Staff is requesting City Council approval to enter into an agreement with American Multi-Cinema, Inc. (AMC) extending their pledge of $150,000 annually toward the maintenance and operation of City-owned or controlled public parking facilities in the downtown Burbank Village for another two years.

On April 14, 1998, the City and AMC entered into the original three-year agreement accepting a pledge by AMC to donate a total of $150,000 annually (less the AMC�s portion of the annual Downtown Public Facility Maintenance Assessment District No. 1 levy) toward the maintenance and operation of City-owned public parking facilities in the Central Business District Downtown Parking Area (commonly known as the Burbank Village and bounded by Magnolia Boulevard/north, Angeleno Avenue/south, Third Street/east and First Street/west), on the condition that the City not establish hourly parking fees in City-owned parking lots or structures (e.g., AMC, MSB, Courthouse, etc.) therein.

In May 2001, the original three-year pledge agreement was extended two more years, retro-effective to March 1, 2001 and expiring February 28, 2003. The City and AMC now wish to again extend the original pledge agreement two more years, retro-effective to March 1, 2003 and expiring February 28, 2005.

Although the donation is conditioned on the City not establishing hourly parking fees in any City-owned or controlled parking lot or structure in the Burbank Village, including the City-owned "AMC" parking structure at 133 E. Orange Grove Avenue, the City does not forfeit its authority to do so; but instead agrees to provide AMC with at least two weeks notice of any formal meeting related thereto, along with notice of any formal action(s) taken 24 hours thereafter. Upon notification that the City will cease to meet the terms of the conditional donation, AMC may likewise determine to cease payment of any additional monthly donations; however, donations already made shall not be refunded in any event.

In return, AMC will continue to pay the City�s Parking Authority equal monthly installments ($12,500) in excess of the existing monthly flat rate ($6.490.95) for its pro rata share of the annual assessment which funds the maintenance and operation of the City-owned "AMC" parking structure at 133 E. Orange Grove Avenue, for two more years, not to exceed $150,000 annually. Pursuant to the pledge agreement, additional funds donated by AMC will go toward funding the maintenance and operation of other City-owned or controlled public parking lots or structures (excluding the AMC structure) in the Burbank Village.

Based on the existing flat rate assessment in effect since FY 1999-2000, of the $150,000 received annually from AMC, $77,891.40 is assessed, and $72,108.60 (the remainder) is donated.

Predicated on the assumption that the existing flat rate assessment for the maintenance and operation of the City-owned "AMC" parking structure will remain unchanged as it has since FY 1999-2000, extending the AMC pledge to donate $150,000 annually for two more years will continue to provide the City�s Parking Authority with $72,108.60 annually ($144,217 total) toward funding the maintenance and operation of other City-owned or controlled public parking lots and structures in the downtown Burbank Village.

Although any increase in the existing assessment will result in a corresponding decrease in the current donation, the annual total ($150,000) would remain unchanged.

Staff is recommending that the City Council adopt the proposed resolution entitled:

Attachment

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