PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 11/02/2026
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION TO PROCEED WITH AMENDMENT NO. #4 TO THE FY 2025-27 CITY COUNCIL PRIORITY WORKPLAN, UNDER MAJOR POLICY AREA: FOCUS ON ECONOMIC DEVELOPMENT & FISCAL DIVERSIFICATION TO ADD NEW POLICY NO. #418 - EXPLORE THE FEASIBILITY OF DRAFTING LEGISLATION TO PROTECT CITY REVENUES GENERATED FROM CASINO SAN PABLO.
CEQA: This is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2025-2027 Council Priority Workplan Compliance Statement
Under Major Policy Goal: Focus on Economic Development and Fiscal Diversification would consider adding a new policy amendment to the FY 2025-27 City Council Priority Workplan, effective April 7, 2025.
CEQA Compliance Statement
This proposed action is not a project under CEQA; although, particular projects in the Workplan may be subject to CEQA and require additional review.
BACKGROUND
After the July 30, 2026, Federal Department of Interior (DOI) decision on the proposed Solano County/Vallejo casino project, and the September 30, 2026 Federal District Court ruling upholding the DOI’s decision, the City Manager and City Attorney met with the Casino/Tribe Ad Hoc Subcommittee to discuss protecting the City’s casino revenue under its Municipal Services Agreement (MSA) with the Lytton Rancheria Band of Pomo Indians.
Under the adopted MSA, the San Pablo Lytton Casino currently provides nearly 59% of the City’s annual General Fund revenue or nearly $31M annually based on previously approved and reported Annual Comprehensive Financial Report (ACFR) financial data, effective July 1, 2026.
Proposed Policy Workplan Amendment #4
On October 14, 2026, the City Manager and the City Attorney’s Office met with the Casino/Tribe Ad-Hoc Subcommittee. After staff provided an update, the Subcommittee supported staff’s recommendation that the City Council formally consider amending the FY 2025-27 Council Priority Workplan (Workplan) at its regular meeting on November 2, 2026. The proposed Policy Amendment #4 before the City Council would include the following under consideration
MAJOR POLICY AREA: Focus on Economic Development & Fiscal Diversification
Proposed Policy No. #418:
“Explore the feasibility of drafting State legislation to protect City revenues generated from Casino San Pablo through the Municipal Services Agreement (MSA); thereby, safeguarding municipal services from potential revenue displacement caused by competing native gaming casinos established by federal and state authorities in other host communities or cities.”
City Manager Recommendation
If the proposed Resolution is adopted this evening, this item will be incorporated into the approved Workplan document.
Policy Amendment #4 authorizes City staff to proceed with the following policy implementation, including but not limited to, the following:
1. Authorize City staff to finalize Proposed Legislation Framework: Tribal Gaming Host Community Fiscal Protection Act, to include acquiring Special Legal Counsel which specializes in native gaming to assist the City with the legislation package; and
2. Direct staff to verify MSA terms and revenue figures and to commission an independent, third-party market study of the proposed Vallejo project’s revenue impact using Federal EA assessment (2024); Funding Source: One-time funds from FY 2026-27 CM Contingency Operating Reserve (Fund 190); and
3. Consult with Lytton Rancheria Band/Casino San Pablo officials before any bill is introduced via City’s lobbyist, Townsend Public Affairs (TPA); and
4. Meet with the City’s state legislative delegation (i.e. State Assemblymember Buffy Wicks and State Senator Jesse Arreguin) on legislative approach and sponsorship of San Pablo’s legislative package via TPA; and
5. Support coalition outreach to Contra Costa County, neighboring cities, and allied tribal governments (Optional - For Discussion first with Lytton Band officials).
FISCAL IMPACT
None associated with this report. Additional costs will be determined for any professional services or legal costs needed for policy implementation and subject to the City Manager’s Budget and Contract Authority in effect. Funding would be incurred through the FY 2026-27 City Manager Operating Contingency Reserve (Fund 190). No appropriation is being sought for this agenda item at this time.
ATTACHMENTS
Att A. Resolution
Att B. Revised FY 2025-27 Council Priority Workplan with Proposed Policy Amendment #4 included