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March 22, 2022
ITEM TITLE
Improvement District Annual Report: Approving the 2022 Annual Report for the Downtown Chula Vista Property-Based Business Improvement District
Report Number: 22-0083
Location: An approximately sixteen -block area along Third Avenue commercial corridor, bounded by E Street to the north, Church Avenue to the east, Landis Avenue to the west , and I Street to the south. The property-based business improvement district also includes one block on F Street where the C ity of Chula Vista central library and police station are located.
Department: Economic Development
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines.
Recommended Action
Adopt a resolution approving the 2022 Annual Report for the Downtown Chula Vista Property -Based Business Improvement District.
SUMMARY
The Downtown Chula Vista Property-Based Business Improvement District (PBID) was organized in 2001 to implement various enhancement ser vices within the Third Avenue Village and Downtown area and is directly administered for the City by the owner’s association known as the Third Avenue Village Association (TAVA). In accordance with Streets and Highways Code 36650, TAVA is required to prepare a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The attached report does not propose any modifications to the boundary of the District, the basis or method of levying assessment, or any changes to property classification and complies with the reporting requirements outlined in the California Streets and Highways Code. The total annual assessments for the 20 22 year are estimated at approximately $460,000. Staff has reviewed the annual report and recommends the City Council approve the attached resolution.
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ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required.
Although environmental review is not required at this time, once the scope of potential project(s) has been defined, environmental review may be required for each project and the appropriate environmental determination will be made.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The Downtown Chula Vista Property -Based Improvement District (PBID) was organized in 2001 to implement various enhancement services within the Third Avenue and Downtown area and is directly administered for the City by the owner’s association known as the Third Avenue Village Association (TAVA).
In accordance with California Streets and Highways Code 36650, TAVA is required to prepare a report for each fiscal year (Attachment 1), except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. TAVA administers funds received from a PBID and receives approximately $460,000 annually in PBID assessment revenue.
In add ition to PBID revenue, TAVA has additional revenue from business-improvement district revenue including b usiness licenses ; grants and programs including events; bringing total revenue for TAVA to approximately $6 21,000. TAVA’s fiscal years coincide with each calendar year. The approved line item budget for TAVA’s Fiscal Year 2022 is attached as Attachment 2.
Prepared in accordance with the State of California Property and Business Improvement District law of 1994, Streets and Highways Code section 36650, the Annual Planning Report represents the sixth year of program operations within the current ten-year term. Pursuant to Streets and Highway Code 36650 -36651, TAVA is required to report the following information:
Section 2: PBID Boundaries
There are no recommended changes to the boundaries of the PBID or in any zones or classification of property or businesses within the district.
Section 3: Assessment Budget
The estimate for improvements, maintenance, and activities includes $621,019 in total expenditures.
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EXPENDITURES 2022 Budget Percentage of Budget
Civil Sidewalks
Personnel: Compensation & Benefits $138,240
District Utilities $15,000
Contracted Third-Party Services $49,632
Maintenance & Landscaping Services $19,870
Total Civil Sidewalks $222,742 35.9%
District Identity & Placemaking $83,400 13.4%
Administration $89,686 14.4%
Outside Contracted Management $192,000 31%
PBID Unallocated $33,191 5.3%
Total Expenditures $621,019 100.0%
REVENUES 2022 Budget Percentage of Budget
PBID Revenue $460,000 74.07%
BID Revenue $20,000 3.22%
Grants $30,000 4.83%
Programs $50,000 8.05%
Carry Forward $61,019 9.83%
Total Assessment District Revenues $621,019 100.0%
Section 4: Method of Financing
Revenues will be collected through the levy of special annual assessments upon the real property for which the services and activities are provided. There are two benefit zones, those parcels that front Third Avenue and those that do not. Since re-establishment of the PBID in June 2016, the TAVA Board of Directors has only increased the assessment rate twice, in 2018 and most recently in 2021. There was a five percent (5%) increase in the assessments for FY 2022.
The method of financing is contained in the attached annual report.
Section 5: Surplus/Deficit Revenue
With the previous fiscal year ending on December 31, 2021, the FY 2021 year -end budget performance showed there was $503,178 in income and $656,347 in expenses. Th e performance deficit is attributed to the lower than expected events revenue, unanticipated legal costs, and previous staff compensation and vacation pay-outs. TAVA estimates that there will be a $153,169 budget deficit from FY 2021 as associated with the PBID & BID assessment expenses but with a carry forward from year-end 2020 of $214,188 and the consolidation of bank accounts TAVA will have a carryforward of approximately $61,019 for FY 2022.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that Mayor Casillas Salas has real property holdings within 500 feet of the boundaries of the property which is the subject of this action.
Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(a)(7), this item presents a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal.
Gov't Code § 87100, et seq.) for the above-identified member.
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
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CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact by adoption of this resolution.
ONGOING FISCAL IMPACT
There is no on-going fiscal impact as a result of adopting this resolution.
ATTACHMENTS
1. Third Avenue Village Association Annual Report - 2022
2. Third Avenue Annual Budget - 2022
3. Maintenance Agreement and Encroachment Permit
Staff Contact: Kevin Pointer, Senior Economic Development Specialist