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Title:
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(1) Adoption of a Resolution Confirming the Business Improvement District Advisory Board’s Annual Report and the Levy of the Downtown Culver City Business Improvement District Assessment for 2014; and (2) Appointment of Members to the Business Improvement District Advisory Board for Calendar Year 2014.
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City of Culver City, California
Agenda Item Report
Meeting Date: 12/09/2013 Item Number: PH-1
CITY COUNCIL AGENDA ITEM: PUBLIC HEARING - (1) Adoption of a Resolution
Confirming the Business Improvement District Advisory Board’s Annual Report
and the Levy of the Downtown Culver City Business Improvement District
Assessment for 2014; and (2) Appointment of Members to the Business
Improvement District Advisory Board for Calendar Year 2014.
Contact Person/Dept.: Glenn Heald
Todd Tipton/Community Development
Phone Number: 310-253-5752
310-253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [X] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail and Telephone) Downtown Business Association (09/05/13);
(E-Mail) Meetings and Agendas – City Council (12/03/13); Published in Culver City News
(11/27/13).
Department Approval:
Sol Blumenfeld (11/27/13)
City Attorney Approval:
Carol Schwab (by H. Baker) (12/02/13)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (12/03/13)
City Manager Approval:
John M. Nachbar (12/03/13)
RECOMMENDATION:
Staff recommends the City Council (1) adopt a resolution confirming the Business
Improvement District Advisory Board’s Annual Report and the levy of assessments
on the Downtown Culver City Business Improvement District (BID) for 2014
(Attachment No. 1); and (2) appoint members to the BID Advisory Board.
PROCEDURE:
Mayor:
Announces that this is the time and place for the hearing of
protests or objections to the continuation of the BID.
City Clerk: Announces that the Resolution of Intention, which included notice
of this public hearing, was published in the Culver City News on
November 28, 2013, and was mailed to all affected businesses.
Mayor and
City Council:
Moves to receive and file all affidavits.
City Clerk:
Announces the number of written protests received and verifies
that all protests have been delivered to the Council.
City of Culver City, California
Agenda Item Report
Mayor: Calls to the podium those individuals who filed a written protest
and wish to make oral protests or presentations.
Staff:
Reports on protests received.
Mayor and
City Council:
Moves to declare the Public Hearing closed.
If business/property owners representing less than 50 percent of
the total assessment to be levied submit protests, move to
overrule and deny all protests and then consider the adoption of a
resolution to levy the 2014 BID assessment;
OR
If business/property owners representing more than 50 percent of
the total assessment to be levied submit protests, move to deny
the BID for a period of one year.
BACKGROUND:
The BID renewal process is governed by the California Streets and Highways Code,
Sections 36500-36551. In accordance with the process prescribed therein, on
November 12, 2013, the City Council approved the 2014 BID Annual Work Program
and Budget
i
and adopted a Resolution of Intention to conduct a public hearing on
December 9, 2013 to consider continuation of the BID program and the levy of
assessments on the District for calendar year 2014.
ii
BID assessments are collected by the City and disbursed to the Downtown Business
Association (DBA), which manages the BID Work Program in accordance with the
Management Agreement between the City and the DBA.
iii
During 2013, the DBA
received approximately $174,621 in BID assessment revenues and held $20,557 in
carryover funds from 2012. These revenues funded the 2013 BID Work Program
with an anticipated carryover of $31,000 for 2014. The DBA’s Quarterly Financial
Statements and Accounts Payable Summary are attached for reference (Attachment
No. 2).
DISCUSSION:
The BID is managed by the BID Advisory Board in accordance with the Management
Agreement between the City and the DBA.
Management Agreement
The Management Agreement defines and denotes the responsibilities and duties of
the City and the DBA regarding administration of the BID program. The current City of Culver City, California
Agenda Item Report
Management Agreement was approved by the City Council on December 10, 2012
and remains effective through December 31, 2014.
iv
BID Advisory Board Membership
State law requires the City Council to appoint a BID Advisory Board, which submits
the Annual Report. The City Council may appoint the persons recommended by the
DBA or choose other individuals for appointment to the Board.
v
The DBA recommends the following as BID Advisory Board Members for 2014:
1. Eric Sims – Business Representative
2. John Byers – Property Owner
3. Kathryn Lundeen – Business Owner
4. Karl Kuhn – Business Owner
FISCAL ANALYSIS:
There is no significant fiscal impact to the City by approving a one year continuation
of the BID program. Expenses to the City due to the collection and distribution of
BID assessments and staff time spent preparing and presenting the two required
staff reports are offset by the City’s two percent (2%) administrative fee included in
the Management Agreement between the City and the DBA.
ATTACHMENTS:
1. Proposed Resolution.
2. DBA Quarterly Financial Statements and Accounts Payable Summary.
3. Internal Revenue Service Tax-Exempt Certification.
4. DBA Certificate of General Liability Insurance.
MOTION:
That the City Council:
1. (If there is a majority protest) Approve a motion recognizing that protests have
been received from the owners of businesses in the proposed district which
represent 50 percent or more of the assessment proposed to be levied, and no
further proceedings to continue the Downtown Culver City Business
Improvement District shall be taken for a period of one year from the date of this
meeting.
OR
City of Culver City, California
Agenda Item Report
2. (If there is not a majority protest) Adopt a resolution confirming the Business
Improvement District Advisory Board’s Annual Report and the levy of the
Downtown Culver City Business Improvement District Assessment for 2014; and,
3. Appoint members to the Business Improvement District Advisory Board.
i
The 2014 Annual Work Program and Budget is included in the BID Annual Report, filed with the City
Clerk in accordance with California Streets and Highways Code, Section 36533. The Report identifies
proposed expenditures of BID assessment revenue, proposed improvements and activities, the
classification of businesses, the method and basis of levying assessments, and any additional
matters the Advisory Board deems appropriate.
ii
The California Streets and Highways Code, Sections 36500-36551 govern the formation,
implementation and continuation of parking and business improvement areas. Protest of the
proposed assessment is addressed in Section 36525(a), which states:
“If written protests received from the owners of businesses in the proposed area which will pay fifty
percent or more of the assessments proposed to be levied and protests are not withdrawn so as to
reduce the protests to less than that fifty percent, no further proceedings to create the specified
parking and business improvement area or to levy the proposed assessment, as contained in the
Resolution of Intention, shall be taken for a period of one year from the date of the finding of a
majority protest by the city council.”
iii
Initial BID assessments and first delinquent notices are sent by the City. Pursuant to the
Management Agreement, delinquent BID accounts are assigned to the DBA for collection.
iv
The Management Agreement requires the DBA to maintain tax-exempt status with the Internal
Revenue Service (Attachment No. 3) and to maintain valid General Liability Insurance (Attachment
No. 4).
v
The Management Agreement requires that all members of the BID Advisory Board be in good
standing with the City and BID in terms of business tax payments, BID assessments, refuse billing
and City debt agreements. The Finance Department has no record of debt to the City or BID by any
of the individuals recommended for appointment.