Administrative
Report
H.12., File # 24-1462 Meeting Date: 9/17/2024
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT AND ECONOMIC DEVELOPMENT DIRECTOR TITLE
ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2409-081, A RESOLUTION OF THE CITY OF
REDONDO BEACH, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ASSESSMENT
AGAINST BUSINESSES WITHIN THE RIVIERA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE CALENDAR YEAR 2025 AND SETTING A TIME AND PLACE FOR HEARING OBJECTIONS THERETO; AND
SET NOVEMBER 5, 2024 AT 6:00 PM AS THE DATE AND TIME FOR THE PUBLIC HEARING ON
THE LEVY OF THE PROPOSED ASSESSMENTS
EXECUTIVE SUMMARY
The Riviera Village Business Improvement District (BID) was established by the City Council in 2003 pursuant to the California Parking and Business Improvement Area Law of 1989 (Section 36500 of the Streets and Highway Code) to promote the economic revitalization and physical maintenance of the Riviera Village Business District. The City Council appointed an Advisory Board for the BID to advise the City Council on the method and basis for the levy of assessments utilized to fund revitalization and maintenance efforts. Each year, Council action must be taken to levy a specified assessment on participating BID businesses for the upcoming year, which will be utilized for special events and improvements around the BID area. The Riviera Village Advisory Board (RVA) has voted to increase the levy of assessments in the BID by roughly 15-25% (depending on the business and type of fee) for the upcoming year (2025) and seeks City Council action to initiate the assessment process. The levy of assessment has not been increased since 2006. The increase is needed to accommodate inflationary costs associated with BID activities.
BACKGROUND
The associated levy of assessments for the BID require approval by the City Council. BID funds are collected from businesses in the District by the City via the annual business license renewal process.
All business license holders located within the boundaries continue to be members of the BID.
Historically, each business license holder (with the exception of non-profit organizations who elect not to participate in the BID) is assessed as follows: Each business license holder pays a base fee of $100 plus a fee of $29 per employee per year to a maximum assessment of $1,000. Those licensees who are property owners are assessed on a per unit basis with a base fee of $100 plus $29 per rental unit per year, with a maximum assessment of $1,000. Examples: A licensee with 10 employees would pay an assessment of $390. A property owner with four rentals would pay an annual assessment of $216. Total fees collected in 2024 are still being assessed, however the 2023 assessment was based on the same formula and produced $78,936 in assessments. The RVA
H.12., File # 24-1462 Meeting Date: 9/17/2024
assessment was based on the same formula and produced $78,936 in assessments. The RVA anticipates 2024’s total assessment to be similar. Historically, the BID has distributed funds in the following allocation: 50% Beautification, 40% Marketing, and 10% Administration.
The proposed assessment for 2025 represents an increase from the current rate and would be assessed as follows: Each business license holder would pay a base fee of $125 plus a fee of $34 per employee, per year to a maximum assessment of $1,400. Those licensees who are property owners and are assessed on a per unit basis would pay BID fees of $125 plus $34 per rental unit, per year with a maximum assessment of $1,400. Examples: A licensee with 10 employees would pay a total annual assessment of $465. A licensee with no employees would pay a total annual assessment of $125. A licensed property owner with four rental units would pay an annual assessment of $261.
In order to account for increasing costs, the RVA has formally requested, and the RVA Board has voted to approve, the proposed increase in the base fees and maximum assessments for RVA dues.
Operating expenses have increased dramatically with the rise in the cost of living, consistent with inflationary pressures. Additionally, the RVA is tasked with managing the parklet program, and the management income does not fully offset program expenses. The assessment increase is expected to increase the current annual assessment revenue of $79,000 to an estimated $106,000 in 2025.
The City Council is requested to take the following actions: Adopt the proposed Resolution of Intention to Levy the Assessments for the coming Calendar Year; and set a date and time for the Public Hearing on the levy of assessments in the BID for November 5, 2024 at 6:00 PM. At the public hearing on November 5, participating BID members would have the opportunity to submit a protest against the proposed assessment, which represents an increase from previous years.
Protests can be submitted prior to and during the public hearing. A protest may be submitted orally or in writing. If a majority protest occurs, City Council would not be able to increase the assessment as proposed but would still be required to levy an assessment, which would then be up for discussion. In the absence of a majority protest, the City Council may decide to increase the assessment as proposed by the RVA. The levying of assessments for 2025 would begin January 1, 2025.
COORDINATION
The Riviera Village BID renewal is coordinated by the Waterfront and Economic Development Department, with assistance from the City Manager’s Office, City Attorney’s Office, and the Financial Services Department.
The Financial Services Department provides assistance with the BID assessment, receipt of payments, and the processing of applicable assessments and payments. The Waterfront and Economic Development Department has taken the lead in the annual renewal process.
FISCAL IMPACT
The BID enhances spaces in the public right-of-way and provides supplemental services in common areas that would otherwise fall to the City to maintain. BID assessments are restricted for use exclusively by the BID and must be reported to the City Council annually. It is anticipated that the BID’s annual activities encourage activity and retail growth, potentially resulting in additional sales tax revenue for the City. The Riviera Village Advisory Board’s proposed assessment adjustment is expected to increase the $79,000 collected historically each year to an estimated $106,000 in 2025.
H.12., File # 24-1462 Meeting Date: 9/17/2024
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. CC-2409-081 Declaring Intention To Levy Assessment Against Businesses in the Riviera Village Business Improvement District for Calendar Year 2025