TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and adopt resolution continuing the Zaferia Parking and Business Improvement Area assessment levy for the period of October 1, 2022 through September 30, 2023; and, authorize City Manager, or designee, to extend the agreement with the Zaferia Business Association for a one-year term. (Districts 2,3,4)
DISCUSSION
The Zaferia Parking and Business Improvement Area (ZPBIA), formerly known as the East Anaheim Street Parking and Business Improvement Area, was established by the City Council in 2010, allowing for the levy of an annual business license assessment to be paid by businesses located in the ZPBIA. The City of Long Beach (City) contracts with the Zaferia Business Association (ZBA) to manage the ZPBIA and the ZBA Board of Directors serves as the Advisory Board to the City Council on matters related to the ZPBIA. The ZBA promotes and markets the commercial area along East Anaheim Street using funds generated through the ZPBIA business license assessment.
State law governing Parking and Business Improvement Areas requires that an annual report be submitted to the City Council by the Advisory Board designated for this Assessment District. On August 4, 2022, the ZPBIA Advisory Board voted to recommend to the City Council approval of the 2022-2023 ZPBIA Annual Report (Annual Report - Exhibit A to the Resolution).
The Annual Report describes boundaries, proposed activities, and budgetary information, as well as the method and basis for the continuation of the assessment. The Annual Report proposes no change to the ZPBIA boundaries or the method of levying the assessment and no significant change to proposed activities.
To continue the assessment levy, State law requires that a public hearing be held on the proposed program and assessment. On November 1, 2022 the City Council approved Resolution No. RES-22-1273 granting approval of the Annual Report, declaring the intention of the City Council to levy the assessment, and set November 15, 2022 as the date of the public hearing. A hearing notice, including a copy of the Resolution, was published in the local media.
State law requires that the City Council 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. If written protests are received from area business owners representing 50 percent or more of the proposed assessments, the City Council must not levy the assessment. If protests in such quantity are directed against a specific portion of the program, the City Council must eliminate that portion.
The Annual Report, transmitting the recommendations of the Advisory Board, proposes the following assessment rates:
Method of Assessment
The estimated 2022-2023 fiscal year revenue from business assessments is $127,800. Assessments are calculated by category of business and incorporate a base rate plus a per-employee rate. Businesses categories and rates are as follows:
• Type 1 Businesses: Retail, recreation and entertainment, unique businesses, and banking institutions, pay annual assessment fees of:
o Base Fee: $300 per year except that secondary licensees in these classes are exempt
o Employee Fee: $15 per employee up to $300 maximum
• Type 2 Businesses: Service, vending, professional, wholesale, contractor, manufacturing, and miscellaneous mobile pay annual assessment fees of:
o Base Fee: $200 per year except that secondary licensees in these classes pay a base fee of $120
o Employee Fee: $15 per employee up to $300 maximum
• Type 3 Businesses: Non-residential space rental businesses pay an annual assessment fee of:
o Base Fee: $120 per year
o Employee Fee: not applicable
• Type 4 Businesses: Nonprofit businesses pay an annual assessment fee of:
o Base Fee: $100 per year
o Employee Fee: not applicable
• Type 5 Businesses: Home-based businesses that voluntarily choose to be a member of the organization pay an annual assessment fee of:
o Base Fee: $100 per year
o Employee Fee: not applicable
Residential property rental is exempt from the assessment.
The City calculates the Consumer Price Index (CPI), an adjustment for consumer goods and services, and applies the CPI to various City fees on July 1st of each year. Parking and Business Improvement Area Advisory Boards may request a CPI adjustment for business license assessments. The ZPBIA Advisory Board has decided not to request a July 2023 CPI adjustment.
This matter was reviewed by Deputy City Attorney Marsha Yasuda on October 18, 2022, and by Budget Operations and Development Officer Rhutu Amin Gharib on October 27, 2022.
TIMING CONSIDERATIONS
City Council action is requested on November 15, 2022, so that Fiscal Year 2023 (FY 23) assessment transfers may be made as required by the Agreement for Funding with the ZBA.
FISCAL IMPACT
It is estimated that the ZPBIA will generate $127,800 in FY 23 through the proposed continuation of the assessment. Assessment funds are collected by the City on behalf of the ZBA through additional fees attached to ZPBIA business licenses and passed directly through to the ZBA for implementation of annual programs. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
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Respectfully Submitted,
BO MARTINEZ
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER