Title
Staff Report for Resolution of the City Council of the City of San Leandro Acting in its Capacity as the Successor Agency to the Redevelopment Agency of the City of San Leandro Approving the Recognized Obligation Payment Schedule for Enforceable Obligations of the Former Redevelopment Agency Pursuant to Health and Safety Code Section 34177
Staffreport
RECOMMENDATIONS
Staff recommends that the City Council, acting as the Successor Agency for the San Leandro Redevelopment Agency, adopt a Resolution approving a Recognized Obligation Payment Schedule.
BACKGROUND
On January 9, 2012, the City Council affirmed its decision to serve as the Successor Agency for the former Redevelopment Agency and to retain the Agency’s housing assets and functions. Under AB 1x 26, the Redevelopment Dissolution Bill, the City, acting as the Successor Agency, is obligated to prepare a draft of the Recognized Obligation Payment Schedule ("ROPS") and submit that draft to the County Auditor-Controller by April 15, 2012 for certification. Approval of the ROPS by the Oversight Board is also required. The City, as Successor Agency, can only pay obligations that are listed on the ROPS. Until the ROPS is certified and approved, the City can pay obligations that are listed on the Enforceable Obligation Payment Schedule (“EOPS). The Agency Board most recently amended the EOPS on January 23, 2012.
Analysis
A primary component of the City’s responsibilities in its capacity as the Successor Agency is to oversee the payment of Enforceable Obligations. Enforceable Obligations are defined as:
· Bonds including debt service reserve set asides and any other required payments;
· Loans borrowed by the agency;
· Payments required by the federal or state governments;
· Pension and unemployment payments for Agency employees;
· Judgments, settlements or binding arbitration decisions; and
· Any legally binding and enforceable contract that does not violate the debt limit or
public policy.
The obligat...
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