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HomeMy WebLinkAboutCC Min 1991-04-01 . '. ~ 3-25-91/4-1-91 I ORAL COMMUNICATIONS Mayor Wilson declared Oral Communications open. Ms. Norma strohmeier, Seal Beach, expressed her objection to recent remarks in the newspaper of Mr. Wilson, Rossmoor center, directed towards three members of the Council, and said she would boycott the Center until an apology is forthcoming. She offered her personal suggestions for a city motto relating to claims and lawsuits. Ms. Beverly Casares, Seal Beach, took exception to the Assistant City Attorney's opinion with regard to a Brown Act violation. Ms. Casares requested copies of all lawsuits filed in the last three years including the parties, court location and case number, and like information for cases settled. She requested that citizens be made aware of every warrant, to whom it is paid, what it is for, and questioned an expenditure for employee appreciation. Ms. Casares claimed that every department has a charge card, expense account, and most likely petty cash, said she would anticipate those types of accounts and expenditures will be cut, and department head salaries reduced. She cited the need for a city manager that is accountable, responsible, and who will take control, and said problems within City departments will be cured with the whistle blower ordinance. The Acting city Manager confirmed that an expenditure had been made for employee recognition of Police Department personnel, and noted that funds for employee recognition have been contained in the budget for approximately four years. There being no further comments, Mayor Wilson declared Oral Communications closed. I ADJOURNMENT By consensus of the Council, the meeting was adjourned until April 1, 1991 at 7:00 p.m. for a workshop with members of the Chamber of Commerce. It was the order of the Chair, with consent of the council, to adjourn the meeting at 11:25 p.m. erk and ex-o f Seal Beach clerk of the Approved: , ~-"') ~. 9/~~A..A) Ma or Attest: , I Seal Beach, California April 1, 1991 The City Council of the City of Seal Beach met in regular adjourned session at 7:00 p.m. with Mayor Wilson calling the meeting to order with the Salute to the Flag. ROLL CALL Present: Mayor Wilson Councilmembers Forsythe, Hastings, Hunt, Laszlo 4-1-91 Absent: None Also present: Mr. Archibold, Acting city Manager Mrs. Yeo, City Clerk WORKSHOP - CITY COUNCIL/CHAMBER OF COMMERCE Chamber President, Mr. Dennis Pollman, said the intent of I the Chamber is to promote a healthy business climate, keeping in mind the importance to the City of revenues generated through business licenses and sales tax. Mr. Pollman stated their presentation would focus on the results of the Chamber survey of business licensees as of February 1st, a request for a special business license assessment for fiscal year 1991/92, a fund to be created for a market study to be administered by the Chamber and/or City, and dissolution of an Ad Hoc Committee to be replaced by a Council appointed Business Improvement Committee. He reported the willingness of the Chamber to work with the City to improve businesses, increase sales tax, and improve service to the residents. Mr. Bruce Walter, Multi Media .. Marketing Corporation, Seal Beach, stated the survey questionnaire was mailed to each local and out-of-town business licensee, the returned questionnaires then tabulated, discarding those surveys that were only partially complete. Mr. Walter said there are two types of marketing research, qualitative and quantitative, the second being the most important, the qualitative survey, the subject of this workshop, being an attitudinal survey. He said the three objectives of the survey was to 1) identify the current business community attitude and confidence levels regarding their specific business; 2) identify the business community's perception of the City administration's attitude I toward the business community; and 3) determine the worthiness of a professional, indepth market study that would focus on retail growth and development, along with ways to increase sales tax revenue. Mr. Walter reviewed the results of the survey in detail which, in part, showed that of the respondents: seven percent were restaurants/food establishments, fifty-five percent retail, thirty-eight percent service/professional; fifty-nine percent collected sales tax; set forth the number of years in business; thirty-seven percent were Chamber members; sixty-six percent indicated decreased retail sales in the past three years; forty percent believe the number of retail outlets should be increased, thirty-six percent responded the number should remain the same, twenty-four percent were undecided; forty-seven percent cited community identity as the greatest area of concern versus forty-two percent citing residential growth; customer parking, common area lighting, landscaping, directional signing, public transportation, and traffic signals ranked as areas of low concern; department store(s), major discount store, hotel(s), restaurants, and specialty soft good stores were cited as types of businesses that would help the retail community; sixty-seven percent supported a one-time I assessment to fund a comprehensive marketing study, fifty percent supporting a $300 assessment, twenty-five percent , each a $100 or $50 assessment; thirteen percent indicated city administration does everything possible to accommodate retail growth and expansion, eleven percent indicated administration understands and works closely with the retail community to enhance increased business, three percent indicated administration aggressively seeks a new retail business base, seven percent indicated City administration provides incentives for new retail