CITY OF SALINAS COUNCIL STAFF REPORT
DATE: JUNE 25, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT FROM: LISA BRINTON, DIRECTOR BY: MICHAEL GOMEZ, ECONOMIC DEVELOPMENT ANALYST
ITLE: SALINAS CITY CENTER IMPROVEMENT ASSOCIATION 2023 ANNUAL REPORT RECOMMENDED MOTION:
A motion to approve a Resolution accepting and approving the Salinas City Center Improvement Association (SCCIA) 2023 Annual Report.
EXECUTIVE SUMMARY:
The 2023 Annual Report is provided as Attachment 2 to this staff report. The approval of this report is at the discretion of the Council. With Council approval, the SCCIA Annual Report will also provide direction for SCCIA activities and use of assessment district funds in the fiscal year.
BACKGROUND:
In 2015, the City Council and the Board of Supervisors accepted the Salinas Downtown Vibrancy Plan as a strategic planning document to guide the revitalization of downtown Salinas including the government center. That same year, the City Council formed the Salinas Downtown Community Benefit District (CBD) and entered into a Management and Disbursement Agreement with the Salinas City Center Improvement Association (SCCIA) to implement the Management District Plan. SCCIA is to create an annual District budget and policies to comply with the District Plan; prepare and file quarterly and annual reports with the City reflecting compliance with the District Plan; and oversee the day-to-day implementation of District Plan Improvements.
As a CBD, parcels within the District boundary derive special benefit from programs and activities funded by assessments levied against the identified properties. The benefits, identified in the Management District Plan, are special and unique to the parcels within the District because programs and services (i.e. sidewalk operations/beautification; district identity; program management; and contingency/reserve) are provided directly and solely for the benefit of the identified parcels. The objective of providing these special benefits is to keep the District area clean, safe, orderly, attractive, well marketed with special events and programs, and to increase commerce within the CBD boundaries.
The annual levy of assessment in each of the fiscal years referred to in the District Plan are conditioned on the approval, by resolution, of an annual report pursuant Section 36650 of the Property and Business Improvement District (PBID) Law. A summary of SCCIA’s 2023 Annual Report and FY 2023-2024 annual budget follows.
DISCUSSION:
2023 Annual Report
The 2023 Annual Report covers the period from December 1, 2022, to November 30, 2023. The financial statement for this time-period is part of the Annual Report (Attachment 2). Total assessment income during this period was $454,929.69. Total expenditures in FY 2022-2023 were $521,010.90 resulting in a net loss of $66,181.21.
Grant funds totaled $178,866.73, comprising $171,000 from new grants and $7,866.73 carried over from the prior year with an additional carryover balance of $280,916.15. Expenses against these funds amounted to $70,030.25, resulting in a net income of $100,969.75. The ending cash balance and carryover stood at $108,836.48.
SCCIA's total income amounted to $933,309.33, with expenses totaling $606,596.30, resulting in an ending cash balance of $326,713.03. Table 1 below provides a breakdown of expenditures by program area for the reporting period.
Table 1
PROGRAM OR ACTIVITY
FUNDED BY THE DOWNTOWN
PERCENTAGE OF ANNUAL BUDGET
2023 EXPENDITURES
Sidewalk Operations, Beautification and Order
45%
$ 237,116.69
District Identity and Streetscape Improvement
14%
$ 72,018.72
Administration/Corporate Operations
41%
$ 211,875.49
Contingency/City and County Fees/Reserves/Special projects 0 $ 0.00
TOTAL
$ 521,010.90
SCCIA's report provides statistical insights into the assessment district, contrasting business prevalence within the district against the broader city context. Additionally, it details the estimated value per acre for both taxed and untaxed properties within the district. The report includes pedestrian traffic counts for Main Street and Alisal Street, revealing key movement patterns. It further highlights 76 events hosted throughout the year, drawing a total of 38,280 attendees, underscoring the district's vibrant community engagement. SCCIA also provides data from, reflecting their digital outreach impact on Facebook and Instagram, alongside qualitative analysis gathered through surveys about downtown perceptions. These metrics collectively depict SCCIA's efforts in fostering economic vitality and community cohesion within their operational sphere.
SCCIA’s 2023 program accomplishments and 2024 goals are outlined in the Annual Report (Attachment 2). Goals and accomplishments are organized by committee/program area. A summary of highlights is provided below. The entire list of accomplishments and goals by committee is provided in the attached Annual Report. 2023 Accomplishments Highlights
Sidewalk Operations, Beautification and Order
Continued to contract with Allied Security providing foot patrol six days a week.
Added regular pressure washing service to the new Main Street Project Sidewalks to address the staining that was occurring on the new concrete.
Provide maintenance and flower replacements for the Main Street Project.
Added a second full-time streetscape maintenance position.
District Identity/Sidewalk Improvements
Coordinated rotating banners with community.
Enhanced alley activation installation.
Installed new electrical lock boxes to prevent vandalism.
Partnered with Blue Zones for wayfinding signs.
Prepared monthly newsletter and biannual “What’s Happening in SCC” with Mayor and SCCIA board members.
Land Use
Collected records from other California cities related to their Downtown Parking management programs and discussed possible approach and timing for parking study with City Planning.
Continued to track the Salinas Kick Start Project Phase 2 and 3.
Worked with business owners and the City to resolve regulatory obstacles to installation of signs. 2024 Goals Highlights
Sidewalk Operations, Beautification and Order
Evaluate the effectiveness of the current pressure washing program.
Seek grant funding for additional tree work, including tree planting.
Issue RFP for security services for FY Dec 23/24.
District Identity/Sidewalk Improvements
Continue to enhance Downtown Banner program.
Produce “Welcome to Salinas City Center” bags for new merchants and tenants.
Work with Chamber for “Downtown Beer Passport”
Produce video media to promote the downtown.
Land Use
Support and advocate for continued implementation of the Downtown Vibrancy Plan.
Achieve a revenue-neutral, vibrancy-oriented, publicly accountable parking management program.
Pursue public and private policies that promote and highlight historical, cultural, and aesthetic aspects of Downtown Salinas. 2023-2024 Operating Budget
The SCCIA Board approved the 2023-2024 Operating Budget provided on page 31 of the Annual Report (Attachment 2). Total Assessment for 2023-2024 is estimated to be $479,000 plus $209,777 in 2022-2023 Carry Over funds, minus collection loss of $9,580, for a total 2023-2024 projected income of $679,197. The projected expenses are estimated at $530,470 for FY2023-2024 leaving a projected ending balance of $148,727. Operating expenditures are broken down by program/activity area in Table 2 below.
Table 2
PROGRAM OR ACTIVITY
FUNDED BY THE DOWNTOWN
PERCENTAGE OF ANNUAL BUDGET
PROPOSED
2024 EXPENDITURES
Sidewalk Operations, Beautification and Order
60%
$ 324,320
District Identity and Streetscape Improvement
22%
$ 109,000
Administration/Corporate Operations
14%
$ 92,150
Contingency/City and County Fees/Reserves/Special projects 4%
$ 5,000
TOTAL
100%
$ 530,470
2023-2024 Annual Assessment
The 2015 Engineers Report and Management District Plan includes the formula and methodology for calculating annual assessment amounts. The assessment amount is based upon a benefit calculation by linear frontage on all sides of the parcels that receive benefit; lot or parcel square footage; and building square footage. As permitted in the District’s Engineer’s Report, the SCCIA Board has approved an annual inflationary assessment rate increase of three and half percent (3.5%) to the method of assessment for FY 2023-2024. No boundary changes of the CBD Area are proposed. Levy of assessment for 2023-2024 is based on the following calculations.
Linear frontage - Benefit Zone 1 $5.2500 per linear foot/year Linear frontage - Benefit Zone 2 $3.6645 per linear foot/year Lot size or the footprint of the parcel $0.070508 per square foot/year Building square footage $0.088749 per square foot/year
Future residential condos $0.21 per square foot of parcel unit square footage The calculated assessment amount by Assessor’s Parcel Number (APN) for FY 2023-2024 is included in the Annual Report (Attachment 2). Based on the above calculations, the estimated total assessment amount to be collected in FY 2023-2024 is $494,845.05.
As stated in the Background section of this report, the annual levy of assessment in each of the fiscal years referred to in the District Plan are conditioned on the approval, by resolution, of an annual report pursuant Section 36650 of the Property and Business Improvement District (PBID) Law. The approval of such report is at the discretion of the Council.
CEQA CONSIDERATION:
The recommended action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines section 15378). Any subsequent discretionary projects resulting from implementation of DVP recommendations will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
Downtown Vibrancy Plan implementation, including the operation of SCCIA as a CBD, most closely aligns with the 2022-2025 City Council Goals and Strategic Plan initiatives of Economic Development, Infrastructure and Environmental Sustainability and Public Safety. CBD assessments are used to provide an enhanced level of service to improve the appearance, cleanliness, and safety in the SCCIA district to support a vibrant downtown.
DEPARTMENTAL COORDINATION:
Community Development staff coordinated with SCCIA to prepare this report.
FISCAL AND SUSTAINABILITY IMPACT:
There is no fiscal or sustainability impact associated with the receipt and acceptance of this report. The City will pass the assessments collected by the County of Monterey through to SCCIA to be used in accordance with the approved District Management Plan and 2023-2024 annual budget.
ATTACHMENTS:
Resolution accepting and approving the SCCIA FY 2023 Annual Report SCCIA 2023 Annual Report
CBD Map
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