HomeMy WebLinkAbout12-63 - Approving the Independent Accountant's Report regarding the Housing Due Diligence Review ConductedSUCCESSOR AGENCY RESOLUTION NO. 12-63
A RESOLUTION OF THE SUCCESSOR AGENCY TO
THE COSTA MESA REDEVELOPMENT AGENCY
APPROVING THE INDEPENDENT ACCOUNTANT'S
REPORT REGARDING THE HOUSING DUE DILIGENCE
REVIEW CONDUCTED PURSUANT TO SECTION
34179.5 FOR THE LOW AND MODERATE INCOME
HOUSING FUND AND AUTHORIZING STAFF TO
TRANSMIT THE REPORT, ALONG WITH THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE, TO
THE OVERSIGHT BOARD AND TO THE COUNTY
AUDITOR -CONTROLLER, STATE CONTROLLER'S
OFFICE, AND DEPARTMENT OF FINANCE PURSUANT
TO SECTION 34179.6 OF THE DISSOLUTION ACT.
WHEREAS, the Costa Mesa Redevelopment Agency ("Agency") was established
as a redevelopment agency that was previously organized and existing under the
California Community Redevelopment Law, Health and Safety Code Section 33000, et
seq. ("CRL"), and previously authorized to transact business and exercise powers of a
redevelopment agency pursuant to action of the City Council of the City of Costa Mesa
("City"); and
WHEREAS, Assembly Bill x1 26 chaptered and effective on June 27, 2011
added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which
caused the dissolution of all redevelopment agencies and winding down of the affairs of
former agencies, including as such laws were amended by Assembly Bill 1484
chaptered and effective on June 27, 2012 (together, the "Dissolution Act"); and
WHEREAS, as of February 1, 2012 the Agency was dissolved pursuant to the
Dissolution Act and as a separate legal entity the City serves as the Successor Agency
to the Costa Mesa Redevelopment Agency ("Successor Agency"); and
WHEREAS, the Successor Agency administers the enforceable obligations of the
former Agency and otherwise unwinds the Agency's affairs, all subject to the review and
approval by a seven -member oversight board ("Oversight Board"); and
WHEREAS, pursuant to Section 34179 the Successor Agency's Oversight Board
has been formed and the initial meeting has occurred on April 19, 2012; and
WHEREAS, Section 34179 provides that the Oversight Board has fiduciary
responsibilities to holders of enforceable obligations and the taxing entities that benefit
from distributions of property tax and other revenues pursuant to Section 34188 of Part
1.85 of the Dissolution Act; and
WHEREAS, Sections 34177(m), and 34179 provide that each Recognized
Obligation Payment Schedule is prepared, submitted to reviewed and approved by the
Successor Agency and then reviewed and approved by the Oversight Board; and
WHEREAS, the Dissolution Act, as amended by AB 1484, in particular Section
34177(m) requires that the 'Recognized Obligation Payment Schedule for the period of
January 1, 2013, to June 30, 2013" (`BOPS IIP'), shall be submitted by the successor
agency, after approval by the oversight board, no later than September 1, 2012"; and
WHEREAS, on August 23, 2012 by Resolution the Oversight Board approved
ROPS III in the form attached herewith; and
WHEREAS, Section 34179.5 requires the Successor Agency to employ a
licensed accountant approved by the Orange County Auditor -Controller to perform a
due diligence review and report on the amount of funds transferred from the former
Costa Mesa Redevelopment Agency; and
WHEREAS, on July 19, 2012, the Orange County Auditor -Controller provided
written approval to Successor Agency staff of their selection of White Nelson Diehl
Evans as the licensed accountant to perform the due diligence review for the Successor
Agency; and
WHEREAS, on August 30, 2012, the Department of Finance posted on its official
website the agreed-upon procedures to conduct the due diligence reviews; and
WHEREAS, in accordance with the provisions of the agreed-upon procedures
and provisions of Section 34179.5, White Nelson Diehl Evans has completed the
housing due diligence review and report a copy of which is attached hereto and
incorporated by this reference.
NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY TO
THE COSTA MESA REDEVELOPMENT AGENCY:
1. The foregoing recitals are incorporated into this Resolution by this
reference, and constitute a material part of this Resolution.
2. Pursuant to the Dissolution Act, the Successor Agency has received and
reviewed the Housing Due Diligence Review Report as submitted herewith as
Attachment 1.
3. The Successor Agency authorizes transmittal of the Housing Due
Diligence Review Report to the Oversight Board for its review and approval and also
directs staff to send such report to the County Auditor -Controller, State Controller's Office
and Department of Finance, as required by Section 34179.6.
4. The Successor Agency further directs staff to submit to the Oversight
Board, County Administrative Officer, County Auditor -Controller, and Department of
Finance a copy of the Recognized Obligation Payment Schedule, as attached hereto as
Attachment 2 and incorporated by this reference, at the same time as the Housing Due
Diligence Review Report.
5. The Assistant Finance Director of the Successor Agency or her authorized
is directed to post this Resolution on the Successor Agency website pursuant to the
Dissolution Act.
6. The City Clerk shall certify to the adoption of this Resolution.
PASSED AND ADOPTED this 27th day of September, 2012.
ATTEST:
Brenda Green, ecretary
Successor Agency to the
Costa Mesa Redevelopment Agency
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,AIbccessor Agency to the Costa Mesa
Redevelopment Agency
APPROVED AS TO FORM:
Thomas Duartg, dity Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, Interim City Clerk/Secretary of the Successor Agency to the
Costa Mesa Redevelopment Agency, DO HEREBY CERTIFY that the above and
foregoing is the original of Resolution No. 12-63 and was duly passed and adopted by
the Successor Agency to the Costa Mesa Redevelopment Agency at a regular meeting
held on the 27th day of September, 2012, by the following roll call vote, to wit:
AYES: AGENCY MEMBERS: RIGHEIMER, LEECE, MENSINGER,
MONAHAN
NOES: AGENCY MEMBERS: NONE
ABSENT: AGENCY MEMBERS: SEVER
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 27th day of September, 2012.
6�c�& r
BRENDA GREEN,
INTERIM CITY CLERK/SECRETARY
SUCCESSOR AGENCY TO THE
COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT1
to Successor Agency Resolution No. 12-63
Housing Due Diligence Review Report
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
Independent Accountants' Report on Applying Agreed -Upon Procedures
On the Costa Mesa Redevelopment Agency's
And
The Successor Agency to the Costa Mesa Redevelopment Agency's
Low and Moderate Income Housing Fund
Pursuant to California Health and Safety Code Section 34179.5
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
Table of Contents
Page
Independent Accountants' Report on Applying Agreed -Upon Procedures
Related to the Low and Moderate Income Housing Fund
Attachment A - Agreed -Upon Procedures and Findings Related to the
Low and Moderate Income Housing Fund 2 - 9
SUPPORTING SCHEDULES:
Schedule 1 - Listing of Assets Transferred to Successor Agency
as of February 1, 2012 10
Schedule 2 - Transfers to Costa Mesa Housing Authority 1 I
Schedule 3 - Listing of Assets as of June 30, 2012 12
Schedule 4 - Calculation of Unrestricted Asset Balance for Retention 13
Schedule 5 - Schedule of Cash Balances for Retention to Meet Obligations in
Fiscal Year 2012-2013
14-15
Schedule 6 - Summary of Balance Available for Allocation to Affected
Taxing Agencies 16
Independent Accountants' Report on Applying Agreed -Upon Procedures
Related to the Low and Moderate Income Housing Fund
Oversight Board of the Successor Agency
to the Costa Mesa Redevelopment Agency
Costa Mesa, California
We have performed the minimum required agreed-upon procedures (AUP) enumerated in
Attachment A, which were agreed to by the California Department of Finance, the California State
Controller's Office, the Orange County Auditor -Controller, and the Successor Agency to the Costa
Mesa Redevelopment Agency (Successor Agency), (collectively, the Specified Parties), solely to assist
you in meeting the statutory requirements of Health and Safety Code Section 34179.5 related to the
Low and Moderate Income Housing Fund of the former Costa Mesa Redevelopment Agency and
Successor Agency. Management of the Successor Agency is responsible for meeting the statutory
requirements of Health and Safety Code Section 34179.5 related to the Low and Moderate Income
Housing Fund. This agreed-upon procedures engagement was conducted in accordance with attestation
standards established by the American Institute of Certified Public Accountants. The sufficiency of
these procedures is solely the responsibility of those parties specified in the report. Consequently, we
make no representation regarding the sufficiency of the procedures described below, either for the
purpose for which this report has been requested or for any other purpose.
The scope of this engagement was limited to performing the agreed-upon procedures as set forth in
Attachment A. Attachment A also identifies the findings noted as a result of the procedures
performed.
We were not engaged to and did not conduct an audit, the objective of which would be the expression
of an opinion on whether the Successor Agency has met the statutory requirements of Health and
Safety Code Section 34179.5 related to the Low and Moderate Income Housing Fund. Accordingly, we
do not express such an opinion. Had we performed additional procedures, other matters might have
come to our attention that would have been reported to you.
This report is intended solely for the information and use of the Oversight Board and management of
the Successor Agency to the Costa Mesa Redevelopment Agency, the California Department of
Finance, the California State Controller's Office, and the Orange County Auditor -Controller, and is not
intended to be, and should not be, used by anyone other than these specified parties.
ld,4� 7 ou� aaJ Z/ -,.--i
Irvine, California
September 21, 2012
1
2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
1. Procedure:
Obtain from the Successor Agency a listing of all assets that were transferred from the former
redevelopment agency's Low and Moderate Income Housing Fund 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.
Finding:
We agreed the amounts listed on Schedule 1 to the Successor Agency's accounting records
without exceptions. The former redevelopment agency transferred $1,822,913 in assets to the
Successor Agency's Low and Moderate Income Housing Fund as detailed in Schedule 1.
2A. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from the Low and Moderate Income Housing Fund of the former redevelopment
agency to the city 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.
Finding:
This procedure is not applicable as the former redevelopment agency did not make any transfers
from the Low and Moderate Income Housing Fund other than payments for goods and services to
the City of Costa Mesa during the period from January 1, 2011 through January 31, 2012.
2B. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from the Low and Moderate Income Housing Fund of the Successor Agency to the
city 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.
Finding:
This procedure is not applicable as the Successor Agency did not make any transfers from the
Low and Moderate Income Housing Fund other than payments for goods and services to the City
of Costa Mesa during the period from February 1, 2012 through June 30, 2012.
2
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
2C. Procedure:
For each transfer, obtain the legal document that formed the basis for the enforceable obligation
that required the 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.
Finding:
This procedure is not applicable since no transfers were identified as a result of Procedures 2A
and 2B.
3A. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from the Low and Moderate Income Housing Fund of 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.
Finding:
This procedure is not applicable as the former redevelopment agency did not make any transfers
to other public agencies or private parties from the Low and Moderate Income Housing Fund
other than payments for goods and services during the period from January 1, 2011 through
January 31, 2012.
3B. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from the Low and Moderate Income Housing Fund of the Successor Agency to any
other public agency or to 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 described 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.
G
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
3B. Finding:
The Low and Moderate Income Housing Fund of the former redevelopment agency transferred
assets as shown in Schedule 2 to the Housing Successor (Costa Mesa Housing Authority).
(a) The California Department of Finance has reviewed and approved the transfers reported on
the Housing Asset List with the exception of two loans in the amount of $66,000 and
$115,250. The Successor Agency does not agree with the Department of Finance's decision
and has requested a meeting to resolve this matter.
(b) The encumbered cash transferred of $892,500 to the Housing Successor was $500 more than
the amount of $892,000 required to build or acquire low and moderate income housing under
an Affordable Housing Agreement between the Costa Mesa Redevelopment Agency and
Rutter 1901 Newport LLC.
(c) We noted that the value of one asset transferred (land in the amount of $1,697,665) which
was not recorded in the accounting records of the former redevelopment agency as of
January 31, 2012 or the Housing Authority as of February 1, 2012,
3C. Procedure:
For each transfer, obtain the legal document that formed the basis for the enforceable obligation
that required the transfer. Note in the AUP report that formed the absence of any such legal
document or the absence of language in the document that required the transfer.
Finding:
Schedule 2 in the report shows the details for the enforceable obligation or other legal
requirement supporting the transfers.
4. Procedure:
Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment
Agency and the Successor Agency for the fiscal periods ended June 30, 2010, June 30, 2011,
January 31, 2012 and June 30, 2012. Ascertain that for each period presented, the total of
revenues, expenditures and transfers account fully for the changes in equity from the previous
fiscal period. Compare amounts for the fiscal period ended June 30, 2010 to the state controller's
report filed for the Redevelopment Agency for that period. Compare the amounts for the other
fiscal periods presented to the account balances in the accounting records or other supporting
schedules.
0
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
4. Finding:
This procedure is required by Section 34179.5(c)(4) for the Successor Agency as a whole and
therefore will be addressed in the AUP report associated with all other funds of the Successor
Agency due December 15, 2012.
5. Procedure:
Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income
Housing Fund (excluding assets held by the entity that assumed the housing function previously
performed by the former redevelopment agency) as of June 30, 2012. Agree the assets on listing
to the accounting records of the Successor Agency.
Finding:
As of June 30, 2012, the Successor Agency's total assets related to the former redevelopment
agency's Low and Moderate Income Housing Fund amounted to $1,677,216 as shown in
Schedule 3.
6. Procedure:
Obtain from the Successor Agency a listing of asset balances related to the former redevelopment
agency's Low and Moderate Income Housing Fund on June 30, 2012 that were restricted for the
following purposes:
• unspent bond proceeds,
• grant proceeds and program income restricted by third parties, and
• other assets with legal restrictions.
6A. Procedure - Unspent Bond Proceeds:
Obtain the Successor Agency's computation of the restricted balances and trace individual
components of this computation to related account balances in the accounting records, or to other
supporting documentation. Obtain the legal document that sets forth the restriction pertaining to
these balances.
Finding:
This procedure is not applicable as the Successor Agency's assets related to the former
redevelopment agency's Low and Moderate Income Housing Fund did not have unspent bond
proceeds as of June 30, 2012.
5
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
6B. Procedure - Grant Proceeds and Program Income Restricted by Third Parties:
Obtain the Successor Agency's computation of the restricted balances and trace individual
components of this computation to related account balances in the accounting records, or to other
supporting documentation. Obtain a copy of the grant agreement that sets forth the restriction
pertaining to these balances.
Finding:
This procedure is not applicable as the Successor Agency's assets related to the former
redevelopment agency's Low and Moderate Income Housing Fund did not have grant proceeds
and program income restricted by third parties as of June 30, 2012.
6C. Procedure - Other Assets Considered to be Legally Restricted:
Obtain the Successor Agency's computation of the restricted balances and trace individual
components of this computation to related account balances in the accounting records or other
supporting documentation. We obtained the legal document that sets forth the restriction
pertaining to these balances.
Finding:
This procedure is not applicable as the Successor Agency's assets related to the former
redevelopment agency's Low and Moderate Income Housing Fund did not have other assets
considered to be legally restricted as of June 30, 2012.
Procedure:
Obtain from the Successor Agency a listing of assets of the former redevelopment agency's Low
and Moderate Income Housing Fund as of June 30, 2012 that are not liquid or otherwise available
for distribution and ascertain if the values are listed at either purchase cost or market value as
recently estimated by the Successor Agency. For assets listed at purchased cost, trace the amount
to a previously audited financial statement or other accounting records of the Successor Agency
and note any differences. For any differences noted, inspect evidence of asset disposal
subsequent to January 31, 2012 and ascertain that the proceeds were deposited into the Successor
Agency's trust fund. For assets listed at recently estimated market value, inspect evidence
supporting the value and note the methodology used.
Finding:
This procedure is not applicable as the former redevelopment agency's Low and Moderate
Income Housing Fund did not have any assets that were not liquid or otherwise available for
distribution as of June 30, 2012.
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
8A. Procedure:
If the Successor Agency identified that existing asset balances were needed to be retained to
satisfy enforceable obligations, obtain an itemized schedule of asset balances (resources) as of
June 30, 2012 that were dedicated or restricted for the funding of enforceable obligations.
Compare the information on the schedule to the legal documents that formed the basis for the
dedication or restriction of the resource balance in question. Compare all current balances which
needed to be retained to satisfy enforceable obligations to the amounts reported in the accounting
records of the Successor Agency or to an alternative computation. Compare the specified
enforceable obligations to those that were included in the final Recognized Obligation Payment
Schedule (ROPS) approved by the California Department of Finance. If applicable, identify any
listed balances for which the Successor Agency was unable to provide appropriate restricting
language in the legal document associated with the enforceable obligation.
Finding:
As of .Tune 30, 2012, the Successor Agency's asset balances to be retained in order to satisfy
enforceable obligations amount to $140,540 as detailed in Schedule 4. These enforceable
obligations were reported on ROPS 1.
8B. Procedure:
If the Successor Agency identified 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 include a projection of the annual spending requirements to
satisfy each obligation and a projection of the annual revenues available to fund those
requirements. Compare the enforceable obligations to those that were approved by the California
Department of Finance 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. Compare the forecasted
annual spending requirements to the legal document supporting the enforceable obligation and
obtain the Successor Agency's assumptions relating to the forecasted annual spending
requirements. Obtain the Successor Agency's assumptions for the forecasted annual revenues.
Disclose the major assumptions for the forecasted annual spending requirements and the
forecasted annual revenues in this AUP report.
Finding:
This procedure is not applicable as the Successor Agency did not identify any assets to be
retained under this procedure.
7
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
8C. Procedure:
If the Successor Agency identified 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 tinning and amount of the related cash flows), obtain a schedule
demonstrating this insufficiency. Compare the timing and amounts of bond debt service
payments to the related bond debt service schedules in the bond agreement. Obtain the
assumptions for the forecasted property tax revenues and other general purpose revenues and
disclose them in this AUP report.
Finding:
This procedure is not applicable as the Successor Agency did not identify any assets to be
retained under this procedure.
8D. Procedure:
If Procedures 8A, 8B and 8C were performed, calculate the amount of unrestricted balances
necessary for retention in order to meet enforceable obligations. Combine the amount identified
as currently restricted balances and the forecasted annual revenues to arrive at the amount of total
resources available to fund enforceable obligations. Reduce the total resources available by the J
amount of forecasted annual spending requirements. Include the calculation in this AUP report.
Finding:
The unrestricted balances necessary for retention to meet enforceable obligations is detailed in
Schedule 4. The Successor Agency does not expect any revenues to pay for these enforceable
obligations.
9. Procedure:
If the Successor Agency identified 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 identify (a) any dollar amount of existing cash that was needed to satisfy the
obligation, and (b) the Successor Agency's explanation as to why the Successor Agency believes
that such balances were needed to satisfy the obligation. Include this schedule as an attachment
to this AUP report.
9
9
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
Finding:
The Successor Agency has identified $35,756 in cash balances be retained to satisfy obligations
on the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2012 to
December 31, 2012 as shown in Schedule 5.
10. Procedure:
Present a schedule detailing the computation of the Balance Available for Allocation to Affected
Taxing Agencies. Amounts included in the calculation should agree to the results of the
procedures performed above. Agree any deductions for amounts already paid to the County
Auditor -Controller on July 12, 2012 as directed by the California Department of Finance to
evidence of payment.
Finding:
The computation of the Balance Available for Allocation to Affected Taxing Agencies shows
$1,500,920 to be remitted to the County for disbursement to taxing agencies as shown in
Schedule 6.
11. Procedure:
Obtain a representation letter from management of the Successor Agency acknowledging their
responsibility for the data provided and the data presented in the report or in any schedules or
exhibits to the report. Included in the representations is an aelmowledgment 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 this AUP report and its related schedules
or exhibits. Management's refusal to sign the representation letter should be noted in the AUP
report as required by attestation standards.
Finding:
No exceptions were noted as a result of this Procedure.
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
LISTING OF ASSETS TRANSFERRED TO SUCCESSOR AGENCY
ASSETS
Cash and investments
NOTE:
As of February 1, 2012
SCHEDULEI
Total
as of
February 1, 2012
$ 1,822,913
(A) For accounting purposes, the following assets recorded in the Low and Moderate Income Housing Fund at
,January 31, 2012 were transferred to the Costa Mesa Housing Authority (-lousing Successor) on February 1, 2012
pursuant to Health and Safety Code Section 34176(a)(2).
Cash and investments $ 1,017,528
Loans 6,338,244
$ 7,355,772
10
SCHEDULE2
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
TRANSFERS TO THE COSTA MESA HOUSING AUTHORITY
FOR THE PERIOD FEBRUARY 1, 2012 THROUGH JUNE 30,2012:
Date of
Transfer Description of Transfer Pugaoseol Transfer
Amount
Enforceable Obligation and
Document SaUperting Transfer
2/1/2012
Transfer of Real Property to
Transfer Housing Assets to the Costa
Health and Safety Code Section 34176(x)(2)
Costa Mesa Housing Authority
Mesa Housing Authority
Property transferred and reported on
Housing Asset List filed with the Department
(1) $ 1,697,665
of Finance
2/1/2012
Transfer of Cash to
Transfer ofcash for finds encumbered
Health and Safety Code Section 34176(x)(2)
Costa Mesa Housing Authority
to build or acquire low and moderate income
Encumbered cash transferred and reported on
housing under an Affordable Housing
Housing Asset List filed with Che Department
Agreement between the Costa Mesa
of Finance
Redevelopment Agency and Rutter 1901
Newport LLC
(2) $ 892,500
2/1/2012
Taafca of Cash to Costa Mesa
Transfer f.ash for funds legally restricted
This enforceable obligation was reported on
Housing Authority
to fruit nfludable tanningundera
ROPS 1, Lfne 9.
Neighborhood Solaili uca Program
Total amount aflow and moderate income
Subreclpienl Contract Services and
housing fiords specified by this agreement is
Loan Agreement by and between City of
in Section 5.8.2 ofthe agreement.
Fullerton, City of Costa Mesa, City of La
hlabm and MHC NSP LLC.
(3) $ 125,028
2/1/2012
Transfer of Loan Receivable of
Transfer Housing Assets to the Cast.
Health and Safety Code Section 34176(a)(2)
$6,338,244 to the Cast. Mrs.
Mean housing Authority
Property mansfeured and reported on
Housing Authority
Housing Asset List filed with the Department
(4) $ 6,338,244
of Finance
(1) The value o£real property was not recorded in the accounting records of the former redw eloprocut agency
as c0sm ny 31, 2012.
(2) The $892,500 h'ansfured by the former Low aunt Moderate Income Houeing Ford exoceded the Dash
encumbrance stipulated in the Affordable Hoaxing Agreement by $500.
(3) In February 2012, the Lknaing Aadmityased this cash balance to find a lona in the amount ot$115,250
and other administration costs related to the lose.
On Animst 31, 2012, the loan was disallowed by the California Department of Finance during their review of
housing asset transfers.
(4) One loan in the amount of$66,000 was disallowed by the California Department of Finance drying their
review ofhouning asset transfers. The Housing Asset List reported loans receivable of$6,558,493
which included the NSP loan in item (3) and deferred interest receivable. The Costa Mesa Housing
Authority wrote off$1,155,049 ofimpaired loans. The outstanding loans receivable is $5,183,195
at Jane 30, 2012.
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME MOUSING FUND
LISTING OF ASSETS
As of June 30, 2012
ASSETS
Cash and investments
12
SCHE^DULE3
$ 1,677,216
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
CALCULATION OF UNRESTRICTED ASSET BALANCE FOR RETENTION
June 30, 2012
Vendor/Payee Purpose of Transactions
City of Fullerton Refunding of Neighborhood Stabilization
Program Advances
Keyser Marston Consultant services related to compliance
with affordable housing covenants
Keyser Marston Consultant services related to Successor
Agency compliance and monitoring
Stradling Yocca Carlson Legal set -vices related to enforcement with
& Rauth affordable housing covenants
Stradling Yocca Carlson Consultant services related to Successor
& Rauth Agency compliance and monitoring
13
SCHEDULE4
Enforceable Obligation/Other Legal
Amount Requirement Supporting Retention
$ 123,172 Reported on ROPS 1, Line 9
7,560 Reported on ROPS 1, Line 9 ($280)
and 13 ($7,280)
560 Reported on ROPS 1, Line 8
2,153 Reported on ROPS 1, Line 9 ($207)
and 10 ($1,946)
7,095 Reported on ROPS 1, Line 8
$ 140,540
SCHEDULE 5
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
SCHEDULE OF CASH BALANCES FOR RETEN'T'ION TO MEET OBLIGATIONS IN FISCAL YEAR 2012-2013
Enforceable Obligation/
Description of Other Legal Requirement
Transactions Purpose of Transactions Amount Supporting Retention
Cash balances needed to be retained for the funding of future enforceable obligations:
Keyser Marston
Consultant services related to compliance
with affordable housing covenants
Keyser Marston
Consultant services related to compliance
with affordable housing covenants
Keyser Marston
Consultant services related to compliance
with affordable housing covenants
Keyser Marston
Consultant services related to compliance
with affordable housing covenants
Keyser Marston
Consultant services related to compliance
with affordable housing covenants
Keyser Marston
Consultant services related to compliance
with affordable housing covenants
Keyser Marston
Consultant services related to compliance
with affordable housing covenants
Stradling Yocca
Carlson
Legal services related to enforcement with
& Rauth
affordable housing covenants.
