To: Successor to the Contra Costa County Redevelopment Agency
From: John Kopchik, Director, Conservation and Development
Report Title: ROPS 2024-25
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a resolution approving the Recognized Obligation Payment Schedule (“ROPS 24-25”) for the period of July 1, 2024, through June 30, 2025.
FISCAL IMPACT:
No impact to the General Fund. Since the Contra Costa County Redevelopment Agency dissolved (the “Dissolved RDA”), the tax allotment is now deposited in the Redevelopment Property Tax Trust Fund (“RPTTF”), which is administered by the County Auditor-Controller. Distributions are made semi-annually from the RPTTF to the Successor Agency by the County Auditor-Controller to fund the Successor Agency's administrative budget and Recognized Obligation Payment Schedule. These funds are distinct and separate from other funds used by the Department of Conservation and Development. According to State law, any obligation of the Successor Agency that cannot be funded by the RPTTF would not be an obligation of the County.
BACKGROUND:
This resolution adopts ROPS 24-25, which is included as Exhibit A to this report. After adoption by the Successor Agency, ROPS 24-25 will be submitted to the Countywide Oversight Board for approval. The Oversight Board is scheduled to meet on January 29, 2024. As required under Health and Safety Code Section 34179.6, ROPS 24-25 will be submitted to the State Controller's Office, Department of Finance (DOF) and the County Auditor-Controller and will be posted on the Successor Agency's website. The DOF must receive ROPS 24-25 no later than February 1, 2024.
ROPS 24-25 authorizes all payments to be made by the Successor Agency for enforceable obligations for the twelve-month time period between July 1, 2024, and June 30, 2025. The payments noted on the ROPS are estimates. In most cases, assumptions made for ROPS 24-25 were based on actual expenditures in the prior ROPS and expected expenditures in the upcoming period.
The title page of ROPS 24-25 shows that enforceable obligations require $8,960.983 from the Redevelopment Property Tax Trust Fund (the “RPTTF”), and $250,000 for Administrative RPTTF. This amount assumes the RPTTF has already set aside pass-through payments to taxing entities and administrative costs for the County Auditor-Controller.
CONSEQUENCE OF NEGATIVE ACTION:
Without approving the Recognized Obligation Payment Schedule, the County Auditor-Controller would not be able to allocate funds to the Successor Agency for staffing services and payment of recognized obligations during this twelve-month period, and the Successor Agency would risk defaulting on enforceable obligations.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF THE SUCCESSOR AGENCY FOR THE FORMER CONTRA COSTA COUNTY REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD JULY 2024 THROUGH JUNE 2025 FOR CONTRA COSTA COUNTY SUCCESSOR AGENCY.
WHEREAS, the California state legislature enacted Assembly Bill x1 26 (the “Dissolution Act") to dissolve redevelopment agencies formed under the Community Redevelopment Law (Health and Safety Code Section 33000 et seq .); and
WHEREAS, on January 17, 2012, and pursuant to Health and Safety Code Section 34173, the Board of Supervisors of the County of Contra Costa (the "Board of Supervisors") declared that the County of Contra Costa, a political subdivision of the State of California (the "County"), would act as successor agency (the "Successor Agency") for the dissolved Redevelopment Agency of the County of Contra Costa (the "Dissolved RDA") effective February 1, 2012; and
WHEREAS, on February 1, 2012, the RDA was dissolved pursuant to Health and Safety Code Section 34172; and WHEREAS, the Dissolution Act provides for the appointment of an oversight board (the "Oversight Board") with specific duties to approve certain Successor Agency actions pursuant to Health and Safety Code Section 34180 and to direct the Successor Agency in certain other actions pursuant to Health and Safety Code Section 34181; and
WHEREAS, pursuant to Assembly Bill 1484 enacted June 27, 2012, to amend various provisions of the Dissolution Act, the Successor Agency is now declared to be a separate legal entity from the County of Contra Costa; and
WHEREAS, on July 18, 2013, the Department of Finance issued the Successor Agency a "finding of completion" pursuant to Health and Safety Code Section 34179.7 and as a result of the issuance of the finding of completion, pursuant to 34191.4 the Successor Agency is authorized to: (1) place loan agreements between the Dissolved RDA and the County on the Recognized Obligation Payment Schedule (“ROPS “) and (2) utilize proceeds derived from bonds issued prior to January 1, 2011, in a manner consistent with the original bond covenants; and
WHEREAS, the ROPS 24-25 must be submitted by the Successor Agency to the Countywide Oversight Board for their approval in accordance with the Dissolution Act; and
WHEREAS, in accordance with Health and Safety Section 34179.6, the ROPS 24-25 will be submitted by the Successor Agency to the Countywide Oversight Board, Contra Costa County Administrative Officer, the Contra Costa County Auditor-Controller, and the State Department of Finance; and
WHEREAS, the Successor Agency is charged with paying for and completing the enforceable obligations of the Dissolved RDA (each as further defined in Health and Safety Code Section 34171(d)), disposing of the properties and other assets of the Dissolved RDA, and unwinding the affairs of the Dissolved RDA; and
WHEREAS, the accompanying staff report provides supporting information upon which the actions set forth in this Resolution are based.
e
NOW, THEREFORE, BE IT RESOLVED tdthe Successor Agency to the Contra Costa County Redevelopment Agency does hereby finds, resolves, approves, and determines that the foregoing recitals are true and correct, and together with information provided by the Successor Agency staff and the public, form the basis for the approvals, findings, resolutions and determinations set forth below.
BE IT FURTHER RESOLVED that under Health and Safety Code Section 34180(g), the Oversight Board must approve establishment of a ROPS for the Successor Agency.
BE IT FURTHER RESOLVED in accordance with the Dissolution Act, the Successor Agency to the Contra Costa County Redevelopment Agency hereby approves ROPS 24-25, including the agreements and obligations described on the ROPS 24-25, and hereby determines that such agreements and obligations constitute "enforceable obligations" and "recognized obligations" for all purposes of the Dissolution Act.
BE IT FURTHER RESOLVED in accordance with the Dissolution Act, the Successor Agency to the Contra Costa County Redevelopment Agency directs staff to forward ROPS 24-25, to the Countywide Oversight Board for consideration on January 29, 2024, with submittal to the Department of Finance by February 1, 2024.