Title
Recommendation to Authorize the Interim City Manager to Submit the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Period from July 1, 2026 to June 30, 2027 to the Countywide Oversight Board. (City Manager)
Body
To: Honorable Chair and Members of the Successor Agency to the Community Improvement Commission of the City of Alameda
From: Adam Politzer, Interim City Manager
EXECUTIVE SUMMARY
Staff recommends authorizing the Interim City Manager to submit the Recognized Obligation Payment Schedule (ROPS 2026-27) and Administrative Budget for the period from July 1, 2026 to June 30, 2027 to the County of Alameda Countywide Oversight Board (Countywide Oversight Board). Once the Countywide Oversight Board and California Department of Finance (DOF) approve the ROPS, the Successor Agency to the Community Improvement Commission (CIC) of the City of Alameda (Successor Agency) can pay its financial obligations for Fiscal Year (FY) 2026-27.
BACKGROUND
State Law enacted by Assembly Bill X126 (2011), as modified by Assembly Bill 1484 (2012), and Senate Bill 107 (2015), dissolved all redevelopment agencies in California and established successor agencies to administer remaining obligations of the former redevelopment agencies. The City of Alameda (City) serves as the Successor Agency to Alameda’s former redevelopment agency and the City Council serves as the Successor Agency Board (collectively, Successor Agency).
The Successor Agency is obligated to prepare a Recognized Obligation Payment Schedule (ROPS) for each fiscal year listing all enforceable obligations payable, and the source of their payment, during that twelve-month period. The Successor Agency can only pay obligations listed on the ROPS schedule approved by the Countywide Oversight Board and DOF. The Countywide Oversight Board is scheduled to consider the ROPS on January 23, 2026. The ROPS will then be submitted to DOF prior to the February 1 statutory deadline.
DISCUSSION
The following is an overview of the major outstanding obligations listed on the Successor Agency’s ROPS schedule for FY 2026-27, attached as Exhibit 1. All items have been DOF-approved on previous ROPS schedules.
(1) Bonds (ROPS No. 56, 57, 58, 59, 13)
The Successor Agency has two outstanding bond obligations:
• 2014 Bonds (ROPS No. 56 and 57). Approximately $29.8 million in debt service remains on the bonds. Debt service on the bonds continues through 2033.
• 2017 bonds (ROPS No. 58 and 59). Approximately $14.2 million in debt service remains on the bonds. Debt service on the bonds continues through 2041.
ROPS No. 56 and 58 identify payments to bond holders, while ROPS No. 57 and 59 identify funds required to be reserved for payments due to bond holders in the subsequent fiscal year. The Successor Agency is also responsible for trustee fees (ROPS No. 13) in connection with the bonds.
(2) Independence Plaza Agreement (ROPS No. 28)
The Independence Plaza agreement is a commitment by the Successor Agency to provide an operating subsidy for the 186-unit Independence Plaza affordable senior apartment property. Payments reflect the subsidy required to operate and maintain the units. The payment schedule for this project expires January 1, 2027.
(3) Boatworks Settlement Agreement (ROPS Nos. 33 and 34)
This settlement agreement obligation of up to $4.5 million owed to the developer of a residential project is the subject of pending litigation in which the City has taken the position that the settlement agreement has expired. However, the Successor Agency is obligated to continue to list the Agreement on its ROPS schedule, with no payment identified until the litigation is resolved.
(4) Guyton Judgment and Settlement Agreement and Alameda Unified School District Pass-Through Agreement (ROPS No. 36)
The Successor Agency is a party (as a successor in interest) to the agreement between the CIC and AUSD pursuant to Health and Safety Code Section 33401, dated November 12, 1991 (Pass-Through Agreement), which provides that eight percent (8%) of property taxes allocated for the Business and Waterfront Improvement Project (BWIP) project area are designated for use by AUSD for affordable housing purposes. AUSD’s use of the funds must comply with the terms of a separate 1990 Guyton Judgement and Settlement Agreement (Settlement Agreement), which requires the City to undertake certain activities to further affordable housing production. AUSD has entered into a Memorandum of Understanding (MOU) with the Housing Authority of the City of Alameda (AHA) to develop affordable housing, including for qualifying AUSD employees.
The Pass-Through Agreement requires the Successor Agency and City review and approve the housing programs and projects and associated funding requests. The funding request for FY 2026-27 was previously approved by the Successor Agency and City on January 7, 2025. The $1 million identified on ROPS 26-27 is designated for The Poplar affordable housing development at 2615 Eagle Avenue, which will include an estimated 40 to 50 affordable units to be constructed on an approximately one acre parcel purchased by AHA from AUSD.
(5) Administrative Budget (ROPS No. 46)
Administrative costs are included as ROPS No. 46 and are itemized in the proposed administrative budget. The proposed budget is within the applicable statutory maximum of $250,000.
ALTERNATIVES
Staff recommends that the Successor Agency authorize the Interim City Manager to submit the ROPS and Administrative Budget for the Period from July 1, 2026 to June 30, 2027 to the Countywide Oversight Board.
There are no alternatives to the Successor Agency authorizing the Interim City Manager to submit the ROPS to the County Oversight Board and DOF, as the Successor Agency is statutorily obligated to do so. Enforceable obligations could be reduced or removed from the ROPS, but that would mean that the Successor Agency believes those items/activities are no longer enforceable obligations to be paid for with Redevelopment Property Tax Trust Fund monies.
FINANCIAL IMPACT
There is no financial impact from authorizing the Interim City Manager to submit ROPS FY 2026-27 to the Countywide Oversight Board and DOF to pay existing enforceable obligations.
Failure to submit the ROPS to the Oversight Board and Department of Finance by the deadlines provided in the redevelopment dissolution statutes would result in the Successor Agency not receiving necessary funds to pay required obligations and the City, as opposed to the Successor Agency, would be subject to penalties of ten thousand dollars ($10,000) per day for every day the ROPS is not submitted pursuant to Health & Safety Code section 34177 (m)(1)(B).
All obligations approved by DOF are paid from Redevelopment Property Tax Trust Fund monies (Fund 701).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
ROPS 2026-27 has been prepared on a template provided by DOF in accordance with State law. Following approval by the Countywide Oversight Board, ROPS 2026-27 will be submitted to DOF for its approval.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in CEQA Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the Interim City Manager to submit the Recognized Obligation Payment Schedule and Administrative Budget for the Period from July 1, 2026 to June 30, 2027 to the Countywide Oversight Board.
Respectfully submitted,
Ross McCarthy, Finance Director
Exhibit:
1. FY 2026-27 ROPS Schedule and Administrative Budget