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City Councilmembers ITEM NO. 21 STAFFREPORT CITYOF OCEANSIDE DATE: December 16, 2020 TO: Honorable Mayor and City Councilmembers FROM: City Manager’s Office SUBJECT: DOWNTOWN OCEANSIDE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT SYNOPSIS Staff recommends that the City Council receive and file the Downtown Oceanside Property and Business Improvement District's (DTOPBID) annual report for 2020-2021. BACKGROUND On August 7. 2019, the City Council conducted a public hearing regarding the proposed formation of the DTOPBID. authorized the City Clerk to count ballots received from affected property owners, and unanimously adopted Resolution 19-R0487—1 forming the DTOPBID, approving the Management District Plan, approving the assessment formula and levying the assessments. On December 19, 2019, the City Council approved an agreement with MainStreet Oceanside for implementation of the DTOPBID Management District Plan (MDP) and approved the draft by-Iaws proposed for the DTOPID Governing Committee. ANALYSIS The DTOPBID is a benefit assessment district with the primary purpose of providing improvements, maintenance and activities which constitute and convey a special benefit to assessed parcels. The DTOPBID began operation in January 2020 and is approved to operate for a period of five years. In accordance with the Property and Business Improvement District Law of 1994 and the DTOPBID MDP (Attachment 1), the City has contracted with MainStreet Oceanside (MSO) to manage the DTOPBID’s day-to-day operations with oversight from the DTOPBID Governing Committee and the Oceanside City Council. The DTOPBID MDP requires that MSO present an annual report (Attachment 2) at the end of each year of operation to the City Council. The annual report is a prospective report for the upcoming year and must include: - Any proposed changes in the boundaries of the DTOPBID or in any benefit zones or classification of property within the district; The improvements, maintenance and activities to be provided for that fiscal year; The estimated cost of providing the improvements, maintenance, and activities to be provided for that fiscal year; 0 The method and basis of levying the assessment in sufficient detail to allow each real property owner to estimate the amount of the assessment to be levied against his or her property for that fiscal year; c The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year; 0 The estimated amount of any contributions to be made from sources other than assessments levied pursuant to the MDP. DTOPBID improvements. maintenance and activities — including enhanced pressure washing of sidewalks and alleyways and a downtown ambassador program — were expected to begin in mid-2020; however, due to the COVlD-19 Pandemic. activities were delayed for several months. Activities are expected to begin in late 2020 or early 2021. The full. anticipated amount of $370,757.06 in assessments was collected for the DTOPBID in the first year of operation. FISCAL IMPACT The annual assessment for the twelve City-owned parcels within the DTOPBID boundaries is $83,024. Funds have been budgeted in the FY 2020-21 budget, account 170174101.5395.0032, for this purpose. INSURANCE REQUIREMENTS Not applicable. COMMISSION OR COMMI1TEE REPORT Not applicable. CITY A1TORNEY’S ANALYSIS The referenced documents have been reviewed by the City Attorney and approved as to form. RECOMMENDATION Staff recommends that the City Council receive and file the Downtown Oceanside Property and Business Improvement District's (DTOPBID) annual report for 2020-2021. PREPARED BY: SUBMITTED BY: Michelle Geller ' éeanna Lorson Economic Development Manager City Manager REVIEWED BY: Jonathan Borrego. Deputy City Manager Jane M. McPherson, Financial Services Director ATTACHMENTS 1. Management District Plan for the DTOPBID 2. DTOPBID 2020-2021 Annual Report ATTACH M ENT 1 2020-2024 DOWNTdIi/fi OCEANSIDE ffiOPERTY AND BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN & ENGINEER’S REPORT , ”14.1 Pnpamdpurmarlt to tbe Pmpely and Bminm Inqvmmt Dimict Law of 1994, firm: and ‘ Hg‘gbwqy: Code .rectian 36600 et seq. Aug”5t 5: 2019 CONTENTS I. Overview....................................................................................... ‘1 II. Impetus .......................................................................................... 2 III. Background..................................................................... IV. Boundaries..................... 4 V. Service Plan a: Budget......................................................................................................................... 5 A. Establishment 5 B. Improvements, Maintenance, and Activities 5 C. Annual Budget 6 D. Assessment Budget 7 E. Annual Maximum Budget 7 VI. Gwennnee .. ............................. B A. Owners’ Associalion 3 B. Brown Act 8: Public Records Act Compliance 8 C. Annual Report 8 VII. Engineer’s Report...................................................................... 9 A. Separation ofGeneral and Special Benefits 9 B. Assessment Methodology 1? C. Assessment Notice 20 D. Time and Manner for Collecting Assessments 20 E. Engineer's Certification 20 Appendix 1 — Maximum Annual Assessment Rates......................................................................................... 21 Appendix 2 — PBID Law .............. 22 Appendix 3 — Parcel Assessment Calculations .... ...... 34 Appendix 4 — Total Estimated Maidmum Cost ofImpmvements, Maintenance, and Activities ............ 41} Appendix 5 — Map .................................................................................................................................................. 4O Prepared by Civitas o l e 0 ‘ PAHTNI!HIPS - PIOIGRIPIOSPE§ www.civitasadvisorscom (800)999-7781 Downtown Oceanside PBID Management District Plan i I. OVERVIEW Developed by a growing coalition of property owners, the Downtown Oceanside Property and Business Improvement District (DTOPBID) is a benefit assessment district whose main goal is to provide improvements, maintenance, and activities which constitute and convey a special benefit to assessed parcels. This approach has been used successfully in other cities throughout the country to provide special benefits to property owners, namely increased sales, attraction ofnew tenants, increased occupancies, and specifically increased property values. As required by state law, property owners have created this Management District Plan (Plan) to form the DTOPBID. Location: The DTOPBID generally includes parcels in the downtown area of the City of Oceanside, as shown on the map in Section IV. Purpose: The purpose of the DTOPBID is to provide improvements, maintenance, and activities which constitute and convey a special benefit to assessed parcels. The DTOPBID will provide maintenance, economic development / capital improvements, safety, and related administration and advocacy programs directly and only to assessed parcels within its boundaries. Budget: The DTOPBID annual assessment budget for the initial year ofits five (5) year operation is anticipated to be $370,757.06. The annual budget may be subject to an increase in assessment rates of no more than three percent (3%) per year. The assessment funds will be supplemented by non—assessment funds (such as grants and event income), so that the total budget for the initial year is estimated at $392,600.24. Cost: The assessment rate (cost to the parcel owner) is based on parcel size and parcel type. The initial annual rate to each parcel is shown in the table below. Assessment rates may be subject to an increase of no more than three percent (3%) per year. Initial Parcel Assessment Rates Parcel Type Parcel Size (sq. ft.) Commercial 50.2500 Public 50.1875 Religious/Condo 50.1250 Formation: DTOPBID formation requires submittal of petitions from property owners representing more than fifty percent (50%) of the total assessment. The “Right to Vote on Taxes Act” (also known as Proposition 218) requires a ballot vote in which more than fifty percent (50%) of the ballots received, weighted by assessment, be in support of the DTOPBID. Duration: The DTOPBID will have a five (5) year life beginningjanuary 1, 2020 through December 31, 2024. Near the end of the term, the petition, ballot, and City Council heating process must be repeated for the DTOPBID to be renewed. Management: Main Street Oceanside, Inc. (MSO) will serve as the Owners’ Association to provide improvements, maintenance, and activities described in this Plan for the DTOPBID. The MSO Board ofDirectors shall form a new standing advisory committee to be known as the “Downtown Oceanside PBID Governing Committee” (PGC). The PGC shall possess the authority to manage DTOPBID assessment funds and full decision-making authority regarding DTOPBID programs. August 5, 2019 Downtown Oceanside PBID Management District Plan Page 1 II. IMPETUS There are several reasons why now is the time to form the DTOPBID. The most compelling reasons are as follows. I. The Need to be Proactive in Determining the Future ofDowntown Oceanside. In order to protect their investment, parcel owners must be partners in the process that determines the level and frequency of services, and how new improvements and development projects are implemented. The DTOPBID will allow these owners to lead and shape future services and improvements through the DTOPBID. 2. The Need to Attract New Business and Investment throughout Downtown Oceanside. If Downtown Oceanside is to compete as a successful commercial district it must
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