PROPERTY
AND
BUSINESS
IMPROVEMENT
DISTRICT
FORMATION
FEASIBILITY
STUDY
January
2023
DOWNTOWN
SAN
BERNARDINO,
CA
PAGE
9 DSBPBID
BOUNDARIES
TABLE
OF
CONTENTS
EXECUTIVE
SUMMARY
PAGE
1 PAGE
14 PAGE
2 BACKGROUND
METHODOLOGY
PAGE
3 CONCLUSION
&
NEXT
STEPS
PAGE
10 TIMELINE
PAGE
13 PAGE
14 PAGE
13 ABOUT
CIVITAS
PAGE
17 HOME
RULE
AUTHORITY
The
purpose
of
this
study
is
to
determine
the
need
for
ser vices
and
the
feasibility
of
establishing
a
property
business
improvement
district
(PBID)
to
provide
needed
ser vices
w ithin
the
Dow ntow n
San
Bernardino
area.
With
over
one
hundred
PBIDs
throughout
California,
PBIDs
have
become
a
popular
means
of
generating
stable
funding
for
additional,
needed
ser vices.
A
PBID
in
Dow ntow n
San
Bernardino
would
provide
the
resources
to
maintain
and
improve
the
physical
environment,
recruit
businesses,
and
potentially
increase
property
values.
Formation
of
a
PBID
w ill
provide
funding
for
essential
ser vices
necessar y
to
meet
Dow ntow n
San
Bernardino?s
needs.
Civitas,
in
conjunction
w ith
the
City
of
San
Bernardino,
and
a
Steering
Committee
led
by
property
ow ners
w ithin
the
proposed
PBID
boundaries,
has
worked
diligently
w ith
property
ow ners
to
determine
what
concerns
they
have
regarding
the
long-term
prosperity
of
Dow ntow n
San
Bernardino
and
the
ser vices
that
are
needed
to
improve
the
area.
Outreach
has
taken
place
in
the
form
of
open
houses
w ith
the
property
ow ners
w ithin
the
proposed
PBID
boundaries.
EXECUTIVE
SUMMARY
1 HOME
RULE
AUTHORITY
In
recent
months,
the
City
of
San
Bernardino
and
property
ow ners
have
been
in
discussions
about
forming
a
PBID
to
finance
additional
ser vices
in
the
area.
Funds
were
allocated
by
the
City
of
San
Bernardino
to
hire
Civitas
to
examine
the
needs
of
the
area
and
subsequently
draft
a
Feasibility
Study
gauging
property
ow ner
support.
Should
the
City
of
San
Bernardino
decide
to
move
for ward
w ith
PBID
formation,
Civitas
w ill
provide
a
proposal
and
assist
w ith
the
formation
process.
This
report
is
a
summar y
of
stakeholder
meetings
and
the
first
steps
in
the
Dow ntow n
San
Bernardino
Property
and
Business
Improvement
District
(DSBPBID)
formation
process.
BACKGROUND
2 HOME
RULE
AUTHORITY
Several
methods
were
used
to
gather
information:
-
The
City
of
San
Bernardino
funded
the
hiring
of
Civitas
as
its
consultant,
to
assist
in
the
DSBPBID
feasibility
process;
-
Th
e
project
Steering
Committee
was
formed
by
fellow
property
ow ners.
The
Committee
is
led
by
property
ow ners
proposed
to
be
assessed
in
the
potential
DSBPBID;
-
In
December
2022,
a
virtual
open
house
was
hosted
w ithin
the
proposed
boundaries,
in
which
property
ow ners,
stakeholders,
and
City
staff
attended
to
show
support
or
provide
feedback;
-
Analysis
of
the
proposed
boundaries
were
discussed
by
the
Steering
Committee;
-
Ongoing
Steering
Committee
meetings
have
been
conducted
to
develop
the
DSBPBID
parameters;
-
A
detailed
Ser vice
Plan
was
created
to
illustrate
the
proposed
district
parameters
including
budget,
ser vices
and
boundaries;
-
In
Februar y
2023,
an
in-person
open
house
is
scheduled
to
further
discuss
DSBPBID
efforts
and
receive
feedback
from
property
ow ners,
stakeholders
and
the
business
community.
METHODOLOGY
3 PROPOSED
DISTRICT
PARAMETERS
Term
If
the
formation
process
were
to
begin
no
later
than
July
2023,
the
DSBPBID
could
have
a
five
(5)
year
life
beginning
Januar y
1,
2025,
through
December
31,
2029.
After
the
five
(5)
year
term,
the
DSBPBID
may
be
renewed
again
for
up
to
ten
(10)
years
if
property
ow ners
support
continuing
the
programs.
Assessment
Rate
Parcels
are
assessed
based
on
parcel
size.
To
determine
a
parcel?s
assessment,
the
applicable
square
footage
is
applied
to
the
parcels
w ithin
the
DSBPBID.
The
assessment
rates
may
be
$0.015
per
square
foot
for
Commercial
parcels,
$0.0125
per
square
foot
for
Vacant
parcels,
and
$0.005
per
square
foot
for
Tax-Exempt
parcels.
An
annual
assessment
increase
may
also
be
authorized
in
the
documents
forming
the
DSBPBID
in
order
to
enable
the
governing
body
of
the
DSBPBID
to
increase
the
assessment
rate,
w ithin
certain
parameters,
over
the
life
of
the
DSBPBID.
Potential
Budget
The
budgets
below
are
examples
of
how
funds
could
be
allocated
in
the
initial
year
of
the
DSBPBID.
Budget
categories
may
require
adjustments
up
or
dow n
to
continue
the
intended
level
of
ser vices.
4 Ser vice
%
Annual
Budget
Clean
&
Safe
70%
$210,874.53
Capital
Improvements
15%
$45,187.40
Administration
10%
$30,124.93
Contingency/Reser ve
3%
$9,037.48
Collection
Fee
2%
$6,024.99
TOTAL
100%
$301,249.33
PROPOSED
DISTRICT
PARAMETERS
Potential
Ser vices
Through
outreach
efforts,
Civitas,
the
City
of
San
Bernardino,
and
the
Steering
Committee
received
feedback
on
the
desired
ser vices
to
be
funded
by
the
DSBPBID.
The
follow ing
is
a
list
of
proposed
DSBPBID
ser vices
and
parameters
that
have
derived
from
outreach
efforts:
Clean
&
Safe
Safety
and
security
ser vices
may
include
dedicated
patrols
by
off-duty
officers
of
the
City
of
San
Bernardino
Police
Department
or
supplemental
private
security
patrols.
The
patrol
w ill
seek
to
ser ve
as
both
a
deterrent
by
creating
a
visible
presence,
and
a
respondent
to
incidences
that
occur.
The
goal
of
the
program
is
to
increase
usability
of
assessed
parcels
and
address
issues
which
discourage
property
ow ners,
tenants,
and
customers
from
visiting
assessed
parcels,
ultimately
constituting
and
providing
unique,
special
benefits
to
assessed
parcels.
These
ser vices
may
include,
but
are
not
limited
to:
-
Partnerships
w ith
local
law
enforcement
to
provide
property
and
business
ow ners
direct
communication
w ith
local
law
enforcement;
-
A
safety
and
patrol
program
to
deter
and
report
illegal
street
vending,
illegal
dumping,
and
street
code
violations.
This
program
w ill
address
a
myriad
of
quality-of-life
problems
including
public
intoxication,
panhandling,
loitering,
trespassing,
and
scavenging;
-
A
safety
program
may
be
implemented
to
improve
day
and
evening
safety
in
the
DSBPBID
by
controlling
vagrancy,
property
damage,
encampment,
and
petty
crimes;
-
Navigator
homeless
outreach
teams
and
guides
may
be
deployed
throughout
the
DSBPBID;
-
Support
crime
prevention
on
assessed
parcels
by
working
closely
w ith
local
law
enforcement;
and
-
Respond
and
work
to
reduce
nuisance
behaviors
which
can
deter
tenants
and
customers
on
assessed
parcels.
The
Clean
program
w ill
make
the
DSBPBID
cleaner,
more
accessible,
and
more
attractive
to
potential
tenants
and
customers,
and
a
safer
place
to
do
business.
A
regular
schedule
w ill
be
established
for
most
of
the
maintenance
ser vices.
Some
maintenance
ser vices
w ill
be
provided
on
an
as-needed
basis,
while
others
w ill
be
provided
on
a
regular
basis.
Maintenance
ser vices
may
include,
but
are
not
limited
to:
-
Installation
of
decorative
lights;
-
Regular
litter
removal
ser vices,
including
garbage,
debris,
and
leaves;
-
Removal
of
bulky
items
and
street
sweeping
ser vices;
-
On-demand
graffiti
removal
ser vices;
-
Pressure
washing
sidewalks
adjacent
to
assessed
properties
on
an
as
needed
basis;
and
-
Maintenance
of
landscaping,
including
the
trimming
and
planting
of
trees
and
flowers.
5 PROPOSED
DISTRICT
PARAMETERS
Potential
Services
(continued)
Capital
Im pr ovem ents
The
Capital
Improvements
program
may
use
a
multi-faceted
approach
to
the
planning,
design
and
management
of
public
spaces
in
the
DSBPBID.
District
funds
w ill
be
leveraged
to
create
a
unique
sense
of
place,
which
may
include
wayfinding
signage,
seasonal
banners
and
lighting,
and
other
public
space
improvements.
Capital
improvements
w ill
be
funded
to
make
the
DSBPBID
more
accessible,
inviting,
and
useable.
Small
scale
improvements
may
include
bus
benches,
landscaping
features,
trash
receptacles,
and
art
installations
and/or
removal
of
concrete
benches
and
raised
planters;
these
funds
may
also
be
leveraged
to
seek
additional
money
for
large-scale
projects.
In
order
to
pay
for
large-scale
improvements,
this
portion
of
the
budget
may
be
held
in
reser ve
until
such
time
as
the
balance
is
sufficient
to
pay
for
the
improvement.
Adm inistr ation
The
administration
portion
of
the
budget
w ill
be
utilized
for
administrative
costs
associated
w ith
providing
the
activities
and
improvements
for
the
DSBPBID.
These
costs
may
include
rent,
telephone
charges,
legal
fees,
accounting
fees,
postage,
administrative
staff,
insurance,
and
other
general
office
expenses.
Contingency/Reser ve
The
budget
also
includes
a
prudent
fiscal
reser ve.
Changes
in
data,
lower
than
anticipated
collections,
higher
than
expected
program
costs,
and
other
issues
may
change
the
revenue
and
expenses.
In
order
to
buffer
the
organization
for
unexpected
changes
in
revenue,
and/or
allow
the
Ow ners?
Association
to
fund
other
overhead
or
renewal
costs,
the
reser ve
is
included
as
a
budget
item.
Should
contingency
funds
remain
at
the
expiration
of
the
DSBPBID,
and
property
ow ners
w ish
to
renew
the
DSBPBID,
the
remaining
funds
may
be
used
for
the
costs
of
renewal.
Management
A
new
nonprofit
corporation
501©6,
yet
to
be
named,
w ill
be
formed
to
ser ve
as
the
Ow ners?
Association
to
provide
improvements
and
activities
for
the
DSBPBID.
The
City
of
San
Bernardino
w ill
enter
into
a
contract
w ith
the
non-profit
corporation
regarding
the
provision
of
improvements
and
ser vices
for
the
DSBPBID.
Property
ow ners
paying
the
assessment
w ill
sit
on
the
Ow ners?
Association?s
Board
of
Directors
and
have
the
ability
to
determine
how
funds
are
spent
w ithin
the
designated
programs.
That
non-profit
corporation
must
provide
an
annual
report
on
activities
and
expenditures
to
the
City,
which
is
also
available
to
property
ow ners.
8 PROPOSED
BOUNDARIES
The
proposed
DSBPBID
boundaries
are
illustrated
by
the
map
below :
DSBPBID
BOUNDARIES
9 10
CONCLUSION
&
NEXT
STEPS
It
is
in
the
best
interest
of
the
property
ow ners
w ithin
the
proposed
boundaries
and
the
City
of
San
Bernardino
to
pursue
the
formation
of
the
DSBPBID.
The
proposed
district
has
a
solid
foundation
of
support
by
property
ow ners
and
key
stakeholders.
The
currently
proposed
structure
has
the
City
of
San
Bernardino
as
the
largest
paying
property
ow ner.
Given
the
City?s
support,
a
successful
PBID
formation
is
ver y
likely.
Further,
it
is
crucial
for
the
City
of
San
Bernardino
and
the
Steering
Committee
to
secure
the
County
of
San
Bernardino?s
support
as
County-ow ned
properties
are
currently
proposed
to
be
in
the
DSBPBID.
Steering
Committee
members
that
have
participated
in
the
open
houses
and
in
one-on-one
meetings
have
identified
specific
additional
activities
and
improvements
that
the
proposed
DSBPBID
can
provide.
Civitas
recommends
that
the
City
of
San
Bernardino
continues
its
efforts
to
forming
the
proposed
DSBPBID
to
provide
additional
activities
and
improvements
w ithin
the
proposed
DSBPBID.
Formation
of
the
DSBPBID
w ill
also
result
in
the
establishment
of
a
strong,
private
sector
non-profit
organization
w ith
a
dependable
financial
core.
The
proposed
DSBPBID
w ill
provide
the
resources,
leadership,
and
the
long-term
vision
Dow ntow n
San
Bernardino
needs
to
enhance
its
atmosphere
and
increase
commercial
activity
w ithin
the
DSBPBID
for
assessed
property
ow ners
w ithin
the
boundaries.
CONCLUSION
&
NEXT
STEPS
If
the
DSBPBID
project
moves
for ward
as
recommended,
the
proposed
PBID
w ill
be
formed
pursuant
to
the
Property
and
Business
Improvement
District
Law
of
1994.
The
follow ing
steps
must
be
taken
in
order
to
form
a
PBID
in
Dow ntow n
San
Bernardino:
1. CREATION
OF
FORMATION
RESOURCES
The
beginning
of
any
successful
formation
process
is
the
development
of
the
project's
infrastructure.
The
parameters
of
the
project
must
be
outlined
to
provide
clear
objectives
and
assignments
to
the
appropriate
parties.
The
Steering
Committee
formed
during
the
feasibility
phase
w ill
continue
to
lead
the
project's
education
and
outreach
program
in
order
to
maintain
and
enhance
the
requisite
support
for
the
project.
2. BUDGET
CONFIRMATION
Civitas
w ill
work
w ith
the
Steering
Committee
to
ensure
that
the
appropriate
properties
have
been
identified
and
compiled
into
a
database.
The
Steering
Committee
may
adjust
the
assessment
scenarios
or
budget
determined
during
the
feasibility
phase,
which
w ill
then
need
to
be
confirmed
by
the
City.
3. OWNER
OUTREACH
&
EDUCATION
Ow ner
outreach
and
education
is
a
critical
component
of
the
formation
process.
Civitas
w ill
work
w ith
the
Steering
Committee
to
continue
an
effective
outreach
and
education
program.
The
program
w ill
include
educating
City
staff
and
property
ow ners
w ithin
the
boundaries
of
the
DSBPBID,
as
well
as
seeking
their
input
on
strategies
for
formation
and
DSBPBID
parameters.
