TITLE
Recommendation to approve the Magnolia Industrial Group Property and Business Improvement District Annual Report and Assessment for the period of December 1, 2007 through November 30, 2008, automatically extending the current agreement with the Magnolia Industrial Group, Inc. for a one-year period. (District 1)
DISCUSSION
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, pursuant to the Property and Business Improvement Law of 1994 (Law), the City Council re-established the MIG-PBID for an additional five-year period. On July 15, 2003, City Council again reestablished the MIG-PBID. This re-establishment required a majority vote of the property owners in favor of re-establishing the district for a new term of ten years.
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 2007-2008 Annual Report is attached for City Council approval. The levy of assessment will cover the period of December 1, 2007 through November 30, 2008.
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. The actual local Consumer Price Index (CPI) increase for the most recent period is 3.8 percent. For Fiscal Year 2008 (FY 08), the MIG Board voted to increase the assessment rate just 1.5 percent, an amount sufficient to cover increases in the cost of security services.
In FY 08, properties under or equal to 20,000 square feet are assessed a monthly amount of $61.09. Properties larger than 20,000 square feet are assessed a monthly amount of $61.09 plus $0.001100 for each square foot in excess of 20,000, with the maximum monthly assessment limited to $122.18. Property assessment to be collected for the period of December 1, 2007 through November 30, 2008 total an estimated $81,669.
The Law also allows the City to contract with service providers to carry out the MIGPBID 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 letter was reviewed by Assistant City Attorney Heather Mahood on October 22, 2007, Budget Management Officer Victoria Bell on November 5, 2007 and the City Treasurer's Office on October 23, 2007.
TIMING CONSIDERATIONS
The MIG-PBID's 2007 contract ends on November 30, 2007. City Council approval of the Annual Report and Assessment is requested on November 13, 2007 to continue the assessment and extend the contract for another year.
FISCAL IMPACT
Sufficient funds are currently appropriated in the Parking and Business Area Improvement Fund (SR 132) in the Department of Community Development (CD).
Estimated FY 08 assessment revenue will fully offset expenditures in SR 132. There is no impact to the General Fund.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
ACTING DIRECTOR OF COMMUNITY DEVELOPMENT
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |