RES-OB-0020 Due Deligence Review For Fund & Account BalancesRESOLUTION NO.OB -0020
A RESOLUTION OF THE OVERSIGHT BOARD OF
THE SUCCESSOR AGENCY TO THE ORANGE
REDEVELOPMENT AGENCY APPROVING THE
DUE DILIGENCE REVIEW FOR FUND AND
ACCOUNT BALANCES OF THE FORMER
ORANGE REDEVELOPMENT AGENCY
CONDUCTED PURSUANT TO HEALTH AND
SAFETY CODE SECTION 34179.5 AND TAKING
CERTAIN OTHER ACTIONS IN CONNECTION.
WHEREAS, pursuant to Health and Safety code Section 34175(b) and the California
Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et
al. (53 Cal.4 231(2011)), on February 1, 2012, all assets, properties, contracts, leases, books
and records, buildings, and equipment of the former Orange Redevelopment Agency transferred
to the control of the Successor Agency to the Orange Redevelopment Agency (the "Successor
Agency ") by operation of law.
WHEREAS, Health and Safety Code Section 34179.5 requires the Successor Agency to
employ a licensed accountant, approved by the county auditor - controller, to conduct a due
diligence review to determine the unobligated balances available for transfer to taxing entities.
WHEREAS, Health and Safety Code Section 34179.6, on October 10, 2012, the
Oversight Board of the Successor Agency (the "Oversight Board ") approved the results of the
due diligence review conducted pursuant to Section 34179.5 for the Low and Moderate Income
Housing Fund (the "LMIHF ") and specifically the amount of cash and cash equivalents
determined to be available for allocation to taxing entities.
WHEREAS, Health and Safety Code Section 34179.6 also requires the Successor
Agency to submit to the Oversight Board for the Oversight Board's review and approval the
results of the due diligence review conducted pursuant to Section 34179.5 for all of the other
fund and account balances of the former Orange Redevelopment Agency, excluding the LMIHF,
and specifically the amount of cash and cash equivalents determined to be available for
allocation to taxing entities (the "Other Funds DDR ").
WHEREAS, pursuant to Health and Safety Code Sections 34179.6 and 341800), the
Successor Agency submitted to the Oversight Board, the county administrative officer, the
county auditor - controller, the State Controller and the Department of Finance ( "DOF ") the Other
Funds DDR and copies of the Recognized Obligation Payment Schedule ( "ROPS ").
WHEREAS, pursuant to Health and Safety Code Sections 34179.6 and 341800), the
Successor Agency submitted to the Oversight Board, the county administrative officer, the
county auditor - controller, the State Controller's Office and the Department of Finance ( "DOF ")
the Other Funds DDR and copies of the Recognized Obligation Payment Schedule ( "ROPS ").
WHEREAS, pursuant to Health and Safety Code Section 34179.6(b), upon receipt of
Other Funds DDR, and at least five business days before the Oversight Board considers the
approval of the Other Funds DDR, the Oversight Board must hold a public comment session (the
Public Comment Session ") at which time the public has an opportunity to hear and be heard on
the results of the Other Funds DDR and at which time the Oversight Board considers the
opinions, if any, offered by the County Auditor - Controller on the results of the Other Funds
DDR.
WHEREAS, on January 2, 2013, the Oversight Board held the Public Comment Session
pursuant to Health and Safety Code Section 34179.6 (b).
WHEREAS, Pursuant to Health and Safety Code Section 34179.6(c), the Oversight
Board must review, approve and transmit to DOF and the county auditor - controller, the
determination of the amount of cash and cash equivalents available for disbursement to taxing
entities as determined according to the method provided in Section 34179.5. Section 34179.6
c) provides that the Oversight Board may adjust any amount provided in the Other Funds DDR
to reflect additional information and analysis.
WHEREAS, Section 34179.6(c) empowers the Oversight Board to authorize the
Successor Agency to retain assets or funds identified in subparagraphs (B) to (E), inclusive, of
paragraph (5) of subdivision(c) of Section 34179.5. If the Oversight Board makes this
authorization, the Oversight Board must identify to DOF the amount of funds authorized for
retention, the source of those funds, and the purposes for which those funds are being retained.
The determination and authorization to retain funds and assets shall be subject to the review and
approval of DOF pursuant to Health and Safety Code Section 34179.6(d).
WHEREAS, among other things, the Other Funds DDR identifies assets or funds in
subparagraphs (B) to (E), inclusive, of paragraph (5) of subdivision (c) of Section 34179.5 of AB
1484 to be retained, in the amounts, from the source(s), and for the purposes set forth therein,
which are incorporated herein by this reference (collectively, the "Identified Assets and/or
Funds ").
NOW, THEREFORE, the Oversight Board of the Successor Agency to the Orange
Redevelopment Agency does hereby resolve as follows:
Section 1 . The above recitals are true and correct and are a substantive part of this
Resolution.
Section 2 . This Resolution is adopted pursuant to Health and Safety Code Section
34179.6 (c).
Section 3. The Oversight Board hereby (1) approves the Other Funds DDR as
presented and on file with the Secretary and (ii) authorizes the Successor Agency to retain the
Identified Assets and/or Funds.
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Section 4 . The staff of the Successor Agency is hereby directed to transmit to DOF
and the county auditor - controller written notice and information regarding the actions taken by
this Resolution and specifically the determination of the amount of cash and cash equivalents
that are available for disbursement to taxing entities as determined according to the method
provided in Health and Safety Code Section 34179.5. Such notice to DOF shall be provided by
electronic means and in a manner of DOF's choosing.
Section. 5. The staff and the Board of the Successor Agency are hereby authorized
and directed, jointly and severally, to execute such documents and instruments and to do any and
all other things which they may deem necessary or advisable to effectuate this Resolution and
any such actions previously taken are hereby ratified.
ADOPTED this 10 day of January, 2013, by the following vote:
Carolyn V. Cavecche v
Chairperson of the Oversight Board to the Successor
Agency of the Orange Redevelopment Agency
ATTEST:
L — _ 2 jz' C j ll1'
t( a "
Mary E. urphy
Clerk oftthe Oversight Board
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Oversight Board of the Successor Agency to the Orange Redevelopment Agency at a regular
meeting thereof held on the 10 day of January, 2013, by the following vote:
AYES: BOARDMEMBERS: Buttress, Christensen, Davert, Remland,Schulze, Yarbrough
NOES: BOARDMEMBERS: None
ABSENT: BOARDMEMBERS: Cavecche
ABSTAIN: BOARDMEMBERS: None
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Mary E urphy
Clerk of the Oversight Board
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