TITLE
Recommendation to approve the Magnolia Industrial Group Property and Business Improvement District Annual Report and Assessment for the period of December 1, 2012 through November 30, 2013, automatically extending the current agreement with the Magnolia Industrial Group, Inc., for a one-year period. (District 1)
DISCUSSION
Pursuant to the Property and Business Improvement Law of 1994 (Law), the Magnolia Industrial Group Property and Business Improvement District (MIG-PBID) was initially established by the City Council in 1996 for a three-year period. On July 20, 1999, the City Council re-established the MIG-PBID for an additional five years. On July 15, 2003, following a majority vote of the property owners in favor for a new ten-year term, the City Council again re-established the MIG-PBID. Under the Law, Magnolia Industrial Group (MIG) property owners assess themselves an additional fee to pay for supplemental security patrol and the cleanup and removal of items, such as weeds, trash, abandoned furniture and tires within the MIG area.
The 1994 Law requires that the MIG-PBID Advisory Board approve and file an Annual Report describing their projected budget and expenditures. The 2012-2013 Annual Report is attached for City Council approval. The levy of assessment will cover the period of December 1, 2012 through November 30, 2013.
The Board-approved MIG-PBID rate of assessment is based on the square footage of developed property within the boundaries, as shown on the map in Section 7 of the attached Annual Report. The MIG-PBID Management Plan allows up to a 4 percent per year cost-of-living increase in the assessment rate. For Fiscal Year 2012-2013, the applicable increase in the Consumer Price Index was approximately 2.02 percent. For Fiscal Year 2013 (FY 13), the MIG Board voted to maintain the assessment at the same rate as Fiscal Year 2012.
In FY 13, properties over 810 square feet up to 20,000 square feet are assessed a monthly amount of $62. Properties less than 810 square feet will not be assessed. Properties larger than 20,000 square feet are assessed a monthly amount of $62 plus $0.001116 for each square foot in excess of 20,000, with the maximum monthly assessment limited to $124. The effective maximum assessment is $1,488 er owner per year. This is within the maximum allowed for the district according to Section 6.3 of the MIG-PBID Management Plan. The total property assessment to be collected for the period of December 1, 2012 through November 30, 2013 is estimated at $84,402.
The Law also allows the City to contract with service providers to carry out the MIG-PBID Program. Since 1996, the City of Long Beach has contracted with MIG, Inc., to carry out the security and maintenance program. The current agreement provides that the term be automatically extended on a year-to-year basis upon City Council approval of the Assessment Report (included in the Annual Report) and related levy of assessments.
This matter was reviewed by Assistant City Attorney Charles Parkin on October 9, 2012, and Budget Management Officer Victoria Bell on October 18, 2012.
TIMING CONSIDERATIONS
The MIG-PBID's 2012 contract ends on November 30, 2013. City Council approval of the Annual Report and Assessment is requested on November 13, 2012 to continue the assessment and extend the contract for another year.
FISCAL IMPACT
Sufficient funds to cover the recommended contract are included in the FY 13 Budget in the Parking and Business Area Improvement Fund (SR 132) in the Department of Public Works (PW). The contract amount will be fully offset by FY 13 estimated assessment revenue of $84,402. Approval of this recommendation will result in a positive local job impact.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER