2012 10 10 OB0 15
Oversight Board agendas and staff
reports are now available on the City's
web page: www.la-auinta.org
OVERSIGHT BOARD
OF THE SUCCESSOR AGENCY TO
LA QUINTA REDEVELOPMENT AGENCY
AGENDA
CITY HALL STUDY SESSION ROOM
78-495 Calle Tampico, La O.uinta
SPECIAL MEETING on WEDNESDAY, OCTOBER 10, 2012 AT 2:00 P.M.
CALL TO ORDER
1. Roll Call
2. Pledge of Allegiance
PUBLIC COMMENT
At this time members of the public may address the Board on any matter not listed
on the agenda. Please complete a "Request to Speak" form and limit your
comments to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. Approval of the minutes of.October 3, 2012
CONSENT CALENDAR
1 . Adoption of a Resolution Approving the Low -Moderate Income Housing Fund
Due Diligence Review Pursuant to AB 1484
ADJOURNMENT
The next meeting of the Oversight Board will be a special meeting to be held on
November 28, 2012, commencing at 2:00 p.m.; the next regular meeting of the
Oversight Board will be held on December 5, 2012 at 2:00 p.m. at the City Hall
Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Lori Lafond, Oversight Board Secretary, of the City of La Quinta, do hereby
declare that the foregoing Agenda for the Oversight Board of the Successor
Agency to La Quinta Redevelopment Agency special meeting was posted on the
outside entry to the Council Chambers at 78-495 Calle Tampico, and the bulletin
boards at 78-630 Highway 1 1 1, and the La Quinta Cove Post Office at 51-321
Avenida Bermudas, on October 5, 2012.
DATED: October 5, 2012
LORI LAFOND, Ov s ht Board Secretary
City of La Quinta, California
Public Notices
The La Quinta City Study Session Room is handicapped accessible. If special equipment
is needed for the hearing impaired, please call the City Clerk's office at 777-7123,
twenty-four (24) hours in advance of the meeting and accommodations will be made.
If special electronic equipment is needed to make presentations to the Oversight Board,
arrangements should be made in advance by contacting the City Clerk's office at 777-
7123. A one (1) week notice is required.
If background material is to be presented to the Board during an Oversight Board meeting,
please be advised that ten (10) copies of all documents, exhibits, etc., must be supplied
to the Oversight Board Secretary for distribution. It is requested that this take place prior
to the beginning of the meeting.
Any writings or documents provided to a majority of the Oversight Board regarding any
item(s) on this agenda will be made available for public inspection at the City Clerk's
counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253,
during normal business hours.
OVERSIGHT BOARD AGENDA 2 OCTOBER 10, 2012
OVERSIGHT BOARD OF THE SUCCESSOR AGENCY
TO LA QUINTA REDEVELOPMENT AGENCY
ACTION MINUTES
Regular Meeting
WEDNESDAY, OCTOBER 3, 2012 at 2:00 P.M.
ROLL CALL - Present: Board Members Marshall,.Maysels, McDaniel,
Nelson, Osborne and'Chairperson Pena
Absent: Board Member Ellis -Board voted unanimously to
excuse Board Member Ellis
CONFIRMATION OF AGENDA - Confirmed with one addition from staff regarding
future meeting dates.
APPROVAL OF MINUTES
1. A motion was made by Board Members. Marshall/Nelson to approve the
minutes from the August 8, 20,12 Oversight Board meeting as submitted.
Motion carried unanimously.
PUBLIC COMMENT SESSION'
1. Receive Public Comments Regerding'Low-Moderate Income Housing Fund
Due Diligence Review.Pursuant to AB 1484
No public comment.
BUSINESS ITEMS
1. Adoption of a,,Resolution Approving the Successor Agency Administrative
Budget for January 2013 through June 2013
A motion was made by Nelson/McDaniel to adopt Resolution No. OB 2012-
015, a Resolution of the Oversight Board of the Successor Agency to La
Quinta Redevelopment Agency Adopting the Successor Agency
Administrative Budget for January 2013 through June 2013.
RESOLUTION NO. OB 2012-015
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY APPROVING THE SUCCESSOR AGENCY
ADMINISTRATIVE BUDGET FOR THE PERIOD OF
JANUARY 2013 THROUGH JUNE 2013
Motion carried 6 ayes, 0 nays, 1 absent.
FUTURE MEETING DATES
Staff indicated that the October 17, 2012, November 7, 2012and November 215L
meetings will be cancelled. However, the Oversight Board will need, to hold a
special meeting on Wednesday, October 10, 2012 at 2:00 p.m. to approve the
Low -Moderate Income Housing Fund Due Diligence Review Pursuant to AB 1484.
ADJOURNMENT - 2:18 p.m.
A motion was made by Board'Members Maysels/Osborne to adjourn. Motion
OVERSIGHT BOARD ACTION MINUTES 2 OCOTBER 3, 2012
OVERSIGHT BOARD MEETING DATE: October 10, 2012 AGENDA CATEGORY:
BUSINESS SESSION: _
ITEM TITLE: Adoption of a Resolution Approving the n '
Low -Moderate Income Housing Fund Due Diligence CONSENT CALENDAR:
Review Pursuant to AB 1484 STUDY SESSION:
PUBLIC HEARING:
RECOMMENDED ACTION:
Adopt a resolution reviewing, approving, and transmitting the determination of low
and moderate income housing fund cash and cash equivalents available for
disbursement pursuant to Health and Safety Code Section 34179.5
EXECUTIVE SUMMARY:
The Oversight Board held the required public comment session on October 3,
2012; no public comment was received. The County Auditor -Controller had no
additional input or opinion. If the Oversight Board elects to approve the Due
Diligence Review ("DDR") today, staff will inform the Department of Finance
("DOF"). The DOF is required to provide its final determination no later than
November 9, 2012.
FISCAL IMPACT:
None for this action. Based on the DDR, there are no unobligated housing funds
available for distribution to taxing agencies. However, this could change based
upon review and input from the DOF.
BACKGROUND/ANALYSIS:
Pursuant to AB 1484, the Successor Agency to La Quinta Redevelopment Agency
hired a licensed accountant to conduct a due diligence review of the housing and
non -housing funds to determine the amount of unobligated funds available for
distribution to taxing agencies. The housing DDR was completed by October 1,
2012 (Attachment 1); the non -housing DDR will be completed prior to December 1,
2012.
As required by AB 1484, the Successor Agency transmitted the completed housing
fund DDR to the county administrative officer, the county auditor -controller, and
the DOF. The Successor Agency must incorporate any comments/input from the
county auditor -controller ("CAC"). The CAC informed staff that they have no input
or opinion. An email from the Riverside CAC office is included as Attachment 2.
After the Oversight Board approves the DDR, the DOF must make its final
determination by November 9, 2012; staff will keep the Oversight Board informed.
Respectfully submitted,
Debbie Powell
Economic Development/Housing Manager
Attachments: 1 . Low -Moderate Housing Fund Due Diligence Review
2. Email from Riverside County Auditor -Controller's Office
2
ATTACHMENT
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Successor Agency of the Former
La Quinta Redevelopment Agency
Due Diligence Review
of the Low and Moderate Income Housing Fund
Pursuant to Sections 34179.5(c)(1) through 34179.5(c)(3)
and Sections 34179.5(c)(5) through 34179.5(c)(6)
of Assembly Bill No. 1484 of 2012
Successor Agency of the Former
La Quints Redevelopment Agency
Due Diligence Review
of the Low and Moderate Income Housing Fund
Pursuant to Sections 34179.5(c)(1) through 34179.5(c)(3)
and Sections 34179.5(c)(5) through 34179.5(c)(6)
of Assembly Bill No. 1484 of 2012
LS0000
0000
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CERTIFIED PUBLIC ACCOUNTANTS
• Brandon W Burrows, CPA
• David E. Hale, CPA, CFP
A Prolessioml Corpora Non
• Donald G. Slater, CPA
• Richard K, Kikuchi, CPA
• Susan F. Matz, CPA
• Shelly K. Jackley, CPA
• Bryan S. Gruber, CPA
• Deborah A. Harper, CPA
INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING
AGREED -UPON PROCEDURES
To the Successor Agency
of the Former La Quinta Redevelopment Agency
City of La Quinta, California
We have performed the procedures enumerated in Attachment A for the Low and Moderate Housing Fund,
which were agreed to by the California State Controller's Office and the State of California Department of
Finance (State Agencies) solely to assist you in ensuring that the dissolved redevelopment agency is
complying with Assembly Bill 1484, Chapter 26, Section 17's amendment to health and safety code 34179.5.
This agreed -upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. Management of the successor agency
is responsible for providing all the information obtained in performing these procedures. The sufficiency of
these procedures is solely the responsibility of those parties specified in the report. Consequently, we make
no representations regarding the sufficiency of the procedures described below either for the purpose for
which this report has been requested or for any other purpose.
As stated above, the scope of this engagement was limited to performing the procedures identified in
Attachment A, which specified the "List of Procedures for the Due Diligence Review" obtained from the
California Department of Finance Website.
The results of the procedures performed are identified in Attachment Bt through B11
We were not engaged to and did not conduct an audit, the objective of which would be the expression of a
certified opinion as to the appropriateness of the results of the procedures performed. 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 the Successor Agency.
This report is intended solely for the information and use of the Successor Agency Oversight Board, the
Successor Agency and the applicable Stale Agencies, and is not intended to be, and should not be used by
anyone other than these specified parties. This restriction is not intended to limit distribution of this report,
which is a matter of public record.
Brea, California
September 23, 2012
Lance, Sall 8 Lunghard, LLP 203 North Brea Boulevard • Suite 203 • Brea, CA 92821 TEL: 714.672.0022 • Fax: 714.672.0331 . www.ISICI SS.COM
Orange County • Temecula Valley • Silicon Valley
SCHEDULE A
List of Procedures for Due Diligence Review of the Low and Moderate Housing Fund
1. Obtain from the Successor Agency a listing of all assets that were transferred from the former
redevelopment agencyto 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.
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 countythat 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.
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:
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 forthe 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.
SCHEDULE A (Continued)
List of Procedures for Due Diligence Review for the Low and Moderate Housing Fund (Continued)
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
controllers 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.
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 listing should be
attached as an exhibit to the appropriate AUP report.
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.
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).
SCHEDULE A (Continued)
List of Procedures for Due Diligence Review for the Low and Moderate Housing Fund (Continued)
iii. Obtain from the Successor Agency a copy of the grant agreement that sets forth the restriction
pertaining to these balances. Note in the ALP 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:
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 ALP 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)asanexhibit tothe AUPreport
.
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.
7. Perform the following:
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.
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.
8. Perform the following:
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.
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.
SCHEDULE A (Continued)
List of Procedures for Due Diligence Review for the Low and Moderate Housing Fund (Continued)
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 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 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:
Compare the enforceable obligations to those that were approved bythe Califomia 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 paybond 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.
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, 6, 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.
SCHEDULE A (Continued)
List of Procedures for Due Diligence Review for the Low and Moderate Housing Fund (Continued)
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.
ii. Reduce the amount of total resources available bythe amount forecasted forthe 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.
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.
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 tothe County Auditor -Controller on July 12, 2012 as directed bythe 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).
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 property identified in the AUP report and its related exhibits. Management's refusal to sign the
representation letter should be noted in the ALP report as required by attestation standards.
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18
ATTACHMENT B11
City as Successor Agency
To The La Quinta Redevelopment Agency
P.O. BOX 1504
LA QUINTA, CALIFORNIA 92247-1504 (760) 777-7000
78-495 CALLG TAMPICO FAX (760) 777-7101
LA QUINTA, CALIFORNIA 92253
September 25, 2012
Lance, Soil & Lunghard, LLP
Certified Public Accountants
203 North Brea Boulevard, Suite 203
Brea, CA 92821-4056
We are providing this letter in connection with your performance of the Due Diligence Review of the Low
and Moderate Housing Fund in accordance with Assembly Bill 1484 for the Successor Agency of the
former La Quinta Redevelopment Agency. We confirm that we are responsible for the complete and fair
presentation of the previously mentioned review in conformity with the listed procedures of the Assembly
Bill 1484 Due Diligence Review as published by the State Department of Finance on August 27, 2012.
We are also responsible for adopting sound accounting policies, establishing and maintaining effective
internal control over financial reporting, and preventing and detecting fraud.
We confirm, to the best of our knowledge and belief, as of the date of this letter, the following
representations made to you during your review:
1. We have made available to you:
a. In accordance with 34179.5(c)(1), the dollar value of all assets transferred from the former
redevelopment agency to the successor agency on or about February 1, 2012.
b. In accordance with 34179.5(c)(2), the dollar value of all 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. We have also provided the documentation of any enforceable
obligation that required the transfer.
c. In accordance with 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. We have
also provided documentation of any enforceable obligation that required the transfer.
d. In accordance with 34179.5(c)(4), the expenditure and revenue accounting information and have
identified 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.
e. In accordance with 34179.5(c)(5), 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.
19
Lance, Soll & Lunghard, LLP
September 25, 2012
Page 2
f. In accordance with 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.
g. In accordance with 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.
h. In accordance with 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, we have
provided 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.
i. In accordance with 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.
2. There are no material transactions that have not been properly recorded in the accounting records
underlying this Due Diligence Review.
3. Management is not aware of any transfers (as defined by Section 34179.5) from either the former
Redevelopment Agency or the Successor Agency to the City, other agencies or private parties for the
period January 1, 2011 through June 30, 2012 that have not been identified in this report and related
exhibits.
4. We acknowledge our responsibility for the design and implementation of programs and controls to
prevent and detect fraud.
5. We have no knowledge of any fraud or suspected fraud affecting this Due Diligence Review involving:
a. Management,
b. Employees who have significant roles in internal control, or
c. Others where the fraud could have a material effect on this Due Diligence Review.
6. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in
communications from employees, former employees, analysts, regulators, or others.
7. When applicable, we have taken timely and appropriate steps to remedy fraud, illegal acts, violations
of provisions of contracts or grant agreements, or abuse that you have reported to us.
8. We have identified to you any previous audits, attestation engagements, performance audits, state
controller reports or other studies related to the objectives of this Due Diligence Review and whether
related recommendations have been implemented.
9. The Successor Agency of the former La Quinta Redevelopment Agency has no plans or intentions
that may materially affect the carrying value or classification of assets, liabilities, or fund equity.
10. We are responsible for compliance with the laws, regulations, provisions of contracts and grant
agreements applicable to us, and all provisions related to the dissolution of the Redevelopment
Agency in accordance with ABx1 26 and AB 1484,
20
Lance, Soll & Lunghar.d, LLP
September 25, 2012
Page 3
11. There are no known violations of:
a. Laws and regulations,
b. Provisions of contracts and grant agreements,
c. Provisions related to the dissolution of the Redevelopment Agency in ABx1 26 and AB 1484
whose effects should be considered for disclosure in this Due Diligence Review.
12. All bank accounts and investments associated with this review have been properly reflected in the
general ledger accounting records.
13. No events, including instances of noncompliance, have occurred subsequent to the performance of
this Due Diligence Review and through the date of this letter that would require adjustment to or
disclosure in the sforemenfioDiO Due Diligence Review.
Sig
ek
Signed:
Title: Executive Director Title:
21
ATTAG-LAMENT 2
Deborah Powell
Subject: FW: La Quinta Housing Due Diligence Review
From: Elias, Pamela rmailto:PeliasCalco.riverside.ca.usl
Sent: Thursday, October 04, 2012 5:44 PM
To: Deborah Powell
Cc: Zeeb, Donna; Baechel, Jennifer
Subject: RE: La Quinta Housing Due Diligence Review
At this time we do not have any opinion.
Pam Elias
Chief Accountant, Property Tax Division
Riverside County Auditor -Controller
Mail Stop 1050
Tel (951) 955-0320 / Fax (951) 955-0338 Cell (951) 312-1587
pelias@co.riverside.ca.us
www. a u d i t o rc o n t ro I l e r. o re
Our Vision: To exceed expectations through initiative, teamwork and leadership.
PLEASE NOTE: The County Administrative Center is closed every Friday per order of the Board of Supervisors. Business
hours for the Auditor -Controller's Office are Monday through Thursday, 7:30 a.m. to 5:30 p.m.
"This email message, including any attachments, is intended for the sole viewing and use of the individual or entity to
which it is addressed, and may contain confidential and privileged information, which is prohibited from disclosure. Any
unauthorized review, use, disclosure, distribution, or the taking of any action in reliance on the information contained in
this email, including attachments, is strictly prohibited. If you are not the intended recipient, you are hereby notified
that any dissemination or copy of this message, or any attachments, is strictly prohibited. If you have received a copy of
this email in error, please notify the sender by reply email immediately, and remove all copies of the original message,
including attachments, from your computer."
From: Deborah Powell[mailto:dpowellCalla-quinta.orol
Sent: Wednesday, October 03, 2012 3:34 PM
To: Elias, Pamela
Subject: La Quinta Housing Due Diligence Review
Hello Pam —
I had emailed our Housing Fund Due Diligence Review to you last Thursday. Do you know if your office will have any
feedback? Our Oversight Board is scheduled to approve it next Wednesday, Oct. 10`h.
Thank you so much!
Debbie
Debbie Powell, Economic Development/Housing Manager
City Manager's Office
RESOLUTION NO. OB 2012-016
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
CITY AS SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY REVIEWING, APPROVING,
AND TRANSMITTING THE DETERMINATION OF LOW
AND MODERATE INCOME HOUSING FUND CASH AND
CASH EQUIVALENTS AVAILABLE FOR DISBURSEMENT
PURSUANT TO HEALTH AND SAFETY, CODE SECTION
34179.5
WHEREAS, the Oversight Board of the City as Successor Agency to the La
Quinta Redevelopment Agency ("Oversight Board" or "Successor Agency," as
applicable) has been established to direct the Successor Agency to take certain actions
to wind down the affairs of the former La Quinta Redevelopment Agency ("Agency") in
accordance with the California Health and Safety Code; and
WHEREAS, the Agency was engaged in activities to execute and implement
the Project Area No.1 Redevelopment Plan and the Project Area No.2
Redevelopment Plan (collectively, the "Redevelopment Plans") pursuant to the
provisions of the California Community Redevelopment Law (Health and Safety
Code § 33000, at seq.) ("CRL"); and
WHEREAS, as part of the 2011-12 State budget bill, the California
Legislature enacted and the Governor signed, ABx1 26 requiring that each
redevelopment agency be dissolved; and
WHEREAS, an action challenging the constitutionality of ABx1 26 and
companion bill ABx1 27 was filed in the California Supreme Court by the California
Redevelopment Association, the League of California Cities, and two individual
cities; and
WHEREAS, on December 29, 2011, the Court upheld ABx1 26 and struck
down as unconstitutional ABx1 27; and
WHEREAS Health and Safety Code Section 34179.5 requires each successor
agency to employ a licensed accountant to conduct a due diligence review to
determine the unobligated balances available for transfer to taxing entities; and
WHEREAS, Health and Safety Code Section 34179.6 requires that each
successor agency provide to the oversight board, county auditor -controller,
Controller, and California Department of Finance ("DOF") the result of the due
diligence review for the Low and Moderate Income Housing Fund, and specifically
Resolution No. OB 2012-016
Adoption of LMIHF Due Diligence Review
Adopted: October 10, 2012
Page 2 of 3
the amount of cash and cash equivalents determined to be available for allocation
to taxing entities (collectively, the "LMIHF DDR Review"), by October 1, 2012; and
WHEREAS, Health and Safety Code Section 34179.6 further requires that
each oversight board convene a public comment session upon receipt of the LMIHF
DDR Review, and that not less than five business days after the public comment
session, but not later than October 15, 2012, the oversight board review, approve,
and transmit to the DOF and county auditor -controller the LMIHF DDR Review; and
WHEREAS, the Successor Agency has completed the LMIHF DDR Review,
and has provided the result to the oversight board, county auditor -controller,
Controller, and DOF, and on October 3, 2012, the Oversight Board held a public
comment session on the LMIHF DDR Review; and
WHEREAS, the Oversight Board has reviewed the LMIHF DDR Review, and
has considered any comments received from members of the public at the public
comment session, and any opinions offered by the county auditor -controller; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution
have occurred.
NOW, THEREFORE, BE IT RESOLVED that the Oversight Board of City as
Successor Agency to the La Quinta Redevelopment Agency, does hereby resolve as
follows:
Section 1. Recitals. The Recitals set forth above are true and correct and
incorporated herein by reference.
Section 2. Approval of LMIHF DDR Review. The Oversight Board hereby
approves the LMIHF DDR Review, a copy of which is on file with the Oversight
Board Secretary.
Section 3. Transmittal. The Oversight Board Secretary is hereby directed to
transmit the LMIHF DDR Review to the DOF and the county auditor -controller.
Section 4. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this Resolution which can be given effect
without the invalid provision or application, and to this end the provisions of this
Resolution are severable. The Oversight Board hereby declares that it would have
adopted this Resolution irrespective of the invalidity of any particular portion
thereof.
Resolution No. OB 2012-016
Adoption of LMIHF Due Diligence Review
Adopted: October 10, 2012
Page 3 of 3
Section 5. Certification. The Oversight Board Secretary shall certify to the
adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight Board
of the City as Successor Agency to the La Quinta Redevelopment Agency held this
10t' day of October, 2012, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JOHN PENA, Chairperson
Oversight Board of the Successor Agency
to La Quinta Redevelopment Agency
ATTEST:
LORI LAFOND
Oversight Board Secretary