City of Culver City, California
Agenda Item Report
Meeting Date: 07/08/2013 Item Number: C-2
BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE CULVER CITY
REDEVELOPMENT AGENCY AGENDA ITEM: (1) Adoption of a Resolution
Authorizing Actions as Required by AB 1484 to Undertake Refunding of
Outstanding 1999 Series A and 2002 Series A Tax Allocation Bonds and (2)
Approval of a Professional Services Agreement with Keyser Marsten Associates in
an Amount Not-To-Exceed $24,000.
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: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – Successor Agency (07/03/13)
Department Approval:
Jeff Muir (07/02/13)
Successor Agency General Counsel Approval:
Carol Schwab (by H. Baker) (07/02/13)
Successor Agency Special Counsel Approval:
Murray Kane (07/03/13)
Chief Financial Officer Approval:
Jeff Muir (07/02/13)
Executive Director Approval:
John Nachbar (07/03/13)
RECOMMENDATION:
Staff recommends the Successor Agency (1) adopt a resolution authorizing
Successor Agency staff to take the necessary actions as required by AB 1484 to
refund outstanding 1999 Series A and 2002 Series A Tax Allocation Bonds issued
by the former Culver City Redevelopment Agency (Former CCRA), and (2) approve
a professional services agreement with Keyser Marsten Associates in an amount
not-to-exceed $24,000.
BACKGROUND:
With the dissolution of redevelopment agencies pursuant to state law on February 1,
2012, staff has been looking into methods by which the amount of Redevelopment
Property Tax Trust Fund (RPTTF) proceeds available to the Successor Agency can
be maximized. This will allow the Successor Agency access to additional funding to
retire enforceable obligations and ultimately make more funding available for taxing
entities, including the City and the Culver City Unified School District (CCUSD). One
concept Staff developed was to look at existing bond debt for refinancing
opportunities at lower interest rates. Such refundings are permitted under AB 1484
as long as the term of the bonds stays the same and no new debt is incurred. Staff
has identified such an opportunity which is presented in this staff report.
City of Culver City, California
Agenda Item Report
DISCUSSION:
In October 1999, the former CCRA issued $31,940,000 in 1999 Series A Tax
Allocation Refunding Bonds to refund a portion of the 1989 Loans made to the
Former CCRA by the Culver City Redevelopment Financing Authority and refund on
a current basis certain outstanding bonds of the Authority (the 1989 Bonds), as well
as fund certain redevelopment activities of benefit to the former CCRA’s Project
Area. Currently, the Former CCRA has outstanding bonds available for refunding
(refinancing) of $19,225,000 ($1,170,000 of which mature on November 1, 2013).
In April 2002, the Former CCRA issued $28,280,000 in Tax Allocation Bonds, 2002
Series A to fund certain redevelopment activities of benefit to the Former CCRA’s
Project Area. Currently, the Agency has outstanding bonds available for refunding of
$17,465,000 (of which $1,170,000 mature on November 1, 2013) for a total
refunding of $36,690,000 in bonds.
AB 1484 permits successor agencies to refund outstanding bonds and other
obligations of a former redevelopment agency which requires the approval of the
Successor Agency, Oversight Board, and the California Department of Finance.
Based on current market conditions, it is anticipated that the refunding of the Tax
Allocation Refunding Bonds, 1999 Series A and the 2002 Series A Tax Allocation
Bonds will produce an annual reduction in bond payments of approximately
$314,000 and $207,000, respectively, for a total of $521,000. This same reduction in
annual bond payments frees up additional property tax revenues for use by the
Successor Agency to pay enforceable obligations or distribution to the affected
taxing entities. To the extent these additional funds are distributed to taxing entities,
this will result in an annual increase of approximately $68,000 in property tax
revenues to the City and approximately $126,000 to CCUSD.
The first step in moving forward with the refunding bonds requires the Successor
Agency to adopt the attached resolutions which includes the Debt Service Savings
Analysis. The next step is for the Oversight Board to adopt a resolution to
acknowledge receipt of the Successor Agency’s resolution (including the Debt
Service Savings Analysis) and direct the Successor Agency to undertake the
refunding of the 1999 Series A Tax Allocation Bonds and the 2002 Series A Tax
Allocation Bonds. The final step is for the Oversight Board to send a copy of its
adopted resolution and Debt Service Savings Analysis for approval to the California
Department of Finance which has sixty days to approve the refunding of the bonds.
Staff is also recommending adoption of a resolution authorizing a professional services
agreement with Keyser Marsten Associates (KMA) for preparation of the required Fiscal
Consultant’s Report required as part of the refunding.
City of Culver City, California
Agenda Item Report
FISCAL ANALYSIS:
The fiscal impact of the issuance of refunding bonds will result in the annual
reduction of approximately $521,565 in bond payments which frees up a similar
amount in property tax revenues for utilization by the Successor Agency or
distribution to affected taxing entities. If distributed to taxing entities, this will result in
an annual increase of $68,000 in property tax revenues to the General Fund.
The agreement with KMA for preparation of the Fiscal Consultant’s Report shall not
exceed $24,000.
ATTACHMENTS:
1. Proposed Resolutions
2. Debt Service Savings Analysis
MOTION:
That the Successor Agency:
1) Adopt a Resolution authorizing actions to undertake the refunding of the 1999A and
2002 Bonds, as required by AB 1484; and,
2) Adopt a Resolution approving a professional services agreement with Keyser
Marsten Associates in an amount not-to-exceed $24,000.
MEETING DATE: July 8, 2013
AGENDA ITEM: (1) Adoption of a Resolution Authorizing Actions
as Required by AB 1484 to Undertake Refunding
of Outstanding 1999 Series A and 2002 Series A
Tax Allocation Bonds and (2) Approval of a
Professional Services Agreement with Keyser
Marsten Associates in an Amount Not-To-Exceed
$24,000.
ATTACHMENTS
Pages
1. Proposed Resolutions 1-14
2. Debt Service Savings Analysis 15
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RESOLUTION NO. 2013-SA____
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE CULVER
CITY REDEVELOPMENT AGENCY SEEKING DIRECTION FROM
ITS OVERSIGHT BOARD ON THE POTENTIAL REFUNDING OR
REFINANCING OF THE OUTSTANDING 1999 SERIES A AND 2002
SERIES A TAX ALLOCATION BONDS ISSUED BY THE FORMER
CULVER CITY REDEVELOPMENT AGENCY AND AUTHORITY TO
RECOVER COSTS THEREFOR, PURSUANT TO CALIFORNIA
HEALTH AND SAFETY CODE SECTION 34177.5.
WHEREAS, the Culver City Redevelopment Agency (“Redevelopment
Agency”) was a redevelopment agency in the City of Culver City (“City”), duly created
pursuant to the California Community Redevelopment Law (Part 1 (commencing with
Section 33000) of Division 24 of the California Health and Safety Code) (“Redevelopment
Law”); and
WHEREAS, the City Council of the City adopted redevelopment plans for the
City’s redevelopment project areas (“Project Areas”), and from time to time, the City
Council amended such redevelopment plans; and
WHEREAS, the Redevelopment Agency was responsible for the
administration of redevelopment activities within the City; and
WHEREAS, Assembly Bill No. X1 26 (2011-2012 1
st
Ex. Sess.) (“AB 26”) was
signed by the Governor of California on June 28, 2011, making certain changes to the
Redevelopment Law and the California Health and Safety Code (“HSC”), including adding
Part 1.8 (commencing with Section 34161) (“Part 1.8”) and Part 1.85 (commencing with
Section 34170) (“Part 1.85”) to Division 24 of the HSC; and
WHEREAS, pursuant to AB 26, as modified by the California Supreme Court
on December 29, 2011 by its decision in California Redevelopment Association v.
Matosantos, all California redevelopment agencies, including the Redevelopment Agency,
were dissolved on February 1, 2012, and successor agencies were designated and vested
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with the responsibility of paying, performing and enforcing the enforceable obligations of
the former redevelopment agencies and expeditiously winding down the business and fiscal
affairs of the former redevelopment agencies; and
WHEREAS, the City Council of the City adopted Resolution No. 2012-R001
on January 9, 2012, pursuant to Part 1.85 of AB 26, electing for the City to serve as the
successor agency to the Redevelopment Agency upon the dissolution of the
Redevelopment Agency under AB 26 (“Successor Agency”); and
WHEREAS, on February 6, 2012, the Board of Directors of the Successor
Agency, adopted Resolution No. 2012-SA001 naming itself the “Successor Agency to the
Culver City Redevelopment Agency”, the sole name by which it will exercise its powers and
fulfill its duties pursuant to Part 1.85 of AB 26, and establishing itself as a separate legal
entity with rules and regulations that will apply to the governance and operations of the
Successor Agency; and
WHEREAS, as part of the FY 2012-2013 State budget package, on June 27,
2012, the Legislature passed and the Governor signed Assembly Bill No. 1484 (“AB 1484”,
Chapter 26, Statutes 2012). Although the primary purpose of AB 1484 was to make
technical and substantive amendments to AB 26 based on issues that have arisen in the
implementation of AB 26, AB 1484 imposes additional statutory provisions relating to the
activities and obligations of successor agencies and to the wind down process of former
redevelopment agencies, including the refund or refinance of bonds or other indebtedness.
(AB 26 as amended by AB 1484 is hereinafter referred to as the “Dissolution Act”.); and
WHEREAS, HSC Section 34179 of the Dissolution Act establishes a seven
(7) member local entity with respect to each successor agency and such entity is titled the
“oversight board.” The oversight board has been established for the Successor Agency
(hereinafter referred to as the “Oversight Board”) and all seven (7) members have been
appointed to the Oversight Board pursuant to HSC Section 34179. The duties and
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responsibilities of the Oversight Board are primarily set forth in HSC Sections 34179
through 34181 of the Dissolution Act; and
WHEREAS, in October 1999, the Redevelopment Agency issued the Culver
City Redevelopment Agency Tax Allocation Refunding Bonds, 1999 Series A (the “1999
Series A TABs”) in the aggregate original principal amount of $31,940,000, to refund a
portion of the 1989 Loans made to the Redevelopment Agency by the Culver City
Redevelopment Financing Authority (“Authority”) and to refund on a current basis certain
outstanding bonds of the Authority (the 1989 Bonds), as well as fund certain redevelopment
activities of benefit to the respective Project Area. Currently, the Successor Agency (as
successor in interest to the Redevelopment Agency), has outstanding bonds available for
refunding (refinancing) of $19,225,000 (of which $1,170,000 mature on November 1, 2013);
and
WHEREAS, in April 2002, the Redevelopment Agency issued the Culver City
Redevelopment Agency Tax Allocation Bonds, 2002 Series A (the “2002 Series A TABs”) in
the aggregate principal amount of $28,280,000, to fund certain redevelopment activities of
benefit to the respective Project Area. Currently, the Successor Agency has outstanding
bonds available for refunding of $17,465,000 (of which $1,170,000 mature on November 1,
2013); and
WHEREAS, the combined total of outstanding 1999 Series A TABs and 2002
Series A TABs available for refunding is $36,690,000; and
WHEREAS, bond refundings are permitted under the Dissolution Act, and
specifically HSC Section 34177.5 of the Dissolution Act, as long as the term of the bonds
stays the same, and no new debt is incurred; and
WHEREAS, pursuant to HSC Section 34177.5(f) of the Dissolution Act, the
Oversight Board may direct the Successor Agency to commence the refinancing or
refunding of the 1999 Series A TABs and the 2002 Series A TABs, among other actions
authorized by HSC Section 34177.5(a) of the Dissolution Act, for debt service savings so
