Title
Recommendation to Approve the Webster Street Business Improvement Area (BIA) Annual Assessment Report; and
Adoption of Resolution of Intention to Levy an Annual Assessment on the Webster Street BIA for Fiscal Year 2023-24, and Set a Public Hearing for May 2, 2023 to Levy an Annual Assessment on the Webster Street BIA. (Community Development 10061810)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The Webster Street Business Improvement Area (BIA)-which is managed by the West Alameda Business Association (WABA)-is funded from an assessment collected by the City of Alameda (City) from all businesses within that business district. Every year, WABA presents a report to the City Council on the activities and expenditures that have occurred during the past fiscal year. The annual report also provides recommendations on the proposed expenditure of BIA revenues for the next fiscal year (FY).
For the past three years during the pandemic and the unprecedented challenges it placed on local businesses, WABA requested that there not be an annual Consumer Price Index (CPI) adjustment to the assessment fees. As we are now emerging from the public health and economic crises, WABA supports resuming an annual CPI adjustment, which is 4.9 percent for this FY.
Staff is requesting that City Council adopt a resolution setting a public hearing on May 2, 2023 to levy the annual BIA assessment for FY 2023-24.
BACKGROUND
In 1989, following the Parking and Business Improvement Area Law of 1979 in the California Streets and Highways Code, City Council established regulations for Business Improvement Areas (BIAs) in the Park Street and Webster Street commercial areas. This staff report is for the Webster Street BIA, which is managed by WABA.
The BIA is funded from fees collected by the City from all businesses within the business district. The pooling of resources improves the business district as a whole and directly benefits business owners through the general promotion of business activities and public events, beautification and ambiance, construction and maintenance of parking facilities, and special projects benefitting the business area.
State law and the Alameda Municipal Code (AMC) require the City Council to work in collaboration with a BIA advisory board. The board prepares an annual report and provides recommendations to the City Council on the proposed expenditure of BIA revenues for its geographic area. The AMC also requires an annual review by the City Council and a yearly consideration of the assessment.
DISCUSSION
WABA’s Board of Directors, designated as the BIA’s advisory board, has prepared the Annual Assessment Report for FY 2023-24 (Exhibit 1). The report describes, in general terms, the activities and expenditures that occurred in the Webster Street BIA during the current fiscal year, FY 2022-23, as well as a work plan outlining proposed use of BIA funds for the next fiscal year, FY 2023-24. Community Development Department staff reviewed the report and found it to be complete and reasonable.
The Coronavirus and the BIA assessment. The pandemic forced the cancellation of WABA’s signature events such as Taste of West Alameda, West End Chinese New Year Celebration, and the annual “Blues, Brews, & BBQ” in collaboration with the West End Arts & Entertainment. Instead, WABA opened the Healing Garden/Al Fresco Dining Park, located at the Taylor Avenue/Webster Street lot, and has extended that lease through December 2023. Over 60 community events were held at this venue, many of which supported local non-profit organizations. For example, a regular feature has been the Alameda Food Bank Players, a theatrical group formed to support that Alameda Food Bank. WABA also initiated a new Summer Series with Sit and Shop, Taste of the West End, and Fleetwood Macrame events scheduled respectively in June, July, and August. WABA has maintained a ready-reserve, emergency fund in excess of $75,000 to cover unexpected expenses and lost revenue.
The Webster Street BIA currently has approximately 215 members, and annual fees vary depending on the type of business. The BIA consists of a single zone (Zone A). The assessment is calculated based on gross receipts. There is a minimum and a maximum assessment. A minimum assessment was established to ensure that there would be sufficient funds to administer the BIA. The maximum assessment acknowledges that there are a few business types (gas stations, fast food restaurants, etc.) whose gross receipts are much higher than other retailers and that a cap would be appropriate for those businesses. The Webster Street BIA also has an assessment surcharge for retailers larger than 30,000 square feet (e.g. Target and Safeway).
Per the AMC, each year the BIA assessment has an automatic CPI increase based on the San Francisco Area CPI. This year’s CPI of 4.9 percent raises the minimum retail business annual fee by $16.00 to $352.00. The full FY 2023-24 BIA assessment fee schedule is shown in Exhibit 2.
Also included with this report is a map of the BIA (Exhibit 3), and a BIA address list (Exhibit 4).
The annual BIA assessment requires a two-step process. First, City Council must approve the Annual Assessment Report and pass a Resolution of Intent to Levy an Assessment. Second, City Council must set a public hearing to approve the new assessment. The public hearing is scheduled for May 2, 2023. At the public hearing, City Council can modify the Assessment Report or confirm the report as filed. At the public hearing, the Council may also decide not to include the annual CPI adjustment to the assessment fees. According to the AMC, Section 6-7.13(b):
During the course or upon the conclusion of the public hearing, the City Council may order changes in any of the matters provided in the report, including changes in the proposed assessments.
All BIA members will receive notification of the public hearing, in addition to instructions on how to protest the BIA renewal, should they wish to do so. FY 2023-24 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 proposed assessment.
ALTERNATIVES
• Approve the Webster Street BIA annual report, adopt a Resolution of Intention to Levy an Annual Assessment, and set a public hearing for May 2, 2022 to levy an annual assessment for the Webster Street BIA.
• Postpone the public hearing until a future City Council.
• Decline to adopt the Resolution of Intention to Levy an Annual Assessment
FINANCIAL IMPACT
BIA billing and collection is done concurrently with annual 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 is in the form of Finance Department staff costs to process BIA billings and expenditures, estimated to be approximately $6,500 annually ($1,856 for WABA and $4,644 for DABA) and included in the Business License Program Budget (Org 10024056).
The Community Development Department staff works closely with WABA, attending monthly board meetings and subcommittee meetings, estimated to be $2,300 annually (Org 24161823). This staffing cost has been absorbed within existing staff workloads to provide indirect financial support to the business districts.
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 AMC. 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 does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACTS
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Approve the Webster Street Business Improvement Area Annual Assessment Report; and Adopt a Resolution of Intention to Levy an Annual Assessment on the Webster Street Business Improvement Area (BIA) for Fiscal Year 2023-24, and Set a Public Hearing for May 2, 2023 to Levy an Annual Assessment on the Webster Street BIA.
Respectfully submitted,
Lisa Maxwell, Community Development Director
By
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Margaret L. O’Brien, Finance Director
Exhibits:
1. WABA’s Annual Assessment Report
2. BIA Assessment Fee Schedule FY 2023-24
3. BIA Boundaries Map
4. BIA Address List
cc: West Alameda Business Association