Title
Public Hearing to Consider Adoption of Resolution Confirming the Webster Street Business Improvement Area (BIA) Assessment Report for Fiscal Year (FY) 2019-20 and Levying an Annual Assessment on the Webster Street BIA. (Community Development 256)
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To: Honorable Mayor and Members of the City Council
From: Eric Levitt, City Manager
EXECUTIVE SUMMARY
The Alameda City Council will hold a public hearing to levy an annual assessment on the businesses within the Webster Street Business Improvement Area (BIA), which is managed on behalf of the City of Alameda (City) by the West Alameda Business Association (WABA). The public hearing allows business owners in the BIA an opportunity to comment on or protest the proposed assessment.
BACKGROUND
In 1989, the City Council created Business Improvement Areas (BIAs) in the Park Street and Webster Street commercial areas. These BIAs were established in accordance with the Parking and Business Improvement Area Law in the California Streets and Highways Code. This report is for the Webster Street BIA, which is managed by WABA. Revenues from the BIA directly benefit business owners in specified geographic zones through the general promotion of business activities and public events, beautification and ambiance, construction and maintenance of parking facilities, and special projects benefitting that business area.
The BIA is funded from fees collected by the City from all businesses within the geographic zone. Other than an automatic annual San Francisco Area Consumer Price Index (CPI) increase, authorized by the original Ordinance 2435, the City has not increased assessments since inception of the BIA. This year’s CPI increase of 4.5% raises the minimum retail business annual fee by $14.00 from $322.00 to a total of $336.00.
On April 16, 2019, the City Council approved WABA’s annual assessment report for the next fiscal year (FY 2019-20), with its projected activities, budget, and financial documents (Exhibit 1) and received the BIA Assessment Fee Schedule, BIA Boundary Map, and the BIA Address list (Exhibits 2, 3, and 4). The City Council also adopted a Resolution of Intention to Levy an Annual Assessment on the Webster Street BIA and set a public hearing for May 7, 2019.
DISCUSSION
In developing and adopting its FY 2019-20 proposed activities and budget for the BIA, WABA held meetings with Webster Street business owners. The meetings were announced through business association invitations, newsletters, and/or personal contact.
The annual BIA assessment requires a two-step process. The City Council must first approve the annual report and pass a Resolution of Intent to Levy an Assessment, and second, hold a public hearing to levy the assessment. The City Council adopted the Resolution of Intent to Levy an Assessment at its April 16, 2019 meeting. Notice of the May 7, 2019 public hearing was advertised in the Alameda Sun on April 25, 2019. All BIA members were mailed notification of the public hearing, in addition to instructions on how to protest the BIA renewal, should they wish to do so.
The public hearing allows affected parties a final opportunity to comment on the proposed assessment. The FY 2019-20 assessments cannot be levied if protests are received by the owners of businesses in the area, which will pay fifty percent (50%) or more of the assessment. While the City Council approved the assessment report at its April 16 meeting, it may choose to modify the assessment report-including changes to the proposed activities-based on the public comments it receives at the May 7 public hearing. After the hearing, the City Council may adopt a Resolution confirming the report as originally filed or as changed. Adoption of the Resolution will constitute the levy of the assessment for FY 2019-20.
FINANCIAL IMPACT
BIA billing is done concurrently with Business License billing. Revenues from the BIA directly benefit business owners in specified geographic and benefit zones through the promotion of business and similar eligible activities. The primary financial impact to the General Fund will be in the form of Finance Department staff costs to process BIA billing and expenditures, estimated to be approximately $6,500 annually ($1,856 for WABA and $4,644 for the Downtown Alameda Business Association (DABA) and included in the Business License Program Budget (Fund 001, Program 2450).
The Community Development Department staff estimates it costs $4,600 annually to support and participate in monthly WABA and DABA board meetings and subcommittee meetings. This staffing cost has been absorbed within existing staff workloads to provide indirect financial support to the Area.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The annual renewal of the BIA supports the goals of the Economic Development Strategic Plan (EDSP) through continued operation of the business association consistent with Alameda Municipal Code Sec. 6-7 et seq.
EDSP Strategy 4 states: “The City of Alameda’s role is to continue to support existing shopping and dining districts by working with private property owners and business associations to improve retail spaces and the public realm.”
ENVIRONMENTAL REVIEW
This action involves government fiscal activities which do not include a commitment to any project which may result in a potentially significant physical impact on the environment and is exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines section 15378(b)(4).
RECOMMENDATION
Hold a public hearing and adopt a Resolution confirming the Webster Street BIA Report for FY 2019-20 and levying an annual assessment on the Webster Street BIA.
Respectfully submitted,
Debbie Potter, Community Development Director
By:
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Annual Assessment Report
2. Assessment Fee Schedule FY 2019-20
3. Boundaries Map
4. Address List
cc: West Alameda Business Association