SR-213-000-01
F:\RESOURCE\SHARE\GWENSH\STAFREPT\BIDContracts.doc
Council Meeting: April 10, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize City Manager to Negotiate and Execute
Contracts with the Valley Economic Development Center to Administer Funds
for Three Business Improvement Districts (BIDs), Montana Avenue, Main
Street, and Pico Boulevard.
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and
execute contracts with the Valley Economic Development Center for the administration of
funds received by the City on behalf of three business improvement districts (BIDs),
Montana Avenue, Main Street, and Pico Boulevard, each contract shall be for a one-year
period of time beginning July 1, 2001, and renewable on an annual basis. The Valley
Economic Development Center is the administrator of the Westside Small Business
Development Center located at the Santa Monica Airport.
Background and Discussion
The Santa Monica Chamber of Commerce presently administers BID funds raised by the
three business improvement districts through contracts with the City. The total amount
received on behalf of the three BIDs is $253,000. During the creation of the Pico
Boulevard Business Improvement District, Council expressed interest in allowing each of
the districts to choose their own administrator. It authorized the City Manager to negotiate
and execute a contract with the Chamber to administer the Pico BID for one year ending
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June 30, 2001. The Pico contract provides for a 10% retention by the administrator for
servicing of the contract except under extraordinary circumstances agreed upon by the
business improvement committees. The other two BID administrative contracts, for
Montana and Main Street, were entered into between the City and the Chamber in 1974
and 1984 respectively. These contracts do not have a specific term or expiration date.
The Chamber of Commerce requested that the City seek an alternative administrator for
the three districts. A primary reason for the Chamber’s decision was their determination
that costs to administer the BIDs substantially exceed the allowed retention.
City staff analyzed various administrative alternatives to recommend to the BID’s and
determined that the best option would be to link the business improvement committees to
an incorporated entity having a track record of good administration and experience in
providing small business support services. The Valley Economic Development
Corporation (VEDC), current contractor with the Small Business Administration and State
of California Department of Trade and Commerce for the Westside Small Business
Development Center, presented such a proposal. VEDC made a presentation to the
combined business improvement committee chairpersons on February 16, 2001, and the
Chairpersons recommended acceptance of the VEDC as administrator under the same
terms as the Chamber’s current contract. Each of the Boards voted to accept VEDC as
their BID administrator.
BUDGET/FINANCIAL IMPACT
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There are no financial/budgetary impacts from this actionThe City’s 5% retention for
.
administrative costs is unaffected by either contract administrator.
RECOMMENDATION
City staff recommends that the City Council authorize the City Manager to negotiate and
execute contracts with the Valley Economic Development Center for administration of the
Main Street, Montana Avenue, and Pico Boulevard business improvement districts for a
one-year term commencing July 1, 2001, with one-year renewal options.
Prepared by: Jeff Mathieu, Director of Resource Management Department
Mark Richter, Economic Development Division Manager
Gwen Pentecost, Sr. Admin. Analyst, Economic Development Div.
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