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<br />Oversight Board Action <br />This expenditure agreement was first introduced to the Oversight Board at its January <br />19, 2017 meeting and added to the 2017-18 Recognized Obligation Payment Schedule <br />(ROPS) that was submitted to the Department of Finance by the deadline for <br />submission of the ROPS, February 1, 2017. <br /> <br />On February 14, 2017, the Oversight Board will consider a resolution that formally <br />establishes the excess bond proceeds as an enforceable obligation and authorizes the <br />transfer of funds from the SA to the City. The resolution will also approve the Bond <br />Expenditure Agreement between the City and the Successor Agency. The transfer of <br />the monies will occur during the 2017-18 ROPS period but the monies would not <br />necessarily have to be expended in that year. <br /> <br />Use of Excess Funds <br />Staff believes the best use of these excess bond proceeds would be to add them to an <br />existing project consistent with the original bond financing plan. The City recently <br />approved beginning conceptual designs for the Broadway Streetscape Project, for <br />which construction is planned in the near future. Using the funds on this project is <br />consistent with the original bond financing plan because the project seeks to address <br />pedestrian connectivity as envisioned in the original scope of projects for RDA. The <br />Broadway Streetscape Project will work to provide a safe and attractive streetscape by <br />providing a paved and tree-lined environment, addressing shifting of sub-grade, and <br />improving pedestrian-scale lighting and signs. <br /> <br />ALTERNATIVES <br />Not approving or delaying the approval of the Bond Expenditure Agreement could <br />potentially jeopardize the transfer of the excess bond proceeds. Health and Safety Code <br />Section 34179(h) provides that information about all actions taken by the Oversight <br />Board shall be provided to DOF, and DOF may review all such actions. An action of the <br />Oversight Board becomes effective five business days after submission to DOF unless <br />DOF requests a review. The Oversight Board action will be submitted to the DOF as <br />soon as practical. <br /> <br />FISCAL IMPACT <br />The Oversight Board established the excess bond proceeds as an enforceable <br />obligation and authorized the placement of these on the Recognized Obligation <br />Payment Schedule by the Successor Agency, subject to the limitations and restrictions <br />set forth in Health and Safety Code Section 34191.4(b). Funds for the conceptual <br />design plans of the Broadway Streetscape Project were appropriated from the FY 2016- <br />17 Capital Improvement Program. The excess bond proceeds of $108,920 will go <br />towards the construction costs for this project. <br /> <br /> <br />6.1.E. - Page 3