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HomeMy WebLinkAboutED BID Ordinance 1926 Pass to PrintCITY OF Agenda Item No: 4. a Meeting Date: November 3,2014 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Tom Adams, ED Specialist City Manager ApprovM) RECOMMENDATION: Conduct a Public Hearin,, on Ordinance and City Council's Intention to Levy an Annual Assessment for the Downtown San Rafael Business Improvement District. Approve Ordinance to Amend Municipal Code Chapter 10.09 for Printing. BACKGROUND: On October 6, 2014. City Council adopted Resolution 13 816 declaring Council's intention to levy the 2015 annual assessment for the Downtown San Rafael Business Improvement District (BID). City Council also indicated its intention to amend San Rafael k4unicipal Code Chapter 10.09, which governs the operations of the BID. The notice of toiil,-,Iit^s public meeting \\as published in the Marin Independent Journal on October 17, October 24, and October 31. The BID mailed a copy of the Annual Report and the proposed assessment chanes to all of its membership (approximately 700 businesses). The City mailed notices to those businesses which will have their assessments increased (i.e. financial institutions). The purpose of tonight's rneetinc, is to hold a public hearing required prior to adoption of the proposed ordinance amending the Municipal Code. The meeting also serves as the second ill a C7 three meeting process (the third meeting will be December 1) required by state law to modify the BID assessment formula and approve the levy of assessments for the 2015 calendar year. The meeting tonight primarily IS intended to accept public testimony on the proposed modifications to the assessment formula (several types ot'businesses will have fee reductions while financial institutions will have a fee increase). Staff requests City Council consider the proposed Ordinance (see Exhibit A) to amend the fee assessments and approve the first reading Z� and pass to print. The third and final City Council meeting on the BID modification and annual renewal process will take place on December I — it is at the December I meeting that will provide the IbrUrn to formally protest the BID assessment. File No.: F-3 Council Meeting: i 11 .312, Of 4 Disposition: OV'A. tq'2,U 'Pd&S,&—A tD P611t- ANALYSIS: State law guides the establishment of business assessment districts, procedures for the annual assessment, and the process for modification of boundaries, assessments, or activities. Section 36500 of the California Streets and Highways Code allows for the creation of a business improvement district 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 within the district and provide additional services beyond those offered by local government. Businesses within Downtown San Rafael initially set up a business district in 1979 — this original district included approximately 125 businesses along Fourth Street between Lincoln and E Street. In 2013, at the request of the business district membership, the City Council voted to disband the original downtown district and 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 in original BID (see Exhibit B for BID Map). The assessments for the new BID were mailed in December 2013 and the new BID organization began operations in 2011. The new BID has been very active in numerous programs to improve the downtown business climate. In its first year, the BID has focused on the following areas: building the BID organization and working with its membership, increasing the effectiveness of marketing and events, promoting economic development, and working with the City to address various issues related to parking, safety, cleanliness, and social issues (see Exhibit C for BID Annual Report). At the 2013 City Council meetings to establish the new assessment district, a wide variety of comments were received from the public. In particular, several speakers questioned the fairness of the assessment formula for some of the smaller businesses. The primary issue raised was whether these businesses have the financial capacity to absorb the assessment fees. As part of the creation of the new BID, City Council requested that the BID review the overall fairness of the assessment fee structure and provide recommendations for the 2015 year assessments. In addition, over the past year, there have been some questions and complaints frorn BID members about the clarity of the assessment classifications and the equity of the assessment fee structure. In response to City Council's request for a 'fairness review', the BID set up an assessment committee to review the current assessment fee structure and make recommendations to the BID Board on ways to make the fees more equitable for all members. The assessment committee reviewed a variety of ways to change the assessment formulas. Since the BID assessment fee is collected with the business license fee there are administrative constraints on how to structure the assessments based upon the information available to the City's Finance department through the annual business license renewal program. There was not consensus among the assessment committee for a preferred assessment formula. While several members felt that an entirely new assessment fee structure was warranted, others felt that instituting a completely new fee structure would require extensive outreach and consensus building and that the fundamental structure of the current assessment structure is sound and similar to many other business districts throughout the state. While there were some differences of opinion on the overall fee structure, the committee members all agreed that the BID should proceed with changes to the assessment formula to lessen the impact on some of the smallest businesses. The BID will continue to review assessment equity and other issues as they arise in the future. At the September 5, 2014 monthly Board meeting, the BID Board reviewed and discussed the recommendations of the assessment committee and potential changes to the assessment fees for the upcoming 2015 calendar year. In general, the BID felt that changes were needed to respond to concerns raised during the 2013 public hearings and to address some of the overall 'Iairness* issues raised by the BID membership The BID Board unanimously approved the following recommended changes (also see Exhibit D): Summary of the Recommended BID Assessment Fee Structure Changes: Assessment Category # Businesses Proposed Action Total Impact (approx.) j Personal Service Sole Practitioners 50 Reduce fee by $25 ($1,250) Financial Institutions / Banks 16 Increase fee by $200 $3,200 Retail, Restaurant, Personal Services - less 40 Reduce fee by $50 ($2,0(IO) than $100,000 orross receipts (Premium) Retail, Restaurant, Personal Services - less 40 Reduce fee by $25 ($1,000) than $100,000 gross receipts (Standard) Total BID Businesses with Fee Changes 146 Total Yet Impact ($1,050) � As shown in the table above, a total of approximately 130 businesses will receive; a reduction in the assessment fee while 16 businesses (financial institutions/banks) will have their assessments increased. The recommended changes to the BID assessment fee structure will result in an approximate reduction in BID revenues of $1,050. Explanations for each of the proposed changes follow: Reduce the assessment fee for 'Personal Service Sole Practitioner' (mainly stylists in salons) by $25. The assessment fee for these individuals would be reduced from $75 to $50 for the premium area and $50 to $25 for the standard area. Chanme #1 Rationale: The BID believes that since stylists typically rent their chair and may not be onsite full time, they deserve a smaller fee. In addition, the salons pay their own annual assessment fee in addition to those paid by the sole practitioners so there is an equity issue for each salon location as well. ?. Reduce the assessment fee for those businesses in the 'Retail, Restaurant, Personal Services on the Ground Floor' category with gross receipts of less than $100,000 (currently paying $80 or less in business license fee) by $50 for businesses in the premium area. The assessment fee for these businesses would be reduced from $225 to $175. Chane #2 Rationale: The BID believes that those smallest businesses in the highest fee categories deserve a reduction in their annual fee. 3. Reduce the assessment fee for those businesses in the 'Retail. Restaurant. Personal Services on the Ground Floor' category with gross receipts of less than $100,000 (currently paying $80 or less in business license fee) by $25 for businesses in the standard area. The assessment fee for these businesses would be reduced from $175 to $150. ChanQe #' :) Rationale: The BID believes that those smallest businesses in the highest fee categories deserve a reduction in their annual fee. 4. Increase the assessment fee for 'Financial Institutions' (i.e. banks) by $200 for both the standard and premium areas, such that the fee for the premium area will increase from $225 to $425 and the fee for the standard area will increase from $175 to $375. Chanr4e #4 Rationale: The BID believes that banks benefit the most from a stronger downtown business district as stronger businesses within the district will translate to more revenues for the banks. In addition, the higher fee for banks is consistent with the practices of other nearby BID's such as Novato and Petaluma which both charge a $500 flat rate for banks. I 5. Make some cleanup changes to various definitions and other language within the BID In ordinance to clarify the assessment fee classifications and make adjustments to better reflect the intention of the assessment. The primary cleanup changes are: a single person with multiple business licenses at the same address will be charged only one assessment fee, retail business on the second floor (with primarily internet sales) will be treated as an office tenant. Change #5 Rationale: The BID believes that the assessment fee should reflect the approximate value of the business district to business based primarily on the geographic location of the business — those businesses located on the second floor or with multiple business licenses should pay according to the classification of the business and the location of the business per the spirit Z=1 and intent of the assessment fee structure. 6. At the request of the Finance Department, the BID will no longer charge pro rata fees for new businesses or issue refunds for businesses that leave the BID before the end of the year. ChanLle #6 Rationale: The Finance Department spends significant time and expense working with businesses to help them understand and comply with the business license fee requirements, as well as the BID assessment fee. Over the past year of the new BID, one particular area of confusion among businesses, and Finance Department administrative difficulty, pertains to the calculation and processing of BID pro -rata fees and refunds. Eliminating these elements from the BID assessment fee structure will simplify the process for businesses as they join or leave the BID and it will greatly reduce the administrative overhead associated with collecting the BID assessments. These changes will not have a significant impact on the net revenues generated for the BID organization. FISCAL IMPACT: Adoption of the proposed ordinance will not have a direct fiscal impact on the City. The proposed changes to the BID program will not affect the City other than a slight benefit from the reduction in Finance Department staff time. OPTIONS: I) Approve the Ordinance for Printing. 2) Direct Staff to Modify the Ordinance. 3) Direct Staff to Provide Further Analysis and Return with a Modified Ordinance at a Future City Council Meeting. 4) Refuse to Approve the Ordinance and Proceed with Current Assessment Formula SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paue: 5 ACTION REQUIRED: I-Iold Public Ilearim, and accept public comment. and Pass Ordinance to Print. ATTACHMENTS: t.,',xlilbit A: Proposed Ordinance Amendments Exhibit B: BID Map Exhibit C: 2014 BID Annual Report and Cover Letter, 2014 Board of Directors. and Proposed 2015 BID Budget Exhibit D: BID Assessment FOrInUla (Current and Proposed) SUMMARY OF ORDINANCE NO. 1926 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING SAN RAFAEL MUNICIPAL CODE CHAPTER 10.09 "DOWNTOWN SAN TAFAEI. BUSINESS IMPRAIVEMENT DISTRICT." This Summary concerns a proposed ordinance of the City Council of the City of San Rafael, designated as Ordinance No. 1926, amending Chapter 10.09 entitled "Downtown San �7 C7 Rafael Business Improvement District", as detailed in the complete text of Ordinance No. 1926. Ordinance No. 1926 is scheduled for adoption by the San Rafael City Council at its regular C� meeting, of December 1, 2014. The City Clerk has been directed to publish this Summary pursuant to City Charter and California Government Code section 36933(c)(1). SUMMARY OF AMENDMENT TO MUNICIPAL CODE The proposed ordinance will change assessment rates for certain members of the Downtown San Rafael Business Improvement District. These changes will reduce the assessment fee for 'Personal Service Sole Practitioner', reduce the fee for 'Retail, Restaurant, Personal Services on the Ground Floor' category with gross receipts of less than S 100,000-, increase the fee for 'Financial Institutions' (i.e. banks)-, clarify assessment fee classifications to better reflect the intention of the assessment, eliminate pro rata fees for new businesses and eliminate refunds for businesses that leave the BID prior to the end of the year. For a copy of the complete text of Ordinance No. 1926, please contact the City Clerk at (415) 485-3066. Copies of Ordinance No. 1926 will also be available for public review as of November 10, 2014, at the San Rafael City Clerk's Office, 1400 Fifth Avenue, ?nd Floor, Room 209 during regular business hours, 8:30 a.m. to 5:00 p.m. Z, /s/ Esther C. Beirne ESTHER C. BEIRNE San Rafael City Clerk Dated: November 10, 2014 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING SAN RAFAEL MUNICIPAL CODE CHAPTER 10.09 "DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT." WHEREAS, pursuant to Section 36500 et seq. of the California Streets and Highways Code (the "Act-) the City Council on March 18, 2013 adopted Resolution No. 13519 entitled -Resolution of the San Rafael City Council Z - Declaring Council's Intention to Amend the Existing I Downtown Parking and Business Improvements Area and Levy an Assessment" which declared C7 its intention amend the "Downtown ging Parking and Business Improvements Area by changing the Ln L, -1 name to "Downtown San Rafael Business Improvement District" (the "BID"); expanding the existing area boundaries; changing the activities for which the assessment will be used; including C7 all businesses except residential uses and home occupations in the District; and changing the assessment to a flat fee by type of business in two zones of benefit; and WHEREAS, pursuant to the Act and the Resolution, City conducted a public meeting after having given due notice thereof as required by law, on May 6, 2013 in the Council Chambers at 1400 Fifth Avenue, San Rafael, California. At said public meeting the City Council received public testimony regarding the proposed amendment of the BID; and C-1 WHEREAS, pursuant to the Act and the Resolution, City conducted a public hearing, after having given due notice thereof as required by law, on May 20, 2013 in the Council Chambers at 1400 Fifth Avenue, San Rafael, California. At said public hearing the City Council received and considered all oral and written protests regarding the proposed amendment of the BID, and determined at the conclusion of the hearing that written protests from businesses in the proposed BID that Would pay 50 percent or more of the proposed assessment were not received and there was no majority protest within the meaning of the Act; and Z� WHEREAS, the public interest, convenience and necessity require the amendment of the proposed BID, and the businesses within the BID will be benefited by the expenditure of the funds raised by the assessments levied hereby in the manner prescribed herein; and WHEREAS, Council may, for each of the purposes set forth in Section 36510 and 365 133 of the Act, establish one or more separate benefit zones based upon the degree of benefit derived from the formation of the BID and may impose a tiered assessment within each of the benefit zones, and all provisions of the Act applicable to the establishment, modification, or disestablishment of the BID shall apply to the establishment, modification, or disestablishment of benefit zones; and WHEREAS, businesses in the BID shall be subject to any amendments to the BID's boundaries, amounts of assessments, improvements, or 'activities subject to the requirements of the Act. For the purpose of establishing assessments in the BID, Council may make a reasonable classification of businesses, -ivinc, consideration to various factors, includinc, general benefit to businesses and the degree of benefit received from BID activities. Assessments levied on businesses pursuant to this Ordinance shall, to the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses within the BID. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1: FINDINGS The City Council finds that the public interest, convenience and necessity require the amendment of the San Rafael Municipal Code Chapter 10.09 Downtown San Rafael Business Improvement District, and the businesses within the BID will be benefited by the proposed amendments to the section `Calculation of Assessments' (section 10.09.050) as detailed herein. DIVISION 2. AMENDMENTS TO CHAPTER 10.09 The San Rafael Municipal Code Chapter 10.09 Downtown San Rafael Business Improvement District, is amended as follows: Chapter 10.09 Downtown San Rafael Business Improvement District Sections: 10.09.010 - Purpose 10.09.020 - Definitions 10.09.030 - Establishment of District 10.09.010 - Boundaries of District and Benefit Zones 10.09.050 - Calculation of Assessment 10.09.060 - Use of Revenue 10.09.070 - Collection of Assessments 10.09.080 - Advisory Board and Annual Report 10.09.090 - Assessments Do Not Offset City Services 10.09.100 — Boundary and Assessment Modifications 10.09.010 - Purpose. The purpose of this Chapter is to authorize the city to impose assessments on business within a parking and business improvement area which are in addition to any assessments, fees, charges, or taxes imposed in the city, and to use such proceeds for the benefit of businesses within such area. 10.09.020 - Definitions. For the purposes of this Chapter and for identifying businesses in the Downtown San Rafael Business hnprovement District and for calculating and applying the assessments owed, the following definitions shall apply: A. "Financial Institutions" - Banks (retail and full service), savings and loans, credit unions as allowed in the underlying Zoning District. B. "Non -Profit Organizations - Organizations registered as a non-profit corporation with the State of California and fine artists. C. "Fine Artists"- Artists that produce art that is intended primarily for beauty rather than utility or commercial purposes. D. "Offices" - Businesses providing administrative or business services such as company headquarters, employment agencies, management services as allowed in the underlying Zoning District. E. "Personal Services" - Businesses that sell services such as hair salons, nail salons and day spas as allowed in the underlying Zoning District, and may combine some retail sales with product services, and may be associated with sole practitioners. F. Personal Services, not on Ground Floor- Personal service businesses that are not located on the ground floor of a building and do not have a retail presence on the street. G. "Personal Services Sole Practitioner" - Businesses that are sole practitioners in personal services businesses, including barbershop chairs, manicurists chairs" beauty shop chairs and miscellaneous personal care chairs. H. "Professionals - Businesses that require advanced and/or specialized licenses and/or advanced academic degrees, such as architects, engineers, attorneys, accountants, therapists, counselors, realtors, mortgage brokers as allowed in the underlying Zoning District. Professionals working as sole practitioners are in this category. I. "Restaurant" - Businesses that sell prepared foods and drinks as allowed in the underlying Zoning District. J. "Retail" - Businesses that buy and sell goods, such as clothing stores, shoe stores, office supplies as allowed in the underlying Zoning District. 10.09.030 - District Established. Pursuant to the provisions of Streets and Highways Code Section 36501 et seq., a Parking and Business Improvement District is hereby established, named "Downtown San Rafael Business Improvement District"" (the "BID"). 10.09.040 - Boundaries of District and Benefit Zones The Parking and Business Improvement Area created herein includes businesses situated within the boundaries described as follows: Those businesses situated on parcels fronting on the north side of Fourth Street from Second Street to E Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 010-291-57, 35, 34, 33. 49, 69; 011-192-18, 08, 07; 011-194-I1, 13, 08, 07, 011-196-12, 11, 10, 09, 08, 07; 011-202-13, 12, 11, 14; those businesses situated on parcels bound by Fourth Street, Second Street and Ida Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-231-24, 25, 03, 04, 05, 06, 21. 17, 16, those businesses situated on parcels fronting on the south side of Fourth Street from Ida Street to E Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-232-01, 02, 03; 011-241-01, 30, 31, 32, 33; 011-242-01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11: 011-245-26; those businesses situated on parcels bound by E Street, I-ietherton Street, Fifth Avenue and Third Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-204-01, 16, 15, 14, 13, 17, 09, 08, 20, 18, 19; 011-205-01, 15, 14, 13, 12, 11, 10, 09, 08, 16, 05, 04, 17; 011-212-15, 14, 16, 11, 06. 05, 04, 03; 011-214-10, 011-215-01, 02, 04, 05; 011-216-01, 011-222-08, 05; 011-224-01, 18, 17, 20, 15, 14, 13. 12. 11, 10, 19, 08. 06. 05, 04, 03. 0121-, 011-227-01. 08, 07, 06, 05, 04, 10, 09, 02; 011-251-01, 13, 12, 11, 10, 09, 08, 07, 06, 05, 04, 03, 02; 011-253-01, 09, 08, 07, 06, 11, 10, 04, 03, 02, 011-255-27, 15, 14, 13, 18, 10, 29, 33, 19, 20, 07, 31, 30, 32, 23, 28, 03: 011-261-01. 13, 12, 20, 26, 29, 30, 17, 31; 011- 263-20, 21, 02, 19, 04, 16, 22, 13, 11, 10, 09, 08, 07, 06, 05, 02; 011-271-01, 16, 15, 14, 13, 12, 11, 17, 07, 06, 05, 04, 03, 02, 01, 011-273-01. 17, 18, 12, 11, 10, 09, 08, 24, 06, 05, 04, 23, 02; 011-275-01, 12. 11, 10, 09, 13, 05, 04, 03, 02; 011-277-01; 014-084-13, 14, 02; 014-121-14; those businesses situated on parcels fronting on B Street from Third Street to Second Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-256- 26, 07, 08, 09, 32, 12, 011-262-01, 21, 22, 16, 15, 14, 23. The Standard Benefit Zone is that portion of the Downtown San Rafael Business Improvement District located to the west of E Street, that portion to the east of Lincoln Avenue, and that portion fronting on B Street from Third to Second Street. The Prernium Benefit Zone is the remainder of the Downtown San Rafael Business Improvement District; specifically that portion located the east of E Street and west of Lincoln Avenue, between Fifth Avenues and Third Street. Said area zones are reflected on a graphic. Exhibit A, attached to the ordinance codified in this chapter and incorporated in this chapter by reference. 10.09.050 — Calculation of Assessments. All businesses in the BID shall, commencing on January 1, 2015 pay an annual benefit assessment to the BID in the amounts shown in Table 10.09.050-1. Table 10.09.050-1 Type of Business Retail on the Ground Floor, Restaurant, Personal Services on Ground Floor Retail on the Ground Floor, Restaurant, Personal Services on Ground Floor — Businesses 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 Annual Assessment Standard Premium $175 $225 $150 $175 $75 $100 $25 $50 $50 $50 $375 $125 Assessments based upon `Gross Receipts' shall be based upon the previous year's annualized gross receipts. An individual who has multiple business licenses in their name at a single address shall only pay one assessment fee. No person or business shall be required to pay an assessment for residential uses, residential businesses or home occupations. Any business outside the BID may voluntarily pay the Standard Zone Assessment. 10.09.060 - Use of Revenue. The revenues derived from the assessments shall be used for the purposes as stated in Streets and Highways Code Section 36501 et seq. for the specific benefit of assessed businesses which may include: A. General promotion of businesses activities which provide a specific benefit to assessed businesses within the BID., B. Promotion of public events which provide a specific benefit to assessed businesses within the BID and which take place on or in public places within the BID: C. The acquisition, construction, installation and maintenance of any tangible property including but not limited to benches, trash receptacles, decorations and landscaping which provide a specific benefit to assessed businesses within the BID; D. Activities which provide a specific benefit to assessed businesses located and operating in the BID. 10.09.070 — Collection of Assessments. The benefit assessment shall be billed annually by the City in conjunction with the City's annual business license. Any business exempt from paying City business license fees shall be assessed in January of each year. All assessments collected shall be held in a separate account and expended in accordance with this chapter and any subsequent resolutions and funds management agreement. 10.09.080 — Advisory Board and Annual Report. The City Council shall appoint an Advisory Board pursuant to Streets and Highways Code Section 36501 et seq. to administer the affairs of the BID. Members of the Advisory Board must own or represent a business in the BID, or be a voluntary member. The Advisory Board shall prepare an annual report for each year for which assessments are to be levied. The report shall be filed with the City Clerk and shall comply with all requirements as stated in Streets and Highways Code Section 36501 et seq. 10.09.090 — District Proceeds Do Not Offset City Services. Funds derived from the BID assessments shall not be used to offset or diminish current maintenance or capital improvement programs, including but not limited to public property and sidewalk cleaning and maintenance, street cleaning and maintenance, tree maintenance 10.09.100 — Boundary and Assessment Modifications The City Council may, at the Advisory Board's recommendation, modify the boundaries or assessments. Such modifications shall be made pursuant to the requirements of Streets and Highways Code Section 36501 et seq. DIVISION 3: SEVERABILITY I1' any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid. DIVISION 4: PUBLICATION This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. GARY O. P I , ,IPS, Mayor ATTEST: ES'THER C. BEIRNE, City Clerk The foregoing Ordinance No 1926 was read and introduced at a Regular Meeting of the City Council of the City of San Rafael. California, held on November 3, 2014 and ordered passed to print by the following vote, to wit: AYES: Councillmembers: Bushey, Colin, Connolly, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on December 1, 2014. ESTHER C. BEIRNE, City Clerk [9J0fAJ:JJ:Jr I i 0 4 , I . 1 41111 &M � I MUM 401 1- 11M 10 1 W142 I ky, 1:1 USITA Q TJ IQ 0 NEI] R2 1 Z14 I" WHEREAS, pursuant to Section 36500 et seq. of the California Streets and Highways Code (the "Act") the City Council on March 18, 2013 adopted Resolution No. 13519 entitled "*Resolution of the San Rafael City Council Declaring Council's Intention to Amend the Existing Downtown Parking and Business Improvements Area and Levy an Assessment" which declared its intention amend the *'Downtown Parking and Business Improvements Area" by changing the name to "Downtown San Rafael Business Improvement District" (the "BID"); expanding the existing area boundaries; changing the activities for which the assessment will be used; including all businesses except residential uses and home occupations in the District; and changing the assessment to a flat fee by type of business in two zones of benefit; and WHEREAS, pursuant to the Act and the Resolution, City conducted a public meeting, after having given due notice thereof as required by law, on May 6, 2013 in the Council Chambers at 1400 Fifth Avenue, San Rafael, California. At said public meeting the City Council received public testimony regarding the proposed amendment of the BID; and WHEREAS, pursuant to the Act and the Resolution, City conducted a public hearing, after having c, given due notice thereof as required by law, on May 20, 2013 in the Council Chambers at 1400 Fifth Avenue, San Rafael, California. At said public hearing the City Council received and considered all oral and written protests regarding the proposed amendment of the BID, and determined at the conclusion of the hearing that written protests from businesses in the proposed BID that would pay 50 percent or more of the proposed assessment were not received and there was no majority protest within the meaning of the Act; and WHEREAS, the public interest, convenience and necessity require the amendment of the proposed BID, and the businesses within the BID will be benefited by the expenditure of the funds raised by the assessments levied hereby in the manner prescribed herein; and WHEREAS, Council may, for each of the purposes set forth in Section 36510 and 36513 of the Act, establish one or more separate benefit zones based upon the degree of benefit derived from the formation of the BID and may impose a tiered assessment within each of the benefit zones, and all provisions of the Act applicable to the establishment, modification, or disestablishment of the BID shall apply to the establishment, modification, or disestablishment of benefit zones; and WHEREAS, businesses in the BID shall be subject to any amendments to the BID's boundaries, amounts of assessments, improvements, or activities subject to the requirements of the Act. For the purpose of establishing assessments in the BID, Council may make a reasonable classification of businesses, giving consideration to various factors, including general benefit to businesses and the degree of benefit received from BID activities. Assessments levied on businesses pursuant to this Ordinance shall, to the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses within the BID. DOES ORDAIN AS FOLLOWS: DIVISION 1: FINDINGS The City Council finds that the public interest, convenience and necessity require the amendment of the San Rafael Municipal Code Chapter 10.09 Downtown San Rafael Business Improvement District, and the businesses within the BID will be benefited by the proposed amendments to the section 'Calculation of Assessments` (section 10.09.050) as detailed herein. The San Rafael Municipal Code Chapter 10.09 Downtown San Rafael Business Improvement District, is amended as follows: Chapter 10.09 Downtown San Rafael Business Improvement District Sections: 10.09.010 - Purpose 10.09.020 - Definitions 10.09.030 - Establishment of District 10.09.040 - Boundaries of District and Benefit Zones 10.09.050 - Calculation of Assessment 10.09.060 - Use of Revenue 10.09.070 - Collection of Assessments 10.09.080 - Advisory Board and Annual Report 10.09.090 - Assessments Do Not Offset City Services 10.09.100 — Boundary and Assessment Modifications 10.09.010 - Purpose. The purpose of this Chapter is to authorize the city to impose assessments on business within a parking and business improvement area which are in addition to any assessments, fees, charges, or taxes imposed in the city, and to use such proceeds for the benefit of businesses within such area. 10.09.020 - Definitions. For the purposes of this Chapter and for identifying businesses in the Downtown San Rafael Business Improvement District and for calculating and applying the assessments owed, the following definitions shall apply: A. "Financial Institutions'* - Banks (retail and full service), savings and loans, credit unions as allowed in the underlying Zoning District. B. "Non -Profit Organizations" - Organizations registered as a non-profit corporation with the State of California and fine artists. C. "Fine Artists"- Artists that produce art that is intended primarily for beauty rather than utility or commercial purposes. D. "Offices" - Businesses providing administrative or business services such as company headquarters, employment agencies, management services as allowed in the underlying Zoning District. E. "Personal Services" - Businesses that sell services such as hair salons, nail salons and day spas as allowed in the underlying Zoning District, and may combine some retail sales with product services, and may be associated with sole practitioners. F. Personal Services, not on Ground Floor- Personal service businesses that are not located on the ground floor of a building and do not have a retail presence on the street. G. "Personal Services Sole Practitioner" - Businesses that are sole practitioners in personal services businesses, including barbershop chairs, manicurists chairs, beauty shop chairs and miscellaneous personal care chairs. H. "`Professionals - Businesses that require advanced and/or specialized licenses and/or advanced academic degrees, such as architects, engineers, attorneys, accountants, therapists, counselors, reactors, mortgage brokers as allowed in the underlying Zoning District. Professionals working as sole practitioners are in this category. 1. "Restaurant" - Businesses that sell prepared foods and drinks as allowed in the underlying Zoning District. J. "Retail" - Businesses that buy and sell goods, such as clothing stores, shoe stores, office supplies as allowed in the underlying Zoning District. 10.09.030 - District Established. Pursuant to the provisions of Streets and Highways Code Section 36501 et seq., a Parking and Business Improvement District is hereby established, named "Downtown San Rafael Business Improvement District" (the "BID"). 10.09.040 - Boundaries of District and Benefit Zones The Parking and Business Improvement Area created herein includes businesses situated within the boundaries described as follows: Those businesses situated on parcels fronting on the north side of Fourth Street from Second Street to E Street. more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 010-291-57, 35, 34, 33, 49, 69; 011-192-18, 08, 07, 011-194-11, 13, 08, 07; 011-196-12, 11, 10, 09, 08, 07; 011-202-13, 12, 11, 14; those businesses situated on parcels bound by Fourth Street, Second Street and Ida Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-231-24, 25, 03, 04, 05, 06, 21, 17, 16; those businesses situated on parcels fronting on the south side of Fourth Street from Ida Street to E Street. more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-232-01, 02, 03; 011-241-01, 30, 31, 32, 33; 011-242-01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11: 011-245-26: those businesses situated on parcels bound by E Street, Hetherton Street, Fifth Avenue and Third Sheet, more particularly assessors parcels as shown on the 2012 Assessor's Maps as follows: 011-204-01, 16, 15, 14, 13, 17, 09, 08, 20, 18, 19; 011-205-01, 15, 1.1, 13, 12, 11, 10, 09, 08, 16, 05, 04, 17; 011-212-15, 14, 16, 11, 06, 05, 04, 03; 011-214-10; 011-215-01, 02, 04, 05: 011-216-01; 011-222-08, 05; 011-224-01, 18, 17, 20, 15, 14, 13, 12, 11, 10, 19, 08, 06, 05. 04, 03, 0-1 2) k 011-227-01, 08, 07, 06, 0.5, 04, 10, 09, 02; 011-25t-01, 13, 12, 11, 10, 09, 08, 07, 06, 05, 04, 03, 02; 011-253-01, 09, 08, 07, 06, 11, 10, 04, 03, 02; 011-255-27, 15, 14, 13, 18, 10. 29, 33, 19, 20, 07, 31, 30, 32, 23, 28, 03; 011-261-01, 13, 12, 20, 26, 29, 301 17, 31; 011- 263-20, 21, 01 19, 04, 16, 22, 13, 11, 10, 09, 08, 07, 06, 05, 02; 011-271-01. 16, 15, 14, 13, 12, 11, 17, 07, 06, 05, 04, 03, 02, 01; 011-273-01, 17, 18, 12, 11, 10, 09, 08, 24, 06, 05, 04, 23, 02; 01 1-275-01, 12, 11, 10, 09, 13, 05, 04, 03, 02; 011-277-01; 014-084-13, 14, 02: 014-121-14; those businesses situated on parcels fronting on B Street from Third Street to Second Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-256- 26, 07, 08, 09, 32, 12; 011-262-01, 21, 22, 16, 15, 14, 23. The Standard Benefit Zone is that portion of the Downtown San Rafael Business hnprovement District located to the west of E Street, that portion to the east of Lincoln Avenue, and that portion fronting on B Street from Third to Second Street. The Premium Benefit Zone is the remainder of the Downtown San Rafael Business Improvement District; specifically that portion located the east of E Street and west of Lincoln Avenue, between Fifth Avenues and Third Street. Said area zones are reflected on a graphic, Exhibit A, attached to the ordinance codified in this chapter and incorporated in this chapter by reference. 10.09.050 — Calculation of Assessments. All businesses in the BID shall, commencing on January 1, 2014 pay an annual benefit assessment to the BID in the arnounts shown in Table 10.09.050-1. Table 10.09.050-1 Type of Business Retail on the Ground Floor, Restaurant, Personal Services on Ground Floor, Financial hist ion Retail on the Ground Floor, Restaurant, Personal Services on Ground Floor — Businesses 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 In Financial Institution Annual Assessment Standard Premium $175 $225 $150 $75 $100 X1$25 $50 $50 $50 $375 $-425 Assessments based upon 'Gross Receipts' shall be based noon the previous vear's annualized gross receipts. An individual who has multiple business licenses in their name at a sin(ale address shall only pay one assessment fee. No person or business shall be required to pay an assessment for residential uses, residential businesses or home occupations. Any nev.,,, . 11", DM 't-11 �,_ __ busine_", in the B.— shall be .-Claifed to pay a pro rata shafe of the annui Any It business outside the BID may voluntarily pay the Standard Zone Assessment. 10.09.060 - Use of Revenue. The revenues derived from the assessments shall be used for the purposes as stated in Streets and Highways Code Section 36501 et seq. for the specific benefit of assessed businesses which may include: A. General promotion of businesses activities which provide a specific benefit to assessed businesses within the BID; B. Promotion of public events which provide a specific benefit to assessed businesses within the BID and which take place on or in public places within the BID, C. The acquisition, construction, installation and maintenance of any tangible property including but not limited to benches, trash receptacles, decorations and landscaping which provide a specific benefit to assessed businesses within the BID; D. Activities which provide a specific benefit to assessed businesses located and operating in the BID. 10.09.070 — Collection of Assessments. The benefit assessment shall be billed annually by the City in conjunction with the City's annual business license. Any business exempt from paying City business license fees shall be assessed in January of each year. All assessments collected shall be held in a separate account and expended in accordance with this chapter and any subsequent resolutions and funds management agreement. 10.09.080 — Advisory Board and Annual Report. The City Council shall appoint an Advisory Board pursuant to Streets and Highways Code Section 36501 et seq. to administer the affairs of the BID. Members of the Advisory Board must own or represent a business in the BID, or be a voluntary member. The Advisory Board shall prepare an annual report for each year for which assessments are to be levied. The report shall be filed with the City Clerk and shall comply with all requirements as stated in Streets and Highways Code Section 36501 et seq. 10.09.090 — District Proceeds Do Not Offset City Services. Funds derived from the BID assessments shall not be used to offset or diminish current maintenance or capital improvement programs, including but not limited to public property and sidewalk cleaning and maintenance, street cleaning and maintenance, tree maintenance 10.09. 100 — Boundary and Assessment Modifications The City Council may, at the Advisory Board's recommendation, modify the boundaries or assessments. Such modifications shall be made pursuant to the requirements of Streets and Highways Code Section 36501 et seq. DIVISION 3: SEVERABILITY If any section. subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid. DIVISION 4: PUBLICATION This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in I full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in a newspaper of general circulation In published and circulated in the City of San Rafael, County of Marin, State of California. GARY O. PHILLIPS, Mayor ATTEST: ESTHER C. BEIRNE, City Clerk The forc(yoinc, Ordinance No was read and introduced at a Regular Meeting of the foregoing 1-1 City Council of the City of San Rafael, California, held on 1 2014 and ordered passed to print by the following vote, to wit: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on 1 2011. ESTHER C. BEIRNE, City Clerk FCOOFOMFOO DOWNTOWN SAN RAFAEL September 28, 2014 In 2014, the Downtown San Rafael BID continued to evolve as an organization and as an advocate our member businesses, and our downtown community. The expansion from a small merchant association representing less than 140 businesses to abusiness district advocating on behalf of nearly 700 diverse businesses has created exciting opportunities to engage our business owners in building the future of downtown. Yet, the new organization also faces challenges to better engage, enlist and empower its members to tackle the many challenges weface. The attached annual report includes accomplishments during the period of June 2013 — July 2014 and a work plan for the period of June 2014 to December 2014. The BID has transitioned from operating on a July -June fiscal year in the old BID to a calendar year basis in the new B|D, which is consistent with the BID assessment calendar. Since the attached annual report was published, we are pleased to report progress on the following work plan items: In April 2014 the Board established a task group to review specific concerns raised bymembers onthe levy ofassessments and individual objections based upon specific circumstances. At that time, the board voted to address such issues during the 2015renewal process. Additionally, aworking group has proposed modifications to the 2015 assessment schedule to address issues of parity as members strongly felt the assessment schedule placed adisproportionate financial burden on our smallest businesses. The proposed revision of the 2015 assessment formula isincluded with the agenda packet. |nJune, the BID held our Annual Meeting mtArt Works Downtown, following o mailed notice to members of our slate of candidates for election to the 2014/2015 board of directors. The meeting resulted in several members expressing interest in the board. Subsequently, two new board members have been appointed tothe board - Matt Hau|k, an attorney with RhagiunnU & Freitas and Amanda Tryon of Coppnrfie|d's Books. ° |nAugust, the BID unveiled San Rafael downtown's first-ever community art banner display along Fourth Street. This 'outdoor gallery' on|nbra&ss local artists and it features the winners of an art competition based on the theme 'Creative San DnSeptember 1S.wehad a soft launch ofour new Downtown San Rafael website that isdesigned topromote our business members. The website includes an events calendar and a section which allows each BID member to publicize their own deals, promotions and events. Over the next month, we are introducing these features to our members through both email invitations and door-to-cloor visits with hands-on assistance on how to maximize their listings and the marketing potential of the new website. In the two vvaaks since its |ounoh, the website has had over DnwNrowp5^n A^p^ELBos/weaIMPROVEMENT 0srmo 10OOunique visitors (with nopub|ioitv). Our public promotion ofthe new website is scheduled for the second week inOctober. Aspartofourwebsite'wehavonstab|iehedanonUna"RaquentforSanvioe^fonn that goes directly to the Downtown Streets Team, allowing our businesses to request as -needed cleaning assistance from the Team. Whether itisaspot cleaning in front of business, window cleaning, or other one-time assistance, support from the DST is now readily available to our members and will continue to foster positive relationships between the team members and our merchants. On September 27the BID re -introduced adowntoxwn Wine ShoU, in which 29 downtown businesses padinipated, either as tasting locations oras caterers for a host merchant. The BID partnered with the newly formed Gan Rafael Fire Foundation, which proved to be a successful model for collaboration, raising funds for the foundation and extending marketing to residents who otherwise might not have participated in the event. Over 200 community members enjoyed the evening, with many commenting that they were introduced to stores and business owners previously unfamiliar to them. On October 11. the B0 is hosting Lkouake San Rafael, the only official North Bay event sanctioned by Litquake SF, which is celebrating its 15 1h year as a renowned literary festival. We are excited 0u put San Rafael on the map as an official location for Li\quskefans. The holiday season kicks off with the annual Downtown Trick or Treat, presentation of the West End Village Fun Festival on November 16, collaboration with Steve Restivo Events and the City of San Rafael to support our local businesses during the Parade of Lights festival on November 28, and collaboration with the San Rafael Chamber of Commerce on promoting Small Business Saturday in downtown on November 29. The BID will also present holiday coop advertising opportunities for our members and continue to build our online marketing presence. In many ways, the BID is a new and evolving organization and with this comes some challenges and growing pains. While vveare proud cfall vve accomplished in2O14.we recognized there are limits towhat our small organization can achieve. Asvvemove into 2015, our goal is to tighten our work plan and continue to build active engagement from our members. In August, we sent out a business issues survey to our members for whom we have emails (we are following up with a mailed version) and the surveys confirm that our members are most concerned about downtown parking policies, safety and competition. Our 2U15work plan istailored tothese pressing concerns. 2O15Committees and Proposed Work Plan: Organization ° Build engagement with members through routine communications and regularly scheduled mixers. ^ Continue to recruit committee members and engage prospective board members. Collaborate with other organizations including San Rafael Chamber ofCommerce and Renaissance Center to strengthen advocacy for our downtown businesses. " Continue toadvocate for clean and safe public spaces. � Continue pursuit tosecure additional sidewalk cleaning services. ° Explore sponsored downtown beautification projects —asdeainadbygroundUoor business members. ° Support projects designed to increase pedestrian friendly downtown including pilot parklet program and increased convenient bicycle parking. ° Establish aworking task force made upofmembers and community representatives to develop a comprehensive parking policy proposal for downtown that supports our objective of creating a welcoming place to shop, dine and enjoy leisure pursuits. ° Continue to advocate for adequate downtown policing and research and deliver recommendations to City Council on best practices for safety and hospitality in areas impacted bythe street population, such asthe establishment ofa professionally managed downtown ambassador program. ° Provide support for prospective downtown tenants based upon outcomes from MJB Consulting retail recruitment contract. ° Establish a West End Economic Development Committee to identify issues and opportunities affecting the growth of the West End Village and to advocate on issues specific tothe West End. Establish an active Marketing Committee to develop a 2015 marketing plan for the downtown district, utilizing website, social media and print outlets for maximum exposure. Deliver 3 signature events, and collaborate with downtown Arts Organizations, California Film Institute and other event producers to maximize integration of downtown businesses in events that are held in downtown, leveraging collaborative opportunities and mitigating perceived negative impacts onour downtown businesses. Support our individual businesses through website and social media exposure. Our success in 2015 will depend largely on the willingness of our stakeholders to come to the table, speak up, propose solutions and lend their talents for the greater good of our downtown. With limited funding for staffing, the BID must rely on active committees and engaged members to carry projects fonmard. We believe Downtown Sen Rafael is in a period of exciting transition and opportunities and we believe the BID can continue to be a valuable tool for our members to work together for avibrant and successful downtown. Sincerely, ^ San Rafael" Isabel Hayes p/r^nate Banner Art mmnemmn 0���� ~� �� ��~w^ - ' _ VVnvv It's been awhirlwind ofafirst year aspresident and itismyhope that inthese pages you will see how much we have done with very few resources. Ifthere isany one message tushare bisthat the BID can bewhatever vvewant ittobe. But i1takes effort and involvement. That can bejust alittle bit ofinvolvement all the way Lip tojoining the board, but what matters is hearing from asmany members aspossible about how best todirect Our efforts. Atour best, the BID isacollective voice speaking for the welfare ofdowntown businesses. Our focus inthis first year isonbuilding community with our membership and pushing forward projects and events with the city that help usall. Only byyour involvement will weknow what you want. Only then can vveadequately represent your interests and identify how you can beapart ofour efforts, Getting information toYOU isOur greatest challenge. Many problems urconcerns change when you know more about the situation. I've learned much inthe past six months about parking, our police resources, city government, events, and frustrations shared byfellow business owners. I've used the BID asaresource tofind out more about what ishappening innnycity. And I've learned that sometimes, through noyinvolvement inthe BID, | can make adifference. With enew president, new director and new board members, the BID isquickly changing, adapting toanew era. Beapart ofthat change. |who|e'hearted|ybelieve the livelihood ofour downtown isaworthy investment ofmy time and effort beyond the walls ofnnyown business. It ismyhope that you share this point ofview, |fso, |look forward toworking with you in the days ahead asvvegive substance toour vision for athriving downtown. _ Andre Sisneros President Established monthly committee meetings for Parking.Social Issues (safety), Design (stneetscape) and Events. Initiated website overhaul, contracting with Loca|OnfOr nevvvvebsite. Anticipated launch date: July Introduced ToVvnsquared,3 closed foruFnfor BID members through which Lo build community, Utilized electronic newsletters for enhancedmember [ornnouniL8dnns, Sent out post cards toall new members requesting ennai|contact to increase Gbil|tytVcommunicate. Advocated for City tminvest in dovvnLovvnbyremoving old news racks, replacing leaky tr8sh-c3ns,and replanting corner tree wells (where possible') to improve street appearance, BID continues tO wxorkvvithCity oRdowntown hard-xLa|;einve5tnnent. Worked with Downtown Streets Team to establish routes that cover entire BID area Onweekly basis for sidewalk sweeping. Conductedfirst--ever Downtown Street Banner Art Competition to foster cornrnuoityengagenoentin downtown. 33 designs were selected fnono 17 artists that will beprinted and hung onFourth Street inJuly 2Ol4. Secured city commitment tosupport api|ot park|et project on Fourdl Street to enhance pedestrian experience and increase on -street bike parking. Project isinprognee.Partncring with Marin County Bicycle Coalition and the City's Pedestrian Advisory Committee on project. Piloted Second Friday's cultural events to Supplement Art Works Downtown's 2nd Friday's Art Walk. Produced successful "Latin Flavors onFou rth,""Feast onthe Piazza,"''Almost Midnight inParis" (including Gnattention- grabbing poodle p@/3de);"Fall Harvest Evening and Flash Sale." Closed Out year with "Holiday Cheer" inDecember. Plans for ZOl4are pending. Supported return oFthe West End Fun Festival with Target Funds grant and committed togreater administrative support in2O14, Secured a$1U'O0Ogrant fnorn Target Funds tofund apart- time BID Event Coordinator to increase our ability toproduce BID events. Conducted second Sweetheart Scavenger Hunt resulting in positive press coverage in Marin U. Produced lDl4May Madness, moving the event off Mother's Day weekend and introducing elements tuconnect with Younger demographic. Event was most Successful i0several years and netted asmall profit. K8arinscupc News Pointer - Article on Banner Competition & May Madness Marin U- Positive press oAPoodle Parade, Sweetheart ScGvencierHunt and May Madness. SUbsiclizedone month ofholiday coop -ads generating four full pages ofdowntown prDnlotioDs Books -- in six editions of Marin U during — BOWNIOWN [}e[enlbsr,seuhngdgOificaOt San savings for merchants. Rafael Subsidized holiday co-op ads in e=u San Rafael Pacific Sun, generating significant Luggage Center savings for merchants, San Rafael Established Downtown San Rafael Facebuukpage tobroaden cu'mnunityronnPcUonto �ovvntoxvn� Re-established Dominican "Penguin Pa|s^PFGgmOl with business directory listing distributed 3t Freshman welcome dayS. Initiated quarterly meeting with dovvnLovxnarts organizations to identify opportunities for cross promotionsand share calendars, ` Successfully advocated toCity for development ofaretail recruitment strategyfor downtown. Secured $7,8UOfrom Target Funds for this effort and, City Council approved expendituresupto$3O,OOOto engage MJ8Consulting, Project to startnnid-surnnler. Attend nounth|yBusiness Issue Committee with Mayor Phillips, [oUnci|noernberK8[[U!|ough, CityManager, keeping focus on dnvvn1ovvnbusiness challenges. Rafael Film Center 6^1, L""ci,Broadway m Hollywood ^!1�n`"ma^,° �2 T Breathing Earth - Susumu Shingus Dream - US �m111M "a J=zze,un=w ~w �rlt Laugh with your Dad Comedy s'�"a­" Georges Night Club Alter Theater World pro=*rc.The Fellows .,' w8-r,�*mw"° Italian Street Painting Marin *cu o21 "1 � Rebound Books Books -- Red Devil Blue Man Records Comics Riley Street Brad Gilbert Art Supply e=u San Rafael �Diamond Luggage Center Sports Cards San Rafael �a°m°sc"p" Rare Coin Mikes Bikes Summit Bikes Radio Shack Triumph ,w,.�;,x DowntownSamRafaiel mo AndmeSisnanms P/esident Gamescape Kyle Hixon ' Vice President Fenix Entertainment Greg Genet, Tteasun`r First Bank Forrest Manning Sect et /y Joel Eh (Events/Promotions) ReboundBouksooe Tim Hedrick (Design Committee) Weir AndmxoonA/dhitects John Gmdsey Marketing FouI-thSoaetPress Mike LamoMe-(RestaumnodEv nts) Napoli P|:-zo&Pasta Not) Voting: Ashely App|egaxthC5orin||oues) Dovjirto�un Resident Vacant Seats: Upno4/xk6rxma|board may h(, appoiritc-d for 2014,115 v-rms. Successfully advocated tukeep garage parking rates unchanged, using nn2t2red parking to effectively manage space TurnovPr. Negotiated improved holiday parking program extending free 3hour pat -king to all dtVp@rk-iOg lots. Advocated for improved employee parking, pay-bv-ph0Oeoptions and discounted pre -paid ^srnartcards. (pending) Facilitated meeting with business owners surrounding [yosLot resulting )nmodified design plans based on merchant requests. Proposed introduction of bike corrals Orparklets on Fourth Street to increase bike parking and increase pedestrian friendliness, Design committee implementing effort second half 2Ol4. zrmm� Purpose: Pr friote BID to Stakeholders nd the con"i-ritinit', and ensure organiza- honril fouritort iai. trot�o and fiminciai - . — s - rt`,011,:O-Ittl,,I) . I iS Qi ucleni General Goal 2014 Establish a strong struclure and 1-oundation for organization Objective #11 - Adhere to By -Laws Project 411 -- St=', Annual Genetal Meeting Project #2 - Appoint Nominating Corn- riflitee and eied 2014/15 board Project #3 Update bydajvs in ieflect changes in RID in P,01 -'s Objective #2 — Increase Member & Community Engagement Project #1 comprehensive Oi( iar;i;,atioil cl,:Ilaloase Projia( 1 /1, Vvebtte Project f`1=2 -Ii" -mane:try inixers & hapq)y horir:, Project #3 tat:;li .i ii .ltirle comininnication vjilth nenibers to ncluding block Project 44- Tocrn'squared f;tumi to [JivId roro7li:;IrnonBID Objective i13 Stabilize/ Diversify Funding Project #1 Estal disl i COMMitteO to ieviLw BID "N' r�Cjiiity/paiitv. Project #2 Prepare for BID renewal in Septertihrr Project ft3 111I,itifl/ funding nppor', Lit) Q Trr )()J Parking and Transportation Purpose: Pmm.,Ae eflective pal+,rig and transpoh-,ttion into downto',vn San Rafael General Goal 2014: Ensuje the, (town- Inv,Int ha-, easy accuss For cars and bikes, and that I_,Fis adequate Parking for r,-rnployt.rs and t, ij_�lom&rs. Objective #1 — Host mc-ith1v meetinq to addre,s issue -z- ciffet,'ing employee & Winn paw;ncl, Social Issues Marketing & Promotions Purpose: Advocate on issues of crime, code enforcement and negative social activities that impact economic vitality of downtown at the direction of our members. Objective #1 -- Be a resource for members and advocate on social issues that affect downtown Project #1 — Advocate on massage parlor enforcement with goal of closing down- town Illicit businesses. Lead letter -writing campaign. Objective #2 — Support the Downtown Streets Team by promotion their successes and serving on Business Advisory Committee. Project #11: Reach out to members to encourage sponsoring of coffee breaks/ refreshments, etc for team. Design Purpose: Make sure downtown is clean. has aesthetic appeal and welcoming quali- ties. General Goal 2014: Promote a public space that is welcoming. Objective #1 -- Improve Downtown Cleanliness Project #1 - Secure funding to supple- ment pple- ment City's sidewalk cleaning efforts, Project #2 — Request City to replace leaky trash cans Project #4 - Create a Downtown Streets team "task" list for spot cleaning & as- sisting businesses to stay clean. Objective #2 — Enhance the aesthetics of public space Project #1 — Street Banner Competition Project #2 - PlIot Parklet Purpose: Strengthen retail environment and advocate on ordinances & codes that affect downtown businesses. Objective #1 - Proinote dov�;nlovjn through strategic marketing Project #1 - Re-establish Dominican University Incentive/discount Program Project #2 -Create advertising campaign for remainder of 201 Project #3 - 'Collaborate o,,Ith Was Organizations & Cross promote Project 44 - Pis,,ent Co-op advertising opportunilies for merchants Project #5 - Introduce nev,,vvebsite business directory to members to enhance their individual online piesence. Purpose: Prornute Ihe dclvrttmvri through production or specral events ims designed to attract commUnity e, -,d promote existing assets. such as rnerchants, dining, entertainment and oilhei bus!nesses. Objective #1 -- Ptoouce Special Events to expose locals and wlaoirs to downtoim San Rafael Project #1 - May IMiacines ' s Project 2 - VJL­�t End Cultute Crav!l Project # 3 Taste 0 Stroll 'a Savor - r4epterribei Project # 4- Lit/Poetry Crav,,It - -Fall Project #5 -- Hallr,v�een - Enhance Project #6 - Support Art Woiks Do,,vn- to,oin's Second Fr idavS At t tillalk Project 47 - West End Fun Festival Project !