City of Culver City, California
Agenda Item Report
Meeting Date: 11/12/2012 Item Number: C-3
CITY COUNCIL AGENDA ITEM: (1) Review and Approval of the Downtown Culver
City Business Improvement District Advisory Board’s Annual Work Program and
Budget, and (2) Adoption of a Resolution of Intent to Conduct a Public Hearing on
December 10, 2013 to Consider Levy of the Downtown Business Improvement
District Assessment for 2013.
Contact Person/Dept.:
Glenn Heald
Todd Tipton/Community Development
Phone Number:
(310) 253-5752
(310) 253-5783
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Downtown Business Association (09/20/12); (E-Mail) Agenda and
meetings – City Council (11/08/12).
Department Approval:
Sol Blumenfeld: (11/06/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (11/06/12)
Chief Financial Officer Approval:
Jeff Muir (11/08/12)
City Manager Approval:
John M. Nachbar (11/08/12)
RECOMMENDATION:
Staff recommends the City Council (1) approve the Downtown Culver City
Business Improvement District (BID) Advisory Board’s annual Work Program and
Budget for 2013 (Report), and (2) adopt a Resolution of Intent to conduct a public
hearing on December 10, 2012, to consider continuation of the Downtown Culver
City BID (Attachment No. 1).
BACKGROUND:
A BID provides a mechanism for businesses to levy assessments on themselves
for, among other things, the maintenance and improvement of public areas and
promotion of the business district, reducing their dependence on the City. The BID
Work Program is managed by the Downtown Business Association (DBA) in
accordance with the Management Agreement between the City and the DBA
i
.
The Downtown Culver City BID was formed in September 1998 through the
adoption of Ordinance No. 98-011 (superseded by Ordinance No. 2000-027) in
accordance with the Parking and Business Improvement Area Law of 1989 within
the California Streets and Highways Code (the Act).
Section 36501 of the Act states, in part:
City of Culver City, California
Agenda Item Report
“…It is of particular local benefit to allow cities to fund property related
improvements and activities through the levy of assessments upon the
businesses which benefit from those improvements and activities…
Assessments levied for the purpose of providing improvements and promoting
activities which benefit individual businesses may also benefit the property
within the area directly or indirectly and that those assessments are not taxes
for the general benefit of a city, but are assessments for the improvements and
activities which confer special benefits upon the businesses for which the
improvements and activities are provided…”
Culver City Ordinance No. 2000-027, Section 7, states in pertinent part:
“…The purposes for which the funds raised by the assessment may be used
…may include, but are not limited to, the following improvements and activities:
a. General promotion of business activities within the District;
b. Promotion of public events which benefit businesses within the District and
which are to take place on or in public places within the District;
c. Decoration of any public place within the District; and
d. Acquisition, construction, installation or maintenance of improvements
identified in Section 36510 of the Act…”
In accordance with the legal process for renewing a BID specified in the Streets
and Highways Code, the City Council is required to review and consider the BID
Advisory Board’s Report during a public meeting
ii
. Upon completion of the public
hearing, tentatively scheduled for December 10, 2012, the City Council is
requested to consider a resolution to continue the BID and levy assessments. The
public will be notified of the public hearing in accordance with state law.
DISCUSSION:
During 2012, 139 businesses were subject to the BID assessment. Of these, the
assessment was collected from 135 businesses (97%). The total amount collected
was approximately $162,023. The remaining 4 businesses owe part or all of their
assessment(s). A delinquency notice is sent by the City to all BID accounts from
which payment was not received on or before the payment deadline. Further
collection efforts are then assumed by the DBA pursuant to the Management
Agreement. The DBA is currently pursuing collection of delinquent assessments
for years 2010 through 2012 totaling approximately $35,960.
Proposed 2013 BID Program
The BID Advisory Board recommends a five percent (5%) increase in assessment
rates for 2013. This is the first increase in assessment rates in four years. The
Assessment Schedule is included as Exhibit “B” to the proposed Resolution
iii
. The City of Culver City, California
Agenda Item Report
2013 BID budget estimates 2013 assessment revenues of approximately $178,185
and carry-over reserve funds in the amount of $20,557.
No changes to the boundaries of the BID are proposed for 2013. A map illustrating
BID boundaries is included as Exhibit “A” to the proposed Resolution.
The 2013 BID Report has been filed with the City Clerk, containing a proposed
Work Program and Budget included as Exhibit “C” to the proposed Resolution.
The Work Program includes marketing and promotional activities and decoration
and supplemental maintenance of the BID area in accordance with Law.
FISCAL ANALYSIS:
There is no fiscal impact to the City for the approval of the BID Annual Work
Program and Budget or resolution of intent to conduct a public hearing for the
continuation of the BID for 2013.
ATTACHMENTS:
1. Resolution of Intention, including BID Boundary Map (Exhibit “A”), Proposed
Assessment Schedule (Exhibit “B”), and 2013 BID Work Program and Budget
(Exhibit “C”).
MOTION:
That the City Council:
1. Approve the BID Advisory Board’s 2013 Annual Report as filed with the City
Clerk; and,
2. Adopt a Resolution of Intention setting December 10, 2012, as the date for a
public hearing to consider the continuation of the Downtown Culver City
Business Improvement District for calendar year 2013.
i
The Management Agreement requires the DBA to maintain tax-exempt status with the Internal
Revenue Service, maintain general liability insurance in an amount specified by the City Attorney’s
Office, and submit quarterly reports and budget updates to the Community Development Director
describing progress toward completion of their approved work program.
ii
The Report describes any proposed changes in the BID boundaries, a description of activities to
be undertaken (a work program), an estimate of the cost to provide the activities (a budget), the
assessment rate schedule, the amount of surplus or deficit to be carried over from the previous
year, and the amount of other expected BID revenues. The City Council may modify any
component of the Report and approve it as modified or decline to approve the Report. At the
conclusion of the public meeting, the City Council is requested to adopt a Resolution of Intent to City of Culver City, California
Agenda Item Report
levy the proposed BID assessments and set a date and time to conduct a public hearing during
which the City Council is requested to consider continuation of the BID for the following year.
iii
Notes:
1. Business owners with multiple business licenses/operations at the same address will be
assessed only the single highest applicable rate.
2. Business owners with multiple business locations within the BID area will be assessed
separately at each location.
3. Commercial rentals are assessed per building, not per unit.
4. Multiple independent business owners at the same address will be assessed separately at their
respective rates.
MEETING DATE: 11/12/2012
AGENDA ITEM: (1) Review and Approval of the Downtown Culver City
Business Improvement District Advisory Board's
Annual Work Program and Budget, and (2) Adoption
of a Resolution of Intent to Levy the Downtown
Business Improvement District Assessment for 2013.
ATTACHMENTS
Pages
Resolution of Intention, including BID Boundary Map (Exhibit A),
1-8
Proposed Assessment Schedule (Exhibit B), and 2012 BID Work
Program and Budget (Exhibit C). Attachment
RESOLUTION NO. 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, DECLARING ITS INTENT
TO LEVY THE DOWNTOWN CULVER CITY BUSINESS
IMPROVEMENT DISTRICT ASSESSMENT FOR 2013.
WHEREAS, the Parking and Business Improvement Area Law of 1989
(California Streets and Highway Code, sections 36500 et seq. (the "Act")) authorizes
cities to establish parking and business improvement districts for the purpose of
imposing assessments on businesses for certain purposes;
WHEREAS, the City established by Ordinance No 98-011 and Ordinance
No. 2000-027 the Downtown Culver City Business Improvement District (the "District");
and,
WHEREAS, on November 12, 2012 the City approved the District's
annual report, prepared by the Culver City Business Improvement District Advisory
Board.
NOW, THEREFORE, the City Council of the City of Culver City DOES
HEREBY RESOLVE as follows:
1.
The City Council hereby declares its intent to levy and collect
assessments for the year 2013 within the District.
2. The proposed boundaries of the District are set forth in Exhibit A,
which is attached hereto and incorporated by reference, and are the same as those
contained in Ordinance No. 2000-027 and Ordinance No. 98-011.
The improvements and activities proposed for thie DiStrict shall be
funded by the levy of assessments on businesses within the District boundaries and
may include, but are not limited to, the following:
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a. General promotion of business activities within the District;
b. Promotion of public events which benefit businesses in the
DiStrict and which take place on or in public places within the District;
c. Decoration of any public place within the District; and,
d. Acquisition, Construction, installation or maintenance of
improvements identified in section 36510 of the Act.
4. The City Council intends to levy assessments on businesses
located within the boundaries of the District, in the amounts and on the business
classifications set forth in Exhibit B, which is attached hereto and incorporated by
reference.
5. Except where funds are otherwise available, an assessment to pay
for all specified improvements and activities within the District will be used to fund the
activities and improvements shown on Exhibit C, which is attached hereto and
incorporated by reference.
6. The District's annual report, on file in the City Clerk's Office, should
be referred to for a full and detailed description of the improvements and activities to be
provided for the year 2013, the boundaries of the District and the assessments
proposed to be levied upon the businesses within this District.
7. Businesses commenced during the 2013 year shall not be exempt
from such assessments, but shall be assessed the amounts listed on Exhibit B in a
prorated manner, based upon the number of whole months remaining in the 2013 year.
0
u_ The City Council shall hold a public hearing to consider the levy of
26 the proposed assessment on the 10th day of December 2012, at 7:00 p.m., or as soon
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-2- ATTEST:
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MARTIN COLE
18 City Clerk
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APPROVED AS TO FORM:
4/tkj
CAROL A. SCHWAB,
City Attorney
Attachment
I thereafter as this matter may be heard, in the Culver City City Council Chambers at
2 9770 Culver Boulevard, Culver City, California.
3 9. At the above-referenced public hearing, written and oral protests "
4 may be made.
5 10. The City Clerk shall certify to the passage of this resolution and
6 cause the same to be published once in a daily newspaper of general circulation in
7
8 Culver City, not less than seven days before the above-referenced public hearing.
9
APPROVED and ADOPTED this day of
2012.
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ANDREW VVEISSMAN, MAYOR
City of Culver City, California
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Proposed 2013 Assessment Schedule
Business Type
City Business License Code
Annual BID Fee
TYPE A
Retail 1-1000 sq. it
036-144, 396, 399, 402
Retail 1001-2500 sq. ft_
Retail 2501-5000 sq. ft.
Retail > 5000 sq. ft.
Hotel 456, 480
Bar/Restaurant: Total Seats, both Indoor & Outdoor: 390, 654-690
0-50 seats
51-100 seats
>100 seats
Computer Graphics & Computer Services 152, 200
Martial Arts Studio, Health Studios, Hair Salon 744, 276
0-25,000 sq. ft
> 25,000 sq. ft.
$ 369
$ 615
$ 922
$1229
$1843
$1229
$1843
$2457
$ 615
$ 615
$1229
TYPE B
Theaters
Live Performance
TYPE C
All others, not listed
TYPE D
Banking institutions 0-7500 sq. ft.
Banking Institutions > 7500 sq. ft
Film Studios
Recording Studios
Utilities
Hospitals > 20,000 sq. ft.
Hospitals and Clinics < 20,000 sq. ft.
TYPE E
Commercial Rentals
<5,000
5,001-15,000
15,001-25,000
25,001-35,000
Over 35,000
Notes:
858
858
342
490, 498
554
780
432
$ 3/seat
$ 2/seat
$ 369
$1229
$1843
$1229
$1229
$1229
$ 2457
$1229
$1229
$1843
$2457
$3072
$3686
1. Fee for individual business owners with multiple business licenses/operations at the same address will be based
on the single highest category.
2. Business owners with multiple business locations within the BID area will be assessed separately at each
location.
3. Commercial rentals will be assessed for each building location, not each tenant space.
4. Multiple independent business owners at the same address will be assessed separately at their respective rates.
5 Exhibit C
Proposed 2013 Work Program
MAINTENANCE
The DBA Clean Team will continue to provide additional downtown maintenance services in addition to the work it
performs on behalf of the City per the Memorandum of Understanding (MOU) between the City of Culver City and the
DBA, as well as the additional maintenance services the DBA has implemented. MOU services are funded through a
separate agreement between the City and the DBA. Other Work Program items outside of Maintenance are funded
through the BID fees and are not funded with MOO funds. Downtown Maintenance services, including both MOU
and
DBA provided services, are as follows:
• Sidewalk maintenance program:
o Personnel to sweep litter, debris and refuse from sidewalks, alleys (paseos) and gutters of the District
o Empty sidewalk trash receptacles throughout District daily
•
Sweep and pressure wash District sidewalks, Town Plaza, paseos and alleys on a regular schedule
throughout the year
o Sweep and maintain areas around trash compactors
o
Street furniture to be wiped and cleaned daily (benches, bike racks, parking meters, mailboxes, and
pay phones)
o DBA Clean Team on streets daily, 10 am to 4 pm (Sun-Thurs) and 1 pm to 7 pm (Fri and Sat)
• Landscape Program:
o
Weed abatement in planters, medians, sidewalks and tree wells
o Trash and debris will be removed from planting areas
o Removal and replacement of dead vegetation
o Trimming of bushes and shrubs
o Plants and flowers to be provided in planting areas an d pots on an annual basis
• Graffiti reporting:
