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CC- CONSENT ITEM: (1) Approval of the Culver City Arts District Business Improvement District Advisory Board's Annual Work Program and Budget; (2) Conduct a Public Meeting to Allow Public Testimony Regarding the Proposed Increased Assessment; and (3) Adoption of a Resolution Declaring the Intent to Levy the Culver City Arts District Business Improvement District Assessment for 2025 and Setting a Public Hearing for November 11, 2024.
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Meeting Date: October 14, 2024
Contact Person/Dept: Elizabeth Garcia/ Economic and Cultural Development Department
Phone Number: 310-253-5708
Fiscal Impact: Yes [x] No [] General Fund: Yes [] No [x]
Attachments: [x]
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/10/2024); Communication to all BID Member Businesses (9/19/2024).
Department Approval: Jesse Mays, Assistant City Manager (09/30/2024)
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RECOMMENDATION
Staff recommends the City Council (1) approve of the Culver City Arts District Business Improvement District’s (“CCADBID”) annual work program and budget for 2025 (Attachment 1); (2) conduct a public meeting to allow public testimony regarding the proposed increased assessment; and (3) adopt a Resolution declaring the intent to levy the CCAD Assessment for 2025 and setting a public hearing for November 11, 2024.
BACKGROUND
A Business Improvement District (“BID”) provides a mechanism for businesses to levy assessments on themselves for the maintenance and improvement of public areas, promotion of business activities and the reduction of their dependence on the City for certain services. The CCADBID Work Program is managed by the Culver City Arts District (CCAD), in accordance with the Management Agreement between the City and the CCAD.
The CCADBID was formed in February 2016 through the adoption of Ordinance No. 2016-003 in accordance with the Parking and Business Improvement Area Law of 1989 within the California Streets and Highways Code. Pursuant to the Streets and Highways Code, the City Council is required to consider the adoption of the Report, as proposed by the advisory board or as modified by the City Council, during today’s public meeting.
DISCUSSION
Each year, the City Council is required to review and consider the CCADBID’s annual Work Plan during a public meeting and to allow public testimony regarding any proposed assessment increases. The proposed 2025 CCADBID Work Program proposes expanding activities related to:
• Marketing and promotional activities;
• Beautification;
• Administration; and
• Supplemental maintenance of the Culver City Arts District.
The CCADBID is also proposing an increase of 25% to the current assessment rates. The CCADBID has not increased dues since its formation in 2016. The proposed increase is expected to cover the increasing cost of operations, maintenance, beautification (decorative lighting), and marketing as well as create long-term financial sustainability via a healthy reserve fund for unforeseen expenses moving forward.
There are no proposed changes to the BID boundaries. A map of the CCADBID boundaries and address ranges is included as Exhibit A of the proposed resolution.
After reviewing the Work Plan and allowing public testimony, the City Council may:
• Adopt the Work Plan as submitted by the CCADBID and set the required public hearing date (Motion 1); or
• Modify any aspect of the Work Plan and adopt as modified and set the required public hearing date; or
• Reject the Work Plan, thereby declining to adopt the recommended assessment.
If the City Council adopts the Work Plan (as submitted or as modified by the City Council), the City Council must adopt a resolution declaring its intent to levy the 2025 CCADBID assessment and set the date for the required public hearing via a Resolution of Intent (Attachment 2). Staff is recommending the required public hearing to be set for November 11, 2024.
FISCAL ANALYSIS
The 2025 CCADBID budget estimates assessment revenues of approximately $132,598, with a carryover balance of $38,762. The budget includes appropriations for maintenance, administration, marketing in the amount of $122,249. There is no fiscal impact to the City relative to the approval of the CCADBID Report or the adoption of the Resolution of Intent to levy the CCADBID assessment for 2025.
ATTACHMENTS
1. Proposed CCADBID Annual Report for the 2025 (Work Program and Budget)
2. Proposed Resolution of Intention, including the CCADBID Map and Address Ranges (Exhibit A)
MOTION
That the City Council:
1. Approve the Culver City Arts District Business Improvement District 2025 Annual Report as filed with the City Clerk or as amended by the City Council; and
2. Adopt a Resolution of Intent to Levy the Culver City Arts District Business Improvement District Assessment for 2025 and setting November 11, 2024, as the date for the required public hearing.