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 for the period of October 1, 2018 through September 30, 2019; and, authorize City Manager, or designee, to extend the agreement with the Bixby Knolls Business Improvement Association for a one-year term. (Districts 7,8)
DISCUSSION
The Bixby Knolls Business Improvement Association (BKBIA) promotes and markets the commercial area along Atlantic Avenue and Long Beach Boulevard using funds generated through the assessment of businesses located in the Bixby Knolls Parking and Business Improvement Area (BKPBIA). 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.
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 no change in the district boundaries, the basis and method of levying the assessment, and no significant change in proposed activities.
At its October 9, 2018 meeting, the City Council approved Resolution No. RES-18-0153 granting approval of the Annual Report, declaring the intention of the City Council to levy the assessment, and setting October 23, 2018 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 greater than 50 percent 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 2019 (FY 19) Annual Report, transmitting the recommendations of the BKPBIA Advisory Board, proposes the following assessment rates:
ASSESSMENT FORMULA
The annual base assessment for the period of July 1, 2018 to July 30, 2019, for businesses is $257.02 and $154.21 for non-profits. Each year a CPI adjustment will be applied to the base rate and as of July 1, 2017, an additional $20 assessment will be applied annually to the rates through 2023. The BKPBIA assessment will be implemented on a July 1 to June 30 fiscal year, rate adjustments will take effect each July.
|
|
BUSINESS BASE RATE |
NON-PROFIT BASE RATE |
|
July 1, 2016 - June 30, 2017 |
$252.27 |
$151.36 |
|
July 1, 2017 - June 30, 2018 |
$252.27+ $4.75 CPI + $20 = $277.02 |
$151.36 + $2.85 CPI + $20 = $174.21 |
|
July 1, 2018 - June 30, 2019 |
$257.02 + $7.18 CPI + $20 = $284.20 |
$154.21 + $4.31 CPI + $20 = $178.52 |
This matter was reviewed by Deputy City Attorney Amy R. Webber on October 1, 2018 and by Budget Analysis Officer Julissa Josè-Murray on October 3, 2018.
TIMING CONSIDERATIONS
City Council action is requested on October 23, 2018, to allow purchase order and contract modifications to be completed so that FY19 assessment transfers may be made as required by the agreement of funding with the BKBIA.
FISCAL IMPACT
It is estimated that the BKPBIA will generate $190,000 in FY 19 through the proposed continuation of the assessment. Assessment funds are collected through additional fees attached to BKPBIA business licenses. All revenues are passed directly through to the BKBIA for implementation of annual programs. 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:
PATRICK H. WEST
CITY MANAGER