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HomeMy WebLinkAboutCC Resolution 14235 (BID Annual Assessment)RESOLUTION NO. 14235 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING, WITH MODIFICATIONS, THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT "ANNUAL REPORT FOR 2017 CALENDAR YEAR BID ASSESSMENT," AND LEVYING AN ASSESSMENT FOR CALENDAR YEAR 2017 WHEREAS, California Streets and Highways Code Sections 36500 et seq, authorize cities to establish parking and business improvement districts for the purpose of promoting economic revitalization and physical maintenance of business areas, in order to create jobs, attract new business and prevent erosion of the new business district; and WHEREAS, the Downtown San Rafael Business Improvement District ("BID") was established in 2013 by Ordinance No. 1912, now codified in San Rafael Municipal Code ("SRMC") Chapter 10.09; and WHEREAS, for calendar year 2016, the City Council appointed the Board of Directors of the nonprofit BID corporation to serve as the Advisory Board for the BID; and WHEREAS, pursuant to SRMC Chapter 10.09 the Advisory Board submitted to the City an "Annual Report for 2017 Calendar Year BID Assessment" (hereafter, the "2017 Annual Report"), which is on file with the City Clerk; on November 7, 2016, the City Council adopted Resolution No. 14229 approving the 2017 Annual Report, indicating the Council's intention to levy assessments, and setting a public hearing thereon for November 21, 2016; and WHEREAS, pursuant to Streets and Highways Code Section 36535, following the public hearing, the City Council may adopt a resolution confirming the report as originally filed or as modified by the Council, and the adoption of the resolution shall constitute the levy of an assessment for the year referred to in the report; and WHEREAS, the City Council held the required public hearing on November 21, 2016 to receive testimony and protests concerning the 2017 Annual Report and the proposed levy of assessments for calendar year 2017 described therein; and WHEREAS, a majority protest of the proposed assessments was not received; and WHEREAS, the City Council finds that it will be in the best interests of the Downtown San Rafael Business Improvement District for the Council to appoint a new Advisory Board to administer the District's funds in 2017; and WHEREAS, upon appointment of a new Advisory Board, should the 2017 Advisory Board remain a separate body from the BID Corporation Board as of November 30, 2016, then the current Advisory Board should wind up its affairs for calendar year 2016 and the remaining balance of funds should be transferred to the new Advisory Board. 1 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Rafael that the Annual Report, as filed, is hereby modified as follows: 1. Exhibit B thereof is hereby deleted. 2. A new Advisory Board shall be appointed consisting of nine (9) individual BID members or Volunteer BID members. The Council shall appoint five (5) initial Advisory Board members who shall meet as the Advisory Board to do the following; a. Nominate at least four (4) additional individuals to be considered by the City Council for appointment to the remaining seats on the Advisory Board. The Council would encourage that these additional four members be selected with a focus on increasing the diversity of the full Advisory Board in terms of gender, ethnicity, geographical location of businesses, or other appropriate characteristics; b. Develop a detailed budget and work plan for use of the 2017 BID assessments and other available funds, which plan shall identify specific events, promotion/marketing, district maintenance or beautification, and/or other activities of direct benefit to the BID members. The basic budget, to be used as a starting point, would be as follows: i. Beginning balance: ii. Additional income: aa) 2017 assessments: bb) Target grant: iii. Expenses: aa) Events: bb) Business workshops, retention: cc) Marketing/promotions: dd) Operating expenses, administration iv. Ending balance: Approximately $50,000 Approximately $87,000 $ 5,000 Approximately $12,000 Approximately $ 5,000 Approximately $25,000 Approximately $50,000 Approximately $50,000 c. Develop a plan for administration of the budget and work plan. At the earliest feasible date, but not later than March 30, 2017, the Advisory Board shall present its recommendations to the City Council for review, and upon approval, the approved work plan, budget, and list of Advisory Board members shall become a new Exhibit B to the Annual Report and the Council shall confirm the Annual Report as so modified. 3. The following individuals are hereby appointed as the initial Advisory Board members: a. Jeff Brusati — (T&B Sports) (retail); b. Jaime Ortiz — (Bank of Marin) (bank); c. Matt Haulk - (Ragghianti Freitas LLP) (office); d. David Hayden — (Il Davide) (restaurant); and e. Melissa Prandi — (Prandi Property Management) (office) (Upon admission to the BID as a voluntary member). BE IT FURTHER RESOLVED that City Council hereby approves and adopts the 2017 Annual Report, as so modified, and approves and confirms the levy of assessments as described in the Annual Report, for the 2017 calendar year. BE IT FURTHER RESOLVED that, following adoption of this Resolution, should the 2017 Advisory Board remain a separate body from the BID Corporation Board as of November 30, 2016, then the 2016 BID Advisory Board shall forthwith wind up the BID affairs for 2016 and then deposit the remaining balance of BID funds in its possession with the City of San Rafael Finance Department to hold in trust for BID and transfer to the 2017 Advisory Board as soon as feasible. I, ESTHER BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a meeting of the City Council of said City held on Monday, the 21 st of November, 2016, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 3 Oe ESTHER BEIRNE, City Clerk RESOLUTION NO. 14229 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL DECLARING COUNCIL'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR THE DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT WHEREAS, the California Streets and Highways Code Section 36500 et seq. authorizes cities to establish parking and business improvement areas for the purpose of promoting economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses and prevent erosion of business districts; and WHEREAS, the Downtown San Rafael Business Improvement District was established in 2013 to amend the existing Parking and Business Improvements Area instituted in 1979 in the commercial area on and around the Fourth Street corridor in San Rafael; and WHEREAS, pursuant to San Rafael Municipal Code Chapter 10.09 and the California Streets and Highways Code Section 36533, the Advisory Board of the Business Improvement District shall prepare an annual report for each calendar year in which assessments are to be levied which the City Council shall review. NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as follows: Section 1. The City Council intends to levy an annual benefit assessment on businesses in the BID, except where funds are otherwise available, to pay for selected improvements and activities of the BID. Section 2. The boundaries of the entire area to be included in the BID, and the boundaries of each separate benefit zone within the BID, are set forth in the map and boundary description, Exhibit A, attached hereto and incorporated herein by reference. A map of the BID is on file with the City Clerk. Section 3. The types of improvements and activities proposed to be funded by the levy of assessments on business in the BID are in Exhibit B attached hereto and incorporated herein by reference. Section 4. The method and the basis for levying the benefit assessment on businesses within the BID are set forth in Exhibit C attached hereto and incorporated herein by reference. Section 5. All funds of the BID shall be expended on improvements and activities within the BID. Section 6. New businesses shall not be exempt from payment of the fee. Section 7. A public hearing to levy the BID assessment shall be held before the City Council on November 21, 2016, at 7 p.m. in the Council Chambers, 1400 Fifth Avenue, San Rafael, California. At the public hearing the testimony of all interested persons, for or against the levy of the BID assessment or of any of the matters included in the assessment, will be heard and all protest collected. Section 8. A protest against the assessment of the BID, or any aspect of the assessment may be made in writing or orally at the public hearing. To be counted as a part of a majority protest against the assessment of the BID, a protest must be in writing and from a business in the BID. A written protest may be withdrawn from record at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business, and its address. If the person signing the protest is not shown on the official records of the City of San Rafael as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. Any written protest of the regularity of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. Section 9. If at the conclusion of the public hearing on November 21, 2016 there are a record of written protests by businesses owners within the BID that will pay fifty percent (50%) or more of the total assessments of the entire BID, no further proceedings to amend the BID shall occur. New proceedings to amend the BID shall not be undertaken again for a period of at least one year from the date of the finding of the majority written protest by the City Council. If the majority written protest is against a specific activity, inclusion of a specific area or type of business, or a specific assessment amount, adjustments may be made to the amendment proposal. Section 10. Further information regarding the Downtown San Rafael Business Improvement District may be obtained from the Office of Economic Development at 1313 Fifth Avenue, San Rafael, CA 94901. Section 11. The City Clerk is directed to give notice of said public hearing by publishing the notice in a newspaper of general circulation in the City of San Rafael, at least seven days before the hearing; and by mailing a complete copy of this Resolution of Intention to those interested parties who have filed a written request with the local agency for mailed notice of public meetings or hearings on new or increased general taxes. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 7th day of November, 2016, by the following vote, to wit: AYES: Councilmembers: Bushey, Colin, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: Gamblin ,ZZs e-- . )LP-, jc--k ESTHER C. BEIRNE, City Clerk AT „CH[`vIENT Z) SanafaeG Downtown n Business knprovernent District Annual Report for 2017 Calendar Year BID Assessment Amended Downtown San Rafael Business Improvement District 0 500 1,000 2,000 Feet F 0 Premium 0 Standard M 07 0 San Rafael Downtown BID Budget Projected 2016 Ending Fund Balance/Carryover to 2017 $47,000 M Projected 2017 Ending Fund Balance EXHIBIT B $47,000 Year 2017 Proposed Budget $83,000 $83,000 $0 $0 $83,000 $83,000 $83,000 $47,000 12016 Beginning Fund Balance $47,000 Projected 2017 Beginning Fund Balance Year 2016 Year2016 Approved Estimate Year , Revenues 2016 Programs Budget End 2017 Programs BID Assessments $83,000 _i $87,000 BID Assessments Event Income $8,000 $1,000 Allocated from 2015 Carryover $20,000'` '' $3,000 Total Operating Income $111,000 $91,000 Expenses Events Events ($10,000) Litquake $4,300 Halloween Walk $600 West End Village Celebration $2,000 Events I` ($10,000),,,,;;; $6,900 Retail Recruitment Retail Recruitment Contract $10,000 Marketing & Promotions I Advertising/Marketing ($8,000) $6,500 Website ($2,000):', $500 DST Meter Sponsorship $6,000 BID Member Communication ($3,000),,,; $1,000 Marketing/Communic Coordinator ($30,000),,.,,; $21,000 Marketing & Promotions ($43,000);' I $35,000 Marketing/Promotions Operating Expenses Staffing ($44,000) $19,000 BID Services Contract with Chamber of Commerce* payroll taxes & admin ($5,000);; $2,100 *see separate work plan for details office rent $0 ' - $2,600 Insurance ($4,000) $3,400 tele/supplies/office ($2,500) $3,600 profess/accounting/banking ($1,500) $7,800 meeting/travel exp ($1,000) $600 Operating Expenses Subtotal ($58,000) $39,100 Operating Expenses Subtotal Total Expenses ($111,000) $91,000 Projected 2016 Ending Fund Balance/Carryover to 2017 $47,000 M Projected 2017 Ending Fund Balance EXHIBIT B $47,000 Year 2017 Proposed Budget $83,000 $83,000 $0 $0 $83,000 $83,000 $83,000 $47,000 BID 2017 Workplan Downtown San Rafael Business Improvement District 2016/2017 Workplan Activity Outcomes Timeline Partners Costs Potential Funders Challenges May Madness, 2nd Fridays, Objective 1 -Annual events (Compare with Utquake, Artists in action, Lively downtown Throughout the 16/17 FY Event Coordinator Approx. $30,000 BID N/A Objective 3) Wine Stroll, SR Rocks, Trick or Treat 75% reduction in Objective 2 - Meter S Sponsorship: Help Partnerin w Donation Meter panhandling and increase Expected results by the Downtown Streets $6,000 BID Figuring out new ways to reduce panhandling program. in economic vitality end of 2017. Team, City of San Rafael create program downtown. awareness. Develop new and profitable events, or combine older events to cut costs on Monthly event with art, Marin Open Studios, Presenting the idea to Objective 3 - Special event (Combine individual promotion. (i.e. music and wine. Costs Artworks Downtown, $17,000, with San Rafael Fire stakeholders and entities annual events -monthly) Artists rAction+ Wine Stroll + reduced with less By beginning of 