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2014 BID Intent to Levy December 16, 2013 Page 2 In 2008, the City Council approved the establishment of the Downtown Santa Ana Community Management District (commonly referred to as the PBID) and put the BID in suspension. The PBID resulted in a levy on property owners rather than businesses. On February 4, 2013, the City Council adopted Ordinance No. NS -2842 repealing Article XX of Chapter 13 of the Santa Ana Municipal Code disestablishing the Downtown Community Management District. With the disestablishment of the PBID, several downtown merchants and property owners expressed an interest in reactivating the BID to receive funding to promote the safety, maintenance, and overall economic stability of the Downtown. At its meeting on July 1, 2013, the City Council reactivated the BID and levied the assessment for 2013. To administer the activities of the BID, the City executed operating agreements with Downtown Inc. and the Santa Ana Business Council. These agreements contained provisions to ensure proper administration and distribution of the funds. Provisions are included for items such as the annual budget, financial record keeping, fund distribution, and board composition and meeting requirements. Given that this is the first year of the reactivation of the BID and both organizations have already begun incurring expenses for budgeted events, the Agreement provided for $20,000 in upfront funding to each organization for this first year only, subject to subsequent receipt of verifiable invoices and /or receipts. As of November 1, 2013, the City has received $190,000 total in BID funds from the 2013 assessment period. Each group has roughly $95,000 to expend on the remaining 2013 activities and carryover into the 2014 assessment year. Staff has advised the two business associations to conservatively estimate their 2014 budgets at $100,000 each. 2014 Assessment Since the BID was reactivated so late in 2013, the process for 2014 must now begin in order to allow the 2014 assessment levy to be incorporated into the business license bills and proceed on normal billing cycles. The 2014 Assessment Report contains the basis and method of levying the assessment, estimated budgets from the two business associations for providing special events and other promotional activities in the upcoming year, and a map of the BID boundaries. The Assessment Report presented for consideration and recommended for approval has been reviewed by the City Attorney's Office and determined to meet state law requirements. After approval of the report, the next course of action is to conduct a public hearing, which is scheduled for January 7, 2014. FISCAL IMPACT If the recommended action item is approved, there is no direct fiscal impact associated with this action. The City serves as a pass through for BID revenue in accordance with the Assessment Report and any approved operating agreements. 12A -2