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, 2016 through September 30, 2017; authorize City Manager to extend the agreement with the Downtown Long Beach Associates for a one-year term; and
Increase appropriations in the Parking and Business Area Improvement Fund (SR 132) in the Economic and Property Development Department (EP) by $12,020, offset by assessment revenues. (Districts 1,2)
DISCUSSION
The Downtown Long Beach Associates (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 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 (Budget Narrative) describes boundaries, proposed activities and budgetary information, as well as the method and basis for continuation of the assessment. The Budget Narrative proposes no change in the boundaries, basis and method of levying the assessment, and no significant change in proposed activities. A copy of the Budget Narrative describing proposed activities and allocations is attached.
The Fiscal Year 2017 (FY 17) Budget Narrative, transmitting the recommendations of the DLBA Advisory Board, proposes the following assessment rates:
Method of Assessment
The DLBPBIA assessment fees are collected through business licenses from Downtown Long Beach (DTLB) businesses located within the DLBPBIA. The current annual assessment for FY 17 is approximately $421.07 per business and $7.09 per employee, and for Service-Based Independent Contractors $289.18 per business and $4.91 per employee.
This City Council action estimates DLBPBIA assessment revenue of $616,046 for the contract period of October 1, 2016 through September 30, 2017. The DLBA Advisory Board voted on June 15, 2016 to raise assessment rates 1 percent per the allowed CPI adjustment. The DLBA will provide quarterly reports to the City on expenditures and submit an annual report summarizing FY 17 activities.
This matter was reviewed by Deputy City Attorney Amy R. Webber on September 26, 2016 and by Revenue Management Officer Julissa Josè-Murray on October 3, 2016.
TIMING CONSIDERATIONS
The DLBA agreement year begins on October 1, 2016. City Council action is requested on October 18, 2016, to allow FY 17 assessment transfers to be made in accordance with the City’s agreement with DLBA.
FISCAL IMPACT
Assessment payments are initially collected in the Parking and Business Area Improvement Fund (SR 132) in the Economic and Property Development Department (EP), on behalf of the DLBPBIA. The collected funds are then transferred to the DLBA to complete the duties assigned by the DLBPBIA. The estimated pass-through payments of $616,046 are higher than what is currently budgeted in FY 17. Therefore, an appropriation increase of $12,020 is requested in the Parking and Business Area Improvement Fund (SR 132) in the Economic and Property Development Department (EP), offset by an increase in assessment revenues. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
KATHRYN MCDERMOTT
INTERIM DIRECTOR OF
ECONOMIC AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER