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OB - Item 2A - Minutes 11-26-12Minutes of the Oversight Board for the Successor Agency to the Rosemead Community Development Commission Meeting November 26, 2012 The regular meeting of the Oversight Board for the Successor Agency to the Rosemead Community Development Commission was called to order by Chair Wallach at 5:05 p.m. in the Rosemead City Council Chamber located at 8838 East Valley Boulevard, Rosemead, California. PLEDGE OF ALLEGIANCE: Board Member Allred PRESENT: Board Members Allred, Redondo - Churchward, Lash, Wallach ABSENT: Board Members Alvarez, Jones, Miller STAFF PRESENT: Assistant City Manager Hawkesworth and City Clerk Molleda 1. PUBLIC COMMENTS FROM THE AUDIENCE — None 2. CONSENT CALENDAR A. Minutes October 8, 2012 — Regular Meeting October 17, 2012 — Regular Meeting Board Member Irene Redondo - Churchward made a motion, seconded by Board Member Nicole Lash, to approve the Consent Calendar with corrections to the minutes. Vote resulted in: Yes: Allred, Redondo - Churchward, Lash, Wallach No: None Abstain: None Absent: Alvarez, Jones, Miller 3. MATTERS FROM STAFF OF THE ROSEMEAD SUCCESSOR AGENCY Assistant City Manager Matt Hawkesworth removed this item from the agenda. A. Meet and Confer Regarding the LMIHF due Diligence Review On November 8, 2012 the Successor Agency received the findings from the Department of Finance (DOF) regarding the Due Diligence Review of the Low and Moderate Income Housing Fund ( LMIHF). The DOF has made the determination in their initial finding that the enforceable obligations related to the Senior Housing complexes should be funded by Real Property Tax Trust Funds (RPTTF) and not the LMIHF. This finding is in direct conflict the Rosemead Oversight Board Meeting Minutes of November 26, 2012 Page 1 of 3 ITEM NO. Z-" DOF's approval of the ROPS II for July to December 2012 and the ROPS III for January to June 2013 in which the DOF approved the funding of this obligation from the LMIHF. While swapping one funding source for another funding source would normally be very simple, this change creates some unintended consequences which staff must clarify with the DOF in order to ensure that sufficient funding is available for the enforceable obligations. Staff immediately contacted the DOF and submitted a request for a Meet and Confer meeting to have an opportunity to discuss this matter. The DOF has assigned a meeting date of November 27, 2012 at 10:30 a.m. Staff will be travelling to Sacramento in hopes of providing clarification and to secure the necessary funding from either RPTTF or LMIHF for the enforceable obligations. Recommendation: No action necessary. This is an information item only. B. Agreed Upon Procedures Report for Non - Housing Funds Under AB 1484, the Successor Agency is required to complete an agreed upon procedures review of the former Rosemead Community Development Commission's Funds by December 15, 2012. At the time the agenda was posted for the meeting, the final report was not available from the CPA firm. The draft included with this report is believed to contain the final figures and analysis; however, the CPA firm has not completed their final quality control review of the report. It's anticipated that the final version will be available at the time of the meeting and will be provided to the Board. Prior to the Board formally accepting and approving the review, the Board is required to hold a public comment session at least five (5) working days prior to the approval. As such, the Board will meet again on its regularly scheduled date of December 10, 2012 to consider the approval of the report. The agreed upon procedures review was conducted in accordance with AB 1484 in order to ensure that all of the winding down procedures had been followed and to make a determination as to the amount of available fund balance remaining with the Successor Agency. As noted in the report, there were no adverse findings made during the review and the Successor Agency has made the appropriate transfers of assets and duties as applicable. The report shows on Exhibit B -5 that once all enforceable obligations are deducted from the total asset balance, a remaining balance of $77,105.04 should be remitted to the County for distribution to the various taxing entities. Recommendation: That the Oversight Board open a public comment review period and allow for public comment until the next regularly scheduled Oversight Board meeting on December 10, 2012 at 5 p.m. Assistant City Manager Matt Hawkesworth reviewed the staff report. Board Member Irene Redondo - Churchward made a motion, seconded by Board Member Jeff Allred, to open the Public Hearing at 5:15 p.m. Vote resulted in: Rosemead Oversight Board Regular Meeting Minutes of November 26, 2012 Page 2 of 3 Yes: Allred, Redondo - Churchward, Lash, Wallach No: None Abstain: None Absent: Alvarez, Jones, Miller Board Member Nicole Lash made a motion, seconded by Board Member Irene Redondo - Churchward, to continue the Public Hearing to December 10, 2012 at 5 p.m. Vote resulted in: Yes: Allred, Redondo - Churchward, Lash, Wallach No: None Abstain: None Absent: Alvarez, Jones, Miller 4. ADJOURNMENT The meeting adjourned at 5:16 p.m. The next Oversight Board meeting is scheduled to take place on December 10, 2012 at 5:00 p.m. Pat Wallach Chair ATTEST: Matt Hawkesworth Successor Agency Staff Assistant City Manager Rosemead Oversight Board Regular Meeting Minutes of November 26, 2012 Page 3 of 3