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Home My WebLink AboutED Downtown BID AssessmentCITY OF� Agenda Item No: 8 Meeting Date: June 1, 2009 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Nancy Mac le (KK) City Manager Approval: -n SUBJECT: Resolution of the City Council of the City of San Rafael approving the 2009-10 Annual Report of the Downtown Parking and Business Improvement District and declaring Council's intention to levy an annual assessment for the Downtown Parking and Business Improvement District for fiscal year 2009-10 and directing the City Clerk to schedule a public hearing for June 15, 2009 to consider levying the assessment. RECOMMENDATION: Staff recommends that the City Council adopt the resolution. BACKGROUND: Council appointed the Downtown Business Improvement District Board (BID) as the advisory board for the Downtown Parking and Improvement District, which was formed in 1982. Since the District's formation, the City has collected fees as part of the business license issuance and annual renewal process. State implementing law for business based BIDs requires Council to renew the assessment annually with a specific procedure. ANALYSIS: An Annual Report is one of the steps to levy the annual assessment, and the report submitted by the BID addresses all the State mandated items. A copy of the Report is attached as Exhibit A. Specifically, the District name and boundaries are shown and no boundary change is proposed. As proposed in the Report, the assessment will be used for events, administration, marketing promotions and the BID website. Sponsorships, revenue from the BID parking lot and a contribution from the Redevelopment Agency are the other sources of the BID's revenue. The proposed assessment is one half of the City's business license fee, and the method of calculating the license fee is explained in detail. In order to levy the assessment, Council must approve the Annual Report, declare its intent to levy an annual assessment for the fiscal year of 2009-10, and set a public hearing to discuss the assessment for June 15, 2009. Notice of the hearing will be published in the newspaper at least 7 days prior to the hearing. At the public hearing, Council shall review any protests to the assessment. If written protests are given by business owners that would pay 50% or more of the proposed assessment, no further action can be take to levy an assessment for a period of one year. Council may order changes in any of the matters in the Annual Report, including changes in the proposed assessments, the proposed improvement and activities to be funded, and the proposed boundaries of the District. At the conclusion of the hearing, Council may adopt a resolution confirming the Annual Report as filed or as directed by Council during the hearing. The adoption of the resolution shall constitute the levy of the assessment for the year. FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paee: 2 FISCAL IMPACT: There is no direct fiscal impact to the City as there is no direct City contribution. However, the purpose of the District is to improve the economic health and vitality of the Downtown, add to the image of the City and thereby contribute to the sales tax revenues generated by Downtown. OPTIONS: • Determine that the Annual Report does not meet the requirements of the State enabling act and direct that the BID Board change the document. • Select another date for the public hearing. ACTION REQUIRED: Adopt resolution approving the 2009-10Annual Report of the Downtown Parking and Business hnprovement District and declaring Council's intention to levy an annual assessment for the Downtown Parking and Business Improvement District for fiscal year 2009-10 and directing the City Clerk to schedule a public hearing for June 15, 2009 to consider levying the assessment. Encls. Resolution Downtown Parking and Business Improvement District 2009-10 Annual Report Downtown Parking and Business Improvement District 2009-10 Annual Report Annual Report Summary This Annual Report of the Downtown Improvement District (BID) for the Downtown Parking and Improvement District complies with the requirements listed in Section 36533 of the Streets and Highways Code. In summary, they are: 1. No changes are proposed for the boundaries of the Parking and Business Improvement District or in any benefit zones within the area. A map of the District boundaries is attached. 