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Title:
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FOUR-FIFTHS VOTE REQUIREMENT - Approval of a Professional Services Agreement with NBS for the Formation of a Special Financing District for the Purpose of Funding a Shuttle Service Connecting the Hayden Tract, the Culver City Light Rail Station, and Downtown.
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City of Culver City, California
Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council approve a professional services agreement
(Agreement) with NBS in an amount not to exceed $59,750 for services related to the
establishment of a Special Financing District (SPD) for the purposes of funding a shuttle
service connecting the Hayden Tract, the Culver City Light Rail Station, and Downtown.
City budget amendments require a 4/5ths vote.
BACKGROUND:
With the arrival of the Exposition Light Rail in Culver City (at the intersection of
Washington Boulevard and National Boulevard) expected in late 2011 or early 2012, the
City Council and Agency Board has had general discussions related to how best to
utilize the new Culver City light rail station as an focal point for economic development
in the area around Washington/National and the City as a whole.
The Agency Board and the City Council have been working for the past several years
on utilizing the Culver City Station as the centerpiece of a Transit Oriented Development
(TOD). Significant progress has been achieved with respect to assembling land for this
important, place-making development. Additionally, the Culver City Downtown
Business Association has approached the Agency Board with the idea of establishing a
shuttle service that links the Hayden Tract business district with the Culver City Station
and the downtown area.
Meeting Date: 04/11/11 Item Number: C-3
CITY COUNCIL / AGENDA ITEM: FOUR-FIFTHS VOTE REQUIREMENT - Approval of a
Professional Services Agreement with NBS for the Formation of a Special Financing
District for the Purpose of Funding a Shuttle Service Connecting the Hayden Tract, the
Culver City Light Rail Station, and Downtown
Contact Person/Dept.: Martin R. Cole Phone Number: 310-253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Public Notification: Meetings and Agendas – City Council (04/06/11)
Department Approval:
Martin R. Cole (04/05/11)
City Attorney Approval:
Carol Schwab (by H. Baker) (04/05/11)
Fiscal Impact Approval:
Jeff Muir (by M. Noller) (04/06/11)
City Manager Approval:
City of Culver City, California
Agenda Item Report
DISCUSSION
With the economic challenges facing the City, implanting a new shuttle service would be
difficult without additional funding. Staff has had discussions with staff from NBS to
initially explore options available to provide new funding for operation of a shuttle
service linking the Culver City Station with the Hayden Tract and Downtown.
After initially reviewing the goals of the proposed shuttle, NBS has tentatively proposed
a Business Improvement District be considered to provide the financing for the
operations of the shuttle. The process for establishing a Business Improvement District
is similar to that for an assessment district. However, procedurally and operationally, a
Business Improvement District is more efficient to establish and operate.
It should be noted that should the ultimate recommendation for funding of the shuttle be
the formation of a Business Improvement District, such a District would be established
solely for funding purposes of a shuttle. Culver City’s existing Downtown Business
Association and the associated Business Improvement District would not be impacted.
NBS has served as the consultant to the City and Agency during the formation of the
Area Improvement Plans and the associated assessment districts to fund the
maintenance of new landscaped medians in the western Washington Boulevard area of
the City. Staff has found NBS to be very knowledgeable of the complex laws related to
assessment districts and other related funding mechanisms. Because of their past work
in Culver City, NBS is also familiar with the City and its operations.
Should the City Council approve the professional services agreement and the funding
mechanism receive all of the required approvals (including approval by the parcel
owners included in the district), the district would begin receiving assessment revenues
in 2012 at the earliest. However, it may be possible for the City to provide a loan to the
district to allow shuttle service operations to begin when the Culver City Station is
opened.
FISCAL IMPACT
It is proposed that the City’s General Fund loan the proposed district the start-up costs
of $60,000. Should the district be formed and it be legally permitted, the start-up loan
would be repaid by the levied assessments. However, if this is not permitted, then the
loan would become a direct expenditure of the General Fund. (A four-fifths vote is
required for a budget amendment.)
City of Culver City, California
Agenda Item Report
MOTION
That the City Council:
1. Approve loan in the amount of $60,000 from the City’s General Fund to the
proposed Special Financing District to fund the costs of initial formation of the
District (requires a four-fifths vote for a budget amendment); and,
2. Approve a Professional Services Agreement with NBS in an amount not to
exceed $59.750; 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.