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
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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).
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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
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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
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Reference:
Resolution No. 10895
(CCS)
Resolution No. 10896
(CCS)