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2008-07-15 Special CIC MinutesMINUTES OF THE SPECIAL COMMUNITY IMPROVEMENT COMMISSION MEETING TUESDAY- -JULY 15, 2008- -7:31 P.M. Chair Johnson convened the Community Improvement Commission Meeting at 11:11 p.m. ROLL CALL - Present: Commissioners deHaan, Gilmore, Matarrese, Tam, and Chair Johnson - 5. Absent: None. ID /rr011000WN (08 -37) Minutes of the Special Joint City Council, Alameda Public Financing Authority, Alameda Reuse and Redevelopment Authority, and Community Improvement Commission Meeting held on June 17, 2008. Approved. Commissioner Tam moved approved of the minutes. Commissioner Matarrese seconded the motion, which carried by unanimous voice vote - 5. AGENDA ITEMS (08 -38) Public Hearing to consider the Periodic Review of the City of Alameda's Alameda Point Improvement Project Five -Year Implementation Plan. The Development Services Manager gave a brief presentation. Commissioner Matarrese inquired whether any comments were received from the Economic Development Commission (EDC). The Development Services Manager responded no specific comments were received; stated the EDC appreciated being kept up to date. The Development Services Manager gave a Power Point presentation. Commissioner Tam stated the staff report notes that SunCal would be updating the Sports Complex Master Plan in September; inquired whether the Master Plan would be previewed at the August workshop, to which the Development Services Director responded in the negative. The Assistant City Manager stated SunCal would be having meetings with the Youth Commission and Recreation and Park Commission in August. Chair Johnson inquired whether the Recreation and Park Commission Special Meeting Community Improvement Commission 1 July 15, 2008 would make recommendations to Council and the Alameda Reuse and Redevelopment Authority (ARRA), to which the Development Services Manager responded in the affirmative. Chair Johnson stated the demand for athletic facilities has changed since the mid 1990's. (08 -39) Recommendation to authorize the Executive Director to enter into Contracts with the Park Street Business Association and the West Alameda Business Association for Fiscal Year 2008 -2009. The Development Services Director gave a brief presentation. Commissioner deHaan inquired whether the CIC budget increased by 30. The Development Services Director responded the general tax increment increased by approximately 3.50 overall; stated the CIC budget did not increase; business associations are important to the City as an economic development engine. Chair Johnson stated the City does not spend money on business promotion; grant funding allows the West Alameda Business Association (WABA) and Park Street Business Association (PSBR) to market City businesses. Commissioner Matarrese stated the grants bolster business; the General Fund budget is impacted because sales tax is generated; questioned whether the proposed funding amount is enough; inquired whether there is a way to quantify how the City's investment correlates to an increase in sales tax. The Development Services Director responded that she did not know. Commissioner Matarrese stated said matter should be reviewed because the General Fund is impacted by investing approximately $225,000 [in the business associations]. Chair Johnson stated that she is comfortable with the grant funding increase; business districts need to fund themselves; Alameda Towne Centre pays for maintenance and other costs; PSBR and WABA spend a lot of money on marketing and promotion; shopping centers are required to be open for certain hours and days per week; the City does not have the same control over the business districts; PSBR members contribute $140,417 to their own organization; WABA members contribute $66,700 to their own organization. (08 -40) Commissioner Matarrese moved approval of continuing the Special Meeting Community Improvement Commission 2 July 15, 2008 meeting past midnight. Chair Johnson seconded the motion, which carried by unanimous voice vote - 5. Chair Johnson opened the public portion of the hearing. Proponents (In favor of the staff recommendation): Robb Ratto, Park Street Business Association (PSBA)(provided handout); Kathy Moehring, West Alameda Business Association (WABA); Patty Jacobs, Greater Alameda Business Association (GABA). There being no further speakers, Chair Johnson closed the public portion of the hearing. Chair Johnson inquired why is PSBA's Landscape and Lighting assessment reduced. Mr. Ratto responded the assessment was not utilized for a number of years and resulted in a surplus, which has run out; PSBR was going to request a 100% increase in the Landscape and Lighting assessment; property owners are not in support of an additional fee since the passing of Measure H. Chair Johnson inquired how much PSBR spends on marking and promotion, to which Mr. Ratto responded approximately $90,000. Chair Johnson inquired whether PSBR pays the electric bill [for the streets] through the Landscape and Lighting assessment, to which Mr. Ratto responded in the affirmative. Commissioner Tam stated that Landscape and Lighting assessment income is reduced from $69,850 to $57,417; the Business Improvement Area (BIA) income is reduced from $102,317 to $83,000; PSBR income is reduced from $147,755 to $121,500; and the grant fund amount would be increased from $108,020 to $111,446. Mr. Ratto stated PSBR leaves a $20,000 cushion when event budgeting is prepared just in case something happens; most of the $20,000 goes back into the promotion budget. Following Ms. Moehring's comments, Chair Johnson inquired how much WABA spends on marketing and promotion, to which Ms. Moehring responded $71,000. Commissioner Matarrese stated data needs to be gathered on the correlation of increased sales tax and the City's return. Special Meeting Community Improvement Commission 3 July 15, 2008 Following Ms. Jacob's comments, Chair Johnson stated WABA and PSBA's marketing, advertising, and promotion costs justify the investment; GABA provides an excellent service to its members; public benefit needs to be highlighted. Ms. Jacobs stated that there is a direct correlation between strong, healthy businesses and public benefit; GABA does not put on public events; GABA's advertising remains consistent; a monthly two -page spread is placed in the Alameda Sun which lists all GABA members; GABA affords low -cost, full color advertising to any GABA business. Chair Johnson stated a certain percentage of grant funding should be used for marketing and promotion; a threshold should be set. Commissioner Matarrese stated the City receives three benefits from PSBR and WABA: 1) street maintenance; 2) sales tax revenue; and 3) business license tax revenue; investments should be reviewed every year to see the correlation with the return. Chair Johnson stated GABA's administrative costs are funded; that she is not sure whether using grant funding for said purpose is appropriate. Commissioner deHaan stated GABA is a very small operation, but is viable and important; four members would be impacted when Orchard Supply Hardware moves into the Alameda Towne Centre; GABA's proposed grant amount is not that monumental. Chair Johnson stated that she does not have a problem with the amount, but with funding administrative costs; requiring that a certain percentage of funding be spent on marketing, advertising, and promotion would satisfy the requirement of ensuring a return to the public; the City does not fund the Chamber of Commerce and Harbor Bay Business Park. Ms. Jacobs stated one of the reasons for the inception of GABA was to afford businesses outside the two districts an opportunity and venue to be an association. Chair Johnson stated GABA provides a very useful, valuable function to its members; the question is how to ensure that the public is getting a return; Alameda has many worthy non - profits that are not funded; inquired whether PSBR or WABA would have any problem with setting a 400 -50o threshold [for advertising and promotion], to which Mr. Ratto and Ms. Moehring responded in the negative. Commissioner deHaan moved approval of the staff recommendation. Special Meeting Community Improvement Commission 4 July 15, 2008 Chair Johnson stated that a requirement should be added regarding spending a certain percentage of grant funding on marketing and promotion. Commissioner Matarrese seconded the motion with inclusion of a policy for promotion and evaluation for GABA [in addition to PSBR and WABA; stated the issue is a policy decision; a return is needed if the City invests approximately $225,000 in tax dollars; the return can be predicated on 500 of grant funding going to promotion; evaluations need to be performed. Commissioner Gilmore stated the measurement [of success] would be difficult for GABA because GABA is spread across the City. Chair Johnson stated customer surveys could be performed. Commissioner Matarrese stated business license fees are calculated on gross; increased performance could be reviewed. Councilmember deHaan concurred that an evaluation needs to be performed. Commissioner Tam stated sales tax revenue has been flat for many years; a better measurement would be the return to the City; business districts take care of the street maintenance and advertising, which the City cannot do; she does not want measurement tied directly to producing a business tax increment. Commissioner Matarrese stated that business license tax and sales tax revenues are a bottom line measurement. Commissioner Tam clarified that the motion is to fund recommended levels to all three business districts; inquired what would be the threshold for advertising and promotion. Chair Johnson responded 500; stated GABA can advise how their success would be measured. Commissioner Gilmore stated GABA is different from PSBR and WABA; PSBR and WABA are spending an incredible amount of money on advertising; GABA has never spent 500 of grant funding on advertising. Eric Kos, GABA President, stated that he has been GABA President for four terms; grant funding was not provided in the first two terms; an attempt was made to provide a public event that benefited the community; a successful location was not available; educational Special Meeting Community Improvement Commission 5 July 15, 2008 roundtables are being proposed. Chair Johnson stated that having a public event would not be a requirement; the intent is to use some of the grant funding on marketing and promotion; increasing membership would help. Commissioner Gilmore stated GABA is being requested to spend $6,000 on advertising. Mr. Kos stated most promotions are done on a volunteer basis. Chair Johnson stated dollar amounts could be assigned to in -kind donations. Commissioner deHaan stated GABA could provide its own measuring devise. Commissioner deHaan amended the motion to include that GABA would come back with a measuring devise showing fulfillment to their commitment. Commissioner Matarrese stated the motion should include that PSBR, WABA, and GABA spend 500 of CIC grant funding on advertising and promotion; the policy is that the City would get a return when contributions are made to business associations and requirements are in place. By consensus, the motion carried by unanimous voice vote - 5. ADJOURNMENT There being no further business, the meeting was adjourned at 12:33 a.m. Respectfully submitted, Lara Weisiger Secretary The agenda for this meeting was posted in accordance with the Brown Act. Special Meeting Community Improvement Commission 6 July 15, 2008