TO:
Honorable Mayor and Members of the City Council
THROUGH:
John Jalili, Interim City Manager
FROM:
Bruce Moe, Finance Director
Steve S. Charelian, Revenue Services Manager
SUBJECT:Title
Renewal of the North Manhattan Beach Business Improvement District and Approval of Assessments for Fiscal Year 2014-2015 (Finance Director Moe).
a) CONDUCT PUBLIC HEARING
b) ADOPT RESOLUTION NO. 14-0006
c) RATIFY 2014 BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD MEMBERS
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Recommended Action
RECOMMENDATION:
Staff Recommends that the City Council:
a) Conduct a Public Hearing;
b) Adopt Resolution No. 14-0006 renewing the district and providing for the collection of assessments for the North Manhattan Beach Business Improvement District (NMB-BID); and
c) Ratify the Business Improvement District Advisory Board Members for 2014.
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FISCAL IMPLICATIONS:
The North Manhattan Beach Business Improvement District is funded through an 80% surcharge on the business license tax to a maximum of $500 per year. Collections for the fiscal year are estimated to be $23,000. North Manhattan Beach Business Improvement District reserves total $520,514 including $152,373 remaining for a capital project for beautification originally budgeted in fiscal year 2006-2007 (total project cost of $370,000). Those funds have been carried forward into fiscal year 2013-2014.
BACKGROUND:
In January 2004, the City Council dissolved the existing North End Business Improvement District formed in 1969 under the State's Parking and Business Improvement District Law of 1965. The BID was fairly limited in scope and was mainly designed to address parking acquisition and construction. Because opportunity for the acquisition of parking in the North End is limited, the businesses being assessed wanted to use the funds for other types of activities, such as physical improvements, signage, marketing, and promotions to name a few. To accommodate this change, the City Council dissolved the previous Business Improvement District and created the new Business Improvement District under the broader 1989 Business Improvement District law.
DISCUSSION:
The North Manhattan Beach Business Improvement District and the associated assessments must be renewed annually. As required by law, the City Council adopted a resolution at its meeting of January 7, 2014, that set tonight's meeting 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 North Manhattan Beach businesses paying into the Business Improvement District, and was published in The Beach Reporter. If adopted by the City Council tonight, Resolution No. 14-0006 (Attachment 1) will become effective immediately and will set the assessment at an 80% surcharge on the business license tax to a maximum of $500 for North Manhattan Beach businesses. This assessment remains unchanged from last year and will be in effect for the next assessment cycle which coincides with the FY 2014-2015 business license period.
A necessary requirement of the Business Improvement District is the establishment of an Advisory Board. The Advisory Boards' duties include recommendations to the City Council on expenditure of revenues derived from the assessments, as well as the method and basis of levying the assessments. The following is a list of nominees for the 2014 Advisory Board and their affiliation with the district. As required by State law, the City Council is required to ratify nominees:
- James McCleary, Sea View Inn (Chairperson)
- Harry Ashikian, Salvatore's Shoe Repair (Vice Chairperson)
- Janice Davenport, Pancho's Restaurant
- Steve Delk, OB's Pub & Grill
- Brett Karas, Baja Sharkeez
- Morgan Pietz, The Pietz Law Firm
- Steve Oliveira, Steve Oliveira, D.D.S
This board was selected by the membership at the December 2013 Business Improvement District Advisory Board meeting through an adopted nomination and balloting process.
Another role of the Business Improvement District Advisory Board is to review and approve the operating plan for the District. The 2014 Projects and Activity Plan (Attachment 2) 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 potential programs for 2014. These programs are subject to City Council approval prior to commencement:
- Develop a BID website survey
- Explore opportunities to create additional North MB BID events
- Decorating strategies to better promote the annual Winter Holiday Walkabout
- Look to expand parking opportunities to accommodate visitors
- Review North MB BID annual assessments
- Work closely with the Chamber of Commerce for marketing opportunities
- Explore lighted crosswalks on Highland Avenue
In past years, the City Council approved several improvements including curb extensions, landscaping, an entry monument and business directories. The Business Improvement District will approach the City Council with future requests as they are identified.
Copies of the Resolution of Intention adopted on January 7, 2014 were mailed to all North MB BID members on January 8, 2014. A Public Notice was placed in the January 16, 2014 Beach Reporter publication.
CONCLUSION:
Staff recommends that the City Council conduct a Public Hearing. If there is not a majority protest of the assessment payers, City Council may then choose to adopt Resolution No. 14-0006, which will maintain the BID for 2014 and the associated assessments scheduled to be collected in FY 2014-2015. Staff also recommends that the City Council ratify the BID board for 2014.
Attachments:
1. Resolution No. 14-0006
2. 2014 Projects and Activity Plan