Loading...
SR-07-14-2015-8B 213-004-01/213-011City Council Report City of Santa Pioaica° City Council Meeting: July 14, 2015 Agenda Item: To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: Lincoln Boulevard PBAD and Colorado Avenue PBAD Overlay Zone Recommended action Staff recommends that the City Council: 1) Accept the certified election results as tabulated by the City Clerk for the Lincoln Boulevard Property -Based Assessment District (PBAD) and Colorado Avenue PBAD Overlay Zone. 2) Adopt Resolutions Approving Engineer's Reports and the Levying of Assessments on parcels within the assessment areas. 3) Authorize the City Manager to negotiate and execute a modification to the existing Services Agreement with Downtown Santa Monica Inc. (DTSM) to implement and administer the newly established assessment areas, as well as execute a modification to the existing Maintenance Services Agreement with DTSM for enhanced maintenance services for the City -owned Big Blue Bus property at 612 Colorado Avenue at a cost of $25,000 for the first year. 4) Approve budget changes as noted in the Financial Impacts and Budget Actions section of this report. Executive Summary Property owner assessment ballots submitted to the City Clerk prior to the close of the June 23, 2015 public hearing have been tabulated. The City Clerk has determined that the ballots submitted in favor of the assessments exceed those submitted in opposition, with the ballots weighted in accordance to the proportional financial obligation of the affected property owners. Having determined that there is not a majority protest (Attachments 1 and 2), the Council is asked to adopt the Resolutions ordering the formation of the Lincoln Boulevard PBAD and Colorado Avenue PBAD Overlay Zone and the levy of assessments as set forth in the Final Engineer's Reports (Attachment 3 and 4). A modification to the existing Services Agreement and annual Maintenance Services Agreement between the City and DTSM would be necessary to allow DTSM to 1 implement and administer the new assessment areas, as well as provide additional contractual maintenance services. Background On February 10, 2015, Council reviewed and accepted the draft Management Plans and Engineer's Reports for the Lincoln Boulevard Property -Based Assessment District (PBAD) and Colorado Avenue PBAD Overlay Zone. The draft plans recommended specific expanded and enhanced services in each of the respective areas and identified budgets, assessment methodology, and general benefit funding. Council authorized the City Manager to sign petitions of support relating to the City -owned parcels located within the proposed Colorado Avenue PBAD Overlay Zone. The proposed Colorado Overlay would pay for ambassador services and enhanced maintenance benefitting property owners along Colorado between 7th Court and Ocean Avenue. The proposed enhanced maintenance would be in addition to the City's base level of maintenance services dedicated to the Colorado Esplanade. In addition, the proposed Lincoln Boulevard PBAD would provide services and assessments similar to that of the current Downtown PBAD, including enhanced maintenance, ambassador services, additional marketing, and beautification projects such as signage, seating, holiday decor, and planters. Council was also presented, in concept, with DTSM's request for the City to fund the payment of general benefits associated with the assessment areas, as well as contract with DTSM for $25,000 in the first year for enhanced maintenance services for the City -owned Big Blue Bus property located at 612 Colorado Avenue, which is just outside the boundaries of the Colorado Avenue PBAD Overlay Zone. On April 28, 2015, DTSM presented Council with petitions of support signed by property owners representing 53.17 percent for Lincoln Boulevard PBAD and 62.85 percent for Colorado Avenue PBAD Overlay Zone, which exceeded the required 40 percent minimum petition threshold. Council subsequently adopted Resolution Numbers 10872 (CCS) and 10873 (CCS) declaring the City's intention for the establishment of Wa the Lincoln Boulevard PBAD and the Colorado Avenue PBAD Overlay Zone and directed staff to mail out ballots to affected property owners. A Public Hearing was held on June 23, 2015, to receive testimony and accept property owner assessment ballots with the tabulated ballot results to be presented at tonight's meeting. Discussion Ballots received by the close of the June 23, 2015 Public Hearing have been tabulated, the results of which are: Yes: $189,422.76 (67 %); No: $92,685.05 (33 %) for the Lincoln Boulevard PBAD; and Yes: $182,833.08 (72 %); No: $70,627.88 (28 %) for the Colorado Avenue PBAD Overlay Zone Recognizing majority support, staff recommends the adoption of the Resolutions of Formation, approving the Engineer's Reports and the levying of assessments on parcels within the assessment areas Next Steps The adopted Resolutions forming the assessment areas and levying the assessments will be transmitted to the Los Angeles County Tax Assessor's Office with assessments to be levied on the property tax rolls for the 2015/16 tax year. The establishment of the new assessment areas necessitate that the City and DTSM modify the existing Amended and Restated Services Agreement to incorporate the new administrative and performance responsibilities. Staff seeks Council's authorization to prepare and execute modifications to the existing Service Agreement to allow DTSM to implement and administer the new assessment areas. The agreement would include an administration fee to recover City costs for collecting assessments and transferring funds to DTSM. The City's Administration fee formula is $74 per parcel per year, totaling $6,290 for the Lincoln Boulevard PBAD and $1,702 for the Colorado Avenue PBAD Overlay Zone. The City's cost recovery fee is adjusted annually by the Los Angeles — Riverside — Orange County Consumer Price Index Urban Wage Earners and Clerical Workers (CPI -w). 3 In addition, this report also seeks Council's authorization for the City Manager to modify the existing Maintenance Agreement with DTSM for enhanced maintenance services in the amount of $25,000 annually in the first year for City -owned BBB property located at 612 Colorado Avenue, which is just outside of the Colorado Avenue PBAD Overlay Zone. These supplemental enhanced maintenance services would be outlined in a modification to the existing Maintenance Agreement and would be distinguished from the enhanced maintenance work funded through the assessments. The City's funding of general benefit in the amount of $13,614 for Lincoln Boulevard PBAD and $35,200 for the Colorado Avenue PBAD Overlay Zone is addressed in the Resolutions establishing the assessment areas and would also be incorporated into a modification to the Services Agreement with DTSM. Alternatives Council could adjust the assessment formula and /or the district boundary of the proposed assessment areas. If Council decided to lower the assessment for any particular use, then the City will be obligated to pay the difference to maintain the budget and level of services. If Council decided to modify the boundary to reduce the size or remove any particular parcels, then the District would lose that revenue and the level of services would need to be reduced accordingly. If Council decides to modify the assessment or boundary, then the district's management plans and engineer's reports would need to be revised accordingly which would mean the district formation would be delayed for at least a year as the Los Angeles County tax assessment process is set to begin shortly. Alternatively, Council could decide not to form the assessment areas and the increased level of services would not be provided. Financial Impacts & Budget Actions The Colorado Avenue Overlay Zone and the Lincoln Boulevard PBAD will raise approximately $291,730 and $442,886, respectively, from property owners within the District. City -owned properties within the Colorado Avenue Overlay Zone will be assessed $48,309. The total budgets for the districts including property owner assessments and other revenues will be $357,500 for Colorado Avenue Overlay Zone and $456,500 for Lincoln Boulevard PBAD. Funds will be appropriated to the various accounts below as designated by the Finance Department. As part of the passage of the new assessment districts, the following Fiscal Year FY2015 -2016 budget modifications are recommended: • Increase expenditure budget at account 01274.577840 in the amount of $48,309 for the payment of assessments on City -owned properties within the Colorado Overlay District. • Appropriate $13,614 to expenditure account number 01263.544920 for Lincoln Boulevard PBAD General Benefits and $46,073 to expenditure account number 01263.544921 for Colorado Overlay General Benefits. • Appropriate $25,000 to account number C417061.589000 to provide enhanced services for the City -owned parcel located at 612 Colorado Avenue. • Appropriate $6,290 to revenue account number 01263.406984 and $1,702 to revenue account number 01263.406982 for cost recovery fees related to the collection and transfer of funds to DTSM from the Lincoln Boulevard PBAD and Colorado Avenue Overlay Assessment Districts, respectively. Prepared by: Elana Buegoff, Senior Development Analyst Approved: Andy Agle, Director Housing and Economic Attachments: Forwarded to Council: Rick Cole City Manager Attachment 1. Lincoln Boulevard PBAD Canvass Attachment 2: Colorado Avenue PBAD Overlay Zone Canvass Attachment 3: Resolution of Formation — Lincoln Boulevard PBAD Attachment 4: Resolution of Formation — Colorado Avenue PBAD Overlay Zone 5 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, Sarah P. Gorman, City Clerk of the City of Santa Monica, State of California, do hereby certify that the attached is a true and correct canvass of the ballots received and authorized through the end of the public hearing held on June 23, 2015, for the Lincoln Boulevard Property -Based Assessment District. Ballots Received: In favor: 35 $189,422.76 Against: 19 $ 92,685.05 Total Ballots Received: 54 YES VOTES APN Owner Name Site Address Parcel Assmt 4282010047 1315 SANTA MONICA LLC 1307 LINCOLN BLVD $8,167.50 1424 LINCOLN BLVD 4291021005 1424 LINCOLN BLVD LLC NO 300 $2,795.10 4290002008 1650 LINCOLN NMS LLC 1650 LINCOLN BLVD $5,887.81 4290002007 1658 LINCOLN NMS LLC 1658 LINCOLN BLVD $2,722.50 4290002006 1660 LINCOLN NMS LLC 1660 LINCOLN BLVD $2,722.50 4291021012 ANDERSON, SUSAN J 1452 LINCOLN BLVD $2,722.50 4282010020 ARYA LP 1323 LINCOLN BLVD $2,722.50 4282027021 BARCHESTER CALIFORNIA LP 1421 LINCOLN BLVD $2,722.50 4282027029 BARCHESTER CALIFORNIA LP 1411 LINCOLN BLVD $5,445.00 4291008008 BRADMORE LINCOLN LLC 1334 LINCOLN BLVD $2,722.50 CHECKER BOARD PROPERTIES 800 SANTA MONICA 4282027026 INC BLVD $5,445.00 4291008012 EQUITY ASSOCIATES INC 1352 LINCOLN BLVD $1,996.50 4291008013 EQUITY ASSOCIATES INC 1352 LINCOLN BLVD $726.00 717 SANTA MONICA 4291008014 EQUITY ASSOCIATES INC BLVD $2,991.12 4283001001 FSTAR 1601 LLC 1601 LINCOLN BLVD $12,094.98 4283001002 FSTAR 1613 LLC 1613 LINCOLN BLVD $11,702.58 4283002006 FSTAR 1637 LLC 1637 LINCOLN BLVD $13,312.58 4283003012 FSTAR 1641 LLC 1641 LINCOLN BLVD $7,574.27 4291008011 LINCOLN EQUITIES 1346 LINCOLN BLVD $2,722.50 4291008027 LINCOLN EQUITIES 1340 LINCOLN BLVD $5,445.00 4282027033 LINCOLN WALK STUDIOS LP 1447 LINCOLN BLVD $18,463.40 1218 1/2 LINCOLN 4291007003 MAXSER AND CO BLVD $2,722.50 NEW 725 ARIZONA AVENUE SM 4291007008 LLC 1260 LINCOLN BLVD $14,375.89 4291021007 NMS 1444 LINCOLN LLC 1432 LINCOLN BLVD $2,722.50 4291021008 NMS 1444 LINCOLN LLC 1438 LINCOLN BLVD $1,361.25 4291021009 NMS 1444 LINCOLN LLC 1440 LINCOLN BLVD $1,361.25 4291021010 NMS 1444 LINCOLN LLC 1444 LINCOLN BLVD $2,722.50 4291022024 NMS 1550 LINCOLN LLC 1560 LINCOLN BLVD $13,612.50 4291008025 NMS1318LINCOLN LLC 1318 LINCOLN BLVD $5,445.00 4291021006 NMS1430LINCOLN LLC 1430 LINCOLN BLVD $2,722.50 801 SANTA MONICA 4282010015 SHERIDAN FAMILY PARTNERSHIP BLVD $8,167.50 4282010016 SHERIDAN FAMILY PARTNERSHIP 1347 LINCOLN BLVD $4,937.53 4282010017 SHERIDAN FAMILY PARTNERSHIP 1343 LINCOLN BLVD $2,722.50 4282010018 SHERIDAN FAMILY PARTNERSHIP 1339 LINCOLN BLVD $2,722.50 4282010019 SHERIDAN FAMILY PARTNERSHIP 1335 LINCOLN BLVD $2,722.50 TOTAL ASSESSMENT $189,422.76 NO VOTES 4291021003 1414 LINCOLN BLVD LLC 1414 LINCOLN BLVD $2,722.50 4282009018 BRAND, CARMELLATR ET AL 1227 LINCOLN BLVD $2,722.50 4283003010 CA SM NO ONE LP 1669 LINCOLN BLVD $21,065.25 4290002010 DUNLAP, BRODERICK 1670 LINCOLN BLVD $8,111.09 4282009014 FARZAM, MAURICE 1243 LINCOLN BLVD $2,722.50 4282009027 FARZAM, MAURICE AND NOOSHIN 1237 LINCOLN BLVD $2,347.50 4282028018 HAIEM LTD PTNSHP NO 2 1533 LINCOLN BLVD $2,722.50 4282028019 HAIEM LTD PTNSHP NO 2 1527 LINCOLN BLVD $2,722.50 4291008003 HAINE, GEORGE A TR 720 ARIZONA AVE $1,017.25 4290001012 JIVANI, ABDULAZIZ AND SAKER 1624 LINCOLN BLVD $8,090.70 4291021028 LINBRO PROPERTIES LLC 723 BROADWAY $3,380.00 4282028016 NAIMI, KAYVAN N AND FARINAZ S 1507 LINCOLN BLVD $2,722.50 4282028017 NAIMI, KAYVAN N AND FAR INAZ S 804 BROADWAY $2,722.50 4290001016 NASON, FREDERICK N JR TR ET AL 700 COLORADO AVE $7,943.00 4282009029 ROBERTS BUILDING WEST LLC 1255 LINCOLN BLVD $5,562.25 4282010024 ROBERTS BUILDING WEST LLC 1303 LINCOLN BLVD $2,722.50 4290001023 SIEVERS, CHARLES AND CAROL J TRS 718 COLORADO AVE $7,943.00 4291021004 SNYDER, BEVERLIE G AND 1418 LINCOLN BLVD $2,722.50 4282009013 SUSKO FAMILY PTNSHP 1247 LINCOLN BLVD $2,722.50 TOTAL ASSESSMENT 4 -4 aq aRr na IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 18t day of July, 2015. Sarah P. Gorman City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, Sarah P. Gorman, City Clerk of the City of Santa Monica, State of California, do hereby certify that the attached is a true and correct canvass of the ballots received and authorized through the end of the public hearing held on June 23, 2015, for the Colorado Overlay Zone. Ballots Received: In favor: 11 $182,833.08 Against: 5 $ 70,627.88 Total Ballots Received: 16 YES VOTES APN Owner Name Site Address Parcel Assmt' 4291025011 1550 5TH STREET LLC 1554 5TH ST $12,387.00 4291024030 501 COLORADO INVESTORS LLC 501 COLORADO AVE $12,387.00 4291023010 601 COLORADO NMS LLC 609 COLORADO AVE $9,291.00 4290011900 CITY OF SANTA MONICA 402 COLORADO AVE $22,296.60 4291026917 CITY OF SANTA MONICA 215 COLORADO AVE $26,012.70 COMMUNITY CORPORATION OF 4290010024 SANTA MONICA 502 COLORADO AVE $6,771.56 4291025012 LLOYDS BANK CALIF 1555 4TH ST $12,387.00 4291026026 MACERICH SMP LP 395 SANTA MONICA PLACE $9,496.70 4291026023 MACERICH SMP LP LESSOR 315 COLORADO AVE $22,544.34 4290012003 SEARS ROEBUCK AND CO 302 COLORADO AVE $46,657.70 4290010004 STEP UP ON COLORADO LP 520 COLORADO AVE $2,601.48 TOTAL ASSESSMENT $182,833.08 NO VOTES APN Owner Name Site Address Parcel Assmt 4291023009 500 POUNDS OF DOG INC 631 COLORADO AVE $9,291.00 4291022021 CHENOWETH, CHARLOTTE H TRUST 1557 7TH ST $4,645.50 4290015026 FELCOR JPM HOSPITALITY SPE LLC 120 COLORADO AVE $41,702.90 4291028017 PASEO DEL MAR GROUP LLC 1551 OCEAN AVE $12,387.00 4290010003 TMJ MEDICAL PROPERTIES LLC 524 COLORADO AVE $2,601.48 TOTAL ASSESSMENT I $70,627.88 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 15t day of July, 2015. t Sarah P. Gorman City Clerk 2 Reference: Resolution No. 10895 (CCS) Resolution No. 10896 (CCS)