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Downtown Business Improvement District Intent to Levy Assessment for 2021 November 17, 2020 Page 2 DISCUSSION The 2021 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 15, 2020. 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 FY 2019-20, 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 the following: First Saturday Artwalk, re -instated free Trolley rides, Savor Santa Ana, Boca De Oro Literary Festival, 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. 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 Unit- Fund Description Accounting Unit, Estimated Account Account Description Amount FY 20-21 09301001-24036 Business Improvement Trust & Agency, $50,000 (Jan. — June) District Downtown Inc. FY 20-21 09301001-24043 Business Improvement Trust & Agency, Santa $50,000 (Jan. — June) District Ana Business Council FY 21-22 09301001-24036 Business Improvement Trust & Agency, $50,000 Jul —Dec. District Downtown Inc. FY 21-22 09301001-24043 Business Improvement Trust & Agency, Santa $50,000 (July —Dec.) District Ana Business Council Total Amount $200,000 12A-2