TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing, and adopt resolution continuing the Belmont Shore Parking and Business Improvement Area program and assessment for the period of October 1, 2012 through September 30, 2013; and authorize City Manager to execute an agreement with the Belmont Shore Business Association for a one-year term. (District 3)
DISCUSSION
The Belmont Shore Business Association (BSBA) uses business license assessment funds to promote and market the commercial area along Second Street on behalf of businesses located in the Belmont Shore Parking and Business Improvement Area (BSPBIA). The BSBA 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 Assessment Report describing proposed activities and allocations is provided (attached). These items were reviewed by the City Council at its meeting of August 21, 2012.
The Assessment Report describes boundaries, proposed activities and budgetary information, as well as the method and basis for continuation of the assessment. The Assessment Report proposes no change in the boundaries, basis and method of levying the assessment, and no significant change in proposed activities.
At its August 21, 2012 meeting, the City Council approved Resolution No. RES-12-0075 granting approval of the Assessment Report, declaring the intention of the City Council to levy the assessment, and set September 18, 2012 as the date of the public hearing. A hearing notice, including a copy of the resolution, was published in local media within seven days of the hearing date, as required.
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 Assessment 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 50 percent or more 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.
Should the Assessment Report be approved, the City Council is requested to authorize the execution of an agreement with the BSBA for the use of assessment funds for promotional
purposes estimated at $130,000. The 2013 Assessment Report, transmitting the recommendations of the BSPBIA Advisory Commission, proposes the following assessment rates:
BELMONT SHORE PARKING AND BUSINESS IMPROVEMENT AREA ASSESSMENT FORMULA 2012 - 2013
CATEGORIES BASE RATE EMPLOYEE RATE
Financial Institution & Insurance $1,646.22 $16.50
Service Real Estate Office $638.70 $22.00
Retail - Restaurant w/alcohol & RTE $640.19 $9.63
Retail - Other $548.73 $8.25
Consulting $425.80 $22.00
Construction Contractor $425.80 $22.00
Professional $425.80 $22.00
Service - Other $319.35 $16.50
Misc. Rec/Ent, Vending, Manufacturing,
Unique & Wholesale $319.35 $16.50
39% Reduced Rate for Service-related
Independent Contractors $194.80 $16.50
Non-profits 0.00 0.00
Total estimated annual assessment: $130,000.00
This letter was reviewed by Assistant City Attorney Charles Parkin on August 23, 2012 and Budget Management Officer Victoria Bell on August 27, 2012.
TIMING CONSIDERATIONS
City Council action is requested on September 18, 2012 to allow purchase order and contract modifications to be completed so that Fiscal Year 2013 (FY 13) assessment transfers may be made in a timely manner as required by the Agreement of Funding with the BSBA.
FISCAL IMPACT
It is expected that the BSPBIA will generate $130,000 in FY 13 through continuation of the existing assessment. Sufficient funds are included in the FY 13 Budget in the Parking and Business Area Improvement Fund (SR 132) in the Department of Public Works (PW). FY 13 assessment revenue will fully offset the allocation in SR 132. There is no impact to the General Fund or local jobs associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH CONFIRMING, FOLLOWING HEARING, THE ANNUAL REPORT OF THE BELMONT SHORE PARKING AND BUSINESS IMPROVEMENT AREA ADVISORY COMMISSION, IMPOSING AND CONTINUING THE LEVY OF ANNUAL ASSESSMENT AS SET FORTH IN SAID REPORT AND SETTING FORTH OTHER RELATED MATTERS.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER