HomeMy WebLinkAbout12A - DT SA BUS IMPROV DIS LEVY ASSESSMENTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
NOVEMBER 21, 2017
TITLE:
DOWNTOWN SANTA ANA BUSINESS
IMPROVEMENT DISTRICT – INTENT TO
LEVY ASSESSMENT FOR 2018
{STRATEGIC PLAN NO. 3, 4F}
V
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance onI�Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Approve the 2018 Assessment Report for the Downtown Santa Ana Business
Improvement District (BID), which is administered by two organizations—the Santa Ana
Business Council and Downtown Incorporated.
2. Adopt a resolution of intention to levy an annual business license tax assessment for the
2018 calendar year and establish a time and place for a public hearing to be held by the
City Council on December 19, 2017 to hear and consider all protests.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
At its meeting on October 25, 2017, by a vote of 5:0 (De Leon absent and Ramos abstained), the
Community Redevelopment and Housing Commission approved the following:
1. Recommend that City Council approve the 2018 Assessment Report for the Downtown
Santa Ana Business Improvement District (BID), which is administered by two
organizations, the Santa Ana Business Council and Downtown Incorporated.
2. Recommend that City Council direct the Interim Executive Director of the Community
Development Agency to file the 2018 Business Improvement District Assessment Report
with the Clerk of the Council for City Council approval or modification.
BACKGROUND
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
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Downtown Business Improvement
District Levy
November 21, 2017
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the area. The BID is funded through an additional charge on the business license tax for those
businesses within the BID boundary.
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 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.
DISCUSSION
The 2018 Assessment Report contains the basis and method of levying the assessment,
estimated activities and budgets from the two business associations—the Santa Ana Business
Council and Downtown Inc., and a map of the BID boundaries (Exhibit 1). The Assessment
Report presented for consideration and recommended for approval has been reviewed and was
determined to meet state law requirements. After approval of the report, the next course of action
is to conduct a public hearing where downtown merchants can vote in favor or against the BID
renewal. The Public Hearing is scheduled for December 19, 2017.
Terms
The City Council activated the current BID on July 1, 2013. To administer the activities of the BID,
the City executed operating agreements with Downtown Inc. and the Santa Ana Business
Council in an effort to address the needs of the two business associations. These agreements
contain provisions to ensure proper administration and distribution of funds such as the annual
budget, financial record keeping, fund distribution, board composition and meeting requirements.
The Agreements are renewed automatically in one year renewal terms, unless either party gives
at least two months notice of termination, or if the BID is not approved in any given year.
Each organization receives approximately $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. If the BID is successfully renewed, each organization will receive an additional allocation of
approximately $100,000 in 2018. In FY2016-17, the BID, through the efforts of Downtown Inc.
and the Santa Ana Business Council, accomplished several successful events and promotions
that drew thousands of visitors to Downtown Santa Ana. These events included: First Saturday
Artwalk, Savor Santa Ana, Santa Ana Media Summit, Rooftop Cinema (monthly), Santa Ana
Sidewalk Sales (monthly), and the Downtown Santa Ana newsletter. Both organizations also
maintain social media accounts with over 50,000 active followers.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #3 (Economic Development), Objective 4
(Continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse,
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Downtown Business Improvement
District Levy
November 21, 2017
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shopping, dining, and entertainment destination), Strategy F (Partner with downtown business
and merchant associations to program events that showcase restaurants, shopping and
entertainment venues).
FISCAL IMPACT
There is no direct fiscal impact associated with this action. The City collects the BID revenue from
businesses within the BID boundary and distributes funding to each organization, in accordance
with approved operating agreements. Revenues will be deposited equally in the BID Trust and
Agency Fund for Downtown Inc. and Santa Ana Business Council in account (nos. 09301001-
24036 and 09301001-24043) respectively, and distributions to each organization will be made
from the same accounts.
Robert M. Zur S h de
Interim Executive erector
Community Development Agency
Exhibits: 1. 2018 Assessment Report
2. Resolution
APPROVED AS TO FUNDS AND ACCOUNTS:
�rNth mr" �) dJ�* -
Francisco Gutierrez pp
Executive Director
Finance and Management Services Agency
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EXHIBIT 1
DOWNTOWN SANTA ANA BUSINESS IMPROVEMENT DISTRICT
2018 ASSESSMENT REPORT
Background
On February 6, 1984, the City Council adopted Ordinance No. NS -1715 pursuant to Section
36500, et seq., 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 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 BID was established as a means of providing the Downtown business community with
the funding to promote the Downtown through events and advertising pieces; funding to
increase security and enhance the overall aesthetics of the area; and also to maintain the
downtown shopping corridors.
Improvement Area Boundaries
The geographic boundaries of the district remain unchanged from the original 1984 area,
and they include over 600 retail, service, and professional members (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 volumes of the business (Attachment B).
2018 Budaet Plan
Based on the feedback from the two associations, Downtown Inc. and the Santa Ana
Business Council, the 2018 BID Budget focuses on the continuation of promotions and
marketing of the BID. Some of the promotion and marketing will be focused on Downtown
events and advertising pieces, which are all designed to enhance the overall aesthetics of
the area and also to maintain the downtown shopping corridors. Detailed breakdowns of the
two groups' budgets are attached (Attachment C). The assessments from the 2018 BID are
estimated at $200,000 to be split evenly by Downtown Inc. and the Santa Ana Business
Council—the two business groups that have spearheaded this BID process. Any remaining
funds from the previous year will be incorporated into a reserve fund for the groups' 2018
budgets. This reserve funding may be used for additional events and promotions throughout
the year.
In 2018, the two representative business associations are proposing to host and/or sponsor
a variety of community events and promotions, including:
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Art Walk (12x)
Patchwork
Savor Santa Ana
Weekly live music on Calle Cuatro
Weekend matinees
Sidewalk Sales
Flashmob Contests
Other programming for the associations will include ongoing social media marketing,
funding for the Downtown Restaurant Association, holiday promotions, website
development and maintenance, and ongoing support for small businesses.
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ATTACHMENT A
BUSINESS IMPROVEMENT DISTRICT BOUNDARY
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ATTACHMENT B
2018 ANNUAL ASSESSMENT FORMULA
The following businesses located within the boundaries of the Business Improvement
District (BID), 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 within the boundaries of the proposed Business Improvement District and a
public hearing held by the City of Santa Ana.
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ATTACHMENT C
DOWNTOWN BUSINESS IMPROVEMENT DISTRICT
PROPOSED BUDGETS SUMMARY
2018
OPERATING FUND
REVENUE
2018 BID Assessments — Projected $200,000
Prior Year Carry Forward (Estimated) 0
TOTAL REVENUE $200,000
Downtown Inc. (DTII
Tax Revenue
Assessment $100,000
Tax Expenses
Personnel Cost $42,500
-- Director, Administrative Support
Contractors/Professional Services $15,000
-- Event Producers, Program Coordinators, Production Staff
Meetings/Stakeholders Groups/Trainings $7,500
--Restaurant Assoc., Arts Meetings, staff and Stakeholders Development
Marketing/Promotions/Events $15,000
--Maps, Guides, Savor Santa Ana, Artwork
Communication $12,500
--Newsletter, Social Media, Translation, Design, Videos, Photos
Office/Operation/Technology $7,500
--Office Supplies, Web Hosting, Subscription Technology/Software
DTI TOTAL EXPENDITURES (2018) $100,000
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Santa Ana Business Council (SABC)
Tax Revenue
Assessment
Tax Expenses
Administration/Personnel Cost
Education, PR & Communication Consulting, Insurance, Accounting
Contractors/Professional Services/Sponsorships
-- General Labor, Sub -Contract Services
Meetings/Stakeholders Groups/Trainings
--Media Summit, Downtown Open Forum, Bi -Weekly Meetings, Other
Marketing/Promotions/Events
--Music, Entertainment, Contract Services, Contests, Collaborative Events
Communication
$100,000
$37,000
$21,454
$8,500
$10,500
$18,200
--Newsletter, Social Media, Translation, Design, Videos, Photos, Postcards, Flyers, T -Shirts
Office/Operation/Technology $4,346
Office Supplies, Web Hosting, Subscription Technology/Software
SABC TOTAL EXPENDITURES (2018) $100,000
TOTAL BID EXPENDITURES $200,000
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Exhibit 2 ROH —11/21/17
RESOLUTION NO. 2017-
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 DISTRICT FOR THE YEAR
2018
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, 1984, 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; and
B. As provided in Ordinance No. NS -1715, the City Council is authorized to levy an
assessment in the following amounts for the improvements and activities of the Downtown
Santa Ana Business Improvement Area:
(a) 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.
(b) For commercial and residential rental property: an assessment in an
amount equal to one-fourth (0.25) the annual business license fee.
(c) For all other businesses: an assessment in an amount equal to the
annual business fee.
Section 2. The improvements and activities for which the assessment revenues
may be used in the Downtown Santa Ana Business Improvement District pursuant to
Ordinance No. NS -1715 are as follows:
(a) Decoration of any public place.
(b) Promotion of public events.
Resolution No. 2017 -XXX
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(c) Furnishing of music in any public place.
(d) The general promotion of business activities.
Section 3. The Downtown Santa Ana Business Improvement District is located as
shown on Attachment A, attached hereto and incorporated herein.
Section 4. An assessment 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 2018, the boundaries of the area, and the proposed
assessments to be levied upon the businesses within the area for the year 2018.
Section 5. 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
December 19, 2017, at 5:45 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
2018 for the improvements and activities described in the report.
Section 6. 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.
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 and, 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. A written protest which does not comply with this
section shall not be counted in determining a majority protest.
Section 7. 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.
Resolution No. 2017 -XXX
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ADOPTED this day of , 2017.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia.RqCarvAlho, City Attorney
Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2017 -XXX 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
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Resolution No. 2017 -XXX
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