HomeMy WebLinkAbout13-01 (Due Diligence Review Findings of Non-Housing Funds)A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY APPROVING WHITE NELSON
DIEHL EVANS LLP'S DUE DILIGENCE REVIEW FINDINGS
OF THE NON-HOUSING FUNDS AND AUTHORIZING THE
SUCCESSOR AGENCY TO TRANSMIT THE FINDINGS
The Oversight Board of the Successor Agency to the Tustin Community Redevelopment
Agency finds, determines and declares as follows:
A. The Tustin Community Redevelopment Agency ("Agency") was established as a
community redevelopment agency that was previously organized and existing under the
California Community Redevelopment Law, Health and Safety Code Sections 33000, et
seq. ("CRL") and previously authorized to transact business and exercise the powers of
a redevelopment agency pursuant to action of the City Council ("City Council") of the
City of Tustin ("City"); and
B. AB X1 26 ("AB26") added Parts 1.8 and 1.85 to Division 24 of the California Health and
Safety Code, which laws cause the dissolution and wind down of all redevelopment
agencies ("Dissolution Act"); and
C. On December 29, 2011, in the petition California Redevelopment Association v.
Matosantos, Case No. 5194861, the California Supreme Court upheld the Dissolution
Act and thereby all redevelopment agencies in California are subject to the Dissolution
Act and were dissolved as of and on February 1, 2012; and
D. The Agency is now a dissolved community redevelopment agency pursuant to the
Dissolution Act; and
E. By a resolution considered and approved by the City Council at an open public meeting
on January 17, 2012, the City chose to become and serve as the "Successor Agency" to
the dissolved Agency under the Dissolution Act; and
F. As of and on and after February 1, 2012, the City serves as the "Successor Agency" and
will perform its functions as the Successor Agency under the Dissolution Act to
administer the enforceable obligations of the Successor Agency and otherwise unwind
the Successor Agency's affairs, all subject to the review and approval by the seven-
member Oversight Board formed thereunder; and
G. Pursuant to Section 34179, the Successor Agency's Oversight Board has been formed
and the initial meeting has occurred on March 13, 2012; and
H. Section 34179(e), as amended by Assembly Bill 1484 ("AB 1484"), requires all actions
taken by the Oversight Board to be adopted by resolution; and
Oversight Board Resolution 13-01
Page 1 of 4
Section 34179.5 requires the Successor Agency to employ a licensed accountant,
approved by the County of Orange Auditor-Controller ( "Auditor - Controller") to conduct a
due diligence review to determine the unobligated balances available for transfer to
lan
taxing entities; and
J. On July 16, 2012, the Auditor-Controller authorized the Successor Agency's request to
utilize White Nelson Diehl Evans LLP ("WNDE") to conduct the Due Diligence Review of
the Agency's Non-Housing Funds and provide the review to the Oversight Board by
December 15, 2012; and
K On December 11, 2012, pursuant to Section 34179.6, WNDE completed the Due
Diligence Review and the Successor Agency provided the results of the review to the
Oversight Board, the County Auditor-Controller ("CAC"), the State Controller, and the
Department of Finance ("DoF") and convened a public comment session, taking place at
least five (5) business days before the Oversight Board holds the approval vote; and
L. Section 34179.6(c) requires the Oversight Board review, approve, and transmit to the
DoF and the CAC the determination of the amount of cash and cash equivalents that
are available for disbursement to taxing entities as determined according to the method
provided in Section 34179.5.; and
M. The Oversight Board has duly considered all other related matters and has determined
that WNDE's determination regarding cash or cash equivalents available for
disbursement to taxing entities is in the best interest of the City and Agency and in the
health, safety, and welfare of its residents, and in accord with the public purposes and
provisions of applicable state and local laws and requirements.
NOW, THEREFORE, BE IT RESOLVED BY A RESOLUTION OF THE
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY
REDEVELOPMENT AGENCY:
Section 1. The foregoing recitals are incorporated into this Resolution by this reference,
and constitute a material part of this Resolution.
Section 2. The Oversight Board approves the Findings from WNDE's Due Diligence
Review of Non-Housing Funds.
Section 3. The Oversight Board determines there is an unobligated balance of
$5,965,538 available for disbursement to taxing entities.
Section 4. The Oversight Board authorizes the Successor Agency to transmit the
determination to the DoF and the CAC.
Section 5. The City Manager of the Successor Agency or his authorized designee is
directed to post this Resolution on the City/Successor Agency website.
Section 6. This Resolution shall be effective after transmittal of this Resolution to the
DoF and when the DoF completes its review no later than April 1, 2013. vv
Oversight Board Resolution 13-01
Page 2 of 4
Section 7. The Secretary of the Oversight Board shall certify to the adoption of this
Resolution.
Doug DaVert, Chairman
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
M1160111
Chuck Puckett, Secretary
Oversight Board of the Successor Agency to
the Tustin Community Redevelopment Agency
Oversight Board Resolution 13-01
Page 3 of 4
STATE OF CALIFORNIA )
COUNTY OF ORANGE )SS
CITY OF TUSTIN
1, CHUCK PUCKETT, Secretary of the Oversight Board of the Successor Agency to
the Tustin Community Redevelopment Agency, do hereby certify that the whole number of
the members of the Agency Board is seven; that the above and foregoing Resolution No.
13-01 was duly passed and adopted at a regular meeting of the Oversight Board, held on
the 8th day of January, 2013, by the following vote:
BOARD MEMBER AYES: Davert, Puckett, Bernstein, Nielsen,
Soria, West (6),
BOARD MEMBER NOES: None (0)
BOARD MEMBER ABSTAINED: None (0)
BOARD MEMBER ABSENT: Fitzsimons (1)
Chuck Puckett, Secretary
Oversight Board of the Successor Agency to
the Tustin Community Redevelopment Agency
Attachment No. 1 — Due Diligence Review — Independent Accountant's Report on Applying
Agreed-Upon Procedures On the Tustin Redevelopment Agency's and
the Successor Agency to the Tustin Redevelopment Agency's Non-
Housing Funds
Attachment No. 2 — Second Amended Initial Recognized Obligation Payment Schedule (Jan —
June 2012)
Attachment No. 3 — First Amended Second Recognized Obligation Payment Schedule (July —
December 2012)
Attachment No. 4 — Third Recognized Obligation Payment Schedule (Jan — June 2013)
Oversight Board Resolution 13-01
Page 4 of 4
MO.
Bill
M-711