2017. Street -level Merchants, overlap into Foundation, Mechanics passionate about keeping 2nd Fridays =Monthly Art & individual marketing. Chamber of Commerce marketing Bank, BID the current system as is. Wine Festival) and charge Revenue from ticket sales. venders. Also -submit grants (i.e. Target, etc) Develop monthly professional Help businesses thrive, workshops with local bring more business Encouraging businesses to Objective 4 -Professional Workshops businesses hosting them. BID downtown, create greater First workshop before end Downtown Businesses; $5,000 N/A participate and/or host at business members can share sense of community & of 2016. Chamber of Commerce their location. best practices as well as Main network. Street USA Actively promote events, restaurants, and businesses. More coordination of Objective 5 - Promotion Efforts Develop a downtown map encouraging patrons to enjoy bringing the public out on All year. Street -level businesses $25,000 BID & any other ' N/A downtown. Newspaper ads in I specific days or driving in the BID. sponsors. 1 and Chronicle, a la Town Patrons to businesses. Center in Corte Madera Exhibit B EXHIBIT B The BID Proposes the 2017 Downtown San Rafael Business Improvement District Advisory Committee will Consist of the Current 2016 Downtown San Rafael BID Board of Directors: Terri Abelar — President (Aging Solutions) Phil Green - Secretary (Ragghianti Freitas Law Offices) Jonathan Frieman —Treasurer (Jomijo Foundation) Craig Blum — (Johnny Doughnuts) Logan McDonald — (Downtown Streets Team) Ann Brewer (Brewer Phillips Hair Design) Rick Lewis — (Gold Rush Jewelers) 2017 BID Assessment Formula Type of Business Retail on the Ground Floor, Restaurant, Personal Services on the Ground Floor Retail on the Ground Floor, Restaurant, Personal Services on Ground Floor with Less than $100,000 in Gross Receipts Offices, Professional, Personal Services, not on Ground Floor, Retail not on Ground Floor Personal Services Sole Practitioner Non -Profit Organization and Fine Artists Financial Institution Exhibit C 2017 Annual Assessment Standard Premium $175 $225 $150 $175 $75 $100 $25 $50 $50 $50 $375 $425 Attachment 3 Proposed 2017 Downtown San Rafael Business Improvement District Advisory Board recommended appointees: Jeff Brusati — (T&B Sports) (retail) Jaime Ortiz — (Bank of Marin) (bank) Matt Haulk - (Ragghianti Freitas LLP) (office) David Haydon — (II Davide) (restaurant) Melissa Prandi — (Prandi Property Management) (office) (voluntary member) REVISED - San Rafael Downtown BID Budget 2016 Beginning Fund Balance Revenues 2016 Programs BID Assessments Event Income sponsorship Allocated from 2015 Carryover Total Operating Income Expenses Events Events Litquake Halloween Walk West End Village Celebration Events Retail Recruitment �etail Recruitment Contract Marketing & Promotions Advertising/Marketing Website Marketing/Communic Coordinator Marketing & Promotions I Streetscape/street sweeping DST Meter Sponsorship Operating Expenses Staffing payroll taxes & admin office rent Insurance tele/supplies/office profess/accounting/banking Meetings/travel exp BID Member Communication Operating Expenses Subtotal Total Expenses Projected 2016 Ending Fund Balance/Carryover to 2017 Year2016 Approved Budget $83,000 $8,000 $20,000 4 $111,000 $47,000 Year 2016 Estimate Year End $87,000 $0 $1,000 $1,900 ($10,000), ($8,000) ($2,000) ($30,000) ($40,000), $89, ($4,300) ($1,000) ($2,000) ($7,300 Projected 2017 Beginning Fund Balance 2017 Programs BID Assessments Target Grant* *Subject to award of Target Grant EVENTS (grant funding only) Italian Street Painting West End Festival Litquake Halloween Parade of Lights Made in Marin* *Subject to Award of Target Grant Events ($10,000) W Business Workshops/Retention ($6,500) ($1,000) ($23,000) Advertising/Marketing Website/Facebook/social media ($30,500)0 Marketing/Promotions ($6,000) ($44,000) ($17,000) ($5,000) ($2,400) $0 ($2,000) ($4,000) ($3,400) ($2,500) ($2,500) ($1,500) ($7,800) ($1,000) ($1,000) ($3,000) ($61,000), ($36,100) ($111,000) ($89,900) staffing payroll taxes & admin Office rent Insurance Tel/Suplies Accounting/banking fees Meeting/travel BID Member Communications Operating Expenses Subtotal Total expenses ATTACHMENT 4 $47,000 W Projected 2017 Ending Fund Balance (reserves) $47,000 Year2017 Proposed Budget $87,000 $5,000 $92,000 (2,000) (2,000) (2,000) (1,000) (2,000) (5,000) (14,000) (3,600) (10,000) (2,000) (12,000) ($6,000) ($41,500) ($4,500) ($2,500) ($4,000) ($2,500) ($1,500) ($1,000) ($1,000) ($58,500) ($94,100) $44,900