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CALL AND NOTICE OF
SPECIAL MEETING
AT 6:30 PM
OF THE
VALLEJO CITY COUNCIL AS
GOVERNING BOARD OF THE
SUCCESSOR AGENCY TO THE
FORMER VALLEJO
REDEVELOPMENT AGENCY
DECEMBER 19, 2023
COUNCIL CHAMBERS
555 Santa Clara Street, Vallejo,
California
CHAIR
Robert H. McConnell
BOARDMEMBERS:
Vice Chair Rozzana Verder-
Aliga, EdD
Cristina Arriola
Peter Bregezner
Mina Loera-Diaz
Diosdado “J.R.” Matulac
Charles Palmares
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. CONSENT CALENDAR AND APPROVAL OF AGENDA
A. ADOPT A RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 1, 2024 THROUGH JUNE 30, 2025 ("ROPS 24-25")
Recommendation: Adopt a Resolution approving the Recognized Obligations Payment Schedule for July 1, 2024 through June 30, 2025 (“ROPS 24-25”).
Contact: Rekha Nayar, Finance Director, (707) 648-4592
[email protected]
4. ACTION CALENDAR
5. ADJOURNMENT
Hybrid Options are available for members of the public to participate. To participate remotely:
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Option to join by phone:
Dial (669) 900-6833
Enter Meeting ID: 914 0075 0676#
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For additional instructions on how to speak during public comment, please visit, www.cityofvallejo.net/publiccomment
Dated: Tuesday, December 12, 2023
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 City Council as the Governing Board of the Successor 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., Tuesday, December 12, 2023.
Dated: Tuesday, December 12, 2023
Dawn G. Abrahamson, City Clerk
CONSENT CALENDAR 3.A.
DATE: December 19, 2023
TO: Chair and Members of the Successor Agency
FROM: Rekha Nayar, Finance Director
SUBJECT: ADOPT A RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 1, 2024 THROUGH JUNE 30, 2025 ("ROPS 24-25")
RECOMMENDATION
Adopt a Resolution approving the Recognized Obligations Payment Schedule for July 1, 2024 through June 30, 2025 (“ROPS 24-25”).
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 $1.3 million of RPTTF funding for the July 1, 2024 to June 30, 2025 ROPS reporting period.
Following consideration of ROPS 24-25 by the Successor Agency, ROPS 24-25 is scheduled for consideration by the Solano Consolidated Oversight Board to the Successor Agency in January 2024. The approved ROPS 24-25 is due to the State Department of Finance (DOF) by February 1, 2024.
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 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 24-25 is presented as Exhibit 1 to the proposed Resolution (Attachment 1).
FISCAL IMPACT
The Agency’s ROPS 24-25 payment requests total $1.4 million, as detailed below. These payments will be financed from RPTTF and other funds.
Date: December 19, 2023
Subject: ADOPT A RESOLUTION APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR JULY 1, 2024 THROUGH JUNE 30, 2025 ("ROPS 24-25")
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, $326,100 is proposed for scheduled 2024-25 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 $144,000.
