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City of San Leandro Meeting Date: November 19, 2012 Staff Report File Number: 12-528 Agenda Section: ACTION ITEMS Agenda Number: 10.B. TO: City Council FROM: Chris Zapata City Manager BY: Cynthia Battenberg Business Development Manager FINANCE REVIEW: Not Applicable TITLE: Staff Report and Presentation Regarding an Ordinance Establishing Community Benefit Districts in the City of San Leandro SUMMARY AND RECOMMENDATIONS Given the State’s elimination of redevelopment agencies, Downtown business and property owners are seeking a new mechanism to fund security, maintenance and marketing activities in order to stay competitive with other areas in the region. One way to create this is to have the City Council adopt a new enabling ordinance that would allow the establishment of a Community Benefit District, or CBD. This action is allowable based upon the City Charter Municipal affairs authority. Community Benefit Districts enjoy greater flexibility to meet special benefit district needs. This report explains and recommends a new local enabling ordinance, which will allow for the creation of Community Benefit Districts under the City Charter. BACKGROUND The City of San Leandro and its former Redevelopment Agency have made significant investments in Downtown San Leandro. Major capital improvement projects include pedestrian lighting and landscaping enhancements, the West Estudillo pedestrian connection, and the Downtown Parking Garage. The Redevelopment Agency also provided on-going support to the Downtown in numerous ways including marketing and events, maintenance, security and financial assistance to businesses for façade improvements. The loss of redevelopment funding has impacted the City’s ability to continue to provide support. Funding for reduced general benefit services for Downtown was included in the FY 2012-13 budget as a stop-gap measure while the City assisted downtown business and property owners in exploring the creation of a Community Benefit District or similar funding mechanism. Following a Request for Proposals process, the City entered into a Consultant Services Agreement in July 2012 with New City America for assistance in the establishment of a special benefit district. The project was broken down into the following two phases: City of San Leandro Page 1 Printed on 11/13/2012 File Number: 12-528 1. Work with a property owner steering committee, conduct outreach meetings, determine the feasibility of a business district, and pass any necessary ordinance. 2. Create a work plan for the district, determine the structure of the organization to be formed and the methodology for assessing properties, manage a petition drive, prepare legal documents and conduct the campaign. The kick off meeting of the Property Owner Steering Committee was held on August 8, 2012 and the committee has held three meetings to date. An essential task in phase 1 of the project was a written survey to determine support and opposition to the concept of a Special Benefit District (SBD). A draft survey was reviewed by the committee at the August meeting and mailed to all property owners based upon Alameda County Assessor property owner information. Survey responses were due on September 28, 2012 and could be mailed in or completed on-line. Marco LiMandri, President of New City America, and staff held meetings with numerous parties including BART, large property owners and all banks in order to explain the initiative, answer questions about SBDs and encourage completion of the survey. The letter and survey sent to property owners is attached. Also attached is a map titled Downtown San Leandro Proposed Special Benefits District that includes an outline of the proposed district boundaries and provides survey results regarding conceptual support, opposition, or no opinion for a SBD. The map also includes information on public parcel ownership, specifically City and State owned properties. The green parcels on the map show there is clear support for a SBD. The blue City-owned parcels count as additional support as the City would vote in favor of a SBD. In summary, the survey results show total support for and opposition to a SBD based on building square footage, lot square footage and linear frontage as follows: Support Opposition No Response Building Sq. Ft. 29.1% 4.7% 64.2% Lot Sq. Ft. 52.1% 2.8% 40.5% Linear Frontage Frontage 43.4% 2.8% 48.3% Notes: Support includes private and City parcels See attached Survey Results and Building, Lot and Frontage for details The Property Owner Steering Committee reviewed the survey results at their October 18, 2012 meeting and recommended the City proceed with this initiative and move to the stage in which a plan for the new Downtown CBD is written and presented to the Steering Committee. The next step for the City Council is to adopt an enabling ordinance which would allow for the creation of a Downtown San Leandro Community Benefit District. This will complete phase 1 of the project as outlined above. Analysis Community Benefit Districts Community Benefit Districts (CBDs) are similar to Property-based Business Improvement Districts, or PBIDs, which are commonly formed in general law cities. Both the CBDs formed in Charter Cities and the PBIDs formed in general law cities are special benefit districts in which benefitting property City of San Leandro Page 2 Printed on 11/13/2012 File Number: 12-528 owners endorse a funding mechanism that confers special benefit(s) on real property owners. Both types of districts are established through a public hearing and assessment ballot proceeding. CBDs are allowable through a local enabling ordinance that provides for the establishment of a new special benefit district. Much like Business Improvement Districts (BIDs) and PBIDs authorized by the Streets and Highways code, CBDs are a mandatory funding mechanism where a special assessment is levied on property owners following an assessment balloting proceeding (mail balloting process to affected property owners) and a public hearing at a City Council meeting. The special benefit assessments and resulting services are administered by a non-profit entity comprised of those who pay the assessment. Why a CBD A CBD is recommended over the traditional BID or PBID for the following reasons: · CBDs can be created for a longer period of time (BIDs and PBIDs are limited to an initial term of five years) thus providing a greater level of flexibility and more certainty for engagement in longer-term economic development activities. This is particularly relevant because of the dissolution of the redevelopment agency. The CBD model will allow for capital improvements and long term financing of projects. · CBDs can include mixed-use areas, providing for flexibility in creating a district that reflects the changing face of a downtown. Furthermore, whereas the PBID legislation specifically exempts tax-exempt parcels, the State Constitution doesn’t, the current PBID law does not conform to the State Constitution. The proposed CBD ordinance would rectify this discrepancy. · Enacting a CBD will extend the period the district can exist to up to 20 years which will reduce consulting costs associated with renewal including the need for City staffing support during the process. · CBDs have a more reasonable petition threshold of 30% to initiate the balloting procedure, which helps move Districts forward more efficiently. The function of the petition process is merely to trigger the balloting -the petition has nothing to do with the constitutional provisions that allow for the creation of new special benefit districts. The ballot process for this or any other property assessment district is dictated by Prop 218. The more reasonable petition threshold does not in any way affect the final outcome, but helps districts get to the ballot quicker. Benefits of CBDs · A CBD can be a unifying mechanism for all stakeholders in a business district or mixed use community to voluntarily work toward a common goal -that of a vibrant business district. In addition, adoption of a San Leandro CBD ordinance would allow for a multitude of special benefit districts (residential, industrial, common industry), as long as they were initiated by the benefitting property owners. City of San Leandro Page 3 Printed on 11/13/2012 File Number: 12-528 · A CBD supports businesses through recruitment, retention and promotion of the area. · CBD funds provide services to a district including clean-up programs, enhanced landscaping and decorations, increased safety and security as well as public space development and management. This is particularly relevant in Downtown San Leandro due to the many plazas. · On a broader scale, a CBD can include those services “which confer a benefit to real property owners” over and above what a city can normally provide. Other charter cities including San Francisco, San Diego, San Jose, Oakland, Richmond, Alameda, Berkeley, and Los Angeles have already adopted similar ordinances that allow for longer term special benefit districts with reasonable petition thresholds. Such special benefit services include: o Cleaning of the public rights of way, sidewalks and gutter; o Steam cleaning of sidewalks in the district; o Additional removal of trash and bulky material; o Security services over and above the services of the local police force; o Installation of security cameras; o Parking services or transportation related services; o Economic development; o Business attraction and retention to structure a proper commercial mix; o Graffiti removal; o Administration and advocacy on behalf of business districts or neighborhoods; o Beautification, decorations, and special lighting; o Tree maintenance, planting, and watering; o Marketing and promotion; o Special community or neighborhood fairs, festivals or events; o Public space development and management. Next Steps The following is a summary of the major milestones to be completed in phase 2 of the project to form a Downtown San Leandro CBD. The plan is to complete the steps for Phase 2 by June 2013 to allow the assessment to be placed on the 2013-14 tax roll. · Creation of a Management Plan for the district and endorsement by the Steering Committee. The Management Plan outlines the special benefit services to be funded, the term of the district, the boundaries, the assessment methodology (formula for determining the costs to each property owner), and the management structure of the district; (January -February) · Review and certification of the Management Plan by an Assessment Engineer to ensure its compliance with the conditions of Article XIII(d) of the State Constitution; (February -March) · Circulation of a petition drive that demonstrates support by a minimum of 30% of the property owners, by weight. Once the 30% weighted threshold has been reached, the petitions are then submitted to the City for processing; (March) · Preparation of a Resolution of Intention for consideration by the City Council at a public meeting. According to the State Constitution, property owners must then be allowed to vote on the formation of the district at a public hearing. By adopting the Resolution of Intention, the City of San Leandro Page 4 Printed on 11/13/2012 File Number: 12-528 City Council is instructing the City Clerk to mail out the ballots to every affected property owner. The property owners have between 45-60 days in which to return the mail ballots. The mail ballots must be returned by the conclusion of the public hearing; (May -June) · At the conclusion of public testimony at the public hearing, the City Clerk will then count the returned ballots. If the weighted returned ballots of support exceed those returned in opposition, the City Council can then adopt an ordinance that levies the assessments on the benefiting parcels. The City then informs the County to levy the assessments on the next cycle of property tax bills consistent with the Management Plan and Engineer’s report; (by the end of July) · The assessments will then appear as a line item on the property tax bills and will be separated and sent to the City Clerk’s Office for processing. Once an account has been established and a contract is in place with the new non-profit management corporation, the CBD assessments will be transferred to the non-profit for management of special benefit services to the CBD. (December 2013) Previous Actions · On July 2, 2012, the City Council authorized the City Manager to enter into a Consultant Services Agreement with New City America, Inc. for assistance in establishing a Downtown San Leandro Assessment District at a cost not to exceed $65,000. Summary of Public Outreach Efforts · The Special Benefit District Property Owners Steering Committee, comprised of all downtown property owners who chose to attend and other interested parties, met on August 8, September 13 and October 18, 2012, to provide input on the initiative process and survey. At the October meeting, the committee made a recommendation to the City Council to proceed with the Special Benefit District initiative. · Updates on the proposed Special Benefit District were provided to the Downtown Association at their August 24, September 28 and October 26, 2012 meetings. · City staff and Marco LiMandri from New City America met with BART representatives, large property owners and bank managers to explain the initiative, answer questions and request their completion of the survey. Legal Analysis The report and recommendation has been reviewed and approved as to form by the City Attorney’s Office. Fiscal Impacts There is no fiscal impact to establishing an enabling ordinance under the City Charter for the formation of a Community Benefit District. City of San Leandro Page 5 Printed on 11/13/2012 File Number: 12-528 ATTACHMENTS · August 24, 2012 letter and survey mailed to all property owners · Downtown San Leandro Proposed Special Benefits District Map · Survey Results for Building, Lot and Frontage PREPARED BY: Cynthia Battenberg, Business Development Manager, Community Development Department City of San Leandro Page 6 Printed on 11/13/2012 August 24, 2012 To: Downtown San Leandro Property Owners SUBJECT: Downtown San Leandro “Special Benefits District” Survey Please Respond by Friday, September 28th , 2012 Dear Downtown San Leandro Property Owner: In June, the San Leandro City Council authorized funding for New City America to work with property owners to investigate and perhaps form a new Downtown Special Benefits District (SBD). As part of that effort, we held a meeting of property owners on August 8th and a second SBD Steering Committee meeting is scheduled for 10:00 a.m. September 13th at the Englander. Everyone is invited to attend the meetings and I hope you will join us. We are now seeking to obtain feedback from all downtown property owners and are requesting that you complete a survey in order for us to gauge your conceptual support or opposition to a Special Benefit District and to gather information regarding the type of services that most interest you. Please take five minutes to complete the survey and provide us your opinion no later than Friday, September 28th . The survey is short and easy and there are multiple ways to take it.  Go to www.newcityamerica.com and click on “New Districts/Surveys” then click on the San Leandro Survey Monkey link.  Complete the attached one-page form and o fax it to (619) 239-7105 o Scan and e-mail it to monica@newcityamerica.com o Or mail it in the enclosed self addressed stamped envelope to: New City America 710 W. Ivy Street San Diego, CA 92101 710 W. Ivy Street  San Diego, CA 92101  888-356-2726  619-233-5009  Fax 619-239-7105 mail@newcityamerica.com  www.newcityamerica.com  Facebook: New City America, Inc. The survey is an important and necessary first step in the investigation process which will enable us to set the boundaries of the district and prioritize the special benefits desired. Based on the results of the survey, a determination regarding the feasibility of moving forward with a SBD will be made by the Steering Committee. At this time it is not possible to provide specific information regarding the cost of the assessment. Assessments will be based on the services received and take into consideration the linear frontage of your parcel, parcel size and use of your building. The information gathered from the survey will be used to develop an initial benefit service plan and cost estimates for those services will be generated at that time. It is important to remember that this is a property owner driven initiative – in other words, you and the other downtown property owners decide what services you value and if you are willing to pay for them. It is my job to see if there is general agreement among property owners regarding the services they’d like to see provided. Assuming a package of benefits and the costs are established and supported by the Steering Committee (which is open to all), there are two additional pivotal points in the process at which you and all downtown property owners will be asked to weigh in. A petition drive endorsing the plan and a mail ballot vote to establish the district scheduled to occur prior to July 2013. The survey results will be summarized and forwarded to you for your information. Please contact me at 888/356-2726 or marco@newcityamerica.com should you have any questions regarding the survey or the creation of the proposed Downtown San Leandro Special Benefits District. Alternatively, you could call Cynthia Battenberg, Business Development Manager at the City of San Leandro, at 510/577-3352 or cbattenberg@sanleandro.org. We will be holding the second Steering Committee meeting on Wednesday September 13th from 10:00 a.m. to 11 a.m. at the Englander at 101 Parrott Street. Your participation is encouraged. Thank you for your cooperation to improve our community. Sincerely, Marco LiMandri President, New City America SURVEY OF DOWNTOWN SAN LEANDRO PROPERTY OWNERS PURSUANT TO THE INVESTIGATION AND FORMATION OF A DOWNTOWN SAN LEANDRO SPECIAL BENEFITS DISTRICT Please respond by September 28th You may also complete this survey online at www.newcityamerica.com (click on “New Districts/Surveys” and select the San Leandro Survey Monkey link) GENERAL QUESTIONS 1. How long have you owned your property at this address in Downtown San Leandro? a. Less than 2 years d. 25 -49 years b. 3 -9 years e. 50 or more years c. 10 -24 years 2. Do you believe that the image of Downtown San Leandro as portrayed in the media over the past few years has had an impact on your property values? a. Yes b. No c. Somewhat d. No opinion PUBLIC SAFETY– Enhanced public safety in the form of one San Leandro Police Bicycle Officer dedicated to the downtown is currently provided. 3. In terms of security and public safety, do you feel that Downtown San Leandro is........? a. Safe & orderly b. Relatively safe, may suffer c. Unsafe from unsafe image 4. Would you support property owner funded special benefit safety ambassadors or additional San Leandro Police Bicycle Officers for Downtown San Leandro a. Yes b. No c. No Opinion 5. Would you support property owner funded special benefit services to deal with homeless issues within the district? a. Yes b. No c. No Opinion BEAUTIFICATION AND CLEANLINESS – The City currently supports enhanced maintenance services by a 5-person clean-up crew through Stepping Stones Growth Center as well as twice annual steam cleaning of all downtown sidewalks. Continued funding is unfortunately at risk. 6. Would you support property owner funded sidewalk and gutter sweeping services and more frequent sidewalk steam cleaning? a. Yes b. No c. No Opinion 7. Would you support property owner funded planting, trimming and maintenance of trees, flowers and shrubs throughout the Downtown area to beautify the community? a. Yes b. No c. No Opinion ECONOMIC DEVELOPMENT AND MARKETING – The City branded Downtown San Leandro less than five years ago and embarked upon an aggressive campaign to attract desired retailers and brokers. The Downtown Association actively markets Downtown and manages events. The City financially supports the Downtown Associations efforts, however, continued funding is at risk. 8. Would you support property owner funded marketing and promotions campaigns to bring new business and attract new tenants to Downtown San Leandro? a. Yes b. No c. No Opinion 9. Would you support property owner funded special events and branding efforts to improve the identity and bring positive attention to the district? a. Yes b. No c. No Opinion 10. Would you support property owner funded parking mitigation and strategies to improve the parking experience of customers? a. Yes b. No c. No Opinion 11. Would you support property owner funded shuttle service to better connect downtown and BART? a. Yes b. No c. No Opinion 12. Would you be interested in serving on the Downtown San Leandro Special Benefits District Steering Committee to assist with the potential development of a SBD plan over the next few months? a. Yes b. No c. No Opinion Property Owner Name:___________________________________________________________ Authorized Representative’s Name:_________________________________________________ Property Site Address(es): ________________________________________________________ Mailing Address:___________________________ _____________________________________ Phone:_______________________________E-Mail:___________________________________ Please return the completed survey in the enclosed by Friday, September 28th in the selfaddressed envelope, or you may fax it to (619) 239-7105 or scan and e-mail it to monica@newcityamerica.com THANK YOU FOR TAKING THE TIME TO COMPLETE THIS SURVEY E 14TH ST DAVIS ST HAYS STSAN LEANDRO BL ALVARADO ST CLARKE ST CALLAN AV PARROTT ST HAAS AV PERALTA AV W JUANA AV WASHINGTON AV CARPENTIER ST JUANA AV BEST AV JOAQUIN AV ESTUDILLO AV WILLIAMS ST LORRAINE BL LEE AV CHUMALIA ST PERSHING DR MARTINEZ ST TOLER AV ORCHARD AV SANTA ROSA ST HUFF AV CASTRO ST LEO AV MAUD AV DOLORES AV PARK ST PACIFIC AV HARRISON ST W ESTUDILLO AV BIXCO ST HYDE ST BEGIER AV CALIFORNIA AV W JOAQUIN AV ARROYO AV THORNTON ST PALA AV ELSIE AV LILLE AV LAFAYETTE AV ARBOR DR RAMONA WY KAROL WY TIVOLI ST LOLA STANTONIO ST JEFFERSON ST WOODLAND PARK THORNTON ST W ESTUDILLO AV W ESTUDILLO AV W JOAQUIN AV 13-3 7-1-29-10 11-10-64-49-2 3-1 7-5 9-6-6 2-1-1 14-12-32-1 181-59-1 48-7 14-7 6-5-1 61-64-1-7-1 40-1 34-4-47-4 4-53-15-1 8-42-46-2 1-3 5-2 90-1-3 5-3-33-1 10-7 1-21 1-2 25-1 59-21-3 62-36-5-43-8-4-7-3 12-1 3-7-1 6-1 44-1 6-4 9-2 8-3 6-4-41-1 47-5-2 1-1-1 4-6 2-2 38-1 53-3-8-83-25-52-14-6 45-46-38-9-65-3 15-1 6-2 78-24-1 49-1 18-6-66-3-1 60-7-1 39-2-9-15-6 62-11-1 55-2 46-5 61-11-1-1 2-2 3-8-7-2 8-1 8-2 7-10-1 9-2 4-4-9-6-46-1 34-8-3-7-8-2 8-1-1-8-11-22-1 60-4-4-9-3-5-13-3 31-5-1 7-3 24-5-17-2-2-3 2-42-4 3-5-3-43-3 4-30-11-5-5-3 8-9-7-6-47-1 7-12-1-46-19-14-9-29-1 10-6-1 3-2 3-7-1 6-6 2-55-14-7 47-44-49-48-50-51-37-39-17-15-35-2 45-34-29-2-2-9-1-1 21-1-3-7-65-31-3-2 2-1 16-10-2 23-43-22-13-14-13-20-10-12-5-1 4-4-30-45-43-7-4 20-30-26-2 10-18-14-2 8-14-42-54-13-24-2 11-32-33-34-35-13-4 12-15-53-48-51-15-52-12-33-45-29-14-4 14-34-10-2 36-63-13-2 16-63-31-67-5-3 27-2 31-44-1 50-53-12-11-13-4-41-6-25-2 32-4-8 10-35-12-3 14-86-87-21-89-84-6-4 41-13-29-20-15-4-7 88-28-6-8 5-15-26-2 54-E 14TH ST DAVIS ST HAYS STSAN LEANDRO BL ALVARADO ST CLARKE ST CALLAN AV PARROTT ST PERALTA AV W JUANA AV WASHINGTON AV CARPENTIER ST BEST AV JUANA AV JOAQUIN AV ESTUDILLO AV WILLIAMS ST LEE AV LORRAINE BL PERSHING DR MARTINEZ ST CHUMALIA ST LEO AV PACIFIC AV ORCHARD AV CASTRO ST SANTA ROSA ST HUFF AV MAUD AV DOLORES AV PARK ST BIXCO ST HARRISON ST W ESTUDILLO AV HYDE ST ELSIE AV W JOAQUIN AV ARROYO AV THORNTON ST PALA AV LILLE AV ARBOR DR TIVOLI ST KAROL WY HARLAN ST LOLA ST ANTONIO ST JEFFERSON ST WOODLAND PARK THORNTON ST W ESTUDILLO AV W ESTUDILLO AV 13-3 7-1-29-10 11-10-64-3-1 7-5 9-6-6 2-1-1 14-12-32-1 181-48-7 6-5-1 61-64-1-7-1 40-1 34-4-47-4 53-15-1 8-42-46-2 5-2 90-1-3 5-3-33-1 10-7 1-2 25-1 59-21-3 62-36-5-43-8-4-7-3 12-1 3-7-1 6-1 44-1 6-4 9-2 8-3 6-4-41-1 1-1 47-5-2 1-2-2 2-2 38-1 3-3-53-8-83-8-25-52-14-6 45-46-38-9-65-3 15-1 6-2 7-2 78 24-1 49-1 18-7-6-66-3-1 10-1 60-9-2 4-39-4-9-6-2-46-1 34-8-3-9-15-6 62-7-8-2 11-1 8-1-1-8-11-22-1 60-4-4-9-3-5-13-3 31-5-1 7-3 5-24-17-2-2-42-4 3-5-3-43-3 55-2 30-11-5-3 8-9-7-6-47-1 7-12-1-46-19-46-5 14-9-19-2 10-6-1 3-2 3-7-1 2-55-14-7 47-44-48-49-50-51-37-39-17-15-35-2 45-34-29-2-2-9-61-1-1 21-1-7-65-2-116-10-2 23-43-22-13-14-13-20-10-12-5-1 4-4-30-45-43-7-4 11-20-30-26-2 10-18-14-2 14-42-54-13-24-2 11-13-4 12-15-53-48-51-15-52-12-33-45-29-14-4 14-34-10-2 63-13-2 16-63-31-67-5-3 27-2 31-44-1 50-53-12-11-13-4-41-6-25-2 32-10-35-12-3 14-86-87--21 89-84-41-13-29--20 15-88-28-5-15-15-26-2 54-85-6-68 69 70 71 73 72 74 75 76 77 46-1 0 500 Feet Ê Downtown San Leandro Proposed Special Bene􀏔its District 11/09/2012 Project Parcels Supportive Opposed LEGEND No Opinion City Parcels Residential State Parcels Condo 4-77-447 75-1 75-16 75-36 75-18 75-16 75-19 75-36 75-36 75-57 75-57 75-5075-36 75-47 75-39 75-39 75-23 75-39 75-21 75-14 75-12 75-6 75-5 77-545 77-549 77-550 77-530 77-529 77-528 77-540 77-54577-551 77-545 75-226 75-226 77-551 77-551 75-19 75-14 75-162 Downtown San Leandro Survey Results by Building, Lot and Frontage 11/8/2012 District Totals Bldg SF Total 1,555,867 Lot Sz Total 4,421,381 Frontage Total 43,183 100% 100% 100% Condo SF Total 345,894 100% Bldg SF Total 24,910 Lot Sz Total 727,769 Frontage Total 6,803 City 15.75% 16.46% 1.60% Condo SF Total 0.00% Bldg SF Total 428,054 Lot Sz Total 1,573,780 Frontage Total 11,944 Supportive 27.66% 35.59% 27.51% Condo SF Total 0.00% Bldg SF Total 73,787 Lot Sz Total 124,395 Frontage Total 1,220 Opposed 2.83% 2.81% 4.74% Condo SF Total 0.00% Bldg SF Total 30,582 Lot Sz Total 194,017 Frontage Total 1,657 No Opinion 3.84% 4.39% 1.97% Condo SF Total 0.00% Bldg SF Total 998,534 Lot Sz Total 1,789,518 Frontage Total 20,872 No Response 48.33% 40.47% 64.18% Condo SF Total 345,894 100.00% Bldg SF Total 0 Lot Sz Total 11,902 Frontage Total 687 State 1.59% 0.27% 0.00% Condo SF Total 0.00% New City America, Inc. 710 W. Ivy Street San Diego, California 92101 888-356-2726 City of San Leandro Meeting Date: November 19, 2012 Ordinance File Number: 12-538 Agenda Section: ACTION ITEMS Agenda Number: TO: City Council FROM: Chris Zapata City Manager BY: Cynthia Battenberg Business Development Manager FINANCE REVIEW: Not Applicable TITLE: PASS TO PRINT: An Ordinance Adding Title 2, Chapter 2-20 to the San Leandro Municipal Code Relating to the Establishment of Community Benefit Districts (enhances the ability of the City and property owners to establish property and business improvement districts aimed at improving the quality of life in neighborhood and mixed use commercial districts) WHEREAS, there are property owners in the City of San Leandro who desire to form property-based assessment districts for the purpose of enhancing the security, safety, appearance, and economic viability of their environs; and WHEREAS, the California Streets and Highways Code provides for the establishment of a property-based improvement district and requires that property owners in the proposed district submit a petition signed by property owners who will pay more than fifty (50) percent of the assessments proposed to be levied; and WHEREAS, the City Council believes that the fifty (50) percent petition requirement may result in areas with a large percentage of absentee property owners being denied the ability to vote on the merits of establishing a property and business improvement district; and WHEREAS, the California Streets and Highways Code limits the maximum number of years during which an assessment can be levied to five, and the City Council believes that it would be in the best interests of some property and business improvement districts to plan for expenditures in excess of five years, such as expenditures for the maintenance of improvements; and WHEREAS, the City Council desires to enact an enabling ordinance that will be responsive to the needs of property owners in the City by reducing the requisite property owner participation in the weighted petition to thirty (30) percent and increasing increasing the maximum number of years for which an assessment may be established to twenty (20) years for the purpose of funding special benefits conferred upon real property owners; and City of San Leandro Page 1 Printed on 11/13/2012 File Number: 12-538 WHEREAS, the City of San Leandro is a Charter City and the establishment of Community