HomeMy WebLinkAboutED BID 2019 Annual Assessment____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 12/17/2018
Disposition: Resolution No. 14618
Agenda Item No: 6.a
Meeting Date: December 17, 2018
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Economic Development
Prepared by: Simon Vuong
Economic Development Coordinator
City Manager Approval: ___________
TOPIC: Annual Assessment for the Downtown San Rafael Business Improvement District
(BID) for 2019
SUBJECT: Resolution of the San Rafael City Council Approving the Downtown San Rafael
Business Improvement District “BID 2018 Annual Report” and Levying an
Assessment for Calendar Year 2019
RECOMMENDATION:
Hold a public hearing and, if no majority protest has been received, adopt resolution.
BACKGROUND:
Section 36500 of the California Streets and Highways Code allows for the creation of a business
improvement district (BID) within a municipality whereby businesses within the district self-assess
themselves an annual fee in order to pay for improvements and activities which benefit the overall
business district. The intent of the state law is to provide a funding mechanism for business districts to
promote economic vitality.
Businesses within the San Rafael downtown set up a business district in 1979 – this original district
included approximately 125 businesses along Fourth Street between Lincoln and E Street. In 2013, the
City Council voted to replace it with a larger district of approximately 700 businesses along Fourth Street.
The expanded district includes the West End and some side streets, as well as non-ground floor tenants
and other tenants not included in the original BID.
For 2018, the BID Board of Directors has focused on marketing and communication with their
membership and the public via website updates, email blasts, and social media posts, hosting event
information and various BID initiatives. The BID Board has also been actively collaborating with
downtown stakeholders, including the Chamber of Commerce and the City, hosting member mixers,
laying the ground work for beautification efforts, and leading several special events, including May
Madness, Summer Sidewalk Sale, Trick-or-Treat, West End Village Celebration, Tivoli Lighting Project,
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
and Small Business Saturday/Shop Local. Additional information relating to these efforts is included in
the BID 2018 Annual Report (Attachment 2).
ANALYSIS
BID Renewal Process
Per State law, to renew the annual assessment, the City Council must first adopt a Resolution of Intention
to Levy an Annual Assessment and set a public hearing. In accordance with State law, the annual renewal
process for the BID assessment breaks down as followed:
Meeting #1 – December 3, 2018
Resolution of Intention to Levy an Annual Assessment: This meeting was intended to notify the public of
the public hearing process required to levy the assessment. The only action required at this meeting was
for the City Council to adopt Resolution No. 14606 (expressing the City Council’s intention to levy an
annual assessment) and to accept the BID annual report. The BID annual report, among other things,
reviews past BID Board accomplishments and proposes a work plan for 2019. These actions do not
commit the City Council to any ultimate decision other than initiating the annual renewal process.
Meeting #2 – December 17, 2018
Public Hearing on Annual Assessment: This is the meeting to receive additional input from the public on
the annual assessment for the BID and to confirm the levy of an assessment for the upcoming year. The
BID plans to continue producing signature events for 2019 and supporting other organizations’ downtown
events through marketing, and when possible, financial backing. Some of the scheduled events for next
year include many events from years past, such as May Madness, Summer Sidewalk Sale, Trick or Treat,
West End Village Celebration, Small Business Saturday/Shop Local, & Litquake. The BID is also
exploring the possibility of adding a new event, a Brew Crawl/Wine Tasting event to showcase our new
and established businesses.
Under Government Code sections 36525 and 36535, the City Council must hold a public hearing to
consider comments and any protests to the approval of the annual report and/or levy of the
assessment. If written protests are received from the owners of businesses in the proposed area which
will pay 50 percent or more of the assessments proposed to be levied, no further proceedings to levy
the proposed assessment, as contained in the resolution of intention, shall be taken for a period of one
year. If the majority protest is only against the furnishing of a specified type or types of improvement or
activity within the area, those types of improvements or activities shall be eliminated.
If there is no majority protest, then following the public hearing, the City Council may order changes in
any of the matters provided in the report. In this regard, staff notes that the map of the district included
as Exhibit A to the BID 2018 Annual Report is outdated and does not accurately show the boundaries
of the district as presently constituted. A corrected map is attached to this staff report as Attachment 3,
and staff is recommending that the Council approve the 2018 BID Annual Report modified to include
the corrected district map. The corrected map will be incorporated into the approved BID 2018 Annual
Report as Exhibit A, replacing the map that was submitted.
A resolution approving the BID 2018 Annual Report, as so modified, and confirming the levy of an
assessment for 2019, is provided as Attachment 1. The Council’s adoption of the resolution shall
constitute the levy of the assessment for 2019.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
COMMUNITY OUTREACH:
The BID has notified its members of the annual renewal process through its member communications
including the BID e-newsletter, notifications on the BID website, and through agenda items at the monthly
BID Board meeting.
FISCAL IMPACT:
Adoption of the resolution does not have a direct fiscal impact on the City other than ongoing staff time
related to assessment billing and processing, as well as administration of the annual renewal. To the
extent that the BID activities enhance the business climate within the district, this will generate increased
sales tax revenue for the City.
OPTIONS:
The City Council has the following options to consider on this matter:
1)Determine that less than a 50% protest has been filed and adopt the resolution as presented
approving the annual report and levying the assessment for 2019.
2)Determine less than 50% protest has been filed and adopt the resolution with modifications.
3)Determine that 50% or more protest has been filed and abandon assessment proceedings for a
minimum of one year from the date of the majority finding and decline adoption of the resolution.
4)Continue the public hearing and do not adopt the resolution. In this option, assessments will be
delayed until the New Year.
RECOMMENDED ACTION:
Hold Public Hearing, accept public comment, and if no majority protest has been received, adopt the
attached resolution approving the BID 2018 Annual Report and levying an annual assessment for 2019.
ATTACHMENTS:
1.Resolution
2.BID 2018 Annual Report, including:
A.Exhibit A: BID Map
B.Exhibit B: BID 2018 Assessment Formula
C.Exhibit C: BID Budget
D.Exhibit D: Memo – BID Financial Summary
3.Exhibit 1 to Resolution: Corrected BID Map
1
RESOLUTION NO. 14618
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING THE DOWNTOWN SAN RAFAEL
BUSINESS IMPROVEMENT DISTRICT “BID 2018 ANNUAL
REPORT,” AND LEVYING AN ASSESSMENT FOR CALENDAR
YEAR 2019
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, pursuant to SRMC Chapter 10.09 the BID’s Advisory Board
submitted to the City a “BID 2018 Annual Report”, which is on file with the City Clerk; on
December 3, 2018, the City Council by Resolution No. 14606 accepted the BID 2018
Annual Report, indicated the Council’s intention to levy assessments, and set a pub lic
hearing thereon for December 17, 2018; 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 December 17,
2018 to receive testimony and protests concerning the BID 2018 Annual Report and the
proposed levy of assessments for calendar year 2019 described therein; and
WHEREAS, a majority protest of the proposed assessments was not received;
and
WHEREAS, the Council has determined that the district map submitted as
Exhibit A to the BID 2018 Annual Report is incorrect and that the report should be
modified to replace that map with the revised map attached hereto as Exhibit 1, showing
the correct standard benefit zones and premium benef it zones pursuant to SRMC
section 10.09.040, “Boundaries of Districts and Benefit Zones”;
NOW, THEREFORE, BE IT RESOLVED that City Council hereby approves and
adopts the BID 2018 Annual Report, as modified to include the corrected district map in
Exhibit 1 and approves and confirms the levy of assessments as described that Report
for the 2019 calendar year.
2
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a mee ting of the
City Council of said City held on Monday, the 17th of December 2018, by the following
vote, to wit:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
COUNCILMEMBERS: None
COUNCILMEMBERS: None
______________________________
LINDSAY LARA, City Clerk
President’s Message
Dear Fellow BID Members,
.
The BID board is happy to share this overview of our
2018 efforts and accomplishments. Our cohesive,
enthusiastic group of board members look forward to
continuing to promote our downtown as a destination for
shopping, entertainment and business.
.
We have big plans for next year and invite you to be a
part of it, either by applying for an open board position or
volunteering for a committee. Your energy and ideas can
make a big difference in our downtown community!
Jaime Ortiz, President
November 1, 2018
.
BID Board of Directors
2018 - 2019
President - Jaime Ortiz
Bank of Marin
Vice President - Joanne Vosmek
Copperfield’s Books
Secretary - Bonnie Ayers Namkung
Marketing & Communications
Treasurer - Jed Greene
Five Corners Group
Directors -
Jeff Brusati, T & B Sports
Adam Dawson, Mike’s Bikes
Erika Bowker, Pleasures of the Heart
Dezzy St. Andre, Rumor Has It
Your Name Here!
BID 2018
Annual Report
2019 BID Work Plan
Marketing, Promotion and Events
Continue to build visibility and enthusiasm for
downtown and BID member businesses through social
media/online marketing, including:
§ Collaboration and cross promotion with downtown arts
organizations, especially through the newly formed Downtown
San Rafael Arts District.
§ Producing signature events
§ Supporting events produced by BID members and
outside producers through sponsorships, promotion and
marketing
§ Updates to Facebook, boosting event promotions and
sharing member news
§ Downtown branding through use of new logo and BID
website updates
§ Populate website with current information
Planned Events for 2019
Our goal for next year is to produce or assist with
signature events and support other organizations’
downtown events through marketing and financial
backing, within our budget, Including:
May Madness, Summer Sidewalk Sale,
Downtown Trick or Treat, West End Village
Celebration, Small Business Saturday/Shop
Local, & Litquake.
We are also exploring the creation of a
Brew Crawl/Wine Tasting event to showcase our
new and established businesses.
Mission
The Business
Improvement District
promotes the
common interests of
downtown business
owners. We help
maintain and
develop a downtown
that is a welcoming
place to shop, dine,
work and live.
Vision
Downtown is the
cultural heart and soul
of our city, where
activity, dining
entertainment, and
commerce come
together with a
creative and
entrepreneurial spirit.
Downtown is where
hometown pride and
community thrive.
Economic Development, Beautification & Safety
Our efforts will support the economic vitality of downtown by advocating on issues,
ordinances and policies that affect downtown businesses and promote a clean,
welcoming environment. Among our areas of focus:
§Safety/hospitality - Continue to advocate on issues of crime, code
enforcement and nuisance behavior that negatively impact business in
downtown.
§Beautification/Experience on the street - Meet with the City to address
issues affecting patrons, business owners and employees. Ensure BID member
interests are represented in any policy recommendations generated by the
beautification study (in progress.) Lights, landscaping, sidewalk cleaning, etc.
§Business retention/recruitment - Support City’s retail recruitment strategy
through promotion of downtown and act as a resource for prospective tenants.
§Streetscape - Support the Downtown Streets Team and explore opportunities
to expand their role, through expanded services such as enhanced sidewalk
cleaning, graffiti removal and ambassador roles.
§Promote activity/vibrancy - Support implementation of the City’s pilot lighting
and outside dining programs.
The BID Organization
Our 2019 agenda also focuses on ensuring the BID’s organizational foundation is strong,
fiscally responsible and able to promote downtown to members and the community.
§Legal compliance - review bylaws, hold annual election and member meeting.
§Communication with members – increase engagement through a welcome
kit for new businesses, routine communications through email newsletters,
distribution of timely info by door-to-door visits by block captains, and quarterly
mixers.
§Increase board members and volunteers - continue to recruit active
committee members and engage prospective board members.
§Raise BID funding - identify supplemental funding sources through business
sponsorship of events and more.
2018 Accomplishments
•Website updated to streamline content for ease of access, events are highlighted,
and information kept current and relevant for visitors.
•Collaborated with downtown stakeholders and community partners, with the San
Rafael Chamber of Commerce, attended City meetings and events.
•Held Quarterly Member Mixers with safety and parking updates from SRPD and
Parking Director and Director of Homeless Planning. Also Miriam Karell, Director of
the Small Business Development Center (SBDC) gave presentation.
•Worked with the City to increase Beautification initiatives: West End pilot lighting
project, sidewalk cleaning frequency, trash pickup (DTST), streetscape appeal, and
safety.
•Attended the SR Downtown Arts District meetings to help establish identity and
incorporate culture and art installations to elevate downtown. Ongoing efforts to
incorporate district branding into downtown marketing, and to support and promote
related events and businesses. Support art in empty windows initiative.
