HomeMy WebLinkAboutOSB Agenda Packet 12/19/20121
AGENDA
OVERSIGHT BOARD
TO THE PETALUMA CO,MMUNITY'DEV.ELOPMENT
SUCCESS0E2� AGENCY
Wednesday; December 19; 20112 9:00 A.M.
Petaluma City. Hall: Council Chambers
1,1 English Street, Petaluma,, CA 94952
(707) 7.78-4549 ( Fax (707)778=4586
1. ROLL CALL:
Grant Davis; Scott Duiven; Mike Healy; Steve Herrington; Kate Jolley; David Rabbitt;
John Scharer
2. PUBLIC COMMENT:
The Board will hear public+comments only on matters over which it has jurisdiction. There
will be no Board discussion or -action. The;Chair willAlot no more than three minutes to any
individual. If more than three ,persons wish to speak, their -time will' be allotted so that the
total amount of time allocated to this agenda item will be 15 minutes.
3. PUBLIC COMMENT REGARDING THE• NON_ -HOUSING FUND DUE
DILIGENCE REVIEW:
pursuantao Health and3afcty Code 34179.5, the Oversight Board will hear public coin ment
at this hearing which is at least five°days prior to the,meeting scheduled for January 9, -2013
at which time the .Board will take action regarding the Non-hoCising Fund Due Diligence
Review..
4. ADJOURNMENT
Page 1
For accessible meeting information_,
please call, (707 778-4360 or L
TDD (707) 778=4480
In accordance with, the Americans with, Disabilities Act;, if you require,special assistance participateAin this
meeting; please'contact.the'City+Clerk's,Office at (707) 7,78-4360 (voice),or,(707) 778-4480 (TDD)' Translators,
American Sign Language interpreters and/or ass istive-li§tepidg devices fa individuals'with'hearin`g,disabilities will
be -available upon request. A minirnunrof 48 hours�is needed`to ensure the availawitv'of translation'services. In
consideratiowof those with nmltiple,'chemical•sensitivitiesor other enviionmental_;illness;'it'li_s requested tlfat you
;refi-ain, front wearing scented products. The City Clerk hereby certifies that this agenda has been ', posted 'in
accordance with4he requirententsof the.Government Code.
rlease.Note:dn accordance with Governntent'Code §54057.5;,any materials of public record relating to:an:'agenda.
itenrfor'a regulat.nteeting,ofthe:Betaluma OversiglitlBoardethai aresprovided to,a majority^of the members less,.
than 72 hours before the meetiiig�will'be made available at,ihe City Clerk's Office, I I English,Street; during normal
business hours. Materials,of.pu6lic,re66rd that aye,di`stributed,duriitg,the meeting shall'be:ntade,available for public
inspection at the meeting{if;prepared. by the City or a m&rnbier of its legislative/advisory'body, or the nest brisiness
day after the meetinggif prepared by some other person.,
Page 2
e
Item #3
Oversight. Board, to the Petaluma_ Community
Development Successor 'Agency
DATE: Decemberl9„2012
TO: Members of the Oversight Board
FROM: Ingrid Alverde, Economic & Redevelopment Manager
SUBJECT: Public Comment Session to Hear Public Comment Regarding the Non -housing
Fund Due Diligence,Review Pursuant to Health and Safety Code Section 34179:5
It is recommended that the Oversight Board accept public comments regarding the Non-
housing Fund Due Diligence'Review (Attachment 1) Pursuant to Health and Safety Code Section
34179.5.
BACKGROUND
On June 27, 2012, the State enacted AB 1484; revising ABx1 26 (the,Redevelopment Dissolution
Act) to require successor agencies to identify and remit unobligated ,funds to the County for
distribution to the taxing agencies. The law created procedures for a "Due Diligence Review'
which is like an audit.that spells out4hich funds, if'any, are available and unobligated. The first
step was to review the affordable housing fund balances, which was completed in October
(Housing Fund Review). The second step is to review the non -,'affordable housing funds (Non-
housing Fund Review), which,is the subject of this report.
DISCUSSION
Successor Agency staff hired the County -approved 'accounting- firm Pun & McGeady; LLPto
complete both Reviews. The Housing Fund Review was completed, approved by thesSuccessor
Agency and the Oversight,Board,.and'submitted to the State Department of Finance (DOF) and
other oversight agencies in October. Since then, the DOF accepted the housing fund balance
deterrriination'and staff transferred those funds to the County.
This draft Non-housing'F.und Review was approved by the Successor Agencyon December 3,
2012. The Oversight Board is required to allow for public commentat a meefi,ng at Ieast5 days
before it takes final action on the Non -housing Fund Review, which is due to the State and
County oversight agencies by January 15, 2012. The Oversight Board is schedule to take action
on the Review on January 9, 2013. At its discretion, the Oversight Board can consider any
opinions of the County Auditor -Controller, may adjust amounts in the Review, request
Item;#3
Page 2
additional materials , and may authorize the Successor Agency to retain certain assets and
funds.
The DOF has until.Apri1;1,.2013,to respondand,,request payment,of the identified fund balances
which may or may not be the same as those identified in the Review. The.fund's will then•be
due to the County within five business'days unless the Successor Agency' contests,DOF's
determination.
FISCALJMPACTS
The $10,000 cost to prepare both Reviews is�.budgeted'in the Successor.Agencyts:administrative
budget,approved on ROPS_2.
The draft, Non -housing Fund Review identifies approximately $8,400;000'in' unobligated fund
balances, which if approved by the Oversight Bo_ard_. and the DOF, will be due to the County'in
.April or May of`2013.
ATTACHMENTS
1. Non-housing..F.und Due Diligence Review
Attachment 1
FOn
Successor Agency
Petaluma, Califorhia
Independent Accountants Report on
Applying. Agreed -Upon Procedures relating to
the Due Diligence Review in accordance with AB'1484
applied to the Successor Agency
For the year ended Rine 30, 2012
Petaluma Community'Deyelopment
Successor Agency
Table of Contents
Page
INDEPENDENT ACCOUNTANT'S`REPORT ON
APPLYING AGREED-UPON PROCEDURES ...... ......................... .............................. ....... ....................
