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Home My WebLink About19C - DOWNTOWN SA BUSINESS - ANNUAL REPORT 2006 CITY COUNCIL MEETING DATE: REQUEST FOR COUNCIL ACTION CLERK OF COUNCIL USE ONLY: JANUARY 16, 2007 TITLE: Cf.:::: DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2006 ANNUAL REPORT AND 2007 BUDGET o~ CITY MANAGER APPROVED o As Recommended o As Amended o Ordinance on 1 ,( Reading o Ordinance on 2"' Reading o Implementing Resolution o Set Public Hearing For CONTINUED TO ---- FILE NUMBER RECOMMENDED ACTION 1. Approve the 2006 Annual Report and the 2007 Budget for the Downtown Santa Ana Business Improvement District. 2. Adopt a resolution of intention to levy an annual assessment for calendar year 2007 and establish a time and place for a public hearing to be held by the City Council on February 5, 2007. ACTIONS BY COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION 1. Found that the 2005-2006 Downtown Santa Ana Business Improvement District Annual Report complies with the California Streets and Highways Code and approved the 2005-2006 Annual Report. 2. Directed the Deputy City Manager for Development Services to file the Downtown Santa Ana Business Improvement District 2005-2006 Annual Report and 2007 Budget as amended with the City Clerk for City Council approval or modification. At its Regular Meeting of December 5, 2006, the Community Redevelopment and Housing Commission voted 6:0 (Turner absent) to continue this item to a Special Meeting on December 13, 2006. The recommended actions were approved Housing Commission by a vote of 5: 1 Special Meeting of December 13, 2006. by the Community Redevelopment and (Macres No, Turner absent) at its DISCUSSION On February 6, 1984, the City Council adopted Ordinance No. NS-1715 pursuant to Section 36500 et seq. of the California Streets and Highways 19C-1 DT S.A. BID 2006 Annual Report and 2007 Budget January 16, 2007 Page 2 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 proposed budget for 2007 has been developed in cooperation with the Downtown Santa Ana Business Council, La Calle Cuatro de Santa Ana Association, Cart Vendors and Merchants of Historic Santa Ana, Inc., and the Fiesta Marketplace Partners (Associations). As a result of input from the Associations and the BID Advisory Board, the 2007 BID budget focuses on two key areas: (1) continued promotions and marketing of the BID (as permitted by Ordinance No. NS-1715) and (2) maintenance/safety/security services that equitably cover all the streets in the BID area. The activities described in item (2) require an affirmative action by the City Council and are permitted by California Streets and Highways Code Sections 36513 (d), 36533 (c), 36534 (a) (3), and 36542 (a) . The activities and improvements described and recommended in the 2007 BID Budget and 2006 Annual Report may be approved pursuant to Sections 36533 (c) of the California Streets and Highways Code. The estimated contribution from the 2007 BID budget for items 1 and 2 is $229,100. The 2006 Annual Report/2007 Annual Budget contains the basis and method of levying the assessment, an estimated cost of providing the improvements and activities and the amount of surplus revenue carried over (Exhibit A). In order to comply with State law, the City Council must approve the annual report and budget as well as conduct a public hearing prior to levying the annual assessment. FISCAL IMPACT There is no fiscal impact associated with this action. St~~?1jrding Deputy City Manager for Development Services Community Development Agency SGH/NE/mlr H:\ACTIONS\2007 CC\DTSA BID2006AnnRept2007Bdgt 1-16-07 REVISED by lcp.doc 19C-2 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2006 ANNUAL REPORT JANUARY 16, 2007 EXHIBIT A 19C-3 2006 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 two representatives Downtown associations (Downtown Santa Ana Business Council and La Calle Cuatro De Santa Ana Association) hosted a variety of major community events and promotions during 2006, they included: . Cinco De Mayo Celebration . July 4th Celebration . Fiestas Patrias de Orange County El Grito Ceremony, Festival and Parade . Fiestas de las Americas Festival . Art Openings . Car Shows . Concerts . Holiday Events 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 and other policies pertaining to the BID. Working with information provided by staff, the Downtown associations developed the 2007 BID budget. EXHIBIT A 19C-4 2007 Budget Plan As a result of input from the Associations and the BID Advisory Board, the 2007 BID budget focuses on two key areas: (1) continued promotions and marketing of the BID (as permitted by Ordinance No. NS-17l5) and (2) maintenance/safety/security services that equitably cover all the streets in the BID area. The estimated contribution from the 2007 BID budget for items I and 2 is $229,100. The 2006 Capital Improvement fund will carry forward $352,500, which is dedicated to Phase II of Downtown Streetscape Project and special projects. The Phase II Streetscape Project is anticipated to commence Spring 2007, The City/Agency has dedicated $1.5 million towards the completion of this project. EXHIBIT A 19C-5 ~ c::c IoU cc c::c ..... ::z: IoU == IoU :::- = cc a.. == - en en IoU ::z: - en = CCl c::c ::z: c::c c::c ..... ::z: c::c en ::z: 3: = ..... :z: 3: = = 2:::]," n~eJ! ..... ~ .............. ia lnus. H:)Kro . r:rCrODDDDd i ODD Ddu L=:JDD DiDIT~ ....I.....~i~i D .- IT ~ i ~1II1 IT' . . . ~~. ... ~;s s .. O +. ~ t .... .. .. .....~ 0 .~~ . . . . . . ... ~rlS .~)I0nYdl. ........11...1111 . 81 . . . . . . ~ i ~ ~D " ~ m $SOlI ~ ~ ~ ill] Om .. ~ I D D ~ ~ ~ ~ '" 0 ~r lB!HS ~~~\ -" -, ( ti3.'lIOlJ c ~ ~ 1 ( J I J ,- 1 I . 19C-6 Attachment B 2007 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 A 19C-7 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2007 BUDGET SUMMARY OPERATING FUND REVENUE BID Assessments - current $ 195,000 Prior Year Carry Forward 34,100 Total Revenue $229,100 EXPENDITURES District-wide Maintenance Programs $ 30,000 District-wide Safety/Security Programs 60,000 Holiday Decorations 9,900 Promotions and Marketing 129,100 Downtown Partner Contracts . 4'h St. Promotions Collaborative' $67,132 (52%) . SADBC Promotions $61,968 (48%) Total Expenditures $229,100 * The name 4th Street Promotions Collaborative is not an official name or designation; it is simply a "coined" name - an easier way to refer to this group of business interests. The 4th Street Promotions Collaborative is a geographic group comprised of Fiesta Marketplace Partners, La Calle Cuatro de Santa Ana and the Push Cart Vendors & Merchants of Historic Santa Ana. They are working together to develop and implement a Promotions and Marketing Program that will benefit the diverse business interests along 4lh Street. EXHIBIT A 19C-8 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2007 BUDGET SUMMARY CAPITAL IMPROVEMENT FUND (No change - this activity was committed to in prior years; no action required) REVENUE BID Assessments - current $ -0- 2005 Capital Improvement Carry Forward 300,000 2005 Operating Fund Carry Forward 52,500 Total c.r. Revenue EXPENDITURES Phase II Streetscape Project $ 300,000 District-wide Special Projects 52,500 Total C.r. Expenditures EXHIBIT A 19C-9 $352,500 $352,500 (LCP, 1/8107) RESOLUTION NO. 2007-XXX 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 AREA FOR THE YEAR 2007 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, 1989, 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. B. Since the adoption of said ordinance, the City Council has levied an assessment in the following amounts for the improvements and activities of the Downtown Santa Ana Business Improvement Area: 1. For amusement services, pawnbrokers, service stations, and Classification A, including but not limited to, 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. 2. For commercial and residential rental property, residential and rooming house: an assessment in an amount equal to one-quarter (0.25) the annual business license fee. 3. For all other businesses: an assessment in an amount equal to the annual business fee. Section 3. The City Council presently intends to continue said assessment in the same amounts during the year 2007. Section 4. The improvements and activities for which the assessment revenues may be used in the Downtown Santa Ana Business Improvement Area pursuant to Ordinance No. NS-1715 are as follows: 19C-10 Resolution No. 2007-XXX Page 1 of 3 A. Decoration of any public place. B. Promotion of public events. C. Furnishing of music in any public place. D. The general promotion of business activities. Section 5. The activities and improvements, including those identified in Section 4, for which the 2007 BID revenues will be used are: (1) promotions and marketing of the BID and (2) maintenance/safety/security services that equitably cover all the streets in the BID area. Promotions and marketing are authorized under Ordinance No. NS-1715. Maintenance, safety, and security services are authorized by California Streets and Highways Code Sections 36513(d), 36533(c), 36534(a)(3), and 36542(a). A description of these activities and improvements are included in the report on file with the Clerk of the Council. Section 6. The Downtown Santa Ana Business Improvement Area is located as shown on Attachment A, attached hereto and incorporated herein. Section 7. A report is 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 2007, the boundaries of the area, and the proposed assessments to be levied upon the businesses within the area for the year 2007. Section 8. 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 February 5, 2007 at 6:00 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 2007 for the improvements and activities described in the report. Section 9. 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. The City Council shall hear and consider all protests. 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. 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, Resolution No. 2007-XXX Page 2 of 3 19C-11 Section 10. 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. ADOPTED this day of ,2007. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Lorena C. Penaloza Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2007 -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 19C-12 Resolution No. 200l-XXX Page 3 of 3 ~ c::c IoU cc c::c ..... ::z: IoU == IoU :::- = cc a.. == - en en IoU ::z: en = CCl c::c ::z: c::c c::c ..... ::z: c::c en ::z: 3: = ..... :z: :s: o = ~r ~~~\ 'Q-. -, 2::jil" nio..VlllllllO.'; ..... i .............. ~.Q.~ .... ........ - . . . ImI1S. ~~ . ClO..ODODOG i ODD DDd LJDD DIDa~ .........~i~i D ,- LlI i 1mI1 u. . .. .@,.. ". ~~i .. O ... ~ j!; .. '" ~ t . , .. .. ~ .....~~ 0 . - " . .r . . . . . . . ... ~rlS .1I1O.1VYd'. ........III...aa . lei ~ ~ ~D OJ o IllllS SSOH I g ~ ill] D@ .. i;i t D D; - ~ = '" ~ = l' lH.'ADH I I II 19C-13 19C-14