CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 23 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 17, 2024
SUBJECT:
Downtown Business Improvement Area – Annual Renewal
RECOMMENDATION:
Adopt a Resolution to Levy the Annual Assessments for the Downtown Business Improvement Area for fiscal year 2024-25.
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. 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 the last meeting on June 3, 2024, the City Council accepted the DSMA’s annual report, adopted a Resolution of Intent to Levy the Annual Assessment, and set a public hearing date for June 17, 2024. At the second meeting, the City Council is asked to adopt the Resolution to levy the annual assessment (included as Attachment 1).
Annual Assessment
This year marks the first time the DSMA has had a full-time Executive Director, Mackenzie Jakoubek, who brings 15 years of experience in nonprofit management, customer service, and event planning. After the resignation of the previous Executive Director in 2017, a group of volunteer business owners, with administrative support from the City, managed the DSMA. Since assuming her role as Executive Director, Ms. Jakoubek has engaged with Downtown businesses and community allies, and supported efforts of partner organizations such as the San Mateo Chamber of Commerce and the City of San Mateo to enhance and enliven the Downtown environment.
The hiring of a new executive director was made possible through the DSMA's efforts to amend assessment rates over several years. In 2021, DSMA hired NBS, a consultancy specializing in forming special financial districts to study a new rate structure to better reflect and equitably share costs among Downtown businesses, as DBIA fees had remained flat since 2009. Following the study, DSMA engaged CivicMic to facilitate community outreach, including multilingual mailings, online meetings, and a survey about DSMA. Feedback showed businesses were aware of and valued DSMA's services, and they highlighted the goals of cleanliness, beautification, events, marketing, and the need to hire an Executive Director as priorities. After gathering input, DSMA requested the City Council amend the DBIA levy, and held a public hearing on November 7, 2022. In response to feedback from small and medium-sized businesses, DSMA proposed lower rate category for sole proprietors and medium-sized businesses with 6 to 15 employees at the Council meeting. The modified rates were
CITY OF SAN MATEO
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adopted and became effective on July 1, 2023.
For the fiscal year 2024-25, the DSMA expects to generate approximately $382k from DBIA assessments, aligning with its budget. Additionally, it plans to allocate $48,000 for hosting community-building events, $101,000 for cleaning services, and $63,000 for marketing. The remaining funds will cover personnel and consulting services. The DSMA aims to maintain a reserve of $211k. The DSMA shares an office with the Downtown Coordinator and does not utilize any City equipment or furniture. The shared space allows the DSMA to redirect savings towards programs and events. Additionally, the shared office facilitates a closer relationship between the City and the DSMA, enhancing collaboration and communication.
While some stakeholders have voiced dissent in having to participate in the fees, the majority have noticed the benefits of having increased events, enhanced marketing, and vibrancy in the Downtown. At the June 17, 2024 public hearing, Mackenzie Jakoubek, Executive Director of the DSMA will present an overview of the DSMA’s Annual Report and will be able to address any questions from the Council and public.
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.
Should Council adopt the resolution levying the proposed annual Downtown Business Improvement Area assessment, the Finance Department will include the 2024-25 DBIA assessments in all the City business tax license fees for businesses located within the boundaries of the DBIA.
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 notice requirements were met. Pursuant to California Streets and Highways Code Section 36534, a notice for the public hearing was published in the San Mateo Daily Journal at least seven (7) days prior to the June 17, 2024 City Council hearing.
ATTACHMENTS
Att 1- Proposed Resolution
Att 2- DSMA Annual Report 2023-2024
Att 3 – Support Letters
STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009