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Home My WebLink About75B - 2005 DOWNTOWN BUSINESS IMPROVEMENT AREA CITY COUNCIL MEETING DATE: ~ ~ REQUEST FOR COUNCIL ACTION CLERK OF COUNCIL USE ONLY: NOVEMBER 21, 2005 TITLE: APPROVED PUBLIC HEARING - 2005 DOWNTOWN BUSINESS IMPROVEMENT AREA REPORT AND 2006 ASSESSMENT RESOLUTION o As Recommended D As Amended o Ordinance on 151 Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For A al!dC2 ITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION 1. Adopt a resolution confirming the calendar year 2005 Annual Report and approving the levy of the 2006 assessment for the Downtown Santa Ana Business Improvement Area. 2. Authorize the Executive Director of the Finance and Management Services Agency to allocate the budgeted funds. DISCUSSION On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36500 of the 1979 State of California Street and Highway Code, creating a Business Improvement District (BID) in Downtown Santa Ana. The BID allows the businesses to assess themselves in order to raise funds for the marketing promotions, maintenance and improvements of the Downtown area. On October 17, 2005, the City Council approved the 2005 Annual Report and the 2006 Budget for the Downtown Santa Ana Business Improvement Area, and set this public hearing in accordance with state law. The subj ect resolution will confirm the 2005 Business Improvement Area Report and constitute the levy of an assessment. 758-1 PH - 2005 Downtown Business Improvement Area Report and 2006 Assessment Resolution November 21, 2005 Page 2 FISCAL IMPACT Th~~fiscal impact associated with this action. j<~ CI,Jtftt( Patricia C. Whitaker Executive Director Community Development Agency PCW/NE/mlr H:\ACTIONS\2005 CC\PH - 2005DTBuslmprvAreaRep2006AssessReso 11-21-05.doc 758-2 RESOLUTION NO. 2005-113 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA LEVYING AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT AREA FOR THE YEAR 2005. THE CITY COUNCIL FOR THE CITY OF SANTA ANA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The City Council for the City of Santa Ana hereby, finds, determines and declares as follows: A. On February 6,1984, the City Council, by its Ordinance No. NS-1715, established the Downtown Santa Ana Business Improvement Area. B. On October 17, 2005, the City Council received the 2005 Annual Report for the Downtown Santa Ana Business Improvement Area (the "Report") and set its regular meeting of November 21,2005 as the time and place for public hearing on the levy of an assessment on and for the Downtown Santa Ana Business Improvement Area. C. On November 21,2005, the City Council approved the 2005 Annual Report for the Downtown Santa Ana Business Improvement Area. Section 2. The Report is hereby confirmed as written, and the levy of an assessment during the year 2006 in accordance with Attachment B of the Report, a copy of which is attached hereto and incorporated herein by reference, is hereby approved. Section 3. Unless and until changed by resolution of the City Council, the fiscal year of the Downtown Santa Ana Business Improvement Area shall be the calendar year. Section 4. Notwithstanding anything to the contrary in Ordinance No. NS- 1715, from this time forward, the City Council may take action by resolution on any matter pertaining to the Downtown Santa Ana Business Improvement Area as to which such action by resolution is authorized by part 6 (commencing with section 36500) of Division 18 of the Streets and Highways Code of the State of California, known as the "Parking and Business Improvement Area Law of 1989." Except as herein modified, Ordinance NS-1715 shall remain in full force and effect. 758-3 ADOPTED this day of ,2005. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Michael Vigliotta Deputy City Attorney AYES: Coundlmembeffi: NOES: Council members: ABSTAIN: Council members: NOT PRESENT: Council members: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2005-113 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of Council City of Santa Ana 758-4 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2005 ANNUAL REPORT OCTOBER 17,2005 PREPARED By: COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION EXHIB IT 1 758-5 2005 ANNUAL REPORT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT Background The Downtown Santa Ana Business Improvement District (BID) was established in February 1984 by the Santa Ana City Council as a means of providing the Downtown business community with funding for promoting the area, increasing security, enhancing maintenance and implementing physical improvements. The Community Redevelopment and Housing Commission (CRHC) of the City of Santa Ana, as the BID Advisory Board, is responsible for the preparation and administration of the BID's budget and annual report, its promotional and marketing programs, security and maintenance plans, and physical improvement projects. Improvement Area Boundaries The geographic boundaries of the district remain unchanged from the original 1984 area, and they include over 700 retail, service and professional members (see Attachment A). 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 volume of the business (see Attachment B). Summary of Improvements and Activities The three representative Downtown associations (Downtown Santa Ana Business Council, La Calle Cuatro De Santa Ana Association, and the Fiesta Market Place Promotions Committee) hosted a variety of major community events and promotions during 2005, they included: . Cinco De Mayo Celebration . July 4th Celebration · Fiesta Patrias Califomia/EI Grito Celebration . The Latino Film Festival On October 6, 2003, the Santa Ana City Council appointed the CRHC as the Downtown Santa Ana BID Advisory Committee. As the BID Advisory Committee, CRHC is responsible for recommending an annual budget by early October 2005 and other policies pertaining to the BID. Working through the Community Development staff, the three Downtown associations developed the 2006 BID budget. One of the items discussed with the Downtown associations was the BID Consultant. The 2005 BID budget allowed $15,000 for hiring a BID Consultant to review and analyze the structure of the BID. After a formal request for proposal process and interviews, representatives of the Downtown and City staff selected New City America, Inc. of EXHIBIT 1 758-6 San Diego, California to perform a potential two-phase project. The initial work preformed by New City America, Inc. will include the following tasks: 1. Meet with staff on the strengths and weaknesses of the existing BID and review the ordinance, revenue generation and annual budget; 2. Meet with the various stakeholder groups and determine the level of support and popularity of the existing district; and 3. Write a report on the findings of the existing BID and make recommendations for action. This initial phase will review the feasibility of versus a "Property" based BID the existing "Merchant" based BID structure. 2006 Budget Plan Based on the feedback from the Associations, the 2006 BID budget focuses on three key areas: (1) continued promotions and marketing of the BID; (2) maintenance services that equitably cover all the streets in the BID area; and (3) implementation of the Capital Improvement Project for streetscape improvements along 4th Street (Attachment C). The estimated contribution from the 2006 BID budget for items 1 and 2 is $212,000 and item 3 would be $352,500. EXHIBIT 1 758-7 ~ ex: LLI a:::: ex: S- :z: LLI :E LLI ::::- C) a:::: a... :E - en en LLI Z - en == cr:::::a ex: z ex: ex: I- Z ex: en z 3: C) I- Z 3: C) Q ...-,.,,'. :...\:- .!f/11 :::>::~ ' ~l =';.J)~),- I " 2:J~...[]'1S :...::.:;.o..V111UIIOW": ..... = .............. ::.:;.u-: ::. ..... ....,..... '-W . ;;::: . e: := e: e:.. .... -..,. "'. . . 131m. HOHiHl . L~rD"[J 0 0 D [j IT ~ ODO oDd ODD DiDIT~ D "MO_ IT I HOlliS r-r ~)~ u %yi l!: a: ... "" ~ <.> <.> ~ <.> i D '" '" ~ .... "" => Q ..... SSOll OJ ill] t>ill 0 D Q9 .,; D D ~ ~ "" "" t t: ~ .A..a..uR~a.aR a = C> cc ~ .... V> a= i:: mm -. ( .__....._._._..___._--1...1..._................_.........__ ~3!AOH L_...~_......_.__._.__L, 1 758-8 Attachment B 2006 ANNUAL ASSESSMENT FORMULA The following businesses located within the boundaries of the Business Improvement District, 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 with the boundaries of the proposed Business Improvement District and a public hearing held by the City of Santa Ana. EXHIBIT 1 758-9 Attachment C - Page 1 of 2 REVISED 9.2(}'()5 DOWNTOWN BUSINESS IMPROVEMENT DISTRICT BUDGET 2006 Revenues Bid Tax - City of Sana Ana Operating Fund Carryover - 2003 Capital Improvement Funds $160,000.001 $67,500.00 $0.00 Total Operating Revenue $227,500.00 Expenses Maintenance & Lighting Enhancement Sidewalk Steamcleaning Maintenance Promotions La Calle Quartro Santa Ana Downtown Business Council Decoration Install / Storage - Christmas Conferences Subscriptions $30,000.002 $20,000.003 $162,000.00 $84.240 Total Operating Expenses $77.760 $10,000.00 $5,000.00 $500.00 $227,500.00 TOTAL OPERATING FUND $0.00 Capital Improvement Revenue Capital Improvement - Carryover - 2005 Operating Fund Carryover 2005 Total Capital Improvement Revenue $300,000.00 $52,500.00 $352,500.00 Capital Improvement Expenses Capital Improvement - Phase II Streetscape Project Capital Improvement - Special Projects Total Capital Improvement Expenses $300,000.004 $52,500.00 $352,500.00 TOTAL CAPITAL FUND $0.00 Estimated 100% assessment amount. Amount subject to change. Amount covers the cost for one additional full-time team member to the Ambassador Team This team member will enhance the current crew as well as work on special cleaning projects in the BID area 2005 budgeted amount of $110,000 encumbered for the period 11-2005 through 10-2006 EXHIBIT I 758-10 Attachment C, Page 2 of 2 which covers cleaning all streets in BID that are not cleaned by City Contract $20,000 budged for 2006 covers the period of 11-2006 & 12-2006 and special c1eanings that may be needed. 4 Budgeted amount is BID's share of Downtown Streets cape Project Phase II that breaks down as follows: $300,000 BID funds $300.000 City funds $600,000 Total Project Amount EXHIBIT 1 758-11 758-12