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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />AUGUST 4, 2015 <br />TITLE: <br />SECOND AMENDMENT TO BUSINESS <br />IMPROVEMENT DISTRICT (BID) OPERATING <br />AGREEMENTS <br />(STRATEGIC PLAN NO. 3,4) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />NNEEME <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 10 Reading <br />❑ Ordinance on a Reading <br />❑ implementing Resolution <br />❑ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and the Clerk of the Council to execute the attached Second <br />Amendment to the operating agreements with Downtown Inc. and the Santa Ana Business <br />Council Inc., to increase the revolving fund account to a total amount of $40,000 for each entity, <br />subject to non - substantive changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On September 16, 2013, the City executed agreements with Downtown Inc. (DTI) and the Santa <br />Ana Business Council Inc. (SABC), for the programming and distribution of the Downtown Santa <br />Ana Business Improvement District (BID) assessment funds. The agreements contained <br />provisions to ensure proper administration and distribution of the funds, such as those pertaining <br />to the annual budget, financial record keeping, fund distribution, board composition and meeting <br />requirements. The term of those agreements are set to terminate on September 16, 2016. <br />On January 7, 2014, the City executed an amendment to the operating agreement to establish a <br />revolving fund account in the amount of $20,000 in order to finance the organizations' day to day <br />operations. This revolving fund provided upfront BID funds to each group for the administration of <br />their marketing and promotional activities. <br />On June 18, 2015, the City received a letter (Exhibit 3) from the University of California, Irvine <br />School of Law, indicating that they were representing both the SABC and DTI. The letter <br />requested that the revolving fund be increased to $40,000 to allow additional flexibility for both <br />organizations' budgets. This will allow both organizations to pay vendors and consultants upfront <br />as they are waiting for the City to reimburse their accounts for past events and promotional <br />activities. <br />25B -1 <br />