•Created BID Member Toolkit with contact info for Parking and Safety issues.
•Facebook updates and boosts have 3,000+ followers.
•Marketing for members through print and online media sources, including the
website, Facebook page, the Marin IJ, Pacific Sun and Marinscope newspapers.
•A targeted digital ad campaign of media impressions, Facebook boosts, and local
merchants adding the poster to their websites and blasting it on their newsletters
and to their email lists brought awareness of events to shoppers/participants.
2018 EVENTS:
•The 30th annual May Madness, our legacy classic car parade event partnered
with the Elks Club for an after party/dance featuring Pride and Joy. Thousands of
visitors to our Downtown enjoyed the 200+ vintage and sports cars.
•The Summer Sidewalk Sale on 8-18-18 was greatly successful with 65+
participating businesses and hundreds of shoppers strolling our shops,
discovering treasures and bargains and ringing the registers.
•October 27 marked the annual BID-produced Trick of Treat on Fourth Street
event with the Latinx theme Dia de los Muertos. It included performances by the
San Francisco Boys Chorus, Happy Feet Dancers “Thriller”, an information booth
hosted by Foster Our Future, and a pet parade and costume contest by
Woodland’s Pet Food & Treats.
•West End Village Celebration on Nov. 4, 11-7pm. Family fun and music all day.
Mayor Phillips will kick-off the new Tivoli pilot lighting at dusk!
•Small Business Saturday/Shop Local, Nov. 24, event and ad campaign will
highlight the many reasons to shop our Downtown.
Downtown San Rafael
Business Improvement District Exhibit A
0 500
Exhibit B
2018 BID Assessment Formula
2018 Annual Assessment
San Rafael Downtown BID Budget Exhibit C
2017 Year End Fund Balance $66,006 2018 Year End Fund Balance $52,910
Revenues 2018 Programs
Year 2018
Estimated Year End 2018 Programs
Year 2019
Proposed Budget
BID Assessments $79,212 BID Assessments $80,000
Event Income ‐ May Madness $31,332 Event Income $45,000
Interest $3 Target Grant $10,000
Total Operating Income $110,547 $135,000
Expenses
Events May Madness ($7,219)May Madness ($8,000)
Trick or Treat ($1,756)Trick or Treat ($600)
Sidewalk Sales ($900)Wine/Brewery Event ($10,000)
West End Celebration ($5,000)Shop Local Saturday ($1,000)
Mixers ($250)Restaurant Week ($1,000)
Event Staffing ($27,000)Second Fridays ($2,000)
West End Celebration ($2,500)
Sidewalk Sales ($2,500)
Mixers ($500)
LitQuake ($2,000)
Event Staffing ($30,000)
Events subtotal ($42,125) ($60,100)
Initiatives Beautification ($10,000)Beautification ($10,000)
Art District ($2,500)
Shop Local Campaign ($1,000)
Targe Grant Expense ($10,000)
Initiatives subtotal ($10,000) ($23,500)
Marketing & Promotions Event Advertising/Marketing ($18,000)Event Advertising/Marketing ($22,000)
Website Maintenance ($300)Website Maintenance ($2,000)
Social Media ($5,259)BID Member Communication ($500)
Social Media ($5,000)
Marketing & Promotions Subtotal ($23,559) ($29,500)
Operating Expenses Staffing ($36,000)Staffing ($17,000)
meeting/travel exp ($468)Insurance ($5,000)
Insurance ($5,097)tele/supplies/office ($2,200)
tele/supplies/office ($2,086)profess/accounting/banking ($1,500)
profess/accounting/banking ($2,000)meeting/travel exp ($1,000)
office rent ($1,200)
other ($1,108)
Operating Expenses Subtotal ($47,959) ($26,700)
Total Expenses ($123,643) ($139,800)
Net Profit/(Loss) ($13,096) ($4,800)
Projected 2018 Ending Fund Balance/Carryover to 2019 $52,910 2019 Ending Fund Balance $48,110
*Target grant revenues along with matching expenses are contingent upon being awarded a $10,000 Target grant.
Memorandum
To: San Rafael City Council
From: Jed Greene, Treasurer
San Rafael Business Improvement District
Date: November 1, 2018
Re: BID Financial Summary
This memorandum highlights the significant 2018 financial activity of the San Rafael Business
Improvement District (BID) and the 2019 proposed budget.
