HomeMy WebLinkAbout01a. Minutes - 08-14-14 Special MeetingCity Council Special Meeting
Minutes of August 14, 2014 1
MINUTES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
SPECIAL MEETING
AUGUST 14, 2014
The City Council of the City of Downey held a Special Meeting at 4:00 p.m., August 14,
2014, in the Downey Council Chambers, City Hall, 11111 Brookshire Avenue, Downey, CA.
Mayor Vasquez presiding.
PRESENT: Council Members:
Fernando Vasquez Mayor
Luis H. Marquez Mayor Pro Tem (arriv. 4:13 p.m.)
Roger C. Brossmer
Mario A. Guerra
Alex Saab
STAFF: Gilbert Livas, City Manager
Yvette Abich-Garcia, City Attorney
Adria M. Jimenez, CMC, City Clerk
Aldo E. Schindler, Community Development Director
1. PRESENTATION AND DISCUSSION WITH NEW CITY AMERICA REGARDING THE
FORMATION OF AN ASSESSMENT DISTRICT FOR DOWNTOWN DOWNEY: Community
Development.
City Manager Livas introduced Marco Li Mandri of New City America, Inc., noting Mr. Li
Mandri is providing the City Council with an overview on this subject and will answer any
questions from the City Council.
Mr. Li Mandri stated after decades, Downtown Downey is expanding and reinventing itself.
In the past 10 years, the City has spent millions of dollars in public improvements along
Firestone Blvd., and in Downtown; however, the City’s redevelopment funding for capital
improvements is no longer available due to Redevelopment take-away. Office buildings are
becoming increasingly obsolete in Downtowns and are being replaced by market rate housing,
hotels, public spaces and specialty retail. Creation of “lifestyle centers” are trying to mimic what
Downtowns were, and are becoming once again.
Mr. Li Mandri reviewed the strategic location of Downtown Downey noting the biggest traffic
generators closest to Downtown Downey such as the LA Convention Center, Anaheim
Convention Center, Disneyland, and Downtown Downey is geographically located in the center
of Los Angeles County, surrounded by nearly every major freeway. Mr. Li Mandri reviewed the
distinction of where General benefits are derived from, such as property taxes, sales taxes,
hotel taxes, etc., and are used for public safety, public works, infrastructure, etc. General
benefits fund services curb-to-curb.
Special Benefits District (assessment district) are not taxes and can only be established to
fund special benefits; can only be spent within a geographically defined area; are not
considered as “public funds;” and, are usually self-managed. Los Angeles has 35 Special
Benefit Districts; San Diego has 8 property and 18 Business Improvement Districts; San
Francisco has 11, including TID; Oakland has 9; and there are approximately 300-400 in
California.
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Minutes of August 14, 2014 2
Special benefits are derived from assessments levied on benefitting property owners and
have the following features: they fund activities and improvements curb to property line; must be
voted upon by property owners and are determined by a mail ballot procedure of the “weighted
property owners;” they must be articulated by engineer’s report; and, all benefiting properties
pay, no one, public or private or tax-exempt is exempted from assessments if they are deriving
a benefit. Special Benefits cannot use assessed valuation to determine assessments;
assessments must be proportional; the City must articulate general benefits in order to
determine special benefits; assessments cannot replace general benefits funded by the City’s
general fund; and, proposition makes no provision for a petition to trigger the balloting, nor a
term for the special benefits district.
Mr. Li Mandri showed examples of Special Benefits in Little Italy San Diego, such as: regular
sidewalk and gutter sweeping; enhanced trash can emptying; sidewalk steam cleaning;
beautification in the public rights-of-way; parking management; ambassadors; directional
signage; and public space development and maintenance. Special Benefits can also include
District identity for events, branding, banners, website, public relations, social media, historic
markers and brochures.
Mr. Li Mandri informed the City Council that Management of the District typically includes an
Executive Director or management company, insurance, office related supplies and equipment,
legal, and accounting.
Mr. Li Mandri reviewed the process for creation of a Special Benefits District for Downtown
Downey: 1) create a Steering Committee of Downtown property owners to support concept and
to lead the effort; 2) set study boundaries; 3) send mail survey to all property owners, encourage
response; 4) map responses in color; 5) determine if we have a certain threshold of support by
looking at linear frontage, lot size, building square footage as percentages of support; 6) if
support exists, work with City staff to craft an ordinance for a new Downey Community Benefit
District. The new ordinance can be used for: Downtown property owners; auto dealers; hotel
owners; residential improvements; industrial area security; and other services considered a
special benefit.
Mr. Li Mandi advised that the City should consider creating a new enabling ordinance since
current “PBID Law” has some major flaws such as: maximum term is five years; it is called a
“Business Improvement Act” and the Downtown is mixed used and tax exempted properties;
has unreasonably high petition threshold to trigger balloting; and allows for tax exempt parcels
to opt out of payment while the state constitution does not do so. There are over 20 Charter
Cities in California that have adopted a Community Benefits District enabling ordinances.
Mr. Li Mandi reviewed the formation process and a sample Management organizational
chart from the Little Italy Association. He also reviewed the income received from the Little Italy
Community Benefits Districts and answered Council Member questions.
2. PUBLIC COMMENT
Mayor Vasquez opened up Public Comment.
Dee Bacus, Chamber of Commerce, stated that the Chamber of Commerce is in support
of the Community Benefits District.
Having no one else come forward, Mayor Vasquez closed Public Comment.
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Minutes of August 14, 2014 3
3. ADJOURNED at 5:14 p.m.
_____________________________ ______________________________
ADRIA M. JIMENEZ, CMC FERNANDO VASQUEZ
City Clerk Mayor