City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00729 4/2/2024 Public Hearing Item 12.
Public Hearing and (Pass for Publication) Ordinance on Renewal of the River District Property and Business Improvement District No. 2024-02
File ID: 2024-00729
Location: District 4, Represented by Councilmember Valenzuela Recommendation: 1) Conduct a public hearing and upon conclusion, pass a Motion approving the proposed assessment and proposed activities and improvements for the River District Property and Business Improvement District (District) renewal, and directing the City Clerk to: a) tabulate the assessment ballots submitted and not withdrawn before the hearing is closed; and b) bring back the matter as a consent item on April 9, 2024, with the tabulation results, for Council’s adoption of the District renewal; 2) pass for publication an Ordinance to renew the River District Property and Business Improvement District No. 2024-02; and 3) bypass the Law and Legislation Committee for review of the renewal ordinance.
Contact: Susanne Tam, Development Project Manager, [email protected],(916) 808-7535; Sheri Smith, Special Districts Manager, [email protected], (916) 808-7204, Department of Finance
Presenter: Susanne Tam, Development Project Manager, [email protected], (916) 808-7535, Department of Finance
1-Description/Analysis
2-Schedule of Proceedings
3-Proposed Assessment and Improvements
4-District Map
5-Renewal Ordinance
6-Exhibit A: Management District Plan
7-Exhibit B: District Budget and Parcel Assessment
Description/Analysis
Issue Detail: The River District Property and Business Improvement District (District) is a benefit assessment district intended to improve the River District area, shown on Attachment 4. The current District is set to expire on December 31, 2024, so the property owners within the District have proposed to renew the District for a new ten-year term. The District will provide safety and maintenance, planning, advocacy and communications services and activities over and above those
Attachments:
File ID: 2024-00729 4/2/2024 Public Hearing Item 12.
provided by the City. Property owners representing 55% of the affected parcels within the District submitted petitions to the City requesting renewal of the District for a ten-year term that would run through December 31, 2034.
On February 13, 2024, Council adopted a Resolution of Intention (Resolution No. 2024-044), directing staff to mail assessment ballots and notices of public hearing to the owners of real property within the proposed District and setting April 2, 2024, as the date for a public hearing on the proposed District and assessment. Public Hearing notices were mailed to all affected property owners on February 15, 2024.
At the conclusion of the hearing, staff recommends that Council approve the proposed assessment and proposed activities and improvements shown as Attachment 3, and direct the City Clerk to tabulate the assessment ballots submitted and not withdrawn to determine whether there is a majority protest against the assessment (i.e., a majority protest exists if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in its favor, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot was submitted).
Staff will report the results of the tabulation at the Council meeting on April 9, 2024. If there is no majority protest from ballots submitted and not withdrawn, staff will recommend that the Council adopt a resolution, declaring the results of the ballot proceeding and renewing the District for a new ten-year term.
In addition, staff is bringing forward an uncodified ordinance (Attachment 5) to renew the District because, if passed, the Taxpayer Protection and Government Accountability Act (which is on the ballot for this November) requires an ordinance for adoption of all such assessments dating back to 2022.
Policy Considerations: The recommended actions in this report are in accordance with the California Property and Business Improvement District (PBID) Law of 1994 (California Streets and Highways Code section 36600 et seq.) and City Code Chapter 3.44.
Economic Impacts: Not applicable.
Environmental Considerations: Renewal of the District creates a funding mechanism for maintenance and other services and does not have a significant impact on the environment.
Accordingly, renewal of the District does not in itself constitute a project under CEQA and is therefore exempt from review pursuant to CEQA Guidelines section 15378(b)(4).
Sustainability: Not applicable.
Commission/Committee Action: Staff is recommending that Council bypass the Law and
File ID: 2024-00729 4/2/2024 Public Hearing Item 12.
Legislative Committee for review of the District renewal ordinance. The renewal ordinance is uncodified and is being brought forward because of the proposed Taxpayer Protection and Government Accountability Act, which is on the ballot for November 2024.
Rationale for Recommendation: The public hearing is a required step in the renewal process and its completion will allow the District renewal proceedings to continue. District improvements and activities will enhance advocacy, maintenance and safety services above what the City currently provides. This includes focused security patrols, litter abatement, advocacy for capital improvement projects, and other activities to convey a positive image to the area, resulting in increased economic activity and revenue.
The River District PBID Owners Association (Association), which is a nonprofit entity that serves as the governing body of the District, serves as a key partner to the City’s economic development efforts, particularly in the area of enhancing a clean and safe environment, addressing code enforcement issues and providing advocacy for the District. In addition, the Association has the potential to serve as a critical partner in identifying both business needs and opportunities, as it will in many instances be the first entity contacted by local businesses.
Financial Considerations: Financing is provided by the levy of assessments upon properties that benefit from the improvements and activities provided. There are approximately 530 assessed parcels in the PBID service area. The total District assessment budget for the first year of the renewal will be approximately $751,570. If the District is renewed, the City will continue to participate as a property owner. City-owned property will have a total first year annual assessment of approximately $115,123. Funding for the City property assessment will be supported by the City’s general fund.
Future assessment rates will be subject to an increase of no more than 5% annually and are based on the actual annual increase in costs.
Local Business Enterprise (LBE): Not applicable.
SCHEDULE OF PROCEEDINGS
RIVER DISTRICT
PROPERTY AND BUSINESS IMPROVEMENT DISTRICT #2024-02
November 14, 2023 City Council - Authorization of City Manager Signature to Vote for City-Owned Property Inclusion in Renewal
December 6, 2023 Petition Drive Kick-off
February 13, 2024 City Council
Resolution of Intention to Renew
April 2, 2024 City Council
• Public Hearing on Renewal of the River District
PBID
• Pass for Publication Ordinance Renewing the
River District PBID
April 9, 2024 City Council
• Ballot Results for Renewal
• Adopt Resolution of Renewal
• Adopt Ordinance Renewing the River District PBID
August 1, 2024 Assessment Roll to County
ATTACHMENT 3
Proposed Assessment Rate & Activities & Improvements
Purpose: The purpose of the River District PBID is to provide activities and improvements which constitute and convey a special benefit to assessed parcels. The River District PBID will provide improvements and services intended to make the District safer, cleaner, and aid in the attraction of new jobs, businesses, and development projects for properties in the District, include the following: but are not limited to, the following: (1) daily private security patrols, (2) litter abatement, (3) on-call graffiti removal, (4) public right-of-way weed abatement, (5) advocate for public improvement projects, and (6) banners, lighting, and other entryway enhancements.
Budget: The River District PBID annual assessment budget for the initial year of its ten (10) year renewal term is anticipated to be $751,570. The annual budget will be subject to an increase in assessment rates up to, but no more than, five percent (5%) per year. The assessment funds will be supplemented by non-assessment funds (such as grants and event income), so that the total budget for the initial renewal year is estimated at $782,497.
Cost: The assessment rate (cost to the parcel owner) for parcels that do not have condominiums is based on lot size per acreage. The initial annual rate to each parcel is shown in the table below. Residential condominiums will be assessed based on the total lot size per acreage divided by the number of units on the parcel; commercial condominiums will be assessed based on the portion of the lot size the commercial condominium occupies. Assessment rates may be subject to an increase of no more than five percent (5%) per year. Parcels zoned exclusively for singlefamily residential purposes shall not be assessed. The single-family residential parcels are on the perimeter of the district and do not receive any services.
Assessment Rate
Zone 1
Assessment Rate
Zone 2
$1,018.06 per acre $244.33 per acre
·|þ}160
§¨¦5
23rd St
E St
H St
G St
J St
F St
Front St
N C St
12th St
I St
N 16th St
18th St
N B St
24th St
North Sac Mhp
Northgate Blvd
Del Paso Blvd
21st St
D St
D St
7th St
UnnamedRd
13th St
Railyards Blvd
Richards Blvd
10th St
5th St
C St
16th St
2nd St
19th St
11th St
N 12th St
22nd St
8th St
25th St
14th St
I Street Brg
11th St
28th St
C St
3rd St
Cannery Ave
Globe Ave
20th St
A St
6th St
9th St
Lochbrae Rd
15th St
B
ercut
Dr
Chill Ave
Pipevine
St
N6thSt
Dos Rios St
N 7th St
Township Nine Ave
N 5th St
Vine St
Telegrapher Ave
N
6th
S
S
t
e
q
u
o
i
a
Pacific
Blvd
RiverineWay
N 10th St
Jibboom St
Vine St
Commerce Cir
SunbeamAve
N 3rd St
Bannon St
Lathrop Way
Railroad Dr
Summit Tunnel Ave
/
0 1,000 2,000 4,000
Feet
ZONE 1
ZONE 2
Map Date: 3/25/2024
The River District Property and Business Improvement District No. 2024-02 ORDINANCE NO.
Adopted by the Sacramento City Council
Ordinance Renewing River District Property and Business Improvement District No. 2024-02
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:
SECTION 1. The River District Property and Business Improvement District No. 2024-02 (District) was initially established in 1999 under the Property and Business Improvement District Law of 1994 (California Streets and Highways Code section 36600 et seq.) (referred to as the “PBID Law”) by City Council as the Capitol Station Property and Business Improvement District. The District was renamed and renewed for a tenyear term in 2014, which will expire on December 31, 2024.
SECTION 2. The property owners within the boundaries of the District have submitted petitions to the City to renew the District for a ten-year term running from January 1, 2025 through December 31, 2034. Included with the petitions was a summary of the Management District Plan (MDP) that describes the proposed assessment to be levied on properties within the District to pay for the improvements and activities specified in the MDP. Accordingly, renewal of the District by the City Council is sought in accordance with Streets and Highways Code sections 36630 and 36660.
SECTION 3. During the public hearing on April 2, 2024, Council: (1) heard all protests against the proposed assessment from property owners within the District; and (2) accepted testimony from all interested persons, whether or not they own property within the District.
SECTION 4. The proposed improvements and activities for the District, which constitute a special benefit, include the following: (1) daily private security patrols, (2) litter abatement, (3) on-call graffiti removal, (4) public right-of-way weed abatement, (5) advocacy for public improvement projects, and (6) banners, lighting, and other entryway enhancements. The proposed improvements and activities are intended to make the District safer, cleaner, and aid in the attraction of new jobs, businesses, and development projects for properties in the District. All improvements and activities are defined within the MDP. The MDP is attached hereto as Exhibit A and is on file with the Infrastructure Finance Division of the Department of Finance, designated by the City Clerk to be repository of documents associated with special districts.
SECTION 5. The total amount of the proposed assessments for the first year of the District’s renewal term is approximately $751,570. Future assessment rates will be subject to an increase of up to 5% annually and no more than the actual annual increase in costs. Exhibit B, attached hereto and incorporated herein, includes a breakdown of the assessment per parcel.
SECTION 6. The assessments for the renewed District will be levied on property within the District.
SECTION 7. Bonds will not be issued for the District.
SECTION 8. A description of the exterior boundaries of the proposed District is contained in the MDP, attached hereto and incorporated herein.
SECTION 9. The property owners who signed the petitions collectively will pay more than 50% of the proposed assessments. Accordingly, on February 13, 2024, City Council adopted Resolution No. 2024-0044 entitled “Resolution of Intention to Renew the River District Property and Business Improvement District No. 2024-02” (Resolution of Intention).
SECTION 10. On February 15, 2024, the City Clerk mailed to each property owner of record of each parcel within the District’s boundaries a notice concerning the public hearing on the renewal of the District and the proposed assessments, pursuant to Streets and Highways Code section 36623, Government Code section 53753, and City Code Chapter 3.44. Each notice included the information about the assessment and the ballot procedure. A public hearing on renewal of the District was held on April 2, 2024 at 5:00 pm in the City Council chambers, New City Hall, 915 “I” Street (first floor), Sacramento, California.
SECTION 11. During the public hearing on April 2, 2024, the City Council heard and received all objections and protests to the renewal of the District and the proposed assessment. The City Clerk has received, been given custody of, and tabulated the assessment ballots returned and not withdrawn by the owners of property located within the District. The Clerk’s Certificate of Ballot Procedure Results for the Mailed-Ballot, Property Owner Majority Protest Proceeding indicates that, of the assessment ballots signed and returned to the City Clerk, and not withdrawn, prior to the close of the public hearing on April 2, 2024, and weighting the ballots for each property according to the proportional assessment obligation of each property, TBA % of the assessment ballots were in favor of the renewal of the District and levy of the assessments proposed, and TBA % were opposed. Thus, the number of assessment ballots submitted and not withdrawn in opposition to the proposed assessment did not exceed the number of ballots submitted and not withdrawn in favor of the proposed assessment. Therefore, a majority protest against the proposed assessment does not exist.
SECTION 12. Properties within the District will be subject to any amendments to the PBID Law.
SECTION 13. The improvements and activities to be conferred on properties in the District will be funded by the levy of the assessments. The revenue from the levy of assessments shall not be used: to provide activities that directly benefit properties outside the District; to provide improvements or activities outside the District; or for any purpose other than the purposes specified in this ordinance, the Resolution of Intention, the Resolution of Renewal, and the MDP. Notwithstanding the foregoing, improvements and activities that must be provided outside the District boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the District.
SECTION 14. The properties within the boundaries of the District will be benefited by the improvements and activities to be funded by the proposed assessments and property within the District will receive a special benefit.
SECTION 15. The MDP for the District quantifies the amount of special benefit conferred on the properties within the District as 97.64% of the improvements and activities provided in the District, with 2.7% of the improvements and activities constituting a general benefit to those outside of the District. The total amount of all special benefits to be conferred on the properties in the District for Fiscal Year 2024/25 is $751,570.
SECTION 16. The Resolution of Intention stated the City Council’s finding that the MDP satisfied all requirements of Streets and Highways Code section 36622. The City Council hereby approves the MDP (which includes the Engineer’s Report) on the proposal to levy an annual assessment on properties within the District.
SECTION 17. The City Council hereby renews the District for a ten-year term beginning January 1, 2025, with an expiration date of December 31, 2034, for the area generally shown in the attached MDP in Exhibit A.
SECTION 18. The City Council hereby confirms the assessment diagram and assessment roll to be recorded along with a notice in the Sacramento County Recorder’s Office pursuant to Streets and Highways Code section 36627 following adoption of the resolution of renewal, and the City Council levies the assessments detailed in the MDP on the properties within the District to fund the improvements and activities described in the MDP. In accordance with Streets and Highways Code section 36631 and the MDP, the assessments to fund the
improvements and activities for the District will be collected at the same time and in the same manner as ad valorem property taxes and will have the same lien priorities and penalties for delinquent payment.
SECTION 19. The City Council hereby approves the Fiscal Year 2024/25 annual budget and parcel assessments for the District as set forth in Exhibit B attached hereto and incorporated herein.
SECTION 20. The City Manager or City Manager’s designee is hereby directed to take all necessary actions to complete the renewal of the District and levy the assessments.
SECTION 21. The City Clerk is directed to record, in the Sacramento County Recorder’s Office, a notice and assessment diagram as required by Streets and Highways Code section 36627.
SECTION 22. Upon any inconsistency between this Ordinance and the Resolution of Renewal, the Resolution of Renewal shall govern.
Table of Contents:
Exhibit A: Management District Plan
Exhibit B: District Budget and Parcel Assessment
i
ii
............................................................................................................................................. 1 ....................................................................................................................................... 3 ...........................................................................................................................4 .................................................................................................................................... 5 .................................................................................................................... 6 ....................................................................................................................... 10 ................................................................................................................................. 11 ..................................................................................................................... 12 ....................................................................... 30 ............................................................................................................................ 31 ........................................................................... 44 ................. 62
