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File Number: 15-718 <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 />City-Agency Agreements <br />After the submittal of earlier versions of the San Leandro ROPS, the DOF informed the <br />Successor Agency that it did not consider some items to be enforceable, arguing that AB x1 <br />26 does not recognize agreements between a redevelopment agency and the city that created <br />it. This determination related to a loan from the City General Fund to the Joint Redevelopment <br />Project Area with a balance of $2.1 million (ROPS Obligation #9) and four Cooperative <br />Agreements to fund $9.1 million in capital improvement projects (ROPS Obligations #27-30). <br />A lawsuit to challenge the DOF’s interpretation was filed in December 2013 and a decision <br />published on September 25, 2014 found that the Successor Agency actions to re-enter into <br />these agreements were valid and that the DOF had abused its discretion in rejecting these <br />items on the ROPS. In a letter received on May 14, 2015, the DOF informed the Successor <br />Agency that it would no longer dispute these items and they will be approved on future ROPS. <br />Consequently, items #9 and 27-30 are now deemed approved enforceable obligations. <br />Therefore, ROPS 15-16B included a request for the majority of funding due under the $2.1 <br />million General Fund loan and the full $1.5 million due for the Eden Road construction project. <br />The current ROPS requests funding for the remaining payment due under the Joint Project <br />Loan, the full funding required for the MacArthur Boulevard streetscape project ($1,274,134), <br />and the first installment of $400,000 to complete design of the Doolittle Drive streetscape <br />project. Future ROPS submittals will include the obligated funding for the remaining phase of <br />the Doolittle Drive streetscape project ($4.2m) and the Hays Street (Dan Niemi Way) <br />reconfiguration ($2.0m). <br />City Advance for and Re-Listed Payments Related to Funding Shortfall <br />As part of the previous ROPS submittal (ROPS 15-16B), the Successor Agency requested <br />approval of a “City Advance” of $779,051 to remedy a shortfall in the Successor Agency’s <br />fund balance. The shortfall resulted from an adjustment the DOF made to an earlier <br />distribution of funds. In its review of an earlier ROPS, the DOF determined that the Successor <br />Agency had a substantial amount of funding on hand to pay enforceable obligations. <br />Therefore, the DOF made a significant reduction to the amount of funding remitted to the <br />Successor Agency to pay those obligations. The Successor Agency believes that the DOF <br />determination was erroneous and submitted documentation to justify this assertion. The City <br />Advance was intended to remedy the shortfall temporarily and would have been paid back <br />using funds distributed under ROPS 15-16B. Unfortunately, the DOF denied this advance as <br />an enforceable obligation and the City Advance was not executed. Therefore, the Successor <br />Agency continues to have a negative fund balance. <br />Although the Successor Agency continues to disagree with the DOF determination, the <br />Agency is following DOF guidance and attempting to remedy the shortfall through a different <br />Page 2 City of San Leandro Printed on 1/12/2016