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CC - 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 2016; and (2) Appointment of Members to the Business Improvement District Advisory Board for Calendar Year 2016.
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Contact Person/Dept: Glenn Heald/CDD
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: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail and Telephone) Downtown Business Association (09/03/15); (E-Mail) Meetings and Agendas - City Council (12/10/15); Published in Culver City News (12/03/15).
Department Approval: Sol Blumenfeld, Director of Community Development
(12/03/15)
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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 2016 (Attachment No. 1); and (2) appoint members to the BID Advisory Board.
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 December 3, 2015 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 if a majority protest exists.
6. The Mayor seeks a motion to close the public hearing.
7. (Absent a majority protest) The Mayor seeks a motion to overrule and deny all protests.
8. (Absent a majority protest) The Mayor seeks a motion to adopt the proposed resolution.
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 9, 2015, the City Council approved the 2016 BID Annual Work Program and Budget (Attachment No. 5, i) and adopted Resolution 2015-R090, a Resolution of Intention to conduct a public hearing on December 14, 2015 to consider continuation of the BID program and the levy of assessments on the District for calendar year 2016 (Attachment No. 5, ii). The proposed 2016 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). During 2015, the DBA received approximately $177,178 in BID assessment revenues and held $31,000 in carryover funds from 2014. These revenues funded the 2015 BID Work Program with an anticipated carryover of $38,500 for 2016. The DBA’s Quarterly Financial Statements and Accounts Payable Summary are attached (Attachment No. 2). The BID Advisory Board proposes no increase in assessment rates for 2016.
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 (Attachment No. 5, iv). The current Management Agreement expires on December 31, 2016.
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 2016:
1. Eric Sims
2. Darrel Menthe
3. Karl Kuhn
4. Kathryn Lundeen
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.
RECOMMENDED MOTION(S):
That the City Council:
1A. (In the event a majority protest is present) 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 2016;
AND
2. Appoint Eric Sims, Darrel Menthe, Karl Kuhn, and Kathryn Lundeen as members of the Business Improvement District Advisory Board.