2018
For 2018, the BID is projected to have a net loss of approximately $13,000, leaving a cash balance of
$52,910. 2017 was a period of transition, leaving the BID with excess cash. 2018 was much more active,
where the BID used its excess cash for events and beautification projects.
Proceeds from BID assessments were down approximately 10% from years past, contributing to the net
loss. We are currently working with the City to investigate the cause of the decline. We also incurred
unplanned expenses related to the transition from the previous consultant to the new Executive
Director, which increased our administrative costs and contributed to our net loss.
The 2018 May Madness event was one of the most successful events for the BID. Absent the allocation
of the Executive Director fees, the event generated over $10,000 in profit. Those funds were used to
help create the street lights pilot project on the West End of downtown San Rafael.
2019
The BID projects to have a cash balance of approximately $53,000 to begin 2019. With this cash
balance, proceeds from the BID assessments and event revenues, the BID plans to have a busy year with
more events and continued downtown beautification. As a result, the BID projects to have a net loss of
$4,800, leaving us with a cash balance of $48,110 at the end of the year.
We have projected lower proceeds from BID assessments, similar to last year. Hopefully, last year was
an anomaly and this year’s assessments will be closer to historic levels. A vast majority of our expenses
are related to an active events calendar.
Exhibit D
4th
5th
MarinFre
montR
eservoir
2nd
3rd NyePacheco
Clo
r
i
n
d
a
Paloma
1stEspalda
C
oleman
PlumTree
Mission
Forbe
s
LincolnProspect
RossWest DGCHBClarkPineEyeR o b e rtD o llarScenicMiramar
IrwinTamalpaisBerylShaverCijosBayview
C
e
n
t
e
r
Jessup
LootensCullodenParkWelchElford
TaylorLiveOakJ FranciscoA
Treanor CourtRitter
Tw inOaks
EastHwy101N
W
P
R
RElCerritoClayto
n Br
ynMawrViaSessi
E lC amino
LosRoblesWilkinsCottageMaple
EViox
WillowHartHayesJones
Gloria SMARTTrainLatham
HethertonLindaroHarcourt
Foster
CalaVistaCom m ercialFLaurel
WoodsGardenWalter
Lunny
BrooksJulia
UpperFr
emontTrost Tam paIdaRossStreetScenicFrances
B onnie
Bra
eStewartQuarry
And
e
r
s
e
n
Curtis
Stevens...Fairhi llsLa Vi staHillcrestKnollGracelandTreehavenAlbert Park
M
ir
a
fl
ore
sRobertDollarFireDocument Path: X:\Finance\BID\BID_Edits_20180802.mxd ZBaron Date: 8/14/2018San Rafael Business Improvement District (BID)PREMIUM BID
STANDARD BID14 August 2018
Exhibit A
Legal No.
Marin Independent Journal
4000 Civic Center Drive, Suite 301
San Rafael, CA 94903
415-382-7335
legals@marinij.com
I am a citizen of the United States and a resident of the
County aforesaid: I am over the age of eighteen years ,
and not a party to or interested in the above matter. I am
the principal clerk of the printer of the MARIN
INDEPENDENT JOURNAL, a newspaper of general
circulation, printed and published daily in the County of
Marin, and which newspaper has been adjudged a
newspaper of general circulation by the Superior Court of
the County of Marin, State of California, under date of
FEBRUARY 7, 1955, CASE NUMBER 25566; that the
notice, of which the annexed is a printed copy (set in type
not smaller than nonpareil), has been published in each
regular and entire issue of said newspaper and not in
any supplement thereof on the following dates, to-wit:
12/07/2018
I certify (or declare) under the penalty of perjury that the
foregoing is true and correct.
Dated this 7th day of December, 2018.
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Marin
Signature
PROOF OF PUBLICATION
0006264962
2070419
CITY OF SAN RAFAEL
CITY OF SAN RAFAEL
CITY CLERK, ROOM 209
1400 FIFTH AVENUE, SAN RAFAEL, CA 94901
SAN RAFAEL, CA 94915-1560
r.BP7-11/10/16 1