TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and adopt resolution continuing the Belmont Shore Parking and Business Improvement Area assessment levy for the period of October 1, 2018 through September 30, 2019; and, authorize City Manager, or designee, to extend the agreement with the Belmont Shore Business Association for a one-year term. (District 3)
DISCUSSION
The Belmont Shore Business Association (BSBA) promotes and markets the Second Street commercial area using funds generated through the assessment of area businesses located in the Belmont Shore Parking and Business Improvement Area (BSPBIA). To continue the assessment levy, state law requires that a public hearing be held on the proposed program and assessment. A copy of the Annual Report describing proposed assessments, activities, and allocations is attached to the Resolution as Exhibit A.
The Annual Report describes boundaries, proposed activities, and budgetary information, as well as the method and basis for continuation of the assessment. The Annual Report proposes no change in the district boundaries, basis, and method of levying the assessment, and no significant change in proposed activities.
At its August 21, 2018 meeting, the City Council approved Resolution No. RES-18-0123 granting approval of the Annual Report, declaring the intention of the City Council to levy the assessment, and set September 11, 2018 as the date of the public hearing. A hearing notice, including a copy of the Resolution, was published in local media.
State law provides that the City Council shall hear and consider all protests against the assessment, program, boundaries of the area, and/or any benefit zone as proposed in the Annual Report. State law further provides that protests may be made orally or in writing. Protests regarding the regularity or sufficiency of the proceedings shall be in writing. If written protests are received from area business owners representing 50 percent or more of the proposed assessments, the City Council shall not levy the assessment. If protests in such quantity are directed against a specific portion of the program, the City Council shall eliminate that portion.
The Fiscal Year 2019 (FY 19) Annual Report, transmitting the recommendations of the BSPBIA Advisory Board, proposes the following assessment rates, calculated by category of business and incorporate a base rate plus a per employee rate:
BELMONT SHORE PARKING AND BUSINESS IMPROVEMENT AREA (BSPBIA)
PBIA ASSESSMENT FORMULA
2018 - 2019
CATEGORIES BASE RATE EMPLOYEE RATE
Financial Institution $1,646.22 $16.50
Service Real Estate Office $638.70 $22.00
Retail - Restaurant w/alcohol & RTE $640.19 $9.63
Retail - Other $548.73 $8.25
Consulting $425.80 $22.00
Construction Contractor $425.80 $22.00
Insurance Agent Professional $425.80 $22.00
Professional $425.80 $22.00
Service - Other $319.35 $16.50
Misc. Rec/Ent, Vending, Manufacturing,
Unique & Wholesale $319.35 $16.50
39% Reduced Rate for Service-related Independent
Contractors $194.80 $16.50
Non-profits 0.00 0.00
Total estimated annual assessment: $140,000
This matter was reviewed by Deputy City Attorney Amy R. Webber on August 23, 2018 and by Budget Analysis Officer Julissa José-Murray on August 22, 2018.
TIMING CONSIDERATIONS
City Council action is requested on September 11, 2018, to allow contract modifications to be completed, so that FY 19 assessment transfers may be made as required by the Agreement of Funding with the BSBA.
FISCAL IMPACT
It is estimated that the BSPBIA will generate $140,000 in FY 19 through continuation of the existing assessment. Assessments are collected by the City on behalf of the BSPBIA through additional fees attached to BSPBIA business licenses and passed directly through to the BSBA for implementation of annual programs. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER