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Consider adopting a resolution approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Successor Agency to the Former Redevelopment Agency of the City of Suisun City for the period from July 1, 2025, through June 30, 2026
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _X _
RECOMMENDATION:
It is recommended that the Solano Consolidated Oversight Board (Board) adopt the resolution approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Successor Agency to the Former Redevelopment Agency of the City of Suisun City (SA) for the period from July 1, 2025, through June 30, 2026.
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. All agencies were subsequently dissolved as of February 1, 2012, and a Successor Agency was designated to complete the work of the Agency and satisfy the outstanding financial obligations. 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.
Pursuant to HSC Section 34177(l), successor agencies must submit their annual Recognized Obligation Payment Schedules (ROPS) and HSC 34177(j) requires the successor agencies to prepare an administrative budget and submit both to the Board for review and approval. The ROPS must be approved by the State Department of Finance (DOF) before any distribution of funds by the County Auditor-Controller.
The Board is being asked to approve the ROPS 25-26 which covers July 1, 2025 - June 30, 2026 (Attachment B) for the SA. The total amount to be funded by the Redevelopment Property Tax Trust Fund (RPTTF) is $11,886,834 of which $11,636,834 is for enforceable obligations and $250,000 is for administrative expenditures. In addition, the SA is applying other funds (i.e. rent, loan repayments, etc.) in the amount of $308,345 that it has accumulated to offset enforceable obligations.
Pursuant to Health and Safety Code section 34171(b)(4), administrative costs are limited to the greater of $250,000 or 3% of the property tax distributed to the Successor Agency to pay for enforceable obligations in the preceding fiscal year, as reduced by the administrative cost allowance (ACA) and loan repayments to the sponsoring entity. Furthermore, administrative costs are not to exceed 50% of property taxes distributed for enforceable obligations in the preceding fiscal year, as reduced by the ACA and any loan repayments made to the sponsoring entity. Also submitted as part of this annual report for review and approval by the Board is the proposed administrative budget totaling $250,000 for FY2025-2026 (Attachment C) which is within the limits prescribed under Health and Safety Code section 34171(b)(4).
The ROPS 25-26 includes the following forms provided by the DOF:
• Page 1 - A summary of the obligations to be paid.
• Page 2 - Anticipated expenditures: bond payments and expenditures for contracts, leases and agreements.
• Page 3 - Report of cash balances: reports revenues received with actual and anticipated expenditures and reserves through 6/30/23.
• Page 4 - Notes are optional.
All items on this ROPS have been previously reviewed and approved by the SA and Board. There are no new items on this ROPS. However, there are added requests related to Item #4, the Marina Construction Loan.
For the fiscal year 2025-26, the Successor Agency is requesting funding for essential repairs and operational support related to the Marina Berth operations and Marina infrastructure. This request aligns with City Resolution 90-50 (1990) and the Suisun City Redevelopment Agency Board’s authorization for a contract with the State Department of Boating and Waterways, accepting a loan in the amount of $10.3 million for the development of the Suisun City marina projects. Both resolutions referenced a feasibility study, which concluded that the project was "engineeringly and financially feasible and economically justified. The feasibility study also outlined that the Redevelopment Agency would cover any project cost discrepancies and future operating deficits using agency funds.
Further, in 1991, the City Council and the Redevelopment Agency Board adopted Resolution No. 91-23 and Resolution No. RA 91-19, respectively. In these resolutions, both bodies resolved that they "intend to accept, in perpetuity, the responsibility and cost for the operation and maintenance of the Suisun City Marina, primarily funded by Redevelopment revenues, to the extent that marina revenues may not be sufficient to cover such costs after debt service, following its construction."
The Successor Agency is of the opinion that the Marina Loan Construction contract justifies the request to fund the following items:
• $85,500 - Annual Maintenance and Inspection- Floating Concrete Dock System including repairs.
• $300,000 - Operating deficit for the marina berth, due to insufficient revenue to cover operating expenses.
• $169,706 - Remodel of the marina launch ramp restroom.
• $177,270 - Remodel of the marina north-end restroom.
• $5,979,000 - Rehabilitation of the North Basin parking lot, a critical component of the marina’s functionality. After the dissolution of the Redevelopment Agency, funds for addressing the North Basin parking lot's deteriorating conditions were no longer available. The pavement shows extensive heaving and settlement, creating stormwater ponding and drainage issues. Additionally, the surrounding sidewalks, curbs, and gutters have deteriorated, compromising safety and accessibility. This parking lot is vital for safe and efficient access to the marina and surrounding areas. The City is requesting ROPS (Recognized Obligation Payment Schedule) funding to address these deficiencies, which are essential for improving safety and enhancing the experience of both residents and visitors to this key waterfront area.
The SA will file, post, mail or otherwise deliver via electronic mail, internet posting, and/or hardcopy, all notices and transmittals necessary or convenient in connection with the approval of the ROPS.
FINANCIAL IMPACT:
Funding of the obligations listed in the ROPS 25-26 will be subject to approval by the DOF and dependent upon the availability of sufficient redevelopment property tax revenues, as determined by the County Auditor-Controller.
ALTERNATIVES:
The Board could direct the SA to amend or remove items on the ROPS 25-26. However, this alternative is not recommended as enforceable obligations are required to be paid to fulfill the terms of the debt agreements. The Board has discretion over modification/approval of the Administrative Cost Allowance. The Successor Agency evaluated their administrative cost requirements and submitted their budget in accordance with HSC 34171(b)(4).
Additionally, the Board could choose not to adopt the resolution approving the ROPS 25-26 for the FY2025-2026; however, this is not recommended because the Successor Agency may be charged $10,000 per day in civil fines for each day the ROPS has not been submitted by the statutory due date of February 1, 2025.
OTHER AGENCY INVOLVEMENT:
None.