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 (FY) 2019-20, and to Set a Public Hearing for May 7, 2019 to Levy an Annual Assessment on the Webster Street BIA. (Community Development 256)
Body
To: Honorable Mayor and Members of the City Council
From: Amy Wooldridge, Interim 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 (Area). 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. The Alameda Municipal Code (AMC) requires the City Council to review and approve the report as part of its consideration of the annual assessment on the Area.
BACKGROUND
In 1989, following the Parking and Business Improvement Area Law of 1979 in 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 WABA.
The BIA is funded from fees collected by the City from all businesses within the Area. The pooling of resources improves the Area 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 Area.
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. 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) 2019-20 (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 2018-19, as well as a work plan outlining the proposed use of BIA funds for the next fiscal year, FY 2019-20. This year, the Annual Report also contains detailed financial reports, which WABA is required to submit every other year. The Base Reuse and Community Development Department staff has reviewed the documents and has found them to be complete and reasonable.
WABA’s signature events, which attract thousands of patrons to the District, include Taste of West Alameda, West End Chinese New Year Celebration, the annual “Blues, Brews & BBQ Festival” in collaboration with West End Arts & Entertainment District, the Jam in partnership with the Chamber of Commerce, Halloween on Webster, Santa on Webster, a semi-weekly year-round Farmer’s Market, 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 an Area-wide events calendar, and assists local businesses. These activities are designed to improve the vitality of the Area, to increase sales and sales tax revenues, promote members’ businesses, attract new businesses, and enhance the overall business atmosphere throughout the Area.
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 (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 Consumer Price Index (CPI) increase based on the San Francisco Area CPI. This year’s CPI increase of 4.5%, for example, raises the minimum retail business annual fee by $14.00 to $336.00. Included with this report is the FY 2019-20 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, the City Council must set a public hearing to approve the new assessment. The public hearing is scheduled for May 7, 2019. 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 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 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).
The Base Reuse and Community Development Department staff estimates it costs $4,600 annually to support and to participate in monthly WABA and Downtown Alameda Business Association board meetings and subcommittee meetings. 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 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 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; and adopt a Resolution of Intention to Levy an Annual Assessment on the Webster Street Business Improvement Area of the City of Alameda for FY2019-20, and set a public hearing for May 7, 2019, to levy an annual assessment on the Webster Street Business Improvement Area.
Respectfully submitted,
Debbie Potter, Base Reuse and 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 2018-19
3. Boundaries Map
4. Address List
cc: West Alameda Business Association