HomeMy WebLinkAbout55D - DOWNTOWN SA BUSINESS IMPROVEMENT DISTRICT 2005
REQUEST FOR
COUNCIL ACTION
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CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
OCTOBER 17, 2005
TITLE:
APPROVED
o As Recommended
o As Amended
o Ordinance on 151 Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
DOWNTOWN SANTA ANA BUSINESS
IMPROVEMENT DISTRICT 2005
ANNUAL REPORT AND 2006 BUDGET
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CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
1. Approve the 2005 Annual Report and the 2006 Budget for the Downtown
Santa Ana Business Improvement District.
2. Adopt a resolution of intention to levy an annual assessment for
calendar year 2006 and establish a time and place for a public
hearing to be held by the City Council on November 21, 2005.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
1. Found that the 2005-2006 Downtown Santa Ana Business Improvement
District Annual Report complies with the California Streets and
Highways Code and approved the 2005-2006 Annual Report.
2. Directed the Executive Director of the Community Development Agency
to file a 2005-2006 Annual Report with the City Clerk for City
Council approval or modification.
By a vote of 4:0 (Betancourt absent) at its Regular Meeting of October 4,
2005.
DISCUSSION
On February 6, 1984, the City Council adopted Ordinance No. NS-1715
pursuant to Section 36000 of the 1979 State of California Streets and
Highways Code, creating a Business Improvement District (BID) in Downtown
Santa Ana. On October 6, 2003, the City Council appointed the Community
Redevelopment and Housing Commission (CRHC) as the Downtown Santa Ana
Business Improvement District Advisory Board. As the BID Advisory Board,
the CRHC is responsible for making recommendations to the City Council on
550-1
Downtown Santa Ana Business Improvement
District 2005 Annual Report and 2006 Budget
October 17, 2005
Page 2
the expenditure of revenues derived from the levy of assessments, on the
classification of businesses, as applicable, and on the method and basis
of levying the assessments (including the annual budget) .
The 2005 Annual Report and proposed budget for 2006 (Exhibit 1) have been
developed in collaboration between the Downtown Santa Ana Business
Council, La Calle Cuatro de Santa Ana Association, and the Fiesta Market
Place Promotions Committee (Associations). Based on the feedback from
the Associations, the 2006 BID budget focuses on three key areas: (1)
continued promotions and marketing of the BID; (2) maintenance services
that equitably cover all the streets in the BID area; and (3)
Implementation of the Capital Improvement Project for streetscape
improvements along Fourth Street. The estimated contribution from the
2006 BID budget for items 1 and 2 is $212,000 and for item 3 is $352,500.
The Downtown Santa Ana Business Council, La Calle Cuatro de Santa Ana
Association, and the Fiesta Market Place Promotions Committee have all
indicated support of the proposed 2006 budget.
The 2005 Annual Report contains the basis and method of levying the
assessment, an estimated cost of providing the improvements and
activities and the amount of surplus revenue carried over. In order to
comply with State law, the City Council must approve the annual report
and budget as well as conduct a public hearing prior to levying the
annual assessment.
FISCAL IMPACT
There is no fiscal impact associated with this action.
We/#~
patricia C. Whitaker
Executive Director
Community Development Agency
PCW/WRM/mlr
H:\ACTIONS\2005 CC\DTSABID2005AnnRep&2006Bdgt - lO-17-05.doc
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DOWNTOWN SANTA ANA
BUSINESS IMPROVEMENT DISTRICT
2005 ANNUAL REPORT
OCTOBER 17,2005
PREPARED By:
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION
EXHIB IT 1
550-3
2005 ANNUAL REPORT
FOR THE
DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT
Background
The Downtown Santa Ana Business Improvement District (BID) 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 Community Redevelopment and Housing
Commission (CRHC) of the City of Santa Ana, as the BID Advisory Board, is responsible for the
preparation and administration of the BID's budget and annual report, its promotional and
marketing 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 over 700 retail, service and professional members (see Attachment A).
Assessment Formula
The formula for the 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 Improvements and Activities
The three representative Downtown associations (Downtown Santa Ana Business Council, La
Calle Cuatro De Santa Ana Association, and the Fiesta Market Place Promotions Committee)
hosted a variety of major community events and promotions during 2005, they included:
. Cinco De Mayo Celebration
. July 4th Celebration
· Fiesta Patrias Califomia/El Grito Celebration
. The Latino Film Festival
On October 6, 2003, the Santa Ana City Council appointed the CRHC as the Downtown Santa
Ana BID Advisory Committee. As the BID Advisory Committee, CRHC is responsible for
recommending an annual budget by early October 2005 and other policies pertaining to the BID.
Working through the Community Development staff, the three Downtown associations
developed the 2006 BID budget. One of the items discussed with the Downtown associations
was the BID Consultant. The 2005 BID budget allowed $15,000 for hiring a BID Consultant to
review and analyze the structure of the BID. After a formal request for proposal process and
interviews, representatives of the Downtown and City staff selected New City America, Inc. of
EXHIBIT 1
550-4
San Diego, California to perform a potential two-phase project. The initial work preformed by
New City America, Inc. will include the following tasks:
1. Meet with staff on the strengths and weaknesses of the existing BID and review the
ordinance, revenue generation and annual budget;
2. Meet with the various stakeholder groups and determine the level of support and popularity
of the existing district; and
3. Write a report on the findings of the existing BID and make recommendations for action.
This initial phase will review the feasibility of versus a "Property" based BID the existing
"Merchant" based BID structure.
2006 Budget Plan
Based on the feedback from the Associations, the 2006 BID budget focuses on three key areas:
(l) continued promotions and marketing of the BID; (2) maintenance services that equitably
cover all the streets in the BID area; and (3) implementation of the Capital Improvement Project
for streetscape improvements along 4th Street (Attachment C). The estimated contribution from
the 2006 BID budget for items 1 and 2 is $212,000 and item 3 would be $352,500.
EXHIBIT 1
550-5
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Attachment B
2006 ANNUAL ASSESSMENT FORMULA
The following businesses located within the boundaries of the Business Improvement District,
classified under City Ordinance NS 1690 as Amusement Services, Pawnbrokers, Service Station
and Classification A, including, but not limited to Retail Sale of Goods, Hotel 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 with the boundaries of the proposed Business Improvement District and a public
hearing held by the City of Santa Ana.
EXHIBIT 1
550-7
Attachment C - Page 1 of 2
F~EVISED 9-20-05
DOWNTOWN BUSINESS IMPROVEMENT DISTRICT
BUDGET
2006
Revenues
Bid Tax - City of Sana Ana
Operating Fund Carryover - 2003
Capital Improvement Funds
$160,000.001
$67,500.00
$0.00
Total Operating Revenue
$227,500.00
Expenses
Maintenance & Lighting Enhancement
Sidewalk SteamcIeaning Maintenance
Promotions
La Calle Quartro
Santa Ana Downtown Business Council
Decoration Install / Storage - Christmas
Conferences
Subscriptions
$30,000.002
$20,000.003
$162,000.00
$84,240
Total Operating Expenses
$77,760
$10,000.00
$5,000.00
$500.00
$227,500.00
TOTAL OPERATING FUND
$0.00
Capital Improvement Revenue
Capital Improvement - Carryover - 2005
Operating Fund Carryover 2005
Total Capital Improvement Revenue
$300,000.00
$52,500.00
$352,500.00
Capital Improvement Expenses
Capital Improvement - Phase II Streetscape Project
Capital Improvement - Special Projects
Total Capital Improvement Expenses
$300,000.004
$52,500.00
$352,500.00
TOTAL CAPITAL FUND
$0.00
Estimated 100% assessment amount. Amount subject to change.
Amount covers the cost for one additional full-time team member to the Ambassador Team
This team member will enhance the current crew as well as work on special cleaning projects in the BID area
3 2005 budgeted amount of $110,000 encumbered for the period 11-2005 through 10-2006
EXHlB IT 1
550-8
Attachment C, Page 2 of 2
which covers cleaning all streets in BID that are not cleaned by City Contract
$20,000 budged for 2006 covers the period of 11-2006 & 12-2006 and special c1eanings that may be needed.
4
Budgeted amount is BID's share of Downtown Streets cape Project Phase II that breaks down as follows:
$300,000 BID funds
$300.000 City funds
$600,000 Total Project Amount
EXHIBIT 1
550-9
(MJV, 10/11/05)
RESOLUTION NO. 2005-100
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA DECLARING ITS INTENTION TO LEVY
AN ASSESSMENT FOR THE DOWNTOWN SANTA ANA
BUSINESS IMPROVEMENT AREA FOR THE YEAR
2006
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:
A. By Ordinance No. NS-1715, adopted February 6, 1989, the City Council of
the City of Santa Ana established the Downtown Santa Ana Business
Improvement Area pursuant to sections 36500 et seq. of the California
Streets and Highways Code.
B. Since the adoption of said ordinance, the City Council has levied an
assessment in the following amounts for the improvements and activities of
the Downtown Santa Ana Business Improvement Area:
1 . For amusement services, pawnbrokers, service stations, retail sales
of goods, hotels, motels, theaters, food establishments: an
assessment in an amount equal to one and one-half (1.5) the annual
business license fee.
2. For commercial and residential rental property: an assessment in an
amount equal to one-fourth (0.25) the annual business license fee.
3. For all other businesses: an assessment in an amount equal to the
annual business fee.
Section 3. The City Council presently intends to continue said assessment in the
same amounts during the year 2006.
Section 4. The improvements and activities for which the assessment revenues
may be used in the Downtown Santa Ana Business Improvement Area pursuant to
Ordinance No. NS-1715 are as follows:
A. Decoration of any public place.
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B. Promotion of public events.
C. Furnishing of music in any public place.
D. The general promotion of business activities.
Section 5. The Downtown Santa Ana Business Improvement Area is located as
shown on Attachment A, attached hereto and incorporated herein.
Section 6. A report is on file with the Clerk of the Council to which reference may
be made for a full and detailed description of the improvements and activities to be
provided for the year 2006, the boundaries of the area, and the proposed assessments to
be levied upon the businesses within the area for the year 2006.
Section 7. A public hearing shall be held by the City Council at the City Council
Chambers, 22 Civic Center Plaza, Santa Ana, California at its regular meeting of
November 21,2005 at 6:00 p.m. or as soon thereafter as the matter may be heard, for the
purpose of determining whether to impose the above said assessment for the year 2006
for the improvements and activities described in the report.
Section 8. At the public hearing, written and oral protests may be made in
accordance with sections 36524 and 36525 of the California Streets and Highways
Code. The City Council shall hear and consider all protests. A protest may be made
orally or in writing by any interested person. Any protest pertaining to the regularity or
sufficiency of the proceedings shall be in writing and shall clearly set forth the
irregularity or defect to which the objection is made. Every written protest shall be filed
with the Clerk of the Council at or before the time fixed for the public hearing. Each
written protest shall contain a description of the business in which the person
subscribing the protest is interested sufficient to identify the business. If a person
subscribing is not shown on the official records of the city as the owner of the business,
the protest shall contain or be accompanied by written evidence that the person
subscribing is the owner of the business.
Section 9. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
550-11
ADOPTED this
day of
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Michael Vigliotta
Deputy City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Council members
,2005.
Miguel A. Pulido
Mayor
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2005-100 to be the original resolution adopted by the City
Council of the City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
550-12
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