TITLE
Recommendation to declare ordinance amending Ordinance No. ORD-06-0037, modifying the assessments to be levied with the Bixby Knolls Parking and Business Improvement Area, read and adopted as read. (Districts 7,8)
DISCUSSION
The Bixby Knolls Business Improvement Association (BKBIA) promotes and markets the Bixby Knolls commercial area, using funds generated through the assessment of area businesses located in the Bixby Knolls Parking and Business Improvement Area (BKPBIA). State law governing Parking and Business Improvement Areas requires that an annual assessment report be submitted to the City Council by the designated Advisory Board. On April 24, 2014, the BKPBIA Advisory Board voted to approve the Fiscal Year 2015 BKPBIA Assessment Report (Attachment A).
The Assessment Report describes boundaries, proposed activities and budgetary information, as well as the method and basis for continuation of the assessment. The report proposes a change in the method of levying the assessment. Since 1995, there have been no assessment fee increases for businesses located in the district. The change in assessment rate is due to the renewal of the previously allowed CPI increase. The BKPBIA board unanimously approved the revised assessment methodology which is detailed in the following table:
Assessment Formula
All businesses, regardless of category, will be assessed $250 dollars beginning October 1, 2014.
Non-profits will now be assessed $150.
Yearly CPI adjustment
Additional $20 added each year
BUISNESS BASE RATE NON-PROFIT BASE RATE
October 1, 2014-September 30, 2015 $250 $150
There are no significant changes to the proposed activities.
There are no changes to the area boundaries.
To continue the assessment levy, State law requires that a public hearing be held on the proposed program and assessment. At its meeting of September 2, 2014, City Council approved the Assessment Report and set the hearing date for October 21, 2014. State law further 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 Assessment Report.
The law 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 against a specific portion of the program, the City Council shall eliminate that portion.
A copy of RES 14-0080 was mailed to all businesses in the district on October 7, 2014. A hearing notice and copy of the Resolution was also published in local media. The attached Ordinance amends ordinance ORD-06-0037.
Should the Assessment Report be approved, the City Council is requested to authorize the extension of an agreement with the BKBIA for the use of assessment funds for promotional purposes.
This matter was reviewed by Deputy City Attorney Amy Webber on October 6, 2014, and by Budget Management Officer Victoria Bell on October 7, 2014.
TIMING CONSIDERATIONS
The BKBIA contract year begins October 1, 2014. City Council action is requested following the public hearing on October 21, 2014, to allow purchase order and contract modifications to be completed so that Fiscal Year 2015 (FY 15) assessment transfers may be made as required by the Agreement for Funding with the BKBIA.
FISCAL IMPACT
It is estimated that the BKPBIA will generate $131,487 in FY 15 through the proposed assessment. Assessment funds are collected through additional fees attached to BKPBIA business licenses and passed directly through to the BKBIA for implementation of annual programs. Sufficient appropriation is budgeted in FY15 in the Parking and Business Area Improvement Fund (SR 132) in the Public Works Department (PW). Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
BODY
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AMENDING ORDINANCE NO. ORD-06-0037, MODIFYING THE ASSESSMENTS TO BE LEVIED WITH THE BIXBY KNOLLS PARKING AND BUSINESS IMPROVEMENT AREA.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF ECONOMIC AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER