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March 7, 2023
ITEM TITLE
Improvement District Annual Report: Approving the 2023 Annual Report for the Downtown Chula Vista Property-Based Improvement District
Report Number: 23-0058
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 City 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 Californ ia Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Action
Adopt a resolution approving the 2023 Annual Report for the Downtown Chula Vista Property-Based Improvement District.
SUMMARY
The Downtown Chula Vista Property-Based Business Improvement District (PBID) was organized in 2001 to implement various enhancement services 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 202 3 year are estimated at approximately $486,000. Staff has reviewed the annual report and recommends the City Council approve the attached resolution.
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ENVIRONMENTAL REVIEW
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Gu idelines Section 15060(c)(3), no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
N/A
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 $486,000 annually in PBID assessment revenue.
In addition to PBID revenue, TAVA has additional revenue from business -improvement district revenue including business licenses; grants and programs including events; bringing tota l revenue for TAVA to approximately $813,000. TAVA’s fiscal years coincide with each calendar year.
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 seventh 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 $812,524.26 in total expenditures.
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EXPENDITURES 2023 Budget Percentage of Budget
Civil Sidewalks
Personnel: Compensation & Benefits $150,000
District Utilities $30,000
Contracted Third-Party Services $50,000
Maintenance & Landscaping Services $28,500
Total Civil Sidewalks $258,500 32%
District Identity & Placemaking $140,100 17%
Administration
Administration Expenses $83,610
Outside Contracted Management $192,000
Total Administration $275,610 34%
PBID Unallocated $22,614.26 3%
Grant-Related Expenditures $115,700 14%
Total Expenditures $812,524.26 100.0%
REVENUES 2023 Budget Percentage of Budget
PBID Revenue $485,591.64 60%
BID Revenue $16,000 2%
Grants $115,700 14%
Programs $72,000 9%
Carry Forward $123,232.62 15%
Total Assessment District Revenues $812,524.26 100.0%
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 no increase in the assessments for FY 2023.
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, 2022, the FY 2022 audit and tax return have yet to be completed. At the time TAVA submitted the Annual Planning Report to the City, TAVA income for all programs and operations for FY 20 21/22 was $880,770 and expenses at $823,704. TAVA estimates that there will be a $57,066 revenue carry forward from FY 2022 as associated with the PBID and BID assessment expenses, which is part of the $132,232 carry forward it accounts for in the FY 2023 Budget Projection. The remaining portion of the FY 2023 carry forward comes from a $50,000 County Grant, $16,166 from Programs and Debit accounts.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under Califor nia Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code P a g e | 4
§87100, et seq.). 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.
CURRENT-YEAR FISCAL IMPACT
There is no current fiscal impact by adoption of this resolution.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this resolution.
ATTACHMENTS
1. Third Avenue Village Association Annual Report – 2023
2. Maintenance Agreement and Encroachment Permit
Staff Contact: Kevin Pointer, Principal Economic Development Specialist Eric Crockett, Deputy City Manager