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SR-06-23-2015-9B - 213-004-01 / 213-011City of City Council Report Santa Monied City Council Meeting: June 23, 2015 Agenda Item: Li -�E) To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: Lincoln Boulevard PBAD and Colorado Avenue Overlay Zone Recommended Action Staff recommends that the City Council hold a public hearing and receive comment regarding the formation of the Lincoln Boulevard Property -Based Assessment District (PBAD) and Colorado Avenue Overlay Zone. Executive Summary On April 28, 2015, Council adopted Resolution Numbers 10872 and 10873 declaring its intention to set a public hearing for June 23, 2015, to consider the formation of the Lincoln Boulevard PBAD and establishment of new benefit zones within the existing Downtown Santa Monica PBAD along Colorado Avenue. Council also authorized the mailing of ballots to property owners of record in each proposed assessment area. Ballots will be accepted until the close of the public hearing and will be tabulated and certified by the Office of the City Clerk. Results will be announced at the Council meeting on July 14, 2015, at which time Council will be asked to take action subject to the ballot results. Background On April 8, 2014, Council authorized staff to work in partnership with Downtown Santa Monica Inc. (DTSM) to explore the modification of the existing Downtown Santa Monica Property -Based Assessment District (PBAD) along Colorado Avenue (Colorado Overlay Zone), as well as explore the establishment of a new property -based assessment district along Lincoln Boulevard (Lincoln PBAD) to provide expanded and enhanced services in each of the respective areas. On February 10, 2015, Council reviewed and approved the draft Colorado Avenue Overlay Zone Management Plan, the draft Lincoln Boulevard Property -Based Assessment District Management Plan and each area's respective Engineer's Report. Council also supported the City's funding of the general benefit costs associated with each assessment area, authorized the City Manager to sign petitions for City -owned 1 parcels located within the proposed Colorado Overlay Zone and considered authorizing Big Blue Bus (BBB) to voluntarily contract for overlay services for the 320 linear feet of the BBB campus that runs along Colorado between 6 1 and 7th Streets. On April 28, 2015, Council accepted petitions from property owners representing more than 40 percent of the proposed assessments in each area and adopted Resolution Numbers 10872 and 10873 declaring its intention to set a public hearing on June 23, 2015. Council also authorized the mailing of ballots to property owners of record in each proposed assessment area to consider the formation of the Lincoln Boulevard PBAD and Colorado Overlay Zone. Discussion In accordance with Proposition 218 and state law governing the establishment of property -based assessment districts, ballots have been mailed to all property owners of record within the boundaries of each proposed area along with the proposed assessment amount for each individual property. Ballots will be accepted until the close of the June 23, 2015 public hearing. Thereafter, the ballots will be tabulated and certified by the Office of the City Clerk. Ballots will be counted and weighted according to the proportional financial obligations of the assessed property. Results will be announced at the July 14, 2015 Council meeting. Next Steps If the election results in a majority favoring the formation of each assessment area, Council would be asked to consider resolutions approving the Engineer's Reports and the levying of assessments. The City would submit the assessment rolls to the County Tax Assessors for collection in the upcoming tax cycle commencing in October 2015. If the election results do not result in a majority favoring the formation of each assessment area, the assessment district could not be established. If the Lincoln PBAD and Colorado Overlay Zone are successfully enacted, Council would also be asked for authorization to amend the Services Agreement between the W City and DTSM to include the administration and implementation of the enhanced maintenance services for the Lincoln PBAD and Colorado Overlay Zone areas. The amended Services Agreement would also reflect that the City would fund the general benefit costs associated with the assessment areas as determined in the Engineer's reports. General benefits are estimated to total $48,814 for the first year ($35,200 for the first year of the Colorado Overlay Zone and $13,614 for the first year of the Lincoln PBAD). Lastly, DTSM is requesting that the City contract with them and commit funding to provide enhanced maintenance services benefiting a City -owned property that is located outside of the existing Downtown PBAD and proposed Colorado Overlay Zone. That property is located at 612 Colorado between 6'h and 7'h Streets and is part of the Big Blue Bus campus. The estimated cost would be $25,000 for the first year. If the Colorado Overlay is approved, Council would be asked to consider and authorize an amended Services Agreement and funding of the services at 612 Colorado. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. Prepared by: Elana Buegoff, Sr. Development Analyst Approved: Andy Agle, Director Housing and Economic -D elopment 91 Forwarded to Council: R�K� Elaine M. Polachek Interim City Manager