TITLE
Recommendation to adopt Resolution of Intention to establish the Andy Street Property and Business Improvement District; set the date for a public hearing for Tuesday, July 16, 2013 at 5:00 p.m.; and receive the petition and designate the Administrative Board. (District 9)
DISCUSSION
The Andy Street Multi-Family Improvement District (AMID) was created in 2007 to address issues of major and minor crime, particularly graffiti, illegal dumping, prostitution, and vandalism. At the time, the area was experiencing a significant amount of major crimes, including violent crimes against persons, with the Police Department receiving an average of 55 calls for service every month. Residents and property owners seeking a change worked with the City to create the AMID.
Over the past five years, the AMID funds have been used to reduce crime, improve safety, and improve the economic vitality of the District. The Andy Street Community Association managed the District funds and programs. The AMID's security programs have been highly successful in improving the Andy Street area. Calls for service to the Police Department have been reduced approximately 80 percent (e.g., in May 2012 there were 16 calls, June also had 16 calls, and July had 12). Notably, the incidence of major violent crimes has been nearly eliminated.
The AMID expired as of October 1, 2012, and in accordance with State Law, Multi-Family Improvement Districts require a majority of two-thirds vote in support of re-establishment. That threshold was not met for the AMID re-establishment and, therefore, the AMID was formally dis-established by the City Council on March 19, 2013.
The State of California Property and Business Improvement District Law of 1994 (Section 33600 et seq. of the California Streets and Highways Code) and Article XIIID of the California Constitution (Proposition 218) enables the City to create a property-based assessment district allowing property owners to voluntarily assess themselves for various services beyond those provided by the City, including public safety and beautification programs. All properties located within the boundaries of the proposed Andy Street Property and Business Improvement District (APBID) that receive special benefits as determined by the Engineer's Report must be allocated a proportional share of the assessment.
This proposed new APBID will provide clean and safe programs to benefit assessed Andy Street property owners for an initial period of five years. Developed by a coalition of property and business owners, the APBID is a benefit assessment district whose goal would be to improve the Andy Street area and will build upon the prior success of the AMID. The APBID is a modernization and replacement of the former AMID. If established, the properties within the new District would be levied an assessment beginning in January 2014 for an initial period of five years, and ending December 31, 2018, in accordance with the methodology detailed in the Management Plan and Engineer's Report.
Establishment of the APBID is accomplished through a majority vote of at least fifty percent of the property owners in favor of the proposed assessment for the new term. Pursuant to the California Constitution, the vote on a proposed special assessment must be weighted according to the proportional financial obligation of the affected properties. The assessment is based upon the special benefits each individual parcel receives as determined by an independent Engineer's Report prepared pursuant to State law.
In order for the APBID to be established, petitions were delivered to each individual parcel owner within District. Signed petitions that were returned have met the threshold of more than 50 percent of the proposed assessment to be levied. Therefore, the City Council may initiate procedings to form the District by the adoption of a Resolution of Intention (ROI) to establish the District, and to set public hearings and issue ballots to each individual parcel owner.
The APBID annual budget for the initial year of its five-year operation is anticipated to be $94,500. The budget may be subject to an annual assessment rate increase of up to four percent (4%) per year. The annual assessment rate for parcels is based on parcel square footage and parcel use. Annual assessment rates for the initial year are:
Parcel Type |
Annual Assessment Rate (Initial Year) |
Parcels with Multi-family Residential Uses |
$0.66 per parcel square foot |
Parcels Owned & Utilized by Non-Profit Entities |
$0.01 per parcel square foot |
Bonds will not be issued as part of this APBID.
The APBID includes all parcels fronting Andy Street, and Assessor's parcel number 7121-008-008. A detailed map of the District is included in the attached Management District Plan.
If the City Council adopts the ROI, a formal vote of the property owners will be conducted in accordance with State law. This will include written notice of the proposed assessment to the record owners of all assessed parcels, a voting ballot, and a statement that a majority protest vote will prevent the assessment's passage. The City will conduct a public hearing upon the proposed assessment not less than 45 days after mailing the notice to the record property owners, will consider all protests against the proposed assessment, and will tabulate the ballots. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property. The results of this special election shall be announced at the public hearing on June 11, 2013. The Resolution also appoints the Andy Street Community Association (ASCA) Board as the owners' association for the APBID.
This matter was reviewed by Assistant City Attorney Charles Parkin on March 29, 2013 and Budget Management Officer Victoria Bell on April 12, 2013.
TIMING CONSIDERATIONS
City Council action is required by May 7, 2013, to allow timely completion of the balloting process and submittal of the levy to the Los Angeles County Assessor before August 9, 2013 in order for the proposed new assessment to become effective in calendar year 2014.
FISCAL IMPACT
The FY 14 assessment is estimated to be $94,500 and will be fully offset by revenue from properties within the APBID. If the APBID is established, FY 14 revenue and expenditures will accrue in the Parking and Business Area Improvement Fund (SR 132) in the Department of Public Works (PW). An appropriation increase is not requested at this time, but will be requested as part of FY 14. There is no fiscal impact to General Fund. Approval of the recommendation will result in a positive local job impact.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH TO ESTABLISH THE ANDY STREET PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, FIXING THE TIME AND PLACE OF A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF
Respectfully Submitted,
ARA MALOYAN, PE
ACTING DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER