Title
Adopt a Resolution to Accept the Annual Report of the West San Leandro Shuttle Business Improvement District (BID) for Fiscal Year 2024-2025 and Direct the City Manager to Impose the 2025 BID Assessment Rates Increased by the Consumer Price Index (CPI)
Body
COUNCIL PRIORITY
Infrastructure
Economic Development
Quality of Life
RECOMMENDATIONS
Staff recommends that the City Council adopt the Resolution accepting the Annual Report of the West San Leandro Shuttle Business Improvement District (BID) for Fiscal Year 2024-2025 and direct the City Manager to impose the BID assessment at the increased rates, as recommended by the BID Advisory Board.
BACKGROUND
Business Improvement District and Annual Report
The West San Leandro Shuttle Business Improvement District (BID) was established in 2004, and renewed in 2014, to provide management and funding for the LINKS Shuttle Program. BID fees are collected through the City’s business license process. The LINKS Shuttle is administered by the San Leandro Transportation Management Organization (SLTMO), a 501(c)4 non-profit corporation.
The Ordinance establishing the West San Leandro Business Improvement District defines the boundaries of the BID, the amount of the annual assessment, the approved use of the assessment funds, and the effective period of the assessment. The Ordinance requires that a BID Advisory Board annually review the performance of LINKS for submission to the City Council. In addition, the Ordinance provides that the City Council may increase the annual assessment in an amount not to exceed the increase of the Consumer Price Index (CPI), as part of its review of the annual report.
The five-to-seven-member BID Advisory Board includes the City’s Engineering and Transportation Director and the Director of Finance (or their designees). The business members appointed to the Advisory Board are Kristin Anderson, Eric F. Anderson, Inc., Steve Magidson, Docustream and Gricelda Sanchez, Alameda County Industries, Inc. On October 17, 2024, the Advisory Board met to complete the annual review of the LINKS Shuttle and provide a recommendation for the 2025-2026 BID Assessment Rate.
The free LINKS shuttle operates Monday - Friday during peak commute hours (5:45 - 9:45 am and 3:00 - 7:00 pm). LINKS provides critical “first and last mile” connection between BART and employers in West San Leandro, serving major employers including Coca-Cola Bottling, Torani, Shaw Bakers, Home Depot, Walmart, and Costco, as well as small employers. There are over 600 employers and 15,000 employees in the LINKS service area. LINKS also provides transportation to retail centers and the Davis Street Family Resource Center, which services 10,000 low-income people each year. With 20 years of service to the community, LINKS has provided over 3 million rides.
Participation in the BID helps businesses comply with the Bay Area Air Quality Management District (BAAQMD) Commuter Benefits program, which requires all employers with 50 or more full-time employees to provide commuter benefits to their employees. To comply with the Program, employers must select one (or more) of four commuter benefit options and register with BAAQMD. Participation in the LINKS BID satisfies Option 3 (“Employer Provided Transit”) under the requirements, allowing businesses to save time and money when compared to creating their own in-house program.
Annual Report
The Annual Report includes a review of the LINKS performance, planned operations, budget and a recommendation for the 2025 BID assessment.
LINKS Budget
Funding for LINKS comes from the BID, grants, the City of San Leandro and advertising revenue from Marina Square Shopping Center, in which they purchase advertising space on the LINKS buses. Details include:
• 2022 Alameda CTC CIP Grant (Vehicle Registration Fees & TFCA) - $1,180,088
The SLTMO received a 2022 Alameda CTC CIP grant for FY 2021-2022 - FY 2025-2026 in the amount of $1,180,088. Although the full grant request was allocated, the matching requirement went from 50% to 75%, reducing the allowable request and significantly impacting the LINKS budget for the next five years.
• 2024 Alameda CTC CIP Grant (Measure BB & TFCA) - $331,000
In May 2023, the Alameda CTC approved the SLTMO’s application for FY 2026-2027 and 2027-2028 CIP grant funds in the amount of $331,000.
• 2026 Alameda CTC CIP Grant (Measure BB & TFCA) - $386,000
On October 21, 2024, the City Council authorized an application for FY 2028-2029 and FY 2029-2030 Alameda CTC CIP grant funds in the amount of $386,000.
• Business Improvement District Revenue - $410,000
BID revenue over the last four years (2020/2021 - 2023/2024) has averaged roughly $410,000 per fiscal year.
Budget Reduction - Service Modification
The SLTMO projected a budget deficit beginning in FY 2022-2023 as a result of new Alameda CTC matching requirements that limit the allowable grant request, an unpredictable drop in BID revenue, and projected transportation cost increases. A new Dual Loop configuration was implemented in July 2022 to provide the most service under projected funding levels and reduce operational costs by approximately 50% with the goal of stabilizing LINKS funding for the next five years.
2023-2024 Activities
Over the last year, the SLTMO continued the Dual Interlaced Loop service that was implemented July 1, 2022, which provides two buses alternating between the North and South loops. The configuration allows for a one-seat ride from any stop to any stop on either route for customers without having to transfer between vehicles.
Historically LINKS provided an average ridership of 770 per day. Like all public transportation services, the number of rides dropped significantly during the COVID-19 Pandemic, reaching a low of 200 in April 2020. In response to the reduced ridership levels and reduction in grant funding, in July 2022 the LINKS shuttle program implemented a Dual Interlaced Loop service, reducing the number of buses from four to two. At the end of FY 2023-2024, LINKS ridership was averaging 339 rides per day, with an annual total of 88,280. This represents 45% pre-pandemic recovery, a trend consistent with BART’s recovery levels.
Throughout the year, the SLTMO began implementing new digital marketing strategies to spread information about the program as well as provide service alerts.
• A Twitter (X) account was established to provide up-to-date service alerts.
• In partnership with the City of San Leandro, a 1-minute YouTube video was created to draw attention to the program and was hosted on the City’s YouTube account, which has roughly 8,000 subscribers.
• Route and schedule information was published to Google Maps, Apple Maps, as well as the Transit and Moovit apps.
2025-2026 Planned Activities
The SLTMO plans to undertake the following activities in FY 2025-2026:
• Dual Interlaced Loop - Continue to monitor and modify the service to meet rider needs.
• Outreach - SLTMO Management will increase outreach to employers and employees to promote LINKS ridership now that riders are coming back to public transportation. Management will continue to develop the SLTMO’s social media and digital presence to spread the word about LINKS.
• Budget Stabilization - Continue to work to stabilize the budget in the following ways:
• Grants - Aggressively seek local, state, and federal grant and other funding opportunities. The Board will continue to work with the City of San Leandro and Alameda CTC to secure critical funding.
• Revenue Diversification - Continue to diversify revenue sources by maintaining a contract with Marina Square (advertising) and seek other revenue opportunities.
• Request for Proposal for Operations - To ensure LINKS is operating with fiscal efficiency, the SLTMO will issue a Request for Proposals (RFP) for shuttle operations for service beginning January 1, 2026.
• Strategic Planning - The SLTMO is currently in a strategic planning phase in which it is exploring what the SLTMO and LINKS will look like in the next 5-10 years.
Annual BID Rate Recommendation - 2025 Business Improvement District Assessment
To ensure that funding for LINKS stays current with operating costs, it is recommended that the 2025 BID rate be adjusted by the applicable Consumer Price Index (CPI).
Per the approved Ordinance, the BID per employee rate may be increased annually by the increase in CPI. For 2025 the applicable CPI factor is 3.0 percent. An increase of 3% would result in the BID per employee rate increasing from $28.79 to $29.65 and raise approximately $13,576. Businesses with three or fewer owner/employees, landlords, and non-profits will continue to be exempt from the BID assessment.
After reviewing the Annual Report, the BID Advisory Board approved the 2024-2025 Annual Report and recommended that the 2025 BID rate be adjusted by the applicable CPI of 3%.
Previous Actions
• Ordinance No. 2004-013, adopted June 21, 2004, amending Title 2 of the San Leandro Municipal Code to add a new Chapter 15 establishing the West San Leandro Business Improvement District
• Ordinance No. 2004-021, adopted October 18, 2004, specifying the time and manner of collecting the West San Leandro Shuttle BID assessments
• Ordinance No. 2014-023 re-establishing the West San Leandro Business Improvement District for a period of fifteen years.
Applicable General Plan Policies
Goal 15.03 of the General Plan specifically encourages the use of shuttle buses as a viable alternative to driving and Action 15.03-A urges continuation of public/private partnerships to provide shuttle services and the pursuit of grant funding opportunities for such activities
Legal Analysis
This item has been reviewed by the City Attorney and approved as to form.
Financial Impacts
This Council action will not impact the General Fund balance.
ATTACHMENTS
Attachment A: Resolution Accepting the Annual Report of the West San Leandro Shuttle Business Improvement District (BID) for Fiscal Year 2024-25 and Directing the City Manager to Impose the 2025 BID Assessment Rates Increased by the Consumer Price Index (CPI)
Attachment B: San Leandro Transportation Management Organization Annual Report
Attachment C: LINKS Route Map
PREPARED BY:
Lars Halle, Economic Development Specialist