Title
Recommendation to Approve the Park Street Business Improvement Area (BIA) Annual Assessment Report; Adoption of Resolution of Intention to Levy an Annual Assessment on the Park Street BIA of the City of Alameda for Fiscal Year 2014-15; and Set a Public Hearing on May 6, 2014 to Levy an Annual Assessment on the Park Street BIA. (Community Development 481001)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Approve the Park Street Business Improvement Area (BIA) Annual Assessment Report; Adopt a Resolution of Intention to Levy an Annual Assessment on the Park Street BIA of the City of Alameda for FY 2014-15; Set a Public Hearing for May 6, 2014 to Levy an Annual Assessment on the Park Street BIA
BACKGROUND
In 1989, following the Parking and Business Improvement Area Law in the California Streets and Highways Code, the City Council established regulations for Business Improvement Areas (BIA) in the Park Street and Webster Street commercial areas. The City's regulations are codified in the Alameda Municipal Code (AMC), Section 6-7. 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. This staff report is for the Park Street BIA, which is managed by the Park Street Business Association (PSBA).
State law and the 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. State law and the AMC also require an annual review by the City Council and a yearly consideration of the assessment. PSBA's Board of Directors, designated as the BIA's advisory board, has prepared the Annual Assessment Report for Fiscal Year (FY) 2014-15 (Exhibit 1). After City Council approval of the report, state law requires a Resolution of Intention be adopted declaring the City's intention to levy assessments for the upcoming fiscal year. The City Council must also set a public hearing to approve the new assessment.
DISCUSSION
Pursuant to PSBA's agreement with the City to manage the BIA, and as required by state law, PSBA has submitted the attached Annual Assessment Report for City Council approval. The report describes in general terms the activities and expenditures that have occurred in the Park Street BIA during the past fiscal year, FY 2013-14, as well as a work plan outlining proposed use of BIA funds for the next fiscal year, FY 2014-15. PSBA's signature events, which attract thousands of patrons to the District, include a Spring Festival, an Art & Wine Faire, and a Classic Car Show. In addition to its annual events, PSBA produces a yearly shopping guide, advertises and promotes events in area magazines and local newspapers, utilizes pre-movie ad campaigns for special events and general promotion of the District at the Alameda Theatre, and assists local businesses. These activities are designed to improve the vitality of the District, to increase sales and sales tax revenues, promote members' businesses, attract new businesses, and increase the overall business atmosphere throughout the District.
As agreed to last year, PSBA will biennially submit detailed financial reports, including tax returns, with the financial documents due with next year's annual report. The BIA is funded from fees collected by the City from all businesses within the geographic zone. The Park Street BIA currently has approximately 420 members, and annual fees vary depending on the type of business and its location. Per the AMC, each year the BIA assessment gets an automatic Consumer Price Index (CPI) increase based on the San Francisco Area CPI. This year's CPI increase of 2.6% raises the minimum retail business annual fee to approximately $286. Included with this report is the FY 2014-15 BIA assessment fee schedule (Exhibit 2), a map of the BIA (Exhibit 3), and a BIA address list (Exhibit 4).
The annual BIA assessment requires a two-step process. First, the City Council must approve the Annual Assessment Report and pass a Resolution of Intent to Levy an Assessment and, second, hold a public hearing to levy the assessment. The public hearing is scheduled for May 6, 2014. At the public hearing, the City Council can modify the Assessment Report or confirm the report as filed. All BIA members receive notification of the public hearing, in addition to instructions on how to protest the BIA renewal, should they wish to do so. Fiscal Year 2014-15 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.
FINANCIAL IMPACT
Business Improvement Areas 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 billings and expenditures, estimated to be approximately $5,000 annually and included in the Business License Program Budget (Fund 001, Program 2450). 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 through continued operation of the business association consistent with A.M.C. Sec. 6-7 et seq.
ENVIRONMENTAL REVIEW
This action involves government fiscal activities which do not involve any 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
Approve the Park Street Business Improvement Area annual assessment report; Adopt a Resolution of Intention to levy an annual assessment on the Park Street Business Improvement Area of the City of Alameda for FY2014-2015; and Set a public hearing for May 6, 2014 to levy an annual assessment on the Park Street Business Improvement Area
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Fred Marsh, Finance Director
Exhibits:
1. PSBA Annual Assessment Report
2. BIA Assessment Fee Schedule FY 2014-15
3. BIA Boundaries Map
4. BIA Address List
cc: Park Street Business Association