TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing, adopt resolution continuing the Bixby Knolls Parking and Business Improvement Area assessment for the period of October 1, 2016 through September 30, 2017; and authorize City Manager 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 governs 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. These items were reviewed by the City Council at its meeting of September 20, 2016.
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, basis and method of levying the assessment, and no significant change in proposed activities.
At its September 20, 2016 meeting, City Council approved Resolution No. RES-16-0088, granting approval of the Annual Report, declaring the intention of the City Council to levy the assessment, and set October 18, 2016 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.
A Resolution is attached approving the Annual Report and Budget for October 1, 2016 to September 30, 2017. Should the Annual Report be approved, the City Council is requested to authorized the execution of an agreement with the BKBIA for the use of assessment funds for marketing and promotional purposes. The Annual Report, transmitting the recommendations of the BKPBIA Advisory Board, proposes the following assessment rates:
Method of Assessment
The annual assessment for businesses was increased to $250 after 20 years at a stagnant rate. An additional $20 is added annually to the assessment fee to make up the gap between RDA contracted funds and assessment fees for the next five years. Non-profits are assessed at $150.
|
|
BUSINESS BASE RATE |
NON-PROFIT BASE RATE |
|
October 1, 2015-September 30, 2016 |
$250 |
$150 |
|
October 1, 2016-September 30, 2017 |
$250 + CPI ADJ + $20 |
$150 + CPI ADJ + $20 |
This matter was reviewed by Deputy City Attorney Amy R. Webber on September 26, 2016 and by Revenue Management Officer Julissa Josè-Murray on September 22, 2016.
TIMING CONSIDERATIONS
City Council action is requested on October 18, 2016, to allow purchase order and contract modifications to be completed so that Fiscal Year 2017 (FY 17) 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 $196,000 in FY 17 through continuation of the existing assessment. Assessment funds are collected through additional fees attached to BKPBIA business licenses and passed directly through to the BKBIA for implementation of their annual programs. Sufficient funds are included in the FY 17 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 BKBIA. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
BODY
[Enter Body Here]
Respectfully Submitted,
KATHRYN MCDERMOTT
INTERIM DIRECTOR OF
ECONOMIC AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER