CITY OF
LONG
November 1, 2022
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Economic Development Department
411 West Ocean Boulevard, 10th Floor Long Beach, CA 90802 (562) 570-6099
C-10
Adopt a Resolution approving the Annual Report for October 1, 2022, to September 30, 2023, for the Zaferia Parking and Business Improvement Area, declaring its intention to levy the annual business assessment, and setting the date of hearing for November 15, 2022. (Districts 2, 3, 4)
DISCUSSION
The Zaferia Parking and Business Improvement Area (ZPBIA), formerly known as the East Anaheim Street Parking and Business Improvement Area, was established by the City Council in 2010, allowing for the levy of an annual business license assessment to be paid by businesses located in the ZPBIA. The City of Long Beach (City) contracts with the Zaferia Business Association (ZBA) to manage the ZPBIA and the ZBA Board of Directors serves as the Advisory Board to the City Council on matters related to the ZPBIA. The ZBA promotes and markets the commercial area along East Anaheim Street using funds generated through the ZPBIA business license assessment.
State law governing Parking and Business Improvement Areas requires that an annual report be submitted to the City Council by the Advisory Board designated for this Assessment District.
On August 4, 2022, the ZBA Board of Directors voted to recommend to the City Council approval of the 2022-2023 ZPBIA Annual Report (Annual Report) (Exhibit A to the Resolution).
The Annual Report describes boundaries, proposed activities, and budgetary information, as well as the method and basis for continuation of the assessment. The Annual Report proposes no change to the ZPBIA boundaries or the method of levying the assessment and no significant change to proposed activities.
The Annual Report, transmitting the recommendations of the ZBA, proposes the following assessment rates.
Method of Assessment
The estimated Fiscal Year 2023 revenue from business assessments is $127,800.
Assessments are calculated by category of business and incorporate a base rate plus a per employee rate. Businesses categories and rates are as follows:
HONORABLE MAYOR AND CITY COUNCIL
November 1, 2022
Page2
• Type 1 Businesses: Retail, recreation, and entertainment, unique businesses, and banking institutions, must pay annual assessment fees of:
o Base fee: $300 per year except that secondary licensees in these classes are exempt;
o Employee Fee: $15 per employee up to $300 maximum.
• Type 2 Businesses: Service, vending, professional, wholesale, contractor, manufacturing and miscellaneous mobile, must pay annual assessment fees of:
o Base Fee: $200 per year except that secondary licensees in these classes must pay a base fee of $120;
o Employee Fee: $15 per employee up to $300 maximum.
• Type 3 Businesses: Non-residential space rental businesses must pay an annual assessment fee of:
o Base Fee: $120 per year;
o Employee Fee: not applicable.
• Type 4 Businesses: Nonprofit businesses must pay an annual assessment fee of:
o Base Fee: $100 per year;
o Employee Fee: not applicable.
• Type 5 Businesses: Home-based businesses that voluntarily choose to be a member of the organization must pay an annual assessment fee of:
o Base Fee: $100 per year;
o Employee Fee: not applicable.
Residential property rentals are exempt from the assessment.
Each year, the City calculates the Consumer Price Index (CPI), an adjustment for consumer goods and services, and applies the CPI to various City fees on July 1st of each year. Parking and Business Improvement Area Advisory Boards may request a CPI adjustment for business license assessments. The ZBA is not requesting a July 2023 CPI adjustment.
The recommended Resolution grants approval of the Annual Report, declares the intention of the City Council to levy the assessment for proposed activities, and sets the date of the public hearing for November 15, 2022.
This matter was reviewed by Deputy City Attorney Marsha Yasuda on October 14, 2022 and by Budget Management Officer Rhutu Amin Gharib on October 7, 2022.
TIMING CONSIDERATIONS
City Council action is requested on November 1, 2022, to set the date of the public hearing for November 15, 2022. The new contract year began on October 1, 2022.
HONORABLE MAYOR AND CITY COUNCIL
November 1, 2022
FISCAL IMPACT
It is estimated that the ZPBIA will generate $127,800 in Fiscal Year 2023 through the proposed continuation of the assessment. Assessment funds are collected by the City on behalf of the ZBA through additional fees attached to ZPBIA business licenses and passed directly through to the ZBA for implementation of annual programs. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
J HNNY VALLEJO
ACTING DIRECTOR
ECONOMIC DEVELOPMENT
ATTACHMENT- RESOLUTION
APPROVED:
THOMAS B. MODICA
CITY MANAGER
1 MY:kjm A22-03195
01448035.DOC
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH APPROVING AN ANNUAL REPORT
FOR OCTOBER 1, 20 22 TO SEPTEMBER 30, 20 23 FOR
THE ZAFERIA PARKING AND BUSINESS IMPROVEMENT
AREA; AND DECLARING ITS INTENTION TO LEVY THE
ANNUAL ASSESSMENT FOR THAT FISCAL YEAR
WHEREAS, pursuant to Section 36533 of the California Streets and Highways Code, the Zaferia Business Association has caused a Report to be prepared for October 1, 2022 to September 30, 2023, relating to the Zaferia Parking and Business Improvement Area (“ZPBIA”); and
WHEREAS, said Report contains, among other things, with respect to October 1, 2022 to September 30, 2023, all matters required to be included by the above cited Section 36533; and
WHEREAS, having approved such Report, th e City Council hereby declares its intention to:
A. Confirm levy of and direct collecting assessments for the ZPBIA for October 1, 2022 to September 30, 2023. Said assessments are proposed to be levied on such classifications and at such rat es as are set forth in Exhibit “ A” attached hereto and incorporated herein. These assessments are not proposed to be levied on residential property owners;
B. Provide that each business shall pay the assessment annually, at the same time the business license is due. T his is the same collection procedure which occurred in the previous fiscal year; and
WHEREAS, to this end, the proposed activities and improvements undertaken by the Area include those generally specified in the establishing Ordinance
2 MY:kjm A22-03195
01448035.DOC
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
ORD-10-0012, as adopted by the City Council on May 4, 2010; and WHEREAS, a copy of the Report is on file with the City Clerk and includes a full description of the activities and improvements to be provided from October 1, 2022 to September 30, 2023, the boundaries of the area, and the proposed assessments to be levied on the businesses that fiscal year and all other information required by law; and WHEREAS, it is the desire of this City Council to fix a time and place for a public hearing to be held regarding the Report, the l evy and the proposed program for October 1, 2022 to September 30, 2023;
NOW THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. That certain Report entitled “2022-2023 Annual Report Zaferia Parking and Business Improvement Area” for the period October 1, 2022 to September 30, 2023, as filed with the City Clerk is hereby approved.
Section 2. On November 15, 2022, at 5:00 p.m., in the Civic Chamber, 411 West Ocean Boulevard, Long Beach, California 90802, the City Council of the City of Long Beach will conduct a public hearing on the levy of proposed assessments for October 1, 2022 to September 30, 2023 for the ZPBIA. All concerned persons are invited to attend and be heard, and oral or written protests may be made, in accordance with the following procedures:
A. At the public hearing, the City Council shall hear and consider all protests. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made.
B. Every written protest shall be filed with the City Clerk at or before the time fixed for the public hearing. The City Council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing.
3 MY:kjm A22-03195
01448035.DOC
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
C. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accom panied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest.
Section 3. The City Clerk shall give notice of the public hearing c alled for in Section 2 by causing this Resolution of Intention to be published once in a newspaper of general circulation in the City not less than seven days before the public hearing.
Section 4. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of _______________________, 2022, by the following vote:
Ayes: Councilmembers: __
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk
4 MY:kjm A22-03195
01448035.DOC
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
EXHIBIT “A”
2022-2023 Annual Report
Zaferia Parking and Business
Improvement Area
SUBMITTED BY ZAFERIA BUSINESS ASSOCIATION
AUGUST 1, 2022
1 | P a g e
Table of Contents
DISTRICT OVERVIEW ................................ ................................ ................................ ...............2 District Background ................................ ................................ ................................ .................2 Zaferia Parking and Business Improvement Area Boundary ................................ ....................2 Proposed Changes ................................ ................................ ................................ ..................2 District Advisory Board ................................ ................................ ................................ ............2 District Personnel ................................ ................................ ................................ ....................3 METHOD OF ASSESSMENT ................................ ................................ ................................ .....3 Proposed Changes ................................ ................................ ................................ ..................4 Consumer Price Index Adjustment ................................ ................................ ..........................4 BUDGET ................................ ................................ ................................ ................................ .....4 Projected Budget ................................ ................................ ................................ .....................4 Surplus or Deficit Carryover ................................ ................................ ................................ .....5 Contributions from Other Sources ................................ ................................ ...........................5 ZAFERIA BUSINESS ASSOCIATION PROGRAM................................ ................................ ......6 2022 – 2023 Program ................................ ................................ ................................ ..............6 Cleanliness ................................ ................................ ................................ ..........................6 Support of Area Events ................................ ................................ ................................ ........6 Member & Area Marketing & Promotion ................................ ................................ ...............6 Member Representation & Communication ................................ ................................ ..........6 Member Support ................................ ................................ ................................ ..................7
2 | P a g e
DISTRICT OVERVIEW
District Background
Conceived by a coalition of business owners located along Anaheim Street, the Zaferia Parking and Business Improvement Area (formerly known as the East Anaheim Street Parking and Business Improvement Area) (the "District") is a benefit assessment district whose goal is to provide a more attractive and vibrant business environment in the Zaferia business area, including a sidewalk cleanliness program, marketing and promotions of our members and the general Zaferia area, and support of local programs.
The organization overseeing the management of the District is the Zaferia Business Association (ZBA), an IRS 501 C-6, tax-exempt organization.
The mission of the Zaferia Business Association is to promote, enhance, and represent the business members of the Zaferia district.
Zaferia Parking and Business Improvement Area Boundary
The District is bounded by Junipero Avenue to the west, Pacific Coast Highway to the east, 11th Street to the south, and 14th Street to the north. Historically, this area is known as Zaferia.
Proposed Changes
The ZBA Board of Directors proposes no changes to the district boundary for 2022-2023.
District Advisory Board
OFFICERS
TERMS
President
Madison Mooney
Executive Director – Long Beach Playhouse Theatres
2021 - 2023
Vice President
Zain Ramjan
Owner – Sani-Tec Janitorial Supplies and Coastline Car
Wash
2021 - 2023
Secretary
Dean Lockwood
Director of Development & Community Outreach - Su Casa
– Ending Domestic Violence
2022 - 2024
Treasurer
Lisa Lowe
President and Creative Director – Ore’ Originals 2022 - 2024
DIRECTORS
3 | P a g e
Dylan Davis Owner – Port City Tavern
2022 - 2024
Neil Hirsch
Owner – On The Mark Digital Advertising 2021 - 2023
Jennifer Little Owner – The Park Hotel 2022 - 2024
District Personnel
Executive Director
Kristine Hammond
Part-time, Independent Contractor
[email protected]
(562) 305-7102
Member Outreach Coordinator
Tracy Ames
Part-time, Independent Contractor
[email protected]
(562) 668-6762
METHOD OF ASSESSMENT
Assessments are calculated as follows :
• Type 1 Businesses: Retail, recreation and entertainment, unique businesses, and banking institutions, shall pay annual assessment fees of:
o Base fee: $300 per year except that secondary licensees in these classes are exempt;
o Employee Fee: $15 per employee up to $300 maximum.
• Type 2 Businesses: Service, vending, professional, wholesale, contractor, manufacturing and miscellaneous mobile, shall pay annual assessment fees of:
o Base Fee: $200 per year except that secondary licensees in these classes shall pay a base fee of $120;
o Employee Fee: $15 per employee up to $300 maximum.
• Type 3 Businesses: Non-residential space rental businesses shall pay an annual assessment fee of:
o Base Fee: $120 per year;
o Employee Fee: not applicable.
• Type 4 Businesses: Non-profit businesses shall pay an annual assessment fee of:
o Base Fee: $100 per year;
o Employee Fee: not applicable.
• Type 5 Businesses: Home-based businesses that voluntarily choose to be a member of the organization shall pay an annual assessment fee of:
o Base Fee: $100 per year;
o Employee Fee: not applicable.
4 | P a g e
Residential property rental is exempt from the assessment.
Proposed Changes
The Z BA Board of Director s proposes no change s to the method and basi s of levying the assessment.
Consumer Price Index Adjustment
The ZBA Board of Directors is not requesting a Consumer Price Index adjustment at this time.
BUDGET
Projected Budget
The ZBA Board of Directors is conservatively anticipating a 10% decrease in assessment revenue from the last pre-COVID term of FY 2019–2020 due to the continuing negative economic effects of the 2020 Stay-at-Home Order relating to COVID-19. The following expenses are anticipated:
ZBA
Budget Overview: ZBA FY 2022-2023
October 2022 - September 2023
Income
Member Assessments 127,800.00
Total Income $ 127,800.00
Gross Profit $ 127,800.00
Expenses
Administrative Expense
Accounting 3,060.00
Annual Mailing 2,055.00
Cell Phone 780.00
Dues & Memberships 4.00
Franchise Tax Board 10.00
Hardware Purchases 1,500.00
Insurance 2,100.00
Management Fee 38,919.00
Member Appreciation 250.00
Member Outreach Coordinator 12,000.00
Office Supplies 430.00
Postage 60.00
Professional Services 500.00
Rent 1,336.00
Software Fees 1,700.00
5 | P a g e
Total Administrative Expense $ 64,704.00
Program Expense
Events 8,596.00
Food & Drinks
BOD Meetings 500.00
Member Meetings 1,000.00
Member Socials 1,500.00
Total Food & Drinks $ 3,000.00
Marketing
Advertising Merchandise 0
Social Media Marketing 0
Total Marketing $ 0
Member Support 300.00
Pole Banners & Maintenance 8,300.00
Sponsorship 1,000.00
Streetscape and Cleanliness 40,259.00
Water 876.00
Total Streetscape and Cleanliness $ 41,135.00
Website 765.00
Total Program Expense $ 63,096.00
Total Expenses $ 127,800.00
Net Operating Income $ 0
Net Income $ 0
Surplus or Deficit Carryover
The ZBA is on track with our budget this current 2021-2022 fiscal year. The 2021 fiscal year ended with a $15,919 surplus. This surplus was due to the limitation of most in-person events that continued in FY 2021 -2022 due to COVID -19 restrictions that were originally factored into the 2020-2021 budget. Currently, t he ZBA is seeing a slight decrease in member assessment revenue to date compared to the previous year. The ZBA will utilize the surplus carryover of 2021 to offset any decrease in revenue in the coming fiscal year.
Contributions from Other Sources
The ZBA is scheduled to receive American Recovery Act Grant funding in accordance with our Scope of Work submitted and approved in April/May of 2022. The 2022-2023 Marketing expenses are incorporated into the work covered by these grant funds. 6 | P a g e
ZAFERIA BUSINESS ASSOCIATION PROGRAM
2022 – 2023 Program
Cleanliness
The ZBA will continue to manage our cleanliness program. Weeds, trash, gum, and stickers continue to be an ongoing issue in the district. Compounded with an increase in the homeless population in our area, the ZBA is making attempts to keep ahead of this issue by working closely with our cleaning contractor, our members, and the City. The ZB A’s Member Outreach Coordinator assists with reporting and follow-up in this area.
Support of Area Events
The ZBA Board of Directors intends to financially support area events for the 20 22-2023 fiscal year, as reflected in the proposed budget . In prior yea rs, the ZBA supported with funding and promotion the Happy Sundays multi-venue, free and open to the public music event on the last Sunday of August, and in 2022 we supported three Happy Sundays lead -up events. The ZBA intends to continue supporting this program in 2023.
The ZBA has also previously supported with funding and promotion of the Open Art Studio Tour in October, and will continue to do so in 2023. This event includes several artists’ studios on the city-wide tour. It is free and open to the public. The ZBA has also previously supported with funding and promotion the annual Orizaba Park Halloween Party for area children, providing games and candy in a safe environment. It is free and open to the public. The ZBA Board of Directors will continue to review all requests for support on an individual basis.
It is our hope that the City of Long Beach Special Events & Filming Department will move forward with another “Beach Streets” weekend event on the E. Anaheim St. corridor sometime during the 2022-2023 fiscal year. The ZBA will support this event in whatever manner we can.
Member & Area Marketing & Promotion
The ZBA will continue with our robust social media program and will continue to provide a district website, www.zaferia.org, which includes a directory of members and provides the opportunity for members to share promotions, events, and be highlighted.
In December of 2021, the ZBA hosted a Holiday Market on the private property of ZBA members located on Coronado Avenue. Over 40 vendors had tables selling items, such as art, jewelry, clothing, and other gift-types of goods. The vendors participated free of charge. The ZBA funded a local band for entertainment, a face painter a nd holiday photo area. Local nonprofit organizations also participated. The ZBA intends to hold a Holiday Market in December 2022.
During the second half of this fiscal year the ZBA brought back our community mixers. We intend to hold mixers every other m onth at a member business location. The ZBA provides funding to cover the cost of food and drinks, and advertises the event.
Member Representation & Communication
The ZBA will continue to support and participate in the Council of Business Associations (COBA) and relay information about City programs and topics of interest to ZBA members by way of email communications and the Member Resources page on our website. The ZBA’s Member Outreach Coordinator assists with reporting and follow-up in this area.
7 | P a g e
We intend to revive the Urban Design Committee to stay involved with the Pedestrian Safety Grant median work by the City’s Public Works Department, slated to start sometime this coming fiscal year.
We hope to improve upon communications with area neighborhood associations.
We are planning to create new printed materials for new Zaferia District members that communicate where to go for city resources and how to inform our administration of upcoming events and promotions.
Member Support
The ZBA will provide support to members on an as-needed basis with assistance on City fees within the limitations of the proposed budget.