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File Number: 15-718 <br />approach on the current ROPS. The current approach involves re-listing certain expenditures <br />that exceeded the Agency’s funding distributions on past ROPS. Specifically, the following <br />payments have been re-listed on ROPS 2016-17: <br />·Ford Store Sales Tax Rebate Agreement. On ROPS 14-15A, the Successor Agency <br />requested and received $185,000 for this obligation. However, due to a strong spike in <br />sales volume, the actual payment was $207,546. The difference of $22,546 is included <br />on the current ROPS along with the estimated payment for the upcoming year. <br />·2014 Tax Allocation Bonds. In 2014, the Agency issued refunding bonds to refinance <br />earlier 2002 and 2004 bond issuances by the Redevelopment Agency. As part of the <br />refunding, the Agency paid accrued interest of $142,421 at the time of the refunding. <br />This payment was not previously listed on a ROPS and will therefore be listed on <br />ROPS 2016-17. <br />·Casa Verde Operating Agreement. The Successor Agency requested and received <br />$111,254 for a required payment under this agreement on ROPS 14-15B covering the <br />period from January-June 2014. However, the payment was made a month early in <br />December 2014. Because the funding was not expended in the period it was requested <br />the DOF applied a later funding adjustment, reducing a distribution to the Agency. <br />The Agency is hopeful that the DOF will disburse funds for these past payments, thereby <br />significantly reducing the Agency’s funding shortfall. Should this approach not be successful, <br />the Agency will explore alternative options to remedy this shortfall, which may include <br />revisiting action related to the DOF’s denial of the City Advance on ROPS 15-16B. The <br />Agency will also continue to work with the DOF in the hopes of reaching an agreement that <br />will remedy the remainder of the shortfall. <br />Plaza Loan <br />One new item, a reinstated loan owed by the Plaza Project Area to the City General Fund, is <br />included in ROPS 16-17 for the first time. An amended loan agreement and promissory note <br />is also scheduled for approval at the January 19, 2016 City Council meeting. In 2004, the City <br />and the Redevelopment Agency approved a promissory note and a loan of $2.6 million from <br />the City to the Plaza Redevelopment Project Area. In 2011, the Agency made payments of <br />$2.4 million to retire that obligation prior to the elimination of the Redevelopment Agency, <br />however those payments were ultimately reversed when a court ruling determined that the <br />dissolution law retroactively reversed all payments made after January 1, 2011 on <br />City-Agency funding agreements. <br />When the dissolution law was amended by SB 107 in 2015, the Agency gained the ability to <br />reinstate the loan subject to several conditions outlined in the staff report for that item. <br />Assuming that action is approved by the Oversight Board and the DOF, it will become an <br />enforceable obligation on the ROPS. Over the next seven years, the Agency anticipates <br />making approximately $3m in payments to the City General Fund to retire this obligation. The <br />Plaza Project Loan is included on the current ROPS, however payments are not scheduled to <br />begin until the next fiscal year. <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 />Page 3 City of San Leandro Printed on 1/12/2016