HomeMy WebLinkAbout2003-011 - Levying an Assessment for the Downtown Santa Ana Business Improvement Area for the Year 2003RESOLUTION NO. 2003-011
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA LEVYING AN ASSESSMENT FOR THE
DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT
AREA FOR THE YEAR 2003
1/14/03LES
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:
The City Council of the City of Santa Ana, by its Ordinance No. NS-1715,
adopted February 6, 1984 established the Downtown Santa Ana Business
Improvement Area;
On December 16, 2002, the City Council received and approved the 2002
Annual Report for the Downtown Santa Ana Business Improvement Area
(the "Report") and, by its Resolution No. 2002-093, set its regular meeting of
January 21,2003, as the time and place for public hearing on the levy of an
assessment on and for the Downtown Santa Ana Business Improvement
Area;
Section 2. The Report is hereby confirmed as written, and the levy of an
assessment during the year 2003 in accordance with Attachment C of the Report, a copy
of which is attached hereto and incorporated herein by reference, is hereby approved.
Section 3. Unless and until changed by resolution of the City Council, the fiscal
year of the Downtown Santa Ana Business Improvement Area shall be the calendar year.
Section 4. Notwi{hstanding anything to the contrary in Ordinance No. NS-1715,
from this time on, the City Council may take action by resolution on any matter pertaining
to the Downtown Santa Ana Business Improvement Area as to which such action by
resolution is authorized by part 6 (commencing with section 36500) of Division 18 of the
Streets and Highway Code of the State of California, known as the "Parking and Business
Improvement Area Law of 1989." Except as herein modified Ordinance No. NS-1715 shall
remain in full force and effect.
ADOPTED this 21st day of January, 2003.
Resolution No. 2003-011
Page 1 of Z 0
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By: ,_~_;. ,¢-. ~
Lisa E. Storck
Assistant City Attorney
AYES:
NOES:
ABSTAIN:
Councilmembers:
Councilmembers:
Councilmembers:
NOT PRESENT: Councilmembers:
Alvarez, Bist, Christy, Franklin, Garcia, Solorio (6)
None (0)
None (0)
Pulido (1)
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of Council, do hereby attest to and certify the attached
Resolution No. 2003-011 to be the original resolution adopted by the City Council of the
City of Santa Ana on January 21,2003. ~f/
Clerk of Council
City of Santa Ana
Resolution No. 2003-0'11
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2002 ANNUAL REPORT I
I
FOR THE
DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT
Background
The Downtown Santa Ana Business Improvement District was established in February 1984 by
the Santa Ana City Council as a means of providing the Downtown business community with
funding for promoting the area, increasing security, enhancing maintenance and implementing
physical improvements. The 20-member Board of Directors for the Downtown Santa Ana
Business Association is responsible for the preparation and administration of the Association's
budget, its promotional calendar, marketing and public relations programs, security and
maintenance plans, and physical improvement projects.
Improvement Area Boundaries
The geographic boundaries of the District remain unchanged from the original 1984 area, and
they include approximately 680 retail, service and professional members (see Attachment A).
Assessment Formula
The formula for the Business Improvement District (BID) tax levy also remains unchanged from
the original 1984 ordinance and is based on the category and/or sales volume of the business (see
Attachment B).
Summary of Activities
The Downtown Santa Ana Business Association (DSABA) hosted several major community
events and promotions during 2002. The focus of this year's promotion calendar included
DSABA's partnerships in sponsoring such community events as Imagination Celebration and the
2002 Police and Fire Game Olympics. The Fiestas of the Americas continued to grow this year
with the expansion of our sponsorship-base to both national and regional corporations such as
General Motors, Nissan, Ralphs and ConAgra. Overall, the Fiestas of the Americas was a
success bringing over 225,000 people to the Downtown over the course of three days.
From the very outset of this fiscal year, the Association's Board of Directors have spent
numerous hours looking at how best to recalibrate the organization's focus into a blend that
balances the maintenance and growth of our existing Latino retail marketplace with opening our
invitational doors to the broader regional market. As part of that effort, the Board of Directors
developed the following Mission Statement and Objectives as the new fulcrum guiding the
direction of our next steps:
Resolution No. 2003-011
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Mission Statement
Creatively plan, develop and manage a Downtown experience providing a
culturally diverse, vibrant and prosperous urban destination.
· · Ob]ectives
Ensure that BID members are receiving true value and benefit from
th eir Association.
Become a credible voice with political and civic leaders, BID members
and our customers.
Attract and retain a prosperous business, arts and cultural community.
Communicate effectively within the membership.
Market the Downtown.
Partner with the City to improve parking facHities.
Evaluate, amend and implement new functional processes through a
reorganizational effort.
Ensure a safe environment.
AdditionallY, the Association has undertaken a reorganizational effort to more formally establish
an independent identity with a newly formulated set of Bylaws along with considerations on
whether DSABA should form as a Non-Profit Corporation. The bullet-point outline for these
new Bylaws has been submitted to the City Attorney for review. The Bylaws are expected to be
put before the newly seated Board during the January 2003 meeting for consideration and
adoption. The next steps for the Association will be to negotiate and enter into a Base Level
Service Agreement with the City in which both parties delineate their roles, responsibilities and
expectations in regards to the management and implementation of BID programs.
2003 Budget Plan
The Downtown Santa Ana Business Association budget for calendar year 2003 was approved by
the Association Board of Directors during its December 2002 meeting and is included for review
and approval by the City Council (see Attachment C). The budget has been prepared into three
distinct funds: Operating, Fiestas and Capital Improvement. The budget provides clear
delineation of the revenue sources and the various planned expenses that will support the
Resolution No. 2003-011
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programs and projects undertaken during 2003. The budget reflects a continued emphasis on
BID maintenance with a $105,000 allotment towards partnering with the City for a consistent
sidewalk steam cleaning and litter control program.
During 2003, DSABA will also embark upon an effort to establish an Intemet Website in a
marketing effort to its potential customer base as well as a communication tool with its
membership. The other focus will be to complete the construction of the 4th Street hardscape
impro~tements during the first few months of 2003 and commence with rebuilding the Capital
Improvement Fund for Phase II of the project (between French and Bush along 4th Street) which
will require a commitment on behalf of the Association for an additional $250 to $300k by 2006
as part of our partnership with the City.
Issues for Clarification
As part of the approved report, the Board of Directors of the Downtown Santa Ana Business
Association would like to request that the City Council direct the appropriate agencies within the
City to respond in writing to the following items:
(1) Clarify the ambiguity of the category of "hobbyist," and request the legislative language
as to when and how this delineation was decided.
(2) Provide the Board with a list of the businesses that have a Business License within the
BID, but do not pay the BID assessment fee. Explain the basis for these exemptions and
the legislative actions taken to support each exemption.
(3) Clarify the boundaries of the BID, particularly, the areas east of French that have changed
since 1984, and provide the documents legislating any change.
(4) Provide the Board with a monthly updated electronic version of the assessment role of all
businesses contained within the BID with all associated information in compliance with
the Califomia BID Law.
(5) Request that the City provide a clarification in writing on all existing agreements between
the City and DSABA, specifically in the areas of maintenance and the streetscape project,
by June 2003.
The Board believes that these requests are vital to their management of the Business
Improvement District, in strict adherence to the State of California BID Law, and that, without
the aforementioned information and responses, the actions of the Board will not allow for a fair
and equitable approach in their affairs.
Resolution No. 2003-011
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Resolution No. 2003-01 ~
Page 6 o~: 10
· S SSO~
ATI'A CI~Vi~ NT"A
IS SSOM
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ANNUAL ASSESSMENT FORMULA
The fo%lowing businesses located within the boundaries of the
Business Improvement District, classified under City Ordinance
NS 1690 as Amusement Services, Pawnbrokers, Service Stations and
Classification A, including, but not limited to Retail Sale of
Goods,~ Hotels 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.
ResolutionNo. 2003-011
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BUDGET SUMMARY
FISCAL YF..AR 2003
Approved Projected Proposed
2002 2002 2003
Operating Revenue
Bid Tax - City of Santa Ana $i98,000 $199,000 $i98,000
El Faison Lease $34,000 $36,000 $36,000
Interest Income $4,500 $1,920 $4,500
Operating Fund Carryover - 2002 $0 $0 $36,650
Operations Fund Reserve** $50,000 $50,000 $50,000
Total Operating Revenue $286,500 $286,920 $325,150
Operating Expense
Total Marketing & Public Relations $85,000 $52,000 $96,5Q0
Total El Faison Maintenance $5,000 $5,700 $8,200
Total District Maintenance $90,000 $50,000 $105,000
Total Capitol Improvements $20,000 $20,000 $20,000
Total Management and General $36,500 $33,890 $45,450
Total Operating Expense $236,500 $161,590 $275,150
TOTAL OPERATING FUND $50,000 $125,330 $50,000
Total Fiestas Income $25,000 $43,000 $30,000
Total Fiestas Expenses $3,500 $33,000 $20,000
TOTAL FIESTAS FUND $21,500 $I0,000 $10,000
Capital Improvement Revenue
Capital Reserve - Year 2000 $198,000 $198,000 $0
Capital Reserve - Year 200l $35,000 $53,500 $0
Capital Improvement Contribution - Year 2002 $20,000 $20,000 $0
Supplemental Contribution - Fiestas 2002 & 2003 $0 $27,000 $14,000
Supplemental Contribution - Operating Fund 2002 $0 $38,680 $0
Capital Improvement Fund Carryover 2002 $0 $0 $67,180
Capital Improvement Contribution - Year 2003 $0 $0 $20,000
Total Capital Improvement Revenue $253,000 $337,180 $101,180
Total Capital Improvement Expenses $270,000 $270,000 $0
TOTAL CAPITAL FUND*
(S17,000) $67,180 $101,180
* 3 Year Capital Improvement Fund
** To maintain a reserve fund in Opc~ations Fund
Resolution No. 2003-011
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ATTACHMENT C
DOWNTOWN SA~LTA ANA BUSINESS ASSOCIATION
OPERATING FUND
FISCAl. YEAR 2003
Approved Projected Proposed
2002 2002 2003
S¢cudV/ St0,000 S4,000 $10,000
El Faison Maintenance
El Faison - Utilities $2,000 $4,000 $S,000
El Faison - Trash $1,000 $1,200 $1,200
El Faison - Miscellaneous S2,000 $500 $2,000
TOTAL BID EXPENSE$ $236,500 $161,590 S275,150
TOTAL OPERATING FUND** $50,000 $125,330 $50,000
ATTACHMENT C
DOWNTOWN S,~k'T'A ANA ]BUSJ~'qE~$ I~.$$OClATiON I~esolution No. 2003-011
Page 9 o£ 10
FIESTAS FUND
FISCAL YEAR 2003
Approved Projected Proposed
2002 2002 2003
4030. License Agreement $15,000 $33,000 $20,000
4031 · Fiestas Funds Reserve $10,000 $10,000 $10,000
TOTAL FIESTAS REVENUE $25,000 $43,000 $30,000
6824 .Utilities 5500 $1,000 $1,000
Rentals $1,000 $1,000 $0
6831 · Contingency (Ribbon Cutti $2,000 $4,000 $$,000
Transfer to Capital Imp. Fu $0 $27,000 $14,000
TOTAL FIESTAS EXPENSES $3,500 $33,000 $20,000
TOTAL FIESTAS FUND $21,500 $10,000 $10,000
Resolution No. 2003-011
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ATTACHMENT C
DOWNTOWN SA~LTA ANA BU. SI_NES.S ASSOCIATION