CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 8 Section Name: {{section.name}} Account Number: 14-1311 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: June 03, 2024
SUBJECT:
Downtown Business Improvement Area – Resolution of Intent for Annual Renewal RECOMMENDATION:
Accept the fiscal year 2023-24 Downtown San Mateo Association Annual Report; adopt a Resolution of Intent to Levy the Annual Assessments for the Downtown Business Improvement Area for fiscal year 2024-25; and set a public hearing for the June 17, 2024 City Council meeting for the annual levy.
BACKGROUND:
The Downtown Business Improvement Area (DBIA) was formed in 1986 for the purpose of improving Downtown San Mateo and promoting businesses within the area. The Downtown San Mateo Association (DSMA) has served as the DBIA administrator since its formation. Annually, the DSMA provides the City Council with a report of activities and expenditures for the previous fiscal year and proposes an assessment schedule for the upcoming fiscal year, as required by the California Street and Highways Code Section 36533.
In May 2024, the DSMA submitted its annual report, incorporating a summary of fiscal year 2023-24 activities and proposed program and budget for fiscal year 2024-25 (included as Attachment 2). Before City Council may act on the DSMA’s request to renew the DBIA assessments, the request must be considered at two City Council meetings. At first the meeting on June 3, 2024, the City Council is asked to accept the DSMA’s annual report and adopt a Resolution of Intent to Levy the Annual Assessment (included as Attachment 1). At the second meeting on June 17, 2024, the City Council conducts a public hearing on the proposed assessment schedule and considers adoption.
In 2021, DSMA contracted with NBS, a consultancy specializing in forming special financing districts, to study a new rate structure. The aim was to better reflect the Downtown businesses and share costs more equitably among the businesses in the DBIA. DSMA proposed this review because DBIA fees had remained flat since 2009, and the rates didn’t reflect the current makeup of the Downtown businesses.
After NBS completed their study, DSMA contracted with CivicMic to engage the local business community and facilitate outreach for reviewing the new fee proposal. CivicMic mailed information about the rate-change in English, Spanish, and Chinese, and conducted online meetings. Additionally, a survey was launched to gather merchant feedback about the new rates. DSMA volunteer board members also led an in-person meeting in Downtown to discuss the proposed new rates. The results of these meetings indicated that the business stakeholders were generally aware of the services provided by DSMA and recognized that DSMA's services support their businesses. Furthermore, discussions highlighted cleanliness, beautification, execution of public events, marketing as areas businesses wanted DSMA to focus on in the future, and the need for an Executive Director.
CITY OF SAN MATEO
After completing outreach efforts, the DSMA requested the City Council amend the basis and method of levy for the Downtown Business Improvement Area (DBIA). A public hearing was scheduled on November 7, 2022. Before the public hearing, the DSMA received feedback from small and medium-sized service and professional businesses requesting reduced rates. In response, the DSMA requested a lower assessment rate tailored for sole proprietors and medium-sized businesses with 6 to 15 employees, aiming to provide some relief. and the modified rates were adopted into the ordinance, becoming effective on July 1, 2023. .
With the updated assessments in place, DSMA‘s next task was to hire a full-time Executive Director. After an extensive search, Mackenzie Jakoubek was hired. Ms. Jakoubek has 15 years of experience in nonprofit management, customer service, and event planning. Since assuming her role, Ms. Jakoubek has addressed administrative tasks that had been neglected since the departure of the previous executive director in 2017. In her capacity, she has diligently worked to cultivate new relationships and engage with Downtown businesses, community allies, and the San Mateo Chamber of Commerce to help enhance the Downtown environment. With a dedicated staff member and increased funding, the DSMA has begun to expanded cleanliness services throughout the Downtown area, enhance marketing efforts to promote Downtown businesses, and develop new event programming to attract both new and returning customers, enriching the Downtown experience. Many of these achievements will be highlighted directly by the DSMA during their presentation to the City Council.
The DSMA anticipates generating approximately $382k in estimated DBIA assessments for FY24-25, aligning with its budgeted expenditures. Additionally, the DSMA will maintain a reserve of $220k.
While there has been dissent about the rates, the majority of stakeholders appear to have adapted to them and have noticed the benefits of additional events, enhanced marketing efforts, and improved cleanliness in the Downtown area and have shared this directly with DSMA.
Next Steps
After the Council adopts the Resolution of Intent to Levy the Annual Assessments (Attachment 1), a notice will be published in the newspaper announcing the public hearing for no less than seven days prior to the meeting on June 17, 2024.
According to Streets and Highways Code Section 36535, if written protests are submitted by business owners in the DBIA, and these protests collectively represent 50% or more of the proposed assessments, no additional actions to impose the assessments will occur for a period of one year. Any written protests received will be provided at the June 17, 2024 Council meeting.
At the June 17th public hearing, Mackenzie Jakoubek, Executive Director of the DSMA, will provide an overview of DSMA’s accomplishments and will be available to address any questions from the City Council and the public prior to Council consideration of levying the assessment for the next fiscal year.
BUDGET IMPACT:
The levying of the annual DBIA assessment does not have an impact on the General Fund.
ENVIRONMENTAL DETERMINATION:
This item is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)
NOTICE PROVIDED
All meeting noticing requirements were met. As required by the California Streets and Highways Code Section 36534, a notice shall be provided in the local newspaper no less than seven (7) days prior to the June 17, 2024 City Council public hearing.
CITY OF SAN MATEO
ATTACHMENTS
Att 1 - Proposed Resolution of Intent
Att 2 - DSMA Annual Report for Fiscal Year 2023-24
STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009