ARTICLE 15A_ PUBLIC REALM LANDSCAPING, IMPROVEMENT AND MAINTENANCE ASSESSMENT DISTRICTS (_GREEN BENEFIT DISTRICTS_)
The full text of this document can be found here on the San Francisco City Government website:https://www.sfbos.org/ftp/uploadedfiles/bdsupvrs/ordinances14/o0014-14.pdf
Ordinance 14 is an ordinance that amended and changed Article 15A.
A local stored PDF of it is here: ARTICLE 15A_ PUBLIC REALM LANDSCAPING, IMPROVEMENT AND MAINTENANCE ASSESSMENT DISTRICTS (_GREEN BENEFIT DISTRICTS_)
This article does not contain the full text of the Article 15A, but cites clauses that voters should know about.
Note that the actual title of districts is “Improvement and Maintenance Assessment Districts”. “Green Benefit Districts” is in parenthesis and is a marketing name that emphasizes “Benefit” instead of “Assessment”.
- Assessment Districts changed to Green Benefit Districts Marketing
- Petition signature requirement reduced from 50% to 30% by proposed GBD assessment
- GBD services cannot supplant city services
- Public Realm Definition
- Petition 30% property owner signature weighted by proposed assessment
- Board of Supervisors authorize utilization of GBD assessments
- "but are not limited to" and "water and energy systems"
- Board of Supervisors can buy property
- Allows for the Recovery of a GBD Formation Cost
- Disestablishment of GBD by majority vote of the Board of Supervisors
- Disestablishment for allowed if GBD assessments back bonds or similar obligations
- Allows Board of Supervisors to issue bonds or similar obligations
- Allows for a GBD to be taken over by another GBD and GBD expansion
- GBD board requires over 50% be property owners
- Requires representation on a GBD board of tenants
- Allows for change of GBD management between GBD and City
- This subsection (j) shall not limit the authority of the Board of Supervisors
- GBD formation requires public hearings and Board of Supervisor approval
- Protects the whole of Article 15A if part is found to be invalid
- Acquisition of property, GBD assessments can only be used for half property value
- Article 15A Summary / Cliffs Notes
Under Purpose, Page 1.
(1) Reduce the percentage of petitions required from property owners in order to initiate formation;
This allows the Board of Supervisors to reduce the percentage of signatures of property owners required to initiate formation of a GBD (covered further below). It has been reduced to “who will pay at least 30 percent of the assessments proposed to be levied.” The original requirement of 50% was not getting enough support so that a GBD could be initialized.
Under Purpose, page 2.
(b) Under this Article 15A, the Board of Supervisors may establish property and business improvement districts that focus on landscaping, improvements and maintenance in Public Realm areas, which may be financed through assessments apportioned among parcels of real property within such districts. It is the intent of this Article to provide a vehicle for financing services, activities and improvements that supplement and complement existing services and facilities. The Board of Supervisors may not establish any district or levy any assessment under this Article to replace or supplant existing City services. Nothing in this Article shall be construed as prohibiting the establishment of districts or levying of assessments to finance local capital improvements that are otherwise authorized under the City Charter, any other City ordinance, or state law.
This section says that a GBD cannot “levy any assessment under this Article to replace or supplant existing City services”. The problem is that there is no document that says what constitutes the existing city services. There is no delineation between where city services stop and what are additional services, activities and improvements that a GBD can provide. There is one document dated 2015 from the Dogpatch and NW Petero Hill GBD that contains baseline cleaning and maintenance services provided by Park and Recreation and Department of Public Works for that GBD. The 2015 Dogpatch and NW Petero Hill GBD Baseline City Cleaning and Maintenance pdf
Under Definitions, page 2.
(a) Definitions.
★ (1) "Public Realm areas." As used in this Article 15A, Public Realm areas are outdoor spaces open to the public that include but are not limited to parks, plazas, parklets, sidewalks, unimproved areas, landscaped areas and gardens. Public Realm areas may be owned by public and/or private entities or persons.
★ (1) "Public Realm areas." As used in this Article 15A, Public Realm areas are outdoor spaces open to the public that include but are not limited to parks, plazas, parklets, sidewalks, unimproved areas, landscaped areas and gardens. Public Realm areas may be owned by public and/or private entities or persons.
This is an important definition because it is in the Article Title and core to where a GBD can operate. It is open-ended which is good and bad. Note the language “but are limited to”. Here it is OK but this language is used further down in financing. Note the last sentence is very broad and includes “owned by public private entities or persons”. That can cover just about anything.
(b) Petitions. Notwithstanding California Streets and Highways Code Section 36621(a) or any other provision of state law to the contrary, the Board of Supervisors may initiate proceedings to establish a property and business improvement district upon receipt of a petition signed by property owners in the proposed district who will pay at least 30 percent of the assessments proposed to be levied.
If there are large property owners and corporate owners (apartment buildings) in a proposed green benefit district that are for a GBD, they can get the petition close to or on the ballot. It is not the number of people who sign the petition; it is how much property people own. A few people have more power. This actually happens all the time. Wealthier people can get a petition for a vote easier than your average person or homeowner. Is it democratic? This weight by wealth plays a bigger anti-democratic role in the actual vote.
Under Property Zoned Solely Residential, page 3.
(d) Property Zoned Solely Residential. Notwithstanding California Streets and Highways CodeSection 36632(c) or any other provision of state law to the contrary, the Board of Supervisors may:
…….
(3) Authorize utilization of the assessments to fund services, improvements and activities that benefit such properties.
…….
(3) Authorize utilization of the assessments to fund services, improvements and activities that benefit such properties.
Gives the Board of Supervisors the right to authorize utilization of assessments from a GBD regardless of a GBD board’s vote for utilization of the assessments. There is no language that says the Board of Supervisors must follow a GBD board’s recommendation. The funds raised by an assessment must be used in the GBD district, as stated elsewhere in Article 15A.
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Under Property Zoned Solely Residential, page 3.
★(e) Under this Article 15A the Board of Supervisors may authorize:
(1) Assessment district services, improvements and activities consistent with California Streets and Highways Code Sections 36600 et seq. that are focused on landscaping, improvements and maintenance of Public Realm areas, notwithstanding any other provisions in Sections 36606, 36610, or 36613 or any other provision of state law to the contrary. Such services, improvements and activities may include, but are not limited to, involvement with ecological systems, water and energy systems, pedestrian and bicycle amenities, and recreational improvements.
(1) Assessment district services, improvements and activities consistent with California Streets and Highways Code Sections 36600 et seq. that are focused on landscaping, improvements and maintenance of Public Realm areas, notwithstanding any other provisions in Sections 36606, 36610, or 36613 or any other provision of state law to the contrary. Such services, improvements and activities may include, but are not limited to, involvement with ecological systems, water and energy systems, pedestrian and bicycle amenities, and recreational improvements.
Note in the last sentence “but are not limited to” leaves the services and improvements open-ended and not limited to the list. Also, note “water and energy systems”. Funding for improvements, expansion, and maintenance to water and energy systems can be from bonds or assessments in a GBD. If SB827 becomes law a massive rezoning bill that allows for the development of 8 story apartment buildings along public transit routes, this act allows for the funding of the water and energy system and “not limited to” upgrades in a “Public Realm” needed to support increased development. SB827 is covered further on this webpage. As previously mentioned, one thing that is not defined is where the city’s Department of Public Works responsibilities stop and the responsibilities of a GBD begin.
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(2) Use of assessment funds to purchase real property, in whole or in part, within or contiguous to the District, where that property will be a Public Realm area and the district will provide landscaping, improvements and/or maintenance of the area.
The Board of Supervisors can buy property for the Public Realm area and the GBD will be required to “provide landscaping, improvements and/or maintenance of the area.” Remember the definition of Public Realm in this Article.
Under Formation Cost Recovery, page 3.
(f) Formation Cost Recovery.
To keep things shorter text is left out, but basically this provision allows for the recovery of all cost to form a GBD to come from the assessment of a GBD. Both the Dog Patch and proposed Inner Sunset GBDs got grants from the city for formation. The proposed Greater Buena Vista GBD is trying to raise funding for formation costs. It does seem that failure for a GBD to form leaves no recovery.
page 4.
(g) Disestablishment by Board of Supervisors Supermajority.
A supermajority not a majority vote of the Board of Supervisors is required to disestablish a GBD making it harder to disestablish a GBD. The next clause supersedes this clause if a “bond, financing lease (including any certificates of participation therein), or other similar obligations of the City, payable from or secured by assessments levied within the district.”
(h) Disestablishment Limitation. Notwithstanding Section 15A.2(g) of this Article, California Streets and Highways Code Section 36670, or any other provision of law, the Board of Supervisors may not disestablish a district where there are any outstanding bond, financing lease (including any certificates of participation therein), or other similar obligations of the City, payable from or secured by assessments levied within the district.
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Under Public Financing, page 4.
★(i) Public Financing. Notwithstanding California Streets and Highways Code Section 36640 or any other provision of state law to the contrary:
(1) The Board of Supervisors may, in the resolution to establish the district, determine and declare that any bond, financing lease (including any certificates of participation therein), or other similar obligations of the City, shall be issued to finance the estimated costs of some or all of the proposed improvements or activities described in such resolution, pursuant to the City Charter, City ordinances or state law, as the Board may determine; and
(2) The amount (including interest) of any City bond, financing lease (including any certificates of participation therein) or other similar obligations, may not exceed the estimated total of (A) revenues to be raised from the assessments over the term of the district, plus (B) such other monies, if any, to be available for such purpose, in each case determined as of the date such obligations are issued or incurred.
(2) The amount (including interest) of any City bond, financing lease (including any certificates of participation therein) or other similar obligations, may not exceed the estimated total of (A) revenues to be raised from the assessments over the term of the district, plus (B) such other monies, if any, to be available for such purpose, in each case determined as of the date such obligations are issued or incurred.
These clauses allow the Board of Supervisors to issue “bond, financing lease (including any certificates of participation therein), or other similar obligations of the City” to pay for some or all of the improvements or activities in a GBD but not greater than the revenues raised by the assessment of a district over a term.
Under Management of District, page 4.
★(1) Management by Owners' Nonprofit Corporation. If so provided by the management district plan, the Board of Supervisors may contract with an existing or new owners' nonprofit corporation (California Streets and Highways Code Section 36614.5) to administer or implement services, improvements and activities specified in the management district plan ("Management Contract"). If so, the management district plan shall ensure that on the governing body of the owners' nonprofit corporation:
In a GBD Management, this clause allows the Board of Supervisors to contract an existing owners’ nonprofit corporation. This can mean that GBD can be combined with another GBD or expanded. Remember that the Board of Supervisors has to approve a GBD Management Plan. Also further down in Article 15A, “shall not limit the authority of the Board of Supervisors to require the incorporation of any other item or matter into the management district plan under California Streets and Highways Code Section 36622(l) or other applicable law.” They can add language to a GBD Management Plan.
★(i) a majority (over 50%) are district assesses; and,
This is interesting in that although only property owners have the right to vote a GBD into existence, once it is established they can have just a slight majority and people without any ownership have voting power.
(ii) there is adequate representation of district stakeholders who do not own or have an ownership interest in property located in the district, including residents, businesses, and neighborhood organizations. Where warranted by the circumstances in a proposed district, the Board of Supervisors in its discretion may require that the management district plan provide particular levels of such business owner or other district stakeholder representation.
This requires representation of stakeholders who do not have any ownership interest in the district. In the ISGBD Management Plan, there is a provision for specialists to be on the board. They appear to be non-elected and do not have to live in the GBD. There are no provisions in Article 15A as to how people are placed on the GBD board so that must appear in the management plan.
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(3) Change of Management During Term of District. If so provided by the management district plan, management may change during the term of the district from an owners' nonprofit association to the City, or from the City to an owners' nonprofit association. Procedures for such a change shall be specified in the management district plan, and may be further detailed in any Management Contract.
Allows for a change of management during the term of a GBD. Probably will be in every GBD Management Plan approved by the Board of Supervisors.
(4) This subsection (j) shall not limit the authority of the Board of Supervisors to require the incorporation of any other item or matter into the management district plan under California Streets and Highways Code Section 36622(l) or other applicable law.
This allows the Board of Supervisors to change a GBD Management Plan. It is a very important clause to note. It is unclear how the Board of Supervisors decides and votes on changes to a GBD Management Plan.
Under Notice to Businesses in Three Languages, page 5.
(3) That formation of the district is subject to the approval of the Board of Supervisors following public hearings and a ballot proceeding by owners of the property subject to the assessment; and,
Requires public hearings and a vote by owners of property subject to the assessment. No tenants can vote, though they do gain rights once a GBD is established.
If any provision of this Article 15A or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect any other provision or such other application of such provision which can be given effect without such provision or application, and to this end the provisions of this Article are declared to be severable.
(Added by Ord. 14-14 , File No. 130462, App. 2/14/2014, Eff. 3/16/2014)
This is an added clause, which protects the whole of Article 15A in case a part is found invalid. Only the clause(s) found invalid will be removed from the Article.
No amount proposed to be assessed upon any lot for the construction of any improvement or the acquisition of any property for public use shall exceed one-half of the assessed value of the lot. The total amount of all assessments levied on lots within the district for the construction or any improvement or the acquisition of any property for public use shall not exceed one-half the assessed value of all lots assessed or proposed to be assessed. Assessment amounts shall satisfy any further limitations imposed
by Section 1.20 of the Administrative Code and Part 5 of Division 4 of the California Streets and Highways Code (Sections 2900 et seq.) or any preemptive successor statute.
(Added by Ord. 14-14 , File No. 130462, App. 2/14/2014, Eff. 3/16/2014)
This states that a GBD can be charged up to one-half of any acquisition of property for public use. Some people will argue that this is a leverage for combining GBD assessment money with other money from a developer or city or any other entity, but it can also be seen as the GBD being liable for up to half of the purchase of land for public use in a GBD boundary.
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Summary
Article 15A allows for the creation of “Improvement and Maintenance Assessment Districts” also known under the marketing name of Green Benefit Districts. The petition for initializing the vote for a GBD requires that 30% of property owners proportionally weighted by how much they will be accessed vote to put the GBD to a ballot. A small number of large property owners can have a big effect on the passing of a petition. This article does not cover the balloting process for a GBD.The San Francisco Board of Supervisor has to approve a GBD Management Plan. The Board of Supervisors can require the incorporation of any other item or matter into the management district plan. The Board of Supervisors can contract an existing owners’ non-profit corporation to administer a GBD. A GBD management can change back and forth from city to an owner’s non-profit corporation. The disestablishment of GBD before the end of a GBD’s term requires a supermajority. A GBD’s maximum term is 15 years under state law unless a GBD’s assessments pay for a bond or loan, then the maximum term is 40 years, or such later date as the Board of Supervisors shall determine.
The Board of Supervisors can “declare that any bond, financing lease (including any certificates of participation therein), or other similar obligations of the City, shall be issued to finance the estimated costs of some or all of the proposed improvements or activities” and “bond, financing lease (including any certificates of participation therein) or other similar obligations, may not exceed the estimated total of (A) revenues to be raised from the assessments over the term of the district, plus (B) such other monies, if any, to be available for such purpose, in each case determined as of the date such obligations are issued or incurred.” Property for the purpose of the Public Realm can be purchased with half of the money coming from a GBD.
Public Realm is defined in Article 15A, as what people would think of as a Public Realm but “is not limited to” that list. “Public Realm areas may be owned by public and/or private entities or persons.”
A GBD can provide services, improvements and activities which may include, but are not limited to, involvement with ecological systems, water and energy systems, pedestrian and bicycle amenities, and recreational improvements. While not limited to the list above they cannot provide services, improvements and activities that the city provides.
Even though a GBD can only be elected into existence by property owners in a district, the board is required to be a mix of renters, property owners, and other stakeholders. This apparently opens the door to people who do not live or own property in the district or specialists to be on the board.
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