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Title:
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Approval of an Amendment to the Southern California Edison Easement for Electricity Service at Washington/Centinela to Add Telecommunications Services.
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City of Culver City, California
Redevelopment Agency Agenda Item Report
RECOMMENDATION:
Staff recommends the Culver City Redevelopment Agency (the “Agency”) approve
and amendment to the existing Southern California Edison (“SCE”) easement for
electricity services to add telecommunication services to it at the Agency’s
Washington/Centinela site in exchange for $2,500.
BACKGROUND:
Agency Property Acquisition:
As part of the Agency’s goal of eliminating blight within the Redevelopment Project
Area, staff identified a number of blighted and underutilized properties that are prime
for redevelopment. Among those properties identified were the northeast and
northwest corners of the intersection of Washington Boulevard and Centinela
Avenue (the “Site”). In 2007, the Agency completed the Sites property acquisition
and relocated the businesses within the Project area depicted below as Site A and
Site B. The Agency has demolished the former improvements located at the Sites:
• Site A, a little over one acre in size, is located at 12403-12427 Washington
Boulevard, 4064 Colonial Avenue, and 4061-4069 Centinela Avenue.
• Site B, approximately 19,810 square feet in area, is located at 12337-12343
Washington Boulevard.
Meeting Date: 02/17/09 Item Number: C-3
AGENDA ITEM: Approval of an Amendment to the Southern California Edison
Easement for Electricity Service at Washington/Centinela to Add
Telecommunications Services.
Contact Person: Joe Susca Phone Number: 310-253-5763
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification:
Master E-Mail Notification List (02/11/09); Southern California Edison (02/10/09)
Department Approval:
Sol Blumenfeld (02/11/09)
Chief Financial Officer Approval:
Jeff Muir (by N. Kimball)(02/11/09)
Executive Director Approval:
Jerry Fulwood (02/11/09) City of Culver City, California
Redevelopment Agency Agenda Item Report
During their meeting of January 7, 2008, after reviewing a number of proposals from
developers for the Site, the Agency instructed staff to commence negotiation of a
Disposition and Development Agreement (the “DDA”) with Reiss Paris Joint
Ventures (d.b.a. Washinela L.P.; the “Developer”). Staff is in the process of
concluding negotiations with the Developer and anticipates presenting the DDA to
the Agency for consideration within the next few months.
Private Property Easements:
Any utility company which requires access on, through, above or beneath private
property for placement of their facilities is required to execute an easement with its
owner. Most utility company easements were established in the early 1900’s and in
most cases they have remained in effect since then. SCE has an unrecorded
electrical easement for the Site that was issued in 1924.
SCE Easement Amendment Request:
SCE submitted a letter to the Agency requesting an amendment to their electrical
services easement on Site A in order to allow them to also offer telecommunication
services using the existing facilities located there. SCE uses their existing fiber optic
cable network for internal communications; however according to an SCE 1998
report, 19% of its capacity remains unused. SCE is in the process of renting this
excess capacity to telecommunications providers through its SCENet division.
City of Culver City, California
Redevelopment Agency Agenda Item Report
SCE Franchise for Electricity:
In 1943 the City entered into a franchise agreement with SCE for the provision of
electricity citywide. In exchange for SCE’s use of the public rights-of-way in which
their facilities reside, SCE provides the City:
• 2% of their gross annual receipts derived by SCE arising from the use,
operation or possession of said franchise, provided however that such
payment shall in no event be less than a sum which shall be equivalent to 1%
of the gross annual receipts derived by SCE from the sale of electricity within
the city limits.
This past year, SCE remitted $557,000 to the City in franchise fees for the citywide
electrical services they provide.
Telecommunications Franchising:
In 1998 the California Public Utilities Commission (“CPUC”) issued a Certificate of
Public Convenience and Necessity to SCE establishing their SCENet division as a
Competitive Local Carrier that may lease excess capacity on SCE’s existing fiber
optic network to telecommunications providers on a wholesale basis (SCENet does
not provide dial tone service to end users).
Unlike providers of electricity, telecommunications companies are not required to
enter into franchises with the local municipalities in which they serve. Instead, local
municipalities may only control the time, place, and manner in which
telecommunications facilities are placed within their public rights-of-way.
FISCAL ANALYSIS:
Appraised Value:
Lea & Associates, an Agency appraiser, has determined that the value of the
easement is $2,500 (see attached).
SCE Offer:
In exchange for recording the easement amendment, SCE has offered the Agency
$2,500 in addition to covering any direct costs associated with recording the
easement such as title company costs and Los Angeles County Recorder fees.
City of Culver City, California
Redevelopment Agency Agenda Item Report
ATTACHMENTS:
• January 9, 2009 SCE Offer Letter and Easement Amendment
• December 17, 2008 Lea & Associates Easement Appraisal
MOTIONS:
That the Redevelopment Agency:
1) Approve an amendment to the electricity easement at Washington/Centinela with
Southern California Edison to include telecommunication services in exchange
for $2,500 subject to approval as to form by Agency General Counsel; and,
2) Authorize the Agency General Counsel to review/prepare the necessary
documents; and,
3) Authorize the Executive Director to execute and record such documents on
behalf of the Agency.
9770 CULVER BOULEVARD CULVER CITY, CA 90232-0507
TEL 310.253.5767 FAX 310.253.5779
MEETING DATE: 02/17/09
AGENDA ITEM: WASHINGTON/CENTINELA PROPERTIES:
PROPERTY SALE NEGOTIATIONS
ATTACHMENTS
Item Pages
1
2
January 9, 2009 SCE Counter Offer Letter and
Easement Amendment
December 17, 2008 Lea & Associates Appraisal
1-4
5-19
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20