City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00794 4/9/2024 Consent Item 13.
Renewal of River District Property and Business Improvement District No. 2024-02 and Ballot Results
File ID: 2024-0794
Location: District 4, Represented by Councilmember Valenzuela Recommendation: 1) Receive a report regarding the tabulation of assessment ballots submitted and not withdrawn before completion of the public hearing on April 2, 2024; and pass a Motion to: 2) adopt a Resolution renewing the River District Property and Business Improvement District (District) No. 2024-02 for a ten-year term, confirming and levying an assessment, and approving the District budget and assessment for Fiscal Year (FY) 2024/25; and 3) adopt an Ordinance to renew the District.
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: None
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-Resolution to Renew
-Exhibit A, Management District Plan
-Exhibit B, Map of District
-Exhibit C, District Fund Budget & Assessment
4-Ordinance to Renew
5-District Map
Description/Analysis
Issue Detail: The River District Property and Business Improvement District (District), initially established in 1999 as the Capitol Station Property and Business Improvement District and renamed and renewed for a ten-year term in 2014, is a benefit assessment district intended to improve the River District area, shown on Attachment 5. 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-
File ID: 2024-00794 4/9/2024 Consent Item 13.
year term. The renewed District will provide safety and maintenance, planning, advocacy and communications improvements and activities over and above those 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 renewed District and assessment. Public Hearing notices were mailed to all affected property owners on February 15, 2024.
At the conclusion of the public hearing on April 2, 2024, the City Clerk tabulated the assessment ballots submitted and not withdrawn to determine whether there was a majority protest against the proposed District assessment (i.e., whether a majority of the weighted ballots submitted are opposed to the District and assessment). Based on the City Clerk’s ballot tabulation, there is not a majority protest. As such, staff recommends that the Council adopt a resolution and an uncodified ordinance, renewing the District for a ten-year term; thereby also approving the annual District fund budget and levying the assessment as per Attachment 3. In addition, staff recommends that Council pass an uncodified ordinance 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 renewal proceedings described in this report are in accordance with the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et seq.).
Economic Impacts: None.
Environmental Considerations: The renewal of a business improvement district does not constitute a project under the California Environmental Quality Act and is therefore exempt from review pursuant to Guidelines Section 15378(b)(4).
Sustainability: Not applicable.
Commission/Committee Action: On April 2, 2024, Council voted to bypass the Law and Legislative Committee for review of the District’s 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: Renewal of the District will allow the District activities to continue.
File ID: 2024-00794 4/9/2024 Consent Item 13.
District services in the renewal term 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 for the District is provided by the levy of assessments upon properties that benefit from improvements and activities. There are approximately 530 assessed parcels in the District’s 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 may 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.