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 24-25 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. $1,000,000 is proposed for City loan repayments in the 2024-25 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 24-25 CAO Stamp
2. Attachment 1-Exhibit 1 Vallejo ROPS 24-25 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, 2024 TO JUNE 30, 2025 (ROPS 24-25)
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, 2024 through June 30, 2025 (“ROPS 24-25”), 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, 2024;
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, 2024 through June 30, 2025 ROPS (ROPS 24-25), 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 19, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ROBERT MC CONNELL, Chairperson
ATTEST:
DAWN G. ABRAHAMSON, Secretary
Recognized Obligation Payment Schedule (ROPS 24-25) - Summary Filed for the July 1, 2024 through June 30, 2025 Period Successor Agency: Vallejo
County: Solano
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
24-25A Total
(July -
December)
24-25B Total
(January -
June)
ROPS 24-25
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 36,649 $ - $ 36,649 B Bond Proceeds 25,502 - 25,502
C Reserve Balance - - -
D Other Funds 11,147 - 11,147
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 248,676 $ 1,086,775 $ 1,335,451 F RPTTF 225,676 1,063,775 1,289,451
G Administrative RPTTF 23,000 23,000 46,000
H Current Period Enforceable Obligations (A+E) $ 285,325 $ 1,086,775 $ 1,372,100 Certification of Oversight Board Chairman:
Name 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. /s/
Signature Date
Attachment 1-Exhibit 1
Vallejo
Recognized Obligation Payment Schedule (ROPS 24-25) - ROPS Detail July 1, 2024 through June 30, 2025
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
24-25
Total
ROPS 24-25A (Jul - Dec)
24-25A
Total
ROPS 24-25B (Jan - Jun)
24-25B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
$9,111,926 $1,372,100 $25,502 $- $11,147 $225,676 $23,000 $285,325 $- $- $- $1,063,775 $23,000 $1,086,775 8 Advances
from City
City/
County
Loan
(Prior 06/
28/11),
Cash
exchange
02/01/
2015
07/01/2032 City of
Vallejo
General
Fund
Redevelopment
Activities
Merged
Project
Area
2,750,697 N $1,000,000 - - - - - $- - - - 1,000,000 - $1,000,000 30 2001 Vallejo
Housing Set-
aside
Fees 10/20/
2000
10/01/2032 Bondligistix,
Wells Fargo
Bank
Debt Service
Admin Fee
Low-
Mod
5,900 N $5,900 - - 3,900 - - $3,900 - - - 2,000 - $2,000 31 2001 Vallejo
Housing Set-
aside
Bonds
Issued
On or
Before
12/31/10
08/06/
2001
10/01/2031 Wells Fargo
Bank
Vallejo Housing
Set Aside Bond
Low-
Mod
2,549,825 N $320,200 25,502 - 7,247 225,676 - $258,425 - - - 61,775 - $61,775 33 Administration Admin
Costs
07/01/
2016
06/30/2017 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/
County
Loan
(Prior 06/
28/11),
Cash
exchange
01/01/
2016
07/01/2032 City of
Vallejo
Redevelopment
Activities
Merged 3,555,504 N $- - - - - - $- - - - - - $-
Vallejo
Recognized Obligation Payment Schedule (ROPS 24-25) - Report of Cash Balances July 1, 2021 through June 30, 2022
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.
A B C D E F G H
ROPS 21-22 Cash Balances
(07/01/21 - 06/30/22)
Fund Sources
Comments
Bond Proceeds 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 07/01/21)
RPTTF amount should exclude "A" period distribution
amount.
381,390 139,399 52,263
2 Revenue/Income (Actual 06/30/22)
RPTTF amount should tie to the ROPS 21-22 total
distribution from the County Auditor-Controller
93 1,072,727
3 Expenditures for ROPS 21-22 Enforceable Obligations
(Actual 06/30/22)
96,390 262 52,221 1,072,727 ROPS 18-19 PPA applied ($262) 4 Retention of Available Cash Balance (Actual 06/30/22) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
239,000 required retention for debt service reserve
(equal to 10% of outstanding balance)
5 ROPS 21-22 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 21-22 PPA
form submitted to the CAC
No entry required - No PPA for ROPS 21-22
6 Ending Actual Available Cash Balance (06/30/22)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$46,000 $- $139,137 $135 $- $46,000 applied in ROPS 23-24. $139,137 applied in ROPS 22-23 and ROPS 23-24.
$135 applied in ROPS 22-23 and ROPS
23-24.
Vallejo
Recognized Obligation Payment Schedule (ROPS 24-25) - Notes July 1, 2024 through June 30, 2025
Item # Notes/Comments
8 30
31 33
47 Attachment 2
Type of Admin Costs 1/ Jul - Dec 2024Jan - Jun 2025
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 2024/25 Vallejo Successor Agency - Administrative Budget