M-052411 pfaCITY OF SANTA MONICA
PUBLIC FINANCING AUTHORITY MINUTES
TUESDAY, MAY 24, 2011
A special joint meeting of the Santa Monica Public Financing Authority, City Council, and
Redevelopment Agency was called to order by Chair Bloom at 8:15 p.m., on Tuesday, May 24, 2011, at
the City Council Chamber, 1685 Main Street.
Roll Call: Present: Chair Richard Bloom
Vice Chair Gleam Davis
Authority Member Robert Holbrook
Authority Member Kevin McKeown
Authority Member Pam O'Connor
Authority Member Bobby Shriver
Absent: Authority Member Terry O'Day
Also Present: Executive Director Rod Gould
Authority Attorney Marsha Moutrie
Authority Secretary Maria M. Stewart
Acting Authority Secretary Denise Anderson- Warren
CONVENE: On order of the Chair, a special joint meeting of the Public Financing
Authority, the Redevelopment Agency and the City Council, was called
to order at 8:15 p.m., with Authority Member O'Day absent.
REDEVELOPMENT 8 -A: Redevelopment Agency Immediate Funding Opportunities —
AGENCY FUNDING recommendation that: the Council and Redevelopment Agency consider
inunediate redevelopment funding opportunities and direct staff to
prepare necessary contracts to take advantage of such opportunities as
recommended in the report. Recommendation that Council authorize
the City Manager to negotiate and execute Memorandum of
Understanding No. 9374 (CCS /RAS) between the City, the Agency and
the School District to provide a stream of tax increment funding to the
District for implementation of Phase I of the Civic Center Joint Use
Project; authorize the City Manager to negotiate and execute Funding
Agreement No. 9375 (CCS /RAS) between the City, Agency and
Exposition Metro Line Construction Authority (Expo) and /or L.A.
Country Metropolitan Transportation Authority (Metro) to provide a
stream of tax increment funding to Expo and /or Metro for basic elements
of the Downtown, Memorial Park, and Bergamot light rail stations;
approve the payment of issuance costs associated with the 2011 Bonds
and approve the modification of Agreement No. 9146 (CCS) with
Stradling, Yocca, Carlson, and Rauth to increase total to not exceed
$400,000; adopt Resolution No. 10576 (CCS), entitled "A
May 24, 2011
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA, APPROVING THE ISSUANCE BY THE
REDEVELOPMENT AGENCY OF THE CITY OF SANTA MONICA
OF ITS EARTHQUAKE RECOVERY REDEVELOPMENT
PROJECT, 2011 TAX ALLOCATION BONDS, AND MAKING
CERTAIN DETERMINATIONS RELATING THERETO ", and making
certain determinations relating thereto; and, appropriate funds and adopt
budget changes as proposed. Recommendation that the Redevelopment
Agency: Authorize the Executive Director to negotiate and execute
Memorandum of Understanding No. 9374 (CCS /RAS) between the
City, Agency and the School District to provide a stream of tax increment
funding to the District for implementation of Phase I of the Civic Center
Joint Use Project; to negotiate and execute Funding Agreement No.
9375 (CCS/RAS) between the City, Agency and Expo and /or Metro to
provide a stream of tax increment funding to Expo and /or Metro for basic
elements of the Downtown, Memorial Park, and Bergamot light rail
stations; and, adopt Resolution No. 531 (RAS), entitled "A
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SANTA MONICA AUTHORIZING THE ISSUANCE OF
NOT TO EXCEED $41,050,000 PRINCIPAL AMOUNT OF TAX
ALLOCATION BONDS ON CERTAIN TERMS AND CONDITIONS,
APPROVING A CONTINUING DISCLOSURE CERTIFICATE,
APPROVING THE FORM AND DISTRIBUTION OF A
PRELIMINARY OFFICIAL STATEMENT AND FINANCING
DOCUMENTS, AUTHORIZING CERTAIN OTHER OFFICIAL
ACTIONS AND PROVIDING FOR OTHER MATTERS RELATING
THERETO ", and approving and authorizing other official action and
matters related thereto. Recommendation that the Public Financing
Authority: Adopt Resolution No. 7 (PFAS), entitled "RESOLUTION OF
THE BOARD OF DIRECTORS OF THE SANTA MONICA PUBLIC
FINANCING AUTHORITY AUTHORIZING PURCHASE AND SALE
OF REDEVELOPMENT AGENCY OF THE CITY OF SANTA
MONICA, EARTHQUAKE RECOVERY REDEVELOPMENT
PROJECT 2011 TAX ALLOCATION BONDS, AND APPROVING
CERTAIN RELATED DOCUMENTS AND AUTHORIZING
CERTAIN OTHER ACTIONS ", and approving and authorizing related
documents and actions, was presented.
Members of the public Carl Selkin, Sarah Letts, Denise Barton, Patricia
Hoffman, Paul Dolid, Mike Myers, Jim Conn, Alex Hodges, Paul
DeSantis and Linda Jarsim spoke generally in support of the recommend-
ations and projects presented.
Considerable discussion ensued particularly related to the recommend-
ation for funding of the Civic Center, the viability of a refurbished, active
Civic Center Auditorium, and other possible uses for the proposed
funding.
May 24, 2011
At the request of Councilmember McKeown and with consensus of
Council, the item related to the School District was taken up separately to
allow Councilmember McKeown to recuse himself due to a conflict of
interest because of his employment relationship with the District.
Agency /Councilmember Motion by Mayor /Chair Pro Tern Davis, seconded by Council /Agency
McKeown was excused at Member O'Connor to authorize the City Manager /Executive Director to
9: OS p.m. negotiate and execute Memorandum of Understanding No. 9374
(CCS /RAS) between the City, the Agency and the School District to
provide a stream of tax increment funding to the District for implement-
ation of Phase I of the Civic Center Joint Use Project. The motion was
approved by the following vote:
AYES: Council /Agency Members Sluiver, O'Connor,
Holbrook, Chair /Mayor Pro Tem Davis, Chair /Mayor
Bloom
NOES: None
ABSENT: Council /Agency Members O'Day McKeown
Agency /Councilmember Motion by Agency /Authority /Councilmember McKeown, seconded by
McKeown returned at Agency /Authority Chair /Mayor Bloom, to approve the total of staff s
9:16 p. m. recommendation.
Considerable discussion ensued on the merits of the motion, including the
amounts of proposed allocations, costs of individual projects, firthue
financial viability of the Civic Auditorium, and options for using
proposed Auditorium funding for other projects.
Substitute motion by Mavor /Agency Pro Tem /Authority Vice Chair
Davis seconded by gency /Authority /Councilmember Shriver, to
approve staff s reconmiendation with the exception of the Civic Center
Project and substitute Parking Structure 6 in its place, and direct staff to
return with a broader more detailed look and alternatives for the plans for
the Civic Center area that may be more flexible.
Considerable discussion ensued on the substitute motion and its merits,
including but not limited to the viability of the Civic Center, its
importance as a cultural asset, future need of the Auditorium for City
subsidies, the need for arts in the City, and alternate uses for the proposed
funding.
After considerable discussion, Agency /Mayor Pro Tem /Authority Vice
Chair Davis withdrew her substitute motion.
Substitute motion by Agency /Authority /Councilmember Holbrook,
seconded by Agency/ Authority /Councilmember McKeown, to approve
all items presented by staff, except the Civic Center Auditorium proposal,
and consider and further discuss that allocation at a continued meeting on
May 24, 2011
Thursday, May 26, 2011, and allow public comment on the matter again
on that date.
The City Clerk stated, for the record, each of the actions the City Council,
the Redevelopment Agency and the Public Finance Authority were
approving by the above motion, with the Civic Center Auditorium
exception. The substitute motion as approved by the following vote:
AYES: Agency /Authority /Councilmembers Shriver,
O'Connor, Holbrook, McKeown, Agency/Mayor Pro Tem/
Authority Vice Chair Davis, Agency /Authority
Chair/Mayor Bloom
NOES: None
ABSENT: Agency /Authority /Cotmeilmember O'Day
RECESS: On order of the Chair, the Special Joint Meeting of the Redevelopment
Agency, Public Financing Authority and City Council recessed at 10:25
p.m., to Thursday, May 26, 5:30 p.m., with Councilmember O'Day
absent.
SPECIAL JOINT On order of the Chair, the continued special joint Redevelopment
MEETING CONT'D: Agency, City Council, and the Public Financing Authority was
REDEVELOPMENT reconvened on Thursday, May 26, at 5:41 p.m., with all members present.
AGENCY FUNDING Authority Secretary Stewart being absent, Denise Anderson- Warren
attended as Acting Authority Secretary.
On order of the Mayor /Agency /Authority Chair, discussion continued on
the proposed funding for the Civic Center Auditorium.
8 -A: Redevelopment Agency Immediate Funding Opportunities —
continued discussion from Tuesday, May 24, 2011.
Staff presented the subject matter and responded to questions raised by
Council by providing additional information showing comparisons and
available options for the Civic Center renovation project.
Members of the public D'Lynn Waldron, Zina Joseph, Mike Bone, Bruce
Cameron, Lori Nashun, Nigel Grainge, Nina Fresco, Jerry Rubin, Susan
McCarthy, Michael Myers, Edward Edwards, Fred Deni, Larry Gruber,
Tom Cleys, Roger Genser, Geoff Emery, David Kaplan, and Ruthann
Lehrer spoke in support of the mixed -use option to renovate the Civic
Center Auditorium.
Motion by Agency /Authority /Councilmember McKeown, seconded by
Agency /Authority /Councilmember O'Connor, to approve staff
recommendation.
Substitute motion from Agency /Authority /Councilmember O'Day
May 24, 2011
seconded by Agency /Authority / Councilmember Shriver, to not fund the
Civic Center, but instead to approve funding for reconstruction of
Parking Structure #6 and to use the revenue fiom that parking structure to
offset improvements to the Civic Center.
Discussion ensued on the merits of renovating the Civic Center
Auditorium and whether it would be more beneficial to approve $25
million in funding to do the seismic and ADA upgrade, to save the
building from further decline.
Motion to amend by Agency /Authority/Councilmember O'Day, by
allocating $25 million for seismic and ADA upgrades to the Civic Center
with the remaining balance going towards the renovation of Parking #6.
The amendment was accepted as friendly by the seconder. The motion
failed by the following vote:
AYES: Agency /Authority /Councilmembers O'Day, Shriver,
Chair /Mayor Pro Tem /Authority Vice Chair Davis
NOES: Agency /Authority /Councilmembers McKeown, Holbrook,
O'Connor, Chair /Mayor Bloom
ABSENT: None
Motion to amend to the main motion by Agency /Authority/
Coumcilmember Holbrook, to direct staff to pursue all available public
and private foundation grants as well as entities that provide grant monies
to contribute towards the Civic Center restoration project. The
amendment was accepted by the maker and seconder.
The motion, as amended, was approved by the following vote
AYES: Agency /Authority /Councilmembers O'Connor, Holbrook,
McKeown, Chair /Mayor Bloom
NOES: Agency /Authority /Councilmembers Shriver, O'Day,
Chair /Mayor Pro Tem/Authority Vice Chair Davis
ABSENT: None
Chair /Mayor Pro Tem/Authority Vice Chair Davis stated for the record
that her "no" vote was not a vote against the Civic or against the Arts, but
that it was a vote against the uncertainty that is associated with this
particular project and with her concerns that all of the cultural or other
alternatives have not been considered for adaptive reuse of the Civic
Center Auditorium.
ADJOURNMENT: On order of the Chair, the special joint meeting of the Redevelopment
May 24, 2011
Agency, City Council, and Public Financing Authority was adjourned on
Thursday, May 26, 2011, at 8:09 p.m., in memory of Chester Collins and
Diane Talarico.
ATTEST: APPROVED:
Maria M. Stewart chard Bloom
Authority Secretary Chair
Ae ae"Ald' ad*'
Denise Anderson - Warren
Acting Authority Secretary
6 May 24, 2011