Huntington Beach council OKs scrutiny of business district’s finances
The Huntington Beach City Council on Tuesday voted to launch a review of the Downtown Business Improvement District’s finances.
The council also approved a contract for the widening of Edinger Avenue to improve traffic flow but made no decision about whether to open the Central Library on Sundays.
The vote regarding the Downtown BID authorizes the city Finance Commission to investigate the organization’s financial documents from the past three years.
Councilman Erik Peterson proposed the move, citing concerns that its money is not being handled properly and that an investigation is needed to make sure “everything is aboveboard.”
Steve Daniel, president of the Downtown BID, voiced his support at the meeting for the financial review.
Daniel said an accusation had been made over the past few months that the BID has not been forthcoming about its spending and income, and he wants an investigation of the group’s records so the allegation can be disproved.
Susan Welfringer, the BID manager, said Wednesday that one resident in particular has launched a “crusade” against the group, claiming it has not been transparent about how much money it has.
“There is no hidden money,” Daniel said at the meeting.
A Business Improvement District is a public-private partnership that aims to revitalize a commercial neighborhood. Huntington Beach has three, including the Auto Dealers BID and the Hotel/Motel BID.
The Downtown BID puts on popular events like the Miracle on Main Street holiday celebration and Halloween Fest. The group also regularly hosts Surf City Nights, a free street fair every Tuesday night.
The BID has an annual operating budget of about $450,000, which is mostly funded by downtown businesses, according to Kellee Fritzal, the city’s deputy director of economic development.
Included in the budget is a $155,000 reimbursement from the city for maintenance costs. The Downtown BID takes the helm on maintenance projects, and city public works employees monitor the work, Fritzal said.
Years ago, Peterson said, he and Councilman Mike Posey found that the Downtown BID’s financial reports “lacked detail.” He said the district seemed to have rectified the problem but that the latest report, submitted last year, needs “clarification.”
The Finance Commission has been given 60 days to review the documents, after which the panel will present its findings and any recommendations to the council.
Edinger Avenue widening project
Also Tuesday, the council chose All American Asphalt, a Southern California trucking company, to lead the Edinger Avenue widening project.
In a report, City Manager Fred Wilson said the business had done “acceptable” work on past city projects.
The company submitted a bid of $399,928, the lowest among 10 contractors. The total project cost is estimated at $510,000, the report says.
Currently the city has $423,484 available in the Edinger widening account, but the council previously approved the allocation of $104,000 from the traffic impact fee fund to help cover the rest of the expense.
The project, approved in 2015, calls for widening the southbound side of the street, between Parkside Lane and Beach Boulevard, and lengthening the right-turn lane on Beach and Parkside.
Expansion of library hours
The council also discussed whether to open the Huntington Beach Central Library on Sundays but decided that the matter required further study and would be reconsidered in July.
Stephanie Beverage, director of library services, said at the meeting that opening on Sundays would require the hiring of new staff, but some council members said that would strain city coffers.
Council members Lyn Semeta and Billy O’Connell asked Beverage to see if the library could minimize hours during the week to accommodate the Sunday hours.
O’Connell said working families might not be able to take their kids there during the week, so it would be desirable to scale down weekly hours so these families could enjoy the library on Sundays.
Beverage said the idea wouldn’t work because the staff is too small.
“It stretches our resources thin and makes it hard for us to provide the level of service people expect,” Beverage said.
The council agreed to bring the issue back in July to be considered for the 2018 budget after more research is conducted.
The library had been open on Sundays from 1997 to 2010. The reduction to six days a week came during the Great Recession, when money was tight.
Twitter: @benbrazilpilot
