(OB-2012-33) OVERSIGHT BOA RD RESOLUTION NUMB ER OB-2012-33 A RESOLUTION OF THE OVERSIGHT BOA RD FOR THE C ITY OF SAN DIEGO REDEVELOPMENT SUC C ESSOR A GENC Y A UTHORIZING THE TRA NSMITTA L OF A LETTER DISPUTING THE SA N DIEGO COUNTY AUDITOR-CONTROLLER'S OBJEC TION TO THE PROPOSED FUNDING SOURC E FOR TWO LINE ITEMS IN THE THIRD RECOGNIZED OBLIGA TION PA YMENT

SCHEDULE WHEREA S, the former Redevelopment A gency of the C ity of San Diego (Former RDA) administered the implementation of various redevelopment projects, programs, and activities within designated redevelopment project areas throughout the C ity of San Diego (C ity); and WHEREA S, in accordance with A ssembly Bill x1 2 6 (A B 2 6 ), the Former RDA dissolved as of February 1, 2 012 , at which time the C ity of San Diego, solely in its capacity as the designated successor agency to the Former RDA (Successor A gency), assumed the Former RDA's assets and obligations; and WHEREA S, the Successor A gency is required to administer the winding down of the Former RD A 's operations and to ensure compliance with the Former RDA's obligations in accordance with A B 2 6 , as amended by A ssembly Bill1484 (A B 148 4); and WHEREA S, C alifornia Health and Safety C ode

section 3418 2 .5 permits the San Diego C ounty Auditor-Controller (C ounty A uditor) to transmit notice, by October 1, 2 012 , of objections to (

i) the inclusion of any items in the third Recognized Obligation Payment

Schedule (ROPS 3 ) that are not demonstrated to be enforceable obligations and (ii) the funding source proposed for any items; and WHEREA S, C alifornia Health and Safety C ode

section 3418 2 .5 also allows the Oversight Board, if it disputes any finding of the C ounty A uditor, to refer the matter to the C alifornia Department of Finance (DOF) for a determination of what will be approved for inclusion in the applicable ROPS; and Doc No. 454627 (OB-2 012 -33)

WHEREAS, the County A uditor transmitted a letter dated October 1, 2012 to the DOF, in which the County Auditor, among other things, objected to the use o f the Redevelopment Property Tax Trust Fund ("RPTTF"), rather than the administrative cost allowance, as the proposed funding source for two specific line items in ROPS 3, namely line item for funding of the annual audit in the amount of$2 00,000 and line item for funding o f the Oversight Board's independent legal counsel in the amount o f $250,000; and

WHEREAS, the Oversight Board disputes the County Auditor's objection to the funding source for the two pertinent line items in ROPS 3, for the reasons described in the Staff Report accompanying this item.

NOW , THEREFORE, B E IT RESOLVED by the Oversight Board that the Oversight Board Chair is authorized to execute, and Successor A gency staff is authorized to submit, a letter to the County Auditor and the DOF disputing the C ounty Auditor's objection to the proposed funding source in ROPS for the annual audit o f the Successor Agency and the Oversight Board's legal counsel , for the reasons described in the Staff Report accompanying this item. PASS ED AND ADOPTED by the Oversight Board at a duly noticed meeting o f the Oversight B oard held on October _!k , 2012. Chair ~ Doc No. 454627