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Home My WebLink About2014-083 - Santa Ana Levying an Assessment for the Downtown Santa Ana Bussiness Improvement PlanQxs 11- 18 -14) RESOLUTION NO. 2014 -083 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA LEVYING AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT AREA FOR CALENDAR YEAR 2015 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. On February 6, 1984, the City Council, by Ordinance No. NS -1715, established the Downtown Santa Ana Business Improvement Area pursuant to California Streets and Highways Code Sections 36500, et seq. (the "BID Law "). B. On October 21, 2014, the City Council received the 2014 Annual Report for the Downtown Santa Ana Business Improvement Area (the `Report'). C. On October 21, 2014, the City Council adopted Resolution 2014 -067 approving the Report and setting a public hearing for November 18, 2014, at which time protests could be made to the proposed levy of the 2015 annual assessment for the Downtown Santa Ana Business Improvement Area (the "Annual Assessment'). D. On November 18, 2014, at the time and place called for in Resolution 2014 -067, the public hearing was continued to the December 2, 2014 City Council meeting and at subsequent meeting conducted a duly noticed public hearing at which written and oral protests to the proposed Annual Assessment were made and considered as provided in Streets and Highways Code section 36524 and 36525. E. Qualifying written protests constituting a majority of the owners of the businesses paying the Annual Assessment were not received at or before the conclusion of the public hearing. Section 2. The 2015 Assessment Report is hereby confirmed, as is the levy of an assessment for the calendar year 2015 in accordance with Attachment B of the Report. A copy of the Report is attached as Exhibit 1 and incorporated herein by reference, and is hereby approved. Resolution No. 2014 -083 Page 1 of 2 ADOPTED this 2nd day of December, 2014. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Assistant City Attorney Mayor AYES: Councilmembers: Amezcua Benavides, Reyna, Tinajero (4) NOES: Councilmembers: None (0) ABSTAIN: Councilmembers: Martinez Pulido (2) NOT PRESENT: Councilmembers: Sarmiento (1) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2014 -083 to be the original resolution adopted by the City Council of the City of Santa Ana on December 2, 2014. Date: Pllk'4212/�4 Resolution No. 2014 -083 Page 2 of 2 Clerk of the Council City of Santa Ana Exhibit 1 DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT 2015 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 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 volumes of the business (see Attachment B). 2015 Budget Plan Based on the feedback from the two Associations, Downtown Inc. and the Santa Ana Business Council Inc., the 2015 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 C). The assessments from the 2015 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. Both associations will have carryover funding from the previous year, which is estimated to be approximately $60,000 for Downtown, Inc. and approximately $100,000 for the Santa Ana Business Council. This carryover has been incorporated into a reserve fund for their 2015 budgets. This reserve funding may be used for additional events and promotions throughout the year. These two representative business associations are proposing to host a variety of major community events and promotions, including, but not limited to the following: Downtown Inc. Sound Downtown /Restaurant Week Art Walk (12x) OC Pride Patchwork (2x) Savor Santa Ana Business Council Valentine's Day Plaza Primavera 5 de Mayo Dia de las Madres Parade /Fiestas OC Film Fiesta Dia de los Muertos Danzantes del Sol Plaza Navidena Art Walk Other programming for the associations will include ongoing social media marketing, funding for the Downtown Restaurant Association, holiday promotions, website development and maintenance, and purchase of streetscape amenities such as benches along the Wellness Corridor. ATTACHMENT A BUSINESS IMPROVEMENT DISTRICT BOUNDARY ATTACHMENT B 2015 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. ATTACHMENT C DOWNTOWN BUSINESS IMPROVEMENT DISTRICT PROPOSED BUDGETS SUMMARY 2015 OPERATING FUND REVENUE 2015 BID Assessments — Projected $200,000 Prior Year Carry Forward $160,000 Total Revenue $360,000 EXPENDITURES Downtown Inc. ADMINISTRATION Overhead (Office Supplies, Insurance, Professional Services) $10,000 MARKETING Sound Downtown Artwalks (12x) OC Pride Patchwork (2x) Savor Events Total $10,000 $15,000 $5,000 $10,000 $10,000 $50,000 Advertising (Print/Online) $25,000 OTHER PROGRAMMING Restaurant Association $5,000 Artist Retention Program $5,000 Misc. $5,000 Other Total $15,000 2014 CARRYOVER $60,000 TOTAL $160,000 Santa Ana Business Council ADMINISTRATION Overhead (Office Supplies, Insurance, Professional Services) $10,000 MARKETING Serenade on the Streets $60,000 Special Event Sponsorship Valentine's Day Plaza Primavera 5 de Mayo Dia de las Madres Parade /Fiestas OC Film Fiesta Dia de los Muertos Danzantes del Sol Plaza Navidena Art Walk Event Sponsorship Total $10,000 Web, Social Media, Advertising, & Promotional Materials $60,000 OTHER PROGRAMMING Streetscape Improvements $10,000 2014 CARRYOVER $100,000 2016 RESERVE (Projected) $50,000 TOTAL $200,000