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Enter Meeting ID: 914 0075 0676#
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CALL AND NOTICE OF
SPECIAL MEETING
AT 6:45 PM
OF THE
VALLEJO CITY COUNCIL AS
GOVERNING BOARD OF THE
SUCCESSOR AGENCY TO THE
FORMER VALLEJO
REDEVELOPMENT AGENCY
DECEMBER 13, 2022
COUNCIL CHAMBERS
555 Santa Clara Street, Vallejo,
California
CHAIR
Robert H. McConnell
BOARDMEMBERS:
Vice Chair Rozzana Verder-
Aliga, EdD
Cristina Arriola
Hakeem Brown
Pippin Dew
Mina Loera-Diaz
Katy Miessner
TO THE MEMBERS OF THE VALLEJO CITY COUNCIL AS GOVERNING BOARD OF THE SUCCESSOR AGENCY TO THE FORMER VALLEJO REDEVELOPMENT AGENCY:
You are hereby notified that I do hereby call the Vallejo City Council as Governing Board of the Successor Agency to the former Vallejo Redevelopment Agency in special session to consider only the matters stated on the agenda listed below.
1. CALL TO ORDER
2. ROLL CALL
3. PRESENTATIONS AND COMMENDATIONS
4. CONSENT CALENDAR AND APPROVAL OF AGENDA
A. CONSIDERATION OF APPROVAL OF A RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 1, 2023 THROUGH JUNE 30, 2024 ("ROPS 23-24")
Recommendation: Adopt a Resolution approving the Recognized Obligations Payment Schedule for July 1, 2023 through June 30, 2024 (“ROPS 23-24”).
Contact: Rekha Nayar, Finance Director, (707) 648-4592
[email protected]
5. ACTION CALENDAR
Hybrid Options are available for members of the public to participate. To participate remotely:
https://ZoomRegular.CityofVallejo.net
Option to join by phone:
Dial (669) 900-6833
Enter Meeting ID: 914 0075 0676#
Press *9 to digitally raise your hand from the phone
For additional instructions on how to speak during public comment, please visit, www.cityofvallejo.net/publiccomment
6. ADJOURNMENT
Dated: Friday, December 9, 2022
Robert H. McConnell, Mayor
I, Dawn Abrahamson, City Clerk, do herby certify that I have caused a true copy of the above notice and agenda to be delivered to each of the members of the Vallejo Successor Agency to the former Redevelopment Agency, at the time and in the manner prescribed by law and that this agenda was posted at City Hall, 555 Santa Clara Street, CA at 4:00 p.m., Friday, December 9, 2022.
Dated: Friday, December 9, 2022
Dawn G. Abrahamson, City Clerk
CONSENT CALENDAR 4.A.
DATE: December 13, 2022
TO: Chair and Members of the Successor Agency
FROM: Rekha Nayar, Finance Director
SUBJECT: CONSIDERATION OF APPROVAL OF A RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 1, 2023 THROUGH JUNE 30, 2024 ("ROPS 23-24")
RECOMMENDATION
Adopt a Resolution approving the Recognized Obligations Payment Schedule for July 1, 2023 through June 30, 2024 (“ROPS 23-24”).
REASONS FOR RECOMMENDATION
Pursuant to State Health & Safety Code Section 34177, successor agencies to former redevelopment agencies are required to prepare and submit a Recognized Obligation Payment Schedule (“ROPS”) to authorize debt service and other disbursements for the upcoming fiscal year. Successor agencies receive an allocation of available property tax increment from the County Redevelopment Property Tax Trust Fund (“RPTTF”) up to the amount of approved ROPS disbursements. The proposed Resolution approves $1.1 million of RPTTF funding for the July 1, 2023 to June 30, 2024 ROPS reporting period.
Following consideration of ROPS 23-24 by the Successor Agency, ROPS 23-24 is scheduled for consideration by the Solano Consolidated Oversight Board to the Successor Agency in January 2023. The approved ROPS 23-24 is due to the State DOF by February 1, 2023.
BACKGROUND AND DISCUSSION
In 2011, the Governor signed into law AB1X 26 (the “Dissolution Act”) which immediately suspended most activities of Redevelopment Agencies prior to their elimination effective October 1, 2011. Assembly Bill 1484 (“AB 1484”) was signed by the Governor in 2012, adding significant new or modified actions and deadlines.The Dissolution Act was further amended by SB 107 on September 22, 2015.
The Dissolution Act requires successor agencies to prepare a ROPS which sets forth the successor agency’s enforceable obligations and scheduled payments for such enforceable obligations for the upcoming ROPS reporting period. The ROPS is the base document used by the County Auditor-Controller (the “CAC”) in determining how much property tax increment revenue is needed to meet current Agency obligations and administrative expenses, and if any current residual tax revenue is available to distribute among local taxing entities. The ROPS are prepared by staff and submitted for consideration of approval by the Successor Agency Board and the Oversight Board. All ROPS are further subject to approval by the State DOF and to audit by the CAC.
DOF has created a specific format for the ROPS submission and provides required ROPS templates to successor agencies for completion. ROPS 23-24 is presented as Exhibit 1 to the proposed Resolution (Attachment 1).
FISCAL IMPACT
Date: December 13, 2022
Subject: CONSIDERATION OF APPROVAL OF A RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 1, 2023 THROUGH JUNE 30, 2024 ("ROPS 23-24")
The Agency’s ROPS 23-24 payment requests total $1.2 million, as detailed below. These payments will be financed from RPTTF and other funds.
Bond Repayments and Fees (Items 30-31)
The Successor Agency continues annual debt service payment on 2001 bonds. These bonds paid for various infrastructure improvements. Along with related fees, $329,050 is proposed for scheduled 2023-24 debt service payments.
Administrative Costs (Item 33)
Pursuant to HSC Section 34171 (b), effective July 1, 2016, the administrative cost allowance will be equal to:
(i) up to 3% of the actual property tax received by the Successor Agency to make enforceable obligation payments during the preceding fiscal year reduced by the Successor Agency’s Administrative Allowance and sponsoring entity loan repayments in the preceding fiscal year; or (ii) not less than $250,000, unless that amount is reduced by the Oversight Board or by agreement with the Successor Agency (Section 34171(b)(3)).
The Administrative Allowance shall not exceed 50 percent of total Redevelopment Property Tax Trust Fund (RPTTF) distributed to pay enforceable obligations in the preceding fiscal year. This formula would allow an Administrative Allowance of approximately $101,000.
The proposed administrative budget is presented as Attachment 2 and estimated to be $46,000 which is less than what the Dissolution Law allows. The City, as administrator of the Successor Agency, continues to incur administrative costs to unwind the affairs of the former Redevelopment Agency and claims $46,000 to reimburse the City for its administrative support. The Agency will continue to evaluate its eligible administrative allowance and underlying work effort to support this draw on an annual basis.
Repayment of City Advances (Item 8)
ROPS 23-24 continues repayment of City/Agency post-1990 loans. Interest accrues at 3% simple interest, as provided in SB 107. The annual allowable loan repayment under the Dissolution Act is 50% of the growth in surplus tax increment since the 2012-13 base year. $800,000 is proposed for City loan repayments in the 2023-24 ROPS cycle.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.