o Graffiti is logged and reported immediately to the City Graffiti Removal Team for removal
o Paper signs and handbills will be removed
COMMUNICATIONIIMAGE
• Employ
a Marketing consultant to implement vision of the Marketing Committee for Downtown Culver City
• Employ a publicist to actively seek visibility with media outlets for DBA sponsored events and activities
• Develop marketing partnerships with established and new downtown businesses, pursuing promotional
opportunities
• Continue development of the Downtown Third Wednesdays; increasing participation of downtown businesses,
expanding the scope of the event, raising awareness and increasing attendance
• Reach out to key audience segments through the use of targeted promotions
and special events_
• Maintain, enhance and promote website, by increasing functionality and providing greater services to members
and the general public
• Fully utilize social media networking (i.e. Facebook, Twitter, Foursquare, etc) for the promotion of Downtown
Culver City
• Creation and distribution of a new monthly e-newsletter, linked to the website
? Partner with the City of Culver City and the downtown business community to create a festive holiday atmosphere
for downtown Exhibit C
• Partner with City of Culver City to produce the annual Holiday Tree Lighting Ceremony
• Quarterly maintenance of year-round Culver Blvd. decorative tree lights (twinkle lights)
ADVOCACY & ADMINISTRATION
• Employ a full-time Executive Director in order to ensure the successful management and administration of DBA
programs and to provide efficient and timely communication to the DBA constituency
• Rent a permanent DBA office space in Downtown Culver City
Continue management of the Culver City Downtown Valet Parking Program; working with City of Culver City
Engineering to determine best practices for a successful program
Continue management of downtown maintenance program
• Proactive communication with City Council, staff, and the community on policy and development issues impacting
Downtown Culver City
• Continue to seek and support community fundraising opportunities
• Proactive communication with City On violations of existing codes in relation to aesthetics and safety of facades
and streetscape
• Continuing coordination between City Sanitation Division and businesses to improve the district
dumpsteritrash/recyclingirodent issue. Work to include increasing the quantity of dumpsters and trash
receptacles, adding recycling bins, as well as improving the maintenance of trash compactors and durnpsters
• Partner with City of Culver City and other organizations (Culver City Chamber, Downtown Residents' Association,
etc.) on advocacy issues and initiatives that may impact the quality of life for businesses and all users of
downtown Culver City
• Continue working with the City to develop additional funding to increase the maintenance and landscape efforts in
downtown
• Fundraising effort will be explored to continue programs such as the Holiday Tree Lighting and other programs
deemed important to the success of downtown
• Interacting with the City Finance Department to ensure timely assessment billing and payment
• Day to day communication of programs with DBA constituency Exhibit C
Proposed 2013 Budget
Revenue
2013 BID Assessment Fees
Reserve.Revenue (est surplus revenue previous years)
Previous Delinquent Fees (and penalties) collected in 2012
Remaining uncollected Fees (past three years 2010 -2012)
Interest Income
Downtown Valet Revenue (estimated at $1600 12mos)
Total Revenue
Expenses
Maintenance Management Contract ($1,57957 © 12mos)
Uniforms
Beautification Maintenance (twinkles, adcfl landscape, etc)
Total Maintenance Management
Advocacy/Administration
Executive Director (full-time salary)
City BID Administration Fee (2%)
Professional Fees
D & 0 Insurance
Liability Insurance
Tax Preparation, Dues, Permits
Bank Service Charges
Office Rent
Telephone
Office Supplies/Postage/Computer Services
Downtown Valet Parking Management
Valet Operations city permit ($300 per each 6mos)
Valet Stations city permit ($1,290 @ 12mos)
Lot leases (nom @ umas)
Total Administration
Communication/Image/Downtown Marketing
-Holiday Event ($4,166)
-Marketing Hard Costs ($11,000)
-Website/e-newsletter ($1,000)
-PR/Marketing ($27,000)
Total CommunicationilMage
$178,185
$ 16,470
$ 10,087
$ 35,960
$ 20
$ 18,000
$258,722
$ 18,956
$ 50
$ 11,000
$30,006
$ 72,000
$ 3,563
$ 500
$ 1,575
$ 800
$ 1,195
$ 0
$ 6,000
$ 1,920
$ 1,000
$ 600
$ 15,480
$ 12,000
$116,633
$ 43,166
$ 43,166
Reserve carry forward
Estimated uncollectable 2013 Fees (Est. 7% of budget)
Previous years uncollected Fees (2010-2012)
$ 20,557
$ 12,400
$ 35,960 $ 68,917
Total Expenses $258,722