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HomeMy WebLinkAbout04/01/2008, PH 1 - DOWNTOWN ASSOCIATION RESTRUCTURING AND PROPOSED ASSESSMENT INCREASE counat Mew'aft 4-1-08 j Agenda Report �N , CITY OF SAN LUIS O B I S P O FROM: Shelly Stanwyck, Assistant City Administrative Officer Prepared By: Deborah Cash, Administrator of the Downtown Association; Claire Clark, Economic Development Manager; Christine Dietrick, Assistant City Attorney SUBJECT: DOWNTOWN ASSOCIATION RESTRUCTURING AND PROPOSED ASSESSMENT INCREASE CAO RECOMMENDATION 1. Introduce an Ordinance amending Municipal Code Section 12.36.080 to facilitate restructuring the Downtown Association (DA) as an independent organization. 2. Approve an Agreement with the newly formed, non-profit organization, the San Luis Obispo Downtown Association (SLODA) for provision of services to the City as an independent agency and authorize the Mayor to execute the Agreement upon final formation of the non- profit organization. 3. In providing resources for an organizationally and fiscally independent SLODA, adopt a Resolution of Intention to increase the amount of the assessment paid by downtown business operators from 0.00050 of gross receipts to 0.00055 of gross receipts, and increase the minimum annual assessment from $25 to $150. REPORT-IN-BRIEF To better serve its members, and to better implement the goals and objectives of the 2007 San Luis Obispo Downtown Strategic Business Plan approved by Council in October 2007 (see Reading File) it was recommended 'that the existing DA be restructured into a non-profit, member benefit organization. In accepting the proposed 2007 Strategic Plan, the Council endorsed this recommendation and the DA, in conjunction with the City of San Luis Obispo, began the restructuring process. The City and the DA formed a transition team to identify the roles and responsibilities of each organization in order to facilitate restructuring. To better meet the resource needs of the SLODA, the adequacy of the Business Improvement Area (BIA) revenues were reviewed for the first time since 1975. To retain continuity in the efforts of the DA in support of the Downtown Business Improvement Area, an increase in the assessment paid by businesses in the BIA is recommended. The proposed increase requires procedural action on the part of the City with an anticipated effective date of July 3, 2008 for the new assessment rates. While they are related, restructuring the DA and increasing assessments are separate and distinct actions: they can each be approved independently from the other. Irl Downtown Association Restructuring and Proposed Assessment Increase Page 2 DISCUSSION Background—The DA and the City over the Years 1. An Overview of the DA and its Relationship to the City The DA, in its present structure, was created in 1975 pursuant to the Parking and Business Improvement Area Law of 1965 (California Streets and Highway Code §36000-36081). That law provides the authority to the City to impose and collect an assessment from businesses and property owners in a defined area; defines and limits the purposes for which revenues from the assessment can be used; and provides that "[t]he city council shall have sole discretion as to how the revenue derived from the tax is to be used within the scope of the [defined] purposes . ." The law also permitted the Council to appoint an advisory board to make recommendations to the Council as to the use of the assessment revenues. It was pursuant to that authority that Council created the current DA (originally named the BIA) by adoption of Ordinance Number 649 (1975 Series). The boundaries of the Downtown Parking and Business Improvement Area (Area) were defined by the Ordinance, as more specifically shown on Attachment 1, encompassing the heart of the Downtown Business district bounded generally by Santa Rosa and Beach Streets, and by Palm and Marsh Streets. The Area has not changed since its creation and no changes are presently recommended. The DA, now in its 33rd year, has.an annual budget of approximately $500,000, about a third of which is derived from the area assessment on the approximately 700 DA members. 2. The Operational Practices of the DA The DA operates as a member-based organization where businesses that are subject to City business taxes and are located within the boundaries of the area pay an additional assessment that supports the activities enumerated in Section 12.36.080 of the Municipal Code. The DA membership consists of those business owners located within the Area. A Board of eleven directors is formed from the membership; and the Council appoints the Board members as the members of the DA advisory body. The Board develops a two-year work plan and budget in conjunction with the City's budgeting process. It meets monthly for regularly held Board meetings, as well as an annual retreat to either develop (every two years) or review (each alternating year) the work plan. The work plan and budget are reviewed by the Council bi- annually. The work plan is comprised of recommendations from five committees: Design, Parking and Access, Economic Activities, Promotions, and Thursday Night Promotions (also generically referred to as Farmers Market). The Board's work plan and directives are carried out by Board and committee members and, at the present, a staff of four contract City employees: Administrator, Administrative Assistant/Office Manager, Thursday Night Promotions Coordinator and Promotions Coordinator. I Downtown Association Restructuring and Proposed Assessment Increase Page 3 While the DA operates with a high-degree of independence from the City's regular operations, it is structurally an advisory body to the Council, like the Parks & Recreation Commission, Mass Transportation Committee or Cultural Heritage Committee. While the ambiguous nature of this relationship has always been problematic; the difficulties it presents have grown over time, and have resulted in the recommendation to restructure the DA for greater independence from the City. 3. The DA's Mission and Member Benefits Each year, the Board reviews and accepts or modifies a Mission statement that says: The San Luis Obispo Downtown Association is a partnership of members—working through programs and services for the economic, social, cultural and environmental vitality and beautification of Downtown. With this mission in mind, each committee devises a work plan of activities that supports stated goals; moreover, each committee has its own mission statement to that end. Examples of each committee's program include but are not limited to: 1. Economic Activities Committee: Newsletters, construction project mitigation, private security, surveys, annual report, website maintenance, new business orientation, Strategic Planning 2. Parking and Access Committee: Works with the City Parking Services Division on parking management, alternative parking and access programs, parking programs such as the Gold Pass, Tokens and Cash Keys, in lieu fees and is advocating completion of the proposed Palm Nipomo parking structure 3. Promotions Committee: Concerts in the Plaza, Holiday activities including annual parade, Santa's House in Mission Plaza, Classic Carousel, Taste of San Luis, Annual Promotions Calendar, SLO County Journal 4. Thursday Night Promotions (TNP): Weekly Farmers Market (year `round), Theme nights at TNP such as Fire Prevention Night, Downtown Brown's Birthday, Mothers Day Flower Giveaway, Annual Rib Cook Off, Public Works Night, Halloween Trick or Treating and Costume Contest, Main Stage events, Certified Farmers Market Association produce area, Table and Chair seating 5. Design Committee: Downtown Foresters, Beautification Awards, Banners, Holiday Tree in Mission Plaza, Window Decorating Contests, Public Art 6. Additional benefits of membership include: Free Notary Service for businesses, a lending library, Quarterly Breakfasts, Juror Dining Brochure, Website links, as well as offering assistance in business plan review, SBA referrals and help with permitting or other issues involving City departments. 4. The DA's Associations and Certifications In 2002, the Administrator obtained status as Certified Main Street Manager through the National Trust for Historic Preservation's Main Street Center in Washington, D.C. The DA became a National and California Main Street program in 1986 (it is considered a veteran Main Street l � Downtown Association Restructuring and Proposed Assessment Increase Page 4 community) and.has incorporated the Main Street 4-Point Program of revitalization in its work plan. Those four points are: Economic Restructuring, Design, Promotions, and Organization. Each year the DA is re-certified due to its compliance with rigid requirements of participation and reporting, and in 1999, as a result of this process, the DA received the Great American Main Street Award. Currently, the DA is a member of the California Downtown Association. Administrator Deborah Cash is often invited to other communities to share Downtown San Luis Obispo's success story and to provide insight and advice to struggling downtowns. 5. Existing City Support of the DA In the years since establishing the Parking and Business Improvement Area and Advisory Body, the City has supported the DA with a wide range of services. The City provides these services free of charge, without tapping the DA's revenues. These services include day-to-day administrative support from several City departments including Human Resources, Finance, (payroll, accounts payable, revenue management, collections, investments, general ledger and financial reporting), Attorney and Administration. Additionally, the Council designates liaisons to the DA who attend DA meetings and provide support to the DA Administrator relative to City departments and services. The DA also receives operational support from other City departments, such as Public Works, Police, Fire and Parks & Recreation. These services currently include street sweeping; daily trash and recycling pick-up; sidewalk steam cleaning; tree trimming, bicycle racks; graffiti clean- up coordination; monthly business fire inspections; support during construction, including coordination of scheduling of construction and curtailing construction during the holiday season; a multitude of police services; and support for holiday activities, including parade floats, Santa's house storage and the holiday decoration installation in Mission Plaza. The DA has been encouraged to bring events to the Downtown that enhance foot traffic among businesses in the Downtown. Services related to these activities are supplied by the City as a part of its relationship with this Advisory Body for the benefit of the Area. Over the years since establishing the DA, the Council has encouraged and supported the DA, as an arm of the City government, for the benefit of the Area and in recognition of the role a vibrant downtown plays in the wellbeing of the City as a whole. 