SR-11-13-2012-3KCity Council Meeting: November 13, 2012
Agenda Item: 3 °V-
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Downtown Santa Monica Inc. (DTSM) Services Agreement Amendment
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a Second Amendment to Services Agreement No. 9063 (CCS) with DTSM to
add an additional distribution date in the payment schedule outlined in the Agreement.
Executive Summary
The recommended amendment would add an additional distribution date in order to
provide a more timely distribution of downtown business and property -based
assessments to DTSM.
Background
On May 12, 2009, Council approved an Amended and Restated Services Agreement
Number 9063 (CCS) (the "Agreement ") between the City and Bayside District
Corporation (BDC). On February 28, 2012, Council authorized the First Modification to
the Agreement to reflect the name change of the BDC to Downtown Santa Monica, Inc.
(DTSM).
Under the Agreement, the City collects fees generated from the Downtown Santa
Monica Property -Based Assessment District (PBAD), the Mall Maintenance Fee, and
the Central Business District Fee (CBD) and is required to disburse to DTSM, less the
applicable administrative fee, all funds received and accounted for during four
disbursement periods, specifically within 21 days of December 31, February 28, May 31
and August 31 of each year.
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Discussion
The frequency of disbursement contained in the Agreement currently has created cash
flow challenges for DTSM, particularly because a large amount of funds are collected
and held by the City for several months during the fall period. Staff recommends
a modification to the Agreement in order to add a fifth disbursement date,
September 30, each year. A significant amount of funds are typically accumulated
between September 1 and September 30 of each year from the City's collection of the
Mall Maintenance Fee and CBD assessment with business license renewals. Under the
current Agreement, the disbursement of these funds would occur after December 31.
The proposed September 30 distribution would make these funds available to DTSM
sooner and enable DTSM to better budget and ensure sufficient cash flow for the
services they provide to the Downtown community.
Financial Impacts & Budget Actions
The proposed modification of the Agreement has no budget or financial impact on the
City.
Prepared by: Elana Buegoff, Sr. Development Analyst
Andy Agle, Director
Housing and Econom
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Forwarded to Council:
Rod-Gould
City Manager
Reference
Amended Contract
No. 9063 (CCS).