HomeMy WebLinkAboutOSB Resolution 2013-01 1/9/2013 Resolution No. 2013-01
Petaluma Oversight Board to the
Petaluma Community Development Successor Agency
RESOLUTION OF THE OVERSIGHT BOARD FORMED PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34179,APPROVING AND TRANSMITTING THE
NON-HOUSING FUND DUE DILIGENCE REVIEW PURSUANT TO HEALTH
AND SAFETY CODE SECTIONS 34179.5 AND 34179.6
WHEREAS, Assembly Bill ABx1 26 (ABx1 26) was enacted by the State Legislature
and signed by the Governor as of June 29, 2011; and,
WHEREAS, ABx1 26 dissolved redevelopment agencies, including the former
Petaluma Community Development Commission (PCDC), effective February 1, 2012; and, ,
WHEREAS, pursuant to California Health and Safety Code § 34173(d), the City of
Petaluma elected to serve as the successor agency to the PCDC by City Council Resolution
No. 2012-007 adopted on January 9, 2012, and has been serving in this capacity following
PCDC dissolution on February 1, 2012; and,
WHEREAS, pursuant to Assembly Bill 1484 enacted on June 27, 2012, the City
Council of Petaluma on August 6, 2012, established and acknowledged the "Petaluma
Community Development Successor Agency"(PCDSA) as the successor agency to the former
PCDC, separate and distinct from the City of Petaluma, and to provide for its governance;
and,
WHEREAS, California Health and Safety Code section §34179.5 requires each
successor agency to employ a licensed accountant, approved by the county auditor-
controller, to conduct a due diligence review to determine the unobligated balances in the
funds and accounts of its former redevelopment agency that are available for transfer to
taxing entities and to review, approve and transmit the due diligence review pursuant to
Health and Safety Code Section 34179.6; and,
WHEREAS, the PCDSA has contracted with Pun & McGeady, LLP, Certified Public
Accountants, to complete the due diligence review of the former PCDC Non- Housing Funds
by December 15, 2012; and,
WHEREAS, the Sonoma County Auditor-Controller has approved Pun & McGeady,
LLP for the purpose of undertaking such due diligence review; and,
WHEREAS, the Successor Agency reviewed and accepted the results of the due
diligence review on December 3, 2012 by Resolution 2012-05.
WHEREAS, AB 1484 requires that the Oversight Board hold a public comment
session at least five days prior to approving the due diligence review; and,
0513 Resolution No.2013-01 Pagel
WHEREAS, the Oversight Board noticed and conducted a meeting to hear public
comment on the due diligence review on December 19, 2012; and,
WHEREAS, the Oversight Board has reviewed the due diligence review and
considered options to make adjustments to certain amounts or retain specific assets; and,
WHEREAS, the Successor Agency has filed a lawsuit disputing the State Department
of Finance's determination to deny funding obligations of the PCDC for contacts related to
highway 101 upgrades; and,
WHEREAS, the Oversight Board has reviewed the writ petition filed by the
Successor Agency and has considered the arguments; and,
WHEREAS, the Oversight Board, under the authority provided by Health and Safety
Code Section 34179.6(c), finds that the available funds identified by the Non-housing Due
Diligence review should be retained until the pending litigation between the State and the
Successor Agency and the dispute regarding the obligations related to the highway 101
upgrades are resolved.
NOW, THEREFORE, BE IT RESOLVED by the Petaluma Community Development
Successor Agency Oversight Board that the above recitals and findings are adopted as part
of this resolution and are true and that it hereby:
1. Adopts the resolution approving the Non-housing Due Diligence review of the former
PCDC performed by Pun & McGeady, LLP with the modification to the Review that the
fund balance ($8,448,437) be retained by the Successor Agency until any litigation
related to enforceable obligations is the subject of a final and non-appealable judicial
determination.
2. Directs the Executive Director of the Successor Agency, or his designees to transmit a
copy of the due diligence review to the County auditor-controller, the State Controller
and the Department of Finance pursuant to§Section 34179.6.
1928584.1
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Petaluma Oversight Board to the
Petaluma Community Development Successor Agency at a Regular Meeting on the 9th of January,2013,by the
following vote:
AYES: Davis,Duiven,Chair Healy,Jolley
NOES:. None
ABSENT: Herrington,Vice Chair Rabbitt,Scharer
ABSTAIN: None
ATTEST: C v ' I /
Recording Secretary Chair
OSB Resolution No.2013-01 Paget