Auditor To Attend Council Meeting Regarding Caltrans Homes

The following is a press release from the City of South Pasadena. All inquiries should be directed towards Transportation Manager Dennis Woods at 626.403.7236.

Representatives from the California State Auditor/ Bureau of State Audits (BSA) will attend the June 20, 2012, South Pasadena City Council meeting to receive testimony related to its audit of the management of Caltrans-owned properties located in the cities of Los Angeles, South Pasadena, and Pasadena.

These properties were purchased years ago in anticipation of constructing the north extension of the SR-710 freeway.

In 2011, Assemblymember Anthony Portantino, 44th District, requested an audit of the management of the Caltrans properties. Portantino’s audit request was approved by the legislative audit committee, and the audit is expected to be completed and released by the BSA in August 2012.

South Pasadena Mayor Michael A. Cacciotti, on behalf of the City Council, submitted two letters to California State Auditor Elaine M. Howle, CPA, in May 2012, providing comments and requesting a meeting with elected and appointed officials, as well as constituents, for the purpose of providing testimony that could assist the BSA in its audit of Caltrans’ management of properties along the SR-710 extension corridor (Report #2011-120).

Mayor Michael A. Cacciotti said, “We want to make sure that residents and others have the opportunity to provide input into the audit by expressing their opinions about the way Caltrans has been managing the properties it owns. The City anticipates seeing a thorough and comprehensive audit report in August, which will include important testimony provided at the June 20th South Pasadena City Council meeting.”

Debbie Meador, Bureau of State Audits, Chief of Legislative Affairs, stated the audit will be fact-based and is completely confidential, like all audits in progress, until its release in August 2012. However, she said the BSA welcomes comments for consideration.

The audit will provide independently developed and verified information related to the proposed SR-710 extension project. The scope of work will include, but not be limited to, the following:

1. Review and evaluate the laws, rules, and regulations significant to the audit objectives.

2. Identify the number of state-owned parcels that the California Department of Transportation (Caltrans) currently maintains along the extension project right-ofway.

3. Determine the roles and responsibilities of the entities involved in the maintenance of the state-owned parcels along the extension project right-of-way.

4. Review and evaluate Caltrans’ policies and procedures for maintaining the properties along the extension project right-of-way and determine whether they are consistent with applicable laws and regulations.

5. For the most recent three-year period, identify the expenditures related to maintaining the extension project right-of-way, including the expenditures for the repair and maintenance of the state-owned properties. For a sample of
those expenditures, determine whether they are appropriate and reasonable.

6. For a sample of expenditures identified in Objective 5, to the extent possible, compare the costs Caltrans paid to the cost private entities in the local area charge to perform similar work, particularly the costs to repair and replace
roofs.

7. Review and assess the fees the Department of General Services (General Services) charges for services it provides to maintain and repair state-owned properties along the extension project right-of-way. Further, determine if Caltrans has explored alternatives to General Services
providing services for the repair and maintenance of these
properties.

8. Determine what actions have been taken to assess the feasibility of completing the extension project since the decision by the Federal Highway Administration in 2003 to rescind its Record of Decision.

9. To the extent possible, determine the amount of property tax revenue that would have been collected in the past five years and the amount that could be collected in the next five years if the state-owned properties along the extension project right-of-way were privately owned.

10. Identify whether there are any restrictions on the use of proceeds from the sale of the state-owned properties along the extension project right-of-way.

11. To the extent possible, determine the approximate current market value of the state-owned properties along the extension project right-of-way.

12. Identify whether there are any alternatives to state ownership as a means of preserving the State’s access to the right-of-way needed for the extension project.

13. Review and assess any other issues that are significant to the extension project. The South Pasadena City Council invites all who have an opinion that they would like considered in the audit to attend the June 20, 2012, City Council meeting, where they will be provided with an opportunity to comment. Present to receive testimony will be Debbie Meador, Chief of Legislative Affairs; Joanne Quarles, Audit Principal; Daniel Anderson, Audit Supervisor; and Scott Baxter, Legal Counsel.

The City Council meeting will be held in the City Council Chambers, 1424 Mission Street, South Pasadena, CA 91030, starting at 7:00 p.m. For further information, contact Dennis Woods, Transportation Manager, at 626- 403-7236 or via email at dwoods@ci.south-pasadena.ca.us.