4. DISTRICT
PLAN
&
ENGINEER?S
REPORT
DEVELOPMENT
As
parameters
for
the
DSBPBID
are
being
solidified
during
the
outreach
process,
Civitas
w ill
draft
the
required
documents
for
DSBPBID
formation.
The
Ser vice
Plan
drafted
by
Civitas
in
collaboration
w ith
the
Steering
Committee
w ill
eventually
become
the
basis
for
the
Management
District
Plan
(Plan).
Once
district
parameters
have
been
finalized,
the
Plan
and
a
sample
petition
w ill
be
drafted.
The
Plan
and
sample
petition
w ill
undergo
a
review
process
by
the
Steering
Committee
and
City
staff.
Civitas
w ill
make
final
edits
to
the
Plan
and
petition.
The
Plan
w ill
also
include
an
Engineer?s
Report.
The
California
Constitution
provides
that
only
special
benefits
are
assessable
and
requires
that
an
Engineer
separate
the
general
benefits
from
the
special
benefits
conferred
on
a
parcel
in
an
assessment
district.
The
Engineer
must
ensure
special
benefits
are
truly
particular
and
distinct,
and
fairly
appointed
among
the
assessed
parcels,
therefore
the
Engineer
must
quantify
special
and
general
benefits
conferred
on
parcels
and
the
public-at-large
due
to
activities
and
improvements
provided
by
an
assessment
district.
Finally,
the
resolutions
and
notice
needed
for
the
hearing
process
w ill
be
drafted
and
sent
to
City
staff
for
review
during
this
step.
11 CONCLUSION
&
NEXT
STEPS
5. PETITION
DRIVE
Before
the
hearing
process
can
begin,
a
successful
petition
drive
must
be
completed.
Property
ow ners
representing
over
fifty
percent
(50%)
of
the
total
assessments
to
be
paid
must
submit
petitions
in
favor
of
DSBPBID
formation
to
complete
the
petition
drive.
This
step
includes
identifying
key
property
ow ners
and
collecting
signed
petitions.
This
process
is
led
by
the
Steering
Committee,
whose
outreach
efforts
prior
to
the
petition
process
have
primed
the
support
needed
to
complete
the
petition
drive.
Civitas
w ill
assist
the
City
staff
to
act
as
a
monitor
of
the
petition
support
threshold.
6. INITIAL
HEARING
The
initial
hearing,
referred
to
as
the
Resolution
of
Intention
(ROI),
is
the
first
hearing
held
by
the
San
Bernardino
City
Council
regarding
DSBPBID
formation.
Civitas
w ill
work
w ith
City
staff
to
prepare
for
the
ROI
and
provide
the
necessar y
documents
to
complete
this
step.
7. NOTICE/PROPOSITION
218
BALLOT
&
PROTEST
PERIOD
Shortly
follow ing
the
adoption
of
the
ROI,
a
mailed
notice
and
assessment
ballot
must
be
sent
to
all
property
ow ners
proposed
to
be
assessed.
Civitas
w ill
draft
the
notice
and
assessment
ballot
and
work
w ith
City
staff
to
mail
the
notice
to
property
ow ners.
Mailing
of
the
notice
starts
the
mandator y
forty-five
(45)
day
w indow
which
must
occur
before
the
public
hearing
may
be
held.
During
the
time
between
the
mailed
notice
and
assessment
ballot
and
the
close
of
the
public
hearing,
property
ow ners
in
opposition
to
the
DSBPBID
may
submit
protests
against
formation
of
the
DSBPBID.
If
property
ow ners
representing
over
fifty
percent
(50%)
of
the
total
assessments
to
be
paid
protest
formation
of
the
DSBPBID,
the
DSBPBID
shall
not
be
formed.
8. FINAL
PUBLIC
HEARING
&
BALLOT
COUNT
The
public
hearing,
or
Resolution
of
Formation
(ROF),
is
the
final
step
in
the
DSBPBID
formation
process.
The
San
Bernardino
City
Council
must
hold
the
public
hearing
and
allow
for
public
comment
and
shall
direct
tabulation
of
assessment
ballots
submitted
and
not
w ithdraw n
to
determine
whether
there
is
a
majority
protest
against
the
assessment.
If
there
is
no
majority
protest
by
property
ow ners,
the
City
Council
may
adopt
the
ROF
levying
the
DSBPBID
assessments
and
forming
the
DSBPBID.
If
formed,
the
assessment
w ill
be
collected
by
the
County
of
San
Bernadino
in
conjunction
w ith
property
taxes.
In
order
for
the
assessment
to
be
on
the
property
tax
bill
per
the
County?s
billing
system,
the
formation
process
must
be
completed
no
later
than
July
31st
for
the
PBID
to
begin
Januar y
of
the
upcoming
calendar
year.
12 The
follow ing
timeline
is
a
sample
timeline
of
a
PBID
formation
based
on
similar
projects.
APPENDIX
I:
FORMATION
PROCESS
TIMELINE
Action
Continue
Outreach
to
Stakeholders
and
property
ow ners
to
finalize
district
parameters
Februar y
2023
Finalize
District
Parameters
Februar y
2023
Develop
initial
dr aft
Managem ent
Distr ict
Plan
(MDP)
March
2023
Steering
Committee
review
of
MDP;
ongoing
April
2023
Submit
draft
MDP
and
Petition
to
City
staff;
ongoing
review
May
2023
Final
MDP
approved
by
City
staff
June
2023
Submit
Final
MDP
to
Engineer;
draft
Engineer?s
Report
June
2023
Submit
Final
MDP
+
Engineer?s
Report
to
City
staff;
ongoing
review
June
2023
Final
MDP
+
Engineer?s
Report
and
Petition
approved
by
City
staff
June
2023
Pr oper ty
owner
m eetings:
Petition
dr ive
July
2023
-
August
2023
Submit
resolution
to
City
for
Authorization
to
sign
Petition/Ballot
July
2023
City
Council
?Authorize
City
Manager
to
sign
Petition
and
Ballot
for
City-ow ned
parcels
July
2023
Boar d
of
Super visor s
?
Authorize
CAO
to
sign
Petition
and
Ballot
for
County-ow ned
parcels
July
2023
Submit
draft
resolutions
and
Ballot
package
to
City
staff
August
2023
Final
resolutions
and
Ballot
package
approved
by
City
staff
August
2023
Submit
Petitions
totaling
over
50%
of
assessment
to
City
staff
August
2023
City
Council
?
Initial
Hear ing
-
Resolution
of
Intention
to
Form
September
2023
Notice
-
Mail
Ballot/Notice
of
Public
Hearing
September
2023
City
Council
-
Public
Hear ing
-
Adopt
Resolution
of
Formation
&
Tabulate
Ballots
November
2023
Deadline
to
complete
District
Formation
July
2024
District
begins
collecting
assessment
Januar y
2025
14 At
Civitas,
we
specialize
in
igniting
local
economies,
creating
jobs
and
establishing
stable
funding
for
destination
promotions
and
dow ntow n
improvements
throughout
the
United
States.
With
more
than
20 years
of
experience,
we
provide
expertise
in
all
aspects
of
forming,
modifying,
and
renew ing
improvement
districts.
With
offices
in
Sacramento,
Los
Angeles,
and
New
York,
our
team
of
professionals
has
guided
over
150
districts
through
the
formation,
modification
or
renewal
process.
With
its
deep
experience
and
expertise,
Civitas
has
been
commissioned
by
the
U.S.
Travel
Association
to
conduct
nationw ide
studies.
PROJECT
MANAGER:
Kelly
Rankin,
Project
Manager
[email protected]
916.436.5323
ABOUT
CIVITAS
1102
Cor por ate
Way
Ste
140,
Sacr am ento,
CA
95831
800.999.7781
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