Long Beach, CA
File #: 19-1154    Version: 1 Name: ED - Downtown LB PBIA D12
Type: Contract Status: CCIS
File created: 10/30/2019 In control: City Council
On agenda: 11/19/2019 Final action: 11/19/2019
Title: Recommendation to approve the Downtown Long Beach Parking and Business Improvement Area Annual Report continuing the annual business license assessment for the period of October 1, 2019 through September 30, 2020; and, authorize City Manager, or designee, to extend the agreement with the Downtown Long Beach Alliance for a one-year term. (Districts 1,2)
Sponsors: Economic Development
Attachments: 1. 111919-R-17sr&att.pdf

TITLE

Recommendation to approve the Downtown Long Beach Parking and Business Improvement Area Annual Report continuing the annual business license assessment for the period of October 1, 2019 through

September 30, 2020; and, authorize City Manager, or designee, to extend the agreement with the Downtown Long Beach Alliance for a one-year term.  (Districts 1,2)

 

DISCUSSION

The Downtown Long Beach Alliance (DLBA) has three established sources of revenue that are received by the City of Long Beach (City) and distributed to the organization. These include business license assessments, property owner assessments, and downtown parking meter revenue sharing. This recommended action relates to the business license assessment funds that are used to promote and market Downtown Long Beach on behalf of businesses located in the Downtown Long Beach Parking and Business Improvement Area (DLBPBIA).

 

The DLBPBIA was established by the City Council in 1973, allowing for the levy of an annual business license assessment to be paid by businesses located in the DLBPBIA. The City contracts with the DLBA to manage the DLBPBIA, and the DLBA Board of Directors serves as the Advisory Board to the City Council on matters related to the DLBPBIA. The DLBA promotes and markets the DLBPBIA using funds generated through the DLBPBIA business license assessment.

 

The City’s agreement with the DLBA for DLBPBIA funding requires that an Annual Report be submitted to the City Council by the Advisory Board designated for this Assessment District. The DLBPBIA 2019-2020 Annual Report (Annual Report) describes boundaries, proposed activities, and budgetary information, as well as the method and basis for continuation of the assessment (Attachment). The Annual Report proposes no changes to the DLBPBIA boundaries or the method of levying the assessment and no significant change to proposed activities. The Annual Report, transmitting the recommendations of the Advisory Board, proposes the following assessment rates:

 

 

Method of Assessment

 

DLBPBIA assessments are collected through business licenses from businesses within the DLBPBIA. The annual assessment is approximately $461.93 per business and $7.76 per employee for businesses, and $317.24 per business and $5.37 per employee for service based independent contractors. The assessments were raised by 3.81 percent in July 2019 per the allowed Consumer Price Index (CPI) adjustment.

 

This matter was reviewed by Principal Deputy City Attorney Gary J. Anderson on October 29, 2019 and by Budget Management Officer Rhutu Amin Gharib on October 30, 2019.

 

TIMING CONSIDERATIONS

City Council action is requested on November 19, 2019, so that FY 20 assessment payments may be made as required by the Agreement for Funding with the DLBA. The new contract year began on October 1, 2019.

 

FISCAL IMPACT

It is estimated that the DLBPBIA assessment will generate $669,828 in FY 20 through the proposed continuation of the assessment. Assessment funds are collected by the City on behalf of the DLBA through additional fees and passed directly through to the DLBA 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.

 

Respectfully Submitted,

JOHN KEISLER

DIRECTOR OF ECONOMIC DEVELOPMENT

 

 

 

APPROVED:

 

THOMAS B. MODICA

ACTING CITY MANAGER