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long as the Successor Agency is able to recover its related costs in connection with the
transaction; and
WHEREAS, upon the direction of the Oversight Board, the Successor Agency
may cause the refinancing or refunding of the 1999 Series A TABs and the 2002 Series A
TABs for debt service savings by issuing, or causing the issuance of, Property Tax
Revenue Refunding Bonds (the “Refunding Bonds”) in accordance with the Dissolution Act
including, without limitation, HSC Sections 34177.5 and 34180(b); and
WHEREAS, pursuant to HSC Section 34177.5(h) of the Dissolution Act, the
Successor Agency shall make use of an independent financial advisor in developing
financing proposals and shall make the work products of the financial advisor available to
the California Department of Finance (the “DOF”) at its request; and
WHEREAS, based on current market conditions, it is anticipated that the
refunding of the 1999 Series A TABs and the 2002 Series A TABs will produce an annual
reduction in bond debt service payments of approximately $314,000 and $207,000,
respectively, for a total of $521,000. This same reduction in annual bond debt service
payments frees up additional distributions from the Redevelopment Property Tax Trust
Fund (“RPTTF”) to the Successor Agency to fund enforceable obligations and/or to the
affected taxing entities as residual payments under HSC Section 34183(a) of the
Dissolution Act; and
WHEREAS, the first step in moving forward with the Refunding Bonds is for
the Successor Agency to seek direction from its Oversight Board on the potential refunding
or refinancing of the 1999 Series A TABs and the 2002 Series A TABs and authority to
recover costs therefor; and
WHEREAS, all of the prerequisites with respect to the approval of this
Resolution have been met.
NOW, THEREFORE, the Successor Agency to the Culver City Redevelopment
Agency, DOES HEREBY RESOLVE as follows:
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SECTION 1. The foregoing recitals are true and correct and are a substantive
part of this Resolution.
SECTION 2. The adoption of this Resolution is not intended to and shall not
constitute a waiver by the Successor Agency of any constitutional, legal or equitable rights
that the Successor Agency may have to challenge, through any administrative or judicial
proceedings, the effectiveness and/or legality of all or any portion of AB 26 or AB 1484, any
determinations rendered or actions or omissions to act by any public agency or government
entity or division in the implementation of AB 26 or AB 1484, and any and all related legal and
factual issues, and the Successor Agency expressly reserves any and all rights, privileges,
and defenses available under law and equity.
SECTION 3. The Successor Agency hereby seeks direction from its Oversight
Board on the potential refunding or refinancing of the outstanding 1999 Series A and 2002
Series A Tax Allocation Bonds issued by the Redevelopment Agency and authority to recover
costs, pursuant to HSC Section 34177.5 of the Dissolution Act.
SECTION 4. The Executive Director, or designee, of the Successor Agency is
hereby authorized and directed to (i) provide pertinent information, including without limitation
the Debt Service Savings Analysis attached to the Successor Agency Agenda Report on this
matter, to the Oversight Board for review and direction on the potential refunding or
refinancing of the outstanding 1999 Series A and 2002 Series A Tax Allocation Bonds issued
by the Redevelopment Agency and authority to recover costs, pursuant to HSC Section
34177.5 of the Dissolution Act; (ii) concurrently submit all such information to the Los Angeles
County Administrative Officer, the Los Angeles County Auditor-Controller, and the DOF
pursuant to HSC Section 34180(j) of the Dissolution Act; and (iii) take such other actions and
execute such other documents as are necessary to effectuate the intent of this Resolution on
behalf of the Successor Agency.
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SECTION 5. The staff of the Successor Agency is hereby authorized and
directed, jointly and severally, to do any and all things which they may deem necessary or
advisable to effectuate this Resolution.
SECTION 6. This Resolution shall take effect immediately upon its adoption.