............................................................................................................................ 63
Safety &
Maintenance,
$390,816.47, 52%
Planning,
Advocacy, &
Communications,
$270,565.25 , 36%
Administration/Reserve,
$90,188.42 , 12%
Initial Assessment Budget: $751,570.14
$390,816.47 $270,565.25 $90,188.42 $751,570.14
$410,357.29 $284,093.51 $94,697.84 $789,148.64
$430,875.16 $298,298.19 $99,432.73 $828,606.08
$452,418.92 $313,213.10 $104,404.37 $870,036.39
$475,039.86 $328,873.75 $109,624.59 $913,538.20
$498,791.85 $345,317.44 $115,105.82 $959,215.11
$523,731.45 $362,583.31 $120,861.11 $1,007,175.87
$549,918.02 $380,712.48 $126,904.16 $1,057,534.66
$577,413.92 $399,748.10 $133,249.37 $1,110,411.39
$606,284.62 $419,735.51 $139,911.84 $1,165,931.97
$4,915,647.56 $3,403,140.64 $1,134,380.25 $9,453,168.45
1 Cal. Const., art. XIII D, §4(a) 2
3 Id, §2(i) 4 Cal Const., art XIII D §2(i) 5 Cal. Const., art. XIII D, §4(a) 6 Cal. Const., art XIII D §4(a) 7 Golden Hill Neighborhood Association v. City of San Diego (2011) 199 Cal.App.4th 416 8 Surveys conducted in: North Park, San Diego (January 2015); Mack Road, Sacramento (July 2014); and Sunrise MarketPlace, Citrus Heights (December 2013)
9 Beutz v. Riverside (2010) 184 Cal.App.4th 1516 10 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057, 1077
835.060 X 1.000 = 835.06 99.860% X $
395,037.39 = $394,484.09
9.370 X 0.125 = 1.17 0.140% X $395,037.39 = $553.30
122,982.00 X 1.000 = 122,982.00 99.070% X $394,484.09 = $390,816.47 9,233.00 X 0.125 = 1,154.13 0.930% X $394,484.09 = $3,667.62 835.060 X 1.000 = 835.06 99.888% X 272,902.42 = $272,596.55
9.370 X 0.100 = 0.94 0.112% X 272,902.42 = $305.87
122,982.00 X 1.000 = 122,982.00 99.255% X $272,596.55 = $270,565.25 9,233.00 X 0.100 = 923.30 0.745% X $272,596.55 = $2,031.30 $390,816.47 $4,220.92
$270,565.25 $2,337.17
$661,381.72 $6,558.09
99.02% 0.98%
$90,188.42 $894.29
$751,570.14 $7,452.38
$1,221.77 $390,816.47 $4,220.92 $10,995.89 $407,255.05
$844.03 $270,565.25 $2,337.17 $7,596.25 $281,342.70
$281.70 $90,188.42 $894.29 $2,535.29 $93,899.70
$2,347.50 $751,570.14 $7,452.38 $21,127.43 $782,497.45
11 Streets and Highways Code section 36632(a) 12 Cal. Const., art XIII D §4(a) 13 Ibid 14 Streets and Highways Code section 36615.5 $407,255.05 $1,221.77 $10,995.89 $4,220.92 $390,816.47
$281,342.70 $844.03 $7,596.25 $2,337.17 $270,565.25
$93,899.70 $281.70 $2,535.29 $894.29 $90,188.42
$782,497.45 $2,347.50 $21,127.43 $7,452.38 $751,570.14
15 Tiburon v. Bonander (2009) 180 Cal.App.4th 1057
$407,255.05 $281,342.70 $93,899.70 $782,497.45
$427,617.80 $295,409.84 $98,594.68 $821,622.32
$448,998.69 $310,180.33 $103,524.42 $862,703.44
$471,448.63 $325,689.34 $108,700.64 $905,838.61
$495,021.06 $341,973.81 $114,135.67 $951,130.54
$519,772.11 $359,072.50 $119,842.45 $998,687.06
$545,760.72 $377,026.13 $125,834.57 $1,048,621.42
$573,048.75 $395,877.43 $132,126.30 $1,101,052.48
$601,701.19 $415,671.30 $138,732.62 $1,156,105.11
$631,786.25 $436,454.87 $145,669.25 $1,213,910.37
$5,122,410.25 $3,538,698.25 $1,181,060.30 $9,842,168.80
Exhibit B
RIVER DISTRICT (FUND 2222)
PROPERTY AND BUSINESS IMPROVEMENT DISTRICT (PBID)
FY2023/24 DISTRICT FUND BUDGET OF THE CITY
& PARCEL ASSESSMENT
Estimated Beginning Fund Balance -
Total Assessed to Property (Business) Owners 751,570
Total Resources $751,570
PBID Activities
Estimated Disbursement 750,070
Administrative Costs
Improvement Financing (IF)
Administration 1,500
Parcel reporting -
Accounting
Administration 1,098
County Billing 318
Total Expenditures $748,654
Estimated Ending Fund Balance -
Year-Over-Year Change in Fund Balance -
Parcel Assessment
Annual assessment rates are based on special benefit received as defined by the Management District Plan. Assessments will be subject to an annual increase of up to 5% per year. These special benefits have been calculated based on an allocation of program costs and a calculation of lot square footage, as shown in the table below:
Assessment Rate
Zone 1
Assessment Rate
Zone 2
$1,018.96 per acre $244.33 per acre