TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing, and adopt resolution continuing the Bixby Knolls Parking and Business Improvement Area assessment for the period of October 1, 2017 through September 30, 2018; and, authorize City Manager, or designee, to extend the agreement with the Bixby Knolls Business Improvement Association for a one-year term. (Districts 7,8)
DISCUSSION
The Bixby Knolls Business Improvement Association (BKBIA) promotes and markets the commercial area along Atlantic Avenue and Long Beach Boulevard using funds generated through the assessment of businesses located in the Bixby Knolls Parking and Business Improvement Area (BKPBIA). The BKBIA administers the assessment to be collected. 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 boundaries, and no change in proposed activities.
At its September 12, 2017 meeting, the City Council approved Resolution No. RES-17-0093 granting approval of the Annual Report, declaring the intention of the City Council to levy the assessment, and set October 3, 2017 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 greater than 50 percent 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 2018 Annual Report, transmitting the recommendations of the BKPBIA Advisory Board, proposes the following assessment rates:
Assessment Formula
The annual assessment was set to include a $20 increase in 2016 to make up the shortfall in funding anticipated in 2020, when the contract with the Long Beach Redevelopment Agency expires. However, the BKBIA board requested a one-time delay to enable adequate stakeholder outreach. In July 2017, the BKBIA assessment rates were increased to include CPI and the additional $20 assessment approved in 2016. An additional $20 assessment will be applied annually to the rate through 2023. The BKPBIA assessment will be implemented on a July 1 to June 30 fiscal year, rate adjustments will take effect each July.
|
|
BUSINESS BASE RATE |
NON-PROFIT BASE RATE |
|
Prior to July 1, 2016 |
$250 |
$150 |
|
July 1, 2016 - June 30, 2017 |
$252.27 |
$151.36 |
|
July 1, 2017 - June 30, 2018 |
$272.27 + CPI + $20 |
$171.36 + CPI + $20 |
|
July 1, 2018 - June 30, 2019 |
Prior Year Rate + CPI + $20 |
Prior Year Rate + CPI + $20 |
This matter was reviewed by Deputy City Attorney Amy R. Webber and by Budget Analysis Officer Julissa Josè-Murray on September 11, 2017.
TIMING CONSIDERATIONS
City Council action is requested on October 3, 2017, to allow purchase order and contract modifications to be completed so that FY 18 assessment transfers may be made as required by the Agreement of Funding with the BKBIA.
FISCAL IMPACT
It is estimated that the BKPBIA will generate $250,000 in FY 18 through the proposed continuation of the assessment. Assessment funds are collected through additional fees attached to BKPBIA business licenses. All revenues are passed directly through to the BKBIA 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