-,8 - Sniall BL[Sloe-.S "Satuiday Objective #2 -- Capitalize on other special events in downto,,,,.,n and Identifv cross piornotionai OPPOItWIFTIL-11: Weekly Fatrrie!s fVlaiket Tv'ilight Criterium, Italian Street Paintinq Blues, Bre,.vs BBQ Mill Valley Film Festival Parade of Lights Project #2- Co-piesent ADA VJoikshop with City, Chamber of Curntneice & Mai in Center for Independent Living Objective 42 - Support —Strong Retail Mix Project Ill — Review employee and. Objective #1 — Educate businesses on Project #11: Conti ibUtC- $3.000 BID op'1t,.Av,. make iecom- ordinances, codes & best practices. reserves & Targe{ Funds to City contract mertdai;o;,s, an'd narketring. for Retail Reci Uitn ler-It Sttak-_'gY_ Kyle Hixon Interim President (Fenix) Greg Gener—Treasuner(First Bank) Forrest Manning —Secretary (Double Rainbow) Joel Eis(Rebound Bookstore) John Godsey(Fourth Street Press) Matt Hau|k(RagghiantiFreitas Law Offices) Mike Larnorte(Napoli Pizza 8'Pasta) AndreSisneros—PaztPresident/Garnescape\ Amanda Tryon /[opperDe|d'sBooks) �ZU13Year End Fund Balance $60/000 MM 2Dl4Year End Fund Balance, $59372 Y8ar2Q15 2015 Programs Proposed Budget BID Assessments S80,000 Event Income $5,000 Target Grant (see note below)* $15,000 svems(tbd) ($6,000) Event Coordinator* ($15,000) ($2�O�) , Advertising/Marketing ($8,000) Website Maintenance ($2,500) BID Member Communication ($1,500) EM Safety Initiatives (tbd) ($1,500) ($1,500) - " $O Staffing ($44800) Year2014 Revenues 2014 Programs Estimated Year End Insurance BID Assessments $78,995 ($3,000) UndamParking Lot $27,094 meeting/traw:|cxn *May S25,824 Target Grant May Madness $10,00 coop advertising ! $I'000 Other Event Income ' $5'106 -Target Grant- �svem[oor $10,000 Target Grant Retail Recruit ' $7,8UO Total Operating Income __ $165,019 Expenses Events May Madness ($33,675) Trick orTreat ' ($1,000) other events ($1,I33) Culture Crawl ($600) Lit Crawl ($1,500) Food & Wine Event ($5/00) Event Coordinator ' ($15,000 Events `./�G7,908) Marketing &Promotions Advertising . ($7,780 Revision ($4,085) -Website Directories/marketing ($1,000 xxrmbercnmm/mixers ($5'728) Marketing Su | - - -- - ' ($1� 593) - Streetscape& Safety Banner program ($3'500) Parklet $O S�e��ape&���Sub��| - -�-- ._p�`5�) Retail Recruit - ' ($10,000) Operating Expenses Staffing ' ($44,000) payroll taxes &admin ($4,268) office rent ' ($6,000) U) Insurance ($5,339) tele/supplies/office ' ($3,1I7) prof ea/ oo" ing/banNng ' ($5,017) exp ($1,395) -meeting/travel UndamLot c^penses _ ($6'500) (O`er"�n� Expenses Subtotal - ' - - ' '-- --'-- - ($75,646) - ' To1alExpenses ($165,647) 0etPro8t/|oas ' Projected 2014 Ending Fund Bala nce/Carryover to 2015 $59,372 MM 2Dl4Year End Fund Balance, $59372 Y8ar2Q15 2015 Programs Proposed Budget BID Assessments S80,000 Event Income $5,000 Target Grant (see note below)* $15,000 svems(tbd) ($6,000) Event Coordinator* ($15,000) ($2�O�) , Advertising/Marketing ($8,000) Website Maintenance ($2,500) BID Member Communication ($1,500) EM Safety Initiatives (tbd) ($1,500) ($1,500) - " $O Staffing ($44800) payroll taxes &admin ($5,000) office rent ($6,00) Insurance ($4,500) tele/supplies/office ($3,000) prof ess/aoounbng/ba nking ' ($2,500) meeting/traw:|cxn ($500) -($� O�) -. � ($100,000) --~ � $0 2015 Ending Fund Balance $59,372 *Target grant revenues along with matching event coordinator expenses are contingent upon being awarded a $15,000 Target grant. 2O14BID Assessment Formula (Current) Type ofBusiness Retail, Restaurant, Personal Services onthe Ground Floor, Financial Institution i Offices, Professional, Personal Services, not on Ground Floor i Personal Services Sole Practitioner | Non -Profit Organization and Fine Artists Business Type Retail onthe Ground Floor, Restaurant, Personal Services nn \ the Ground Floor Retail unthe Ground Floor, Restaurant, Personal Services on Ground Floor — Businesses with Less than $10U,000inGross Receipts Offices, Professional, Personal Services, not on Ground Floor, Retail not onGround Floor Personal Services Sole Practitioner Non -Profit Organization and Fine Artists Financial Institution Annual Assessment Standard Premium $175 $225 $75 $180 $50 $75 $50 $50 Annual Assessment Standard Premium $175 $2ZS $150 $175 $25 $SO $50 $50 $375 $425 CITY OF SAN RAFAEL kj FAI k i I I loll I [a] a$] On 2 M" i =Q I [ a I I j [6 Al MAKE I IMINEW191:2401 ill, W ill � DATE OF MEETING: 11/3/14 FROM: Thomas Adams DEPARTMENT: Economic Development DATE: 10/27/14 I I INN W912111001011111 085 1:4H Consideration of Ordinance to Amend Municipal Code Chapter 10.09 'Downtown San Rafael Business Improvement District' (known as BID) and Accept Public Testimony on Council's Intenti to Levy an Annual Assessment for the Downtown San Rafael Business Improvement District I Depar ent Head (signature) 9�17M�MT �' � �Tilvri "I (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: 'C i t y'M a n ag c e ri n� a t u r e) City Attorney (signature) f REMARKS: The attached staff report packet is the second meeting of the three meeting, annual renewal process for the BID - third & final meeting will be a public hearing Dec. I — the December meeting is the one where a I public protest is counted, if one is brought forward (usually it would be a two meeting annual renewal process, but since the BID is proposing to raise the fees on some members it requires a third meeting). From: Sent: To: Subject Carol Thompson <director@downtownsanrafael.org> Monday, November 03, 2014 4:26 PM Esther Beirne Fwd: City Council Tonight - BID Renewal Can you please forward email below to council, Thank you. Carol Thompson Director Downtown San Rafael BID Be -in forwarded message: From: Elvis Gottleib <-: Date: November 3, 2014 at 4:08:09 PM PST To: Subject: Re: City Council Tonight - BID Renewal Reply -To: Elvis Gottlelb < sorry I can't make it, but I would like to give my written support for the BID. I think it is very pro -active organization offering support to businesses by creating activities to promote the downtown and west end, as well as advocating on our behalf politically, sponsoring co-op advertising and other generally L_ Z__ t__ Z__ positive initiatives. Thanks Elvis 3ohnson Red Hill Pet Center 415-457-0927 On Monday, November 3, 2014 2:12 PM, Downtown San Rafael BID < wrote: rNINVIT-311WO Monday, November 3 Tonight, Monday, November 3, the City Council will initiate the process to renew the BID for 2015. There is no vote made on the 1 renewal tonight, however, public testimony is welcomed. This is the first public notification of the intent to consider the renewal of the BID. The City Council meeting begins at 7 pm. BID members are encouraged to attend: If you believe the BID is moving in the right direction, we encourage you to let Council know that you value the efforts of the BID on your behalf. Our efforts for 2015 are to focus on improving parking in downtown, advocate for continued focus on mitigating negative impacts of transient population and increase marketing and promotions that directly benefit our merchants. We continue to actively encourage members to join committees and participate in the effort to strengthen our downtown. The BID is YOUR organization. It is important to show City Council that you support the continuation of the BID for 2015. We hope you can join us tonight. On behalf of the board of directors, Carol Thompson Downtown San Rafael BID This email was sent to by Rapid removal with TM Downtown San Rafael BID PO Box 151050 San Rafael CA 94915 9