Downtown Huntington business district finances could be reviewed
The Huntington Beach City Council on Tuesday is expected to decide whether to launch a review of the Downtown Business Improvement District’s finances.
Council members will also consider approving a contract for the widening of Edinger Avenue to improve traffic flow on the busy street and discuss the possibility of opening the Central Library on Sundays.
Councilman Erik Peterson has asked the council to request an investigation into the finances of the Downtown BID from the last three years, according to a document submitted to the council.
A Business Improvement District (BID) 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.
Peterson said Friday that he has reviewed the financial report that the Downtown BID is required to provide to the council annually and found that it wasn’t as extensive as he would have liked. That, coupled with a few complaints he’s received from concerned residents regarding the BID’s spending, led him to call for an “oversight review.”
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 Downtown BID has an annual operating budget of about $450,000, which is mostly funded by the downtown businesses, said 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.
Peterson said Downtown BID members were receptive to an audit.
If the item is authorized, the BID would have to turn over any financial statements and reports to the Huntington Beach Finance Commission for review.
Edinger Avenue widening project
The council could choose a business to helm the Edinger Avenue widening project.
In a report, City Manager Fred Wilson is recommending that the council award a contract to All American Asphalt, a Southern California trucking company, because of its “acceptable” work on past city projects.
The company submitted a bid of $399,928, the lowest among 10 potential 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 Wilson has asked the council to approve the allocation of $104,000 from the traffic impact fee fund to help pay for the rest of the project.
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.
Central Library hours expansion
The council will also continue discussing during a study session whether to open the Huntington Beach Central Library on Sundays, an idea that has been under consideration since former council member Dave Sullivan proposed it Nov. 21.
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.
City staff will present their findings about the fiscal ramifications of such a move.
The council was set to consider the matter in January, but Peterson expressed concerns regarding cost, including pensions for new hires.
A city manager’s report estimated that the cost of adding Sunday hours could vary from $70,000 to $260,000 annually, depending on staffing and maintenance demands.
Twitter: @benbrazilpilot
