HomeMy WebLinkAbout03-19-2019 Item 16 - Downtown Property-Based Improvement District Department Name: Administration
Cost Center: 1004
For Agenda of: March 19, 2019
Placement: Study Session
Estimated Time: 60 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Charlene Rosales, Economic Development Manager
SUBJECT: CONSIDERATION OF THE FORMATION OF A PROPERTY-BASED
BUSINESS IMPROVEMENT DISTRICT BY DOWNTOWN SLO
RECOMMENDATION
1. Receive a report from Downtown SLO (DSLO) on the feasibility of forming a Property-
Based Improvement District (PBID) and recommendations for t he management of a
downtown San Luis Obispo PBID; and
2. Provide direction to support a Downtown PBID and authorize the City Manager to
participate in the petition and ballot process in support of the formation on the City’s behalf.
DISCUSSION
During the 2017-19 Financial Planning process, the City Council identified “Downtown Vitality”
as an “Other Important Objective.” Part of the work plan for that goal was the study and potential
implementation of a downtown Property-Based Improvement District (PBID) for which the City
provided a grant of up to $75,000 to the San Luis Obispo Downtown Association (renamed
Downtown SLO in 2017) to hire a consultant to support those efforts.
Downtown SLO (DSLO) is the lead agency on this effort and hired Progressive Urban
Management Associates (PUMA) to perform the study and provide recommendations . Since
then, DSLO and PUMA have conducted outreach and engagement for this effort including an
online survey and several informational forums for property owners, business owners and
managers. DSLO representatives and City staff also visited several other successful PBID s to
gather insight and guidance.
Through this work, DSLO and PUMA have developed a proposed district boundary map
(Attachment A), a management plan outlining the governance structure and services offered
(Attachment B), a commitment on behalf of the City for continued baseline services (Attachment
C), a list of City properties and related assessments (Attachment D) and a timeline of key project
milestones. (Attachment E)
As this effort is being led by DSLO in coordination with the City, the majority of the
presentation will be led by DSLO and representatives from PUMA.
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Item 16
It is important to note that any services provided by a PBID would be in addition to the services
currently offered by the City (Attachment C). As such, no City services for downtown would be
reduced should a PBID be formed. Staff recommends that the Council authorize the City
Manager to participate in the petition and ballot process in support of a downtown PBID on the
City’s behalf.
Previous Council or Advisory Body Action
1. January 2017 - Council adopted “Downtown Vitality” as an “Other Important Objective” for
2017-19.
2. July 2017 - Council approved a grant of up to $75,000 to DSLO to hire a consultant to
conduct a feasibility study for a PBID.
3. Council adopted the Mission Plaza Master Plan.
4. September 2017 - Council adopted the Downtown Concept Plan and Mission Plaza Master
Plan.
5. February 2019 - Council adopted “Downtown Vitality” as a Major City Goal for the 2019-21
Financial Plan.
Policy Context
DSLO was founded in 1975 as a Business Improvement Association (BIA) when business
owners chose to charge themselves to provide resources to develop promotions, beautification
projects and parking programs in the downtown core. In 1998 the organization became the San
Luis Obispo Downtown Association and in 2008 changed its organizational structure from a City
advisory body to an independent 501(c)(6), which contracts with the City to administer the
exist ing BIA funding. The City has an ongoing partnership agreement with DSLO and has
benefited from a close working relationship for the betterment of businesses and tourism in the
downtown. The City also collects DSLO’s current BIA funding through the City’s business
license process and contracts with the DSLO to administer specified services supported by that
funding.
Public Engagement
DSLO has taken the lead and conducted community outreach and engagement for this effort
which includes, but is not limited to, direct outreach to property owners and business operators,
stakeholder meetings, visiting other PBIDs in like communities, a survey of members within the
existing Downtown Business I mprovement Area and public forums. DSLO has also continuously
engaged its committee members and Board of Directors throughout the past year and sought
input from business advocacy organizations and City staff.
ENVIRONMENTAL REVIEW
A PBID is a mechanism to fund Downtown SLO activities and does not constitute a “Project”
under the California Environmental Quality Act (CEQA) Guidelines Sec. 15378.
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FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-21
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Original
Budget
Current FY
Available
Balance
Annualized
On-going Cost
Total Project
Cost
General Fund $75,000
(one time)
$27,528.41 $62,023 (General
Fund)
$22,712
(Enterprise
Funds)
$137,023
(General Fund)
$22,712
(Enterprise
Funds)
State 0 0 0
Federal 0 0 0
Fees 0 0 0
Other: 0 0 0
Total $75,000 $27,528.41 $84,735 $159,735
The amount listed in the current fiscal year represents the balance of the grant amount for DSLO
for consultant support of the project. In addition, t he City is a property owner within the
Downtown district and as such would be required to pay the PBID assessment on the properties
located in the district . This amount is $84,735. Of that amount, $22,712 is the responsibility of
the Enterprise Funds. General Fund support for this effort will be requested through the 2019-21
Financial Plan in support of the Downtown Vitality Major City Goal. Also, several of the
properties included in the General Fund portion of the assessment are currently leased to various
community partners. The City will be engaging with those organizations during the leas e renewal
process to discuss options regarding the assessment.
ALTERNATIVES
If the City Council does not authorize the City Manager to participate in the petition and ballot
process in support of the formation on the City’s behalf, there are two alternatives to consider:
1. The City Council may authorize the City Manager to participate in the petition process and
not cast a vote in the ballot process, resulting in a “neutral” position. This is not
recommended as a PBID is the preferred tool to support enha nced downtown economic
development and increased safety, maintenance and beautification activities.
2. The City Council may direct staff to not support the creation of a PBID and not authorize the
City Manager to participate in the petition and ballot process in support of a downtown PBID
on the City’s behalf. This is not recommended as a PBID is the preferred tool to support
enhanced downtown economic development and increased safety, maintenance and
beautification activities.
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Attachments:
a - Proposed Property Based District Boundary
b - Management District Plan
c - City of San Luis Obispo Level of Service 1.31.19
d - City of SLO Assessments 2-14-2019
e - PBID Timeline and Milestones
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Proposed Property Based Improvement District Boundary
Legend
Parcels
PBID Core Zone
PBID Boundary
Z 0 100 200 300 400 500 600 700 800 900 1,000
Feet SLOGIS
20190225
The Proposed PBID boundary is created based on a map graphic provided by Downtown Association on January 29th, 2019. The PBID boundary
generally follows the parcel boundary except for the small corridor/common area parcel located on Pacific Street between Morro Street and Osos
Street. This is not the official PBID boundary.
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City of San Luis Obispo, California
March 2019
Prepared by:
Kristin Lowell, Inc. and
Progressive Urban Management Associates
Prepared pursuant to the State of California
Property and Business Assessment District Law of 1994
to create a Property-Based Business Improvement District, and
Article XIIID of the California Constitution.
Downtown San Luis Obispo
Property-Based Business Improvement District
Management District Plan
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DOWNTOWN SAN LUIS OBISPO
Property-Based Business Improvement District
Management District Plan
Table of Contents
Section Number Page Number
1. Executive Summary ........................................................................... 1
2. Why Form a PBID? ............................................................................. 5
3. PBID Boundary ................................................................................... 7
4. PBID Activity and Improvement Plan ................................................ 9
5. PBID Assessment Budget................................................................ 13
6. Assessment Methodology ............................................................... 14
7. PBID Governance ............................................................................. 20
8. Implementation Timeline.................................................................. 21
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Downtown San Luis Obispo PBID March 2019
Management District Plan Page 1 of 21
SECTION 1: EXECUTIVE SUMMARY
In late 2017, a Downtown San Luis Obispo PBID Steering Committee evaluated the feasibility for
forming a Property-Based Business Improvement District (PBID) encompassing the area serviced
by the existing BIA and expanding northeast to Pepper Street. With coordination from Downtown
SLO, one-on-one and group meetings with area property owners, business owners, and residents
found interest in and support for the PBID concept.
PBIDs collect a self-governed assessment on property to provide enhanced services beyond
those provided by the City, including environmental enhancements such as safety, maintenance
and beautification services, and economic enhancements to strengthen the business mix of
commercial districts. More than 100 PBIDs now exist in downtowns and urban districts throughout
the State of California since enabling legislation for PBIDs was adopted more than 20 years ago.
Summary Management Plan
Pursuant to California Streets and Highways Code, the “Property and Business Improvement
District Law of 1994 as amended”, the PBID is being formed for a five-year term. Upon receipt of
petitions signed by property owners representing greater than 50% of the PBID budget, the City
of San Luis Obispo will initiate a ballot procedure to officially establish the Downtown San Luis
Obispo PBID.
Location The district is concentrated along the Monterey and Higuera corridors (from
Beach Street to Pepper Street; the Palm Street corridor (from Nipomo Street
to Santa Rosa Street); the Marsh Street corridor (from Beach Street to Toro
Street), and the Pacific Street corridor (from Nipomo Street to Santa Rosa
Street).
Improvements
& Activities
A Safe, Welcoming, and Vibrant Downtown: The PBID will finance
improvements and activities that will improve Downtown San Luis Obispo’s
environment for property owners, businesses, residents, workers, and
visitors, including:
• Expanded Downtown Ambassador program – provide visitor
information; homeless services outreach and referrals; coordination
with local police and property and business owners to prevent crime;
safety escorts; merchant outreach; event support; city services liaison
• Maintenance services that include cohesive and consistent sidewalk
sweeping, scrubbing, and power washing; litter and graffiti removal;
maintain landscaping; more frequent and thorough trash removal
• Beautification and cosmetic improvements to make Downtown more
attractive and welcoming, which may include: sidewalk repair,
enhanced landscaping and lighting, wayfinding signage,
streetscaping, planters, public art, parklets, bicycle parking, etc.
The BIA will remain in place and continue to focus on initiatives including
special events and the Farmers’ Market, parking and access efforts,
marketing and promotions.
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Downtown San Luis Obispo PBID March 2019
Management District Plan Page 2 of 21
Method of
Financing
Levy of assessments upon real property that benefit from improvements and
activities.
Budget Total PBID assessment budget for its first year of operations in $800,000, as
follows:
EXPENDITURES BUDGET % of Budget
Downtown Ambassadors/Cleaning $500,000 62.50%
Beautification & Placemaking $150,000 18.75%
Operations & Communications $100,000 18.75%
Total Expenditures $800,000 100.00%
REVENUES
Assessment Revenues $780,000 97.50%
Other Revenues (1) $20,000 2.50%
Total Assessment District Revenues $800,000 100.00%
Note 1 – General Benefit Allowance: An allowance is made for general benefits
that the PBID may provide to either the parcels outside the PBID boundary or to the
public at large. Any PBID services that are found to provide general benefit cannot
be paid for with assessment revenue. A certified engineer has estimated that the
general benefit from services accounts for $20,000 of the estimated budget, resulting
in a total assessment budget of $780,000.
Cost Annual assessments are based upon an allocation of program costs and a
calculation of land square footage, building square footage, and linear street
frontage.
Estimated annual maximum assessment rates for properties during the first
year of the PBID are as follows:
Estimated Annual Assessment
Rates
Lot + Building
Sq.Ft.
Linear
Frontage
(per foot)
General Downtown 0.0666 $ 7.3122
Core $ 14.6244
The “Core” is defined as all parcels that front Higuera between Nipomo and
Osos; those that front Monterey between Chorro and Osos; and those that
front the one-block of side streets between Higuera and Monterey in this
stretch (Chorro, Morro, and Osos).
Assessment considerations:
• Base Costs: Lot plus building square footage is the assessment variable
for half of the costs. Linear frontage accounts for the other half. Benefits
from environmental enhancements such as the ambassadors, cleaning,
and beautification are felt throughout the PBID, regardless of use.
Several of these benefits are dedicated to making Downtown sidewalks
cleaner and safer, and therefore linear frontage was included.
• Core Costs: This area experiences the most intense foot traffic in
Downtown, and in turn, is where some of the cleanliness and safety
issues are concentrated. It is therefore proposed that this Core area
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Item 16
Downtown San Luis Obispo PBID March 2019
Management District Plan Page 3 of 21
receive enhanced Ambassador and maintenance services above and
beyond that of the rest of the PBID. This is reflected in higher linear
footage assessment rates.
Cap Annual assessments may increase no more than 5% per year consistent with
the increase in consumer price index (CPI) and increases in program costs.
The determination of annual adjustments in assessment rates will be subject
to the review and approval of the PBID board of directors. The board will
develop annual budgets, and an independent audit will be performed each
year.
City Services The City of San Luis Obispo has provided an accounting of baseline services
that are currently provided within the PBID boundary and will continue to
provide.
Collection PBID assessments appear as a separate line item on the annual County of
San Luis Obispo property tax bills.
PBID
Governance
Decisions related to the implementation of the Management Plan, including
annual work programs, budgets and assessments, will be made by a new,
PBID board of directors. Since Downtown will now have two improvement
districts functioning concurrently, the following governance structure is
proposed for Downtown SLO in order for these to function efficiently and in
cooperation with each other:
• A new PBID board of directors made up of property owners. A 7-11
member board is recommended, including representation from the
following:
o All geographic areas served by the PBID
o A variety of property types, including retail, office, hotel, and
residential
o Both large and small property owners
o The City Manager and/or his/her designee
o The County Administrative Officer and/or his/her designee
• The existing BIA board of directors remains intact. This board is made
up of Downtown business owners (some of which are also property
owners), and currently contains 15 members.
• A new Downtown SLO Executive Committee. This committee would
contain several members of the PBID board and BIA board. It would meet
periodically to provide oversight of overall Downtown SLO functions,
ensuring coordination across both improvement districts.
• Some of the existing Downtown SLO committees will need to remain
(e.g., Farmers’ Market), but others can be consolidated.
PBID
Formation
California law for PBID district formation requires the submission of petitions
signed by property owners in the proposed PBID who will pay more than 50%
of the total assessments (i.e. petitions must represent more than 50% of the
$780,000 to be assessed). Petitions are submitted to the San Luis Obispo
City Council and the City will mail ballots to all affected property owners. The
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Downtown San Luis Obispo PBID March 2019
Management District Plan Page 4 of 21
majority of ballots returned, as weighted by assessments to be paid, must be
in favor of the PBID in order for the City Council to consider approval.
Duration Collection of the first year’s assessments will be included in San Luis Obispo
County’s 2019-20 tax bill. Services will begin January 1, 2020 and continue
through December 31, 2024. Any subsequent renewal of the PBID will require
a new management plan, petition, and mail ballot process.
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Downtown San Luis Obispo PBID March 2019
Management District Plan Page 5 of 21
SECTION 2: WHY FORM THE PBID?
What is a PBID?
The International Downtown Association estimates that more than 1,000 property-based business
improvement districts (PBID) currently operate throughout the United States and Canada. A PBID
provides enhanced improvements and activities, such as public safety, maintenance and image
enhancement, in addition to those provided by local government. PBIDs provide services that
improve the overall viability of business districts, resulting in higher property values, sales and tax
revenues. Since the creation of California’s Property and Business Improvement District Law in
1994, more than 100 new PBIDs have been established in California downtowns and other
commercial districts, including Los Angeles, Pasadena and Ventura.
In late 2017, a Downtown San Luis Obispo PBID Steering Committee evaluated the feasibility for
establishing a PBID encompassing the area serviced by the existing BIA and expanding northeast
to Pepper Street. With coordination from Downtown SLO, one-on-one and group meetings with
area property owners, business owners, and residents found interest in and support for the PBID
concept.
Key findings included:
1. Downtown is Changing:
• Downtown has experienced positive growth
o Expanded footprint – downtown boundaries are very different now than in the
1970s; particularly its northeastward expansion along Monterey and Higuera
Streets
o New residents and jobs
o Growing tech community
• There are new challenges that have arrived with this growth
o A growing transient population
o Nightlife nuisances
o Cleanliness – Sidewalks, the creek; trash collection; Lack of consistency when
it comes to this
o Parking challenges – Both a real and perceived issue; keeps some people
away; shifts with changes in mobility habits
• Growing competition locally, regionally and nationally
o University Square for Cal Poly students nearby;
o Several other communities (i.e., Paso Robles) regionally with improving
downtowns
o Shifting customer preferences and more online shopping; there is a need to
keep experiences high-quality and authentic
2. Downtown is currently served by an outdated and overcapacity management model:
• Downtown SLO is operating beyond its budget and original charge
o Downtown SLO was established in 1975 with the mission to foster an
economically vibrant Downtown.
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Downtown San Luis Obispo PBID March 2019
Management District Plan Page 6 of 21
o Ability to effectively market, promote, and manage downtown events and
business promotions, but challenging to address many of the new issues
arising Downtown.
• City constraints
o The City has obligations and responsibilities citywide; while Downtown is in
need of direct focus due to issues discussed above.
o Challenging to move projects quickly in downtown, which in part results in lots
of new development out by the airport.
o Lack of enforcement of aggressive panhandling
3. There is an opportunity to collaborate and move forward in a new way:
• Downtown’s issues require new approached and services
o Growing challenges with increasingly aggressive and illegal behaviors;
cleanliness and maintenance concerns
• City could benefit from a more sophisticated partner
o Updated downtown management organization that can contribute to
downtown’s new and complex challenges
o So many potential improvements in the pipeline (Concept Plan, Mission Plaza)
– how to maintain and operate all of these once completed
A new PBID designed for market conditions in 2019 and beyond could help Downtown confront
its challenges moving forward, update its current management model, and establish a more
sophisticated partnership between the Downtown organization and the City.
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Downtown San Luis Obispo PBID March 2019
Management District Plan Page 7 of 21
SECTION 3: PBID BOUNDARY
PBID Boundary
The PBID encompasses approximately 35 whole and partial blocks of Downtown San Luis
Obispo. The district is concentrated along Monterey Street and Higuera Street (from Beach Street
to Pepper Street); Palm Street (from Nipomo Street to Santa Rosa Street); Marsh Street (from
Beach Street to Toro Street), and Pacific Street (from Nipomo Street to Santa Rosa Street).
Benefit Zones
Core Zone: The Core Zone contains the highest concentration of commercial uses in the PBID
and the highest pedestrian counts. This area experiences the most intense foot traffic in
Downtown, and in turn, is where some of the cleanliness and safety issues are concentrated. It is
therefore proposed that this Core area receive enhanced Ambassador and maintenance services
above and beyond that of the rest of the district. The Core Zone is made up of all parcels that
front either: Monterey Street between Chorro Street and Osos Street, and Higuera Street between
Nipomo Street and Osos Street, and all cross streets within this quadrant. The Core Zone parcels
will receive a linear frontage assessment twice that of the parcels in the General Downtown Zone
to account for the higher level of services they will receive.
General Downtown Zone: The General Downtown Zone is all other parcels within the PBID
boundary that are not located within the Core Zone. The General Downtown Zone has a lower
demand for services and therefore will be assessed in direct relationship to the services the
General Downtown Zone receives.
A map of the proposed PBID boundary and benefit zones is on the following page.
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SECTION 4: PBID ACTIVITY AND IMPROVEMENT PLAN
Background and Feasibility
As determined by area property and business owners, the top priority for services and activities
within the Downtown San Luis Obispo PBID area include:
⧫ Downtown Ambassadors
⧫ Maintenance Services
⧫ Beautification and Cosmetic Improvements
Based upon these findings, the following Environmental Activities will be funded by the PBID. The
following narrative provides recommendations for the PBID’s first year of operation. PBID activities
may be amended in subsequent years within the following general categories. Final activities and
budgets will be subject to the review and approval of the PBID Owners’ Association prior to City
Council approval.
Environmental Activities
To respond to stakeholder priorities and guiding principles to make Downtown San Luis Obispo
more welcoming, clean and beautiful, the PBID will fund an expansion of the existing Ambassador
program as well increased maintenance and beautification efforts. The PBID Environmental
Activities are intended to improve commerce and quality of life by making each individually
assessed parcel safer, cleaner and more attractive, which will encourage investment dollars and
generate additional pedestrian traffic.
In order to better understand how the proposed PBID services could be deployed downtown,
Downtown SLO engaged Block by Block, a national Clean and Safe service provider that
specializes in urban PBIDs (including downtown Oakland, Santa Monica and Long Beach), to
provide a recommendation of how the clean and safe activities should be delivered downtown.
Based on their findings, the following is a multi-dimensional approach for providing a safer,
cleaner and more aesthetically appealing downtown.
Downtown Ambassadors
Deter and Report
• Continually circulate through assigned zone on foot and bicycle
to provide high visibility to deter illegal or threatening behaviors
• Report illegal and threatening activities, crimes or disturbances to
Police for response
• Assist police by being “witness complainants” in cases involving
Ambassadors
Quality of Life Crime Deterrence
• Ambassadors will engage people who are engaging in aggressive
panhandling, to suggest and coordinate services.
• Document each engagement and activity to track the frequency
of illegal and threatening behaviors to mobilize enforcement
efforts of those people resisting services
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Continual Engagement of the Homeless Population
• Continually circulate through the district to identify the population that is engaged in illegal
or threatening behaviors
• Engage homeless people to build relationships and encourage assistance from social
service providers to coordinate service delivery
• Triage the needs of homeless people to encourage appropriate services from provider
agencies
• Document all interactions so that these individuals can be prioritized based on need
Safety Escorts
• Ambassadors can meet downtown employees or visitors at their location and escort them
to their destination within the PBID boundary
• Pedestrians can request a safety escort by contacting the promoted number, which is the
shared cell phone carried by on-duty staff members
Public Engagement & Hospitality
• Ambassadors will be a highly visible presence continually circulating throughout their
assigned zones
• Ambassadors will engage visitors of the public with a friendly greeting and be very
responsive to opportunities to provide directions, recommendations, or assistance
• Ambassadors ultimately will be one of the caring faces of Downtown
Reporting
Ambassadors document their activities and accomplishments in the field in order to track:
• All tasks to substantiate activity
• Incident Reports
Maintenance Services
Litter
Debris will be removed from sidewalks, alleys and street gutters. Debris includes: Loose trash |
Cigarette butts | Sediment and loose rock
Weeds
Weeds will be removed from sidewalk cracks and building lines.
Isolated weeds will be pulled while Ambassadors are on manual cleaning patrol. Areas of
widespread growth will be removed by using a weed eater.
Graffiti
Graffiti will be removed immediately upon identification from public fixtures such as light posts,
utility boxes and signs using the least evasive methods possible. Our methods of graffiti removal
include wiping with graffiti removal chemicals, scraping, painting, or power washing.
Attention to Detail
While on normal cleaning rounds Ambassadors will be trained to tend to nearly every detail they
might encounter in the public right of way to include: damp wipe public fixtures, such as trash can
lids, to create a clean appearance, damp wiping and inspecting the inside of fixed news rack
corrals for litter and debris Inspecting free publication boxes to make sure litter or other items are
not placed inside.
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Power Washing
Block by Block will provide the following type of power
washing:
• Regularly Scheduled Washing – The entirety of
the district will be washed on a bi-annual basis
• Spot Washing – we will work to immediately
address unsightly spills and stains in the district
Special Projects
Special projects will be initiated to tackle issues that are overlooked or items that can leave a
lasting impression on stakeholders in the Downtown. Special project opportunities include:
painting of street fixtures to include utility boxes, benches, light poles, etc, thorough cleaning of
tree wells, power washing and repair of waste cans, and thorough scrubbing and cleaning of
street fixtures.
Hospitality Services
All Ambassadors will be selected based on their willingness and ability to interact with the public.
Once hired they will be trained and expected to recognize hospitality needs in order to provide a
greeting, directions, recommendations, or to answer any question the public might have.
Based on the preceding recommendation of services, below is the estimated deployment
schedule. However, every year the Owners' Association shall determine the actual deployment
frequency with the understanding that the parcels in the Core Zone shall receive a higher level of
service than those parcels in the General Downtown Zone.
• The Operations Manager serves supplements the Cleaning Ambassadors during the week
• There are two (2) Safety Ambassadors and one (1) Safety Team Lead that work Tuesday through
Saturday evening.
• These hours are estimated, can be adjusted to address peak tourist season, special events and
other circumstances.
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Beautification & Placemaking
In addition to clean and safe services, the PBID budget may include
funds for beautification and placemaking improvements that are
defined as cosmetic enhancements that improve the appearance
and walkability within the PBID, in turn encouraging customer traffic
and improved quality of life for residents. Examples of beautification
improvements might include:
• Directional/wayfinding signage or themed signage
• Street furniture and amenities, such as benches, kiosks and
lighting
• Design and installation of flowering planters and baskets
• Design and installation of art and decorative elements
• Holiday décor or tree lighting
• Bicycle racks and other hardware
• Urban design and/or planning services to advance beautification efforts
• Other cosmetic enhancements that improve the PBID’s appearance
Operations & Communication
The Downtown San Luis Obispo PBID will be managed by a full-time staff that oversees the
PBID’s services and actively advocates on behalf of the PBID property owners to ensure that City
and County services and policies support the PBID. The special benefit to parcels from these
services is increased business revenue and tenant occupancy due to increased commercial
activity and enhanced commerce in part due to the work of the management staff as stated above.
Also included in this budget item are costs to renew the PBID, conduct a yearly financial review,
City fees, and uncollectible assessments.
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SECTION 5: PBID ASSESSMENT BUDGET
2020 PBID Assessment Budget
The following table outlines the PBID maximum assessment budget for 2020.
EXPENDITURES
TOTAL
BUDGET
% of
Budget
Downtown Ambassadors/Cleaning $500,000.00 62.50%
Beautification and Placemaking $150,000.00 18.75%
Operations and Communications $150,000.00 18.75%
Total Expenditures $800,000.00 100.00%
REVENUES
Assessment Revenues $780,000.00 97.50%
Other Revenues (1) $20,000.00 2.50%
Total Revenues $800,000.00 100.00%
(1) Other non-assessment funding to cover the cost associated with general benefit.
Budget Adjustments
Annual assessments may increase no more than 5% per year, consistent with the increase in
consumer price index (CPI) and/or other increases in program costs. The determination of annual
adjustments in assessment rates will be subject to the review and approval of the board of the
Owners’ Association.
5-Year Maximum Budget
The following table illustrates the PBID’s maximum annual budget for the 5-year life term,
adjusting it by the maximum 5% inflation factor.
PBID ACTIVITY FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24
Downtown Ambassadors/Cleaning $500,000 $525,000 $551,250 $578,813 $607,753
Beautification and Placemaking $150,000 $157,500 $165,375 $173,644 $182,326
Operations and Communications $150,000 $157,500 $165,375 $173,644 $182,326
TOTAL: $800,000 $840,000 $882,000 $926,100 $972,405
Bond Issuance
No bonds will be issued to finance improvements.
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SECTION 6: ASSESSMENT METHODOLOGY
General
This Management District Plan provides for the levy of assessments for the purpose of providing
services and activities that specially benefit real property in the PBID. These assessments are
not taxes for the general benefit of the City, but are assessments for the services and activities
which confer special benefits upon the real property for which the services and activities are
provided.
Assessment Factors
Each parcel’s proportional special benefit from the PBID activities is determined by analyzing
three land use factors: Building Square Footage, Lot Square Footage, and Linear Street
Frontage. These land use factors are an equitable way to identify the proportional special benefit
that each of the parcels receive. Building square footage is relevant to the current use of a
property and is also closely correlated to the potential pedestrian traffic from each parcel and the
demand for PBID activities. A parcel’s lot square footage reflects the long-term value implications
of the improvement district. A parcel’s linear street frontage is relevant to the street level usage
of a parcel and the demand for PBID activities. Together, these land use factors serve as the
basic unit of measure to calculate how much special benefit each parcel receives in relationship
to the district as a whole, which is the basis to then proportionately allocate the cost of the special
benefits.
Building square footage is defined as the total building square footage as determined by the
outside measurements of a building. The gross building square footage is taken from the County
of San Luis Obispo Assessor’s records. Fifty percent (50%) of the assessment budget is allocated
to the sum of building square footage plus lot square footage to account for the special benefit to
each parcel’s land uses, its residents, and tenants and the long term development potential.
Lot square footage is defined as the total amount of area within the boundaries of the parcel.
The boundaries of a parcel are defined on the County Assessor parcel maps. Fifty percent (50%)
of the assessment budget is allocated to the sum of building square footage plus lot square
footage to account for the special benefit to each parcel’s land uses, its residents, and tenants
and the long-term development potential.
Linear street frontage is defined as the number of linear feet of each parcel that directly fronts
a street that will receive the PBID activities. Corner parcels or whole block parcels will be
assessed for the sum of all the parcels’ street frontage. Fifty percent (50%) of the assessment
budget is allocated to linear street frontage to account for the special benefit received at the street
level of each parcel.
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Special Benefit Analysis
All special benefits derived from the assessments outlined in this report are for property related
activities directly benefiting each individual assessed parcel in the PBID. The special benefit must
affect the individual assessable parcel in a way that is particular and distinct from its effect on
other parcels, and that real property in general and the public at large do not share. No parcel’s
assessment shall be greater than the special benefits received.
Streets and Highways Code Section 36601(e) states that “Property and Business Assessment
Districts formed throughout this state have conferred special benefits upon properties and
businesses within their districts, and have made those properties and businesses more useful by
providing the following benefits: (1) Crime reduction. A study by the Rand Corporation has
confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the
total incidence of violent crimes within the 30 districts studied. (2) Job creation. (3) Business
attraction. (4) Business retention. (5) Economic growth. (6) New investments.”
The PBID’s goal is to fund activities and improvements that provide a cleaner, safer, and more
attractive and economically vibrant environment as outlined in Section 4. The goal of improving
the economic vitality is achieved by improving the safety, cleanliness, and economic vitality of
each specially benefitted parcel in an effort to increase commerce, to increase building occupancy
and revenues, and to attract more customers, employees, tenants, investors and residents.
Specifically, each parcel specially benefits from each of the PBID activities as defined below.
Environmental Activities
The enhanced downtown ambassadors, cleaning and beautification activities make the area safer
and more attractive for businesses, customers, residents, and ultimately private investment.
When business location decisions are made, “lower levels of public safety lead to increased
uncertainty in decision making and can be perceived as a signal of a socio-institutional
environment unfavorable for investment. Uncertainty affects the investment environment in
general. But in particular, it increases the fear of physical damage to investment assets (or to
people) or their returns…Almost universally, places with lower crime rates are perceived as more
desirable”.1 Once economic investment occurs within the district, pedestrian traffic and
commercial activity will increase.
All parcels will specially benefit from these activities, such as:
• Increased security patrol to provide a higher level of safety to property, residents,
customers, employees and visitors as they pass through the district;
• Enhancing safety patrols to deter illegal behaviors, such as vandalism and threatening
behaviors;
• Connecting the homeless to available resources and/or social services;
• Removing graffiti from buildings to keep the aesthetic appeal uniform throughout the
district;
• Maintaining sidewalks in front of each parcel creates a cohesive environment and allows
pedestrians to move freely throughout the district. “Walkable communities offer many
financial benefits, such as a reduction in healthcare costs. Homes with sidewalks tend to
1 “Accelerating economic growth and vitality through smarter public safety management” IBM Global Business
Services Executive Report, September 2012, pg. 2
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sell for more money and in less time than similar homes without sidewalks. Businesses
also benefit as residents are more likely to shop locally when there is increased
connectivity between residential and business/commercial districts. The well-maintained
sidewalks, accessibility, and inviting atmosphere of downtown helps to attract tourists.”2
Special Benefit Conclusion
Based on the special benefits each assessed parcel receives from the PBID activities, we
concluded that each of the proposed activities provides special benefits to the real property within
the PBID, and that each parcel’s assessment is in direct relationship to and no greater than the
special benefits received.
The special benefit to parcels from the proposed PBID activities and improvements described in
this report is equal to or exceeds the total amount of the proposed assessment. Each individual
assessed parcel’s assessment is no greater than the special benefit it receives from the PBID
activities.
General Benefit Analysis
As required by the State Constitution Article XIIID Section 4(a), the general benefits of an
assessment district must be quantified and separated out so that the cost of the activities that are
attributed to general benefit are deducted from the cost assessed against each specially
benefitted parcel. General benefits are benefits from the PBID activities and improvements that
are not special in nature, are not “particular and distinct”, and are not over and above the benefits
that other parcels receive. This analysis will evaluate and determine the level of general benefits
that (1) parcels inside of the PBID, (2) parcels outside of the PBID, and (3) the public at large may
receive.
General Benefit to Parcels Inside of the PBID
The PBID provides funds for activities and improvements that are designed and created to provide
special benefits to each individually assessed parcel within the PBID. Each individual assessed
parcel will specially benefit from the cleaner and safer public rights-of-way and, thus 100% of the
benefits conferred on the parcels within the PBID are distinct and special in nature, and that there
is no general benefit to these parcels.
General Benefit to Parcels Outside of the PBID
All the PBID activities and improvements are provided solely to each of the individual assessed
parcels in the Downtown San Luis Obispo PBID boundary. Each of the PBID activities is provided
to the public rights-of-way (streets, sidewalks) adjacent to all specially benefitted parcels in the
PBID. None of the surrounding parcels will directly receive any of the PBID activities. Any
benefits these parcels may receive are incidental to providing special benefits to the assessed
parcels, and thus any cost associated to the incidental benefits are not reduced from the cost of
providing special benefit.
General Benefit to the Public At Large
In addition to general benefit analysis to the parcels outside of the Downtown San Luis Obispo
PBID boundary, there may be general benefits to the public at large, i.e., those people that are
either in the PBID boundary and not specially benefitted from the activities, or people outside of
the PBID boundary that may benefit from the PBID activities. In the case of the Downtown San
2 “Benefits of Sidewalks”, Iowa Healthiest State Initiative, November 1, 2017
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Luis Obispo PBID, the public at large are those people that are within the PBID boundary that do
not pay an assessment and do not specially benefit from the PBID activities.
To calculate the general benefit the public at large may receive we determine the percentage of
each PBID activity budget that may benefit the general public. In this case, the environmental
activities as well as the operation and communication activities may benefit the general public to
some degree, as the general public may appreciate the enhanced level of maintenance and
security as it passes through the district. To quantify this, we first determine a general benefit
factor for the environmental activities. The general benefit factor is a unit of measure that
compares the special benefit that the assessed parcels receive compared to the general benefit
that the general public receives. To determine the general benefit factor, we used previous
districts that conducted intercept surveys in San Francisco (Union Square and West Portal) and
Los Angeles (Historic Downtown, Leimert Park, Arts District, Downtown Industrial, Fashion
District, and Sherman Oaks). The intent of the surveys was to determine what percentage of the
general public was just passing through the district without any intent to engage in commercial
activity. The surveys concluded that on average 1.4% of the respondents were within the PBID
boundary with no intent to engage in any business activity. Here, since the PBID is designed to
promote a business and residential climate that encourages development, investment, and
commerce, it follows that the benefits received by these pedestrians do not translate to a special
benefit to the assessed parcels. In other words, based on the results of these surveys it is
reasonable to conclude that 1.4% of environmental activities provide general benefits. However,
to be conservative and to account for any variance in district type, size and services provided, we
applied a 2.5% general public benefit factor to account for these variances. The general benefit
factor is then multiplied by the PBID budget to determine the overall general. The following table
illustrates this calculation.
A B C
Activity
Budget
Amount
General
Benefit
Factor
General Benefit
Allocation (A x B)
PBID Budget $800,000 2.5% $20,000
This analysis indicates that $20,000 of the PBID activities may be attributed to general benefit to
the public at large, and must be raised from sources other than special assessments.
General Benefit Conclusion
Using the sum of the three measures of general benefit described above we find that $20,000 or
2.5% of the total budget may be general in nature and will be funded from sources other than
special assessments.
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Assessment Calculation
As previously discussed, the PBID services and activities will be allocated into two benefit zones.
To apportion the cost of the special benefits received from these services is in direct relationship
to each lot square footage, building square footage and linear street frontage. Each benefit zone’s
land use characteristics and assessment factors are as follows:
Benefit Zone Lot Sq.Ft. Bldg Sq.Ft. Linear Frontage
Core Zone 711,684 700,786 6,205
General Downtown 2,966,274 1,477,195 40,926
Based on the parcel characteristics the following are the calculated rates for each assessment
factor and each benefit zone for fiscal year 2019/2020.
Estimated Annual Assessment
Rates
Lot + Building
Sq.Ft.
Linear
Frontage
(per foot)
General Downtown 0.0666 $ 7.3122
Core $ 14.6244
Sample Parcel Assessments
To calculate the assessment for a parcel within the Core Zone with 10,000 square foot lot +
building plus 50 linear feet, the calculation is as follows:
Lot + Building: 10,000 x $0.0666 = ........................................ $666.00
Linear Frontage: 50 x $14.6244 = ......................................... $731.22
TOTAL ASSESSMENT: ...................................................... $1,397.22
To calculate the assessment for a similar parcel in the General Downtown Zone, the calculation
is as follows:
Lot + Building: 10,000 x $0.0666 = ........................................ $666.00
Linear Frontage: 50 x $7.3122 = ........................................... $365.61
TOTAL ASSESSMENT: ...................................................... $1,031.61
The assessment calculation is the same for every parcel in the Downtown San Luis Obispo
PBID respective of its benefit zone.
Annual Assessment Adjustments
Budget Adjustment
Annual assessments may increase no more than 5% per year, consistent with the increase in
consumer price index (CPI) and increases in program costs. The determination of annual
adjustments in assessment rates will be subject to the review and approval of the Owners’
Association of the Downtown San Luis Obispo PBID.
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Time and Manner for Collecting Assessments
As provided by state law, the Downtown San Luis Obispo PBID assessment will appear as a
separate line item on the annual San Luis Obispo County property tax bills, or by a special manual
bill prepared by the PBID and either paid in one lump sum or in two equal installments. Laws for
enforcement and collection of property taxes also apply to the PBID assessment.
Disestablishment
State law provides for the disestablishment of a PBID pursuant to an annual process. The 30-day
period begins each year on the anniversary day that the City Council first establishes the PBID.
Within this annual 30-day period, if the owners of real property who pay more than 50% of the
assessments levied submit a written petition for disestablishment, the PBID may be dissolved by
the City Council. The City Council must hold a public hearing on the proposed disestablishment
before voting on whether or not to disestablish the PBID.
Duration
Collection of the first year’s assessments will be included in San Luis Obispo County’s 2019-20
tax bill. Services will begin January 1, 2020 and continue through December 31, 2024. Any major
modifications or new or increased assessments during the term of the PBID that are not consistent
with the provisions of original Management District Plan will require a new mail ballot process.
Future Development
As a result of continued development, the district may experience the addition or subtraction of
assessable footage for parcels included and assessed within the PBID boundaries. The
modification of parcel improvements assessed within the district may then change upwards or
downwards the amount of total footage assessment for these parcels, pursuant to Government
Code 53750, will be prorated to the date they receive the temporary and/or permanent certificate
of occupancy.
In future years, the assessments for the special benefits bestowed upon the included PBID
parcels may change in accordance with the assessment methodology formula identified in the
Management District Plan and Engineer’s Report provided the assessment rate does not change.
If the assessment formula changes and causes an increase in assessments, then a Proposition
218 ballot will be required for approval of the formula changes.
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SECTION 7: PBID GOVERNANCE
City Council
Following the submission of petitions from property owners representing more than 50% of the
assessments to be paid, the City Council, upon holding a public hearing on the proposed PBID,
may elect to form the PBID. The PBID is formed by a City Council resolution, including the levy
of an assessment on property, if the assessment is first approved by parcel owners in a balloting
process.
PBID Governance
Consistent with Business Assessment District legislation throughout the nation, California’s
“Property and Business Assessment District Law of 1994" establishes a governance framework
that allows property owners who pay assessments the ability to determine how the assessments
are used. This Management District Plan may be subject to changes if required by the State of
California or the City of San Luis Obispo.
Downtown San Luis Obispo PBID
The Downtown San Luis Obispo PBID shall contract with a nonprofit organization that may act as
the Owners’ Association and governing board for the PBID. The role of the Owners’ Association
is consistent with similar PBIDs and management organizations throughout California and the
nation. The Owners’ Association determines budgets, assessment adjustments and monitors
service delivery. As part of the Management Plan, the nonprofit organization oversees the delivery
of day-to-day PBID activities.
Pursuant to the State of California PBID legislation, the Owners’ Association Board of Directors
is subject to disclosure and notification guidelines set by the Ralph M. Brown Act and California
Public Records Act when conducting PBID business.
Since Downtown will now have both the existing BIA and the new PBID functioning concurrently,
the following governance structure is proposed for Downtown SLO in order for these to function
efficiently and in cooperation with each other:
• A new PBID board of directors made up of property owners. A 7-11 member board is
recommended, including representation from the following:
o All geographic areas served by the PBID
o A variety of property types, including retail, office, hotel, and residential
o Both large and small property owners
o The City Manager and/or his/her designee
o The County Administrative Officer and/or his/her designee
• The existing BIA board of directors remains intact. This board is made up of Downtown
business owners (some of which are also property owners), and currently contains 15
members.
• A new Downtown SLO Executive Committee. This committee would contain several
members of the PBID board and BIA board. It would meet periodically to provide oversight of
overall Downtown SLO functions, ensuring coordination across both improvement districts.
• Some of the existing Downtown SLO committees will need to remain (e.g., Farmers’ Market),
but others can be consolidated.
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SECTION 8: IMPLEMENTATION TIMELINE
In order for the PBID to meet the start-up date of January 2020, the formation needs to adhere to
the following schedule:
Formation Schedule Dates
Petitions distributed to property owners March 2019
Education campaign to obtain signed petitions, 50% weighted vote March – May 2019
City Council accepts petitions; adopts resolution of intention to consider
establishment; sets a public hearing; accepts the Engineer’s Report;
authorizes the mailing of ballots
May 2019
City Council holds public hearing and tabulates ballots July 2019
PBID organizational structure developed Fall 2019
PBID services begin January 2020
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January 31, 2019
Ms. Bettina Swigger
Chief Executive Officer
Downtown SLO
1135 Chorro St.
San Luis Obispo, CA 93401
RE: City of San Luis Obispo-Level of Service
Dear Ms. Swigger,
The City of San Luis Obispo is supportive of Downtown SLO’s (DSLO)'s effort to work with the
community to determine if a Property-Based Business Improvement District (PBID) in the
downtown area is supported and appropriate. We understand that the PBID would increase
resources available for downtown revitalization and build the capacity of the Downtown
SLO/City partnership in promoting a safe, clean, and economically vibrant downtown.
The City has historically provided a base level of services in the downtown area, as outlined
in the attached document. Each relevant City department was requested to describe their
services and staff is committed to continuing to deliver these services in a consistent and
professional way into the future, subject to funding availability.
As the economy continues to fluctuate there may be times when financial constraints cause
the City to reduce budgets affecting base level services. Nevertheless, any reductions would
be mindful of our stated goals to support and enhance a thriving downtown.
If you have any questions, please feel free to contact me for any further discussion or
clarification.
Sincerely,
Derek Johnson
City Manager
Attached: City of San Luis Obispo Base Level Services in the Proposed PBID Area
slocity.org
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The Downtown Baseline Services listed below are provided by the Police Department, the
Department of Parks and Recreation, the Department of Utilities, and the Department of
Public Works. Please note that funding for portions of a few of these services come through
non-City grant sources and may be subject to budget pressures outside of City contro 1. The
purpose of this Appendix is to provide a point in time summary of services. The City Council
may adjust service levels based on budget priorities and other factors. This description is in
no way intended to constrain or otherwise limit the discretion of future City Councils.
Police Department Downtown Services
Bike Officers:
1. Provide four (4) Bike Officers assigned to downtown. Two (2) bike officers are assigned
to work during the days. They provide coverage Monday through Saturday, working
from 7:00 AM to 5:00 PM. The other two (2) Officers are assigned to work evenings.
These Officers work Wednesday through Saturday from 5:00 PM to 3:00 AM. There
are also special functions like marathons, parades, Thursday Night Farmers’ Market
and permitted events where their hours may be flexed, or they are payed overtime
to work these events through permit fees. Their primary coverage area is Palm to the
north, Pismo to the south, Carmel to the west and Santa Rosa to the east. Depending
on patrol staffing needs, these officers may be temporarily reassigned to maintain
minimum staffing within patrol.
Community Action Team Officers:
1. Provide two (2) Community Action Team (CAT) Officers to primarily address chronic
offenders within the downtown. CAT Officers cover Monday through Friday from 7:00
AM to 5:00 PM. They alternate every other Monday and Friday. In additio n, these
Officers work with City Rangers to patrol the open spaces and creeks surrounding
downtown. Depending on patrol staffing needs, these Officers may be temporarily
reassigned to maintain minimum staffing in patrol.
Patrol Officers:
1. Weekly, the Police Department staffs four (4) to six (6) Officers, in vehicles, to patrol
within the downtown and respond to calls for service when needed. These Officers
patrol the entire City with no specific assigned beat.
Graffiti Removal:
1. The Police Department tracks graffiti through calls received in dispatch and on the
police department's webpage. The department works with volunteers and city staff
to ensure the graffiti is removed in a timely manner.
Packet Pg. 266
Item 16
Parks and Recreation Downtown Services
Banner Reservations:
1. Downtown SLO receives 50% discounts on banner reservations and priority booking
prior to the public.
Facility Rentals:
1. Downtown SLO is not charged for the use of facilities for special events including
Mission Plaza.
2. Downtown SLO has four (4) reservations per year to use the library community room
for public education workshops.
Special Events Permits:
1. Special events permit processing at 50% of standard City fees.
Storage:
1. Free storage and access to the Mission Plaza Adobe.
2. Downtown SLO and the City have each contributed 50% of the chairs that are stored
in the Mission Plaza Adobe.
Staff Support:
1. In previous years, Downtown SLO received free support from Parks & Recreation staff
for Snow Night, from set up to trucks to staff.
Public Art Support:
1. Staff participation and support of increased public art in downtown.
Utilities Department Downtown Services
Sewer:
1. Sewer pipe cleaning occurs every two (2) months with two (2) Wastewater Collection
Operators and the vacuum truck for the entire downtown district amounting to 12
personnel hours.
2. Storm drain cleaning occurs every summer with two (2) Wastewater Collection
Operators and the vacuum truck to prepare for winter storm events.
3. The downtown creek corridor is walked by two (2) Wastewater Collection Operators
every three months to monitor private laterals and storm drain source points.
4. Quarterly downtown pressure washer surveillance by one (1) Environmental
Compliance Inspector taking four (4) hours.
5. Quarterly creek tunnel inspection through two (2) Environmental Compliance
Inspectors taking four (4) hours per inspection.
6. Annual priority storm inlet/outfall inspection prior to winter with one (1)
Environmental Compliance Inspector taking about 18 hours.
Packet Pg. 267
Item 16
Solid Waste:
1. San Luis Garbage Company empties the downtown bins daily during non-business
hours requiring a special truck. This is a service that is carried by all City rate payers.
The maintenance of the bins falls on the City through Public Works. This is an area
worth exploring to analyze if different rates should be pursued to address the unique
service needs of the downtown.
Public Works Downtown Service
Streets Maintenance Division:
1. Daily street sweeping.
2. Thursday Night Farmers' Market street closure set-up and take down by four (4) part-
timers for an annual total of 1,479 hours (29 hours weekly x 51 weeks). The current
fee for each closure is $132, which Downtown SLO pays quarterly.
3. Third party sidewalk pressure washing on specific, high pedestrian areas. Friday
morning and Monday morning cleaning in Bubblegum Alley. Quarterly sidewalk
pressure washing of the entire downtown area. Total annual contract budget for
sidewalk pressure is $30,000.
4. Sidewalk trash pickup (2-3 hours by a part-timer) four (4) days a week.
Parks Maintenance Division:
1. Part-time employee bags parking meters and then delivers and sets up two (2) porta
potty facilities for Thursday Night Farmers' Market. The employee maintains the
facilities during the entire duration of the event, then removes and cleans them. Total
annual staff hours are 714 (14 hours weekly x 51 weeks).
Urban Forest Division:
1. Two employees, using a bucket truck, hang and take down special event banners. Each
service takes approximately two (2) hours. Due to the high pedestrian and vehicle
traffic in the downtown, the trees in the downtown are maintained at a higher
frequency than other areas in the city.
Parking Services Division:
1. Loss of parking meter revenue, approximately two (2) hours, due to the meters being
'bagged' in preparation for Thursday Night Famers' Market on Thursday or on
Saturdays for special events. Staff time spent verifying the correct meters were
bagged (by Downtown SLO, etc.) to ensure the 24-hour notification period has been
achieved. This results in a direct loss of parking meter revenues that is partially offset
by increased revenue in the parking structures. The Police Department will not tow
vehicles unless this notification requirement has been met.
Transit Division:
1. Subsidized Trolley service ($.50 per rider) on Thursday, Saturday and Sunday from 5:00
pm — 9:00 pm.
Packet Pg. 268
Item 16
APN Owner Situs_No_Situs_Dire Situs_Stre Situs_Type LAND USE ZONE Parcel SF Bldg SF
Frontage,
NonCore
Frontage,
Core Lot + Bldg, $Frontage, $TOTAL,$
002-321-004 SLO CITY CAPITAL IMPROVEMENT BOARD (40 YR LEASE)990 PALM ST NON-COMM NON-CORE 48535 22971 623 $4,762.25 $4,558.51 $9,320.77
002-421-018 SLO CITY OF 640 HIGUERA NON-COMM CORE 14194 0 112 143 $945.28 $2,910.26 $3,855.54
002-423-006 SLO CITY OF 989 CHORRO ST NON-COMM CORE 58679 4391 690 81 $4,200.43 $6,235.85 $10,436.28
002-424-022 SLO CITY OF 736 MARSH NON-COMM CORE 26795 0 180 7 $1,784.52 $1,411.26 $3,195.78
002-321-003 SLO CITY OF 888 MORRO ST NON-COMM NON-CORE 16358 11300 259 $1,842.00 $1,894.48 $3,736.47
002-322-025 SLO CITY OF 995 PALM ST NON-COMM NON-CORE 20600 32553 289 $3,539.94 $2,116.19 $5,656.13
002-322-037 SLO CITY OF 919 PALM ST NON-COMM NON-CORE 24770 0 320 $1,649.66 $2,336.94 $3,986.60
002-412-001 SLO CITY OF 609 PALM COMM NON-CORE 11115 0 219 $740.25 $1,602.40 $2,342.65
002-412-002 SLO CITY OF 972 NIPOMO ST COMM NON-CORE 6200 0 49 $412.91 $361.72 $774.63
002-412-003 SLO CITY OF 633 PALM ST NON-COMM NON-CORE 4500 1391 43 $392.34 $316.30 $708.64
002-412-003 SLO CITY OF 633 PALM ST NON-COMM NON-CORE 768 $51.15 $0.00 $51.15
002-412-004 SLO CITY OF 630 MONTEREY NON-COMM NON-CORE 20542 0 137 $1,368.07 $999.80 $2,367.87
002-412-011 SLO CITY OF 610 MONTEREY ST NON-COMM NON-CORE 9133 1725 202 $723.13 $1,475.24 $2,198.37
002-412-012 SLO CITY OF 614 MONTEREY ST NON-COMM NON-CORE 8320 1372 58 $645.48 $425.69 $1,071.17
002-412-016 SLO CITY OF 696 MONTEREY ST NON-COMM NON-CORE 8889 4780 192 $910.34 $1,401.56 $2,311.90
002-412-018 SLO CITY OF 680 MONTEREY NON-COMM NON-CORE 11650 0 90 $775.89 $656.55 $1,432.44
002-415-021 SLO CITY OF 842 PALM NON-COMM NON-CORE 46102 0 474 $3,070.37 $3,464.47 $6,534.84
002-421-001 SLO CITY OF 1010 NIPOMO NON-COMM NON-CORE 14837 8417 204 $1,548.68 $1,495.29 $3,043.97
002-421-020 SLO CITY OF 699 MONTEREY NON-COMM NON-CORE 4596 0 136 $306.08 $996.19 $1,302.27
002-421-031 SLO CITY OF 1045 BROAD ST NON-COMM NON-CORE 24339 0 36 $1,620.98 $259.93 $1,880.91
002-443-005 SLO CITY OF 1095 MARSH NON-COMM NON-CORE 12500 0 230 $832.49 $1,685.45 $2,517.94
003-511-022 SLO CITY OF 536 MARSH ST NON-COMM NON-CORE 36903 3632 227 $2,699.62 $1,660.95 $4,360.58
003-527-030 SLO CITY OF 0 MARSH NON-COMM NON-CORE 74115 0 918 $4,935.99 $6,713.00 $11,648.98
503,673 93,300 5,689 231 $39,757.84 $44,978.04 $84,735.88
*The parcels in red indicate that there are multiple rows with the same APN as the County assigns unique building square footage for each building on the parcel
Packet Pg. 269
Item 16
PBID Timeline and Milestones
Date Status
City Approves Grant to DSLO to contract with
PUMA to conduct Feasibility Study ($75k)
July 2017 Complete
First PUMA Site Visit and Stakeholder
Interviews
November 2017 Complete
Online Survey of 300+ Property/Business
Owners
January-February 2018 Complete
Second PUMA Site Visit January 2018 Complete
City Provides Letter with Base Level of Services
to be Augmented by PBID
February 2018 Complete
Third PUMA Site Visit & DSLO Board Retreat March 2018 Complete
First Draft of Management Plan Complete May 2018-October 2018 Complete
Leadership Transition at DSLO May 2018 Complete
Steering Committee Field Trip to Ventura & Old
Pasadena
September 2018 Complete
Quote from Block By Block Subcontractor
Secured
January 2019 Complete
Stakeholder Information Sessions January 2019 Complete
Downtown Vitality defined as a Major City Goal
for 2019-21
February 2019 Complete
City Council Study Session March 2019 In Process
Petition Drive March – May 2019 Pending
Block by Block Subcontractor Site Visit and
Assessment
May 2019 Pending
Property Owners Vote June 2019 Pending
City Council Approval for PBID July 2019 Pending
DSLO Lays Groundwork for PBID Work to Begin
- PBID Board of Directors Elected
- Budget Finalized, Implementation Plan
Finalized
- Contract with Block by Block Subcontractor
Negotiated and finalized
August – October 2019 Pending
PBID Programs Launch
- Block by Block Ambassadors Provide 300+
hours of service per week
- Beautification and Placemaking Efforts Begin
January 2020 Pending
Packet Pg. 270
Item 16
CONSIDERATION OF THE FORMATION OF A
PROPERTY-BASED BUSINESS IMPROVEMENT
DISTRICT BY DOWNTOWN SLO
City Council Study Session
March 19, 2019
1.Receive a report from Downtown SLO (DSLO)on the feasibility of forming a
Property Based Improvement District (PBID)and recommendations for the
management of a downtown San Luis Obispo PBID;and
2.Provide direction to support a Downtown PBID and authorize the City Manager to
participate in the petition and ballot process in support of the formation on the
City’s behalf.
Downtown SLO PBID
San Luis Obispo
March 2019
What Is a PBID?
▪A financing mechanism used to provide revenue for a variety of local
improvements and services that enhance (but do not replace) existing
municipal services
▪Self-imposed and self-governed and must be supported by private sector
property owners and businesses
▪Works in the same way as a common area maintenance (CAM)
agreement in shopping malls and office parks
▪Makes business districts more competitive by providing a managed,
maintained and marketed environment
Brief History of PBIDs
▪Concept started in Canada in 1960s
▪Now more than 1,000 throughout North
America
▪Initiated in California in 1994, now more
than 100
▪In U.S., urban PBIDs started with focus
on clean & safe services
▪PBIDs diversified into other services
and are part of sophisticated
downtown management organizations
Selected PBIDs in California
▪Ventura
▪Pasadena
▪Santa Monica
▪Pacific Palisades
▪Los Angeles (40+)
▪Visalia
▪Berkeley
▪Oakland
▪San Jose
Common PBID Services
▪Enhanced maintenance
▪Safety/hospitality
▪Economic development
▪Marketing and image
▪Special events
▪Parking management & mobility
▪Capital improvements
▪Cosmetic improvements
▪Advocacy & education
▪Public space activation
Our Process So Far in SLO
▪Three PUMA site visits –October 2017, January and March 2018
▪Met with Downtown SLO board, key property owners and city officials
▪Online survey distributed to stakeholders –225+ responses
▪Developed database with assistance from City and County
▪Reviewed two options and decided to layer new PBID on top of existing BIA
▪Steering committee members visited PBIDs in Ventura and Pasadena
▪Block by Block prepared cost estimate for new clean & safe program
▪Community Forums –January 2019
SLO PBID: Key Findings
Downtown is Changing
▪Positive growth, but new vulnerabilities
▪Challenges related to clean and safe
▪More regional competition
▪Retail nationally is being disrupted –
past practices don’t apply
SLO PBID: Key Findings
An Opportunity to Move
Forward in a New Way
▪Downtown issues require a new
approach and new services
▪Outreach reveals strong support
for enhanced safety and cleaning
▪Quality of life safety issues can be
addressed with ambassador model
used in other downtowns
PBID
Proposed
Boundary
Proposed Services
New PBID:Environmental Enhancements
•Expanded Ambassador Program & Enhanced Cleaning
Services
(300+ hours of weekly deployment/7 days per week)
•Beautification
•Communications & Outreach
Existing BIA
•Marketing & Events
Proposed PBID Budget
Proposed PBID Budget
PBID Annual Budget
Environmental Enhancements
•Downtown Ambassadors & Enhanced Cleaning
•Beautification
•Communications/Operations
$ 500,000
$ 150,000
$ 150,000
TOTAL $ 800,000
Proposed PBID Assessment Method
▪Lot + Building Square Footage PLUS Linear Frontage
▪1/2 (lot + building) + 1/2 (linear frontage)
▪Core Area Gets Enhanced Services and Benefit –Higuera and
Monterey
Estimated Annual PBID Assessments
Lot +Building
Sq.Ft.
Linear Frontage
(per foot)
General Downtown $0.066 $7.31
Core $0.066 $14.62
Parcel Assessment Example
The assessment for a parcel with a 10,000 square foot lot +building PLUS 50 linear feet,
the calculation is as follows:
Core Zone:
Lot +Building:10,000 x $0.0666 =$666.00
Linear Frontage:50 x $14.6244 =$731.22
TOTAL ASSESSMENT:$1,397.22
General Downtown Zone:
Lot +Building:10,000 x $0.0666 =$666.00
Linear Frontage:50 x $7.3122 =$365.61
TOTAL ASSESSMENT:$1,031.61
Proposed PBID Governance
PBID Safeguards
▪Five year initial term, 10 year renewal with a 99% renewal rate
nationally
▪Collection via County property tax bills
▪Cap on annual assessment adjustments –5% recommended
▪City base level of services agreement
▪Hardship process for non-profits
▪District formation requires both a petition and ballot process
Next Steps
Activity Timeline (2019)
Petition Drive to Form District Mar –Apr –May
Submit Petitions to City May
City Council ROI to form PBID May 21
Prop 218 Ballot June -July
Final Hearing & Approval July 16
Start-Up Planning for New Services Aug –Dec
Deploy New PBID Services Jan 2020
Downtown SLO PBID
San Luis Obispo
March 2019
1.Receive a report from Downtown SLO (DSLO)on the feasibility of forming a
Property Based Improvement District (PBID)and recommendations for the
management of a downtown San Luis Obispo PBID;and
2.Provide direction to support a Downtown PBID and authorize the City Manager to
participate in the petition and ballot process in support of the formation on the
City’s behalf.