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Title:
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Approval of a Cooperation Agreement between the City of Culver City and the Culver City Redevelopment Agency Relating to the Funding of Public Infrastructure Improvements.
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City of Culver City, California
Agenda Item Report
Meeting Date: 12/07/2009 Item Number: JPH-1
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM: JOINT
PUBLIC HEARING - Approval of a Cooperation Agreement between the City of
Culver City and the Culver City Redevelopment Agency Relating to the Funding of
Public Infrastructure Improvements.
Contact Person/Dept.: John Fisanotti Phone Number: (310) 253-5767
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [X] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Notice of Public Hearing was published in the Culver City News on
November 19 and 26, 2009. Meetings and Agendas – Redevelopment Agency by
December 3, 2009.
Department Approval:
Sol Blumenfeld (11/24/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (11/30/09)
Agency General Counsel Approval:
Murray Kane (11/24/09)
Chief Financial Officer Approval
Mark Scott (by N. Kimball) (12/01/09)
City Manager/Executive Director Approval:
Mark Scott (12/02/09)
RECOMMENDATION:
Staff recommends that both the City Council and the Redevelopment Agency Board
approve a Cooperation Agreement between the City of Culver City (the “City”) and
the Culver City Redevelopment Agency (the “Agency”) relating to the funding of
specified public infrastructure improvements.
BACKGROUND:
Section 33445 of the California Health and Safety Code permits Redevelopment
Agencies to use tax increment revenue to pay the cost of public improvements
constructed by other entities, provided a report pursuant to Section 33679 of
California Redevelopment Law (CRL) is prepared, a public hearing is conducted and
certain findings are made. From time to time, the City and Agency have entered into
Cooperation Agreements for the mutual benefit of the two parties and the public.
Before the end of this calendar year, there is an opportunity for the Agency to secure
for the City additional funding, to pay for a variety of future public infrastructure
needs which can assist in the Culver City Redevelopment Project.
By adopting the Cooperation Agreement the City and the Agency will be establishing
the authority, framework and funding source to pursue vitally needed Improvements.
However, the Cooperation Agreement by itself does not commit the City to pursue City of Culver City, California
Agenda Item Report
any particular Improvement. In many cases, further action, and supplemental
funding will be needed before some of the listed Improvements can be pursued.
DISCUSSION:
The list of proposed specified public infrastructure Improvements (the
“Improvements”) which may be funded by the Redevelopment Agency either all or in
part includes:
• New Police Department Headquarters Facility
• Park Improvements
• New Public Works Laydown Facility
• Overland Avenue Bridge Replacement
• East Washington Medians
• Improvements to Public Facilities (Transportation Center, Fire Station No. 2
and Veterans Memorial Building)
• Street Light Replacement
• Washington Boulevard Repaving
• Expansion of Transfer Plant
• New Fire Training Yard
The Cooperation Agreement (Attachment No. 1) and the Summary Pertaining to the
Funding of Specified Public Infrastructure Improvements (Attachment No. 2) contain
a more detailed description of the Improvements proposed to be funded. At this time
some of the improvements are more defined than others though all were identified
as important public projects. The Cooperation Agreement is proposed as a
prospective action at this time because funding large capital projects in the near
future will exacerbate the financial strain on the City; and changes in the CRL, which
go into effect on January 1, 2010, will in some cases, make it more difficult for
Redevelopment Agencies to fund public improvements, particularly if they are
outside the boundaries of a redevelopment project area. Further, the expiration of
the Redevelopment Project in Component Areas 1 and 2 in 2014 will limit the
Agency’s tax increment revenue stream to that needed to repay existing debts which
will help enable the Agency to protect its investment and ongoing efforts within the
Project Area in general.
In accordance with Section 33679 of the CRL, the Summary Report (Attachment No.
2), contains the findings supporting approval of the Cooperation Agreement which
are:
1. The specified public infrastructure improvements are of benefit to the Culver City
Redevelopment Project and the immediate neighborhood in which the Project
Area is located;
2. No other reasonable means of financing the specified public infrastructure
improvements are available to the community; City of Culver City, California
Agenda Item Report
3. The specified public infrastructure improvements will assist in the elimination of
one or more blighting conditions inside the Project Area; and,
4. The specified public infrastructure improvements are consistent with the
Implementation Plan for the Project Area adopted pursuant to Section 33490 of
the California Redevelopment law.
FISCAL ANALYSIS:
The cost to the Agency is detailed in Section II of the Summary Report (Attachment
2). The Summary report indicates approximate costs to the Agency for each
Improvement. As explained in the text of the Summary Report, the cost of some
Improvements was figured with additional percentages added for soft costs and
time. In other cases, the cost represented an estimated land acquisition cost. The
sum of these costs is $65,620,000 (all costs are estimated in current year dollars).
The Summary Report must also disclose the estimated interest cost to the Agency.
For this purpose, it was assumed the Agency would issue Bonds in the future and
commit the tax increment to repayment to the Bond holders with interest. The
interest cost, as described in the Summary Report is $35,000,000. Thus, if all
projects identified in the Cooperation Agreement are implemented, the total cost to
the Agency is estimated at $100,620,000.
ATTACHMENTS:
1. Draft Cooperation Agreement
2. Summary Pertaining To The Funding Of Specified Public Infrastructure
Improvements (Pursuant to Section 33679 of the Health and Safety Code)
3. Proof of Publication for Public Hearing Notice
4. City Council Resolution
5. Redevelopment Agency Resolution
MOTION:
That the City Council:
1. Approve the Resolution that makes findings and determinations pursuant to
Health and Safety Code Section 33445;
2. Approve the Cooperation Agreement between the City of Culver City and the
Culver City Redevelopment Agency to provide for funding of specified public
infrastructure improvements; and,
3. Authorize the City Attorney to review/prepare the necessary documents; and,
4. Authorize the City Manager to execute such documents on behalf of the City. City of Culver City, California
Agenda Item Report
That the Redevelopment Agency Board:
1. Approve the Resolution that makes findings and determinations pursuant to
Health and Safety Code Section 33445; and
2. Approve the Cooperation Agreement between the City of Culver City and the
Culver City Redevelopment Agency to provide for funding of specified public
infrastructure improvements; and,
3. Authorize the Agency General Counsel to review/prepare the necessary
documents; and,
4. Authorize the Executive Director to execute such documents on behalf of the
Agency.
MEETING DATE: December 7, 2009
AGENDA ITEM: Joint Public Hearing: Approval of a
Cooperation Agreement between the City
of Culver City and the Culver City
Redevelopment Agency Relating to the
Funding of Public Infrastructure
Improvements.
ATTACHMENTS
Pages
1. Draft Cooperation Agreement 1 – 9
2. Summary Pertaining To The Funding Of Specified 10 - 73
Public Infrastructure Improvements (Pursuant to
Section 33679 of the Health and Safety Code)
3. Proof Of Publication For Public Hearing Notice 74
4. City Council Resolution 75 - 80
5. Redevelopment Agency Resolution 81 - 83 ATTACHMENT 1
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