Project Area No. 1. In addition, the Agency reimburses the City for administrative services, facilities and other operating services which totaled $1,103,500 for the fiscal year ended June 30, 2001. The Agency and City are commonly controlled by the City Council. 14 ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 4. Property and Equipment During the year ended June 30, 2001, the changes in the general fixed assets were as follows: Balance Acquisitions Balance July I, 2000 (Dispositions) June 30, 2001 Land $ 2,271,308 $ 284,429 $ 2,555,737 Buildings and improvements 6,230,301 11,510 6,241,811 Furniture and fixtures 943,051 (4,369) 938,682 Construction in progress - 1,204,764 1,204,764 $ 9,444,660 $ 1,496,334 $ 10,940,994 In 1998 the Redevelopment Agency entered into a ground lease with the Army Corp of Engineers to provide for parking and access adjacent to the Rio Hondo Flood Control Channel in order for the Agency to proceed with the construction of a second Senior Citizen Housing project, which will consist of 72 housing units, and an adjacent 20,000 square-foot Community Center. The property for this project was purchased years ago by the Agency for $1.66 million, of which $1.0 million was reimbursed to the Agency by the City's Federal HOME funds. The costs incurred on this project will be allocated between the Corporation (Senior Citizen Housing project), the Agency and the City (Community Center). The Senior Housing project construction was started during the fiscal year ended June 30, 2001, whereby approximately $568,000 of costs was incurred on Senior Citizen Housing project through that date. The total estimated costs to complete of the Senior Citizen Housing project, including the $568,000 of costs already incurred, as of June 30, 2001 is approximately $7.2 million. The Community Center project construction began during the fiscal year ended June 30, 2001. Of the $888,000 in costs incurred during the year, the Agency and the City paid for approximately $637,000 and $251,000, respectively. The total estimated cost to complete the Community Center project, including the $888,000 of costs already incurred, as of June 30, 2001 is approximately $5.2 million. Note 5. Long-term Debt The following is a summary of general long-term debt transactions for the year ended June 30, 2001: Tax Allocation Tax Allocation Bonds Bonds Series 1993A Series 1993B Total Balance, July 1, 2000 $ 34,275,000 $ 695,000- $ 34,970,000 Payments of principal - (345,000) (345,000) Balance, June 30, 2001 $ 34,275,000 $ 350,000 $ 34,625,000 15 ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 5. Long-term Debt, Continued In November 1993, the Agency issued tax allocation bonds amounting to $34,275,000 (Series 1993A) and taxable tax allocation refunding bonds amounting to $2,435,000 (Series 1993B) to finance a portion of the cost of the redevelopment area known as Project Area No. 1. The bonds bear interest ranging from 4.6% to 5.6% and 5.2% to 5.9% for Series 1993A and B, respectively. Series 1993A bonds mature after October I, 2001 and before October I, 2033, and Series 19938 bonds matured on or before October I, 2001. In addition, the 1993 Series A bond issue reallocated $6,813,850 of proceeds from the 1991 bond issue deposited in the Low-Moderate Income Housing Set-Aside Fund in October 1991. The reallocation had the effect of satisfying the present value effect of the $423,574 borrowed from the Educational Revenue Augmentation Fund (ERAF) in fiscal year ended June 30, 1993 and satisfying the present value effect of the set-aside requirements as follows: $812,342 for fiscal year ended June 30, 1992, $847,147 for fiscal year ended June 30, 1993 and $469,142 for each of the fiscal years ended June 30, 1997 through June 30, 2022. Additional low-moderate income housing set-aside commitments are addressed in Note 7. The annual requirements, principal and interest to amortize the outstanding debt as of June 30, 2001 are as follows: During the Years Series 1993A Bonds Series 1993B Bonds Ending June 30, Principal Interest Principal Interest Total 2002 $ 20,000 $ 1,892,193 $ 350,000 $ 9,865 $ 2,272,058 2003 425,000 1,881,073 - - 2,306,073 2004 445,000 1,859,748 - - 2,304,748 2005 465,000 1,836,765 - - 2,301,765 2006 490,000 1,812,168 - - 2,302,168 Years thereafter 32,430,000 31,511,199 - - 63,941,199 $ 34,275,000 $ 40,793,146 $ 350,000 $ 9,865 $75,428,011 Tax allocation bonds, Series 1993A and B: The Tax Reform Act instituted certain arbitrage restrictions with respect to the issuance of tax-exempt bonds. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not paid to the federal government at least every five years. During the current year, the Agency performed calculations of excess investment earnings on various bonds and financings in accordance with arbitrage regulations. The Agency has determined that no arbitrage rebate liability exists as of June 30, 2001. 16 ROSEMEAD REDEVELOPMENT AGENCY NOTES TO FINANCIAL STATEMENTS Note 6. Risk Management The Agency is exposed to various risks of loss related to torts; thefts of, damage to and destruction of assets; errors and omissions; and natural disasters. The Agency, through the City, carries commercial liability insurance coverage. The Agency carries no insurance coverage for natural disasters. Since the Agency does not have any employees (it uses employees from the City), it is not liable for injury to employees, workers' compensation, or employee health and accident insurance. The City has had no reductions in insurance coverage nor did the City have any settlements which were in excess of insurance coverage in any of the three preceding years. Note 7. Commitments and Contingent Liabilities Low-Moderate Income Housing Set-Aside Fund: Under State law, the Agency is required to set aside a portion of its property tax increment revenue for low-moderate income housing. The Agency has made findings that, for the years ended June 30, 1986 through June 30, 1991, it was allowed to defer funding of the set-aside. The set-aside amounts incurred during the fiscal year ended June 30, 1994, 1995, 1996, 1997 and 1998 were also deferred until the fiscal year ending June 30, 2023, as provided by the Agency's adoption of the housing deficit repayment plan. As of June 30, 2001, the accumulated set-aside amount not yet funded was approximately $4,947,000. As required by law, the Agency devised a plan to fund the accumulating amount. Advance agreement: In February 1995, the Agency approved an agreement with a local utility company to advance the utility company $117,600 required to install water distribution mains within the Agency redevelopment area. The agreement remains on hold by the Agency as of October 16, 2001. Note 8. Property Management and Operations The Agency, through the Corporation, has an agreement with a management company, dated July 1994, to operate the development housing. This agreement is automatically renewed for successive periods of one year, unless terminated by the Corporation. The management company is responsible for collecting rents and receipts, employing an on-site manager and maintaining financial records. Total fees paid to the management company were $18,600 during fiscal year ended June 30, 2001. Note 9. Pronouncements Issued but Not Yet Adopted In June 1999, the GASB issued Statement of Governmental Accounting Standards No. 34, Basic Financial Statements and Management's Discussion and Analysis -for State and Local Governments. This Statement establishes new financial reporting model for state and local governments. The Agency will have to disclose the details about the full cost of providing government services and to allocate expenses and revenue to allow calculation of net costs program by program. The Agency will also need to report all capital assets, including infrastructure assets, and begin to track depreciation on these items year to year. The Agency will be required to implement the new financial model for its fiscal year ending June 30, 2003. However, for purposes of the retroactive reporting of major networks and subsystems of general infrastructure assets, the Agency will be required to implement this reporting as of fiscal year ending June 30, 2007. The Agency has not completed its assessment of the effect that the adoption of Statement No. 34 will have on its financial statements. 17 ROSEMEAD REDEVELOPMENT AGENCY COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS June 30, 2001 Rosemead Low-Moderate Housing Income Housing Development Totals Assets Set-Aside Fund Corporation 2001 2000 Cash and investments $ 6,062,939 $ 504,573 $ 6,567,512 $ 6,510,731 Receivables 73,128 - 73,128 82,378 Due from the City of Rosemead - - - - Total assets $ 6,136,067 $ 504,573 $ 6,640,640 $ 6,593,109 Liabilities and Equity Liabilities, accounts payable and accrued liabilities $ $ 173,959 $ 173,959 $ 19,853 Equity Fund balances: Reserved for low-moderate income housing Unreserved, designated for redevelopment projects Total equity Total liabilities and equity 6,136,067 6,136,067 6,358,788 - 330,614 330,614 214,468 6,136,067 330,614 6,466,681 6,573,256 $ 6,136,067 $ 504,573 $ 6,640,640 $ 6,593,109 18 ROSEMEAD REDEVELOPMENT AGENCY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUNDS Year Ended June 30, 2001 Rosemead Low-Moderate Housing Income Housing Development Set-Aside Fund Corooration Revenues: Use of money and property Other Total revenues Expenditures: Current: Operating Professional fees City administrative services Facility charge paid to the City Total expenditures Revenues over (under) expenditures Other financing sources: Operating transfers: From other funds (To) other funds Total other financing sources Revenues and other financing sources over (under) expenditures and other financing uses Fund balance, beginning Fund balance, ending Totals 2001 2000 $ 336,870 $ 160,200 S 497,070 $ 425,306 - 7,232 7,232 4,190 336,870 167,432 504,302 429,496 - 677,773 677,773 140,066 - 23,513 23,513 10,025 - 90,000 90,000 90,000 - 60,000 60,000 60,000 - 851,286 851,286 300,091 336,870 (683,854) (346,984) 129,405 240,409 800,000 1,040,409 236,519 (800,000) - (800,000) - (559,591) 800,000 240,409 236,519 (222,721) 116,146 (106,575) 365,924 6,358,788 214,468 6,573,256 6,201,332 $ 6,136,067 $ 330,614 $ 6,466,681 $ 6,573,256 19 ROSEMEAD REDEVELOPMENT AGENCY COMPUTATION OF LOW-MODERATE INCOME HOUSING EXCESS/SURPLUS FUNDS Year Ended June 30, 2001 Area I Fund Balance - Beginning of Year $ 6,358,788 Adjustments Less unavailable funds - included in beginning fund balance: Land held for resale - Rehabilitation loans - ERAF loan receivable - Set-aside deferrals - Unspent bond proceeds (5,322,234) Total unavailable funds (5,322,234) Available Fund Balance - Beginning of Year 1,036,554 Current year proceeds/uses (actual plus changes in unavailable): Proceeds 577,279 Uses (800,000) Changes in unavailable amounts 112,705 Available Fund Balance - End of Year 926,538 Encumbrances - Unspent bond proceeds present - Land sales - HS 33334.12(g)(3)(A) - Available Fund Balance - for Excess Surplus $ 926,538 Does available fund balance for excess/surplus exceed $1,000,000? If so, enter available fund balance and evaluate that amount against tax increment. If less, enter zero. $ - Does available fund balance for excess/surplus exceed the greater of prior four years' set-aside deposits or $1,000,000? Tax increment set-aside amounts: Fiscal year 1996-97 $ 709,334 Fiscal year 1997-98 691,181 Fiscal year 1998-99 708,027 Fiscal year 1999-00 705,661 Total set-aside deposited into fund 2,814,203 2,814,203 Excess/surplus Funds Greater of available fund balance for excess/surplus or prior four years' tax increment set-aside deposits $ - 20 ROSEMEAD REDEVELOPMENT AGENCY COMPUTATION OF LOW-MODERATE INCOME HOUSING EXCESS/SURPLUS FUNDS, CONTINUED Year Ended June 30, 2001 Project Area I Reconciliation to Ending Fund Balance Ending GAAP fund balance S 6,136,067 Available fund balance,- end of year above Add unavailable funds - end of year Land held for resale Rehabilitation loans ERAF loan receivable Set-aside deferrals Other: Unspent bond proceeds Total unavailable funds 5,209,529 $ 926,538 5,209,529 $ 6,136,067 21 L McGLADREY& PULLEN, LLP RSM ® Certified Public Accountants international INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTA UDITING STANDARDS To the Governing Board Rosemead Redevelopment Agency Rosemead, California We have audited the general purpose financial statements of the Rosemead Redevelopment Agency (the Agency), a component unit of the City of Rosemead, California, as of and for the year ended June 30, 2001, and have issued our report thereon dated October 16, 2001. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the Agency's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. This included those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control over Financial Reporting In planning and performing our audit, we considered the Agency's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on internal control over financial reporting. Our consideration of internal control over financial reporting would not necessarily disclose all matters in internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control and its operations that we consider to be material weaknesses as defined above. 22 This report is intended for the information of the Governing Board and management of the Agency and is not intended to be and should not be used by anyone other than those specified parties. 4CX* ¢ / L LB Pasadena, California October 16, 2001 23 Exhibit B Redevelopment Agencies Financial Transactions Report REDEVELOPMENT AGENCIES FINANCIAL TRANSACTIONS REPORT COVER PAGE Rosemead Redevelopment Agency Fiscal Year: 2001 ID Number: 13981974600 Submitted by: EXECUTIVE DIRECTOR SI nature Title FRANK G TRIPEPI 12-27-01 Name (Please Print) Date Per Health and Safety Code section 33080, this report is due within six months after the end of the fiscal year. The report is to include two (2) copies of the agency's component unit audited financial statements, and the report on the Status and Use of the Low and Moderate Income Housing Fund (HCD report). To meet the filing requirements, all portions must be received by the California State Controller's Office. To file electronically: 1. Complete all forms as necessary. 2. Transmit the completed output file using a File Transfer Protocol (FTP) program or via diskette. 3. Sign this cover page and mail to either address below with 2 audits and the HCD report. To file a paper report: 1. Complete all forms as necessary. 2. Sign this cover page, and mail complete report to either address below with 2 audits and the HCD report. Report will not he considered filed until receipt of this signed cover page. Mailing Address: Express Mailing Address: State Controller's Office Division of Accounting and Reporting Local Government Reporting Section P. O. 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J m d L y CD C d N m A O C- p d N LLX m jy N C d O OI c a o d E d~ d~ v rLr A V N p .6 C LL C N d d d W c d 'h a c N O S C d IL p O J C Za ~ mi d t p LL ~ N G Wi N d O' V d c d LL a d X D IL p p d y d p O " C Z d N 0I C d N d ~ . N N N d c ` ° v N 9 m c m m d m m w U m d } N d E N m Z m an d m z an d m m d7 m Nm a a d ay o o~ o- N S > N N C O J J C ~ t•- O W ll W . LL LL 7 LL 7 m- O, o ~I w s iD a N d m CL D m U L_ p c d d N J d t y U m m 0 co N N 0 0~ o: N N, cq! I 0 0 N c 12 0 N C 0 H 0 y Y C m 0 n iz o C Q 12 5 O 0 y 0 C C ~ C ~ C A C 0 F 0 d C d u - u c m c v n ~ O ~ 0 m a 0 E E U) N 7 d n W 0 c m c 0 y 0 U VI C C - 0 O H C ~ 0 C E~ E 65 C nU Supplement to the Annual Report of Community Redevelopment Agencies For the Fiscal Year Ended June 30, 2001 Redevelopment Aenc ID Number: 13981974600 Name of Redevelopment Agency: Address: 8838 E VALLEY BOULEVARD City, State, Zi : ROSEMEAD CA 91770 The U.S. Bureau of the Census requests the following information about the fiscal activities of your government for the 2000-2001 fiscal year. Govemments famishing this information will no longer receive U.S. Bureau of the Census Form F-32, Survey of Local Government Finances. If you have any questions, please contact U.S. Bureau of the Census Jeffrey Little 1-800-2424523 A. Personnel Expenditures Report your government's total expenditures for salaries and wages during the year, including amounts paid on force account construction projects. Z00 $ 2 809 585 B. Mortgage Revenue Bond Interest Payments Report your government's total amount of interest paid on mortgage revenue bonds during the year. U20 $ C. Cash and Investments Held at the End of the Fiscal Year Report separately for each of the three types of funds listed below, the total cash on hand, cash on deposit, and investments in Federal government, Federal agency, State and local government and non-governmental securities. Report all investments at par value. Include in the sinking fund total any mortgages and notes receivable held as offsets to housing and industrial financing loans. Exclude accounts receivable, value of real property and non-security assets 1. Sinking Funds - Reserves held for the redemption of long-term W01 $ debt 6,389,522 2. Bond Funds - Unexpended proceeds from the sale of bond issues W31 $ pending disbursement. 3. All Other Funds - Exclude employee retirement funds. W61 $1 6,166,501 U.S. Bureau of the Census - Revised 01101 IV. CONSENT CALENDAR CC-A APPROVAL OF UNDERTAKING AGREEMENT FOR PARCEL MAP 26446 - 7637-7641 GRAVES AVENUE CC-B EXTENSION OF AGREEMENT WITH MARIPOSA LANDSCAPES CC-C RENEWAL OF MEMBERSHIP IN THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS CC-D AUTHORIZATION TO REJECT CLAIMS AGAINST THE CITY FROM MICHAEL AND LINDA DUNLAP -E ANNUAL REPORT OF THE ROSEMEAD REDEVELOPMENT AGENCY FOR FISCAL YEAR'-2000-01 , CC-r AUTHORIZATION TO ATTEND ANNUAL LEAGUE OF CALIFORNIA CITIES CONFERENCE, OCTOBER 2-5,2002, LONG BEACH MOTION BY COUNCILMAN IMPERIAL, SECOND BY COUNCILMAN TAYLOR that the µ . Council approve the aforementioned items on the Consent Calendar. Vote resulted: Yes: Imperial, Taylor, Clark, Vasquez No: None Absent: Bruesch Abstain: None f e Mayor declared said motion duly carried and so ordered. V. MATTERS FOR DISCUSSION AND ACTION- None VI. STATUS REPORTS - None VH. ' MATTERS FROM OFFICIALS A. RESOLUTION NO. 2002-30 - RELATIVE TO.THE EXTRADITION OF CRIDIINALS The following Resolution was presented to the Council for adoption: RESOLUTION NO. 2002-30 CCMIN:7-09-02 Page a3