City Council
November 1, 2022
AGENDA REPORT
TO: Edward D. Reiskin FROM: Alexa Jeffress
City Administrator Director, Economic &
Workforce Development
Department
SUBJECT: Rockridge BID Annual Report and
Intention to Levy Fiscal Year 2023-
2024 Assessment
DATE: October 10, 2022
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Adopt A Resolution: 1) Approving The Annual Report Of The Rockridge Business Improvement District Advisory Board; 2) Declaring The Intention To Levy And Collect An Annual Assessment For Fiscal Year 2023-2024 For The Rockridge Business Improvement District; And 3) Scheduling A Public Hearing For December 6, 2022.
EXECUTIVE SUMMARY
State enabling legislation requires that merchant-based business improvement districts (BIDs) receive City Council approval before levying each fiscal year’s assessment. Adoption of the recommended Resolution of Intention to levy an assessment and scheduling of a related Public Hearing will enable the Rockridge BID to collect its fiscal year (FY) 2023-2024 assessment. The attached resolution also approves the Rockridge BID’s annual report to the City of Oakland (City).
If the proposed assessment is approved, the Rockridge BID will generate an estimated $220,000 of special assessment revenues in FY 2023-2024. Funds will be used to pay for special benefit services outlined in the Rockridge BID Management Plan (Plan) on file with the Office of the City Clerk and the annual report and budget, prepared and submitted by the Rockridge District Association, the Rockridge BID’s City Council-appointed advisory board (see Exhibit A to the Resolution of Intention). Key services include, but are not limited to, enhanced cleaning and public safety services, including private security services, district beautification, including installation and maintenance of decorative banners and benches; special events such as the Rockridge Rock-N-Stroll live music events, and marketing and promotion activities such as internet advertising and maintenance of a district website.
Oct 20, 2022
Edward D. Reiskin, City Administrator
Subject: Rockridge BID Annual Report and Intention to Levy Fiscal Year 2023-2024 Assessment
Date: October 10, 2022 Page 2
City Council
November 1, 2022
BACKGROUND / LEGISLATIVE HISTORY
1. BID formation and purpose:
Section 36500 et seq of California Streets and Highway Code provide for the formation of business and property-based assessment districts. Pursuant to this legislation, on November 9, 1999, the Oakland City Council approved Resolution No. 75323 C.M.S., which initiated a City of Oakland Neighborhood Business Improvement District Program to provide technical assistance to qualified stakeholder groups to explore the feasibility of forming a BID within their respective commercial neighborhood(s). Pursuant to these efforts, the City Council adopted Ordinance No. 12301 C.M.S. on November 28, 2000 (subsequently amended by Ordinance No. 13261 C.M.S., October 21, 2014) to establish the Rockridge BID. On December 7, 2021, the City Council authorized the prior year’s annual report and levy pursuant to Resolution 88938 CMS.
Other BIDs (also known as Community Benefit Districts, or CBDs) successfully formed within the City of Oakland include Montclair (established 2001), Lakeshore/Lake Park (established 2002, renewed in 2022), Temescal/Telegraph Avenue (established 2004, renewed in 2014), Laurel (established 2005, renewed in 2015), Koreatown/Northgate (established 2007, renewed in 2017), Lake Merritt/Uptown (established 2008, renewed 2018), Downtown Oakland (established 2008, renewed 2018), Jack London (established 2013, renewed in 2018), and Chinatown (established 2021). BIDs are generally recognized as supporting the goals of comprehensive economic development strategies in various cities throughout the United States.
Revenues generated by BIDs are used to provide a variety of special benefit improvements and services beyond those already provided by the local municipality. Examples of BID-funded special benefits include, but are not limited to, enhanced maintenance, public safety, and marketing and promotion services within affected districts. Enhanced services of this type are intended to support increased sales and business tax revenues as well as increased job opportunities and economic vitality of the BID’s affected commercial neighborhoods.
2. BID annual report requirements:
Pursuant to California Streets and Highways Code, Section 36533(a), BIDs are required to provide an annual report for each fiscal year for which assessments are to be levied and collected. The report may propose changes to the boundaries of the district, the basis and method of levying the assessment, and any changes in the classification of businesses.
The Rockridge BID FY 2022-2023 annual report and budget is included as Exhibit A to the attached Resolution of Intention. It does not propose any changes to the boundaries of the district nor to the method and basis of levying the assessment approved by the City Council for FY 2022-2023.
3. BID annual assessment approval process:
California Streets and Highways Code Division 18 (commencing with section 36500) also requires that merchant-based BIDs receive City Council’s approval before levying each fiscal year’s assessment. Therefore, to enable the Rockridge BID to collect its FY 2023-2024 Edward D. Reiskin, City Administrator
Subject: Rockridge BID Annual Report and Intention to Levy Fiscal Year 2023-2024 Assessment
Date: October 10, 2022 Page 3
City Council
November 1, 2022
assessment, City Council would need to adopt the attached Resolution of Intention to levy and schedule a related Public Hearing. The Public Hearing must take place no less than 10 days after the adoption of the attached Resolution of Intention. Following the public input portion of the hearing, City Council would then take final action on the proposed assessment.
The Rockridge BID encompasses approximately 360 businesses located in and around the Rockridge commercial area and estimates an upcoming annual budget of approximately $285,000, which includes $220,000 of projected assessments to be collected in FY 2023-2024 and $65,000 in the Rockridge BID’s reserves, as indicated in Exhibit A to the attached Resolution of Intention. For the FY 2023-2024 assessment, a sub-classification of businesses that earn annual gross receipts of $25,000 or less is proposed to be created with a reduced fee for that assessment year of $60 (instead of $120). Such sub-classification is proposed to be temporarily created to reduce the number and expense of processing hardship partial fee waiver requests, and the reduced fee amount would not apply to future assessment years unless renewed in the annual assessment resolution for that year.
The billing period for the proposed assessment will be January 1, 2023, through December 31, 2023; however, services to be paid for by the above billing and collections will be provided on a March 2023 through February 2024 fiscal year basis, per the annual report and budget attached as Exhibit A to the Resolution of Intention.
As mentioned, if the City Council approves the proposed FY 2023-2024 assessment, the Rockridge BID will generate an estimated $220,000 of special assessment revenues, which is equal to the amount projected in FY 2022-2023. The assessment is based on two variables which include business gross receipts and business type. If approved, the assessments for FY 2023-2024 will be collected and expended in accordance with the Plan on file with the Office of the City Clerk and the district’s annual report and budget (attached as Exhibit A to the Resolution of Intention), submitted by the Rockridge District Association, the Rockridge BID’s City Council-appointed advisory board.
ANALYSIS AND POLICY ALTERNATIVES
There is no anticipated adverse impact related to adoption of the attached Resolution of Intention; however, there would be a negative impact to the Rockridge BID if the attached Resolution of Intention is not adopted, since adoption of the attached Resolution of Intention is a condition precedent to final approval of the Rockridge BID FY 2023-2024 assessment levy.
Without a new infusion of assessment funds in the upcoming fiscal year, special benefit services paid for by the assessments would be curtailed or terminated in FY 2023-2024. However, if City Council approves the attached Resolution of Intention, then a related public hearing will be scheduled for December 6, 2022, after which City Council may decide whether to give final approval to the Rockridge BID FY 2023-2024 assessment levy. If the levy is approved, then special benefit services in the district will continue uninterrupted in FY 2023-2024.
Staff is currently unaware of any policy alternatives or alternate funding sources that could replace the estimated $220,000 of Rockridge BID assessment revenues during fiscal year 2023- 2024, if the levy were not approved by City Council.
Edward D. Reiskin, City Administrator
Subject: Rockridge BID Annual Report and Intention to Levy Fiscal Year 2023-2024 Assessment
Date: October 10, 2022 Page 4
City Council
November 1, 2022
Therefore, because the Rockridge BID is self-funded and self-administered and because assessment revenues generated by the district pay for special benefit services which constructively support the image, safety and economic development of the related neighborhood commercial district at no additional cost to the City, staff recommends that City Council adopt the attached Resolution of Intention to levy the Rockridge BID FY 2023-2024 assessment.
Levying this assessment for special benefits services advances the Citywide Priorities of housing, economic and cultural security and vibrant, sustainable infrastructure. BIDs provide additional resources (e.g., public safety, marketing, and cleanliness) that help make commercial corridors vibrant places that are consistently active, better serving the needs of Oakland’s business owners and residents.
FISCAL IMPACT
No direct fiscal impact or cost is anticipated to the City from this item. The Rockridge BID is a self-funded, self-administered entity. The proposed special assessment district will pay its own operating and administrative costs, including costs for assessment collections and disbursements. If the levy is approved, the City of Oakland will conduct a special billing to collect the assessment and will remit the amount collected (minus the City’s costs of collection) to the Rockridge District Association, the District's designated non-profit administrator. Until disbursed, Rockridge BID assessments will be held in a special trust fund established by the Finance Department on behalf of the district in Miscellaneous Trusts Fund (7999), Economic Development Organization (85411), Pass Thru Assessments Account (24224), DP850 Administrative Project (1000019), Rockridge BID Program (RBID).
PUBLIC OUTREACH / INTEREST
Rockridge BID representatives performed outreach necessary to secure advisory board consensus sufficient to generate the district’s required annual report and proposed FY 2023- 2024 budget, attached as Exhibit A to the Resolution of Intention.
COORDINATION
The Budget Bureau and Office of the City Attorney were consulted in the preparation of this report and resolution.
SUSTAINABLE OPPORTUNITIES
Economic: Rockridge BID assessments will fund activities which are intended to support the increase of sales and business tax revenues, as well as increased job opportunities and on- going economic development of the affected commercial district.
Edward D. Reiskin, City Administrator
Subject: Rockridge BID Annual Report and Intention to Levy Fiscal Year 2023-2024 Assessment
Date: October 10, 2022 Page 5
City Council
November 1, 2022
Environmental: Special assessment BID revenues will enable the Rockridge BID to continue efforts to strengthen and beautify the physical image of its commercial neighborhood by providing special benefit services such as litter pickup, sidewalk cleaning, landscaping, holiday decorations, seasonal private security and minor capital improvements.
Race & Equity: BIDs enhance the ability of all business or property owners who pay into the district to democratically participate in shaping their shared environment through public safety, marketing and beautification efforts. As such, the Rockridge BID stakeholders themselves administer and decide upon the use of special assessment revenues generated by the district.
This model supports community self-empowerment which, in turn, supports social equity.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Adopt A Resolution: 1) Approving The Annual Report Of The Rockridge Business Improvement District Advisory Board; 2) Declaring The Intention To Levy And Collect An Annual Assessment For Fiscal Year 2023-2024 For The Rockridge Business Improvement District; And 3) Scheduling A Public Hearing For December 6, 2022.
For questions regarding this report, please contact Eric Simundza, Urban Economic Analyst IV, at 510-238-6249.
Respectfully submitted,
ALEXA JEFFRESS
Director, Economic and Workforce
Development
Reviewed by:
Micah Hinkle, Deputy Director/Business
Development Manager
Prepared by:
Eric Simundza, Urban Economic Analyst IV
Business Development