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File Number: 12 -028 • Pension and unemployment payments for agency employees; • Judgments, settlements or binding arbitration decisions; • Contracts necessary for operation and administration of the agency, e.g., rent, insurance, equipment, supplies and professional services; and • Any legally binding and enforceable contract that does not violate the debt limit or public policy. The EOPS must include the following information about each obligation: (A) The project name associated with the obligation. (B) The payee. (C) A short description of the nature of the work, product, service, facility, or other thing of value for which payment is to be made. (D) The amount of payments obligated to be made, by month, through December 2011. During the suspension period, the Agency is only permitted to pay for Enforceable Obligations, as defined above, and "contracts or agreements necessary for the continued administration or operation of the redevelopment agency." Following dissolution of the Agency, expenditures of a successor entity would be limited to Enforceable Obligations and revenue would be constrained to fund only those obligations. Analysis The Agency originally adopted an EOPS on July 18, 2011. That Schedule only needed to show payments owed through December 2011, because it was anticipated that the Agency would have either been dissolved or opted to participate in the Voluntary Alternative Redevelopment Program by November 1, 2011. Since the adoption of the original EOPS, the California Supreme Court heard a challenge to AB x1 26 and 27 and ultimately upheld the dissolution bill while striking down the Voluntary Alternative Redevelopment Program. Absent new legislation, the Agency will be dissolved as of February 1, 2012. Given that it will be several months before an Oversight Board is formed and can make determinations about the Agency's recognized obligations, staff and the Agency's legal counsel recommend amending the EOPS to provide greater clarity regarding Agency expenses that can be paid in the interim. Although the amended EOPS is largely similar to the original version, some changes have been made to reflect a greater understanding of the requirements of the new laws and material changes in the Agency's obligations that have occurred since last July. Specific changes include: • All obligations updated to show the estimated balance as of January 1, 2012 and anticipated payments due through June 30, 2012; • Obligations that were retired prior to December 31, 2011 have been deleted; • Obligations related to capital projects funded by Agency bond proceeds have been updated and clarified; and • An obligation related to a lease guarantee for a property adjacent to Bayfair City of San Leandro Page 2 Printed on 112012012