ATTACHMENTS
1. Attachment 1 - Resolution Approving ROPS 23-24 CAO Stamp
2. Attachment 1-Exhibit 1 Vallejo ROPS 23-24 schedules
3. Attachment 2 -Vallejo SA Administrative Budget
CONTACT
Rekha Nayar, Finance Director, (707) 648-4592
[email protected]
Approved as to form:
By: for
Veronica Nebb, City Attorney
SUCCESSOR AGENCY RESOLUTION NO. _____
RESOLUTION OF THE SUCCESSOR AGENCY OF THE CITY OF VALLEJO
APPROVING THE RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE FOR THE PERIOD JULY 1, 2023 TO JUNE 30, 2024 (ROPS 23-24)
WHEREAS, pursuant to AB 1X 26, enacted June 28, 2011 (as found constitutional and as partially reformed by the California Supreme Court in its decision in California Redevelopment Association v. Matosantos on December 29, 2011), and as amended by AB 1484, enacted June 27, 2012 (the “Dissolution Act”), the Vallejo Redevelopment Agency, along with all other redevelopment agencies in the State, was dissolved as of February 1, 2012; and WHEREAS, pursuant to the authority provided in Health and Safety Code Section 34173, as enacted by AB 1X 26, the City Council of the City of Vallejo (“City”) elected and determined that the City shall become the “successor agency” to the former Redevelopment Agency, and upon dissolution of the Redevelopment Agency under AB 1X 26, all authorities, rights, powers, duties and obligations previously vested with the former Redevelopment Agency, under the Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), were vested in the Successor Agency; and WHEREAS, pursuant to Health and Safety Code Section 34173(g), added by AB 1484, the Successor Agency has been designated as a separate public entity from the City; and WHEREAS, pursuant to the Dissolution Act, an Oversight Board has been selected to oversee, direct and approve specified actions of the Successor Agency; and WHEREAS, also pursuant to the Dissolution Act, Successor Agency staff is required to prepare a “recognized obligation payment schedule” (“ROPS”), listing outstanding obligations of the Agency to be paid in the time period July 1, 2023 through June 30, 2024 (“ROPS 23-24”), submit it for approval by the Solano Consolidated Oversight Board, and submit an electronic copy to the State Department of Finance (“DOF”) by February 1, 2023;
NOW, THEREFORE, THE SUCCESSOR AGENCY OF THE CITY OF VALLEJO DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
Section 2. The approval of the ROPS through this Resolution does not commit the Successor Agency to any action that may have a significant effect on the environment. As a result, such action does not constitute a project subject to the requirements of the California Environmental Quality Act.
Section 3. The Successor Agency hereby approves and adopts the July 1, 2023 through June 30, 2024 ROPS (ROPS 23-24), in substantially the form attached to this Resolution as Exhibit 1, authorizes staff to submit this information in the DOF-approved electronic format as required under the Dissolution Act, and to seek approval of this action by the Solano Consolidated Oversight Board.
This resolution was adopted by those present and voting at a regular meeting of the Successor Agency of the City of Vallejo held on December 13, 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ROBERT MC CONNELL, Chairperson
ATTEST:
DAWN G. ABRAHAMSON, Secretary
Successor Agency: Vallejo Successor Agency Attachment 1 ‐Exhibit 1 County: Solano County
Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 23‐24 A Total
(July ‐ December)
23‐24 B Total
(January ‐ June) ROPS 23‐24 Total
A Enforceable Obligations Funded as Follows (B+C+D): 46,093 $ ‐ $ 46,093$ B Bond Proceeds 46,000 ‐ 46,000 C Reserve Balance ‐ ‐ ‐ D Other Funds 93 ‐ 93 E Redevelopment Property Tax Trust Fund (RPTTF) (F+G): 235,532 $ 893,425 $ 1,128,957$ F RPTTF 212,532 870,425 1,082,957 G Administrative RPTTF 23,000 23,000 46,000 H Current Period Enforceable Obligations (A+E): 281,625 $ 893,425 $ 1,175,050$ Certification of Oversight Board Chairman: Signature Title Pursuant to Section 34177 (o) of the Health and Safety Code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. Signature Title
Recognized Obligation Payment Schedule (ROPS 23‐24) ‐ Summary Filed for the July 1, 2023 through June 30, 2024 Period
A BF G H I J K L M N O P Q T UV W
Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Other Fu nds RPTTF Admin RPTTF 10,158,654$ 1,175,050 $ 46,000 $ - $ 93 $ 212,532$ 23,000 $ 281,625 $ - $ 870,425$ 23,000 $ 893,425 $ 5 1989 Tax Allocation Bonds Wells Fargo Bank Waterfront Developmen t Merged Project Area - Y- $ -$ - $
6 1990 Tax Allocation Bonds Wells Fargo Bank Marina Vista & Valle jo Central development
Merged Project Area
- Y- $ - - -$ - -$ 8 Advances from City City of Vallejo General
Fund
Redevelopment Activities Merged Project Area
3,526,545 N 800,000$ -$ 800,000 800,000$ 26 Tax Allocation Bond, Certification of
Participations, Tax Relief Bond.
Bondlogistix LLC, Wells
Fargo
Debt Service Admin Fee Merged Project Area
- N- $ - -$ - -$ 30 2001 Vallejo Housing Set-aside Bondligistix, Wells Fargo Bank
Debt Service Admin Fee Low-Mod
5,900 N 5,900$ 93 3,807 3,900$ 2,000 2,000$ 31 2001 Vallejo Housing Set-aside Wells Fargo Bank Vallejo Housing Set Aside Bond
Low-Mod
2,872,975 N 323,150$ 46,000 $ 208,725 254,725$ 68,425 68,425$ 33 Administration City of Vallejo Administration Cost N/A 250,000 N 46,000$ 23,000 23,000$ 23,000 23,000$ 47 Advances from City City of Vallejo Redevelopment Activities 3,50 3,234 N- $ -$ - $
-$ -$ - $
23-24 B (January - June)
Fund Sources
(Vallejo Successor Agency) Recognized Obligation Payment Schedule (ROPS 23-24) - ROPS Detail July 1,2023 through June 30, 2024
(Report Amounts in Whole Dollars)
Item # Project Name/Debt Obligation Payee Description/Project Scop e Project Area Total
Outstanding
Debt or
Obligation
23-24 B
TotalRetired ROPS 23-24
Total
23-24 A (July - December)
Fund Sources 23-24 A
Total
AB C D E F G H
Reserve Balance Other Funds RPTTF
Bonds issued on or
before 12/31/10
Bonds issued on or
after 01/01/11
Prior ROPS RPTTF
and Reserve
Balances retained for
future period(s)
Rent,
Grants,
Interest, etc.
Non-Admin
and
Admin
1 Beginning Available Cash Balance (Actual 07/01/20)
RPTTF amount should exclude "A" period distribution amount 808,248 58,557 71,506 2 Revenue/Income (Actual 06/30/21)
RPTTF amount should tie to the ROPS 20-21 total
distribution from the County Auditor-Controller 43 1,134,651 all income reported to others 3 Expenditures for ROPS 20-21 Enforceable Obligations
(Actual 06/30/21)
426,858 119 19,285 1,053,690 ROPS 17-18 $119 PPA applied in 20-21 ROPS 4 Retention of Available Cash Balance (Actual 06/30/21) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
285,000 0 262 52,221 18-19 PPA $262 applied in FY 21-22 ROPS 5 ROPS 20-21 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 20-21 PPA
form submitted to the CAC
80,961 20-21 PPA $80,961 applied in FY 23-24 ROPS 6 Ending Actual Available Cash Balance (06/30/21)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
96,390$ 0 $ 58,176$ 43 $ 0 $ $96,390 applied in ROPS 21-22, 19-20 PPA
$58,176 applied in FY 22-23 ROPS, Other $42
applied in FY 22-23 ROPS
No entry required
(Vallejo Successor Agency Name) Recognized Obligation Payment Schedule (ROPS 23-24) - Report of Cash Balances July 1, 2020 through June 30, 2021
(Report Amounts in Whole Dollars)
ROPS 20-21 Cash Balances
(07/01/20 - 06/30/21)
Fund Sources
Comments
Bond Proceeds
Item # Notes/Comments
(Vallejo Successor Agency Name) Recognized Obligation Payment Schedule (ROPS 23-24) - Notes July 1, 2023 through June 30, 2024 Attachment C
Type of Admin Costs 1/ Jul - Dec 2023 Jan - Jun 2024
Direct Administrative Costs:
Legal Expenses
Property Maintenance & Appraisal 2,000 2,000
Other (audit, consultants, postage, utilities, training, travel, office supplies, printing, etc.)
5,000 5,000
Indirect City Support Services 2/ 16,000 16,000
Total Administrative Expenses 23,000 23,000
Total Administrative Expenses Funded by RPTTF 46,000
Notes:
1/ Activities may be added, revised, or deleted from the listing as necessary and appropriate during the course of the the Successor Agency wind-down process. Costs shown for each category are estimates only. Actual costs required for each category may be higher or lower than the amount shown, not to exceed the aggregate total amount. 2/ Indirect cost recovery for administrative and financial activities will be charged based on the City's Indirect Cost plan developed by third-party consultant.
FY 2023/24 Vallejo Successor Agency - Administrative Budget