APPROVED AND ADOPTED, by the Successor Agency to the Culver City
Redevelopment Agency at its meeting held on the 8
th
of July, 2013, by the following vote:
AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
CHAIRPERSON
ATTEST:
MARTIN R. COLE, SECRETARY
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RESOLUTION NO. 2013-SA____
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE CULVER
CITY REDEVELOPMENT AGENCY APPROVING, AND
AUTHORIZING THE SUCCESSOR AGENCY EXECUTIVE
DIRECTOR TO ENTER INTO, A PROFESSIONAL SERVICES
AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND
KEYSER MARSTON ASSOCIATES, INC. FOR FISCAL
CONSULTANT SERVICES FOR THE POTENTIAL REFUNDING OF
THE OUTSTANDING 1999 SERIES A AND 2002 SERIES A TAX
ALLOCATION BONDS ISSUED BY THE FORMER CULVER CITY
REDEVELOPMENT, PURSUANT TO CALIFORNIA HEALTH AND
SAFETY CODE SECTIONS 34177.3 AND 34177.5.
WHEREAS, the Culver City Redevelopment Agency (“Redevelopment
Agency”) was a redevelopment agency in the City of Culver City (“City”), duly created
pursuant to the California Community Redevelopment Law (Part 1 (commencing with
Section 33000) of Division 24 of the California Health and Safety Code) (“Redevelopment
Law”); and
WHEREAS, the City Council of the City adopted redevelopment plans for the
City’s redevelopment project areas (“Project Areas”), and from time to time, the City
Council amended such redevelopment plans; and
WHEREAS, the Redevelopment Agency was responsible for the
administration of redevelopment activities within the City; and
WHEREAS, Assembly Bill No. X1 26 (2011-2012 1
st
Ex. Sess.) (“AB 26”) was
signed by the Governor of California on June 28, 2011, making certain changes to the
Redevelopment Law and the California Health and Safety Code (“HSC”), including adding
Part 1.8 (commencing with Section 34161) (“Part 1.8”) and Part 1.85 (commencing with
Section 34170) (“Part 1.85”) to Division 24 of the HSC; and
WHEREAS, pursuant to AB 26, as modified by the California Supreme Court
on December 29, 2011 by its decision in California Redevelopment Association v.
Matosantos, all California redevelopment agencies, including the Redevelopment Agency,
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were dissolved on February 1, 2012, and successor agencies were designated and vested
with the responsibility of paying, performing and enforcing the enforceable obligations of
the former redevelopment agencies and expeditiously winding down the business and fiscal
affairs of the former redevelopment agencies; and
WHEREAS, the City Council of the City adopted Resolution No. 2012-R001
on January 9, 2012, pursuant to Part 1.85 of AB 26, electing for the City to serve as the
successor agency to the Redevelopment Agency upon the dissolution of the
Redevelopment Agency under AB 26 (“Successor Agency”); and
WHEREAS, on February 6, 2012, the Board of Directors of the Successor
Agency, adopted Resolution No. 2012-SA001 naming itself the “Successor Agency to the
Culver City Redevelopment Agency”, the sole name by which it will exercise its powers and
fulfill its duties pursuant to Part 1.85 of AB 26, and establishing itself as a separate legal
entity with rules and regulations that will apply to the governance and operations of the
Successor Agency; and
WHEREAS, as part of the FY 2012-2013 State budget package, on June 27,
2012, the Legislature passed and the Governor signed Assembly Bill No. 1484 (“AB 1484”,
Chapter 26, Statutes 2012). Although the primary purpose of AB 1484 was to make
technical and substantive amendments to AB 26 based on issues that have arisen in the
implementation of AB 26, AB 1484 imposes additional statutory provisions relating to the
activities and obligations of successor agencies and to the wind down process of former
redevelopment agencies, including the refund or refinance of bonds or other indebtedness.
