SR-03-17-2015-7ACity Council Report
City of
.Samita Monied
City Council Meeting: March 17, 2015
Agenda Item: 7 A
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Petition Threshold for Assessment District Consideration
Recommended Action
Staff recommends that the City Council introduce for first reading the attached ordinance
adopting local modifications to the requirements of the Property and Business
Improvement District Law of 1994 to reinstate a 40- percent- minimum petition threshold
for consideration of establishing a property or business improvement district.
Executive Summary
The proposed ordinance would reinstate the 40- percent- minimum petition threshold
necessary to call for elections regarding the establishment of a property or business
improvement district. Approval of a proposed district would continue to require affirmative
votes from more than 50 percent of the voting property owners, weighted by proposed
assessments.
Background
The Property and Business Improvement District Law of 1994 sets forth the process for
establishing property and business improvement districts and levying assessments.
Streets and Highways Code Section 36621(a) states that "Upon the submission of a
written petition, signed by the property or business owners in the proposed district who
will pay more than 50 percent of the assessments proposed to be levied, the city council
may initiate proceedings to form a district by the adoption of a resolution expressing its
intention to form a district." Charter cities are permitted to adopt local modifications to the
method of levying assessments pursuant to the Property and Business Improvement
District Law of 1994.
When the existing Downtown Property -Based Assessment District was originally formed
in 2008, staff from Downtown Santa Monica Inc. (DTSM -- known as the Bayside District
Corporation at the time), DTSM board members, and interested community members
spent nearly two years outreaching to property owners regarding the proposed PBAD.
However, as a result of many out -of -state and absentee property owners, DTSM was
challenged in reaching property owners. To help ensure that property owners would have
an opportunity to vote on the proposed district, Council adopted
Ordinance No. 2258 (CCS) on April 8, 2008, which added Santa Monica Municipal Code
Section 2.38.030, providing for a petition threshold of 40 percent. The section had a
sunset date of December 31, 2008.
Discussion
On February 10, 2015, Council reviewed the draft Colorado Avenue Overlay Management
Plan and the draft Lincoln Boulevard PBAD Management Plan. The Council discussion
included DTSM's difficulty in reaching out -of -state and absentee property owners, in spite
of nearly one year of outreach efforts. As a result, Council directed staff to prepare an
ordinance reinstating the 40- percent- minimum petition threshold required to initiate
proceedings to establish property and business districts. The attached ordinance would
reinstate the threshold by removing the sunset date.
Next Steps
If the 40- percent- minimum petition threshold is reached for the Colorado Avenue Overlay
and /or the Lincoln Boulevard PBAD, Council would be asked to hold public hearings to
adopt a resolution of intention for each assessment area. The City would then prepare
and mail out ballots to all property owners within the boundaries of each proposed
assessment area. Proposition 218 requires a ballot vote with no less than 50 percent of
the ballots received, weighted by assessment, to be in support of the assessment in order
for the assessment areas to be formed. If the assessment overlay or district is approved
by the majority of property owners, Council would adopt resolutions approving the
formation of the Colorado Overlay and the Lincoln Boulevard PBAD.
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Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Elana Buegoff, Senior Development Analyst
Approved: Forwarded to Council:
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Andy Agle, Director Elaine M. Polachek
Housing and Econom' evelopment Interim City Manager
Attachments:
Attachment A: Ordinance
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City Council Meeting: March 17, 2015 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ADOPTING LOCAL MODIFICATIONS TO THE METHOD OF
LEVYING ASSESSMENTS PURSUANT TO THE PROPERTY AND BUSINESS
IMPROVEMENT DISTRICT LAW OF 1994
WHEREAS, property and business owners have expressed their desire to obtain
the benefits of enhanced services and improvements through the mechanism of
assessment financing; and
WHEREAS, the Property and the Business Improvement District Law of 1994
(the "State Law ") authorizes the establishment of assessment districts for the purpose of
providing the special benefits of enhanced services and improvements to property
owners and business owners; and
WHEREAS, the State Law expressly authorizes charter cities to modify the
method of establishing a district pursuant to the State Law; and
WHEREAS, authorizing modifications to the provisions of the State Law
governing the petition threshold will promote the welfare of the City by increasing the
flexibility and utility of the State Law so that petitions may be more readily initiated,
thereby facilitating the initiation of the district establishment process and enhancing
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opportunities for property and business owners to receive additional services and
improvements benefitting their area.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 2.38.030 is hereby amended
to read as follows:
2.38.030 Petition threshold.
Notwithstanding Streets and Highways Code
Section 36621(a) or any other provision of state law, the City
Council may initiate proceedings to establish a property and
business improvement district upon receipt of a petition
signed by property owners, business owners, or a
combination of property owners and business owners in the
proposed district who will pay at least forty percent of the
assessments proposed to be levied. This seGtien sha4
SECTION 2. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
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court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the
official newspaper within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
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MAF SHA JONES MOLJRIE
Cityc-Attorney J
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