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CC - (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 2017; (2) Appointment of Members to the Business Improvement District Advisory Board for Calendar Year 2017; and (3) Approval of the Management Agreement Through 2017/2018.
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Meeting Date: December 12, 2016
Contact Person/Dept: Glenn Heald
Todd Tipton/CDD
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]
Public Notification: (E-Mail and Telephone) Downtown Business Association (08/30/16); (E-Mail) Meetings and Agendas - City Council (12/07/16); Published in Culver City News (11/24/16).
Department Approval: Sol Blumenfeld, Community Development Director (12/02/16)
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RECOMMENDATION:
Staff recommends the City Council (1) adopt the proposed 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 2017 (Attachment No. 1); (2) appoint members to the BID Advisory Board; and (3) approval of the Management Agreement through 2018.
PROCEDURE:
1. The Mayor announces that this is the time and place for the hearing of protests or objections to the continuation of the BID.
2. The City Clerk announces that the Resolution of Intention, which included notice of this public hearing, was published in the Culver City News on November 24, 2016, and was mailed to all affected businesses.
3. The Mayor requests a staff report (if desired).
4. The mayor seeks a motion to open the public hearing.
5. After receiving all public comments, the Mayor requests the City Clerk to report on any protests received and announce whether a majority protest exists.
6. The Mayor seeks a motion to close the public hearing.
7. The mayor seeks a motion to overrule and deny all protests. (Absent a majority protest)
8. The Mayor seeks a motion to adopt the proposed resolution. (Absent a majority protest)
BACKGROUND/DISCUSSION
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 14, 2016, the City Council approved the 2017 BID Annual Work Program and Budget (Attachment No. 5, i) and adopted a Resolution of Intention to conduct a public hearing on December 12, 2016 to consider continuation of the BID program and the levy of assessments on the District for calendar year 2017 (Attachment No. 5, ii). The proposed 2017 BID Annual Work Program includes:
• Marketing and promotional activities;
• Decoration; and,
• Supplemental maintenance of the BID area in accordance with Law.
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 (Attachment No. 5, iii). The DBA’s Quarterly Financial Statements and Accounts Payable Summary are attached (Attachment No. 2). The BID Advisory Board proposes no change to the BID boundaries and no increase in assessment rates for 2017.
Management Agreement
The BID is managed by the BID Advisory Board in accord with the Management Agreement between the City and the DBA, which defines and denotes the responsibilities and duties of the City and the DBA regarding administration of the BID program (Attachment No. 5, iv). The current Management Agreement expires on December 31, 2016. The proposed action will extend the current Management Agreement through December 31, 2018.
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 (Attachment No. 5, v). The DBA recommends the following persons as BID Advisory Board Members for 2017:
1. Eric Sims / Director of Theatre Operations, Kirk Douglas Theatre
2. Kathryn Lundeen / Business Owner
3. Karl Kuhn / Business Owner
4. Darrel Menthe / Business Owner
FISCAL ANALYSIS
There is no significant fiscal impact to the City by approving a one year continuation of the BID. 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.
5. Notes.
MOTION
That the City Council:
1A. (In the event a majority protest is received) Adopt 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
1B. (Absent a majority protest) Adopt the proposed resolution confirming the Business Improvement District Advisory Board’s Annual Report and the levy of the Downtown Culver City Business Improvement District Assessment for Calendar Year 2017;
AND
2. Appoint Eric Sims, Kathryn Lundeen, Karl Kuhn, and Darrel Menthe as members of the Business Improvement District Advisory Board;
AND
3. Approve the Proposed BID Management Agreement.