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File Number: 15-052 <br />• Bonds including debt service reserve set asides and any other required payments; <br />• Loans borrowed by the Agency; <br />• Payments required by the federal or state governments; <br />• Pension and unemployment payments for Agency employees; <br />• Judgments, settlements or binding arbitration decisions; and <br />• Any legally binding and enforceable contract that does not violate the debt limit or <br />public policy. <br />The ROPS for July through December 2015 (known as ROPS 15-16A) does not include any <br />new obligations that were not included on the previous ROPS. <br />City -Agency Agreements <br />After the approval of each previous version of the San Leandro ROPS, the DOF exercised its <br />right to conduct a review of the list of Enforceable Obligations. Upon completion of those <br />reviews, the DOF informed the Successor Agency that it does not consider some items to be <br />enforceable because AB x1 26 does not recognize agreements between a redevelopment <br />agency and the city that created it. This determination related to a loan from the City General <br />Fund to the Joint Redevelopment Project Area with a balance of $2.1 million (ROPS Obligation <br />#9) and four Cooperative Agreements to fund $9.1 million in capital improvement projects <br />(ROPS Obligations #27-30). <br />In response to the DOF's initial determination, the Successor Agency and Oversight Board <br />exercised the power granted in Health and Safety Code Section 34178 to re -authorize those <br />agreements in May 2012. Assembly Bill 1484, which went into effect on June 27, 2012, <br />revised that section of the code, limiting an Oversight Board's ability to re -authorize <br />agreements. The DOF's continued objection suggests that it interprets AB 1484 to have a <br />retroactive effect on these actions. <br />After the denial of these agreements on the ROPS for January -June 2013, staff requested <br />and received a meet -and -confer appointment with the DOF. After that meeting, however, the <br />DOF continued to deny the validity of the obligations. No other administrative remedies were <br />available to the Successor Agency at that point. A lawsuit to challenge the DOF's <br />interpretation was filed in December 2013 and a hearing was held on July 18, 2014. A <br />decision published on September 25, 2014 found that the Successor Agency actions to <br />re-enter into these agreements were valid and that the DOF had abused its discretion in <br />rejecting these items on the ROPS. The decision is presently being appealed and the <br />Successor Agency is hopeful that the issue will be resolved by the end of 2015. <br />Administrative Budget <br />The ROPS also contains an administrative budget for the Successor Agency. Based on <br />direction from the DOF, the amount of the administrative allowance is the greater of 3% of <br />funds received from the Redevelopment Property Tax Trust Fund or $250,000 annually. For <br />the July through December 2015 ROPS period, the $250,000 floor will apply. The <br />administrative costs included on this ROPS total $125,000 in staff and legal costs, <br />representing half of one year's allowance. <br />The Oversight Board is scheduled to approve this ROPS on February 25, 2015 and it will be <br />City of San Leandro Page 2 Printed on 2111/2015 <br />