Stradling Yocca
Carlson
Legal services related to enforcement with
& Routh
affordable housing covenants.
Stradling Yocca
Carlson
Legal services related to enforcement with
& Rauth
affordable ]rousing covenants.
Stradling Yocca
Carlson
Legal services related to enforcement with
& Rauth
affordable housing covenants.
Stradling Yocca
Carlson
Legal services related to enforcement with
& Rauth
affordable housing covenants.
Stradling Yocca
Carlson
Legal services related to enforcement with
& Routh
affordable housing covenants.
Stradling Yocca
Carlson
Legal services related to enforcement with
& Rauth
affordable housing covenants.
Stradling Yocca
Carlson
Legal services related to enforcement with
& Rauth
affordable housing covenants.
14
$ 250 Reported on BOPS 2, line 5
1,330 Reported on ROPS 2, line 6
355 Reported on ROPS 2, line 8
6,758 Reported on ROPS 2, line 9
4,497 Reported on ROPS 2, line 10
2,380 Reported on ROPS 2, line I
250 Reported on ROPS 2, line 12
250 Reported on ROPS 2, line 5
1,668 Reported on ROPS 2, line 6
1,952 Reported on ROPS 2, line 7
3,455 Reported on ROPS 2, line 8
5,943 Reported on ROPS 2, line 9
250 Reported on ROPS 2, line 10
2,768 Reported on ROPS 2, line 11
I� W
250 Reported on ROPS 2, line 12
SCHEDULES
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
SCHEDULE OF CASH BALANCES FOR RETENTION TO MEET OBLIGATIONS IN FISCAL YEAR 2012-2013
Description of
Transactions
Enforceable Obligation/
Other Legal Requirement
Purpose of Transactions Amount Supporting Retention
Stradling Yocca Carlson Legal services related to enforcement with
& Rauth affordable housing covenants.
Stradling Yocca Carlson Legal services related to enforcement with
& Rauth affordable housing covenants.
Total cash balances needed to be retained for
the funding of enforceable obligations
15
750 Reported on ROPS 2, line 13
2,650 Reported on ROPS 2, line 14
$ 35,756
SCHEDULE6
SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
SUMMARY OF BALANCE AVAILABLE FOR ALLOCATION TO AFFECTED TAXING AGENCIES
As of Tune 30, 2012
Total amount of assets held by the Successor Agency as of .Tune 30, 2012 - (Procedure 5) $ 1,677,216
Less assets legally restricted for uses specified by debt covenants, grant restrictions,
or restrictions imposed by other governments - (Procedure 6) -
Less assets that are not cash or cash equivalents (e.g., physical assets) - (Procedure 7) -
Less balances that are legally restricted for the funding of an enforceable obligation
(net of projected annual revenues available to fund those obligations) - (Procedure 8) (140,540)
Less balances needed to satisfy ROPS for the 2012-13 fiscal year - (Procedure 9) (35,756)
Less the amount of payments made on July 12, 2012 to the County Auditor -Controller
as directed by the California Department of Finance
Add the amount of any assets transferred to the City for which an enforceable
obligation with a third party requiring such transfer and obligating the use of
the transferred assets did not exist - (Procedures 2 and 3) -
Amount to be remitted to County for disbursement to taxing agencies $ 1,500,920
16
ATTACHMENT 2
to Successor Agency Resolution No. 12-63
Recognized Obligation Payment Schedule (ROPS)
for the Period January 1, 2013 to June 30, 2013
Successor Agency Contact Information
Name of Successor Agency:
County:
Primary Contact Name:
Primary Contact Title:
Address
Contact Phone Number:
Contact E -Mail Address:
Secondary Contact Name:
Secondary Contact Title:
Secondary Contact Phone Number:
Secondary Contact E -Mail Address:
Costa Mesa Redevelopment Agency
Orange County
Colleen O'Donoghue
Assistant Finance Director
77 Fair Drive, Costa Mesa, CA 92626
714-754-5219
col leen.odonoohue(ccostamesaca aov
Bobby Young
Finance & I.T. Director
714-754-5243
bobby. you nana costamesaca.aov
SUMMARY OF RECOGNIZED OBLIGATION PAYMENT SCHEDULE
Filed for the January 1, 2013 to June 30, 2013 Period
Name of Successor Agency: Costa Mesa Redevelopment Agency
Certification of Oversight Board Chairman: Jim Righeimer Chair
Pursuant to Section 34177(m) of the Health and Safety code, Name Title
I hereby certify that the above is a true and accurate Recognized
Obligation Payment Schedule for the above named agency.
Total Outstanding
Debt or Obligation
Outstanding Debt or Obligation
$
21,081,991
Current Period Outstanding Debt or Obligation
Six -Month Total
A
B
C
D
Available Revenues Other Than Anticipated RPTTF Funding
Enforceable Obligations Funded with RPTTF
Administrative Allowance Funded with RPTTF
Total RPTTF Funded B + C = D
0
458,338
125,000
583,338
E
F
Total Current Period Outstanding Debt or Obligation (A + B + C = E) Should be same amount as BOPS form six-month total
Enter Total Six -Month Anticipated RPTTF Funding
Variance (D - E = F) Maximum RPTTF Allowable should not exceed Total Anticipated RPTTF Funding
$
583,338
583,338
$
-
Prior Period (January 1, 2012 through June 30, 2012) Estimated vs. Actual Payments (as required in HSC section 34186 (a))
G
H
1
J
Enter Estimated Obligations Funded by RPTTF (Should be the same amount as RPTTF approved by Finance, including admin allowance)
Enter Actual Obligations Paid with RPTTF
Enter Actual Administrative Expenses Paid with RPTTF
Adjustment to Redevelopment Obligation Retirement Fund G - H + 1) = J)
849,794
600,738
250,000
944)
K
Adjustment to RPTTF
$
584,282.00
Certification of Oversight Board Chairman: Jim Righeimer Chair
Pursuant to Section 34177(m) of the Health and Safety code, Name Title
I hereby certify that the above is a true and accurate Recognized
Obligation Payment Schedule for the above named agency.
RECOGN-OBL- - -(-fl)
Name Of Successor Agency: COSTA MESA REDEVELOPMENT AGENCY
County: DOWNTOWN PROJECTAREA
Pursuant to Health and Safety Code section 34186 (a)
PRIOR PERIOD ESTIMATED OBLIGATIONS vs. ACTUAL PAYMENTS
RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 1)
January 1, 2012. through June 30, 2012
PagdFbrm Line Project Name/ Debt Obligation
Payee
Descripbon/Project Scope
LMIHF Bond Pmceeds Reserve Balance Admin Allowance
RPTTF
Other
Project Area Estimate Actual Estimate Actual Estimate Actual Estmate Actual Estimate
Actual Estimate Actual
Grand Total
$ $ - $ $ - $ 5 - $ 250,000 $ 252,330
$ 599,794 $
600,]38 $ 5
Pat ROPI
1 TAB Rofumfn, 2003
wmkof New York
sonde, of nor rwMwusi m.
Dwunfiwn
78,088
78,088
Comm, for coesullcg services
Bam,. New York
FtalA mServisa-Annual
Downtown
Cent. forwrwutt'
Bankof Nem York
Anno eCawweer- eve 5 am
Downiwwn
Ctmaaforwrsutt'ngservices
Harrell&Company Advisor LLC
PGwnfirrrirmDiscloorreReeod-Annual
Downtown
2.000
1.875
P 1ROD1
2 Ccumy Pmpedy Tax Admin Fee
ccurlymorang.
mage, fierAdmInmieflnm tax system
Downtown
20,000
20,000
P91 ROP 1
3 German ter Comman, nen ws
Mae, Hoffman McCann
Annual Auadsenices
Downtown
2,134
2,134
P1ROP 1
4) Pmmsmry Nme Payade
cq of Costa Mesa
O'i`ul Loan to esdbfah RDA
Downtown
1 ROPI
9ewWexn
a
-AdmiN"` H1
HaysacMamffin
Admin's4aHveeasS(ocHiiueamFrevw�u rewmwa
Dewatowe
1 ROP1
6 Lan horn CDBG Fund
or, of Costa Masa-0OBG FUM
Loan tom CDBG ter mm., mood hcRO"
Dowamon
Do 1 ROP I
n Dai& Field Li Ming Pm'ea
DesrWest
Des'n wore on Oavm Fndd Proem
Downforvn
2,700
2.700
Gm.. comma
R& M Elecdal cortmorm
Electrical work to install li Min
Downtown
19,460
20,259
P1ROP 1
8) cu000ss-A,eroy Foetation Gorsutt'ug
Sbad5rg Yoca Cadson&Rauh
Suceesmr Aww,y Fmmmbn Le l Cameron
Downtown
50,300
62703
Jong&Ma
Suoomwor Agerno, Formation Le i consumer
D.town
8.168
K er Marston
Successor Agem, Formation Commuftinn
Downtown
31,300
18,674
P1ROP 1
9 Neg... m.me amgmm
Mancy Hmmmml City of Fullerton
Af ed.N. h,moinn roject comlionce w/covenants
Downtown
321,316
314.200
Atlmin Gmm- ComoNrg
Keyser Maroon
Financial Consultcompliance wih wvenants
Downtown
16,040