2. The improvements and activities to be provided are listed in the attached Budget 7-1-09 / 6-30-10. In general they are events, marketing and promotions, and administration. 3. An estimate of the cost of providing the improvements and activities is shown in the attached Budget 7-1-09 / 6-30-10. The total estimated to be spent is $71,000. 4. The method and basis for levying the assessment is explained in the attached Method and Basis for Levying the Assessment. In general, it is one half of the business license fee. 5. The contributions to be made from sources other than assessments is $53,000 and is provided by a contribution from the San Rafael Redevelopment Agency, event income, sponsorships and revenue from the Lindaro parking lot. 6. There is a surplus of $103,595.57 carried over from previous years shown in the attached Estimated Balance Sheet as of 5/31/09. Method and Basis for Levying the Assessment The method and basis for levying the assessment are stated in San Rafael City Municipal Code Section 10.08.070, A system of assessments for charges imposed, and include the following: Membership: All business entities within the District boundaries other than financial institutions, service businesses, and professionals. Voluntary Membership: Financial institutions, service businesses, professionals and property owners within and outside the District may voluntarily become a member by the payment of an amount equal to 50% of their business license fee. Assessments: Each business entity within the District boundaries, other than financial institutions, service businesses, and professionals, shall pay an amount not to exceed fifty percent of the business license charge for each business as set forth in the current city business license fee schedule, as amended annually. Those businesses within the boundaries of the District who are exempt from the payment of a business license fee under state law shall not be assessed, nor shall an assessment be levied for apartments, boarding and rooming houses, mobile home parks, hospitals, convalescent homes, nursing homes, rest homes, or sanitariums, and ambulance services. City Business License Fee Schedule: The city business license fee schedule applicable to fiscal year 2009-10 is Schedule A as applied to contractors, all retail, wholesale and general service uses is: GROSS RECIEPTS TAX $0 - $25,000 $40.00 $25,001 - $50,000 $60.00 $50,001 - $100,000 $80.00 $100,001 - $200,000 $80.00 plus $0.70 per $1,000 over $100,000 $200,001 - $300,000 $150.00 plus $0.60 per $1,000 over $200,000 $300,001 - $500,000 $210.00 plus $0.50 per $1,000 over $300,000 $500,001 - $1,000,000 $310.00 plus $0.40 per $1,000 over $500,000 $1,000,001 - $2,000,000 $510.00 plus $0.30 per $1,000 over $1,000,000 $2,000,001 - or more $810.00 plus $0.20 per $1,000 over $2,000,000 05/26/2009 13:57 5/26/2009 4154559623 RTC Budget - 2010 7/1/2009 through 6/3012010 Using Budget 7-01-091630-2010 PAGE 02/02 Offloe Office Supplies Phone Postage Website Other Office TOTALOffioe Office -Salary 0.00 -1.100.00 1,100.00 0.00 Page 1 1,020.00 711/2000 -120.00 -'T26.66 0100 Category Description Actual 0.00 Budget Difference "X. -3.000.00 3,000,40 0.00 TOTAL Discretionary 33.000,00 01110 ................. 0.00 0.00 Watt 0.00 0.00 . . ...... ... Events - 811) Produced 0.00 Halloween 0100 -2,000.00 2,000.00 Holiday Window Display 0.00 -1,600.00 1,500.00 May Madness 0.00 -16,000.00 15,000.00 TOTAL Events - BID Produced 0100 .18,500.00 18.500.00 Undaro Parking Lot Expense 0.00 -61800,00 6,800.00 Marketing & Promotions Advertising Expense 0.00 •5,000.00 5,000.00 Marketing Project0,00 . ..... -4,700.00 4,700.00 TOTAL Marketing & Promotions .... '06.1.. .00 9.700.00 Offloe Office Supplies Phone Postage Website Other Office TOTALOffioe Office -Salary 0.00 -1.100.00 1,100.00 0.00 -1,020.00 1,020.00 0-.60 -120.00 -'T26.66 0100 .880,00 650.00 0.00 -110.00 110.00 0.66--, -3.000.00 3,000,40 0.00 -33,000,00 33.000,00 0.00 41,000.00 71,000.00 % BID Dues 0.00 16,000.00 -1-8.000.00 Event Income May Madness Other Event lncome:May Madness TOTAL May Madness TOTAL Event Income Undaro Parking Lot Redevelopment Contribution TbfAL kiii�ie_ .... -.1 . .... ... ....... OVERALL 0.00 15,000.00 .15,000.00 0.00 15,000.00 -16,000.00 0.00 15,000X0 -15.000.00 0,00 26,000.00 -25,000.00 . . ........ 0.00 13.000.00 -13,000.00 ...... . 