TITLE
Recommendation to adopt resolution approving the Annual Report for October 1, 2016 to September 30, 2017, for the East Anaheim Street Parking and Business Improvement Area, declaring its intention to levy the annual assessment, and setting the date of hearing for Tuesday, October 11, 2016 at 5:00 p.m. (Districts 3,4)
DISCUSSION
The East Anaheim Street Business Alliance (EASBA) promotes and markets the commercial area along Anaheim Street using funds generated through the assessment of businesses located in the East Anaheim Street Parking and Business Improvement Area (EASPBIA). State law governing Parking and Business Improvement Areas requires that an Annual Report be submitted to the City Council by the Advisory Board designated for this Assessment District. On August 4, 2016, the EASPBIA Advisory Board voted to recommend to the City Council approval of the EASPBIA Annual Report (Exhibit A to Resolution).
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 significant change in the method of levying the assessment, and no significant change to the proposed activities.
The Fiscal Year 2017 Annual Report, transmitting the recommendations of the EASPBIA Advisory Board, proposes the following assessment rates:
c. Method of Assessment
Special benefit assessment for marketing and promotion of businesses operating within the area. The estimated 2016-2017 fiscal year revenue from business assessments is $140,000. Assessments are calculated as follows:
• Type 1 Businesses: Retail, recreation and entertainment, and unique businesses shall pay annual assessment fees of:
• Base Fee: $300 per year except that secondary licensees in these classes are exempt, and:
• Employee Fee: $15 per employee up to $300 maximum.
• Type 2 Businesses: Service, vending, professional, wholesale, contractor, manufacturing and miscellaneous mobile businesses shall pay annual assessment fees of:
• Base Fee: $200 per year except that secondary licensees in these classes shall pay a base fee of $120; and
• Employee Fee: $15 per employee up to $300 maximum.
• Type 3 Businesses: Non-residential space rental businesses shall pay annual assessment fees of:
• Base Fee: $120 per year Employee Fee: not applicable
Residential property rental, home-based and secondary licensees are exempt from the assessment.
The recommended Resolution grants approval of the Annual Report, declares the intention of the City Council to levy the assessment for proposed activities, and sets the date of the public hearing for October 11, 2016.
This matter was reviewed by Deputy City Attorney Amy R. Webber on August 15, 2016 and by Revenue Management Officer Julissa Jose-Murray on August 18, 2016.
TIMING CONSIDERATIONS
City Council action is requested on September 13, 2016, to set the date of the public hearing for October 11, 2016. The new contract year begins on October 1, 2016.
FISCAL IMPACT
It is estimated that the EASPBIA will generate $140,000 in FY 17 through the proposed continuation of the assessment. Assessment funds are collected through additional fees attached to EASPBIA business licenses and passed directly through to the EASBA for implementation of annual programs. Sufficient funds are included in the FY 17 Proposed Budget in the Parking and Business Area Improvement Fund (SR 132) in the Economic and Property Development Department (EP) for City pass-through payment to EASBA. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
APPROVED:
PATRICK H. WEST
CITY MANAGER