26,250
Admin Coatte I
Shatlli Yowa Cadson&Rauh
Contract Atiom ocmumocement of covenants
Downtown
21200
24,619
1 ROP1
10 1901 Newmmt Hosing Protea
FaOdd Romwouffal
Assistance for bwmod Mug m'af
Domn[own
Admin Costs cocoon,
KeyserMarston
Finanaal Consulting r m liance with covenants
Downtown
1.330
2.380
Atlmin Cos. L al
Stedling Ywa Cadwrd Rauh
Conn At m semi m:enf rot entMcovenams
Downtown
1,668
10,081
P1ROP 1
11 no,7—Home e,ga Pmgmmt B)
Deferred loans W FHB for purchase of a home
Downtown
79
Admin Costs -Legal
Shadling Yooa Carson& Rauh
GmAracl Attorney services r¢:enforeemant of covenantr
Downtown
1,952
P 1ROP1
12 Single twmLy Relabidabon Pro mm
Deemed bans m twmeowneror inn mvenems
Davntcwn
736
Admin Corn-umme,1ng
Keyser Marsbn
Financial Consultin ra compliance with covenant
Downtown
355
Admin Grow, Lora]
Street Yocca cerfoo &Rauh
Contract Attorney services re'wfiencenowt of covenants
Downtown
3.455
P 1ROP1
13 CMc Center Barco
8Umm MuRFfamily Romer Pm'st
Downtown
AdminC Coreutg
Keyser Marson
Financial Conc,tiffing m compliance with covenants
Downtown
6,757
7,280
Admin Cmw, Legal
ahatlG Yocca CaAe,a&RaNb
Contract Attome,y services ocencocement of covenants
Downtown
5,944
1 ]98
Dot ROPI
14 SL JoWs Manor
36 Unit Senior Rental Proem
Downtown
Atlmin cost- Coruna,
Ke er Mamror
Financial Couceffing re, wanpliance with covenants
Downtown
4.497
AdminL Legal
Smefirg Ywes CarmM Ramh
Contact Afterne, swmcea re enfoxament of Covenants
Downtown
250
P1ROP I
1 Cold Mesa YDage'SRCr
WUmr Senior Reota Pmect
D.Anwn
Admin Doss Gmwmirg
Keyseremooe
Financial Conoulfing mcompliance with covenants
Downtown
1
2.380
540
Admin Cosh Legal
Shading Yocm Carmue Ramo
Contract Aftomw serve ea re eeforcement M Covenanl5
Downtown
2,768
8
Del ROPI
16 Cold Mww Famly V10a e(Sbap JB
Ground Lease Of 70 Unit MUN-fam0 Rental Proeat
Downtown
300
Abmin CusS-Cmvaunng
Keyser Marston
Financial Commifing R. compliance with Covedants
D.town
250
Admin Cos6L I
Shadom Yoca Carknn&Rauh
Contract Atemne, sormces econformemort of Covenants
Downtown
250
iPgl ROP1 I
Ddened Imre to amrer of a ren-fam5 rope we
Downtown
Admin Coss -Legal
Smefl,Yoe-a Cadson&Raub
Contract Afforme, sereces r comannamenf of covenanta
Downtown
750
IP,l HOP
18 HnG for Humardy(5 wit)
UMe reU, Wool to Deveblser
Downrown
Admin Cost -Legal
StrzdG,g Yovv Carlson&Raub
Cor ct At rn aeNowmeMor menf Ofcovenant5
DONntONT
2.650
3 ROPI 1
1) 1 Admin Costo
Payrolland Oher Admin Costs
Downtcwn
Peel Line Project Name/ Debt Obligation
Payee
Description/Pro'ect Scope
Pmiecl Area
LMIHF Bond Proceeds Reserve Balance Admin Allowance RPT F Other
Estimate Actual Estimate Actual Estimate Actual E.firl AcWal Estimate Actual Estimate Actual
Sumesmr ager P n net amentlil
C of Cosa Mese
189,056
196,6&1
Cev Servims nlreslw
C of Codd Mesa
Sucwswragenry Personnel ExLentllWres
E MAM se—e,
C of Cuss Mea
Su�swrAgairy Perwnnel Fxl»n4lr—
n
Neigh. Impo—mt Manager
C of Costa Mesa
Successoragmry Personnel Fiye,dNu
n
ManagemmtAnal
C ofC,Mesa
Suczssor PersonnelE ,dil—
n
ry6rugemIltmalW
C' 0f Costam-e
Su¢esmr Monty Perwnnel EmentliWres
n
JD��n
M16nagememanal
C Cf Cosa Maw
suv».�r gPamrmd FayeMlNms
n3
ROP1 2 Cmmaeminegan.e Fiyenalwrea
C ofeoeleMesa
60.944
53.592
C ofe Mesa
rg 5ervlces
IIT
Servl—
C of CCSfa Mesa
IT Servi¢s
llC
of Costa MianConsul4nSeMws
C ofCusM Mata
capn Sem
n
CenPalS--
C of CoSla Mesa
Cmaal Servissw
DowntINin
Postager,,Me
CIN of CasA Mesa
Pm eCharges
DONT n
a This rme isnoten a Icmbk .1,1-
d..ed by HSC— c- 361110. Nol agpm 1, .1 as IeB .c. ROPS eryenElNre.
y