TITLE
Recommendation to approve the Downtown Long Beach Parking and Business Improvement Area (DLBPBIA) Annual Report continuing the DLBPBIA assessment for the period of October 1, 2017 through September 30, 2018; and authorize City Manager, or designee, to extend the agreement with the Downtown Long Beach Alliance for a one-year term. (Districts 1,2)
DISCUSSION
Downtown Long Beach Alliance (DLBA) has three established sources of revenue that pass through the City to the organization. These include business operator assessments, property owner assessments and downtown parking meter revenue sharing. This recommended action relates to business operator assessment funds that are used to promote and market downtown Long Beach on behalf of businesses located in the Downtown Long Beach Parking and Business Improvement Area (DLBPBIA). The City Council approves the property owner assessment separately.
The proposed agreement with DLBA requires the City to transmit all DLBPBIA assessment funds collected from downtown businesses to the DLBA every other month. 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. A copy of the Annual Report describing proposed activities and allocations is attached.
The Fiscal Year 2018 Annual Report, transmitting the recommendations of the DLBA Advisory Board, proposes the following assessment rates:
Method of Assessment
The self-assessment fees are collected through business licenses from downtown Long Beach businesses located within the DLBPBIA. The current annual assessment for FY 18 is approximately $432.88 per business and $7.28 per employee, and for Service-Based Independent Contractors $297.29 per business and $5.03 per employee.
The DLBA Board voted on May 4, 2017 to raise assessment rates 1.88 percent per the allowed CPI adjustment. The DLBA will provide quarterly reports to the City on expenditures and submit an annual report summarizing FY 18 activities.
This matter was reviewed by Deputy City Attorney Amy R. Webber on September 27, 2017 and by Budget Analysis Officer Julissa José-Murray on September 28, 2017.
TIMING CONSIDERATIONS
The DLBA contract year begins on October 1, 2017. City Council action is requested on October 17, 2017, to allow FY 18 assessment transfers to be made in accordance with the City’s contract with DLBA.
FISCAL IMPACT
It is estimated that the DLBPBIA will generate $627,760 in FY 18 through the proposed continuation of the assessment. Assessment funds are collected through additional fees attached to DLBPBIA business licenses. All revenues are passed directly through to the DLBA for implementation of annual programs. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER