Title
Staff Report for Resolution of the City Council of the City of San Leandro Authorizing the Execution of an Amended and Restated Cooperation Agreement with the Successor Agency to the Redevelopment Agency of the City of San Leandro Regarding the Construction and Funding of Eden Road Improvements and Hays Street Improvements
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council, Serving as Successor Agency to the former Redevelopment Agency, approve the Resolution Re-Entering into a Cooperative Agreement with the City, thereby re-affirming a 2011 Agency funding commitment of $3.5 million for improvements to Eden Road and Hays Street.
BACKGROUND
On January 17, 2011, the Redevelopment Agency and City of San Leandro (Agency) executed a Cooperative Agreement whereby the Agency pledged $8,967,754. At the time of the Agency’s dissolution on February 1, 2012, the full balance of this obligation was still owed and that amount was added to the Agency’s Enforceable Obligation Payment Schedule (EOPS) and Recognized Obligation Payment Schedule (ROPS).
After the approval of the ROPS by the City Council (serving as Successor Agency) on April 2, 2012 and the Successor Agency Oversight Board on April 6, 2012, the California Department of Finance (DOF) exercised its right to conduct a review of the list of Enforceable Obligations. Upon completion of that review, the DOF informed the City that it did not consider some items to be enforceable because, with very limited exceptions, Assembly Bill x1 26 does not recognize agreements between a redevelopment agency and the city that created it. This determination impacts the aforementioned Cooperative Agreement and a loan from the City to the Joint Project Area.
Analysis
Although the language of AB x1 26 is relatively clear regarding the treatment of City-Agency agreements as unenforceable, many cities throughout California have questioned the Legislature’s authority to invalidate financial agreeme...
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