TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Steve Charelian, Revenue Services Manager
SUBJECT:Title
Conduct Public Hearing Regarding Renewal of Downtown Business Improvement District for Fiscal Year 2015-2016 Including Authorization to Collect Assessments; Ratification of the District Advisory Board; Authorization to Enter Into an Agreement with the Downtown Manhattan Beach Business and Professional Association; and Authorization to Disburse Fiscal Year 2014-2015 Assessments Collected (Finance Director Moe).
CONDUCT PUBLIC HEARING; ADOPT RESOLUTION NO. 15-0035; RATIFY BOARD; APPROVE
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Recommended Action
RECOMMENDATION:
The Downtown Business Improvement District Advisory Board and City staff recommend that the City Council: a) conduct a public hearing; b) adopt Resolution No. 15-0035 authorizing the collection of assessments; c) ratify the nominees for the Fiscal Year 2015-2016 Downtown Business Improvement District (BID) Advisory Board; d) authorize the City Manager and Business Improvement District Advisory Board Chairperson to enter into an agreement with the Downtown Manhattan Beach Business & Professional Association to provide services to the Business Improvement District; and e) authorize the disbursement of all assessments collected for FY 2014-2015 (approximately $105,577.61).
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FISCAL IMPLICATIONS:
The Downtown Business Improvement District is funded through an 80% surcharge on the business license tax to a maximum of $600. Since the business license and Business Improvement District surcharge is not collected until April/May of any given year, the Business Improvement District is funded by assessments generated during the previous fiscal year. The Business Improvement District assessments from FY 2014-2015 to be disbursed currently total $105,577.61.
The total FY 2015-2016 operating budget for the Downtown Business Improvement District projects revenues of $299,044.21 and expenses of $319,924.00. Funds to implement the operating budget will be generated primarily from the Business Improvement District assessments, the Farmer’s Market, and Downtown Business and Professional Association activities.
BACKGROUND:
In 1996, during the downtown strategic planning process, the creation of a new business improvement district area was identified as a desired project. At that time, there was an existing Business Improvement District in place. However, this Business Improvement District was very restrictive with respect to the use of funds. The funds generated through the former Business Improvement District could only be used for “the acquisition and construction of additional parking facilities” per Ordinance No. 1173.
There was a desire on the part of the downtown business owners to create a more flexible Business Improvement District so that the funds could be used for additional purposes as defined by the business owners. Therefore, the downtown businesses requested the City assist with the creation of a new Business Improvement District. In October 1998, the City Council adopted Ordinance 1989 which created a new, more flexible Business Improvement District with respect to the use of funds.
DISCUSSION:
The Downtown Business Improvement District and the associated assessments used to fund the activities of the Business Improvement District must be renewed annually. As required by law, the City Council adopted a resolution at its meeting of June 16, 2015, that set July 7, 2015, as the public hearing date to hear testimony in support of, and against, the proposed assessments. This public hearing has been properly noticed in accordance with State law. The resolution of intention was circulated to all downtown businesses and was published in The Beach Reporter (June 25, 2015 edition). If adopted by the City Council tonight, the resolution will become effective immediately and will set the assessment of an 80% surcharge on the business license tax, to a maximum of $600, for downtown businesses.
A necessary requirement of the Business Improvement District is the establishment of an Advisory Board. Attachment 2 is a list of nominees for the FY 2015-2016 advisory board. State law requires that the City Council ratify the nominees.
A primary role of the Business Improvement District Advisory Board is to review and approve the operating plan for the District. The plan (Attachment 4) contains all information relative to projected revenues and expenses, and outlines the services and programs to be funded by the Business Improvement District. This year, the operating plan identifies the following programs for FY 2015-2016:
1. Parking, Transportation & Community Programs
2. Marketing & Advertising
3. Promotions & Special Events
4. Professional Management & Communications
The District contracts with the Downtown Manhattan Beach Business & Professional Association (DMBBPA) to provide these services and implement the various programs identified in the operating plan. This relationship has been successful with such programs as the Farmers Market, downtown valet parking program, advertising campaigns (newspapers, banners and television ads), sidewalk sales, and support for the Ocean Express shuttle service which brings visitors from the airport hotel corridor to Manhattan Beach. The Downtown Manhattan Beach Business & Professional Association has retained the services of an Executive Director, Ms. Kelly Stroman, to provide management support.
It is recommended that the City Council authorize the City Manager and the Chairperson of the Advisory Board (Mike Zislis) to enter into an agreement (Attachment 3) with the Downtown Manhattan Beach Business & Professional Association to provide the services to the District for FY 2015-2016.
CONCLUSION:
If the City Council performs the following actions tonight, the Business Improvement District and associated assessments will remain in place for FY 2015-2016:
1. Adopt Resolution 15-0035;
2. Ratify the nominees for the FY2015-2016 Business Improvement District Advisory Board;
3. Authorize the City Manager and Chairperson of the Business Improvement District Advisory Board (Mike Zislis) to enter into an agreement with the Downtown Manhattan Beach Business & Professional Association to provide the services and implement the programs identified in the Downtown Manhattan Beach Business Improvement District Plan;
4. Authorize the disbursement of funds collected for the Business Improvement District for FY 2014-2015 (approximately $105,577.61).
Attachments:
1. Resolution No. 15-0035
2. List of FY 2015-2016 Business Improvement District Advisory Board Member Nominees
3. Agreement Between Business Improvement District and Downtown Manhattan Beach Business & Professional Association
4. Downtown Manhattan Beach Business Improvement District Business Improvement and Activity Plan - May 2015
5. Boundary Map of the Downtown Business Improvement District