6,06 jr '41,000.00 .. ... ... .... Watt 0.00 0.00 0.00 5/272909 Budget 7-1-08 YTD - Current Year 7/1/2008 through 6/302009 Using 7-1.08 to 6-30-09 Budget 7/12008 813012009 0000._...... Category Dascription Actual Budget Difference 0000. ..., •.� .. .. e. .-. .,, BID Dues 17,752 66 16,000.00 2,762.56 Event Income May Madness _ . ..... _... _... 0000.. .. ... _.�...._ 0000... ... ... .__._.... 0000 __.... ....-_ ... ........ .. Sponsorship (May Matlness)� 500 00 2,500.00 -2,000.00 Other Event Income_May Madness 11,473.00 ....__._.___.. 13,000.00 ...__.._ _1,527.00 ..__.. .. .-. - YOTAL May Madness ......_ 11,973.00 18,500.00 .3,527.00 Other Event Income 0.00 0.00 . �__ __ _ 0.00 __... 00___00. ..____...____.. ..___. TOTAL Event Income .._..___....._..... 11,873.00 15,500.00 -3,527-DO Lindaro Parking Lot 19,891.84 32,400.00 -12,608.36 Mise Income Misc Income 0.00 ._ 0.00 0.00 _ _Other 000__0.._. ........_... ........ . ..._._...... TOTAL Misc Income _ _ 0.00 0.00 0.00 Redevelopment Contribution 13,000,00 _ 13,000.00 _ 0,00 .. _ ._TN-CdM ..-0.000 .. 0000... TOTAL INCOME 62,81 7.20- Events - BID Produced Halloween 1,981.24 2,000.00 18.76 Holiday Window Display 0.00 -5555.. 1,500.00 1,500.00 _...'--._.... .a ass MayMadnss .. 57,769.68 16,500..00 -1,258,68 Other Events - 910 Produced161.95 0,00 .161.95 �-- TOTAL Events -BID Produced .. 19,902.77 20,000,00 .23 Events - BID Sponsor Events • New 0.00 4,000.00 4,000.00 Events - Returning 0.00 0.00 0-00 Other Events - BID Sponsor 226.00 0000 - 0_00 -- _ _22640 - -.__ ._..._....BID 0500 -- 00 00 ........__..._ TOTAL Events -BID Sponsor .. 226,00 4,000.00 3,776.00 Lindaro Parking Lot Expense 730.96 5,500.00 4,769.05 Marketing & Promotions Advertising Expense 7,374.00 _ _. ... 3,000.00 0_0_00_.. ---- 11,374.00 ..._.._.... --- 0_--__000 ......_.__...... Marketing Project ...._.._.... 1,500.00 7,000.00 5,500.00 Other Marketing & Promotions 0.00 0000 _.. 0000.. ._.. 0.00 0000 ........... 0.00 ......_... .._ ._.......... 0000. 0000 ... ..--._ . ......... TOTAL Marketing & Promotions . 8,874.00 10,000.00 1, Misc Expense 0.00 0.00 0.00 Office Office Supplies 1,409.93 00_0_0_ 1,000.00 ..-'5_005 .409.93 .__-........_ _ .. . ......... ... _._....._.......----- Phone 1,087.18 960.00 •127.18 postage 110.00 100.00 .70.00 Website - 276.99 650.00 373.01 Other Office_ 0.00 .__.._. 590.00 . .. ._. 0000. 690.00 ......... _00.00.. TOTAL Office _.. 2,944.10.. 3,400.00 455.90 Office -Salary 30,260,00 ..�..- 33,000.00 5500. 2,750.00 .�_... _ __ _ TOTAL EXPENSES 0000-- -. 62,9Z6.82 --' '----- 75,900.00 0000--- '5500. 12.973. 18 .. --309.6 OVERALL TOTAL---' �--�- -309.82 0.00 •309.62 Page 1 Z0/S0 3EJVd 01a EZ8699091b tO:ET 6002/LZ/50 5/27/2009 Balance Sheet - As of 6/31/2009 As of 6/31/2009 5/81/2009 AccountBalance Cash and Bank Accounts Checking 42.735,61 Money Market 60,780.47 Savings 0.00 Pay Casb„_.... ............. 79,49 . — ..... _.-'--_.. TOTAL Cash an_d Bank_Accou_nts 103,595.57 TOTAL ASSETS 103,595.57 Other Liabilities Payables 0.00 TOTAL Other Liabilitiea 0.00 _ .... -- 0.00 ... .._....... . _....._.__. OVERf.LL TOTAL .. 103,596.5751 Page 1 ZB/ZB 39vd Dia EZ869909L6 10:61 6002/LZ/50 0 9 IQ 1—j I Z LLtG IL 4� I L. jll� ------ 0 9 (0 a) 0 N CO a) >, E (DC: > 0 oto CO E 0 Z -0 0 .0 >1 -0 C: cc .0 M 0) LU to 0- I IQ 1—j I -T IL I L. jll� ------ ----- ------ ------ -4 ------- (0 a) 0 N CO a) >, E (DC: > 0 oto CO E 0 Z -0 0 .0 >1 -0 C: cc .0 M 0) LU to 0- I L 1—j I -T I L. jll� ------ ----- ------ ------ (0 a) 0 N CO a) >, E (DC: > 0 oto CO E 0 Z -0 0 .0 >1 -0 C: cc .0 M 0) LU to 0- I RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE 2009-10 ANNUAL REPORT OF THE DOWNTOWN PARKING AND BUSINESS IMPROVEMENT DISTRICT AND DECLARING COUNCIL'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR THE DOWNTOWN PARKING AND BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2009-10 AND DIRECTING THE CITY CLERK TO SCHEDULE A PUBLIC HEARING FOR JUNE 15, 2009 TO CONSIDER LEVYING THE ASSESSMENT BE IT RESOLVED by the Council of the City of San Rafael as follows: WHEREAS the Parking and Business Improvement Area Law of 1989 (California Streets and Highway Code Section 36500 et seq.) authorizes cities to establish parking and business improvement areas for the purpose of imposing assessments on businesses for certain purposes; and WHEREAS on July 19, 1982, the San Rafael City Council established the Downtown Parking and Business Improvement District (the District) by the adoption of Ordinance No. 1435; and WHEREAS the Board has submitted an Annual Report to Council that outlines the