CITY OF POMONA
COUNCIL REPORT
July 15, 2024
To: Honorable Mayor and Members of the City Council
From: Anita Gutierrez, City Manager
Submitted By: Kirk Pelser, Economic Development Director SUBJECT: ADOPTION OF A RESOLUTION APPROVING THE ANNUAL REPORT FOR THE DOWNTOWN POMONA PROPERTY AND BUSINESS IMPROVEMENT DISTRICT (PBID) AND LEVYING THE ASSESSMENTS FOR FY 2024-2025 ______________________________________________________________________________ RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2024- 102 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING THE DOWNTOWN POMONA PROPERTY AND BUSINESS IMPROVEMENT DISTRICT (PBID) ANNUAL REPORT FOR FISCAL YEAR 2024-25 AND AUTHORIZING THE LEVYING OF THE FY 2024-25 ASSESSMENTS EXECUTIVE SUMMARY:
The City has received the PBID’s 2024-2025 Annual Report levying a total of $1,103,053 on all assessed property owners in the PBID, which includes a 2% increase over the previous year. The City Council is required to adopt the attached resolution (Attachment No. 1) approving the Annual Report and the levy of assessment for the PBID. The City’s portion of the assessment is $220,067.52 allocated between Fund 101, Fund 230, and Fund 216. The Housing Authority’s amount is $27,964.65, which equals approximately 2.53% of the total PBID assessment. The PBID assessment funds will be utilized for enhanced security, street improvements and maintenance, marketing promotions, special events within the District, professional services, staffing and administration. These functions are carried out by the Downtown Property Owners Association (DPOA), which was formed immediately after the PBID was enacted.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
If the City Council adopts the attached resolution approving the Annual Report, approximately $12,419.35 (Fund 249) and $15,545.30 (Fund 131) on Housing Authority properties, and $220,067.52 on City-owned properties comprised of $190,358.90 (VPD) (Fund 230), $9,685.65 (General) (Fund 101), and $20,022.97 (Proposition A) (Fund 216) for FY 2024-25. Funding is available within Funds 101, 131, 216, 249 and 230 FY 2024-25 budgets.
PUBLIC NOTICING REQUIREMENTS:
A public hearing is not required if changes are not proposed to the Management District Plan or when an increase to the assessments does not exceed two percent (2%).
PREVIOUS RELATED ACTION:
On July 17, 2023, the City Council adopted a resolution approving the Annual Report submitted by the DPOA for Fiscal Year 2023-2024 and authorizing the levy of assessments for 2023-2024.
On September 10, 2018, the City Council adopted a resolution approving renewal and expansion of the Downtown Pomona Property and Business Improvement District for a period of 10 years ending 2028, with a 2% maximum annual assessment increase during the term of the District. Each subsequent year, the City Council has taken action to adopt a resolution approving the DPOA’s Annual Report levying the assessments with the 2% annual assessment increase.
BACKGROUND:
The Downtown Pomona Property and Business Improvement District was formed in 2004 for an initial five-year term. The purpose of the District is to provide enhanced services for properties located within the District. In accordance with the Property and Business Improvement Law of 1994 (Streets and Highways Code Sec. 36600, et seq.), property owners were given the opportunity to renew the District for an additional ten-year term prior to its expiration. In July of 2009, the PBID was recertified for a ten-year term with approval by a majority of assessed property owners. In September of 2018, the PBID was again recertified, and modestly expanded, for another ten-year term with approval by a majority of the assessed property owners. The City, Successor Agency, and Housing Authority each owns downtown properties that are subject to the PBID’s assessment. Consequently, the PBID Board composition includes one City Council member, currently District 2 Member, Preciado, and one member of the City Council appointed Vehicle Parking District Board, currently Brian Mundy. Adopting the attached resolution will approve the Annual Report for the PBID levying the total annual assessment of $1,103,053 among all assessed property owners in the PBID.
DISCUSSION:
Following creation of the PBID in 2004, the property owners and merchants in the downtown have benefited from many programs that have proven to be successful for property owners, merchants, residents and customers visiting to the Downtown. Each year, the DPOA establishes a budget that focuses on three main components being security, street improvements and maintenance, marketing and special events.
California Streets and Highways Code, Section 36650, the law governing the PBID requirements and processes, requires that the DPOA prepare an Annual Report for each fiscal year, for which assessments are to be levied and collected for the purpose of paying for the cost of the improvements and activities described in the report. The Annual Report must be consistent with the components outlined in the Management District Plan approved upon recertification of the PBID term. The following items summarize highlights of the Annual Report submitted for Council approval (see Exhibit A to the Resolution for the full Annual Report):
THE ASSESSMENT
The PBID uses common parcel-based factors such as street frontage, land area, and building area to assess special benefits in a commercial/retail business district. Street frontage has been determined to provide approximately 43% of the total assessment, land area approximately 19% of the total assessment, and building area approximately 38% of the total assessment. Annual assessments on property will be $0.068 (6 cents) per square foot per parcel, plus $18.90 per street-frontage foot and $0.21 (20) cents per square foot of building square area.
The summary of the percentage of the assessment funds to be distributed for each program is as follows:
Service Provided Percentage of Assessment Funds
Security 42%
Street Improvements & Maintenance 34%
Marketing, Promotions & Special Events 13%
Professional Services and Administration 11%
Total 100%
Exceptions to the PBID assessment apply to the following uses and properties:
• Properties that have had a land use related to parks and utilities • Properties that have a land use related to religious organizations, clubs, lodges and fraternal organizations • Vacant parking parcels in the PBID
• Properties that are zoned solely for residential or agricultural uses Based on the above factors, the resulting assessments are shown in the PBID Annual Report the District Assessment Roll. The PBID assessment will be collected with regular property taxes. The assessment will appear as a separate line item on annual Property Tax bills prepared by the County of Los Angeles. Prior to August 10th of each year in which the PBID is active, the City Council must approve the Annual Report and authorize the levy of the assessments for the new Fiscal Year and transmittal of the assessments to the County Assessor’s Office.
THE BUDGET
The DPOA Board of Directors approved a budget for FY 2024-25 on June 16, 2024 in the amount of $1,373,307. The primary income source in the proposed budget is the PBID property assessment in the amount of $1,103,053. The balance of the budget is derived from programs and contract services with other entities, such as providing the Vehicle Parking District with parking lot sweeping and landscaping services and providing security services for the Mission Promenade Property. Additional revenues come from sponsorships, donations and service contracts.
The DPOA has submitted a balanced budget, which is shown in the table included in of the Annual Report. The anticipated Revenues will fund next year’s cost of marketing, security, maintenance, special projects and administration including costs for building, equipment, supplies, services, and personnel. Staffing for the DPOA consists of five full-time and one part-time position. Other services to the PBID are provided by consultants.
SERVICES AND IMPROVEMENTS
The following descriptions of on-going and future projects and improvements were provided by the DPOA:
SECURITY
The security budget for the 2024/2025 fiscal year is $573,722. Public safety continues to be the highest priority for the DPOA. The DPOA security plan, including plans for the near future, are defined on pages 3 and 4 of the Annual Report.
MARKETING
The marketing budget for the 2024/2025 fiscal year is $176,937. Aggressive and innovative marketing strategies have resulted in well over 1 million visitors to downtown Pomona each year. Due to the success of the marketing strategy, less funding is needed for marketing in the coming year, allowing the DPOA to allocate more funding for security and maintenance. The Marketing Committee oversees the implementation of marketing initiatives and manages social media outreach and advertising in local and regional publications. The committee is also prints the new Arts Colony Map, the Antique Row visitor’s guides, and the hospitality brochures.
Since the creation of the PBID, the DPOA has appropriated approximately $2 million for marketing Downtown Pomona to prospective clients, businesses, residents, and visitors. Marketing projects include the sponsorship of multiple events including the Christmas Parade, Farmers Market, Art Walk, Antique Street Collector’s Faire, and Pomona Night Out. Some key marketing initiatives include the expanded seasonal banner program and the new trolley bus service which allows visitors to explore the downtown and experience art galleries, shopping, dining, and entertainment. The marketing plan is outlined on page 5 of the Annual Report
MAINTENANCE
The maintenance budget for the 2024/2025 fiscal year is $471,161. The Joint Operations Committee oversees all maintenance operations. The DPOA has five full time maintenance staff whose key duties are to perform power washing, trash clean up, weeding, and other maintenance as needed. The DPOA has implemented a comprehensive power washing program in order to keep all sidewalks and plazas in the downtown clean and free of graffiti. The maintenance staff use state-of-the-art equipment including electric vehicles to service the trash receptacles, and the purchase of a new electric utility vehicle is included in this year’s budget. The maintenance staff will also continue to implement the Storm Water Pollution Prevention Plan (SWPPS) as required by the State of California.
Since the creation of the PBID, the DPOA has spent well over $2 million for cleaning and maintenance of the public areas within the PBID. The addition of a GEM electric car to the maintenance fleet has lowered the cost of maintenance operations and has reduced the DPOA’s carbon footprint. A maintenance report, including plans for future enhancements to the PBID, is included on page 4 of the Annual Report.
Approval of the ANNUAL REPORT
The DPOA Annual Report and budget were approved by the Board of Directors of the DPOA at their meeting held on June 16, 2024. In order to continue to levy the special assessment on the parcels located within the PBID for the next fiscal year, the Pomona City Council must adopt a resolution approving the DPOA Annual Report for fiscal year 2024/2025.
ATTACHMENT(S):
Attachment No. 1-Resolution No. 2024-102 with Exhibit A - Property and Business Improvement District 2024-2025 Annual Report which includes Detailed Budget and Assessment Calculation Tables (District Assessment Roll) Attachment No. 2- Map of PBID Boundary
Approval of Annual Report and Assessment Levy for the PBID for FY 2024-25