Title
Recommendation to Approve the Webster Street Business Improvement Area (BIA) Annual Assessment Report;
Adoption of Resolution of Intention to Levy an Annual Assessment on the Webster Street BIA of the City of Alameda for Fiscal Year (FY) 2018-19 and Set a Public Hearing for May 1, 2018 to Levy an Annual Assessment on the Webster Street BIA. (Community Development 256000)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Recommendation to Approve the Webster Street Business Improvement Area (BIA) Annual Assessment Report; Adoption of Resolution of Intention to Levy an Annual Assessment on the Webster Street BIA of the City of Alameda for Fiscal Year (FY) 2018-19; and Set a Public Hearing for May 1, 2018 to Levy an Annual Assessment on the Webster Street BIA
BACKGROUND
In 1989, following the adoption of the Parking and Business Improvement Area Law of 1979 in section 36500 et seq. of the California Streets and Highways Code, the 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 the West Alameda Business Association (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 Alameda Municipal Code (AMC) sections 6-7.7, 6-7.11, and 6-7.16 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 require 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 Fiscal Year (FY) 2018-19 (Exhibit 1). The report describes, in general terms, the activities and expenditures that have occurred in the Webster Street BIA during the current Fiscal Year, FY 2017-18, as well as a work plan outlining proposed use of BIA funds for the next Fiscal Year, FY 2018-19. WABA’s signature events, which attract hundreds of patrons to the District, include: the Jam in partnership with the Chamber of Commerce, the Third Annual “Blues, Brews, & BBQ” in collaboration with West End Arts & Entertainment, Taste of West Alameda, a semi-weekly year-round Farmer’s Market, Halloween on Webster, and Santa on Webster. This fiscal year, WABA also initiated two new events: West End Chinese New Year Celebration and “Hot August Nights” at Alameda Landing.
In addition to its events, WABA advertises special events through print media in area newspapers, distributes marketing literature, creates and distributes a District-wide events calendar, 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 enhance the overall business atmosphere throughout the District.
This year, the Annual Report also contains a five-year strategic plan for the district, which the WABA board approved and presented at its annual membership meeting on October 25, 2017. WABA has started to implement the strategic plan this fiscal year, with the creation of a new vision statement and logo, a new marketing slogan (“Explore West Alameda”), and a refreshed website. Finally, WABA increased the size of its board of directors from seven to nine members to recruit new board members and gain broader representation within the district.
The Webster Street BIA currently has approximately 218 members, and annual fees vary depending on the type of business. The BIA consists of a single 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 AMC section 6-7.5, each year the BIA assessment has an automatic Consumer Price Index (CPI) increase based on the San Francisco Area CPI. This year’s CPI increase of 2.9%, for example, raises the minimum retail business annual fee by $9.00 to $332. Included with this report is the FY 2018-19 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. Second, City Council must set a public hearing to approve the new assessment. The public hearing is scheduled for May 1, 2018 and will take place at City Council Chambers, Alameda City Hall, 2263 Santa Clara Avenue, third floor, at or after 7:00 p.m. At the public hearing, the City Council can modify the Assessment Report or confirm the report as filed. 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 2018-19 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
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 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 (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. 6-7.1 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 Webster Street Business Improvement Area Annual Assessment Report; adopt a Resolution of Intention to Levy an Annual Assessment on the Webster Street Business Improvement Area of the City of Alameda for FY2018-19; and set a public hearing for May 1, 2018, to levy an annual assessment on the Webster Street Business Improvement Area.
Respectfully submitted,
Debbie Potter, Community Development Director
By,
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Edwin Gato, Acting Finance Director
Exhibits:
1. WABA’s Annual Assessment Report
2. BIA Assessment Fee Schedule FY 2018-19
3. BIA Boundaries Map
4. BIA Address List
cc: West Alameda Business Association