TITLE
Recommendation to adopt resolution approving the Annual Report for October 1, 2020 to September 30, 2021, for the Zaferia Parking and Business Improvement Area, declaring its intention to levy the annual business assessment, and setting the date of hearing for Tuesday, October 6, 2020. (Districts 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 June 18, 2020, the ZPBIA Advisory Board voted to recommend to the City Council approval of the 2020-2021 ZPBIA 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 continuation of the assessment. The 2020-2021 ZPBIA Annual Report proposes no change to the ZPBIA boundaries or the method of levying the assessment and no significant change to proposed activities.
The 2020-2021 ZPBIA Annual Report, transmitting the recommendations of the Advisory Board, proposes the following assessment rates:
Method of Assessment
The estimated 2020-2021 fiscal year revenue from business assessments is $113,804. 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: Non-profit 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 2021 CPI adjustment.
The recommended Resolution approves the Annual Report, declares the intention of the City Council to levy the assessment for proposed activities, and sets the date of the public hearing for October 6, 2020.
This matter was reviewed by Deputy City Attorney Amy R. Webber on August 24, 2020 and by Budget Management Officer Rhutu Amin Gharib on August 27, 2020.
TIMING CONSIDERATIONS
City Council action is requested on September 15, 2020, to set the date of the public hearing for October 6, 2020. The new contract year begins on October 1, 2020.
FISCAL IMPACT
It is estimated that the ZPBIA will generate $113,804 in FY 21 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.
BODY
[Enter Body Here]
Respectfully Submitted,
JOHN KEISLER
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER