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Home My WebLink About12A - 2020 BID RESOREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 5, 2019 TITLE: ADOPT A RESOLUTION OF INTENT TO LEVY 2020 ASSESSMENT FOR DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT {STRATEGIC PLAN NO. 3, 4F} /s/ Kristine CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on I" Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve the 2020 Assessment Report for the Downtown Santa Ana Business Improvement District (BID), which is administered by two organizations - the Santa Ana Business Council and Downtown Incorporated. 2. Adopt a resolution of intention to levy an annual business license tax assessment for the 2020 calendar year and establish a time and place for a public hearing to be held by the City Council on December 3, 2019 to hear and consider all protests. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its meeting on October 23, 2019, by a vote of 5:0 (Garcia absent), the Community Redevelopment and Housing Commission approved the following: 1. Find that the 2020 Downtown Santa Ana Business Improvement District (BID) Assessment Report complies with the California Streets and Highways Code 36533. 2. Recommend that the City Council direct the Executive Director of the Community Development Agency to file the 2020 BID Assessment Report with the Clerk of the Council for City Council approval or modification. BACKGROUND On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to state law, creating a Business Improvement District (BID) in Downtown Santa Ana. The BID was established as a means of providing the Downtown business community with the funding to promote events and create promotional materials, increase the security presence, enhance maintenance of the downtown shopping corridors, and implement streetscape improvements to 12A-1 Downtown Business Improvement District Intent to Levy Assessment for 2020 November 5, 2019 Page 2 the area. The BID is funded through an additional charge on the business license tax for those businesses within the BID boundary. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments, including the annual budget. DISCUSSION The 2020 Assessment Report contains the basis and method of levying the assessment, estimated activities and budgets from the two business associations - the Santa Ana Business Council and Downtown Inc., and a map of the BID boundaries (Exhibit 1). The Assessment Report presented for consideration and recommended for approval has been reviewed and was determined to meet state law requirements. After approval of the report, the next course of action is to conduct a public hearing where downtown merchants can vote in favor or against the BID renewal. The Public Hearing is scheduled for December 3, 2019. Terms The City Council activated the current BID on July 1, 2013. To administer the activities of the BID, the City executed operating agreements with Downtown Inc. and the Santa Ana Business Council in an effort to address the needs of the two business associations. These agreements contain provisions to ensure proper administration and distribution of funds such as the annual budget, financial record keeping, fund distribution, board composition and meeting requirements. The Agreements are renewed automatically in one-year renewal terms, unless either party gives at least two months' notice of termination, or if the BID is not approved in any given year. If the BID is successfully renewed, each organization will receive approximately $100,000 (collected from the business license tax fee) per calendar year (January through December) and may carry over unspent funds into the next year. In FY2018-19, the BID, through the efforts of Downtown Inc. and the Santa Ana Business Council, accomplished several successful events and promotions that drew thousands of visitors to Downtown Santa Ana. These events and promotions included: monthly First Saturday Artwalks, Artwalk Trolley, Savor Santa Ana, Boca De Oro Literary Festival, Santa Ana Media Summit, activation of the Promenades, Estrella TV promotion, monthly Santa Ana Sidewalk Sales, and the weekly Downtown Santa Ana newsletter. Both organizations also maintain social media accounts with over 35,000 active followers. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #3 (Economic Development), Objective 4 (Continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, shopping, dining, and entertainment destination), Strategy F (Partner with downtown business and merchant associations to program events that showcase restaurants, shopping and entertainment venues). 12A-2 Downtown Business Improvement District Intent to Levy Assessment for 2020 November 5, 2019 Page 3 FISCAL IMPACT There is no direct fiscal impact associated with this action. The City collects the BID revenue from businesses within the BID boundary and distributes funding to each organization, in accordance with approved operating agreements. Revenues will be deposited equally in the BID Trust and Agency Fund and distributions to each organization will be made from the same accounts as follows: Fiscal Year Accounting Fund Description Accounting Unit, Estimated Unit -Account Account Description Amount FY 19-20 09301001-24036 Business Improvement Trust & Agency, $50,000 Jan. — June District Downtown Inc. FY 19-20 09301001-24043 Business Improvement Trust & Agency, Santa $50,000 (Jan. — June) District Ana Business Council FY 20-21 09301001-24036 Business Improvement Trust & Agency, $50,000 Jul —Dec. District Downtown Inc. FY 20-21 09301001-24043 Business Improvement Trust & Agency, Santa $50,000 Jul —Dec. District Ana Business Council Total Amount $200,000 r_� � � :z.�.� a.�,F� r.� 1n r u�y_� ► u�_�KK.m r r r,� Steven A. Mendoza Kathryn Downs, CPA Executive Director Executive Director Community Development Agency Finance and Management Services Agency Exhibits: 1. 2020 Assessment Report a) Attachment A - Business Improvement District Boundary b) Attachment B - 2020 Annual Assessment Formula c) Attachment C - Proposed Budget Summary 2. Resolution 12A-3 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2020 ASSESSMENT REPORT Background On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36500, et seq., of the 1979 State of California Streets and Highways Code, creating a Business Improvement District (BID) in Downtown Santa Ana. On October 6, 2003, the City Council appointed the Community Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana Business Improvement District Advisory Board. As the BID Advisory Board, the CRHC is responsible for making recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, as applicable, and on the method and basis of levying the assessments (including the annual budget). The BID was established as a means of providing the Downtown business community with the funding to promote the Downtown through events and advertising pieces; funding to increase security and enhance the overall aesthetics of the area; and also to maintain the downtown shopping corridors. Improvement Area Boundaries The geographic boundaries of the district remain unchanged from the original 1984 area, and they include over 600 retail, service, and professional members (see Exhibit 2). Assessment Formula The formula for the BID tax levy also remains unchanged from the original 1984 ordinance and is based on the category and/or sales volumes of the business (see Attachment A). 2020 Budget Plan Based on the feedback from the two Associations, Downtown Inc. and the Santa Ana Business Council, the 2020 BID Budget focuses on the continuation of promotions and marketing of the BID. Some of the promotion and marketing will be focused on Downtown events and advertising pieces, which are all designed to enhance the overall aesthetics of the area and also to maintain the downtown shopping corridors. Detailed breakdowns of the two groups' budgets are attached (Attachment B). The assessments from the 2020 BID are estimated at $200,000 to be split evenly by Downtown Inc. and the Santa Ana Business Council —the two business groups that have spearheaded this BID process. Any remaining funds from the previous year will be incorporated into a reserve fund for the groups' 2020 budgets. This reserve funding may be used for additional events and promotions throughout the year. In 2020, the two representative business associations are proposing to host and/or sponsor a variety of community events and promotions, including: ANNUAL EVENTS • Boca de Oro (SABC, SAUSD, CE & Oasis International) • Fashion Show (SABC, CTE, SAUSD, SAC, DTSA) • Spring Festival (SABC) • Easter Festival (SABC) • Savor (DTI & SABC) • Annual Forum (DTI & SABC) • Business Luncheon (DTI & SABC) • Rocktober Festival (Brianna/ SABC) • Black Friday & Small Business Saturday (DTI & SABC) • Blade Cup (East End) • Block Party (East End) • Viva La Vida (Rudy Cordova) • Tree Lighting Ceremony (Santa Ana P&R) • Plaza Navidenas (Santa Ana P&R) 12A-4 • Elder Adults Festival (Tish Leon, Senior Center) • Shakespeare in the Parks (Santa Ana P&R) • 5K Run (Santa Ana P&R) • Dia del Nino (El Centro Cultural de Mexico/ Sponsored SABC) • Soundwave Festival (Stephan Anderson & Yenny Bernal) • Dia de La Mujeres (Priscilla Hernandez/ Permit SABC, Calle Cuatro Plaza) • OC Pride (LGBTQ Center for OC) QUARTERLY EVENTS • Golden Years Festival (Sara Sunderman, Second Street Promenade) BI QUARTERLY EVENTS Patchwork Festival (Dear Handmade Life, 3rd Street) The Coop (Clayton @ Slushcult, Second Street Promenade) MONTHLY EVENTS • Art walk (Dancing on the Street, Callejon de Beso ) (1st Saturdays, SABC, Second Street Promenade) • Cumbia Nights (2"d Saturdays, SABC & DTI Sponsored/Permit, Second Street Promenade) • Witch walk (3rd Saturdays, SABC Permit, Second Street Promenade) • Alternative Bazaar (4'h Saturdays, SABC Permit, Second Street Promenade) • Amigas Social Club (Business Mixer/Workshops, Alta Baja Market) • Sketch Book Club (Adriana Martinez, Art Workshops, Alta Baja Market) • Yellow Turtle Studios (Nancy Alcala/ Clay Workshops, Spurgeon Paseo) • Libromobile (Authors/ Readings/ Workshops, Spurgeon Alley) • Rooftop Cinema (Frida Cinema House & SABC, Parking Garage, Yost Parking Lot) BI-MONTHLY • Side Walk Sales (SABC) (11' and 3rd Weekend of the Month, SABC Permit) • Restaurant Association Meetings • Bridal Association Meetings WEEKLY EVENTS • Clowns & Face Painting (Every Saturday, SABC) • Loteria Mexicana/ Spurgeon Paseo (Every Sunday,SABC) • Santa Ana Sundays Series (Every Sunday, SABC) • Discount Wednesday (Every Wednesday, SABC) ONE TIME EVENTS • Pup Parade (Dehlila Snell, Alta Baja Market) • Univision Pop Up Concert, Kevin Ortiz ( SABC & DTI, Sponsorship/ Permits for Calle Cuatro Plaza) • Tom Umburg Swearing -in Ceremony ( SABC & DTI, Permits for Second Street Promenade) • CSUF orientation welcoming the Titans (Second Street Promenade) Other programming for the associations will include ongoing social media marketing, funding for the Downtown Restaurant Association, Bridal Association, Art Association, Professional Internship Programs, downtown stakeholder meetings, holiday promotions, website development and maintenance, and ongoing support for small businesses. 12A-5 rt� V"f Ln Lill �3 V O T3 1M r+ 0 LA r+ r+ I ATTACHMENT A BUSINESS IMPROVEMENT DISTRICT BOUNDARY FLOWER ST. Z� x 4 BIRCH ST. ❑ O El ! ❑ ❑❑�� 57. SYCAMORE ST. F-1 F] F-1 F BUSH ST. F-1 F-1 ❑ ❑ SPURGEON i 1:1 El ❑ 1:1 ❑ ST. FRENCH ST. MONfIMEN Si. 12A-6 ATTACHMENT 2020 ANNUAL ASSESSMENT FORMULA The following businesses located within the boundaries of the Business Improvement District (BID), classified under City Ordinance NS 1690 as Amusement Services, Pawnbrokers, Service Station and Classification A, including, but not limited to Retail Sale of Goods, Hotel and Motels, Theaters and Food Establishments, shall pay an amount equal to one and one-half times their annual business license fee. Businesses classified as Commercial Rental Property, Rental Property, Residential and Rooming House shall pay an amount equal to one -quarter times their annual business license fee. All other businesses, including Professions, Trades and Services within the boundaries of the proposed Business District, shall pay an amount equal to their annual business license fee. Once the assessment formula is established, it cannot be changed without written notice to all businesses within the boundaries of the proposed Business Improvement District and a public hearing held by the City of Santa Ana. 12A-7 i::cul:3itfi ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT PROPOSED BUDGETS SUMMARY 2020 BID Assessments Operating Fund - $200,000 ($100K for each organization) Downtown Inc. — BID Budget 2020 LINE ITEMS SUBLINE ITEMS ! BUDGET Expenditure Plan Personnel j i i 42,500.001 ! Insurance 2,500.001 Technology i 3,000.00 i Office Supplies r I e 1,000.00 ° Communication 7,500.00 11 Events/Marketing !i ! savor 2020 1 2,500.001 1 Hofidays ! 1 3,500.00 Arfwalk/Arts 1 i 12,000.001 Popups ! 4,000.00 i Meetings �r i 4,000.00 Training/Education ! 1,250.00 ! Dues & Subscriptions i 1,250.0011 Professional/Contractors i 10,000.00 ! Audits/Financial Reports 1 4,250.001 Misc. Expenses ! 750.00 ! TOTAL REIMBURSEMENT I 100,000.00 i 12A-8 ATTACHMENT C-2 Santa Ana Business Council — BID Budget 2020 SUBLIME ITEMS BUDGET Expenditure Plan Prof essiona I/C ortractors 46, 950.00 Professional Services 7,800.00 Office & Adrninistrafiion 700.00 Books & Subscriptions 600.00 Meetings & Education 3,750.00 Printing 3,000.00 Events/Marketing Regional Food Event Savor 2020 2,500 Regional Education Event Boca de Oro 2,500 Regional Media Event Like (Santa Ana Media Summit) 1,500 City Wide Arts Event Like (Art Round Tables) 1,000 Downtown Business Event Downtown Annual Forum 2,500 Downtown Retail Event Like (Bridal Expo) 2,500 Educational Pipeline Event Like (Downtown Threads Fashion 2,000 Downtown Piace Making Like ( Banners, Plants, Parklets, Lii 2,500 City Wide Community Event Like (Santa Ana Street Breakfast) 2,500 Miscelaneous Event Event Opportunity 2,000 Marketing 10,000.00 Sponsorships 5,700.00 TOTAL REIMBURSEMENT 100,000.00 12A-9 RESOLUTION NO. 2019- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO LEVY AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT FOR THE YEAR 2020 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby, finds, determines and declares as follows: A. By Ordinance No. NS-1715, adopted February 6, 1984, the City Council of the City of Santa Ana established the Downtown Santa Ana Business Improvement Area pursuant to sections 36500 et seq. of the California Streets and Highways Code; and B. As provided in Ordinance No. NS-1715, the City Council is authorized to levy an assessment in the following amounts for the improvements and activities of the Downtown Santa Ana Business Improvement Area: (a) For amusement services, pawnbrokers, service stations, retail sales of goods, hotels, motels, theaters, food establishments: an assessment in an amount equal to one and one-half (1.5) the annual business license fee. (b) For commercial and residential rental property: an assessment in an amount equal to one-fourth (0.25) the annual business license fee. (c) For all other businesses: an assessment in an amount equal to the annual business fee. Section 2. The improvements and activities for which the assessment revenues may be used in the Downtown Santa Ana Business Improvement District pursuant to Ordinance No. NS-1715 are as follows: (a) Decoration of any public place. (b) Promotion of public events. (c) Furnishing of music in any public place. Resolution No. 2019-XXX Page 1 of 3 12A-10 W7:110.111 a (d) The general promotion of business activities. Section 3. The Downtown Santa Ana Business Improvement District is located as shown on Attachment A to the Assessment Report, attached hereto as Exhibit 1 and incorporated herein by reference. Section 4. The Assessment Report is also on file with the Clerk of the Council to which reference may be made for a full and detailed description of the improvements and activities to be provided for the year 2020, the boundaries of the area, and the proposed assessments to be levied upon the businesses within the area for the year 2020. Section 5. A public hearing shall be held by the City Council at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California at its regular meeting of December 3, 2019, at 5:45 p.m., or as soon thereafter as the matter may be heard, for the purpose of determining whether to impose the above said assessment for the year 2020 for the improvements and activities described in the report. Section 6. At the public hearing, written and oral protests may be made in accordance with sections 36524 and 36525 of the California Streets and Highways Code. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. Every written protest shall be filed with the Clerk of the Council at or before the time fixed for the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. Section 7. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2019-XXX Page 2 of 3 12A-11 EXHIBIT 2 ADOPTED this day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R,.,Carvalho, City Attorney m Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 'Ward 4 Representative Vacant CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2019-XXX Page 3 of 3 12A-12