REPORT TO THE CITY COUNCIL FROM: GEORGEANNE A. WHITE, City Manager Office of Mayor and City Manager BY: GREGORY A. BARFIELD, Assistant City Manager Office of Mayor and City Manager SUBJECT ..Title HEARING regarding the renewal of the Downtown Fresno PBID: ***RESOLUTION - Declaring the results of the majority public hearing proceedings and renew the Downtown Fresno PBID and authorize the levy of district assessments (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends that, at the conclusion of a Proposition 218 protest hearing, in the absence of a majority protest, the Council adopt the attached Resolution (Exhibit A) to renew the Downtown Fresno Property and Business Improvement District (DFPBID) and levy district assessments. EXECUTIVE SUMMARY On May 26, 2022, following the signing of petitions for the renewal of the DFPBID renewal by property owners paying more than fifty percent (50%) of the assessment, the Council unanimously approved and adopted a resolution of intention to renew the DFPBID, and set a public meeting and protest hearing for 9:00 AM today. The City Clerk, on June 2, 2022, mailed notice and protest ballots (weighted according to proportional financial obligations) to each property owner. The ballots are due at the conclusion of this afternoon's public hearing, which closes the election process prescribed under Proposition 218 in the California Constitution. The City Clerk will report the results of the election to the Council following a continuation of this matter to later this afternoon. Under Proposition 218, if no majority protest exists - i.e., if weighted ballots submitted in opposition do not exceed weighted ballots submitted in favor - then Council has discretion to move forward with DFPBID renewal, through adoption of a resolution of renewal of the district and levying the district assessment. If there is no majority protest, staff recommends that the Council adopt the attached resolution of renewal of the DFPBID and levying the assessment. This will mark the end of the DFPBID renewal process. If the ballots against the DFPBID outweigh those in favor, the DFPBID cannot be renewed, and no further action by the Council is necessary. BACKGROUND Earlier this year, a successful petition drive was launched to renew the DFPBID. With majority petition support weighted by the amount paid, the Council unanimously voted on May 26, 2022, to authorize an election process under Proposition 218 in the California Constitution. Proposition 218 prescribes the mailing of ballots to property owners and an election period, lasting a minimum of 45 days, that ends with a formal protest hearing. Ballots were mailed to the 166 property owners within the district on June 2, 2022. Today's actions to complete the renewal of the DFPBID are twofold. First, at 9:00 AM, the Council will hold the required public hearing, ask for submission of any final ballots, and hear and consider comments from affected property owners and members of the public. The conclusion of the hearing marks the end of the ballot period and the close of the election. Proposition 218 provides that a majority protest exists if votes submitted and not withdrawn in opposition to the proposed assessment exceed the number of ballots submitted and not withdrawn in favor of the proposed assessment, with ballots weighted according to the amount of the assessment to be imposed upon the parcel(s) for which each ballot was submitted. If at the conclusion of the hearing, a majority of returned ballots, weighted by dollars assessed, oppose the renewal of the district, the DFPBID cannot be renewed, and no further action is required. The City Clerk, at the conclusion of the hearing, will open the sealed ballot envelopes and tally the ballots, noting the total assessment dollars represented by "yes" votes and by "no" votes. The Clerk will announce the results as part of the presentation of a second item in the afternoon. ENVIRONMENTAL FINDINGS This is not a project for CEQA purposes. LOCAL PREFERENCE This action is not subject to local preference. FISCAL IMPACT The City's estimated annual PBID assessment would be $112,280.50 in the initial year. This amount may increase up to three percent (3%) per year thereafter. Due to minor changes in zone boundaries and the parking lot assessment rate, this amount is slightly lower than in previous years. The assessment payments would be appropriated during the annual budget cycles. By helping to revitalize the Downtown economy, the PBID funded activities performed under the Agreement have the potential to increase revenues to the city in the form of tax increment, tax receipts, and user fees that could be used to offset annual PBID assessment(s). ATTACHEMENTS: Exhibit A: Resolution to Renew Downtown Fresno PBID and levy district assessments Exhibit B: Downtown Fresno Property and Business Improvement District Management District Plan and Engineer's Report