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Consider adopting a resolution approving a Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the City of Suisun City Successor Agency for the period of July 1, 2019 through June 30, 2020
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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 (SCOB) adopt the resolution approving a Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the City of Suisun City Successor Agency for the period of July 1, 2019 through June 30, 2020.
DISCUSSION:
The following provides an overview of deadlines and process associated with the ROPS:
ROPS Submittal Deadline - February 1, 2019, is the deadline to submit a ROPS covering the period of July 1, 2019, through June 30, 2020 to the Department of Finance (DOF).
ROPS Submittal/Approval Process - The Successor Agency must submit the ROPS to the County Auditor-Controller, County Administrative Officer, and the DOF at the same time as the ROPS is submitted to the Solano Consolidated Oversight Board.
ROPS Form - The DOF has provided the form for this ROPS period.
Penalties - A penalty may be levied on the City of $10,000 per day for each day the ROPS is delinquent. Failure to submit the ROPS within 10 days of the deadline will result in a 25% reduction of the Successor Agency’s maximum administrative cost allowance for the period covered by the delinquent ROPS.
Pursuant to Health and Safe Code Section 34171 (b), an administrative cost allowance is provided to the Successor Agency. The Successor Agency developed an administrative budget for FY2019/20 that takes into account the winding down of operations of the Successor Agency. The attached schedules include a summary of obligations, anticipated expenditures, report of cash balances, and an administrative budget. The administrative budget for FY2019/20 is consistent with the previously adopted FY2018/19 administrative budget. The agency has total obligations of $10,928,472 for ROPS 19-20 including the estimated administrative expenses of $200,000.
The current ROPS includes line items that were listed on previously adopted ROPS, but contain updated figures to reflect the upcoming fiscal year (July 1, 2019, to June 30, 2020). Three new line items were added. The first is the cost associated with the Civic Center Blvd terminus appraisal to determine the potential of a conservation easement estimated to be $8,000. The second cost is associated with the Marina East Restoration and Marina Promenade Extension Plan to complete environmental studies to assess the potential of converting the Marina east area into a park and extending the existing promenade from the terminus of Civic Center Blvd through and around Whispering Bay/ Marina Circle area estimated to be $62,000. Finally, the last cost is associated with the Parking Implementation Plan to complete a parking implementation plan for long term parking solutions in the Downtown Waterfront District estimated to be $72,000.
Additionally, pursuant to the loan and operation contract between the California Department of Boating and Waterways, Suisun City, and Redevelopment Agency, the City and Agency shall pay for all administration and routine maintenance expenses from revenue sources other than those originating from fees, rents and other charges related to the operation of the project. With that said, one important line item to highlight under the Marina Construction Loan is the Dredge Phase I and II Project for the dredging to maintain the water for boating traffic estimated to cost $4,197,096. Maintaining the Marina facilities is necessary as it is encumbered by the aforementioned loan from the State of California Department of Boating and Waterways. In addition to the facility repairs and related improvements to the Marina such as upkeep and installation of the fire suppression system, it is imperative to include the Dredge project as part of the ROPS 19-20 as it is considered routine maintenance expected to occur every five to ten years.
If necessary, there is an opportunity to submit an amended ROPS no later than October 1, 2019, if the Solano Consolidated Oversight Board makes a finding the revision is necessary for the payment of approved enforceable obligations during the second half of the ROPS period (January 1, 2020 through June 30, 2020).
The full ROPS is attached. Beyond costs associated with the timely sale of property, the ROPS includes monies for debt and Successor Agency administration costs.
FINANCIAL IMPACT:
The ROPS lists outstanding obligations of the dissolved Agency that are to be performed by the RDA Successor Agency. All obligations listed will be included in the FY2019-20 annual budget. The administrative budget consist of revenues and expenses within the annual maximum of $250,000 administrative cost allowance provided pursuant to state law for the period ending June 30, 2019. The proposed administrative budget totals $200,000.
ALTERNATIVES:
The SCOB could direct the Successor Agency to amend or remove items on ROPS 19-20. Also, the SCOB could choose not to adopt the resolution approving the ROPS for the period 2019-2020; however, this is not recommended because the Successor Agency may be charged $10,000 per day in civil fines.
OTHER AGENCY INVOLVEMENT:
None.