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^ ��^"�:t�lt"��: <br />(e� ,f�t�� , City Council Memorandum <br />ity <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />FROM: DEVELOPMENT DEPARTMENT <br />DATE: September 27, 2011 <br />ITEM NO: 31 <br />WARDS: ALL <br />SUBJECT: PRELIMINARY DRAFT OF THE INITIAL RECOGNIZED OBLIGATION PAYMENT <br />SCHEDULE <br />ISSUE <br />The issue before City Council to receive and file the preliminary draft of the Initial Recognized <br />Obligation Payment Schedule ( IROPS). <br />RECOMMENDATION <br />That City Council receive and file the preliminary draft of the IROPS (Exhibit A) pursuant to <br />Assembly Bill 1X 26 (AB 1X 26). <br />BACKGROUND <br />On June 29, 2011, Governor Brown signed AB 1X 26, which eliminated redevelopment agencies <br />throughout the State. Pursuant to Assembly Bill 1X 27 (AB 1X 27), the City adopted an Ordinance <br />agreeing to the Voluntary Alternative Redevelopment Program on August 9, 2011 allowing the <br />Agency to stay in existence, if AB 1X 26 is not overturned. Until the Ordinance is effective, the <br />Agency must cease most operations. <br />On July 18, 2011, the California Redevelopment Association (CRA) and the League of California <br />Cities (League) filed a petition asking the California Supreme Court to overturn AB 1 X 26 and AB 1X <br />27 because they violate the Constitution. On August 11, 2011, the California Supreme Court <br />announced it would hear the lawsuit filed by the CRA and the League and issued a partial stay of <br />enforcement of AB 1 X 26 and a stay of AB 1 X 27 in its entirety. <br />Pursuant to Section 34169(h) of the Health and Safety Code, a section of AB 1X 26 that was not <br />stayed, redevelopment agencies are required to prepare and submit a preliminary draft of the <br />IROPS to the designated Successor Agency by September 30, 2011. The City of Riverside was <br />designated as the Successor Agency on March 5, 2011 in anticipation of the potential elimination of <br />the Agency. The IROPS is a payment schedule, similar to the recently adopted EOPS, that requires <br />the Agency to identify all enforceable obligations, minimum payment amounts, and anticipated due <br />dates for each enforceable obligation. The EOPS identifies the Agency's enforceable obligations for <br />the period of August 2011 to December 31, 2011, whereas the IROPS identifies a six -month <br />schedule of Agency payments that must be made from January 1, 2012 through June 30, 2012. <br />31 -1 <br />