City of Culver City, California
Agenda Item Report
Meeting Date: _03/14/11_ Item Number: JC-3
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM: FOUR
FIFTHS VOTE REQUIREMENT - Approve Budget Amendments Related to Transfer
of Cash Assets from the Redevelopment Agency to the City.
Contact Person/Dept.: Jeff Muir/Finance Phone Number: 310-253-6006
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (Email) Meetings and Agendas – City Council and Redevelopment
Agency (03/10/11); (Email) Ongoing Topics – Fiscal and Budget Issues (03/10/11)
Department Approval:
Jeff Muir
Agency General Counsel Approval:
Murray Kane (03/10/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (03/10/11)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (03/10/11)
City Manager/Executive Director Approval:
John M. Nachbar (03/10/11)
RECOMMENDATION:
Staff recommends the City Council and Redevelopment Agency Board (Agency
Board) adopt the proposed budget amendments related to the transfer of Agency
assets under various agreements approved by the City Council and Agency Board.
City budget amendments require a 4/5
ths
vote.
BACKGROUND/DISCUSSION:
As a result of the governor’s proposal to eliminate redevelopment agencies
throughout the State, the Agency Board has been taking various actions to transition
activities of the Agency to the City in order to implement the Redevelopment Plan, to
create affordable housing, and redevelop, revitalize and/or eliminate blight in the
Project Areas as set forth in the Cooperation Agreement dated December 15, 2009,
as amended by the Implementing Agreement approved on January 15, 2011, the
Cooperation Agreement dated January 15, 2011, as amended by a First
Amendment to Cooperation Agreement dated February 22, 2011, the Cooperation
Agreement dated February 22, 2011, and related implementing documents
(collectively the “Cooperation Agreements”).
On Monday, March 7, 2011, the Agency Board adopted a resolution exercising the
Agency’s option under prior approved agreements to transfer all of its assets and
obligations to the City of Culver City and use the Agency’s assets on hand to prepay
its payment obligations to the City under the Cooperation Agreements. City of Culver City, California
Agenda Item Report
In order to account for the transfer of assets from the Agency to the City, the Chief
Financial Officer will set up new Special Revenue Funds for the City. At a minimum,
the City will need to establish a fund (“Operations Fund”) to account for assets
transferred to the City related to activities included in the Agency Board Adopted
Budget for Fiscal Year 2010/2011 (including Housing), such as administrative costs
for current staffing costs paid to the City, programming costs for Agency and
Housing sponsored programs and events, and operating and maintenance costs for
Agency and Housing assets transferred to the City under the aforementioned
agreements. The City will also need to establish a fund (“Capital Fund”) to account
for assets transferred to the City as prepayment for projects identified in the various
agreements. Additional Special Revenue Funds may be necessary to separately
track tax exempt bond proceeds and Housing Set Aside funds. The staff proposal
authorizes the City Manager/Executive Director and Chief Financial Officer to create
all necessary funds and take any additional related actions to effectuate the transfer
and appropriate accounting thereof.
Consequently, staff is recommending a number of City and Agency budget
amendments related to the approved agreements (see proposed amendments
below). If approved, staff will assign appropriate fund numbers and set up all related
accounts within each fund.
Redevelopment Agency Amendments:
A. Increase “Transfer out to Operations Fund” by $6,457,724; and
B. Increase “Transfer out to Capital Fund” by $95,000,000.
City Amendments for New Operations Fund:
A. Increase “Transfer in from Redevelopment Agency” by $6,457,724; and
B. Appropriate $6,457,724in expenditures in the Operations Fund to fund
activities included in the Agency Board Adopted Budget for Fiscal Year
2010/2011.
City Amendments for New Capital Fund:
A. Increase “Transfer in from Redevelopment Agency” by $95,000,000; and
B. Appropriate $22,551,746 in expenditures in the Capital Fund to fund the
Capital Projects included in the various agreements and the Agency Board
Adopted Budget for Fiscal Year 2010/2011, as follows:
o Adams Blvd Improvements: $100,000
o Globe Ave Properties: $2,550,870
o Hayden Tract Improvements: $2,307,547
o Irving Place: $580,000
o Parking Participation: $1,362,981
o Public Works Street Improvements: $1,239,057 City of Culver City, California
Agenda Item Report
o Public Facility Improvements: $200,000
o Seismic Rehab: $1,000,000
o Sepulveda Blvd AIP and MTA Grant: $381,563
o Smiley/Blackwelder Improvements: $967,400
o Town Plaza Expansion: $3,248,069
o Washington Blvd AIP Phase 1: $545,555
o Washington Blvd AIP Phase 2: $541,727
o Washington Blvd AIP Phase 3: $552,500
o Washington/Centinela Parking: 409,892
o Washington/National Coop Agreement: $2,000,000
o Washington/National Infrastructure: $4,564,585
City budget amendments require a 4/5
ths
vote.
The remainder of the funds in the Capital Fund will be appropriated by City Council
through the budget process.
Since there is still some uncertainty related to how these funds will need to be
tracked, staff is recommending that City Council authorize the City
Manager/Executive Director and Chief Financial Officer (CFO) the authority to create
additional funds as necessary and administratively transfer budget appropriations
between funds. If granted, the City Manager/Executive Director and the CFO will not
have authority to increase the total appropriation amount above what is being
proposed, they will only have the authority create additional Special Revenue Funds
and move appropriations between funds as required to implement this actions and
the transactions approved by the City Council and Agency Board via approval of the
various agreements.
FISCAL ANALYSIS:
In total, the Agency is transferring approximately $100 million in cash and accounts
receivable to the City. The recommended budget amendments outlined in this
report will provide the budget authority necessary for the City to meet the obligations
outlined in the various agreements and the Agency Board Adopted Budget for
Fiscal Year 2010/2011 Budget.
ATTACHMENTS:
None
MOTION:
That the City Council: City of Culver City, California
Agenda Item Report
Approve the following budget amendments:
A. Increase “Transfer in from Redevelopment Agency” to Operations Fund by
$6,457,724; and
B. Appropriate $6,457,724in expenditures in the Operations Fund to fund
activities included in the Agency’s FY 2010-11 Adopted budget; and
C. Increase “Transfer in from Redevelopment Agency” to the Capital Fund by
$95,000,000; and
D. Appropriate $100,000 in the Capital Fund for Adams Blvd Improvements; and
E. Appropriate $2,550,870 in the Capital Fund for Globe Ave Properties; and
F. Appropriate $2,307,547 in the Capital Fund for Hayden Tract Improvements;
and
G. Appropriate $580,000 in the Capital Fund for Irving Place; and
H. Appropriate $1,362,981 in the Capital Fund for Parking Participation; and
I. Appropriate $1,239,057 in the Capital Fund for Public Works Street
Improvements; and
J. Appropriate $200,000 in the Capital Fund for Public Facility Improvements;
and
K. Appropriate $1,000,000 in the Capital Fund for Seismic Rehab; and
L. Appropriate $381,563 in the Capital Fund for Sepulveda Blvd AIP and MTA
Grant; and
M. Appropriate $967,400 in the Capital Fund for Smiley/Blackwelder
Improvements; and
N. Appropriate $3,248,069 in the Capital Fund for Town Plaza Expansion; and
O. Appropriate $545,555 in the Capital Fund for Washington Blvd AIP Phase 1;
and
P. Appropriate $541,727 in the Capital Fund for Washington Blvd AIP Phase 2;
and
Q. Appropriate $552,500 in the Capital Fund for Washington Blvd AIP Phase 3;
and City of Culver City, California
Agenda Item Report
R. Appropriate $409,892 in the Capital Fund for Washington/Centinela Parking;
and
S. Appropriate $2,000,000 in the Capital Fund for Washington/National Coop
Agreement; and
T. Appropriate $4,564,585 in the Capital Fund for Washington/National AIP.
And
Authorize the City Manager/Executive Director and Chief Financial Officer to
create additional Special Revenue Funds and administratively transfer
appropriations between Special Revenue Funds, if necessary, as needed to
implement this action and the various agreements.
A budget amendment requires 4/5
ths
vote
That the Agency Board:
Approve the following budget amendments:
A. Increase “Transfer out to Operations Fund” by $6,457,724; and
B. Increase “Transfer out to Capital Fund” by $95,000,000.