activities of the District proposed for fiscal year 2009-10 as required by the California Streets and Highways Code Section 36533; and WHEREAS the Annual Report is clear, complete and found to comply with the interests of the District assessees and contains the information required by California Streets and Highways Code Section 36533; and WHEREAS the California Streets and Highways Code Sections 36534 and 36535 require that in order to levy an assessment, the City adopt a Resolution of Intent that declares their intent to levy such assessment and then set a date for a public hearing where interested parties may be heard on the issue. NOW, THEREFORE IT IS HEREBY RESOLVED that: Section 1. The City Council hereby approves the 2009-10 Annual Report of the Downtown Parking and Business Improvement District as submitted to the City Clerk by the Downtown Business Improvement District Board. Section 2. The boundaries of the Downtown Parking and Business Improvement District are described in the San Rafael Municipal Code Section 10.08.050 and displayed on the boundary map included in the submitted Annual Report. No changes are proposed in the 2009-10 Annual Report. Generally, the District is located on Fourth Street between Lincoln Avenue and E Street. Section 3. Pursuant to the provisions of Section 36500 et seq. of the California Streets and Highways Code, City Council declares its intent to levy and collect an annual assessment for the Downtown Parking and Business Improvement District for fiscal year 2009-10. Section 4. The authorized uses for the revenues derived from the assessment are stated in San Rafael Municipal Code Section 10.08.090, and no changes to these uses are proposed in the 2009-10 Annual Report. The authorized uses as stated in that section are: (1) Provision of occasional free parking meters within the District; (2) Decoration of any public place in the District; (3) Promotion of public events occurring in the District; (4) Furnish music in any public place in the District; (5) General promotion of trade activities in the District; Section 5. A full and detailed description of the improvements and activities to be provided in fiscal year 2009-10, the boundaries of the area and the proposed assessments to be levied upon the businesses within the area are contained within the 2009-10 Annual Report of the Downtown Parking and Business Improvement District filed with the City Clerk by the Downtown Business Improvement District Board. Section 6. A public hearing shall be held before the City Council on June 15, 2009 in the City Council Chambers, 1400 Fifth Avenue, San Rafael, California. Following the hearing, Council will consider adoption of a resolution levying the assessment as recommended by the Downtown Business Improvement District Board. At this hearing, Council will hear all interested persons and protests may be made orally or in writing. Written protests shall be filed with the City Clerk at or before the hearing. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. 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. Council may correct minor defects in the proceedings during the hearing. If written protests against the assessment are received from business owners that will pay fifty percent or more of the proposed assessment, no further proceedings to levy the assessment shall be taken for one year from the date of the finding of a majority protest by Council. If the majority protest by business owners is against the furnishing of a specified improvement or activity within the District, those improvements or activities shall be eliminated. In order to be counted towards a majority protest, each written protest shall be from the business owner and contain a business description sufficient to identify the business. If the protesting person is not shown on the City's official business license records as owner of the business, the protest shall contain written evidence that the person is the business owner. Section 7. The City Clerk is hereby directed to give notice of said hearing by causing the Resolution of Intention to be published once in a newspaper of general circulation in the City of San Rafael not less than seven days before the public hearing. I, ESTHER C. BEIRNE, City 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 Council of said City held on the 1st day of June, 2009, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL Esther C. Beirne, City Clerk