Title
Public Hearing to Consider Adoption of Resolution Confirming the Webster Street Business Improvement Area (BIA) Assessment Report for Fiscal Year 2020-21 and Levying an Annual Assessment on the Webster Street BIA. (Community Development 256)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The Alameda City Council will be holding 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.
This fiscal year is ending with the coronavirus pandemic, which has led to an unprecedented hardship for the West Alameda district. In an addendum to its annual report, WABA requested that there not be an annual Consumer Price Index (CPI) adjustment to the assessment fees. In response to that request, at its May 5, 2020 meeting, the City Council adopted a resolution declaring its intention to set the proposed Fiscal Year (FY) 2020-21 BIA levy at the same level as the FY 2019-20 levy.
Staff is requesting that the City Council hold a public hearing and adopt a resolution to confirm the West Alameda BIA’s annual report and to levy the annual BIA assessment, with no annual CPI adjustment, for FY 2020-21.
BACKGROUND
In 1989, the City Council created 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.
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 benefiting 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 expenditures 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.
On May 5, 2020, the City Council approved WABA’s annual assessment report for the next fiscal year (FY 2020-21), with its projected activities, budget (Exhibit 1), and its request for FY 2020-21 that there not be an annual CPI adjustment to the assessment fees.
The City Council also received the BIA Assessment Fee Schedule, BIA Boundary Map, and the BIA Address list (Exhibits 2, 3, and 4). Lastly, the City Council adopted a Resolution of Intention to Levy an Annual Assessment on the Webster Street BIA and set a public hearing for May 19, 2020.
DISCUSSION
Due to the financial hardship presented to its membership by the coronavirus pandemic, WABA has requested that there not be an annual CPI adjustment to the BIA assessment fees for FY 2020-21.
Per Section 607.5(j) of the AMC, each year the BIA assessment has an automatic CPI increase based on the San Francisco CPI. This year’s CPI increase of 2.5% would have raise the minimum retail business annual fee by $8.00, to $344.00. With no CPI adjustment this year, the minimum retail business fee would remain at $336.00.
The annual BIA assessment requires a two-step process. First, the City Council must approve the annual report and pass a Resolution of Intent to Levy an Assessment and, second, hold a public hearing to levy the assessment. City Council adopted the Resolution of Intent to Levy an Assessment at its May 5 meeting. Notice of the May 19, 2020 public hearing was advertised in the Alameda Sun on May 7, 2020. 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 next step to levy the annual assessment is to hold the public hearing, which allows affected parties a final opportunity to comment on the proposed assessment. The FY 2020-21 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 May 5 meeting, it may choose to modify the assessment report-including changes to the proposed assessments-based on the public comments it receives at the May 19, 2020 public hearing. According 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.
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 2020-21.
Staff is requesting that the City Council hold a public hearing and adopt a resolution to confirm the West Alameda BIA’s annual report and to levy the annual BIA assessment, with no annual CPI adjustment, for FY 2020-21. This waiver of the CPI adjustment for FY 2020-21 would not impair any contracts executed by the Webster Street BIA from being paid from the revenues derived from the annual levy of assessments. (AMC 6-7.11(c)).
ALTERNATIVES
• The City Council may decide to levy the annual BIA assessment, with the annual CPI, adjustment for FY 2020.
• The City Council may order changes in other matters provided in the annual report, such as proposed activities to be funded with BIA revenues, per AMC Section 6-7.13(b).
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 billing and expenditures, estimated to be approximately $7,500 annually ($2,250 for WABA and $5,250 for DABA) and included in the Business License Program Budget (Fund 001, Program 2450).
Community Development Department staff estimates it costs $18,700 annually to support and to 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 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 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).
CLIMATE IMPACTS
Not applicable to this report.
RECOMMENDATION
Hold a Public Hearing and adopt a Resolution Confirming the Webster Street BIA Report for FY 2020-21 and Levying an Annual Assessment on the Webster Street BIA.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval of adoption of a Resolution confirming the Webster Street BIA and levying an annual assessment.
The BIA annual assessment does not include a CPI increase this year.
Respectfully submitted,
Debbie Potter, Community Development Director
By:
Eric Fonstein, Development Manager
Financial Impact section reviewed,
Nancy Bronstein, Interim Finance Director
Exhibits:
1. Annual Assessment Report
2. Fee Schedule
3. Boundaries Map
4. Address List
cc: Eric Levitt, City Manager
West Alameda Business Association