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09/11/2012CITY OF GRAND TERRACE CITY COUNCIL AGENDA • SEPTEMBER 11, 2012 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center • 22795 Barton Road City of Grand Terrace Page 1 Updated 8/2/2012 2:53 PM The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s office at (909) 824-6621 at least 48 hours prior to the meeting. If you desire to address the City Council during the meeting, please complete a request to speak form available at the entrance and present it to the Secretary. Speakers will be called upon by the Mayor at the appropriate time. Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at city hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.cityofgrandterrace.org CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency Invocation Pledge of Allegiance Roll Call Attendee Name Present Absent Late Arrived Mayor Walt Stanckiewitz ¨¨¨ Mayor Pro Tem Lee Ann Garcia ¨¨¨ Councilwoman Darcy McNaboe ¨¨¨ Councilman Bernardo Sandoval ¨¨¨ Councilman Gene Hays ¨¨¨ 1.ITEMS TO DELETE 2.SPECIAL PRESENTATIONS A.Michigan Street Improvements and Storm Drain Project Update 3.CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent Calendar for discussion. Agenda Grand Terrace City Council September 11, 2012 City of Grand Terrace Page 2 Updated 8/2/2012 2:53 PM A.Waive Full Reading of Full Ordinances on Agenda B.Five Year Measure I Capital Improvement Plan C.Approval of Check Register No. 09-11-2012 D.Approval of Minutes –Special Meeting –08/28/2012 E.Approval of Minutes –Regular Meeting –08/28/2012 4.PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. 5.COUNCIL REPORTS 6.PUBLIC HEARINGS 7.UNFINISHED BUSINESS A.Formal Action to Disband the Current Crime Prevention Committee and Set Goals and Membership Requirements for a New Crime Prevention Committee 8.NEW BUSINESS A.Due Diligence Review -Authorization to Contract with Auditor and Appropriation of Funds 9.CLOSED SESSION ADJOURN The Next Regular City Council Meeting will be held on Tuesday, September 25, 2012, at 6:00 PM. Agenda item requests must be submitted in writing to the City Clerk’s office no later than 14 calendar days preceding the meeting. AGENDA REPORT MEETING DATE:September 11, 2012 Council Item TITLE:Five Year Measure I Capital Improvement Plan PRESENTED BY:Richard Shields, Community Development Director RECOMMENDATION:1. Approve a Five Year Measure I Capital Improvement Plan (CIP) and Expenditure Strategy for 2012-2013 through 2016- 2017. 2. Adopt Resolution No. 2012 -___setting forth a Five Year Capital Improvement Program. BACKGROUND: Each year the City of Grand Terrace is required by San Bernardino Associated Governments, (SANBAG) to adopt a Measure I Capital Improvement Plan by resolution. The reason this is done each year is due to project needs changing throughout the year. SANBAG provides a yearly opportunity to change the expenditures and project designations to meet the needs of the jurisdiction. San Bernardino County voters approved passage of Measure I, November of 2004 authorizing SANBAG, acting as the San Bernardino County Transportation Authority, to impose a one-half of one-percent retail transactions and use tax applicable in the incorporated territory of the County of San Bernardino. In the fourth quarter of each year, the City is required to adopt a revised or updated Measure I CIP in order to continue to receive Measure I funds. The attached Five Year Measure I CIP for fiscal year 2012-2013 through 2016-2017 identifies five projects at an estimated cost of $867,195. SANBAG has also requested that each agency adopt an Expenditure Strategy as part of the annual Measure I Capital Improvement plan update. Previously, the City Council has adopted an approach which focuses on the maintenance of existing infrastructure. The attached Expenditure Strategy Statement,Exhibit "A",reaffirms this policy. DISCUSSION: City Council is being requested to approve a resolution for funding of the City's Measure I Local Streets Program. These funds will primarily be used for street maintenance and rehabilitation projects. SANBAG's estimate of Measure I revenue for 2012-2013 through 2016-2017 is attached as Exhibit "B”, and totals $867,195. At the August 28, 2012 City Council meeting, the City Council agreed with Staff's recommendation to move DeBerry Street paving from Mt. Vernon to Michigan forward on the CIP list. The City Council also agreed to move the paving of the upper portion of DeBerry Street from Mt. Vernon to Observation to the following year. 3.B Packet Pg. 3 Barton Road from Mt. Vernon to Vivienda was placed on the CIP list for future paving because it is showing signs of dilapidation due to the heavy use of the roadway. Barton Road is defined as a major highway. Robin Way and Warbler are still on the CIP list; however they will be moved out a few more years for paving. Five (5) street paving projects have been chosen which are listed in the proposed Measure I Five Year Plan; see Exhibit "C”. Staff is recommending that the City Council approve the Five Year Measure I Capital Improvement Plan and adopt the attached Resolution. FISCAL IMPACT: The Measure I CIP generally has no fiscal impact to the current year budget other than what is appropriated in the current budget. The City has appropriated $159,000 of Measure I funds in fiscal year 2012-2013 budget in account 46-900-315-000 for Robin Way and Warbler Avenue paving project. Robin Way and Warbler Avenue would be defunded for this fiscal year and replaced with DeBerry Street paving project account 46-900-315-000 for $159,000. ATTACHMENTS: ·Expenditure Strategy ·MI CIP Valley Estimates 2012-2017 ·CIP list 2, 2012 ·2012 CIP Reso APPROVALS: Richard Shields Completed 08/29/2012 3:21 PM Finance Completed 09/04/2012 12:04 PM City Attorney Completed 09/05/2012 5:43 PM City Manager Completed 09/06/2012 8:56 AM City Council Pending 3.B Packet Pg. 4 EXHIBIT “A” MEASURE I CAPITAL IMPROVEMENT PLAN EXPENDITURE STRATEGY 2012-2017 The City of Grand Terrace has a well developed roadway network. As such, the City Council believes that the best interests of the residents of the City would be served by focusing the expenditures of Measure I revenues on the reconstruction, maintenance and improvement of existing City streets. It is the City’s intent that each project identified in the fiscal years 2012-2017,Measure I Capital Improvement Plan be designed and constructed in the fiscal year as indicated in the plan. 3.B.a Packet Pg. 5 At t a c h m e n t : E x p e n d i t u r e S t r a t e g y ( 1 1 2 8 : F i v e Y e a r M e a s u r e I C a p i t a l I m p r o v m e n t P l a n ) ATTACHMENT E EXHIBIT "B" FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 12-17 JURISDICTION Actual Estimate Estimate Estimate Estimate Estimate Total Estimate VALLEY REGION Chino 1,036,447 1,060,285 1,084,672 1,109,619 1,135,141 1,161,249 5,550,966 FY 12/13 2.30% Chino Hills 1,008,443 1,031,637 1,055,365 1,079,638 1,104,470 1,129,873 5,400,983 Colton 722,123 738,732 755,723 773,104 790,886 809,076 3,867,521 FY 13/14 2.30% Fontana 2,763,322 2,826,878 2,891,897 2,958,410 3,026,454 3,096,062 14,799,701 Grand Terrace 161,918 165,642 169,452 173,349 177,336 181,415 867,195 FY 14/15 2.30% Highland 736,681 753,625 770,958 788,690 806,830 825,387 3,945,490 Loma Linda 323,813 331,261 338,880 346,674 354,647 362,804 1,734,266 FY 15/16 2.30% Montclair 503,392 514,970 526,814 538,931 551,326 564,007 2,696,049 Ontario 2,206,475 2,257,224 2,309,140 2,362,250 2,416,582 2,472,163 11,817,360 FY 16/17 2.30% Rancho Cucamonga 2,235,036 2,286,442 2,339,030 2,392,828 2,447,863 2,504,164 11,970,326 Redlands 930,476 951,877 973,770 996,167 1,019,079 1,042,517 4,983,410 Rialto 1,366,477 1,397,906 1,430,058 1,462,949 1,496,597 1,531,019 7,318,529 San Bernardino 2,924,848 2,992,120 3,060,938 3,131,340 3,203,361 3,277,038 15,664,796 Upland 1,003,360 1,026,437 1,050,045 1,074,196 1,098,903 1,124,178 5,373,760 Yucaipa 708,765 725,067 741,743 758,803 776,256 794,110 3,795,978 County/Valley 1,658,561 1,696,708 1,735,732 1,775,654 1,816,494 1,858,273 8,882,862 Total Valley Region $20,290,137 $20,756,810 $21,234,217 $21,722,604 $22,222,224 $22,733,335 108,669,189 NOTE: Local Pass-Through Funds equal 20% of total Measure I funds collected. VALLEY SUBAREA Over Previous Year MEASURE I REVENUE ESTIMATES FOR LOCAL PASS-THROUGH FUNDS 2012-2017 Estimated Growth Rates MICIP Valley Est 2012-2017.XLS 3.B.b Packet Pg. 6 At t a c h m e n t : M I C I P V a l l e y E s t i m a t e s 2 0 1 2 - 2 0 1 7 ( 1 1 2 8 : F i v e Y e a r M e a s u r e I C a p i t a l I m p r o v m e n t P l a n ) ATTACHMENT A YEAR STREET & LIMITS IMPROVEMENT NEXUS STUDY PROJECT? COST ESTIMATE 2012-2013 DeBerry Street, Mt. Vernon to Michigan Pavement Overlay No $165,642 Subtotal $165,642 2013-2014 DeBerry Street, Mt. Vernon to Observation Pavement Overlay No $169,452 Subtotal $169,452 2014-2015 Barton Road, Mt. Vernon to Vivenda Pavement Overlay No $173,349 Subtotal $173,349 2015-2016 Robin Way and Warbler Avenue Pavement Overlay No $177,336 Subtotal $177,336 2016-2017 Glendora Street and Monona Street Pavement Overlay NO $181,415 Subtotal $181,415 TOTAL $867,194 Contact Name:Name: Richard Shields Measure I Local Funds Estimate (5 yr.)$867,194 Title: Public Works Director Telephone Number: 909-825-3825 Resolution No.2012- EXHIBIT "C" VALLEY SUBAREA CITY/TOWN/COUNTY MEASURE I CAPITAL IMPROVEMENT PLAN 2012-2017 MICIPSamplePlan2012-2017-emp.doc 3.B.c Packet Pg. 7 At t a c h m e n t : C I P l i s t 2 , 2 0 1 2 ( 1 1 2 8 : F i v e Y e a r M e a s u r e I C a p i t a l I m p r o v m e n t P l a n ) 3.B.d Packet Pg. 8 At t a c h m e n t : 2 0 1 2 C I P R e s o ( 1 1 2 8 : F i v e Y e a r M e a s u r e I C a p i t a l I m p r o v m e n t P l a n ) 3.B.d Packet Pg. 9 At t a c h m e n t : 2 0 1 2 C I P R e s o ( 1 1 2 8 : F i v e Y e a r M e a s u r e I C a p i t a l I m p r o v m e n t P l a n ) 3.B.d Packet Pg. 10 At t a c h m e n t : 2 0 1 2 C I P R e s o ( 1 1 2 8 : F i v e Y e a r M e a s u r e I C a p i t a l I m p r o v m e n t P l a n ) AGENDA REPORT MEETING DATE:September 11, 2012 Council & Successor Agency Item TITLE:Approval of Check Register No. 09-11-2012 PRESENTED BY:Bernie Simon, Finance Director RECOMMENDATION:Approve Attached Check Register, which includes the Warrant Register Account Index and Voucher Listings for FY 2011-2012 and FY 2012-2013, as Submitted BACKGROUND: The Check Register for September 11, 2012 is presented in accordance with Government Code §37202. The attached index to the warrant register is a guideline account list only and is not intended to replace the voluminous list of accounts used by the City and Successor Agency CRA. Expenditure account number formats are XX-XXX-XXX [Fund-Depart- General Account]. Expenditures may be made from trust/agency accounts (fund 23- xxx-) or temporary clearing accounts which do not have budgetary considerations. A total of $45,062.53 in accounts payable checks was issued during the period for services, reimbursements, supplies and contracts and are detailed in the attached Check Register sections. 6/28/2012 FY 11-12 Check Register 005 $1,149.31 9/11/2012 FY 12-13 Check Register $43,913.22 Payroll costs for the period amounted to $120,171.33 and are summarized below. Some of the non-routine items include: 68453 Black & Veatch Corp Sewer Study Services for August $875.55 68454 Brown Industries FY 12-13 C. Care Employee of the Month Pins $85.50 68455 Burrtec Waste Industries Sep-Oct Residential Sewer for 21992 De Berry Street $54.00 68459 Hargreaves, Janel C. Care Reimbursement-Credit on Account $314.90 68466 The Trophy Store Annual Display at C. Care for Employee of the Month Plaque $140.96 68468 Tyco Integrated Security New Batteries Installed in C. Care Alarm System $319.20 Some the larger items include: 68453 Black & Veatch Corp Sewer Study Services for August $875.55 3.C Packet Pg. 11 68467 Time for Change Foundation CDBG July Invoice Case # 106-38127- 3876 $1,000.00 68469 Willdan July Engineering, Plan Check, and Inspection Services $3,672.25 Payroll costs processed for period ending August 31, 2012: Date Period Payroll and payroll costs 08/31/12 Biweekly $64,428.47 FISCAL IMPACT: All disbursements are made in accordance with the adopted budget for FY 2011-12 and FY 2012-13. ATTACHMENTS: ·FY 11-12 Check Register 005 ·FY 12-13 Check Register ·Warrant Register Account Index APPROVALS: Bernie Simon Completed 09/05/2012 11:43 AM Finance Completed 09/05/2012 11:43 AM City Attorney Completed 09/05/2012 5:53 PM City Manager Completed 09/06/2012 9:35 AM City Council Pending 3.C Packet Pg. 12 09/05/2012 Voucher List CITY OF GRAND TERRACE 1 8:51:10AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68470 9/11/2012 001810 CITY NEWSPAPER GROUP 15973 Publish Ordinance 263 10-125-230-000-000 893.55 15974 Publish Ordinance 264 10-125-230-000-000 155.40 Total : 1,048.95 68471 9/11/2012 001810 CITY NEWSPAPER GROUP 15970 Notice of Planning Comm Public Hearing 10-370-230-000-000 100.36 Total : 100.36 Bank total : 1,149.31 2 Vouchers for bank code :bofa 1,149.31Total vouchers :Vouchers in this report 2 1Page: 3.C.a Packet Pg. 13 At t a c h m e n t : F Y 1 1 - 1 2 C h e c k R e g i s t e r 0 0 5 ( 1 1 3 0 : C h e c k R e g i s t e r N o . 0 9 - 1 1 - 2 0 1 2 ) 09/05/2012 Voucher List CITY OF GRAND TERRACE 1 8:38:52AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68443 8/28/2012 005702 PUBLIC EMPLOYEES' RETIREMENT 8-23-12 Amend FlannAMENDMENT FOR PREND 8-3-12 CONTRIBUTIONS 10-022-62-00 23.20 Total : 23.20 68444 8/28/2012 005702 PUBLIC EMPLOYEES' RETIREMENT PRend 8-17-12 CONTRIBUTIONS FOR PREND 8-17-12 10-022-62-00 17,221.71 Total : 17,221.71 68446 9/4/2012 011196 FIDELITY SECURITY LIFE 1606330 Sept SEPT. EMPLOYEE PAID VISION INSURANCE 10-022-61-00 146.16 Total : 146.16 68447 9/4/2012 001038 VERIZON WIRELESS-LA 1113419446 Aug/Sept Wireless Services-Public Works 10-175-240-000-000 104.85 Total : 104.85 68448 9/4/2012 001213 AT & T Sept 2012 Aug/Sep Phones & Internet Services 09-440-235-000-000 86.47 10-190-235-000-000 449.93 Total : 536.40 68449 9/4/2012 001907 COSTCO #478 0478 09 0046 124 C. CARE SUPPLIES 09-440-220-000-000 180.56 Total : 180.56 68450 9/4/2012 001206 ARROWHEAD CREDIT UNION July-August 2012 July-August Visa Bill Charges 09-440-210-000-000 39.75 09-440-219-000-000 50.71 10-172-210-000-000 26.67 10-380-210-000-000 50.12 10-175-218-000-000 358.24 10-195-245-000-000 747.26 Total : 1,272.75 68451 9/4/2012 006285 RIVERSIDE HIGHLAND WATER CO June-Aug 2012 June/Aug Water Usage & Fees 1Page: 3.C.b Packet Pg. 14 At t a c h m e n t : F Y 1 2 - 1 3 C h e c k R e g i s t e r ( 1 1 3 0 : C h e c k R e g i s t e r N o . 0 9 - 1 1 - 2 0 1 2 ) 09/05/2012 Voucher List CITY OF GRAND TERRACE 2 8:38:52AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68451 9/4/2012 (Continued)006285 RIVERSIDE HIGHLAND WATER CO 32-600-326-000-000 21.60 10-450-238-000-000 7,377.56 34-700-710-000-000 10.80 34-700-767-000-000 10.80 32-600-216-000-000 10.80 32-600-307-000-000 21.60 32-600-301-000-000 10.80 09-440-238-000-000 182.14 10-805-238-000-000 2,089.07 10-190-238-000-000 753.90 26-600-239-000-000 353.76 26-601-239-000-000 64.65 48-600-330-010-000 21.60 Total : 10,929.08 68452 9/11/2012 010693 ARROWHEAD UNITED WAY PR End 8/17/12 PR End 8/17/12 Donations 10-022-65-00 32.50 Total : 32.50 68453 9/11/2012 011213 BLACK & VEATCH CORP 1144444 Sewer Study Services for August 21-175-255-000-000 875.55 Total : 875.55 68454 9/11/2012 001484 BROWN INDUSTRIES 113-01254 FY12-13 Employee of the Month Pins 23-200-14-00 85.50 Total : 85.50 68455 9/11/2012 011170 BURRTEC WASTE INDUSTRIES, INC.51-GR 415566 Sep-Oct Res Sewer-21992 DeBerry 32-600-214-000-000 54.00 Total : 54.00 68456 9/11/2012 001942 DATA TICKET INC.42648 July Parking Cite Processing Services 10-140-255-000-000 100.00 Total : 100.00 68457 9/11/2012 011061 EZ SUNNYDAY LANDSCAPE 1762 August Park Maintenance 10-450-255-000-000 3,165.00 2Page: 3.C.b Packet Pg. 15 At t a c h m e n t : F Y 1 2 - 1 3 C h e c k R e g i s t e r ( 1 1 3 0 : C h e c k R e g i s t e r N o . 0 9 - 1 1 - 2 0 1 2 ) 09/05/2012 Voucher List CITY OF GRAND TERRACE 3 8:38:52AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 3,165.00 68457 9/11/2012 011061 EZ SUNNYDAY LANDSCAPE 68458 9/11/2012 002740 FRUIT GROWERS SUPPLY 91085846 Park Maintenance Supplies 10-450-245-000-000 32.16 91087650 Park Maintenance Supplies 10-450-246-000-000 29.44 91087665 Park Maintenance Supplies-Tubing 10-450-245-000-000 7.73 91088150 Return-Wrong Trimmer Head 10-450-246-000-000 -23.75 91088152 Park Maintenance Supplies-Trimmer Head 10-450-246-000-000 32.07 Total : 77.65 68459 9/11/2012 011249 HARGREAVES, JANEL 08232012 C.Care Account Credit Reim-Hargreaves 09-440-28 314.90 Total : 314.90 68460 9/11/2012 011211 JAN-PRO CLEANING SYSTEMS 32617 August Janitorial Services 10-450-245-000-000 334.00 10-195-245-000-000 741.00 Total : 1,075.00 68461 9/11/2012 010097 NEXTEL COMMUNICATIONS 410575025-120 July/Aug Wireless Svc-Maint/C.Care 09-440-235-000-000 17.09 10-175-240-000-000 173.46 Total : 190.55 68462 9/11/2012 005400 OFFICE DEPOT 621257746001 C.Care Office Supplies/Ink 09-440-210-000-000 161.69 Total : 161.69 68463 9/11/2012 005586 PETTY CASH 08292012 Replenish C.Care Petty Cash 09-440-221-000-000 21.18 09-440-223-000-000 53.70 09-440-228-000-000 20.66 Total : 95.54 3Page: 3.C.b Packet Pg. 16 At t a c h m e n t : F Y 1 2 - 1 3 C h e c k R e g i s t e r ( 1 1 3 0 : C h e c k R e g i s t e r N o . 0 9 - 1 1 - 2 0 1 2 ) 09/05/2012 Voucher List CITY OF GRAND TERRACE 4 8:38:52AM Page:vchlist Bank code :bofa Voucher Date Vendor Invoice Description/Account Amount 68464 9/11/2012 011245 RAQUEL'S CLEANING SERVICE 000000004 JULY C. CARE CLEANING SERVICES 09-440-244-000-000 1,100.00 Total : 1,100.00 68465 9/11/2012 006898 SYSCO FOOD SERVICES OF L.A.208211837 9 C. CARE FOOD/SUPPLIES 09-440-220-000-000 488.41 208281488 6 C. CARE FOOD/SUPPLIES 09-440-220-000-000 549.81 Total : 1,038.22 68466 9/11/2012 010443 THE TROPHY STORE 07262012 Emp of Month Annual Plaque Display 09-440-228-000-000 140.96 Total : 140.96 68467 9/11/2012 011250 TIME FOR CHANGE FOUNDATION 08232012 CDBG July Inv. Case #106-38127/3876 22-425-309-000-000 1,000.00 Total : 1,000.00 68468 9/11/2012 011251 TYCO INTEGRATED SECURITY LLC 78135619 New Batteries Installed-C.Care Alarm 09-440-228-000-000 319.20 Total : 319.20 68469 9/11/2012 007920 WILLDAN 002-12542 July Inspection & Plan Check Services 10-172-250-000-000 2,503.75 002-12543 July Engineering Services 10-175-255-000-000 1,168.50 Total : 3,672.25 Bank total : 43,913.22 26 Vouchers for bank code :bofa 43,913.22Total vouchers :Vouchers in this report 26 4Page: 3.C.b Packet Pg. 17 At t a c h m e n t : F Y 1 2 - 1 3 C h e c k R e g i s t e r ( 1 1 3 0 : C h e c k R e g i s t e r N o . 0 9 - 1 1 - 2 0 1 2 ) City of Grand Terrace Warrant Register Index FD No.Fund Name Dept No.Department Name General Account Numbers 10 GENERAL FUND 110 CITY COUNCIL 110 SALARIES/WAGES 11 STREET FUND 120 CITY MANAGER 139 EMPLOYEES' BENEFIT PLAN 12 STORM DRAIN FUND 125 CITY CLERK 140 RETIREMENT 13 PARK FUND 140 FINANCE 142 HEALTH/LIFE INSURANCE 14 AB 3229 COPS FUND 160 CITY ATTORNEY 143 WORKERS' COMPENSATION 15 AIR QUALITY IMPROVEMENT FUND 172 BUILDING & SAFETY 138/141 MEDICARE / SUI 16 GAS TAX FUND 175 PUBLIC WORKS 210 OFFICE EXPENSE 17 TRAFFIC SAFETY FUND/ TDA FUND 180 COMMUNITY EVENTS 218-219 NON-CAPITAL FURN/SMALL TOOLS 19 FACILITIES DEVELOPMENT FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL EXP 20 MEASURE I FUND 190 GENERAL GOVERNMENT (NON-DEPT) 230 ADVERTISING 21 WASTE WATER DISPOSAL FUND 195 FACILITIES MAINTENANCE 235 COMMUNICATIONS 22 COMMUNITY DEVELOPMENT BLOCK GRANT 370 COMMUNITY & ECONOMIC DEV 238-239 UTILITIES 26 LSCPG/ LGHTG ASSESSMENT DIST. 380 MGT INFORMATION SYSTEMS 240-242 RENTS & LEASES 44 BIKE LANE CAPITAL FUND 410 LAW ENFORCEMENT 245-246 MAINT BLDG GRNDS EQUIPMNT 46 STREET IMPROVEMENT PROJECTS 430 RECREATION SERVICES 250-251 PROFESSIONAL SERVICES 47 BARTON RD. BRIDGE PROJECT 440 CHILD CARE 255-256 CONTRACTUAL SERVICES 32 CRA-CAPITAL PROJECTS FUND 450 PARKS MAINTENANCE 260 INSURANCE & SURETY BONDS 33 CRA-DEBT SERVICE FUND 631 STORM DRAIN MAINTENANCE 265 MEMBERSHIPS & DUES 34 CRA-LOW & MOD HOUSING 801 PLANNING COMMISSION 268 TRAINING 802 CRIME PREVENTION UNIT 270 TRAVEL/CONFERENCES/MTGS 804 HISTORICAL & CULTURAL COMM. 272 FUEL & VEHICLE MAINTENANCE 805 SENIOR CITIZENS PROGRAM 570 WASTEWATER TREATMENT 807 PARKS & REC COMMITTEE 33-300 DEBT SERVICE 808 EMERGENCY OPERATIONS PROG. 7XX FACILITIES IMPRV (NO CIP) 700 COMPUTER-RELATED 701 VEHICLES & EQUIPMENT 3. C . c Pa c k e t P g . 1 8 Attachment: Warrant Register Account Index (1130 : Check Register No. 09-11-2012) CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● AUGUST 28, 2012 Council Chambers Special Meeting 4:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 Updated 8/2/2012 5:53 PM CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency Invocation - None Pledge of Allegiance - Councilman Bernardo Sandoval Attendee Name Title Status Arrived Walt Stanckiewitz Mayor Present Lee Ann Garcia Mayor Pro Tem Present Darcy McNaboe Councilwoman Present Bernardo Sandoval Councilman Present Gene Hays Councilman Absent Betsy Adams City Manager Present Tracey Martinez City Clerk Present Richard Adams City Attorney Present 1.PUBLIC COMMENT - NONE 2.CLOSED SESSION A.Conference with Legal Counsel - Significant Exposure to Litigation Pursuant to Government Code 54956.9(b) - One Potential Case The City Council met in Closed Session with Legal Counsel to discuss significant exposure to litigation pursuant to Government Code 54956.9(b) - One potential case, there was no reportable action taken. ADJOURN B.The Next Regular City Council Meeting will be held on Tuesday, August 28, 2012, at 6:00 PM. MAYOR of the City of Grand Terrace CITY CLERK of the City of Grand Terrace 3.D Packet Pg. 19 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 8 , 2 0 1 2 7 : 0 0 P M ( C o n s e n t C a l e n d a r ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● AUGUST 28, 2012 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 Updated 9/6/2012 5:48 PM CALL TO ORDER Convene City Council and City Council as the Successor Agency to the Community Redevelopment Agency Invocation - Pastor Trevan Osborn, Azure Hills Seventh-Day Adventist Church Pledge of Allegiance - Councilwoman Darcy McNaboe Attendee Name Title Status Arrived Walt Stanckiewitz Mayor Present Lee Ann Garcia Mayor Pro Tem Present Darcy McNaboe Councilwoman Present Bernardo Sandoval Councilman Present Gene Hays Councilman Present Betsy Adams City Manager Present Joyce Powers Community and Economic Development Director Present Bernie Simon Finance Director Present Richard Shields Director of Building & Safety/Public Works Present Tracey Martinez City Clerk Present Richard Adams City Attorney Present Rick McClintock San Bernardino County Fire Department Present Steve Dorsey San Bernardino County Sheriff's Department Present Ed Finneran San Bernardino County Sheriff's Department Present 1.ITEMS TO DELETE 2.SPECIAL PRESENTATIONS A.Department of Justice Statistics Captain Steve Dorsey, San Bernardino County Sheriff's Department Gave an overview of the 2010-2011 comparison on crimes reported, calls for service, arrests in Grand Terrace, Deputy reports and response times. He also provided the 2011 San Bernardino County Sheriff's Department Annual Report and indicated that it is available on their website. B.Grand Terrace Area Chamber of Commerce Business of the Month Sally McGuire, President, Grand Terrace Area Chamber of Commerce Announced that the July 2012, Business of the Month is Wilson's Frame-up. C.Retirement Recognition - Joyce Powers 3.E Packet Pg. 20 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 8 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council August 28, 2012 City of Grand Terrace Page 2 Updated 9/6/2012 5:48 PM The City Council presented Joyce with a Certificate of Commendation, commending her on a job well done and thanking her for her years of service to the City of Grand Terrace. They also presented her with a plaque that will be hung on the Veteran's Memorial Wall at Pico Park. Joyce Powers, Community and Economic Development Director Thanked the Council, indicating that it has been her pleasure serving the community of Grand Terrace and she appreciates all of the support that she has received from the Council and the community. She expressed her appreciation for the plaque that will be hung at the Veteran's Memorial. Councilmember Gene Hays Thanked Joyce for being business friendly and for always being available and easy to work with. He thanked her for all of her efforts and indicated that she will be missed. Councilmember Darcy McNaboe Stated that Joyce is leaving huge shoes to fill. She appreciates all of the times that they have been able to work together and talk. She wished her the best in her retirement. Councilmember Bernardo Sandoval Stated that her competency and ethics to always do what was right for Grand Terrace is greatly appreciated. The residents will never fully appreciate her contributions to the City and how she worked tirelessly to get the job done. He stated that it has been a privilege to work with her and she will be greatly missed. Mayor Pro Tem Lee Ann Garcia Stated that Joyce has packed so much into the years that she has been with the City. She indicated that she has far exceeded her expectations as the Community and Economic Development Director for the City. The projects that she has worked on will live on for generations. She stated that Joyce is the hardest working woman she has ever met. She greatly appreciates everything Joyce has done for Grand Terrace and that she will be missed. Mayor Walt Stanckiewitz Indicated that Joyce has been instrumental in educating him and bringing him up to speed on what he needs to know. He appreciates all of the things that Joyce has done for Grand Terrace. The community will benefit from all of her efforts throughout the years to come. He wished her luck. 3.CONSENT CALENDAR Approve the Consent Calendar Items with the removal of Item 3B. - Agreement for Government Meeting Management Software - IQM2 (Intelligent Meeting Management) RESULT:APPROVED [UNANIMOUS] MOVER:Lee Ann Garcia, Mayor Pro Tem SECONDER:Bernardo Sandoval, Councilman AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays A.Waive Full Reading of Full Ordinances on Agenda C.Approval of Minutes – Special Meeting – 08/14/2012 D.Approval of Minutes – Special Meeting – 08/14/2012 3.E Packet Pg. 21 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 8 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council August 28, 2012 City of Grand Terrace Page 3 Updated 9/6/2012 5:48 PM E.Approval of Minutes – Regular Meeting – 08/14/2012 F.Oversight Board Resignation/Appointment G.Approval of Check Register No. 08-28-2012 ITEM REMOVED FROM THE CONSENT CALENDAR B.Agreement for Government Meeting Management Software - IQM2 (Intelligent Meeting Management) Approve an Agreement for Government Meeting Management Software - IQM2 (Intelligent Meeting Management) RESULT:APPROVED [UNANIMOUS] MOVER:Bernardo Sandoval, Councilman SECONDER:Darcy McNaboe, Councilwoman AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays 4.PUBLIC COMMENT A.Bobbie Forbes Thanked Joyce for all of her efforts and for everything she has done for the City. She announced that a concert was held a week or two ago at the National Orange Show and she did not hear anything, which was great. 5.COUNCIL REPORTS Councilmember Hays Reported that the first home football game for Grand Terrace High School will be held on Friday, August 31, 2012, and encouraged everyone to get excited and to attend. He feels that the City is becoming beautiful with the new construction that is taking place and the face-lift of the older building on the corner of Barton and Mt. Vernon. Councilmember McNaboe Congratulated the Grand Terrace High School girls volleyball team for winning their fist non-league match. Blake Baggett, a Grand Terrace resident who competes in super cross, was recognized in a national publication. She requested an update on the Michigan Improvement and Storm Drain Project at a future Council Meeting. She wished everyone a Happy Labor Day. Councilmember Sandoval Is excited about the first game at the High School and all of the opportunities that the school will be bringing to the community. Mayor Pro Tem Garcia Requested an update on Walgreens. Building and Safety/Public Works Director Richard Shields Responded that the project is moving forward and the General Manager has indicated that there will be a grand opening soon. A date and time is to be determined. Mayor Pro Tem Garcia 3.E Packet Pg. 22 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 8 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council August 28, 2012 City of Grand Terrace Page 4 Updated 9/6/2012 5:48 PM Also questioned the status of the parking lot at the health care center. Mayor Stanckiewitz Indicated that he heard that the owner has requested bids and that he is working with staff. Mayor Pro Tem Garcia Also questioned if there is a traffic circulation plan with regard to the games at the high school. Building and Safet/Public Works Director Shields Responded that the circulation plan that they have is primarily for dropping off and picking up kids during the week. There have been some changes since the school opened so that people can make a safe turn into the residential area. The signal light has also been modified. Mayor Stanckiewitz Reported that there are scam artists posing as representatives for the affordable care act and all residents should be aware. He reported that at the Hometown Buffet in Loma Linda, the ground breaking for the I10 Tippecanoe Interchange will be held at 10 a.m. Congressman Jerry Lewis will be attending and speaking. He indicated that representatives from the City of Grand Terrace and Colton met to discuss major issues relating to sewer rates in Grand Terrace. While there was no resolution to the issues, information was exchanged with a commitment from both organizations that they will work toward a positive solution. He requested that the meeting be adjourned in memory of "Gigi" (Donna) Borrielli. 6.PUBLIC HEARINGS 7.UNFINISHED BUSINESS 8.NEW BUSINESS A.Community Recommendations to Name the New Fitness Park on Grand Terrace Road Approve a Resolution proclaiming 21937 Grand Terrace Road an official City Park and naming the Park "Grand Terrace Fitness Park" RESULT:APPROVED [UNANIMOUS] MOVER:Lee Ann Garcia, Mayor Pro Tem SECONDER:Darcy McNaboe, Councilwoman AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays Jeffrey McConnell Indicated that he was the one that prepared the petition for the naming of the park. He thanked everyone who signed the petition. He supports naming the park "Grand Terrace Fitness Park". JoAnn Johnson Supports the name of "Grand Terrace Fitness Park" and requested that they do not name the park with Blue Mountain in it. Bobbie Forbes Thanked Joyce for all of her efforts with the new park. She also thanked her for all of her efforts in their neighborhood, it is greatly appreciated. She supports the naming of the park "Grand Terrace Fitness 3.E Packet Pg. 23 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 8 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council August 28, 2012 City of Grand Terrace Page 5 Updated 9/6/2012 5:48 PM Park" and is very excited about the new park. She stated that there is an empty lot in that area that needs to be mowed. B.Review Measure I, Capital Improvement Plan List and Approve Budget Change to Move Appropriation to DeBerry St. Paving Project Approve Staff's recommendation to defund the "Robin Way and Warbler Avenue Paving Project " in the FY 2012-2013 Budget, line item 46-900-315-000 under Measure I CIP and replace it with the "DeBerry Street Paving Project" in the amount of $159,000.00. RESULT:APPROVED [UNANIMOUS] MOVER:Darcy McNaboe, Councilwoman SECONDER:Lee Ann Garcia, Mayor Pro Tem AYES:Stanckiewitz, Garcia, McNaboe, Sandoval, Hays 9.CLOSED SESSION A.Employee Negotiations - Labor Negotiations Pursuant to Government Code 54957.6 City Labor Negotiator - Betsy Adams, City Manager - Negotiated With - All Unrepresented Employees B.Initiation of Litigation Pursuant to Government Code Section 54956.9 (c) - One Potential Case Council met in Closed Session to discuss Labor Negotiations pursuant to Government Code 54957.6. The Council received a report from the City Manager, there was no formal action taken. Council also met to discuss the Initiation of Litigation pursuant to Government Code 54956.9 (c). Council received a briefing from the City Attorney and Council provided the City Attorney with direction to move forward, there was no formal action taken. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, September 11, 2012, at 6:00 PM. MAYOR of the City of Grand Terrace CITY CLERK of the City of Grand Terrace 3.E Packet Pg. 24 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 2 8 , 2 0 1 2 9 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE:September 11, 2012 Council Item TITLE:Formal Action to Disband the Current Crime Prevention Committee and Set Goals and Membership Requirements for a New Crime Prevention Committee PRESENTED BY:Tracey Martinez, City Clerk RECOMMENDATION:Disband the current Crime Prevention Committee, Direct staff to draft a new application for the Crime Prevention Committee to include additional information required on fundraising knowledge and experience as well as project planning and participation, Invite the current members of the Crime Prevention Committee to apply as well as other members of the community and schedule Council interviews with applicants when applications are received, and Change the meetings of the Crime Prevention Committee to the second Tuesday of each month at 4:00 p.m. BACKGROUND: As Council is aware, a letter was received from the Chairman of the Crime Prevention Committee on March 21, 2012, requesting that the Council review the responsibilities of the Crime Prevention Committee and redefine as necessary. On June 26, 2012, the City Council considered the objectives of the Committee, which were approved by the Council on August 11, 1994. Council deleted the third objective which was to advise the City Council and City Manager on the structure and detail of the Sheriff’s contract and/or police services. Council was also provided a history of the focus of the committee since its formation and the question was posed whether or not there was a continued need for a Crime Prevention Committee. It was the consensus of the Council to schedule a workshop with the members of the Committee to further consider the role of the Crime Prevention Committee. Each member of the Committee was invited to participate in the workshop, which was scheduled for August 7, 2012 at 6:00 p.m. DISCUSSION: The workshop was held on August 7, 2012. Only two members of Crime Prevention Committee attended the meeting, JoAnn Johnson and Manuel Baltierra. It was the consensus of the Council that they identify specific projects for the Committee to focus on and the following are the goals that they set for the Crime Prevention Committee: 1. National Night Out Activities -in the month of August 2. Crime Prevention Month -the month of October 3.Support for the Neighborhood Watch Programs and participate in setting up 7.A Packet Pg. 25 quarterly town hall meetings pertaining to Crime Prevention and Neighborhood Watch. Staff was directed to notify current members of the Crime Prevention Committee of the outcome of the workshop and see if there is an interest from them to carry out the goals described by Council and to bring back a formal staff report to Council on September 11, 2012, for action. Staff attended the regular meeting of the Crime Prevention Committee on August 13, 2012, and notified the members of the goals that the Council would like the committee to focus on. There was discussion amongst the members whether or not they would be willing and capable of carrying out the goals set forth by Council. There was no formal decision made by any of the members of the Committee whether or not they would be willing or capable to take on the projects desired by the Council. They were notified that formal action would be taken by the Council on September 11, 2012. It is Staff’s recommendation that the City Council disband the current Crime Prevention Committee as it exists today. Direct staff to draft a new application for the Crime Prevention Committee, which will include additional information required on fundraising knowledge and experience as well as project planning and participation,and to invite the current members of the Crime Prevention Committee to apply as well as other members of the community. It would also be staff’s recommendation that the Council interview each applicant for the Committee to ensure that the Council is appointing the most capable individuals to carry out the goals that they have set for the Committee. In addition to the above mentioned recommendations, staff would also request that the meetings of the Committee be changed to the second Tuesday of each month at 4:00 p.m.,to better accommodate the schedule of the Lt.,who currently attends the meetings as the liaison. FISCAL IMPACT: There is no fiscal impact with this report. APPROVALS: Tracey Martinez Completed 09/05/2012 10:30 AM Finance Completed 09/05/2012 10:31 AM City Attorney Completed 09/05/2012 5:50 PM City Manager Completed 09/06/2012 9:33 AM City Council Pending 7.A Packet Pg. 26 AGENDA REPORT MEETING DATE:September 11, 2012 Successor Agency Item TITLE:Due Diligence Review -Authorization to Contract with Auditor and Appropriation of Funds PRESENTED BY:Bernie Simon, Finance Director RECOMMENDATION:Authorize City Manager to Contract with Auditor to Perform RDA Due Diligence Review, as Required under AB 1484, in an amount not to exceed $15,000 and Appropriate unassigned fund balance from the Successor Agency CRA Debt Service Fund to pay for the contract. BACKGROUND: ABx1-26 effectively dissolved redevelopment agencies in California effective February 1, 2012 with assets, properties, and documents transferred to the successor agencies. On January 10, 2012 the City Council adopted Resolution 2012-01 electing to be the Successor Agency to the Grand Terrace Community Redevelopment Agency (Agency) and electing to retain the housing assets and housing functions previously performed by the Agency. On June 27, 2012, the Governor signed “clean up legislation” AB 1484 into law. AB1484 modifies provisions relating to the transfer of housing responsibilities associated with dissolved redevelopment agencies and would define the term "housing asset" for these purposes. The bill would impose new requirements on successor agencies with regard to the submittal of the Recognized Obligation Payment Schedule, the conducting of a due diligence review to determine the unobligated balances available for transfer to affected taxing entities, and the recovery and subsequent remittance of funds determined to have been transferred absent an enforceable obligation. The bill would authorize the Department of Finance to issue a finding of completion to a successor agency that completes the due diligence review and meets other requirements. Upon receiving a finding of completion, the bill would authorize the successor agency to participate in a loan repayment program and limited property management activities. DISCUSSION: The general objective of the Due Diligence Review procedure is to see what "unencumbered cash" in the CRA Low Mod Income Housing Fund and the CRA -non- housing funds may be transferred to the state and county for eventual distribution to the taxing entities as outlined under the law. The Due Diligence Review is a multi-step process starting with the preparation of a report that analyzes the RDA assets and obligations. The review may be done by either the county auditor controller’s office or outsourced to an independent CPA firm. San Bernardino County has opted for agencies 8.A Packet Pg. 27 to use independent CPA firms from their approved list. The Due Diligence Review will be done in two parts that have different due dates. Part one is review of the CRA Low Mod Income Housing Fund (LMIHF) which must be done by October 1, 2012. The Agency’s Oversight Board must review, approve and transmit the final report to the DOF by October 15, 2012. Part two is review of the other CRA Funds which must be done by December 15, 2012. The Agency’s Oversight Board must review, approve and transmit the final report to the DOF by January 15, 2013. Any potential cash that is determined to be “unencumbered” must be remitted to the San Bernardino County Auditor-Controller within five days of receipt of “final DOF audit findings” from the Due Diligence Review reports submitted. Time is of the essence again because of the impending due dates and oppressive penalties. The Due Diligence procedures were only recently completed and confirmed between the DOF and the government auditing professionals with no change in the due dates. The auditing professionals were unwilling to quote a cost for the review until the due diligence procedures were finalized. Staff recommends that we contract with our current auditing firm of Rogers Anderson Malody Scott of San Bernardino to perform the Due Diligence Review due to the firms experience with our Agency and the limited time to do the work. Rogers Anderson Malody Scott has estimated the cost to perform the work at between $6,000 and $12,000. Staff recommends that the Successor Agency Board authorize the City Manager to enter into a contract with Rogers Anderson Malody Scott to perform the review at a cost not to exceed $15,000. The Due Diligence review is not a budgeted item but was included in ROPS 3 as an enforceable obligation in the amount of $20,000 to be paid from RDA property tax funds (RPTTF). FISCAL IMPACT: Appropriation of $15,000 from unassigned Successor Agency CRA Debt Service Fund Balance to expenditure account 33-140-250. ATTACHMENTS: ·DOF Instructions ·Procedures_Due_Diligence_Review ·FAQ-Due_Diligence_Reviews rev 9-5-12 ·7-5-12 Letter from SBC ATC-re-Due Diligence ·LCC REVISED Time line of 1484 w-complete lines.pdf; APPROVALS: Bernie Simon Completed 09/05/2012 5:52 PM Finance Completed 09/05/2012 5:53 PM 8.A Packet Pg. 28 City Attorney Completed 09/06/2012 6:18 AM City Manager Completed 09/06/2012 9:39 AM City Council Pending 8.A Packet Pg. 29 Home Redevelopment — Low and Moderate Income Housing Fund and Other Assets Due Diligence Reviews Low and Moderate Income Housing Fund and Other Assets Due Diligence Reviews HSC Section 34179.5 requires each Successor Agency to employ a licensed accountant, approved by the county auditor-controller and with experience and expertise in local government accounting, to conduct a due diligence review to determine the unobligated balances available for transfer to taxing entities. As an alternative, an audit provided by the county auditor-controller that provides the information required by this section may be used to comply with this section with the concurrence of the oversight board. LOW AND MODERATE INCOME HOUSING FUND DUE DILIGENCE REVIEWS Due Diligence reviews of the Low and Moderate Income Housing Fund must be submitted to the Oversight Board, the county auditor-controller, the State Controller’s Office and the Department of Finance by October 1, 2012. The Oversight Board has until October 15, 2012 to review, approve, and transmit to the Department of Finance and county auditor-controller the determination of the amount of cash and cash equivalents that are available for disbursement to taxing entities. Department of Finance reviews of the determinations provided by the Oversight Boards will be completed no later than November 9, 2012. Any decision to overturn determinations made by the Oversight Board to authorize a Successor Agency to retain assets or funds will be conveyed to the Oversight Board and Successor Agency via a letter. Successor Agencies have five days from receipt of the decisions to request “meet and confer.” ALL OTHER FUNDS AND ACCOUNTS DUE DILIGENCE REVIEWS Due Diligence reviews of all other funds and accounts must be submitted to the Oversight Board for the Successor Agency, the county auditor-controller, the State Controller’s Office, and the Department of Finance by December 15, 2012. The Oversight Board has until January 15, 2013 to review, approve, and transmit to the Department of Finance and county auditor-controller the determination of the amount of cash and cash equivalents that are available for disbursement to taxing entities. Department of Finance reviews of the determinations provided by the Oversight Boards will be completed no later than April 1, 2013. Any decision to overturn determinations made by the Oversight Board to authorize a Successor Agency to retain assets or funds will be conveyed to the Oversight Board and Successor Agency via a letter. Successor Agencies have five days from receipt of the decisions to request “meet and confer.” DUE DILIGENCE REVIEWS SUBMITTAL REQUIREMENTS While HSC Section 34179.6 allows the Department of Finance to specify the form and manner in which information about the review shall be provided, no specific form will be required. However, every due diligence review submitted, at a minimum, must contain the following: A cover page delineating whether the due diligence review was conducted by a licensed accountant or the county auditor-controller along with verification of approval or concurrence of the due diligence reviewer by the appropriate entity. A summary addressing each of the six deliverables required. See HSC Section 34179.5 (c) (1) – (6). ADDITIONAL INFORMATION The links below provide Due Diligence Procedures for use by Licensed Accountants who are conducting the Due Diligence Reviews. These were developed by the CPA society with input from the State Controller’s Office and the Department of Finance. Additionally, the FAQ below provides answers to frequently asked questions regarding due diligence reviews. Procedures for Due Diligence Review (.pdf, <1 MB) Reconciliation Worksheet (Due Diligence Review) (.xls, <1 MB) Example Summary Schedule (Due Diligence Review) (.xls, <1 MB) Due Diligence Review FAQs (.pdf, <1 MB) Webpage last updated September 5, 2012 Conditions of Use | Privacy Policy Copyright © 2011 State of California Page 1 of 1Redevelopment - Meet and Confer 9/5/2012http://www.dof.ca.gov/redevelopment/due_dilligence/view.php 8.A.a Packet Pg. 30 At t a c h m e n t : D O F I n s t r u c t i o n s ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 1 List of Procedures for Due Diligence Review General information regarding these procedures: 1. The procedures associated with Sections 34179.5(c)(1) through 34179.5(c)(3) and Sections 34179.5(c)(5) through 34179.5(c)(6) are to be applied separately to (a) the Low and Moderate Income Housing Fund of the Successor Agency and to (b) all other funds of the Successor Agency combined (excluding the Low and Moderate Income Housing Fund). 2. The due date for the report associated with the Low and Moderate Income Housing Fund is October 1, 2012. 3. The due date for the report associated with all other funds of the Successor Agency combined (excluding the Low and Moderate Income Housing Fund) is December 15, 2012. 4. Because the procedures required by Section 34179.5(c)(4) pertain to the Successor Agency as a whole, these procedures should be addressed in the report that is due on December 15, 2012. Fiscal year references below refer to fiscal years ending on June 30. This language should be modified for those agencies that have a different fiscal year-end. For purposes of the procedures below and the related exhibits, the amount of the assets presented should be based upon generally accepted accounting principles (GAAP), unless otherwise noted. To the extent the procedures listed below are duplicative to the agreed upon procedures that were performed pursuant to HSC 34182 (a)(1), it is acceptable to obtain and use information from the HSC 34182 (a)(1) procedures for purposes of this due diligence review without having to re- perform the procedures. When this is done, the due diligence report should refer to the report that was issued for the agreed upon procedures performed under HSC 34182 (a)(1). Certain assets may qualify as a deduction under more than one category of deduction. In such cases, care should be taken to ensure that such assets have been included as a deduction in the summary schedule only once. Citation: 34179.5(c)(1) The dollar value of assets transferred from the former redevelopment agency to the successor agency on or about February 1, 2012. Suggested Procedure(s): 1. Obtain from the Successor Agency a listing of all assets that were transferred from the former redevelopment agency to the Successor Agency on February 1, 2012. Agree the amounts on this listing to account balances established in the accounting records of the Successor Agency. Identify in the Agreed-Upon Procedures (AUP) report the amount of the assets transferred to the Successor Agency as of that date. 8.A.b Packet Pg. 31 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 2 Citation: 34179.5(c)(2) 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. The review shall provide documentation of any enforceable obligation that required the transfer. Suggested Procedure(s): 2. If the State Controller’s Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the former redevelopment agency to the city, county, or city and county that formed the redevelopment agency for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency’s enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) from the Successor Agency to the city, county, or city and county that formed the redevelopment agency for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency’s enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Citation: 34179.5(c)(3) 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. Suggested Procedure(s): 3. If the State Controller’s Office has completed its review of transfers required under both Sections 34167.5 and 34178.8 and issued its report regarding such review, attach a copy of that report as an exhibit to the AUP report. If this has not yet occurred, perform the following procedures: 8.A.b Packet Pg. 32 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 3 A. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) [from the former redevelopment agency to any other public agency or to private parties for the period from January 1, 2011 through January 31, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency’s enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. B. Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods and services) [from the Successor Agency to any other public agency or private parties for the period from February 1, 2012 through June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the transfer and describe in what sense the transfer was required by one of the Agency’s enforceable obligations or other legal requirements. Provide this listing as an attachment to the AUP report. C. For each transfer, obtain the legal document that formed the basis for the enforceable obligation that required any transfer. Note in the AUP report the absence of any such legal document or the absence of language in the document that required the transfer. Citation: 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 years that reconciles balances, assets, and liabilities of the successor agency on June 30, 2012 to those reported to the Controller for the 2009–10 fiscal year. Suggested Procedure(s): 4. Perform the following procedures: A. Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment Agency and the Successor Agency in the format set forth in the attached schedule for the fiscal periods indicated in the schedule. For purposes of this summary, the financial transactions should be presented using the modified accrual basis of accounting. End of year balances for capital assets (in total) and long-term liabilities (in total) should be presented at the bottom of this summary schedule for information purposes. B. Ascertain that for each period presented, the total of revenues, expenditures, and transfers accounts fully for the changes in equity from the previous fiscal period. C. Compare amounts in the schedule relevant to the fiscal year ended June 30, 2010 to the state controller’s report filed for the Redevelopment Agency for that period. D. Compare amounts in the schedule for the other fiscal periods presented to account balances in the accounting records or other supporting schedules. Describe in the report the type of support provided for each fiscal period. 8.A.b Packet Pg. 33 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 4 Citation: 34179.5(c)(5) A separate accounting for the balance for the Low and Moderate Income Housing Fund for all other funds and accounts combined shall be made as follows: (A) A statement of the total value of each fund as of June 30, 2012. Suggested Procedure(s): 5. Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income Housing Fund as of June 30, 2012 for the report that is due October 1, 2012 and a listing of all assets of all other funds of the Successor Agency as of June 30, 2012 (excluding the previously reported assets of the Low and Moderate Income Housing Fund) for the report that is due December 15, 2012. When this procedure is applied to the Low and Moderate Income Housing Fund, the schedule attached as an exhibit will include only those assets of the Low and Moderate Income Housing Fund that were held by the Successor Agency as of June 30, 2012 and will exclude all assets held by the entity that assumed the housing function previously performed by the former redevelopment agency. Agree the assets so listed to recorded balances reflected in the accounting records of the Successor Agency. The listings should be attached as an exhibit to the appropriate AUP report. Citation: 34179.5(c)(5)(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. Suggested Procedure(s): 6. Obtain from the Successor Agency a listing of asset balances held on June 30, 2012 that are restricted for the following purposes: A. Unspent bond proceeds: i. Obtain the Successor Agency’s computation of the restricted balances (e.g., total proceeds less eligible project expenditures, amounts set aside for debt service payments, etc.) ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. 8.A.b Packet Pg. 34 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 5 B. Grant proceeds and program income that are restricted by third parties: i. Obtain the Successor Agency’s computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by the Successor Agency as restricted. C. Other assets considered to be legally restricted: i. Obtain the Successor Agency’s computation of the restricted balances (e.g., total proceeds less eligible project expenditures). ii. Trace individual components of this computation to related account balances in the accounting records, or to other supporting documentation (specify in the AUP report a description of such documentation). iii. Obtain from the Successor Agency a copy of the legal document that sets forth the restriction pertaining to these balances. Note in the AUP report the absence of language restricting the use of the balances that were identified by Successor the Agency as restricted. D. Attach the above mentioned Successor Agency prepared schedule(s) as an exhibit to the AUP report. For each restriction identified on these schedules, indicate in the report the period of time for which the restrictions are in effect. If the restrictions are in effect until the related assets are expended for their intended purpose, this should be indicated in the report. Citation: 34179.5(c)(5)(C) 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-related assets. Suggested Procedure(s): 7. Perform the following procedures: A. Obtain from the Successor Agency a listing of assets as of June 30, 2012 that are not liquid or otherwise available for distribution (such as capital assets, land held for resale, long-term receivables, etc.) and ascertain if the values are listed at either purchase cost (based on book value reflected in the accounting records of the Successor Agency) or market value as recently estimated by the Successor Agency. B. If the assets listed at 7(A) are listed at purchase cost, trace the amounts to a previously audited financial statement (or to the accounting records of the Successor Agency) and note any differences. 8.A.b Packet Pg. 35 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 6 C. For any differences noted in 7(B), inspect evidence of disposal of the asset and ascertain that the proceeds were deposited into the Successor Agency trust fund. If the differences are due to additions (this generally is not expected to occur), inspect the supporting documentation and note the circumstances. D. If the assets listed at 7(A) are listed at recently estimated market value, inspect the evidence (if any) supporting the value and note the methodology used. If no evidence is available to support the value and\or methodology, note the lack of evidence. Citation: 34179.5(c)(5)(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 shall provide a listing of all approved enforceable obligations that includes a projection of annual spending requirements to satisfy each obligation and a projection of annual 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 received 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. Suggested Procedure(s): 8. Perform the following procedures: A. If the Successor Agency believes that asset balances need to be retained to satisfy enforceable obligations, obtain from the Successor Agency an itemized schedule of asset balances (resources) as of June 30, 2012 that are dedicated or restricted for the funding of enforceable obligations and perform the following procedures. The schedule should identify the amount dedicated or restricted, the nature of the dedication or restriction, the specific enforceable obligation to which the dedication or restriction relates, and the language in the legal document that is associated with the enforceable obligation that specifies the dedication of existing asset balances toward payment of that obligation. i. Compare all information on the schedule to the legal documents that form the basis for the dedication or restriction of the resource balance in question. ii. Compare all current balances to the amounts reported in the accounting records of the Successor Agency or to an alternative computation. iii. Compare the specified enforceable obligations to those that were included in the final Recognized Obligation Payment Schedule approved by the California Department of Finance. iv. Attach as an exhibit to the report the listing obtained from the Successor Agency. Identify in the report any listed balances for which the Successor Agency was 8.A.b Packet Pg. 36 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 7 unable to provide appropriate restricting language in the legal document associated with the enforceable obligation. B. If the Successor Agency believes that future revenues together with balances dedicated or restricted to an enforceable obligation are insufficient to fund future obligation payments and thus retention of current balances is required, obtain from the Successor Agency a schedule of approved enforceable obligations that includes a projection of the annual spending requirements to satisfy each obligation and a projection of the annual revenues available to fund those requirements and perform the following procedures: i. Compare the enforceable obligations to those that were approved by the California Department of Finance. Procedures to accomplish this may include reviewing the letter from the California Department of Finance approving the Recognized Enforceable Obligation Payment Schedules for the six month period from January 1, 2012 through June 30, 2012 and for the six month period July 1, 2012 through December 31, 2012. ii. Compare the forecasted annual spending requirements to the legal document supporting each enforceable obligation. a. Obtain from the Successor Agency its assumptions relating to the forecasted annual spending requirements and disclose in the report major assumptions associated with the projections. iii. For the forecasted annual revenues: a. Obtain from the Successor Agency its assumptions for the forecasted annual revenues and disclose in the report major assumptions associated with the projections. C. If the Successor Agency believes that projected property tax revenues and other general purpose revenues to be received by the Successor Agency are insufficient to pay bond debt service payments (considering both the timing and amount of the related cash flows), obtain from the Successor Agency a schedule demonstrating this insufficiency and apply the following procedures to the information reflected in that schedule. i. Compare the timing and amounts of bond debt service payments to the related bond debt service schedules in the bond agreement. ii. Obtain the assumptions for the forecasted property tax revenues and disclose major assumptions associated with the projections. iii. Obtain the assumptions for the forecasted other general purpose revenues and disclose major assumptions associated with the projections. D. If procedures A, B, or C were performed, calculate the amount of current unrestricted balances necessary for retention in order to meet the enforceable obligations by performing the following procedures. i. Combine the amount of identified current dedicated or restricted balances and the amount of forecasted annual revenues to arrive at the amount of total resources available to fund enforceable obligations. 8.A.b Packet Pg. 37 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 8 ii. Reduce the amount of total resources available by the amount forecasted for the annual spending requirements. A negative result indicates the amount of current unrestricted balances that needs to be retained. iii. Include the calculation in the AUP report. Citation: 34179.5(c)(5)(E) An itemized 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. Suggested Procedure(s): 9. If the Successor Agency believes that cash balances as of June 30, 2012 need to be retained to satisfy obligations on the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2012 through June 30, 2013, obtain a copy of the final ROPS for the period of July 1, 2012 through December 31, 2012 and a copy of the final ROPS for the period January 1, 2013 through June 30, 2013. For each obligation listed on the ROPS, the Successor Agency should add columns identifying (1) any dollar amounts of existing cash that are needed to satisfy that obligation and (2) the Successor Agency’s explanation as to why the Successor Agency believes that such balances are needed to satisfy the obligation. Include this schedule as an attachment to the AUP report. Citation: 34179.5(c)(6) The review shall total the net balances available after deducting the total amounts described in subparagraphs (B) to (E), inclusive, of paragraph (5). The review shall add any amounts that were transferred as identified in paragraphs (2) and (3) of subdivision (c) if an enforceable obligation to make that transfer did not exist. The resulting sum shall be available for allocation 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 insufficient cash balances to transfer or that cash or cash equivalents are specifically obligated to the purposes described in subparagraphs (B), (D), and (E) of paragraph (5) 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 itemized schedule. Suggested Procedure(s): 10. Include (or present) a schedule detailing the computation of the Balance Available for Allocation to Affected Taxing Entities. Amounts included in the calculation should agree to the results of the procedures performed in each section above. The schedule should also include a deduction to recognize amounts already paid to the County Auditor- Controller on July 12, 2012 as directed by the California Department of Finance. The amount of this deduction presented should be agreed to evidence of payment. The attached example summary schedule may be considered for this purpose. Separate schedules should be completed for the Low and Moderate Income Housing Fund and for all other funds combined (excluding the Low and Moderate Income Housing Fund). 8.A.b Packet Pg. 38 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) V. 8-27-12 9 Suggested Procedure(s): 11. Obtain a representation letter from Successor Agency management acknowledging their responsibility for the data provided to the practitioner and the data presented in the report or in any attachments to the report. Included in the representations should be an acknowledgment that management is not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment agency or the Successor Agency to other parties for the period from January 1, 2011 through June 30, 2012 that have not been properly identified in the AUP report and its related exhibits. Management’s refusal to sign the representation letter should be noted in the AUP report as required by attestation standards. 8.A.b Packet Pg. 39 At t a c h m e n t : P r o c e d u r e s _ D u e _ D i l i g e n c e _ R e v i e w ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) Version 2— 9.5.12 1 Frequently Asked Questions Regarding Due Diligence Reviews 1. Question: “Licensed accountant” is not a defined term. Is the “Due Diligence Review” task only to be performed by an accountant who has a license issued by the Department of Consumer Affairs? Answer: If the local decision is to not use the county auditor-controller to perform the due diligence review, then an accountant licensed by the Department of Consumer Affairs, California Board of Accountancy, must be used. 2. Question: Is the concept of “experience and expertise in local government accounting” subject to the discretion and judgment of the successor agency or does the SCO and DOF want to define a set minimum number of years of experience? Answer: Determining the appropriate amount of experience and expertise in local government accounting is at the discretion and judgment of the successor agency. We will not be establishing a requirement for a minimum number of years of experience. 3. Question: Who should engage the accountant for this task and how should the County’s approval be communicated? Answer: It is up to the successor agency to engage the entity that will be performing the Due Diligence Reviews. When submitting the Due Diligence Review to the DOF, the successor agency shall include a cover page that indicates whether the due diligence review was conducted by a licensed accountant or the county auditor-controller along with verification of approval or concurrence of the due diligence reviewer by the appropriate entity. 4. Question: If the Auditor-Controller does this work, do any personnel used have to also be “licensed accountants”? Answer: No. 5. Question 2: AB 1484 requires each successor agency to employ a licensed accountant to conduct a due diligence review. Does the cost for this requirement need to come out of the administrative budget of the successor agency? Answer: To the extent available the cost for the due diligence review should be paid out of the current administrative cost allowance. If there is not sufficient RPTTF available, HSC section 34173 (h) allows the successor agencies to obtain a loan for the cost. This loan, if approved by the successor agency’s oversight board, would qualify as an enforceable obligation. HSC section 34177.3 (b) also allows successor agencies to create an enforceable obligation to conduct the work of winding down the redevelopment agency. The enforceable obligation must be included on the ROPS and approved by the oversight board. 8.A.c Packet Pg. 40 At t a c h m e n t : F A Q - D u e _ D i l i g e n c e _ R e v i e w s r e v 9 - 5 - 1 2 ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) AUDITOR ·CONTROLLERI TREASURERITAX COLLECTOR 00 222 West Hospitality Lane , Fourth Floor San Bernardino, CA 92415-0018 • (909) 387-8322 • Fax (909) 386-8830 COUNTY OF SAN BERNARDI NO LARRY WALKER Auditor-Controllerl Treasurer/Tax Collector o 172 West Third Street, First Floor San Bernardino, CA 92415-0360 • (909) 387-8308 • Fax (909) 387-6716 July 5,2012 To: All Successor Agencies, Cities, Joint Powers Authorities (Em ailed JulyS, 20J 2 -hard copy to follow) Re: Successor Agency Due Diligence Reviews -Due by October 1 and December 15, 2012 AB 1484, the trailer bill to "clean-up" ABXl 26, added and amended several Health and Safety (H&S) Code sections. The County of San Bernardino Auditor-Controller (A TC) is issuing this advisory letter to assist each Successor Agency in complying with October 1 and December 15, 2012 deadlines to have a due diligence review completed and submitted to certain state and local agencies. AB 1484 added Health and Safety Code (H&S) sections 34179.5 and 31479.6 in furtherance of H&S section 34177(d). H&S 34177(d), as amended, requires Successor Agencies to remit unencumbered balances of redevelopment agency funds to county auditor-controllers for distribution to taxing entities. H&S 34179.5 requires Successor Agencies to conduct a due diligence review to determine the unobligated balances available for transfer to taxing entities. H&S 34179.5(a) requirements include, but are not limited to: 1. Successor Agency must employ a licensed accountant to conduct the due diligence review; 2. The licensed accountant must have experience and expertise in local government accounting; and 3. The county auditor-controller must approve the licensed accountant. H&S 31479.6 requires each Successor Agency to provide the results of the review conducted pursuant to H&S 34179.5 to the Successor Agency's oversight board, county auditor-controller, and state agencies by October 1,2012 and December 15,2012, respectively, for the Low and Moderate Income Housing Fund and for all the other fund and account balances not included in the Low and Moderate Income Housing Fund. Unfortunately, the authors of AB 1484 did not take into account the supply and demand for local goverrunent accounting services in the midst of fiscal year end accounting and financial reporting season for the performance of an additional and duplicative engagement. With those considerations, A TC recommends that each Successor Agency consider employing the CPA firm that is conducting the Successor Agency's Agreed-Upon Procedures "audit" or immediately procuring an A TC approved CPA firm to conduct the due diligence review. 