TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, and adopt resolution continuing the Bixby Knolls 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 Bixby Knolls Business Improvement Association for a one-year term. (Districts 5,8)
DISCUSSION
The Bixby Knolls Parking and Business Improvement Area (BKPBIA) was established by the City Council in 1989, allowing for the levy of an annual business license assessment to be paid by businesses located in the BKPBIA. The City of Long Beach (City) contracts with the Bixby Knolls Business Improvement Association (BKBIA) to manage the BKPBIA and the BKBIA Board of Directors serves as the Advisory Board to the City Council on matters related to the BKPBIA. The BKBIA promotes and markets the BKPBIA using funds generated through the BKPBIA business license assessment.
State law governing Parking and Business Improvement Areas requires that an annual report be submitted to the City Council by the BKBIA Advisory Board. On October 4, 2022, the BKBIA Advisory Board voted to recommend to the City Council approval of the 2022-2023 BKPBIA Annual Report (Annual Report - Exhibit A to the Resolution), which describes boundaries, proposed activities, budgetary information, and the method and basis for the continuation of the assessment. The Annual Report proposes no change to the BKPBIA boundaries. The Annual Report proposes a $205.75 increase in the base rate for businesses and a $55.45 increase in the base rate for nonprofit organizations.
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-22-1275 granting approval of the Annual Report, declaring its intention to levy the assessment, and setting 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 provides 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 will not levy the assessment. If protests in such quantity are directed against a specific portion of the program, the City Council will eliminate that portion.
The Annual Report, transmitting the recommendations of the BKBIA Advisory Board, proposes the following assessment rates:
Method of Assessment
The current annual base assessment for businesses is $314.25 and $204.55 for nonprofits. The BKBIA Advisory Board proposes an increase to the base assessment fee as there has not been a significant increase in seven years. The fee shall be comparable to other PBIAs and reflect the level of service and value offered by the BKBIA to its membership.
The BKBIA Advisory Board is not requesting a Consumer Price Index (CPI) adjustment for Fiscal Year 2023 (FY 23). After conducting a cost-benefit analysis of the services they offer to their membership and the cost to provide them, they realized a larger increase was necessary to maintain the current level services. Since the BKBIA lost $200,000 in annual revenue from the Redevelopment Agency, they have only implemented one significant assessment increase seven years ago. Their analysis included a comparison of several Business Improvement Districts (BID) in Long Beach and arrived at a midpoint assessment amount. In early 2022, BKBIA consulted City staff managing the BID program for guidance and support. The result of this process was a recommendation to increase the current annual base assessment to $520 for businesses and to $260 for nonprofits. The BKBIA notified members of the BKPBIA of the proposed increase and held public meetings. BKPBIA membership supports the increase and has not expressed opposition.
|
FY |
Business Base Rate |
Total Rate |
Nonprofit Base Rate |
Total Rate |
|
22 |
$314.25 |
$314.25 |
$204.55 |
$204.55 |
|
23 |
Increase $205.75 |
$520.00 |
Increase $55.45 |
$260.00 |
Each year, 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 BKBIA 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 20, 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 BKBIA.
FISCAL IMPACT
It is estimated that the BKPBIA will generate $319,200 with the increased base rate in FY 23 through the proposed continuation of the assessment. This amount is $115,200 over FY 22. Assessment funds are collected by the City on behalf of the BKPBIA through additional fees and passed directly through to the BKBIA 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,
BO MARTINEZ
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER