CITY OF
LONG
January 10, 2023
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Economic Development Department
411 West Ocean Boulevard, 1 o'" Floor Long Beach, CA 90802 (562) 570-6099
C-4
Adopt a Resolution approving the Annual Report for October 1, 2022, to September 30, 2023, for the Belmont Shore Parking and Business Improvement Area, declaring its intention to levy the annual business assessment, and setting the date of hearing for February 7, 2023. (District 3)
DISCUSSION
The Belmont Shore Parking and Business Improvement Area (BSPBIA) was established by the City Council in 1983, allowing for the levy of an annual business license assessment to be paid by businesses located in the BSPBIA. The City of Long Beach (City) contracts with the Belmont Shore Business Association (BSBA) to manage the BSPBIA and the BSBA Board of Directors serves as the Advisory Board to the City Council on matters related to the BSPBIA.
The BSBA promotes and markets the commercial area along Second Street using funds generated through the BSPBIA 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 September 23, 2022, the BSBA Board of Directors voted to recommend to the City Council approval of the 2022-2023 BSPBIA 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 the continuation of the assessment. The Annual Report proposes no change to the BSPBIA boundaries or the method of levying the assessment.
Method of Assessment
Assessments are calculated by category of business and incorporate a base rate plus a per employee rate. The BSBA Advisory Board proposes a 25 percent assessment increase effective January 2023. This would be the first assessment increase in 10 years. General inflation and rising event permit fees are the main reasons for the proposed assessment increase. The BSBA has notified its membership about their proposed assessment increase through electronic mail communications, hand delivered notices and public meetings. The
HONORABLE MAYOR AND CITY COUNCIL
January 10, 2023
estimated 2022-2023 fiscal year revenue from business assessments is $151,646.22, which reflects the 25 percent assessment increase.
The Annual Report, transmitting the recommendations of the BSBA, proposes the following assessment rates.
Category FY 22 FY 23 FY 22 FY 23
Base Rate Base Rate Employee Employee
Rate Rate
Financial Institution & Insurance $1,646.22 $2,057.77 $16.50 $20.62 Service Real Estate Office $638.70 $798.37 $22.00 $27.50 Retail - Restaurant w/alcohol & RTE $640.19 $800.23 $9.63 $12.03 Retail - Other $548.73 $685.91 $8.25 $10.31
ConsultinQ $425.80 $532.25 $22.00 $27.50
Construction Contractor $425.80 $532.25 $22.00 $27.50
Insurance Agent Professional $425.80 $532.25 $22.00 $27.50 Professional $425.80 $532.25 $22.00 $27.50
Service - Other $319.35 $399.18 $16.50 $20.62
Misc. Rec/Ent, Vending, $319.35 $399.19 $16.50 $20.62
ManufacturinQ, Unique & Wholesale
39% Reduced Rate for Service- $194.80 $243.50 $16.50 $20.62 related Independent Contractors
Nonprofits $0.00 $0.00 $0.00 $0.00
Proposed Assessment Rates with 25 percent Increase
The recommended Resolution grants approval of the Annual Report and declares the intention of the City Council to levy the assessment for proposed activities and sets the date of the public hearing for February 7, 2023.
This matter was reviewed by Deputy City Attorney Marsha Yasuda on December 20, 2022 and by Budget Operations and Development Officer Rhutu Amin Gharib on December 15, 2022.
TIMING CONSIDERATIONS
City Council action is requested on January 10, 2023, to set the date of the public hearing for February 7, 2023. The new contract year began on October 1, 2022.
FISCAL IMPACT
It is estimated that the BSPBIA will generate $151,646 in Fiscal Year 2023 through the proposed continuation of the assessment, including the 25 percent increase effective January 1, 2023. This is an estimated $39,076 increase over FY 22's revenue of $112,570. Assessment funds are collected by the City on behalf of the BSBA through additional fees attached to BSPBIA business licenses and passed directly through to the BSBA for implementation of annual programs. This recommendation has no staffing impact beyond the normal budgeted
HONORABLE MAYOR AND CITY COUNCIL
January 10, 2023
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,
BO~Z
DIRECTOR OF ECONOMIC DEVELOPMENT
ATTACHMENT: RESOLUTION
APPROVED:
THOMAS B. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, 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 BELMONT SHORE PARKING AND BUSINESS
IMPROVEMENT AREA ; AND DECLARING ITS INTENTION
TO LEVY THE ANNUAL ASSE SSMENT FOR THAT FISCAL
YEAR
WHEREAS, pursuant to Section 36533 of the California Streets and Highways Code, the Belmont Shore Business Association has caused a Report to be prepared for October 1, 20 22 to September 30, 20 23, relating to the Belmont Shore Parking and Business Improvement Area (“BSPBIA”); 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 appro ved such Report, the City Council hereby declares its intention to:
A. Modify assessments and confirm levy of and direct collecting assessments for the BSPBIA for October 1, 20 22 to September 30, 20 23. Said assessments are proposed to be levied on such cl assifications and at such rat es as are set forth in Exhibit “A” attached hereto and incorporated herein; B. Provide that each business shall pay the assessment annually, at the same time the business license is due. This 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
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
ORD C-5963, as adopted by the City Council on June 7, 1983; 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, 20 22 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 levy 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 Belmont Shore 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 February 7, 2023, at 5:00 p.m., in the Civic Chamber, 411 West Ocean Bou levard, Long Beach, California 90802, the City Council of the City of Long Beach will conduct a public hearing o n the levy of proposed assessments for October 1, 20 22 to September 30, 20 23 for the BSPBIA. 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 hea ring, 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.
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, 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 accompanied by written evidence tha t 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 called for in Section 2 by caus ing 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 _______________________, 2023, by the following vote:
Ayes: Councilmembers: __
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk
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OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
EXHIBIT “A”
2022-2023 Annual Report
Belmont Shore Parking and Business
Improvement Area
SUBMITTED BY THE BELMONT SHORE BUSINESS ASSOCIATION
TO THE CITY OF LONG BEACH
SEPTEMBER, 2022
Table of Contents
DISTRICT OVERVIEW 2 .....................................................................................................................................
District Background 2 ....................................................................................................................................
District Boundary 3 ........................................................................................................................................
District Advisory Board 4 ..............................................................................................................................
District Personnel 4 ........................................................................................................................................
METHOD OF ASSESSMENT 5 ..........................................................................................................................
Proposed Method of Assessment Collection Changes 5 .........................................................................
Proposed Assessment Adjustments 5 .........................................................................................................
Notification to Members 5 ............................................................................................................................
ESTIMATED BUDGET 2022-2023 7 .................................................................................................................
Surplus or Deficit Carryover 10 ....................................................................................................................
Contributions from Other Sources 10 .........................................................................................................
DISTRICT PROGRAMS 10 .................................................................................................................................
Member Communications 10 ...................................................................................................................
Marketing & Social Media 10 ....................................................................................................................
Community Outreach 11 ...........................................................................................................................
Security 11 ...................................................................................................................................................
Special Events 11........................................................................................................................................ | Page 1
DISTRICT OVERVIEW
District Background
The Belmont Shore Business Association was incorporated on May 21, 1948 as a non-profit Corporation under California State law by the City of Long Beach City Council.
In 1983, the City Council of the City of Long Beach adopted Ordinance C-5963, which established the Belmont Shore Parking and Business Improvement Area, providing for the levy of an additional business license assessment to be paid by businesses in the Belmont Shore commercial corridor.
In 2008, the City Council of the City of Long Beach adopted Ordinance 08-0026 modifying the boundaries of the BSPBIA.
The BSBA is contracted by the City of Long Beach to manage the Parking and Business Improvement District. Assessment revenues are generally spent on activities that market the corridor and its businesses, as well as promote a safe, clean and vibrant environment.
The purpose of the BSBA is to form a common bond among business owners located in and around the Belmont Shore area whose goals are to promote, protect, and maintain prosperity for the Belmont Shore Community.
This association is for its members and the immediate neighborhood, seeking to provide a united front to express opinions, protect tranquility and promote a better understanding among merchants, institutions, professionals, and residents.
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District Boundary
There are no proposed changes to the district boundaries.
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District Advisory Board
The Belmont Shore Business Association Board of Directors serves as the Advisory Board to the City Council of the City of Long Beach on matters related to the Belmont Shore Parking and Business Improvement Area.
The BSBA has 14 available positions on its Board of Directors. Five of the elected directors serve as officers of the Association. All (14) of the directors and officers are known as the Board of Directors.
Elections for the 2021-22 Board of Directors are being held during August - September of 2021.
An elected board member term of office is two years. Officers are voted in every year by the Board of Directors in September before the new terms begin.
Officers
PRESIDENT Kurt Schneiter, Maverick Investments ..................................... 1st VP OF FINANCE Dave Shlemmer, Shlemmer Investments ......................
VP OF PROMOTIONS. Tula Trigonis, Salon Soma ..................
SECRETARY Matt Peterson, Legends ....................................
TREASURER Eric Johnson, Legends ....................................
Directors
Dana Buchanan, Primal Alchemy Catering, Associate Member Heather Duncan, Blue Windows
Rebecca Hinderer, Let’s Yolk About it
Eric Johnson, Legends Sports Bar & Restaurant
Nick Rodriguez, Colossus Bread
Shannon Salazar, Nu Du Salon
Mike Simms, Simmzy’s
Deanny Lungu-Underwood, Lungu Law
District Personnel
Heather Kern, Executive Director
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METHOD OF ASSESSMENT
Proposed Method of Assessment Collection Changes
The Belmont Shore Business Associa tion Board of Directors proposes no changes to the method and basis of levying the assessment.
Proposed Assessment Adjustments
The BSBA Board of Directors is requesting a 25% assessment increase for the 2022-2023 contract year, and to remain at this new annual rate until any future adjustments.
Our members have not seen an increase of any kind for over 10 years. We are seeking these increases due to inflation and the cost of producing events. *Core inflation averaged
2.47% per
year between 2012 and 2022. We have seen this increase in all expenses including staffing, marketing, event rentals, vendor fees and event permits. As an example the cost of the city event permit for our holiday parade was $25,000 in 2019 and is a little over $41,000 this year.
We have notified our members and have provided an opportunity to address any concerns. We request for this increase to go into effect starting January 2023. *
source: https://www.in2013dollars.com/us/inflation/2012
Notification to Members
The BSBA has been in contact with its membership about the potential fee increase. We sent out 2 separate emails to the entire membership with the notification of the proposed increase as well hand delivered to every business. We hosted three meetings for business owners to come learn about the proposed increase, discuss any issues they may have, and speak with our board members to learn about how the increase in fees would be used.
The increased fees would allow the BSBA to continue to produce the 2 large community events that we have produced for decades as well as support staff with increased wages and increased promotional costs.
November 3rd - 1st email & information pamphlet was sent to the membership November 7th - Notices were hand delivered
November 9th - First meeting held on a Wednesday evening, 6pm at Legends November 14th - 2nd email & information pamphlet was sent to the membership November 15th - Second meeting held on a Tuesday morning, 10am at Legends November 19th - Third meeting held on a Saturday morning, 10am at Legends Please see tables of assessments on the next page
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Table reflecting current assessments
CATEGORIES BASE RATE EMPLOYEE RATE
Financial Institution & Insurance $1,646.22 $16.50
Service Real Estate Office $638.70 $22.00
Retail – Restaurant w/alcohol & RTE $640.19 $9.63
Retail – Other $548.73 $8.25
Consulting $425.80 $22.00
Construction Contractor $425.80 $22.00
Insurance Agent Professional $425.80 $22.00
Professional $425.80 $22.00
Service – Other $319.35 $16.50
Misc. Rec/Ent, Vending, Manufacturing,
Unique & Wholesale $319.35 $16.50
39% Reduced Rate for Service-related Independent
Contractors $194.80 $16.50
Non-profits 0.00
Table FY 2022-2023 reflecting new increased assessments
CATEGORIES BASE RATE EMPLOYEE RATE
Financial Institution & Insurance $2,057.77 $20.62
Service Real Estate Office $798.37 $27.50
Retail – Restaurant w/alcohol & RTE $800.23 $12.03
Retail – Other $685.91 $10.31
Consulting $532.25 $27.50
Construction Contractor $532.25 $27.50
Insurance Agent Professional $532.25 $27.50
Professional $532.25 $27.50
Service – Other $399.18 $20.62
Misc. Rec/Ent, Vending, Manufacturing,
Unique & Wholesale $399.19 $20.62
39% Reduced Rate for Service-related Independent
Contractors $243.50 $20.62
Non-profits 0.00
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ESTIMATED BUDGET 2022-2023
INCOME AMOUNT
4200 Membership Dues
4210 BIA Fund 151,646.22
4220 Associate members 500.00
4200 TOTAL 152,146.22
4400 Corporate Sponsorship
4420 Car Show 8,000.00
4485 Chocolate Festival 0.00
4440 Stroll & Savor 1,000.00
4470 Christmas Parade 25,000.00
4495 Chalk Walk 0.00
4400 TOTAL 34,000.00
4600 Investment Returns
4610 Interest on Checking 25.00
4600 TOTAL 25.00
4800 Promotional Events
4820 Car Show 2,000.00
4840 Stroll & Savor
4842 May 25,000.00
4844 June 30,000.00
4845 July 30,000.00
4846 August 30,000.00
4870 Christmas Parade 40,000.00
4885 Chocolate Festival 8,000.00
4895 Roar and Shore 0.00
4800 TOTAL 165,000.00
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4900 LONG BEACH RECOVERY ACT GRANT
4910 Administration 10,630.90
4920 Business Assistance 31,892.70
4930 Marketing & Promotion 42,523.60
4940 Clean & Safe 21,261.80
4900 TOTAL 106,309.00
INCOME TOTAL 457,480.22
EXPENSES AMOUNT
6200 ADMINISTRATION
6201 Outside Services 70,000.00
6220 Rent 21,000.00
6230 Office 1,000.00
6232 Postage 200.00
6234 Printing 7,000.00
6236 Supplies 2,500.00
6238 Equipment 2,000.00
6240 Insurance 6,500.00
6250 Telephone 2,000.00
6260 Accounting 1,150.00
6270 Meetings/Mixers 3,000.00
6280 Dues & Subscriptions 1,000.00
6200 TOTAL 117,350.00
6600 ONGOING PROMOTIONS
6612 Christmas Decorations 6,000.00
6660 Marketing 27,321.22
6630 Welcome Wagon 1,000.00
6640 Shore Corp 0.00
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6650 Web Page 1,000.00
6600 TOTAL 35,321.22
6800 PROMOTIONAL EVENTS
6896 Roar in the Shore 6,500.00
6820 Car Show 14,000.00
6840 Stroll & Savor
6842 May 15,250.00
6844 June 18,250.00
6845 July 18,250.00
6846 August 18,250.00
6870 Christmas Parade 85,000.00
6855 Chalk Walk 0.00
6865 Holiday Shopping 5,000.00
6885 Chocolate Festival 8,000.00
6885 Entertainment 10,000.00
6800 TOTAL 198,500.00
6900 LONG BEACH RECOVERY ACT GRANT
6910 Administration 10,630.90
6920 Business Assistance 31,892.70
6930 Marketing & Promotion 42,523.60
6920 Clean & Safe 21,261.80
6900 TOTAL 106,309.00
EXPENSE TOTAL 457,480.22
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Surplus or Deficit Carryover
The Belmont Shore Business Association does not anticipate a deficit at the end of Fiscal Year 2022-2023.
Contributions from Other Sources
The Belmont Shore Business Association has multiple sources of income outside of the Belmont Shore Parking and Business Improvement Area assessment funds.
These sources of income can include promotional events, corporate sponsorship, associate memberships and investment returns. The estimated income for these sources is listed in the estimated 2022-23 revenue section of this report.
DISTRICT PROGRAMS
Member Communications
Most of the BSBA office to BSBA member communication has been done by email, meetings, and phone calls. The Executive Director also walks the district weekly to drop in on business owners, especially targeting those who may be less than likely to reach out on their own.
Our bi-monthly e-blast that goes out to all BSBA Officers and members currently sees an average open rate of 50%, which is well over the expected industry standard. In an effort to increase our ability to connect with our members, the Officers have also been tasked with reaching out to their colleagues directly, whenever possible.
Our BSBA board meetings are being held in person and the general membership meetings have become a quarterly event. Our board meetings are held on the last Friday of the month (unless otherwise noted) and this schedule has been shared with our members and posted on the belmontshore.org website.
Marketing & Social Media
The BSBA district is marketed as an iconic travel destination and a local hot-spot for Long Beach and beyond. We are currently advertising in multiple print and digital publications including The Grunion Gazette, Travel Host Magazine, LB Post, Press Telegram, and more. | Page10
We are placing an emphasis on the return of large scale events. An outside agency has been contracted to manage the strategic social media engagement plan and the collaborations with local influencers along with providing a consistent presence at relevant events.
Community Outreach
The BSBA Executive Director attends the following monthly community meetings: Belmont Shore Residents Association (BSRA), Friends of Belmont Shore (FOBS), and other residential meetings organized by the 3rd District Council office.
The Executive Director attends the weekly meetings of Council of Business Associations (COBA) and the monthly Belmont Shore Parking & Business Improvement Area Advisory Commission (BSPBIAAC).
Security
The BSBA coordinates with the Police Department’s East Division and invites them to attend monthly BSBA meetings if there are concerns or necessary updates.
As part of a pilot program budgeted by the Parking Commission and overseen by the BSBA, we have contracted the coverage of CSI Security to patrol the area on bicycles from Thursday - Monday during the hours of 8am-2pm, approximately. They are also available around the clock via their dispatch system (including during non-scheduled hours) and our BSBA businesses are encouraged to call for assistance whenever needed.
Our ongoing communication with Commander Chad Ellis, Lieutenant Ryan Watson and Officer Brendan Murphy have all been crucial parts of keeping the neighborhood safe and the community informed of those efforts.
Special Events
Events for the beginning of our Fiscal Year 2022-2023 are as follows: Chalk Walk + Art Contest (October 15th, 2022), Trick or Treat on 2nd Street (October 31st, 2022), Small Business Saturday (November 26, 2022), Annual Belmont Shore Christmas Parade (December 3rd, 2022).
Our specific events for 2023 will be developed according to recommendations from the newly elected Executive Board.
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