(AB 26 as amended by AB 1484 is hereinafter referred to as the “Dissolution Act”.); and
WHEREAS, HSC Section 34179 of the Dissolution Act establishes a seven
(7) member local entity with respect to each successor agency and such entity is titled the
“oversight board.” The oversight board has been established for the Successor Agency
(hereinafter referred to as the “Oversight Board”) and all seven (7) members have been
appointed to the Oversight Board pursuant to HSC Section 34179. The duties and
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responsibilities of the Oversight Board are primarily set forth in HSC Sections 34179
through 34181 of the Dissolution Act; and
WHEREAS, in October 1999, the Redevelopment Agency issued the Culver
City Redevelopment Agency Tax Allocation Refunding Bonds, 1999 Series A (the “1999
Series A TABs”) in the aggregate original principal amount of $31,940,000, to refund a
portion of the 1989 Loans made to the Redevelopment Agency by the Culver City
Redevelopment Financing Authority (“Authority”) and to refund on a current basis certain
outstanding bonds of the Authority (the 1989 Bonds), as well as fund certain redevelopment
activities of benefit to the respective Project Area. Currently, the Successor Agency (as
successor in interest to the Redevelopment Agency), has outstanding bonds available for
refunding (refinancing) of $19,225,000 (of which $1,170,000 mature on November 1, 2013);
and
WHEREAS, in April 2002, the Redevelopment Agency issued the Culver City
Redevelopment Agency Tax Allocation Bonds, 2002 Series A (the “2002 Series A TABs”) in
the aggregate principal amount of $28,280,000, to fund certain redevelopment activities of
benefit to the respective Project Area. Currently, the Successor Agency has outstanding
bonds available for refunding of $17,465,000 (of which $1,170,000 mature on November 1,
2013); and
WHEREAS, the combined total of outstanding 1999 Series A TABs and 2002
Series A TABs available for refunding is $36,690,000; and
WHEREAS, pursuant to HSC Section 34177.5(f) of the Dissolution Act, the
Oversight Board may direct the Successor Agency to commence the refinancing or
refunding of the 1999 Series A TABs and the 2002 Series A TABs, among other actions
authorized by HSC Section 34177.5(a) of the Dissolution Act, for debt service savings so
long as the Successor Agency is able to recover its related costs in connection with the
transaction; and
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WHEREAS, upon the direction of the Oversight Board, the Successor Agency
may cause the refinancing or refunding of the 1999 Series A TABs and the 2002 Series A
TABs for debt service savings by issuing, or causing the issuance of, Property Tax
Revenue Refunding Bonds (the “Refunding Bonds”) in accordance with the Dissolution Act
including, without limitation, HSC Sections 34177.5 and 34180(b); and
WHEREAS, pursuant to HSC Section 34177.5(h) of the Dissolution Act, the
Successor Agency shall make use of an independent financial advisor in developing
financing proposals and shall make the work products of the financial advisor available to
the California Department of Finance (the “DOF”) at its request; and
WHEREAS, pursuant to HSC Section 34177.3(b) of the Dissolution Act, the
Successor Agency may create enforceable obligations to conduct the work of winding down
the Redevelopment Agency, including, without limitation, hiring staff and acquiring
necessary professional administrative services. HSC Section 34171(d)(1)(F) of the
Dissolution Act defines an “enforceable obligation” to include contracts or agreements
necessary for the administration or operation of the Successor Agency; and
WHEREAS, in anticipation of the Oversight Board’s direction to the
Successor Agency to commence the refunding of the 1999 Series A TABs and the 2002
Series A TABs, the Successor Agency staff proposes that the Successor Agency approve,
and authorize the Successor Agency Executive Director to enter into, a professional
services agreement (the “Professional Services Agreement”) with Keyser Marston
Associates, Inc. (also referred to as the “Fiscal Consultant”) to provide fiscal consultant
services for the bond refunding transaction, subject to the Oversight Board’s approval of
said Agreement as required by the Dissolution Act or desired by the Successor Agency
Executive Director; and
WHEREAS, Keyser Marston Associates, Inc. has represented that it
possesses the necessary qualifications to provide the services that will be required by the
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Successor Agency. Upon approval, Keyser Marston Associates, Inc. is intended to be a
part of the financing team for the bond refunding transaction; and
WHEREAS, the services provided under the Professional Services
Agreement would include preparation of a report on the economic feasibility of the Project
Areas providing the security of the debt issue used in the preparation of bond documents
and the preliminary official statement for future authorization by the Successor Agency,
Oversight Board, the DOF if review requested, and the City, and advising the Successor
Agency on matters pertinent to the refunding of the 1999 Series A TABs and the 2002
Series A TABs; and
WHEREAS, the professional services fees and expenses payable to Keyser
Marston Associates, Inc. as the Fiscal Consultant as proposed in the Professional Services
Agreement is subject to a time and materials basis but not to exceed a total amount of
$24,000. Thus, combined compensation of fees and expenses payable to Keyser Marston
Associates, Inc. is a not to exceed amount of $24,000; and
WHEREAS, if the refunding of the 1999 Series A TABs and the 2002 Series A
TABs is successful, reimbursement to the Successor Agency or payment for Keyser
Marston Associates, Inc.’s compensation as the Fiscal Consultant would be considered a
part of the cost of issuance, would be paid and/or the Successor Agency reimbursed from
the proceeds of the new Refunding Bonds issue, and would be deemed an enforceable
obligation included within the financing documents to be submitted to the Successor
Agency and Oversight Board for approval (with the DOF’s right to review). If the refunding
of the 1999 Series A TABs and the 2002 Series A TABs is not successfully closed, Keyser
Marston Associates, Inc.’s compensation as the Fiscal Consultant would be paid by the
Successor Agency from available funds and will be included in the ROPS 13-14B for
approval and payment and/or reimbursement from Redevelopment Property Tax Trust
Fund distributions as a proposed enforceable obligation of the Successor Agency; and
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WHEREAS, the activity proposed for approval by this Resolution has been
reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”),
the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et
seq., hereafter the “Guidelines”), and the City’s environmental guidelines; and
WHEREAS, the activity proposed for approval by this Resolution is not a
“project” for purposes of CEQA, as that term is defined by Guidelines Section 15378,
because the activity is an organizational or administrative activity that will not result in a
direct or indirect physical change in the environment, per Section 15378(b)(5) of the
Guidelines; and
WHEREAS, all of the prerequisites with respect to the approval of this
Resolution have been met.
NOW, THEREFORE, the Successor Agency to the Culver City Redevelopment
Agency, DOES HEREBY RESOLVE as follows:
SECTION 1. The foregoing recitals are true and correct and are a substantive
part of this Resolution.
SECTION 2. The adoption of this Resolution is not intended to and shall not
constitute a waiver by the Successor Agency of any constitutional, legal or equitable rights
that the Successor Agency may have to challenge, through any administrative or judicial
proceedings, the effectiveness and/or legality of all or any portion of AB 26 or AB 1484, any
determinations rendered or actions or omissions to act by any public agency or government
entity or division in the implementation of AB 26 or AB 1484, and any and all related legal and
factual issues, and the Successor Agency expressly reserves any and all rights, privileges,
and defenses available under law and equity.
SECTION 3. The Successor Agency hereby approves the Professional Services
Agreement between the Successor Agency and Keyser Marston Associates, Inc. in
substantial form as the Agreement attached to the Successor Agency Agenda Report on this
matter, for fiscal consultant services for the potential refunding of the 1999 Series A TABs and
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the 2002 Series A TABs, for a total amount not to exceed $24,000 for accrued fees and
expenses. Payment to Keyser Marston Associates, Inc. will be made (i) if the Refunding
Bonds are issued, as a reimbursement to the Successor Agency or payment through the
Refunding Bonds Trustee/Escrow Agent and from the proceeds of the Refunding Bonds; or
(ii) if the Refunding Bonds are not issued, by the Successor Agency from available funds
including Redevelopment Property Tax Trust Fund distributions pursuant to an approved
Recognized Obligation Payment Schedule.
SECTION 4. The Executive Director, or designee, of the Successor Agency is
hereby authorized and directed to execute the Professional Services Agreement in substantial
form as the Agreement attached to the Successor Agency Agenda Report on this matter,
subject to the Oversight Board’s approval of the Professional Services Agreement as required
by the Dissolution Act or desired by the Executive Director.
SECTION 5. The Executive Director, or designee, of the Successor Agency is
hereby authorized to make non-substantive changes and amendments to the Professional
Services Agreement deemed necessary and as approved by the Executive Director of the
Successor Agency and its legal counsel and to take such other actions and execute such
other documents as are necessary to effectuate the intent of this Resolution on behalf of the
Successor Agency.
SECTION 6. The staff of the Successor Agency is hereby authorized and
directed, jointly and severally, to do any and all things which they may deem necessary or
advisable to effectuate this Resolution.
SECTION 7. The Successor Agency determines that the activity approved by
this Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines
Section 15378, because the activity is an organizational or administrative activity that will not
result in a direct or indirect physical change in the environment, per Section 15378(b)(5) of the
Guidelines.
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SECTION 8. If any provision of this Resolution or the application of any such
provision to any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications of this Resolution that can be given effect without the invalid
provision or application, and to this end the provisions of this Resolution are severable. The
Successor Agency declares that it would have adopted this Resolution irrespective of the
invalidity of any particular portion of this Resolution.
SECTION 9. This Resolution shall take effect immediately upon its adoption.
APPROVED AND ADOPTED, by the Successor Agency to the Culver City
Redevelopment Agency at its meeting held on the 8
th
of July, 2013, by the following vote:
AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
CHAIRPERSON
ATTEST:
MARTIN R. COLE, SECRETARY
14Uninsured, Cash-Funded Reserve Uninsured, Cash-Funded Reserve
Refunding Bond Amount $16,120,000 $14,955,000
Par Refunded $18,055,000 $16,295,000
Final Maturity 11/1/2025 11/1/2025
Average Coupon of Refunding Bonds 4.86% 4.66%
True Interest Cost 3.99% 3.47%
Net Present Value Savings ($) $1,769,045 $1,364,012
Present Value Savings (%) 9.80% 8.37%
Nominal Savings ($) $3,770,831 2,487,950.02
Average Annual Savings ($) $314,236 $207,329
Taxing Entities Share of Average Annual Savings:
LA COUNTY GENERAL 165,989 109,518
LA COUNTY ACO 38 25
LA COUNTY LIBRARY 9,679 6,386
LA COUNTY FIRE - FORESTER FIRE WARDEN 2,495 1,646
LA COUNTY FLOOD CONTROL 890 587
LA COUNTY FLOOD CONTROL MTCE 5,039 3,325
LA CO WEST VECTOR CONTROL DIST. 124 82
CITY-CULVER CITY 41,090 27,111
WEST BASIN MWD 1111 1,407 929
LA COUNTY SCHOOL SERVICES 470 310
CHILDREN'S INSTIL TUITION FUND 932 615
L.A.CITY COMMUNITY COLLEGE DIST 10,020 6,611
L.A.COMM.COLL.CHILDREN'S CTR FD 104 68
CULVER CITY UNIFIED SCHOOL DIST 73,169 48,276
CO.SCH.SERV.FD.- CULVER CITY 1,524 1,006
DEV.CTR.HDCPD.MINOR-CULVER CITY 250 165
CULVER CITY CHILDREN,S CTR.FD. 325 214
LOS ANGELES UNIFIED SCHOOL DISTRICT 1,358 896
CO.SCH.SERV.FD.-LAUSD 0 0
DEV.CTR.HDCPD.MINOR-LAUSD 8 5
LAUSD CHILDREN'S CTR.FD. 22 15
Assumes Market Conditions as of 6/26/13 and an A Rating.
Dated/Delivery of 11/1/13.
Debt Service Savings Analysis
Refunding of Culver City RDA 1999A TABs Refunding of Culver City RDA 2002A TABs
Attachment No. 2
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