For starters, yes, I would define a new applgroup with a 3 year retention and add that to the folder. Since you never expired by OAM before I would double check that the delete parts are defined (OAM Delete table and trigger for OAM deletes).
Naturally working through OnDemand with the unload command is the preferred direction to delete data, especially with AFP since your dealing with resources. It shouldn't be too difficult to build a stack of load-ids from older loads and run the unload command in batch(sample below). We have used the OAM OSREQ DELETE command before, for a particular issue,but that works "behind the scenes" and requires careful cleanup afterwards. I wouldn't recommend it if it can be avoided.
Sample batch unload:
//ARSAD002 EXEC PGM=ARSADMIN,REGION=0M,TIME=NOLIMIT,
// PARM=('unload -h OND23T -g FM0002 -u ULOAD23T -p xxxxxxxx
// -L 6100-71-0-126FAA-14901-14901 ')
//STEPLIB DD DISP=SHR,DSN=IBM.ONDV85.SARSLOAD
// DD DISP=SHR,DSN=ONDDODP.V10.SDSNEXIT
// DD DISP=SHR,DSN=ONDDODP.V10.SDSNLOAD
// DD DISP=SHR,DSN=IBM.ONDV85.ACIF.SAPKMOD1
//ARSBIN DD PATH='/usr/lpp/ars/V8R5M0/bin'
//SYSOUT DD DISP=OLD,DSN=DSYS.DOL.WSYS.ONDEMAND.SYSOUT