City of Culver City, California
Agenda Item Report
Page 1 of 3
Meeting Date: 02/22/2011 Item Number: J-3
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD AGENDA ITEM:
Approval of an Implementing Agreement between the City of Culver City, the Culver
City Redevelopment Agency, and the Culver City Unified School District Relating to
Pass Through Payments Authorized by the Third Amended Agreement for
Redevelopment Project No. 2.
Contact Person/Dept.:
Glenn Heald, Community Development
Todd Tipton, Community Development
Phone Number:
(310) 253-5752
(310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Meetings and Agendas – City Council (02/18/11); Meetings and
Agendas – Redevelopment Agency (02/18/11); (E-Mail) Organizations – Culver City
Unified School District (02/18/11).
Department Approval:
Sol Blumenfeld: (02/16/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/18/11)
Agency General Counsel Approval:
Murray Kane: (02/16/11)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball) (02/18/11)
City Manager/Executive Director Approval:
John M. Nachbar (02/18/11)
RECOMMENDATION:
Staff recommends the City Council (City Council) and the Redevelopment Agency
Board (Agency Board) approve an Implementing Agreement extending specified
payments by the Agency to the Culver City Unified School District (District) through
July 26, 2024.
BACKGROUND/DISCUSSION:
The formation of Redevelopment Project No. 2 (Project) in 1971 created a condition
whereby future increases in property tax revenue collections would not automatically
increase the share of such revenue awarded to the District. In order to ensure the
District receives an amount equal to or greater than that which it would receive had
the Project not been created, on June 30, 1975, the City, Agency and the District
voluntarily entered into the Agreement for the Overland-Jefferson Redevelopment
Project No. 2 (Agreement). The Agreement allows the Agency to make certain
annual payments – referred to as pass-throughs - to the District as compensation for
potential property tax revenue redistribution resulting from the formation of the
Project. The funding provided by the Agency assists the District with its regular
operating expenses.
City of Culver City, California
Agenda Item Report
Page 2 of 3
On June 4, 1990, the City Council and the Agency Board, during a joint hearing
pursuant to Sections 33445 and 33679 of the California Health and Safety Code,
amended the Agreement to clarify terms of the agreement and to adopt a schedule
for payments to the District.
The Agency’s annual pass-through payments to the District currently amount to
about $1.5 million. During the past decade, the Agency has submitted ten pass-
through payments to the District totaling $11,494,516.08. Table 1 below illustrates
the Agency’s contribution to the District during the period of 2000 through 2010.
Table 1. Agency contributions to Culver City Unified School District 2000-2010.
Due to the uncertainty created by the Governor’s proposal to eliminate
redevelopment agencies throughout the state, staff and Agency General Counsel
recommend that an Implementing Agreement be approved by the City Council and
the Agency Board. Through approval of the Implementing Agreement, the Agency
will be making a commitment to the funding schedule contained in the Agreement for
the Overland-Jefferson Redevelopment Project No. 2 through the entire time
permitted by state redevelopment law.
The Agency’s fiscal consultants estimate the Agency’s future pass-through
payments to the District will steadily increase from approximately $1.569 million in
2011 to approximately $2.049 million in 2024, totaling approximately $26.851 million,
an average of over $1.79 million per year. During meetings between City and
District staff, it was discussed that the Governor’s proposal is expected to provide no
new revenues to the District. Understanding the importance of the pass-through
payments on the revenues received by the District, staff proposes the City Council
and Agency Board approve the proposed Implementation Agreement to continue
this voluntary arrangement and safeguard these redevelopment funds for
educational purposes.
Calendar year Pass-through amount
2000 $ 773,597.87
2002 $ 930,447.88
2003 $ 1,004,003.00
2003 $ 977,912.04
2004 $ 1,061,751.50
2005 $ 1,128,069.06
2006 $ 1,217,773.94
2007 $ 1,334,270.00
2008 $ 1,449,487.38
2010 $ 1,617,203.41
Total 2000-2010 $11,494,516.08 City of Culver City, California
Agenda Item Report
Page 3 of 3
FISCAL ANALYSIS:
The sum of estimated future Agency pass-through payments to the District for the
period of 2011 through 2024 is $26,851,000. This represents no new fiscal impact
to the City or Agency.
ATTACHMENTS:
1. Proposed Implementing Agreement among the City of Culver City, the Culver
City Redevelopment Agency, and the Culver City Unified School District.
MOTION:
That the City Council:
1. Approve the Implementing Agreement among the City of Culver City, the
Culver City Redevelopment Agency and the Culver City Unified School
District to provide for specified payments by the Redevelopment Agency to
the School District through 2024;
2. Authorize the City Attorney to review/prepare the necessary documents; and,
3. Authorize the City Manager to execute such documents on behalf of the City.
That the Agency Board:
1. Approve the Implementing Agreement among the City of Culver City, the
Culver City Redevelopment Agency and the Culver City Unified School
District to provide for specified payments by the Redevelopment Agency to
the School District through 2024;
2. Authorize the Agency General Counsel to review/prepare the necessary
documents; and,
3. Authorize the Executive Director to execute such documents on behalf of the
Agency.
MEETING DATE: 02/22/11
AGENDA ITEM: IMPLEMENTING AGREEMENT TO
THIRD AMENDED AGREEMENT FOR THE OVERLAND-JEFFERSON
REDEVELOPMENT PROJECT No. 2.
ATTACHMENTS
Pages
Implementing Agreement among the City, Agency and CCUSD 1-2 Attachment No. 1
IMPLEMENTATION AGREEMENT TO
THIRD AMENDED AGREEMENT FOR THE OVERLAND-JEFFERSON
REDEVELOPMENT PROJECT NO. 2
THIS IMPLEMENTATION AGREEMENT is entered into by and between
the Culver City Redevelopment Agency, hereinafter "Agency" and the Culver
City Unified School District, hereinafter "District".
WHEREAS, on March 27, 1990, Agency, District and the City of Culver
City, hereinafter "City", entered into that certain Third Amended Agreement for
the Overland-Jefferson Redevelopment Project No. 2, hereinafter "Project",
whereby Agency was obligated to make certain payments to District to
compensate District for financial burdens and determinants cause by the Project
and for capital improvements found to be of benefit to the Project which the
Agreement is hereinafter referred to as the "Third Amended Agreement";
WHEREAS, Section 2 of the Third Amended Agreement provides that the
Agency shall make payments to the District under the terms and conditions set
forth therein;
WHEREAS, Agency, City and District collectively recognize the
importance of interbovernmental cooperation and the benefit to City and Agency
from a locally governed primary and secondary public school system;
WHEREAS, Agency, City and District desires to clarify the effectiveness of
the Third Amended Agreement by which the Agency shall make payments to the
District, under the terms and conditions set forth therein.
NOW THEREFORE; Agency, City and District agree to amend the Third
Amended Agreement as follows:
1. The recitals above are an integral part of this Implementation
Agreement and set forth the intentions of the parties and the premises on which
the parties have decided to enter into this Implementation Agreement.
2. Except as expressly provided otherwise in this Implementation
Agreement, the Third Amended Agreement, and each document executed or
entered into pursuant to the Third Amended Agreement, remains in full force and
effect, enforceable in accordance with its terms, without diminution or waiver of
any kind of any right or remedy of the parties hereunder.
3. The effectiveness of the Third Amended Agreement, as amended
by this Implementation Agreement, and all of the terms and conditions therein
shall be for so long as the Agency receives tax increment from the Project in
accordance with Section 33670 of the California Community Redevelopment Law
(Health and Safety Code section 33000 et. seq.).
Page 1 of 2 4. The effective date of this Implementation Agreement is
, 2011.
Dated: CITY OF CULVER CITY
By:
Christopher Armenta, Mayor
Dated: CULVER CITY REDEVELOPMENT
AGENCY
By:
John Nach bar, Executive Director
APPROVED AS TO FORM:
CAROL SCHWAB, City Attorney
KANE BALLMER & BERKMAN
MURRAY a KANE, Agency General Counsel
Dated: CULVER CITY UNIFIED SCHOOL
DISTRICT
By:
Page 2 of 2