8.A.d Packet Pg. 41 At t a c h m e n t : 7 - 5 - 1 2 L e t t e r f r o m S B C A T C - r e - D u e D i l i g e n c e ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) LtrlSuccessor Agency Due Diligence Reviews July 5,2012 Page 2 A TC approved CPA firms are listed on the following pages along with tables that summarize the H&S 31479.6 report deadlines and parties. The CPA firms listed are either performing Agreed­ Upon Procedure "audit" services for one or more San Bernardino County Successor Agencies or are providing accounting and audit services to the County. Other CPA firms may be approved once A TC has determined whether the CPA firm meets the requirements of H&S 34179.5, including, but not limited to the CPA firm's experience with RDAs and Successor Agency Agreed-Upon Procedures "audits". ATC's role in this part of AB 1484 implementation is limited to receiving due diligence review reports and approving the CPA firms employed by each Successor Agency. If you would like A TC to approve an unlisted CPA firm for the performance of the due diligence review, please contact Menaka Burkitt, Internal Auditor III at 909.386.8614 or menaka.burkitt@atc.sbcountv.go ,or Mark Cousineau, Auditor Division Chief at 909.386.8821 or mark.cousinl:au ( .atc.sbcounty.gov. Sincerely, ~ b er M Auditor-Controller/TreasurerlTax Collector San Bernardino County LDW:MWC:mah 8.A.d Packet Pg. 42 At t a c h m e n t : 7 - 5 - 1 2 L e t t e r f r o m S B C A T C - r e - D u e D i l i g e n c e ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) LtrlSuccessor Agency Due Diligence Reviews July 5,2012 Page 3 Brown Armstrong CPAs 4200 Truxton Avenue, Suite 300 Bakersfield , CA 93309 Eric Xin, (661) 324-4971 Marcum Stonefield I Caporicci & Larson, Inc. 5 Park Plaza, Suite 700 Irvine, CA 92614 Sheri Lejman , (949) 428-3452 MGO Certified Public Accountants 2029 Century Park East, Suite 500 Los Angeles, CA 90067 Jim Godsey, (310) 277-3373 Moss, Levy & Hartzheim LLP 9107 Wilshire Blvd ., Suite 400 Beverly Hills, CA 90210 Craig Hartzheim, (310) 273-2745 x1 06 Teaman, Ramirez & Smith, Inc. 4201 Brockton, Suite 100 Riverside, CA 92501 Greg Fankhanel, (951) 274-9500 Vavrinek, Trine, Day & Co., LLP 8270 Aspen Street Rancho Cucamonga, CA 91730 Kevin Pulliam, David Showalter, Roger Alfaro, (909) 466-4410 Lance, 5011 & Lunghard, LLP 203 North Brea Boulevard, Suite 203 Brea, CA 92821 Rich Kikuchi, (714) 672-0022 Mayer Hoffman McCann P.C. 2301 Dupont Drive, Suite 200 Irvine, CA 92612 Ken AI-Imam , (949) 474-2020 x273 Michael P. Burger Certified Public Accountant 121 F Street, Su ite 1 Needles, CA 92363 Michael Burber, (760) 326-4386 Rogers, Anderson, Malody & Scott, LLP 735 E. Carnegie Dr., Suite 100 San Bernardino, CA 92408 Terry Shea or Scott Manno, (909) 889-0871 Eadie and Payne LLP 1839 W Redlands Blvd Redlands, CA 92373 Eden Carsareno, (909) 793-2406 8.A.d Packet Pg. 43 At t a c h m e n t : 7 - 5 - 1 2 L e t t e r f r o m S B C A T C - r e - D u e D i l i g e n c e ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) LtriSuccessor Agency Due Diligence Reviews July 5, 2012 Page 4 Low AND MODERATE INCOME HOUSING FUND Due Date. October 1, 2012 Report to: Successor Agency oversight board San Bernardino County Auditor-Controller (A TC) Property Tax Section 222 W. Hospitality Lane, 2nd Floor San Bernardino, CA 92415-0018 San Bernardino County Administrative Office Attn: Gary McBride, Deputy Executive Officer 385 N. Arrowhead Avenue, 4th Floor San Bernardino, CA 92415 California State Controller's Office State of California Department of Finance ALL OTHER FUNDS (Funds and accounts not included in the Low and Moderate Income Housing Fund) Oue Date: December 15,2012 Report to: Successor Agency oversight board San Bernardino County Auditor-Controller (A TC) Property Tax Section 222 W. Hospitality Lane, 2nd Floor San Bernardino, CA 92415-0018 San Bernardino County Administrative Office Attn: Gary McBride, Deputy Executive Officer 385 N. Arrowhead Avenue, 4th Floor San Bernardino, CA 92415 California State Controller's Office State of California Department of Finance 8.A.d Packet Pg. 44 At t a c h m e n t : 7 - 5 - 1 2 L e t t e r f r o m S B C A T C - r e - D u e D i l i g e n c e ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) July 2, 2012 AB 1484: Important Dates July 9: County auditor-controller notifies successor agency of amount of funds owing taxing entities based upon December 2011 property tax payment1 July 12: Successor agency must make payment to auditor-controller for deposit into Redevelopment Property Tax Trust Fund and distribution to taxing entities.2 July 16: Auditor-controller distributes money received from successor agencies to taxing entities. Monies received after July 12 date distributed within 5 days of receipt.3 July 18: City sales tax payment suspended if successor agency doesn’t make July 12 payment.4 August 1: Successor housing entity must submit to DOF a list of housing assets that contains explanation of how assets meet criteria set forth in the law. DOF will prescribe format for list. DOF may object to any of the assets within 30 days. If after meet and confer, DOF continues to object, asset must be returned to the successor agency.5 August 10: Successor housing entity notifies successor agency of any designations of use or commitments of funds that successor housing entity authorizes successor agency to retain.6 August 15 +/-: Oversight board meets to consider ROPS for January 1, 2013 through June 30, 2013 which must be submitted to DOF by September 1. September 1: ROPS for January 1, 2013 through June 30, 2013 must be submitted electronically to DOF after oversight board approval.7 DOF makes determinations within 45 days. Within 5 days of determination, successor agency may request additional review and meet and confer. 1 Section 34183.5(b)(2)(A). Note: The statute, that may be drafted in error, states that if June 1 property tax payment has not been made to successor agencies, the amount owing to taxing entities will be deducted from that same June 1 payment (34183.5(b)(1)). 2 Section 34183.5(b)(2)(A). 3 Section 34183.5(b)(2)(A). 4 Section 34183.5(b)(2)(A) 5 Section 34176(a)(2). Definition of “housing asset” found at section 34176(e). 6 Section 34179.6(c) 7 Section 34177(m). Future ROPS must be submitted to DOF 90 days prior to property tax distribution. City subject to civil penalty of $10,000 per day for successor agency’s failure to timely submit ROPS (Section 34177(m)(2)). 1400 K Street, Suite 400 • Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org 8.A.e Packet Pg. 45 At t a c h m e n t : L C C R E V I S E D T i m e l i n e o f 1 4 8 4 w - c o m p l e t e l i n e s . p d f ; ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) June 28, 2012 October 1: Auditor-controller may provide notice to successor agency of any objections to items on January – June 2013 ROPS.8 October 1: Successor agency submits to oversight board, county auditor-controller, State Controller, and DOF results of the review of the LMIHF conducted by the licensed accountant agency must retain.9 Note: licensed accountant must be approved by the county auditor-controller. October 1: County auditor-controller completes agreed-upon procedures audit of each redevelopment agency.10 Auditor-controller provides estimate of property tax payments to successor agency for upcoming six-month period.11 October 15: Oversight Board must review, approve, and transmit LMIHF audit to DOF, auditor-controller. Note that oversight board must hold a public session to consider audit at least five business days prior to the meeting of oversight board in which LMIHF audit is considered for approval.12 November 9: Last day for DOF to complete review of LMIHF audit and reports findings, determinations, and decision to overturn oversight board decision to allow retention of successor agency assets.13 W/in 5 days of receipt of DOF audit findings: Successor agency may request meet and confer to resolve disputes with DOF findings on LMIHF audit.14 DOF must confirm or modify its determination and decisions within 30 days. W/in 5 days of receipt of DOF final audit determination: Successor agency to transfer LMIHF funds to auditor-controller.15 City sales tax/property tax may be offset for unfunded amounts. December 1: Successor agency may report to auditor-controller that total amount of available revenues will be insufficient to fund enforceable obligations.16 8 Section 34182.5. 9 Section 34179.6(a). The requirement to retain a licensed accountant is found in section 34179.5. The audit provided by the county auditor-controller can be substituted for an audit by a licensed accountant if it contains the information required by Section 34179.5. 10 Section 34182(a)(1). 11 Section 34182(c)(3) 12 Section 34179.6(c) and (b) 13 Section 34179.6(d) 14 Section 34179.6(e) 15 Section 34179.6(f) 16 Section 34183(b) 8.A.e Packet Pg. 46 At t a c h m e n t : L C C R E V I S E D T i m e l i n e o f 1 4 8 4 w - c o m p l e t e l i n e s . p d f ; ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r ) June 28, 2012 December 15: Successor agency submits to oversight board, county auditor-controller, State Controller, and DOF results of the review of all other fund and account balances by licensed accountant.17 2013 January 2: Auditor-controller makes distributions of property tax for January – June 2013 ROPS.18 January 15: Oversight board must review, approve, and transmit other funds audit to DOF, auditor-controller.19 March 3: Successor agency submits ROPS for July 1, 2013 through December 31, 2013 to DOF after oversight board approval.20 April 1: County auditor-controller provides estimate of property tax payments to successor agency for upcoming six-month period.21 April 1: DOF completes review of other funds audit and reports findings, determinations, and decision to overturn oversight board decision to allow retention of successor agency assets.22 April 6 +/-: No later than 5 days after receiving DOF determination on other funds audit, successor agency may request meet and confer to resolve disputes with DOF findings. DOF must confirm or modify its determination and decisions within 30 days. April 10: +/- Successor agency to transfer other “cash and assets” audit payment to auditor-controller if meet and confer process complete.23 City sales tax/property tax may be offset for unfunded amounts. May 1: Successor agency reports to auditor-controller if total amount of available revenues will be insufficient to fund enforceable obligations.24 17 Section 34179.6(a). 18 Section 34183(b). 19 Section 34179.6(a). 20 Section 34177(m). 21 Section 34182(c)(3) 22 Section 34179.6(a) 23 Section 34179.6(f). The statute does not allow sufficient time between completion of DOF review on April 1 and required payment on April 10. 24 Section 34183(b). 8.A.e Packet Pg. 47 At t a c h m e n t : L C C R E V I S E D T i m e l i n e o f 1 4 8 4 w - c o m p l e t e l i n e s . p d f ; ( 1 1 3 1 : D u e D i l l i g e n c e R e v i e w - A u t h o r i z a t i o n t o C o n t r a c t w i t h A u d i t o r )