growth and expansion, forty-seven percent cited administration as only caring I I I I ' 4-1-91 about preserving the status quo and not interested in retail expansion, thirty-six percent indicated the City having little or no concern for the health of the retail environment, and forty-seven percent indicated City administration as more often than not a hindrance in accommodating retail growth. Mr. Walter continued, reporting fifty-five percent of the respondents cited city administration as having no desire for retail growth, twenty-four percent cited administration as desirous of retail growth, and twenty-one percent had no response; with regard to specific issues regarding retail growth/expansion, in each case a higher percentage indicated City administration had not addressed adequate on-site parking, adequate off-site parking, adequate vehicular traffic flow/movement, positive attitude of wanting retail growth, known as being friendly, helpful and supportive of the business community, displays a desire to market the City to new retail growth opportunities, development of a meaningful plan of retail growth, and quick, positive response to expansion and/or new retail growth; with regard to the direction of retail sales in the next two to five years, fifty-nine percent felt they would increase, twenty percent felt they would decrease, and twenty-one percent had no response; sixty-seven percent anticipated expanding their business, nine percent anticipated disbanding their business, three percent responded remain the same, and twenty-one percent had no response; fifty-five percent felt business as a whole would expand, twenty-four percent that business would decrease. City services were rated: Police Department, sixty-six percent, excellent, twenty-six percent good, three percent poor; Fire Department, sixty-seven percent excellent, twenty-five percent good; Business License, thirty-four percent excellent, forty-three percent good, twelve percent poor; Public Works, twenty-eight percent excellent, fifty-one percent good, eleven percent poor; community Development, twelve percent excellent, thirty-eight percent good, twenty-nine percent poor; Planning Commission, five percent excellent, thirty-four percent good, thirty-nine percent poor; city council, eight percent excellent, thirty-two percent good, thirty-nine percent poor; the percent of business done with Seal Beach and Rossmoor residents was reported as thirty-seven percen~ was from zero to twenty-five percent, eighteen percent was from twenty-six to fifty percent, fourteen percent was from fifty-one to seventy-five percent, and thirty-two was from seventy-six to one hundred percent; and with regard to perceptions of current city administration attitudes regarding growth, forty-eight percent responded unprepared to handle or accommodate growth, thirty-nine percent responded prepared to handle or accommodate growth, and thirteen percent were undecided. In response to inquiries of the Council, the Chamber representatives reported there were one hundred twenty-five respondents to the more than seven hundred surveys mailed to the business licensees, that there was no means to segregate the responses of Seal Beach from Los Alamitos, or by specific shopping area since that type of identification information was not requested, that this is considered a retail business trading area with Chamber representation of the entire area. It was noted that the survey was developed and funded by the Chamber and that only one-third of the responses indicated Chamber membership. Mr. Pollman reported Chamber dues for a retail business are $150 per year, $280 for banks, and $30 for an associate membership,' that the Chamber is a non-profit organization, and at fiscal year end excess monies are placed in a surplus fund or used 4-1-91 in some manner to benefit the business community, also that efforts of the membership, as was the case with the survey, are on a volunteer basis. He stated that once completed, the marketing survey would be available to each member of the Chamber and the business community, as well as expertise to assist businesses in utilizing the information. He added I that even though the Chamber represents all areas of the business community, support is also afforded the efforts of the merchants association. Mr. Leonard wilson, Rossmoor Center Marketing Director, stated the request of the city is that the Chamber be allowed to assess a one-time fee on the business license to fund a marketing study to improve the retail base and from which a determination can be made if the city is in a position to expand that base to improve retail sales. He said there could be an effort to draw customers from outside the community, that it is known that many residents spend the majority of their income outside the community for goods and services, however at this point the goods and services.. that could be provided have not been identified, nor has the possibility of doing so. With the upcoming census data, he suggested this to be a preferable time to conduct the study, the census information allowing identification of population by areas of the City as well as surrounding communities, that information must be obtained as to income levels, population and student age groups, and a traffic study. It was suggested to Mr. Wilson that a traffic study was done in the City in approximately 1989, ~hat student information could be obtained from the Los Alamitos and Huntington Beach High School Districts, and that Leisure World could provide I statistics with regard to their residents. Members of the - - Council expressed concern with the city being involved in making an assessment on the business licenses to fund the marketing study, either the collection or enforcement of same, and that one could anticipate opposition to such assessment, it was also noted that given the varying types local businesses and level of annual intake, it is likely a graduated scale of assessment or exemptions would seem reasonable. Mr. Wilson referred to between $35,000 to $45,000 as the anticipated cost of the study. Mr. Pollman explained that the amount of assessment could basically be determined by dividing the cost of the study by the seven . hundred fifty-three business license holders plus the one hundred twenty-eight identified businesses that do not have a license, and pointed out that sixty-seven percent of the respondents were willing to pay some amount of assessment. Mr. Walter said he would probably suggest a graduated payment plan based upon the size of the business, and offered that the goal is to find a means for business to be conducted in a more efficient manner and to attract more customers to the place of business. It was noted that the city conducted a downtown revitalization study in recent years and that there was an appointed retail sales committee, however the recommendations have yet to be implemented. There were inquiries as to whether the tourist I or local resident would be targeted, whether parking in the downtown area is perceived to be a problem, and if the opinions of the Main street businesses have been obtained. It was suggested by a member of the Council that the desire is to lure business from other areas to Seal Beach, and the Chamber is proposing to collect sufficient information to eventually make recommendations to the Council to attract businesses to this community. Mr. Wilson pointed out that the Leisure World bus was an effort to provide shopping opportunities locally in the Rossmoor Center as opposed to having those customers frequent the malls in other 4-1-91 I communities via the public transportation system. The Chamber representatives stressed the need for community identity, promotion of the location of the community and the goods available, and likewise the importance of encouraging local residents to shop in their community, where in turn the sales tax revenue helps to pay for city services. It was pointed out that the City is not being asked for funding, however is requested to establish a committee to consist of Council appointees and Chamber members to administer the program, also that the marketing study, once completed, will benefit all businesses and the community alike. A member of the Council offered that if this proposal increased the retail sales tax return to the City by two percent that would more than cover the cost of the marketing study, and any percent over that would substantially increase the sales tax received from the state. Mr. Walter described the study as a comprehensive study with numerous guidelines for use by the business community to implement improvements. Mr. Bill Ashcraft was introduced by Councilmember Hastings as the former manager of the Farmers and Merchants Bank, and current president of the Belmont Shore Business Association. Mr. Ashcraft made reference to the prior discussion, asked what is foreseen as the City's roll in this process, and what effect the marketing study would have on existing businesses. He suggested that the commercial property owners would realize the greatest benefit of the survey and a successful business, therefore rather than the City being involved in imposing an assessment, it could be placed to a vote of the property owners, possibly accomplished through a bonding effort, to carry out the will of the business community. Mr. Ashcraft offered that whomever the business community is going to serve should be identified first, noting that to solicit customers from outside the community in turn poses problems with traffic, parking, air quality, etc., and questioned if there are sufficient residents to support what currently exists. He said he felt the downtown area offered a number of positives yet there may be negatives from a customers viewpoint, and stated there is a fine line between a vibrant business district and an area that is prime for redevelopment. Mr. Ashcraft said he felt government has a roll to assist people through the various, components of the community, which are the business owners, commercial property owners, and the residents/ customers, each group being dependant upon the other, suggesting they be org~nized to reach consensus agreement, rather than the City taking the lead. He acknowledged that malls have an advantage over areas such as Seal Beach and Belmont Shore in terms of beautification and product, yet there is now evidence of a gang element which may serve as a benefit by returning customers to the street retail businesses. He suggested that an organization of the community components would have the ability to plan, protect, and promote the business community, one means being through promotional activities such as sidewalk sales, parades, craft fairs, etc., also to develop a network where the residents/ customers can communicate their needs in the business community, uniform hours for convenient shopping another means, as well as landscaping improvements, lighting in the trees, steam cleaning of sidewalks, window displays, etc. ,to promote a positive atmosphere. with regard to a financial means to accomplish business community needs, he stated Belmont Shore has an assessment district through the business license renewal where fifty percent of the business improvement fund is returned to the Business Association to use as they determine, yet there is a means of I I 4-1-91 accountability to the city as to how those monies are used. Mr. Ashcraft suggested that meetings be held with the various components of the business community prior to levying assessments, possibly a pilot program in one area. Mr. Ashcraft explained that in Belmont Shore the property owners became involved as a result of concerns of the residents with regard to plans for the business district, I parking, the number of restaurants, etc., also the potential to increase their rental return and property values, and at the time there appeared to be factions that could possibly block any improvements to their properties. He said he did not feel businesses in the Shore realize maximum productivity, that he felt an assessment is good provided that there is a mandate from those persons paying the fee to go forward, and the activities or level of success in the Shore would not have been possible without those monies. In response to members of the audience, Mr. Ashcraft said he did not believe the businesses realize increased business activity on a recurring basis from the various promotionals, the retail stores claim events such as the Christmas parade hurt their business and benefit only the restaurants and bars, yet a survey showed sixty-two percent strongly supported the event, also that the initial monies to fund the marketing study, etc., was from a parking assessment fund. Mr. Pollman noted his past involvement with the Belmont Shore committee, and reported the parking district was established as a result of complaints by businesses to installation of parking meters, a portion of those monies came back to the business district and was seed money to purchase land for parking, the initial assessment district approved by only fifty-three percent of the businesses yet I it received Council approval so that the area would grow. Mr. Walter concluded that the comments of Mr. Ashcraft, with the exception of the segmented approach, would be taken as an endorsement for the requested study as the questions posed would be answered within the framework of that study, the organization is in place, the Chamber of Commerce, and that there is need to address the total of Seal Beach in the study. Mr. Pollman expressed appreciation to the Council for meeting with their organization, stated the Chamber is willing to work with the City, that they have the expertise, and are willing to help and serve the community. Councilmember Forsythe asked if consideration should be given to calling a meeting of the business community to ascertain if they are amenable to this program and proposed assessment, and stated she did not want to move forward and again not have recommendations implemented. Mr. Pollman reported all Chamber members were contacted this date, yet only the fifteen member board attended the meeting. He pointed out that the request is for a one-time assessment for a marketing survey, yet there may be a need the following year to assess an amount to accomplish certain goals, that determination to be made by the committee. Councilmember Hastings requested that the Acting City Manager provide her with the names of all commercial I property owners within the City, stating ,these persons must be involved in any discussion and decisions. Mr. Wilson described the different types of leases that landlords have with their tenants, some based upon a percentage of volume, some not. A member of the audience advised that some cities are now imposing a fee on the owners of commercial properties, citing the fact that landlords are in business, making money, therefore require a special type of business license. Mr. Wilson requested direction as to a method to proceed and work with the City on this issue, and asked that the Ad Hoc Retail Committee be dissolved and a new committee 4-1-91 I be appointed as requested by the Chamber. Mr. Ashcraft clarified that he did not favor assessing businesses for a marketing study, rather an assessment for things that directly benefit them at the present time, yet if businesses could be attracted to the area that would increase the property and rental value to the owner, there would be a positive benefit derived by the property owner and the city. councilman Hunt suggested that the City move forward as rapidly as possible with the proposal made by the Chamber. Councilmember Forsythe recommended the Chamber obtain a copy of the downtown revitalization plan. Councilman Laszlo said he could support the proposal if it is supported by the business community, however he did have concern with the amount of assessment on a small business. I' ORAL COMMUNICATIONS ,Mayor Wilson declared Oral Communications open. Mr. Charles Antos, 17th Street, said the proposal appears to be similar to a Business Improvement Area previously considered for the downtown area, protested by certain businesses, and was not approved. He asked who would selected the consultant, offered that the larger Shopping areas in the community have the most to gain by a marketing study, therefore if they were to pool their resources they could have the study conducted, and the information could most likely then be translatable to other businesses, also that traffic studies and census data can be obtained from City Hall. Mr. Antos reported forwarding three letters to the Chamber of Commerce requesting their charter and by-laws, to which the response was that those documents were only available to Chamber members, therefore suggested the City could have a problem doing business with such an organization. There being no further comments, Mayor Wilson declared Oral Communications closed. ADJ.pURNMENT It was the consensus of the Council to adjourn the meeting until April 8th at 6:15 p.m. for a Closed Session if determined necessary. The meeting was adjourned by order of the Chair, with consent of the Council, at 9:06 p.m. of the I Approved: cff~) ~_ ~/~) Q Mayor Attest: ~ {J.