City of Culver City, California
Agenda Item Report
Meeting Date: 12/14/09 Item Number: PH-1
CITY COUNCIL AGENDA ITEM: PUBLIC HEARING - (1) Adoption of a Resolution
Levying the 2010 Downtown Business Improvement District Assessment and (2)
Appointment of Members to the Business Improvement District Advisory Board.
Contact Person/Dept.: Glenn Heald
Community Development Dept
Phone Number: (310) 253-5752
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [X] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Published in the Culver City News (11/23/09 and 12/03/09); (E-Mail
and Telephone) Downtown Business Association (11/18/09); (E-Mail) Meetings and
Agendas – City Council (12/10/09).
Department Approval:
Sol Blumenfeld (12/03/09)
City Attorney Approval:
Carol Schwab (by H. Baker) (12/10/09)
Chief Financial Officer Approval:
Mark Scott (by N. Kimball) (12/10/09)
City Manager Approval:
Mark Scott (12/10/09)
RECOMMENDATION:
Staff recommends that the City Council (absent a majority protest) adopt a resolution
levying the 2010 Downtown Business Improvement District assessment and (2)
appoint members to the Business Improvement District Advisory Board.
PROCEDURE:
1. Mayor seeks motion to receive and file the affidavits of publication and posting of
notices and correspondence received in response to the public hearing notices;
and,
2. Mayor calls for a staff report and the City Council Members may pose questions
to staff as desired; and,
3. Mayor seeks a motion to open the public hearing; and,
4. Mayor seeks motion to close the public hearing after all public testimony has
been presented; and,
5. City Council discusses the item and arrives at its decision.
BACKGROUND:
City of Culver City, California
Agenda Item Report
On November 16, 2009, the City Council approved the 2010 BID Work Program and
Budget and adopted a Resolution of Intention to conduct a public hearing on
December 14, 2009 to consider continuation of the BID program for 2010.
DISCUSSION:
The following elements of the BID renewal process are governed by State law and
are summarized below: protest of the proposed assessment, appointment of BID
Advisory Board members, and the Business Improvement District Management
Agreement.
Protest of the Proposed Assessment
State Law [Streets and Highways Code Section 36525.(a)] states: “If written protests
received from the owners of businesses in the proposed area which will pay fifty
percent or more of the assessment 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
Council.”
The City Clerk shall receive any and all protests until the close of the public hearing
by the City Council. At such time, the submittal period for protests shall close and
the City Clerk may request a brief recess to allow for tallying of protests and present
the results of such tally to the City Council. In the case a written protest
representing less than fifty percent of the assessment is received, the City Council
may determine to overrule the written protests and proceed with the levy.
Alternately, if written protests are received which represent fifty percent or more of
the assessment, then the City Council may find there is a majority protest and no
further proceedings can be undertaken for a period of one year.
BID Advisory Board Membership
State law requires the City Council to appoint a BID Advisory Board, which is
responsible for compiling the BID work program and budget. The DBA recommends
the following BID Advisory Board Members for 2010:
Ken Kaufman – Business owner
Emily Beretta – Business owner
Debbie Weiss – Business and property owner
Stu Freeman – Property owner
Eric Sims – Business representative
City of Culver City, California
Agenda Item Report
As part of the Management Agreement between the City and the DBA, all members
of the BID Advisory Board must be in good standing with the City, Redevelopment
Agency, and BID in terms of business tax payments, BID assessments, refuse billing
and Redevelopment Agency debt agreements. Upon review by the Finance
Department it appears that none of these individuals show any outstanding debt to
the City, Redevelopment Agency, or BID.
The City Council may appoint the members recommended by the DBA or appoint
new members to the BID Advisory Board.
Management Agreement
BID revenues are managed by the DBA in accordance with the Management
Agreement between the City and the DBA. The current Management Agreement
was approved on December 8, 2008 and is valid through December 31, 2010.
FISCAL ANALYSIS:
During 2010, the BID anticipates assessment revenues of $144,025 and carry-over
funds in the amount of $22,326. Through the Finance Department, the City invoices
and collects the BID assessment on the BID’s behalf. The City charges a 2%
administration fee to recover the cost to process and manage the BID assessment
(e.g. assuming $145,000 is billed, the administration fee is approximately $2,900).
Funds from the 2010 BID assessment will be used for business enhancement,
marketing and promotional activity, and other items in accordance with the Law.
The DBA assessment also funds the entire salary of the BID Executive Director.
ATTACHMENTS:
1. Proposed Resolution
2. 2010 BID Work Program and Budget (Approved by the City Council on
November 16, 2009).
MOTION:
That the City Council:
1A. (If there is a majority protest) Approve a finding that protests have been
received from the owners of businesses in the proposed district who represent fifty
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
1B. (If there is not a majority protest) Adopt a resolution to levy the proposed 2010
BID assessment;
AND
2A.Appoint Ken Kaufman, Emily Beretta, Debbie Weiss, Stu Freeman and Eric Sims
to the DBA BID Advisory Board;
OR
2B. Appoint up to five other persons to the DBA BID Advisory Board as deemed
appropriate.
MEETING DATE: 12114109
AGENDA ITEM: Consideration of Continuation of the Downtown
Business Improvement District for 2010.
ATTACHMENTS
Pages
1. Resolution to levy the Proposed Assessment for 2010. 1-3
2. 2010 BID Work Program and Budget (Approved by City Council on 4
November 16, 2009).Attachment I
RESOLUTION NO. 2009-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, CONFIRMING THE
BUSINESS IMPROVEMENT DISTRICT ADVISORY
BOARD'S ANNUAL REPORT AND THE LEVY OF THE
DOWNTOWN CULVER CITY BUSINESS IMPROVEMENT
DISTRICT ASSESSMENT FOR 2010.
WHEREAS, the Parking and Business Improvement Area Law of 1989
(California Streets and Highway Code §§36500 et seq.) (the "BID Law") authorizes cities to
establish parking and business improvement areas for the purpose of imposing
assessments on businesses for certain purposes;
WHEREAS, on December 11, 2000, the City Council approved and adopted
Ordinance No. 2000-027 that repealed Ordinance No. 98-011 and established revised
regulations by which the Downtown Culver City Business Improvement District (the
"District") was to operate;
WHEREAS, pursuant to the agreement between the City and the Downtown
Business Association the Culver City Business Improvement District Advisory Committee
shall be designated by the City Council as the Advisory Board required by the BID Law;
WHEREAS, on November 16, 2009, the City Council of the City of Culver
City (the "Council") approved the District's Annual Report (work program and budget),
prepared by the Culver City Business Improvement District Advisory Committee (the
"Committee"), and established December 14, 2009 as the date for a public hearing to
continue the District; and
WHEREAS, on December 14, 2009, after conducting a duly noticed public
hearing, the Council confirmed the Committee's Annual Report and, after determining there|101010101010101010 10
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was no majority protest decided to continue the Downtown Culver City Business
Improvement District; and
WHEREAS, Section 9.c. of Ordinance No. 2000-027, requires the adoption of
this resolution in order to levy assessments for the subject calendar year.
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES HEREBY RESOLVE as follows:
The Council hereby determines there was no majority protest.
2. The Council hereby establishes the assessments shall be applied to
businesses located within the boundaries of the District, in classifications and amounts set
forth in Exhibit "A," which is attached hereto and incorporated by reference as though fully
set forth herein.
3. This resolution shall become effective upon signature.
APPROVED and ADOPTED this day of 2009.
ANDREW WEISSMAN, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
-2-
MARTIN COLE, City Clerk
A04-00961EXHIBIT A
Business Type
City Business License Code Annual BID Fee
TYPE A
Retail 1-1000 sq. ft. 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.
$ 351
$ 585
$ 877.50
$1170
$1755
$1170
$1755
$2340
$ 585
$ 585
$1170
TYPE 13
Theaters
858
$2.34/seat
Live Performance
858
$1.17/seat
TYPE C
All others, not listed $351
TYPED
Banking institutions 0-7500 sq. ft 342 $1170
Banking Institutions > 7500 sq. ft $1755
Film Studios 490,498 $1170
Recording-Studios 554 $1170
Utilities $1170
Hospitals > 20,000 sq. ft. 780 $2340
Hospitals and Clinics < 20,000 sq. ft. $1170
TYPE E
Commercial Rentals 432
<5,000 $1170
5,001-15,000 $1755
15,001-25,000 $2340
26,001-35,000 $2925
Over 35,000 $3510
Note:
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 separateiy
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.
3Attachment 2
Downtown Culver City-Business Improvement District
Year 2010 Work Program and Budget
Revenue
2010 BID Assessment Fees $144,025
Carry forward from 2009 assessments $ 22,326
Interest Income $ 120
Memorandum of Understanding (MOU) $112;100
Downtown Valet Revenue (estimated at $1250 c 12mos) $ 15,000
•
Total Revenue
Expenses
Maintenance Management Contract ($2,015 @ 12mos) $ 24,180
-Labor ($1665 per month)
-Fuel ($350 pen-non-1h)
MOU Maintenance Management ($9,341.60 @ 12mos) $112,100
Uniforms $ 500
Beautification Management (twinkles, add'I landscape, eta) $ 3,500
;293,571
Total Maintenance Management $140,280
Advocacy/Administration
Executive Director (full-time salary) $ 72,000
City BID Administration Fee (2%) $ 2,880
Professional Fees $ 2,000
D & 0 Insurance 1,450
Liability Insurance $ 770
Tax Preparation, Dues, Permits $ 900
Bank Service Charges $ 0
Office Rent $ 0
Telephone $ 1,920
Office su,pplies/postage $ 1,000
Computer Services $ 600
Downtown Valet Parking Management
Valet Operations city permit ($300 per each 6rnes)
Valet Stations city pen-nit ($1,290 @ 12mos)
Lot leases ($2,000 12mos)
Total Administration
Communication/Image
-Website/e-newsletter
-Holiday (tree, ads and event)
-Misc.
$ 600-
$ 15,480
$ 24,000
$ 2,000
$ 3,300
$ 2,065
$123,600
Total Communication/Image
$ 7,365
2008 Reserves
$ 22,326
Total Expenses $293,571
tA