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File Number: 15-509 <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 January through June 2016 (known as ROPS 15-16B) includes one new <br />obligation that was not included on the previous ROPS. That obligation is a City advance to <br />the Successor Agency to provide short term cash needed to fulfill other enforceable <br />obligations. The need for this advance, described in more detail in file No. 15-512, results <br />from issues that came out of the DOF’s review of the previous ROPS. Assuming this new <br />obligation is approved by the Successor Agency, the Oversight Board, and the DOF, it will be <br />repaid in full in January 2016 and removed from the ROPS in the future. <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, arguing that 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 <br />Obligation #9) and four Cooperative Agreements to fund $9.1 million in capital improvement <br />projects (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 interpreted AB 1484 to have a retroactive effect on these actions, an <br />assertion that the Successor Agency disputed. <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. In a letter received on May 14, 2015, the DOF informed <br />the Successor Agency that it will no longer dispute these items and they will be approved on <br />future ROPS. The lawsuit was subsequently dismissed. <br />Consequently, items #9 and 27-30 are now deemed approved enforceable obligations. While <br />the dispute was ongoing, the due dates for several payments passed by. Therefore, ROPS <br />15-16B includes a request for the majority of funding due under the $2.1 million General Fund <br />loan and the full $1.5 million due for the Eden Road construction project. The remaining <br />Page 2 City of San Leandro Printed on 9/15/2015