TITLE
Recommendation to receive supporting documentation into the record, conclude the hearing, and adopt resolution continuing the Belmont Shore Parking and Business Improvement Area assessment for the period of October 1, 2014 through September 30, 2015; and authorize City Manager to extend the agreement with the Belmont Shore Business Association for a one-year term. (District 3)
DISCUSSION
The Belmont Shore Business Association (BSBA) uses business license assessment funds to promote and market the commercial area along Second Street on behalf of businesses located in the Belmont Shore Parking and Business Improvement Area (BSPBIA). The BSBA governs the assessment to be collected. To continue the assessment levy, State law requires that a public hearing be held on the proposed program and assessment. A copy of the Annual Report describing proposed assessments, activities and allocations is attached to the Resolution as Exhibit A. These items were reviewed by the City Council at its meeting of August 19, 2014.
The Annual Report describes boundaries, proposed activities and budgetary information, as well as the method and basis for continuation of the assessment. The Annual Report proposes a revision in the basis and method of levying the assessment for insurance agents. The proposed revision is a reduction in the annual assessment rate from $1,646.22 plus $16.50 per employee, to an annual rate of $425.80 plus $22.00 per employee. There are no proposed significant changes in activities and no changes to the existing boundaries. A copy of the Annual Report describing proposed activities and allocations is attached.
At its August 19, 2014 meeting, City Council approved Resolution No. RES-14-0071 granting approval of the Annual Report, declaring the intention of the City Council to levy the assessment, and set September 16, 2014 as the date of the public hearing. A hearing notice, including a copy of the Resolution, was published in local media.
State law provides that the City Council shall 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. Protests regarding the regularity or sufficiency of the proceedings shall be in writing. If written protests are received from area business owners representing 50 percent or more of the proposed assessments, the City Council shall not levy the assessment. If protests in such quantity are directed against a specific portion of the program, the City Council shall eliminate that portion.
The Fiscal Year 2015 Annual Report, transmitting the recommendations of the BSPBIA Advisory Board, proposes the following assessment rates:
BELMONT SHORE PARKING AND BUSINESS IMPROVEMENT AREA ASSESSMENT FORMULA 2014 - 2015
CATEGORIES BASE RATE EMPLOYEE RATE
Financial Institution $1,646.22 $16.50
Service Real Estate Office $638.70 $22.00
Retail - Restaurant w/alcohol & RTE $640.19 $9.63
Retail - Other $548.73 $8.25
Consulting $425.80 $22.00
Construction Contractor $425.80 $22.00
Insurance Agent Professional $425.80 $22.00
Professional $425.80 $22.00
Service - Other $319.35 $16.50
Misc. Rec/Ent, Vending, Manufacturing,
Unique & Wholesale $319.35 $16.50
39% Reduced Rate for Service-related
Independent Contractors $194.80 $16.50
Non-profits -0- -0-
Total estimated annual assessment: $139,000
This matter was reviewed by Deputy City Attorney Amy Webber on August 20, 2014 and Budget Management Officer Victoria Bell on August 28, 2014.
TIMING CONSIDERATIONS
City Council action is requested on September 16, 2014 to allow purchase order and contract modifications to be completed so that Fiscal Year 2015 (FY 15) assessment transfers may be timely made as required by the Agreement of Funding with the BSBA.
FISCAL IMPACT
It is estimated that the BSPBIA will generate $139,000 in FY 15 through continuation of the existing assessment. Assessment funds are collected through additional fees attached to BSPBIA business licenses and passed directly through to the Belmont Shore Business Association for implementation of their annual programs. Sufficient funds are included in the FY 15 Budget in the Parking and Business Area Improvement Fund (SR 132) in the Department of Public Works (PW). There is no fiscal impact to the General Fund. Approval of this recommendation will provide continued support to the local economy.
TIMING CONSIDERATIONS
[Timing Considerations]
FISCAL IMPACT
[Fiscal Impact]
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH CONFIRMING, FOLLOWING HEARING, THE ANNUAL REPORT OF THE BELMONT SHORE PARKING AND BUSINESS IMPROVEMENT AREA ADVISORY COMMISSION, CONTINUING THE LEVY OF ANNUAL ASSESSMENT AS SET FORTH IN SAID REPORT AND SETTING FORTH OTHER RELATED MATTERS
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF ECONOMIC AND PROPERTY DEVELOPMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER