City of Culver City, California
Agenda Item Report
Meeting Date: 07/13/15 Item Number: C-2
CITY COUNCIL AGENDA ITEM: FOUR-FIFTHS VOTE REQUIREMENT - Approval of
a Budget Amendment to Appropriate and Re-Allocate Pre-2011 Bond Proceeds
Pursuant to the Master Agreements Between the City and the Successor Agency to
the Culver City Redevelopment Agency.
Contact Person/Dept.:
Jeff Muir/Finance
Phone Number:
(310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – City Council (07/08/15)
Department Approval:
Jeff Muir (07/02/15)
City Attorney Approval:
Carol Schwab (by H. Baker) (07/06/15)
Chief Financial Officer Approval:
Jeff Muir (07/02/15)
City Manager Approval:
John M. Nachbar (07/07/15)
RECOMMENDATION:
Staff recommends the City Council approve a budget amendment to appropriate and
re-allocate pre-2011 bond proceeds pursuant to the Master Agreements between
the City and the Successor Agency to the Culver City Redevelopment Agency
(Successor Agency).
A budget amendment requires a 4/5ths vote.
BACKGROUND:
At the time the former Culver City Redevelopment Agency (Former CCRA) was
dissolved in February 2012, there existed certain unexpended tax-exempt bond
proceeds from bond issues prior to 2011. Under the provisions of the Dissolution
Law, a successor agency is able to spend pre-2011 bond proceeds once it receives
a Finding of Completion from the State Department of Finance (DOF). On
December 5, 2013, the Successor Agency received a Finding of Completion from
the DOF.
On June 23, 2014, the Successor Agency Board and City Council adopted
respective resolutions approving a Master Agreement in order to allow the
Successor Agency to transfer $2,772,076 in 1999 tax-exempt bond proceeds and
$13,965,558 in 2002 tax-exempt bond proceeds to the City, so that the City might
use the bond proceeds for the purposes identified and consistent with the applicable
indebtedness obligation covenants and the requirements of California
Redevelopment Law. On July 24, 2014, the Oversight Board of the Successor City of Culver City, California
Agenda Item Report
Agency to the Culver City Redevelopment Agency (Oversight Board) adopted a
Resolution authorizing the Successor Agency to enter into the Master Agreement.
On September 3, 2014, the DOF approved the action of the Oversight Board.
On April 13, 2015, the Successor Agency Board and City Council each adopted
respective Resolutions approving a second Master Agreement in order to allow the
Successor Agency to transfer $2,310,800 in 1993 tax-exempt bond proceeds to the
City, so that the City might use the bond proceeds for the purposes identified and
consistent with the applicable indebtedness obligation covenants and the
requirements of California Redevelopment Law. On May 14, 2015, the Oversight
Board adopted a Resolution authorizing the Successor Agency to enter into this
Second Master Agreement. On June 26, 2015, the DOF approved the action of the
Oversight Board.
DISCUSSION:
During the Fiscal Year 2014/2015 Mid-Year Budget Review, the City Council
approved appropriation of $16,550,000 in 1999 and 2002 bond proceeds. The 1993
bond proceeds have not been appropriated as of yet. Due to further information
about the anticipated costs of various projects now being available, including costs
for increased public parking as part of the Town Plaza project, adjustments to some
of the original project budgets are required. Additionally, the appropriation of the
1999 and 2002 bond proceeds must be adjusted between the two separate funds
used to account for these monies. As a result, staff has brought this item to make
the necessary new appropriations and re-allocations required to allow for the proper
expenditure and tracking of these funds.
FISCAL ANALYSIS:
The following table (which appears on the next page) summarizes the new
appropriations and re-allocations required at an account level:
City of Culver City, California
Agenda Item Report
Account Project Name Current Budget Reallocation
New
Appropriation Revised Budget
1993 Bond Proceeds (Fund 484)
48480000.730100.PZ553 Higuera Street Bridge - - 800,000 800,000
48480000.730100.R3411 Hayden Tract-Spur - 1,200,000 - 1,200,000
48480000.730100.R4274 Washington AIP Phase IV - 310,800 - 310,800
- 1,510,800 800,000 2,310,800
1999 Bond Proceeds (Fund 486)
48680000.730100.R4274 Washington AIP Phase IV - 439,200 - 439,200
48780000.730100.R3340 Town Plaza - 2,332,876 2,332,876
- 2,772,076 - 2,772,076
2002 Bond Proceeds (Fund 487) -
48780000.730100.R3262 Washington/National 650,000 (30,000) - 620,000
48780000.730100.R3340 Town Plaza 3,550,000 (2,682,876) - 867,124
48780000.730100.R3341 Town Plaza Parking 3,800,000 380,000 1,350,000 5,530,000
48780000.730100.R3411 Hayden Tract-Spur 1,200,000 (1,200,000) - -
48780000.730100.R4261 Washington/Centinela 6,600,000 - - 6,600,000
48780000.730100.R4274 Washington AIP Phase IV 750,000 (750,000) - -
48716100.910200 Appropriated Reserves - - 348,434 348,434
16,550,000 (4,282,876) 1,698,434 13,965,558
Grand Total 16,550,000 - 2,498,434 19,048,434
The following table summarizes the revised total project budgets:
Project 1993 1999 2002 Total
Higuera Street Bridge 800,000 800,000
Washington/National 620,000 620,000
Town Plaza 2,332,876 867,124 3,200,000
Town Plaza Parking 5,530,000 5,530,000
Hayden Tract-Spur 1,200,000 1,200,000
Washington/Centinela 6,600,000 6,600,000
Washington AIP Phase IV 310,800 439,200 750,000
Appropriated Reserves 348,434 348,434
Total 2,310,800 2,772,076 13,965,558 19,048,434
It should be noted that a new fund (Fund 484) will be created to account for the 1993
bond proceeds.
A Budget Amendment requires a 4/5ths vote.
City of Culver City, California
Agenda Item Report
ATTACHMENTS:
None
MOTION:
That the City Council:
Approve a budget amendment to appropriate and re-allocate pre-2011 bond
proceeds consistent with the table included in this staff report.