1
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS...._ ................................... 2-17
EXHIBITS
Exhibit A
All assets transferred from the former, redevelopment'agency to the Successor Agency oa February
1, 2012
Exhibit B
Summary of Financial "Transactions
Exhibit C
Assets of all other funds of the'Successor Agency as of Jane 30,2012
Exhibit D
Asset balances held on June 30, 2012 restricted for various piuposes
Exhibit E
Assets as of June 30, 2012 not liquid or othenvise.available for distribution
Exhibit F
Summary of Balances Available'for Allocation
Exhibit G
Management Representation Letter
E'CN LKIM-1—ivEi'tiDY
INDEPENDENT ACCOUNTANT'S REPORT'ON_
APPLYING AGREED-UPON PROCEDURES'
To the Oversight Board (it the
Petaluma Community Development Successor Agency
Petaluma, California
9 Corporate Park
Suite 130,
Irvine, California 92606
Phone: (949) 777-8800
Fax: (949), 777-8850
txnviv.pm' Ilp.com
We have performed the `required,agreed-upon procedures'(" AUP") enumerated 'in Attachment A,
which were agreed to by the California State Cotitiroller's Office and the California State Department of
Finance, solely to assist the Oversight Board of the Petaluma Community Development. Successor
Agency ("Successor Agency") that the dissolved Petaltima, Community Development Commission
("Agency") of the City of -Petaluma;, California (, City") is complying faith its statutory requirements
with respect to Assembly Sill ("XB;) 1484. Management of the City is responsible for the accounting
records pertaining to statutory compliance pursuant to California Health and Safety Code section
34179.5(c)(1) through 34f79.5(c)(o)..
This procedures applied to all otherremaining fund of the Successor Agency and not to the Successor
Agency as a whole. The procedit res! applied to the Low and Moderate:Inconie Housing Fund ,were
completed and have issued our report thereon dated September '26, 2012.
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 inake
Ito 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.
We were not engaged to and did not conduct an audit, the objectivOof.which would the e<pression
of an opinion as to the.appropriateness of.tlte financial information summarized in Exhibits, as listed in
the table of contents. Accordingly, vSe do not.express,such ari opinion. Had we performed additional
procedures, other matters might have come to our attention that"vould have been reported.to you.
This report is intended.solely for the information and use of the Successor Agency;,the Agency, the
City, California'Sfate'Controller s .Office and the California State Depatin6it cif; Finance, and isnot
intended to be, and should',not be used by anyone ether than these specified par ties.'This;restriction is
not intended.to hinit`dist'ribution of -this report, winch is_a,ipatter of public record.
Irvine, California
November 28, 2012
AI"I'AC"MENT A - AGREED-UPON;I'aOCEDURES .4ND RFtSUI:rS
Petaluma Community Development Successor Agency
Agreed Upon Procedures - AB 1484 -Due Diligence'Review
All Other Funds of the Successor Agency
Page 3
Citation:
34179:5(c)(1)'rlrc dollar valine of�assets transferred from the forruer redevelojnhent irgencJ to Ihe successor agcucy
on or about Februmy 1, 2012.
Procedures Performed:
I. 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.
Results:
Reviewed trial balance reports and journal entries and rooted' all assets were transferred from the
former redevelopment agency to the. Successor Agency effective February 1, 2012 as journal entries
were posted after February 1, 2012,therefore matte retroactive to February -1,2012. Also noted new
fiords were created to account for assets acid liabilities of the Successor.Agency upon RDA dissolution.
See Exhibit A for the listing obtained from the Successor Agency of all assets,that were transferred from
the former redevelopment agency to the Successor Agency.on'February 1, 2012.
Petaluma Community ,Development Successor. Agency
Agreed Upon Procedures.- AB.71484:Due Diligence Review
All Other Funds of the Successbr Agency
Page 4
Citation:
34179.5(c)(2) TlreydbIlnr aalue.ofassets rn d.caslr_and cast equtvalbits ffansferred,rrfter jaiutary 1, 2011, through
junr,30, 2011 tiy.the redevelquirient agencyor the successor,agency to the city,.counhy,,or city, and °county�thaf
formed tlic re"deuelopment,agewcy aura the purposc•'ofeach tnmsfev The rezaezo skall.provide.ilocunrcyitativnoof ally
enforceable obligation that required the transfer.
Procedures Performed:
2. If lh.e Slate Controller's Office'lias completed its review of -transfers required under both Sections
341675 and 34178.8 and issued its°report, regarding such review,, a_ ttach a2copy of that report as an
exhibitfo.tlie AUP report. If this has not yet occurred, perfohn.the following P-irocedures:
A. Obtain a listing prepared by the. Successor Agency. of transfers (excluding payments for
goods and services),froni,thefornier redevelopment agency to the city; county,.or city and
county that formed the redevelopment agency for the period from.Jmnfary' 1; -2017 tl-irough
January 31„2012,: For each pansfer, the Successor 2Ygency should.describe•the„purpose of the
tiarisfer and describe in what sense the: transfer ragas required by one of tire Agerwyls
enforceable ohligations'or other legal requirements. Provide this listing as+an,attachment to
the AUP report.
R. Obtain a,listing prepared by thierSuccessor Agency of transfers (exchiding p`ayments'for
goods and services), from jhe Successor. Agency to the, city, county, or city and county that
formed the redevelopment agency fpr the period .from February 1,.2012 through Juire,30,
2012. For, each transfer, the Successor Agency should describe the purpose of, the transfer
and desciiGe in what -sense the transfer wasrequired by one of the Agency's enforceable
obligations•orother 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
gbligation thatYequircd any transfer. Note:in:the,AUP reportthe.absence of any such legal
document or the absence of language in the,docrunent-that required the transfer.
Results:
The State Conlroller's,Office has not completed.its review of transfers required under.California l lealth
and Safety Code Sections' 34167'5 and, 34178.8. However, 'there were no transfers from the former
redevelopment agency to the city, county, or city and:county thaPformed the redevelopment agency fon
the period from January 1; 2011 throughi June 30, 2012. Therefore, these procedures are:not applicable.
Petaluma Community Developrrent Successor Agency'
Agreed'Upon Procedures -"AB 1484 Due Diligence Review
All Other Funds'of the Successor Agency
Page 5
Citation:
34179.5(c)(3) The dollar value.of arty cash or cash 'egaiaalents transferred after Jinniant 1, 2011,'throuch /lute 30,
2012, by the redevelopment pgrncy or the buc'cessgr'agency to arty, other fmbticagency or private party and,the
purpose of each transfer. The r'evieio sluilFyradide dociunentatioit.of any enforceable obligation that required the
transfer.
Procedures Performed:
3. If the State Controller's Office has completed its review of transfers required under both Sections
34167.5 and 31778.8 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 thefotlowing procedures:
A. Obtain a listing prepped by ;the Successor Agency of transfers (excluding payments for
goods and services) [from theformer<redevelopment agency to any other public agency or
to private parties for the period from January'l,-2011 through.January 31, 20"12. For each
transfer, the Successor Agency should describe the purpose of the,transfer and describe in
what sense.the.lransfer was require&by one of the Agency's enforceable obligations or other
legal requirements. Provide this listing as an•attachnient 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 Y, 2012" through.June'30, 2012. For each transfer, the
Successor Agency shoulii describe theipurpose of thetransfer 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 attachmmnt.to theAUPreport.
C. For each transfer, obtain the legal document that :formed the basis for the enforceable
obligation that t required my transfer. Note in the AUP report the absence of any such legal
document or the absence of language in thedoctiment,that required the transfer.
Results:
The State Controller's Office has not completed its review,of.transfers 'required under California Health
and Safety Code Sections 34167.5 and'.34178.8. However, there were no transfers from the former
redevelopment agency'to'any'other public agency or to private parties for the period from Jarmary 1,
2011 through June 30, 2012. Therefore, these procedures are hot applicable.
Petaluma Conununity'DevelopmentSuecessor: Agency
AgreedUpoin Procedures - A131484 Due Diligence Review
All Other Funds,of the Successor Agency
Page 6
Citation:
34179.5(c)(4) The -review shall provide experuhhire:and revenue accounting inforrnahon,aini identify translcrs
arni;tnndriio,sonrces for the 2610=11 and.M:1-12 fiscal.years that reconciles'Galances, assets, and'li;rGrlihes of
the.successor agency on June .30, 2012 to those'reported,to the Coritrol7er for the 2009-10.fiscal year,
Procedu res'Terformed:
4. Perform the follovving;procedures:
A. Oblain from dhe Successor Agency a summary of the financial tfan"sactiuhs, of the
Kedevelopment Agency and the Successor Agency i'n the forma] set forth in'the' attached'
scliedule for, the`Eiscal,periods'irjdicated in Onesclneclule. For purpoks,of this:siimmary; Hie
financial transactions should be presented using the modified accrual basis ofaccountirng.,
Eiul�of year balances "f& capital,a`ssets_(in total) and long-termliabilities (iirtotal)sliould be
presented',at`the bottom ofJliis summary schedule,for'information purposes.
13: Ascertain that for eachperiod ,presenter(; the total of revenues, expenditures, and transfers
accounts fully for:'the changes in equity from the previous fiscal period.
@=_ Compare amounts;in the ,schedule',retevant to the fiscal year ended June 30, 2010'to the state
conholler's report"filed"for the'Redeveloprnent Agency for that period.
D. Compare amotuits-iotthe schedule for the°other fiscal periods,'piesented to account balances
in the,acco"unting "records or'othei.supporting ",schedules. Describe in the report the type of
support provided for each'"fiscal^period'.
Results:
See.Exhibit'll for+the:summary obtained'from the Successor Agency of the financiah'transactionssof, tile
Redevelopment Agency and the Successor Agency in the format'set forth in;the`attached, schedule for
66ds'indicated in the schedule.
the fiscal pe
Petaluma Community.Developinent Successor Agency
AgreedvUpon,Proc&iures - AB 1484 Due Diligence Review
All Other Funds of the Successor Agency
Page 7
Citation:
34179:5(c)(5) A separate aceenmfing for the.balence fo -,the Low and Moderate'Incone Housing Fund for all other
firnds and accounts combined shaltbe made as follows:
(A) A statement of the total value of each hold as of June 30, 2012
,Procedures Performed:
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 I -lousing Fund) for the report that is due December 15, 2012. When
this procedure is applied to_'ihe Low and Moderate Income housing Fund,,the schedule attached as
an exhibit will inch Lie only, those assets•of the Low aAd,Nloderate 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 reflectedin the accounting records of the Successor Agency.
The listings should he attached as an exhibit to the appropriateAU report.
Results:
See L"xhibit C for the listing obtained from the Successor.Agency 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 I-tousing Fund'... - .
Petaluma Commttiiity t)evelopraeot Successor Agency.
Agreed Upon -Procedures - AB-1484Due Diligence, Review
Ali Other Funds of the Successor, Agency
Page 8
Citation:
341795(c)(.5)(B) An itemized statement listiitg'mut.mrtwq?ts iltnt are legalllf restrictedtn ;to:jiurl?nse;ni,ul carmat
be,provided:tr (axing,enfities. 77ns cautd,irtctit tc'tttc.lmcci:ts iif ariy Blinds„9raht farads, iiiiridis pibauled b./
other gavernineuldl entities thot place conditions on then- use.
Procedures Peifoinred:
6. Obtain from the Successor Agency a listing of assets balances held -oil June 30, 20t2,,tliaf.are
restricted for the tollowing pur} Eke :.
A, Unspent bond proceeds:
1. ;Obtain the Successor Agency's computation of, the restricted balances (e g„ total
proieeds less eligible-pj'oject:eYpeti(iitiites, amouiits set aside fof detitsc.livice.payments,
etc.)
2. Trace.individual components of this computation to 'related 5ccount,balances.in the
acenuating records„or to other,supporting documentation (specify. in the AUP report a
description oFsuch C106mentaiion).
3. 'Obtain. Aorii'the, Succe.ssor Al;etic� a copy of the legal document, thatsetsforth. the
,restriction -pertaining -to these balances. dote in the t1tJP report tlre:ibsence of'-anguage
restricting the use of the balances that were identified by the _S icces"sor. Agency. as
restricted. 1
Results:
The listing included cash and investments of $21,831229 in the Debt Service -Fund (Fufi.d,5215)'
restricted,as unspentbond Iproceeds and reserves. Reviewed trust,iccoifnts.With U a. Bank acid
requisitions fop draws against the 20M, and 2011 Tax Allocation Bonds (TAB) project Fg6ds.
B. Grant proceeds and program incomethatare restricted by. third parties:
i. Obtainthe Successor Agency's computation of the restricted balances (e:g., total
prucecils'less cligible'project eicp(Niditures).
ii. 'trace, individual components of this computation Oto related account balances in (lie
accounting records,;or to other supporting docwmentation (specify in the AUT''report. a
description of such docurnentatioii).
iii. Obtain from the `_successor Agency a copy of'.the grant agreement that sets'Fnrth the
restriction pertaining to these balances. Note in the AUP report the;ilxence bf language
restricting, the use of the balances that were identified by the ;Successor. ,Agency as
restricted.
Resrdts:
There were no, grant'liroceeds orpro&am incorne'tliat,a e restricted.,by third parties atjime,30,
2012. Therefore, these procedures are not applicable.
Petaluma.Conimunity'Development Successor Agency
Agreed Upon Procedures- AB 1,184 Due Diligence Review
All Other'Fivads of the :Successor- Agency
Page 9
C. Other assets considered to be legally restricted:
i. Obtain the Successor Agency's _computation of the restricted balances, (e.g., total
proceeds less eligibte.project expenditures).
ii. 'Trace individual -components of this, computation, to related account balancesin, the
accounting records, or, to other supporting,docuirnenta tion (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 balance_ s. that were identified by Successor the Agency as
restricted.
Results:
The listing included refundable depositsrof $129,750 in the Successor Agency Administrative
Fund (Fund 5415). Reviewed(1) the Owner Participation Agreement by and'between the
Community DevelopmeiatConunission of the City of Petaluma and'Lok Petaluma Marina Hotel
Company, LLC,a California limited liability company ($t25,000), (2);a -copy of the check in the
amount of $3,750 iecei"ved.hom Petaluma Area Chamber of"Commerce, and (3) a copy of the
check in the amouat'of,,$1,000 received^From Petaluma Valley AQrletic-Club and noted they are
(1) assistance !provided' for river front enhancement- improvements, (2) security deposit for
rental property, and (3) security deposit for land lease,, respectively. Verified the documents set
forth the restriction'pertaining.to those balances.
D. Attach the abode nientioiaecl'"Successor Agencyprepared 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.7f the restrictions are in effect until the
related assets are expended for their intended purpose, this should be indicated in the
report. 1 2.. . . .
Results:
See Exhibit D for the listing obtained from the. Successor Agency' of asset balances held on June
30, 2012 that are restricted for the purposes specified above.
Petaluma,Conurtunity Development Successor Agency
Agreed Upon'Proceilures - AB.1'484,Due Diligence Review'
All Other Funds of die Successor Agency
Page 10
Citation:,
34179.5(r.)(5)(C) An the 1)a1ites of arty asset's that are.tmt cash or cash equiaalettts. This may
include physical`assets,.hout,-records; and e9yipmeut.Tor clue purpose of this:accauntiuo, physical assets,ntall,be
valued at ptrchase:cost'or.at any recentlu estimated market value. The stotcmcnt,slrall lis_t:'separatelij lioltsiug-
relatetl assets.
Procedures Perforniecl:
7. Perform thelollow'ing.procedures
A, Obtain from the Successor,Ageacy a listing of gussets as of'(uhe 30, 7-012'that.are not',liquidor-
otherwise available for,distribution (surli as catiital assets, land.held' for resalia, long-term
,rcceivables, etc), and ascertain, if fhe vaiues:are'listed at either plvrhase'cgsk (based, on bolok
value 'reflected in the accounting records of -the Successor Agency) or market value as
recently estiinated by the Successor Agency:
Results:
The: I isib ig'inclu ded: d'epnsi ts,and 'prepaidsof $1,059,373':mtd loans receival le,gf,$2r4p74k'in
the'Successor A&ncy Administrakive; Fund (Fund 5115). Reviewed' -the account statement
as of )une' 30, 2012 of the Condemnation Deposits Fund, which is Held liy .tf St@1te
Treas irer'sPffice, and the loan agreement,for the Storefront Improvement"Loan and poked
they are not avaitabte'for distribution^as they,are not d'ue.witliin.; reasonahlePerieciof Buie
theeefore'not ddemed liquid, within, the tueaning Of California Health and Safety C6de
,section 34179.5(c)(7)(C).
See Exhibit E for the listing obtained from cthe Successor. Agency of assets as,of Julie 30, 2012
that are not 'liquid or otherwise" available for distribution.
Q. lythe assets listed al 7(A) are listed at;purchase cost, trace, the.arnounts, to,a previously
audited financial' statement (or'to'the k.counting records of'the Siiccessdr :Agency) and note
any differences.
Results:
Noted no differences.
PetalumaCom_munity Development Successor Agency
Agreed Upon Procedures - AB 1454 Due Diligence Review
All 'Other Funds of,the Successor Agency
Page 11
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.-Agencyjrust fund. If_the differences are due
to additions (this generally !is not expected to occur), inspect the supporting documantatio i
and,note the circumstances.
Results:
Noted no differences.
D. if the assets: listed at 7(A)',are listed at recently' estimatedmarket value, inspect.the evidence
(if any).supporting the value,and note,tlie methodology usecLlf no evidence is available to
support.the value-and\or methodology, note the lack of evidence.
Results:
The assets listed at 7(A)'are listed at actual. cost.
Petalurna Con iumity,Developrient Successor Agency;
Agreed U,poll P.rocedtire., - AB 1484 DUe'Diligence,Review
All Other Funds of tiie Successor Agency
Page 12
Citation:
34179.5(c)(5)(D)An itemized lietirig, of -fury current balances, that are legally or, coiitractriallit dedicated or
restricted jirr=Jhe fividing of all ertfa cea7rte otrlignfiori,ftiaf i:Iiritifies ft+e,rintrtre orf file dedication or, resthchort,cnni
the specific oiforcedble oblibahort. In ar7llitiinr, tile' successor, agency shrill provide ,a listing, of all approved
enforceable:obligatious that o7cludes apnvjection t f,nrungrl spandnag.rcgnirernentsao'sntisf"y each obligatioir and
pn:oiection ofantuial reuenws. avartable',tti faro,/ those rejtiir trieiits. if a reaieiei jirirts ttiaf frrk:re.rciexrics t gether
eoith dcliciited,or r'estricted,babnrres are irrsuf(cient tofnui frrhue obligatiors.and thus retenti'on:.o, current
balances is regyired,,it sGa7i.idenhhl tfre innrruJrt of i_crr win balances noxssary for retention. The revieup stiall'also
detail the pro)rcted property ins 'r"evermes,;riruf`otlici bein^riih ppose revi'riires to be received:,bi fbe successor
rzgeniy, tngethrrWith Both the annnuit nerd tiering of the:bouddebt:service paymenisiof,the:succes.wnagerrcy, fop-
tile
ortine period in rolirrh the oversight board arrticipities tl:e successor agency 'will trace insujficieiit property `ta;r
reVeuueto pay.tile specified obligritions.
Procedu resTe rformed:
S. Perform tree foltcnving procedures:
A. 'Wthe Successor Agency believes that asset balanms need to tie retaineei,to ";atisfy,enfoi,ceable
obligations, obtain from the Successor ,Agency' an itemized schedule of asset" balances
(resources) as.of June 30, 2012 that -ere dedicated or restricted.for°Hie fint(Upig ofl.ei;fgrceable
obligations and perform the follgvbiNg procedures, The 'schedule should identify the,amount
dedicated or restricted; the nature -of the dedication or restriction, the spe ific o force0le
obligation to which the dedication=
Petaluma Connnunity Development Successor Agency
Agmed`Upori Procedures - AB 1484 Due Diligence -Review
All Other.Funds'of the 'Successor Agency
Page 13
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 paynnents;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 [lie 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. Departnenti of Finance approving the Recognized Enforceable
Obligation Payment Schedules for the six:nnonth period from_ January 1, 2012 through
June 30, 2012 and.forthe six month period.July 1„2012'[Froiugh December 31, 2012.
ii. Compare the forecasted annual spending requirements to the legal document
supporting each enforceable obligatioin.
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 foecasted'annual'-revenues:
a. Obtain from the Successor Agency its assumptions for the forecasted annual
revenues and disclose in the repot major assumptions associated with the
projections.
Results:
The Successor Agency,does not believe that future reverwes,together with balances dedicated or
restricted to an enforceableobligation are insufficient to fund future obligation payments and
thus retention of current balances is required.
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 (he timing and amouint of the related cash flows), obtain
from the Successor Agency a schedule demonstrating this .insufficiency and apply the following
procedures to the inforuiation7eflected in that schedule.
i. Compare the.timing and amounts of bond debt service payments to the related' bind
del tservice schedules in the bond agreement.
ii. Obtain the assumptions for the forecasted property tax irqvenues 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.
Results:
The -Successor Agency does not believe 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.
lk.
PetalumaCommunity Development Successor Agency
Agreed-UponTrocedures-. A51,184 Duc:l�iiigeace Review
All Other Funds of.the Successor Agelicy
Page 14
ll. If procediires.A, B,, or C were perforriied, calculate the amount of current unrestricted balances
necessary for retention itt order to meet the enforceable obligations by perforniilg'the folloee°ing
procedures.
i. Combine.tire amount: of identified.cutrent deulicafed-or restricted balances.an-d the
amount of forecasted aniival revenues to arrive at the.amouitt of't6tal.,resources
availablF� to hind'enforc6ble obligations:. .
ii.. Reduce, ih&amount of'towl resources available by theanlobrnt.f6recastrzl for the annual
spending reiluir&'merits. A negative'result indicates the arnourit of currenrunrestricled
balances,that needs to be retained.
iii. htchide the calculation in the AUP report.
Results:
Since procedures A,.B, or C were not performed, this procedure is n4applicable.
Petaluma Community Development Successor Agency
Agreed Upon Procedures-- AB 1484 Due Diligence Review
All Oth&,-Pujuls'of the Successor Agency
Page -15
Citation:
34179.5(c)(5)(G) An itemized',h5t and gaalysfs of any apron -tits of current balances that are needed to satishj
obligations that will be placed oil thesRecognized Obligation Payment Schedules for the current fiscal year.
Procedures Performed:
9. If the Successor Agency believes that cash balances as of June 30, 2012 deed to be.retained to satisfy
obligations on the Recognized Obligation Payment Schedule (BOPS) for the period of July 1, 2012
through June 30, 2013, obtain a copy of the final RODS 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,
2011 Par each obligation listed.owthe•ROPS, the Successor. Agency,should acid 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.
Results:
fhe Successor Agency does not believe that cash balances as of June 30, 2012 need to be retained to
satisfy obligations on the -Recognized Obligation_ Payment Schedules (ROPS).for the period of July 1,
2012 through June 30, 2013.
ROPS for the period of Januaryl, 2013 to,June 30,2013'included,enforceable obligations disqualified by
the Department of Finance (DOF), Mee tand Confer with DOF has been scheduled to appeal the ruling.
Petaluma Community Developioerit Successor Agency
Agrced.Upon Procedures --Ag 1484 Due Diligence Review
All Otter Funds ofthe Successor Agency"
Page '16
Citation:
3427.4.5(r)(6)'Ilie, review shall totpl,the ueI bninuces;,nzaiihrble after dee lit Mng thz total'haurunts deacrihed in
subj+:zragr l:Cis{8) to {E); inchzsNW, i f pakagz'aph (5). T;ze=rvvicw':,shall add any ainonn6 that were-triv'e jerrrrl as
identified iii Paragraphs, (2),arul :(3) of subdiz isioit (c) if no gtforeerible obligation, to,mpke that trani;M 'did not
exist. Tilt, resulting quill shall be ovailable for allocation to affected'taxing entities:pu'rszoh to Secti iin 343 79."Ci. tt
slralbbe a, rebuttable presumirtion that ensh axil cash egirziialritf•ti t;races available to flic4successor agency are
available arid siifcictzt-hi disbiiise the amount determined ill this paragraph to taxing e_atities� If fliarreqim?o funds
that there are.irrsrr fpicierrf crrslz'balnnces to transfer or,tlxaf�ctralr or cash equivalcrrts to„tile
purposestlescr btti i r subparagraphs (6), (D); anX(E) oj.Fidragnfrlr (5) in suchaiunants;that"there:isirzsufficicrzt
Cash to pronriti theaidl,anziniv dHernimed pursuant to 111MI rrrngnrpli, that amount shall be ilemn_ nstrated in an
additional itemized schedaale.
Pracednres Perf6ruied:
10: (nclucie for present) a sihechde detailirig the ef6uputation;of the Balance Available: for Allocattion>to
Affected""Faxing Entities.- Amounts included in the calculation should agree, to the rc"siults cif the
procedures performed "in each'section above., The•scliedfile should also �inchdie. a deduction to
recognise ani6unts airLeady paid to the County Auditor -Controller onijuly 12i,2ti2? as`directeutlby
the Calitornia'Department of -Finance. The,ainount of.tlus deduction 'pTesented should',be,agrecd4o
evidence of payment. The attached example summary schedule may be considered dor tills,
puriiose. separate schedules should be completed forthe.Low and tvioderate:ln�oiiie,l lousiung.Ftind'
and foi'all oilier funds combined +;(e>6:1 uding tine Low "ancl; ciderate Income Housing.l
Results.
'The.to(a],amount ;of assets,lield by tileSiuccessoi Agency asof June 30,)2012 includedllhe'amqunt to be,
remitted to the County for disbursement to taxing entities for the Low anti Modcfate.Iiicaaie,Hciusi{ng
Fund.,
The Successor Agency received a payment of $3:111;354 on June 6; 2012 fron) the Sonoma County
Auditor-Contmlier's (]ffice for the Recognized Obligatioin Payment Schedule,(ROPS) for the period of
July t, "2012 to December 31, 2012. Alsei, the;paynnent received for RODS "for tine period of January 1,"
2012 to June 30, 2012 had a remaining balance af' 1;944,010.as of June 30, 2012.
See i xhibit F'for"schedule detailing the computation of the Balance Available for Allocation to Affected
Taxing Entities.
Petaluma Corhmunity,Development Successor Agency
Agreed'Upon Procedures -:AB 1484 Due Diligence Review
All Other-Fuiidsiof the Successor Agency
Page 17
Management Representation Letter
11: Obtain a representation letter from Successor Agency management acknowledging their
responsibility for the data provided M 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 lettefshould be noted in [lie AUP report
as required by attestation standards.
Results:
See Exhibit G for Management Representation Letter.
EXBIBIITS
Exhibit A
All assetsrtransfeired froin•the,former, redevelopment,agency
to the -Successor Agency oil February 1,.2012
Exhibit B
Summary of Financial Transactions
Exhibit C
Assets of all other funds of the Successor Agency
as of June 30, 2012
Exhibit,I)
Asset balances held'yn•Jinic 30, 2012
restricted for various }purposes
Exhibit E
Assets as of June '00, 2012
not liquid or,othersvise.availabfe for distributioir
Ezhibit;F'
Sum uary of I3atances Available for Allocation
Exhibit G
Mana&ffient Representation letter
Petaluma Community DevelopnrenCSuccessor Agency
All OtherFunds ofthe,Successor Agency
Agreed Upon Procedures - AB 1484
For the year ended June 30, 2012
EXHIBIT A
All assets transferred from the former redevelopment agency
to the'Successor Agency on February 1, 2012
. Redevelopment Agency
January 31, 2012 - -
Successor
Debt Service CapitalProlects Administration
Agency
Fund 5200 Fund 5300 Fund 54W Febi
uary 1, 2012
ASSETS
Cash and investments S 316,315 S 1,817,447 $ 12,468,704 5
14,702,466
Restricted cash and investments 588 24,155,626 -
21,156,211
Receivables
Intergovernmental receivable - - 62,150
62,450
Deposits and prepaids -- 1,059,373
1;059,373
Loans receivable - - 235;580
235,580
Total Assets $ 416,903 $ 25,973,073 $ 13,826,107 $
40,216,083
Deposits and prepaids
State Treasurer's Office Condemnation Deposits Fund
"
S}'ersProperties $ 388,373
The Novak Property, LLC 671,000
Total deposits and pi epaids $ -I,U59 i73
Loans receivable
Storefront Improvement Loan $ 235,580
Total loans receivable - $ 235,580
Note: The Low.and Moderate Income }lousing -Fund is not included i n the schedule.
Petaluma Community Development Successor Agency
All OtllerTunds of the Successor Agency
Agreed Upon Procedures - AB. -'1484
For the year ended Jr>_ne'3O,2012
EYHIBCr B
Summary of FinanciM ,riansactions
'The amount represents a transfer out to the Housuig•Succemr Agency
Note. The Successor Agency indudes the, previously reported 5ssets'of the Low and Moderate haeme housing
Fund.
Successor
R_ edevelopnient Agenn
Agency
12 Months Ended
12 Nfoutls Ended
7 6lonths ridai -
' 5
\fonths,Ended
6730/2010
6/30/2011
1/31/2012
6/3012012
ASSETS
Cashmxl imestments
'S 14,170,656
S 11,742,783
$ 15,436,068
S
14,256,79Q
Reshicied'cash andlinvectments
17,131.971
28,329,760
21,156;214
r
21,832;229
RweivaMes,
Accounts receivable, net
.12,026
25,426
-
„ -
lntergovenimental receivable
270,488
102,896
61,450
;49,319
Deposits acid prepanis
675
671,060
1,059,373
3f0S9,373
Loans eceieable
22,746,221
23,443,634
23,438;108
231,741'
InteiestieceivaBle related to loans rcrermble
3,031,208
3,380,195
3,380,195
1 -
Total Assets
57,398,247
67,695,694
- 67,532,408
37,432,455
LIABILITIES
Accounts payable
'178,026
541,467
80,673
71,710
Wagges payable_
,9,901
23,846
18,614
4;428
Deferred reveime
-3,031,799
3,380,696
3;380;196
Refundable deposits
189,750
.1-99,750
189,750
129,750
Due to City of Petaluma
1,700,000
.1,300,000
-
-
Total'Liabilities
5,109,476
5,435,759
3,669;733
205,888
Total Funic Balnires
52,288,771
62,259,935
63,863,175
37,226;567
Total Iizbilities unit Fuml.Balancea
S 57,398;247
'S 671695,694
5 67,532;408
$_
37,',132,43.5'
Total Revenues
$ 17,865.914
.S ,17,079,761
$ 7,269328
S
IAP6,319
Total Eaperdituies
(20,602,736)
(18,852,600),
(5,557;690)
(4,411,445)
OTHER FINANCING SOURCES (USES)
4,619.228
11,744t003
(108;398)-
j25,3.31,482)
NE1 CHANGE IN FUND BALANCES
1,882.406
- 9,971,164
1,603,240;'
(26,636,608p
BEGINNING FUND BALANCES (DEFICIT)
50,406,365
52,288,771
62,259,935
'63,861,175.
ENDING FUND'IBALANCFS(DEFICIT)
$ 52;288,77
62259,935
$ 63,863,175,
$
37,226,567
Otho' Irifonnation (shbw yea r end,bnlaixes for
all,four peiinds Eireseirted):
Capital assets as ofeixi of year
5" 11,503,078
$ -
5 -
S
_
Long-term debtas of end of.year
$ 71,144,879,
,S °81,056;574
$ '81,056,574
5
79,113,269
'The amount represents a transfer out to the Housuig•Succemr Agency
Note. The Successor Agency indudes the, previously reported 5ssets'of the Low and Moderate haeme housing
Fund.
Petaluma Community Reyelopnlenf Successor Agency
AILOther Funds of the Successorr,Agency
,Agreed Upon Procedures- AB 1'484
For the year ended June 30; 2012
EXIIIBIfC
Assets of all other funds of the Successor Agency
Successor Agency
- June 30, 2012 _ _ -
Debtseivice Capi6l Projects Admnusha66n ' Trust
Fund 5215 Fund_ 5.315 Food'5115 Fund 8195,
Total
ASSETS
Cash and investments
$ 1,736,859 $ 199:114 S 8,595,093 $ 52,996 $
13,584,262
Restricted cash and mvesmtenls
21,832,229 - - -
21,832,229
Receivables:
Intergovernmental receivable
- - 49319 -
49,319
Deposits and prepaids
- - 1,059,373 -
1,059373
I-oans receivable
-. - 234,744 - -
234,744
Total Assets
,s. -26;569,088 $ 199,314 `$ 9,938,529 $ 52,996.5
36,759,927
i
i
Deposits and prepaids
State Treasurer's Office Condemnation Deposits Fund
sveis Properties 388373
The Novak Property, LLC 671,000
Total deposits and prepaids _$ 1,059.373
L@LLS receivable
Storefmntlmprovement Loan ;$ 231,744
Total loans receivable ,s 234,741
I
Petalu_ rua'Coinmunity Develof)ment Successor Agency
AlhOthcr, Funds ofthe Successor Agency
Agreed Upon Procedures;- AB 1434'
For the year ended'Jutie,30; 2012
EXHIBIT D
A's'set Ualalices held on jime .30, 2012
resfricted for various'purpbses
Refundable deposits
Admimstr5tive FL61d5315
Description_
_ .,_ _ _ Amount
RESTRICTED ASSETS
'
3,750
Restricted cashand investments
Sunrrity de't'osit for land lease
'.1,000•
Debt ,Service Fund 5215
Unspent 2007 TAB proceerlc
I$ 1066,292
Debt Service Fund 5215
Unspent 2011 'FABpocveds
10;1127,961
Debt Service Fund 5215
201£7AB"reserves
1, i37,367
Debt Ser vice, F und's215
K1iscellaneons
609,
Refundable deposits
Admimstr5tive FL61d5315
Assistance,provided'tor fiver front enhancement nnprnvenirots=
,125,000
Administmtive_Tumi5415
Securit}L deposit for rental piopeity
3,750
Administrative Fuml 5415
Sunrrity de't'osit for land lease
'.1,000•
Total Restricted Assets
S
21;9 O79
Petaluma Community Development Successor Agency
All Other Funds of the; Successgr:Agency
Agreed Upon Procedure§ - -AB 1484
For_theyear ended June30, 201X
EXkBTT E
Assets as of june,30, 2012
not liquid or otherwise available for distribution
Description
Arnowrt
NON -LIQUID ASWIS
Deposits and prepaids
Administrative Frmd 5115
State Tre:vsurer's Office Cund_enwation Deposits Fund
Syers Properties
S 333,373
The Novak Property, LLC
671,000
Loans receivable
Administrative Fuud'5415
Storefront Improvement Loam
234,744
Total Non -Liquid Assets
S 1,294,117
PetalumaCommunity Development Successor Agency
All'Other Funds of the Successor. Agency
Agreed Upon Pruced:ures.- Ala 1484
For the year ende&j into 30, 2012
EXl l [ BIT F
Summary of, Balames Available for Allocation
SUMMARY OF BALANCES AVAILABLE FOR ALLOCAI IONTO AFFECFED TAXINGTNTI MS
Total amount of'ass,,t.4 held Ey the"successor,aycncy as of June 3U; 2U 12 (procedure ;) 7 '36,759,927
Add the'atiuunit mtany assets transfenrd to the'citi, another parties for which an enforreable
nbhgatioii with a third party requiring sucli transfer and:obllgating the use
of the transferuenl assets.dili not esi<t (procedures 2'and 3)
Less assets legally restrict edtfof pses specified by debt"
covenants. grant restrictions, or.restrictions;nnposed by,other
governments (procedure,(+)
(2t 9bl,979)
Less assets thal ore on, casli or cesh eajuivalents, (e -g., physical assets) - (procedure 7)
(1,29 IJ17)
Less tralan[es that aredr'gally restricted for the funding, of an.enforceable
obligaliuti'(nei of projected annual rcvenueslavailable to find those obligations) - (procedure S)
-
Less balances neededdo satisfy.ROPS for the 201213• fiscal yea:
pa}nent receii ed far tiOP-,It sen )line o
Remaining' balance oil payment ItCeived for'ROPS 1
(1,944,010)
Less the mode on July '12.2012 to the County Auditor-Contr_alter as
directed by the California Department of Finance
-
Anln uit'to be renitted to (Nulty, In' disburwnent to nixing entities
IS 8,44$,437
Note that sCfxrr+stc cin+jr:rtatieus are rciinrn•rt fpr±he-2.++:<+a+t<1,A;Sa<icr+;tr"Ince+r+r'Nnu.+ing Fund hold by the
Srrcressnn Agcnry maffpr al4ntlu•+
funds held'N141w Succ,N-suw Ageacl.
NO'T'ES: For each line shown above; an exhibit shouid'be attached showing tlue c(antinsilion of the suuvnnized amount
V tire scview finds that there are insufficient,fntds"available to provide tho full
ainonnt due, the cause of the insufficiency shggld be-denonstrided in a separate schedule.
PetalumaCommunity Development Successor Agency
Alf Other Funds of the Successor Agency
Agreed Upon Procedures,- AB,1484
For theyearended-June 30, 2012
EXHIBIT G
Management Representation Letter
Ds, Ia fa3ii
vaj 01
Choir Al nxrtson'
Tfmia'P•,irie(t
M1lihe F[5ri•ia"
:�3ikf Iti'sly
-f:abi Keuriies�
Cifi fl4anug,,rA Office
7 Ergish ;rn=el
Petaluma, CA 44951'
PhOre (7rih 7`,3.1d45 1
Far (7n!) 778-.`.;;? 'I
zr nyLat r.:rctnGo•;g5hgs i
EcOumnic Derelopnrenl
i•nr 1707! Y-94586
Housing Dhis1011
PhOwe (7071 77345S 5
Fns (70?)'7?8-1-586
Homan Recuurres Division
Phone (7071 "JS' -4i?;
Fon- ne7) 578-4519
Poi T Ormc1: Box,61
PETsiLu"I A, E:A 104953-0061
Puri & McGeady LLP
9 Corporate Park,-SUiite.13Q
Irvine, California 92606
In connection with your eilgagemenmo,ajiply a;reed-Lipon;procedtires�retiting
to the Successor Agency Due Diligence Review -as of June 3Q 2072, which ivere
.agreed to by the California State Controller's Office and the CaEtc, r1iia State
Department of Finaiicc, .solely to assist us in ensuru}g that our'dissnlved
redevelopment agency is complving with its statutory regilirementswith=respect
to Assenlily Bill ("Aft") 1484 ind we confirurto the beskof onr'-knoModge-ind
belief, the following representations inadeto you'daring'vour';engagern6ht.
1. the Successor Agency to the Petaluma Community. Deyetopiinent
Couunission} (".Successor Agency") is .responsible for, compliance: whin
California Health and'Safety Code (1-ISC) Section 34179:5..
2.We ;are responsible for adherence to lite requirements 'qf A'B' 1484 as
applicable to the successor agency for the dissolved reclevelopinient agency.
3. We are responsible for the presentation of the exhibits in the Successor
Agency, Due Diligence alareetl-upon procedures rel ort'in,accordance'witli.ihe
California Health Lund Safety;Code (FISC) Section`34179.5
4. As of j uje 30,, 2012; we are not aware of any rnoclifications4hat tieedyto be.
Tirade to the Successor'Agency,Due Diligence Review exl4lb ts4or theriil to;be
presented in accordance with California Health and Safety Code Sections
34179.5(c)(1) .,thrbugh 34179.5(c)(3) and Sections 34179.5(c)(5) through
3.1179.5(c)(6).
5. 'The Successor, Agency ackhowledges ilia t,.procedures .,that have .'been
developed by the California Department of Finance, in ,accordance with
California,14ealth and Safety Code (FISC) Section 34179:5 and' thatrw. will
follows these procedurLs:unless 'we conclude that they are;inconsistent'with
law.
6. We havedisclosedto'you any known matters contradicfin& the information
laforwation-TCC1u:01ogp Dirisirur i contained, nt the Successor Agency'Due Diligence Review AUP report:
. Phone (70'P77&1,:17 1
1'0s 17071 776-3b i, 7 There have been no communications from ierulafory, agencies; internal
auditors,;and other, independent practitioners or consuli nts-relating to the
Risk Alannge�nenr Ori'ision- . '�
Phaae(-07)7776-3 5 Successor Agency Due Diligence' Review, including, communications
FIax(70:)'76-s6vi received betweei-:Ifane 30, 2012 and November 228, 2012.
Pup &.Ai 4cGeady LLP
ymnaaemen! Representation Letter
i'3ge
a+.
Wm have maele availabhi to vfcm.ali inforanation that -,vc br_.lieve is relevult to
tlt:� `ieefc�ssor Agent?� i;tac :I)ilivence Ptevit�l� .
9. We have fully to air 'intiuit leis' Math. to uS by You c.lurin , the
Pn�ai k?111P.3 iY.
11). Nct event.s ,'havt_ :ccurvod subst-tluent to aunt- t:, 2012 that would require
adJu.stsment tc or modification of the info-nuatio,t cnniainrd in th., `+access„r
Ai x-n-cy Due DifigYnc'.v Re v'iIcw AUP rgport and its rcbti.d cxltibtis.
11, Nlapogeclwlu,-i< last a)Vvarr •.f ally tranyfkess Ies tEettt ed by 5eectwu 34179 5)
from either the former rode ek;rnli_rt agency, tit' the Successor :4„eller' to
Other parties I&r'tit2 pe-ijod fl.l.m (ana;sry b,'2011 through 'ung 3Q 2012 Hit
have not bvtewpi-pperly idetwMe } I Ge '1L!P Tt2 dirt and its related vxhibits.
1=. your rt�}oA.—.-is €-wended Solely fol,the inforruation and use of (hoirsc' 3cr,..
Agency, the Caiiftm-nii Pepar!iuont of 1--inance, &e California `hate
t.c;r1!t"Ilr-y;,� Ofiicc� aitel the Sonoma t )linty Auditor-ConhoPer and is ;wt
itttL'[ic;/gel to he and Should R.'t 1?t t: �etl 17� :Rsi�t)nc n itfr ihit?? t1 Sc STir�'tfleu
I'c .f72, ETSL of aur kta..;t:•ledge mod laAie•d, in ew itts have nc:uned submxpwnt to
tie date of t'C:tir leix.rt ttl:lt ciuialtl lt,ve .a nliiiCartt alnp,'Xt ut,tIn the
i!�>t3i2 �i:'i3Ct?i�t41'CS iiid[ � _ill }-FI'lPrnt�a{. `
Successor Agency to the a italuin.1 ( .t purtunity Development Cormilissiorr
login i.'. IkA i, t. f-„rcntive Di c.tos Deis*
__,coli �.iusl,�liin„{ irlcn.;: !?irectoa' --i c
tti.ri:i� yl���ert?e, izc�3tt�nttc ?''cs'�tc,}xrl<,,ti l�lz�taa�yer---=D:aiz�------'-