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Downtown Santa Ana BID Intent to Levy Assessment for 2016 November 17, 2015 Page 2 Terms On July 1, 2013, the City Council activated the current BID and the City executed operating agreements with Downtown Inc. and Santa Ana Business Council to administer the activities of the BID, These agreements contain provisions to ensure proper administration and distribution of funds; provisions are included for Items such as the annual budget, financial record keeping, fund distribution, and board composition and meeting requirements. The terms of these Operating ,Agreements commenced on September 17, 2013 and will terminate on September 17, 2016, unless terminated sooner due to any violations of the provisions in the agreements, or If the BID Is not approved in any given year, The agreements are renewed automatically in one year renewal terms, unless either party gives at least two months notice of termination. Each organization receives roughly $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. Downtown Inc. will carry over a reserve of approximately $30,000 into 2016. The Santa Ana Business Council will carry over a reserve of approximately $100,000 into 2016. Both of these numbers are estimates as of October 1, 2015. If the BID is successfully renewed, each organization will receive an additional allocation of roughly $100,000 each in January 2016. Business Improvement District LBLW Baokoround On February 6, 1984, the City Council adopted Ordinance No. NS -1715 pursuant to state law, creating a Business Improvement District (BID) In Downtown Santa Ana. The BID was established as a means of providing the downtown business community with the funding to promote events and create promotional materials, increase the security presence, enhance maintenance of the downtown shopping corridors, and implement streetscape Improvements to the area. The BID is funded through an additional charge on the business license tax for those businesses within the BID boundary (Exhibit 1). In 2008, the City Council approved the establishment of the Downtown Santa Ana Community Management District (commonly referred to as the PBID) and puff 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 thereby 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. The City Council activated the current BID on July 1, 2013 and approved the operating agreements for the two associations administering the BID on September 17, 2013, 12A -2