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
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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
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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.
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5. Make some cleanup changes to various definitions and other language within the BID
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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
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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
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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
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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
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Downtown Parking and Business Improvements Area and Levy an Assessment" which declared
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its intention amend the "Downtown ging Parking and Business Improvements Area by changing the
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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
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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
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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
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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
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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