HomeMy WebLinkAboutStaff Report 206-06City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: CITY MANAGER
DATE:MAY 1, 2006 CMR: 206:06
SUBJECT:APPROVAL OF THE REPORT OF THE ADVISORY BOARD FOR
FISCAL YEAR 2006-07 IN CONNECTION WITH THE PALO ALTO
DOWNTOWN BUSINESS IMPROVEMENT DISTRICT; AND
RESOLUTION DECLARING INTENT TO LEVY AN ASSESSMENT
AGAINST BUSINESSES WITHIN THE DOWNTOWN PALO ALTO
BUSINESS IMPROVEMENT DISTRICT FOR 2006-07 AND SETTING A
TIME AND PLACE FOR A PUBLIC HEARING FOR MAY 15, 2006 AT
7:00 PM
RECOMMENDATION
Staff recommends that the City Council:
(a) Adopt a resolution preliminarily approving the BID Advisory Board’s 2006-2007 Budget
Report for the Downtown Palo Alto Business Improvement District.
(b) Adopt a Resolution of Intention to Levy Assessments in the Palo Alto Downtown Business
Improvement district for fiscal year 2006-2007 and set a date and time for the public hearing on
the levy of the proposed assessments for May 15, 2006 at 7:00 p.m.
BACKGROUND
The Palo Alto Downtown Business Improvement District (BID) was established by the City
Council in 2004 pursuant to the California Parking and Business Improvement Area Law to
promote the economic revitalization and physical maintenance of the Palo Alto Downtown
business district. The Council appointed the Board of Directors of the Palo Alto Downtown
Business and Professional Association, a non-profit corporation, as the Advisory Board
(Advisory Board) for the BID, to advise the Council on the method and basis for levy of
assessments in the BID and the expenditure of revenues derived from the assessments.
CMR: 206:06 Page 1 of 3
Pursuant to BID law, the Advisory Board must annually submit to the Council a report that
proposes a budget for the upcoming fiscal year for the BID. The report must: 1) propose any
boundary changes in the BID; 2) list the improvements and activities to be provided in the fiscal
year ;3) estimate the cost to provide the improvements and activities; 4) set forth the method and
basis for levy of assessments; 5) identify surplus or deficit revenues carried over from the prior
fiscal year; and 6) identify amounts of contributions from sources other than assessments.
The Council must then: 1) review the report and preliminarily approve it as proposed or as
changed by the Council; 2) adopt a resolution of intention to levy the assessments for the
upcoming fiscal year; and 3) set a date and time for the public hearing on the levy of assessments
in the BID. Absent a majority protest at the public hearing, at the conclusion of the public
hearing the Council may adopt a resolution confirming the report for Fiscal Year 2006-07 as
filed or as modified by the Council. The adoption of the resolution constitutes the levying of the
BID assessments for fiscal year 2006-07.
DISCUSSION
The Advisory Board has prepared a report (Attachment 1), for the Council’s consideration,
which includes the budget for the Palo Alto Downtown BID for fiscal year 2006-07. As required
by BID law, the report has been filed with the City Clerk and contains a list of the improvements,
activities, and associated costs proposed in the BID in fiscal year 2006-07. The Advisory Board
has recommended no change in the BID boundaries or the method and basis for levying
assessments. The activities and improvements are an extension of those initiated last year. The
estimated amount of carryover funds to be used to carry out activities is estimated to be $ 42,000.
A map of the Palo Alto Downtown BID is attached as Attachment 2. The proposed assessments
in the BID for fiscal year 2006-07 are the same as the assessments in fisc!l year 2005-06.
The budget report for fiscal year 2006-07 was reviewed and approved by the Palo Alto
Downtown Business and Professional Association at its board meeting on March 22, 2006.
RESOURCE IMPACTS
Adoption of the proposed BID budget does not directly impact City revenue. BID assessments
are restricted for use exclusively by the BID. It is anticipated that a healthy BID will encourage
growth of the retail community and consequently result in additional sales tax revenue for the
City. The Attorney’s Office will continue to provide legal oversight to the BID during the
annual reauthorization process. Administrative Services staff provides assistance in the
collection of BID assessments. Estimates indicate that the cost of collection by the City will
continue at the current level of $16,000. Any amount over the $5,000 allocated in the BID
budget will paid out of the City Manager’s contingency fund up to that level. The Economic
Development Manager will continue to provide oversight to the BID and will prepare the annual
reauthorization.
CMR: 206:06 Page 2 of 3
ENVIRONMENTAL REVIEW
This action by the City Council is not considered a project under the California
Environmental Quality Act.
ATTACHMENTS
Attachment 1:
Attachment 2:
Attachment 3:
Attachment 4:
Report of the Advisory Board with Regard to the Reauthorization of the
Downtown Palo Alto Business Improvement District for Fiscal Year
2006-07
Downtown Palo Alto Business Improvement District Map
Resolution of the City Council of the City of Palo Alto Approving
the Report of the Advisory Board for Fiscal Year 2006-07 in
connection with the Palo Alto Downtown Business Improvement
District
Resolution of the City Council of the City of Palo Alto Declaring its
Intention to Levy an Assessment Against Businesses Within the
Downtown Palo Alto Business Improvement District for Fiscal year
2006-07 and Set a Time and Place for hearing Objections
Thereto
PREPARED BY:
SUSAN ARPAN, Economic Development Manager
CITY MANAGER APPROVAL:
EMILY HARRISON, Assistant City Manager
CMR: 206:06 Page 3 of 3