6. The DA's Growing Interest in Independence From the "early days" of a few small promotions such as sidewalk sales and car shows and later, the Farmers Market, the DA has responded to the needs of its members through the work of its committees and their programs. As the downtown has grown and its use intensified, addressing concerns such as cleanliness and safety, physical attractiveness, and economic vitality are forefront in the DA's pursuits. This evolution has taken the former,`BIA" (the name was changed to the Downtown Association in 1998) from humble, yet earnest beginnings, to a sophisticated organization that continues to develop activities for the members' benefit. In recent years, the membership has had an interest in taking a more active role in political issues that affect the membership and potentially the Downtown. This growth in the activities of the DA has triggered the need to reevaluate the relationship between the City and the DA due to the discrete, though sometimes complementary, goals of the two bodies. The DA, that was I� I Downtown Association Restructuring and Proposed Assessment Increase Page 5 heretofore dependent on the City, is now capable of independence. Redefining the City/DA relationship to a contractual one with clear direction and boundaries is the current undertaking. Organizational Restructuring—Why is this good? The DA's advisory body status makes it subject to laws governing governmental agencies, such as the Brown Act, the Political Reform Act and public contracting laws. However, because it expends funds raised from area assessments as well as funds generated by activities wholly undertaken by the DA, engages in relatively independent promotional activities and has the benefit of full-time staff contracted by the City, the Downtown Association is functionally quite different from any other City Advisory Body. The DA has concluded that its status as a City Advisory Body now creates operational barriers to accomplishing the goals of its membership and ambiguities regarding the permissible scope of its activities. The applicability of the laws that govern governmental agencies to an entity that, practically speaking, is a public-private hybrid is also confusing. As a result, the need for an alternative structure for the DA was identified as a part of the DA's 2007 Strategic Plan Update approved by Council in October 2007 (See Reading File). The 2007 Strategic Plan calls for consideration of a change in the area revenue structure. The existing fees were analyzed in light of services and benefits provided to Area members. Several interesting facts were established and were used in analyzing how the SLODA can best maintain the high level of service to the Downtown established by the DA. 1. The revenue structure has not been amended since 1975. 2. The SLODA will, subsequent to formation, absorb the cost of support services presently provided by the City including accounting, legal support and human resources. 3. The scope of work described in the DA's s two-year work program has grown in size since the DA's formation in 1975. Committees and programs not formed at that time have come into existence and the DA has developed strong fund raising strategies to contribute an additional $350,000 annually to its coffers. In essence, for each dollar of assessment revenue coming from the proposed minimum, the Association raises two more, exemplifying the ,'more bang for the buck" adage. 4. The ability to continue to develop fundraisers, as noted in the Strategic Plan, has peaked considering the size of staff and resources. Proposed Alternative Organization Alternative organizational structures were studied by the DA Administrator and the City Attorney's office to determine what form, if any, would fulfill the DA's goals and further the joint desire of the City and the DA for greater separation and autonomy. To meet the joint goals of the City and the DA, the City Attorney recommended the 501(c) (6) non-profit organizational structure. This is a non-profit structure created for the benefit of members, which would enable the DA the autonomy to engage in lobbying or political activities (as a secondary activity), r � � Downtown Association Restructuring and Proposed Assessment Increase Page 6 concurrent with activities benefiting the downtown such as Farmers' Market and Concerts in the Plaza. The 501(c) (6) structure is a commonly used form throughout California for downtown organizations because it both recognizes and accommodates the reality of the hybrid nature of such organizations. A familiar example of a local membership benefit organization is the San Luis Obispo Chamber of Commerce. The Chamber exists to benefit its members. The Chamber, as would the SLODA, enters into a service agreement with the City to provide unique and specific services, such as Tourism Promotion at the Chamber's Visitors Center. As the issue of organizational structure was being addressed, a transition team was established comprised of representatives from Public Works, Fire, Finance, Parks & Recreation, Legal, and Administration and the DA Administrator. It was established to identify the roles and responsibilities of each organization in order to facilitate restructuring to benefit the Area. Major Milestones Necessary to Accomplish Organizational Transition 1. Services Agreement—Between the City and the DA Concurrent with the formation of the separate non-profit entity, the City and the DA have been working together to implement the DA's transition from advisory body status to that of an independent non-profit under contract with the City for the provision of services relating to a healthy Downtown. The 2007 Strategic Plan contemplated that administration of the assessment revenues would be accomplished via a contract between the City and the SLODA, in accordance with City budgetary and accounting procedures, and as authorized by Municipal Code Section 12.36.090. As envisioned by the transition team, the SLODA will undertake many of the activities and services provided by the DA via a contract for services that the SLODA is uniquely able to provide. These activities and services are enumerated in the Agreement provided in Attachment 2, which include, at a minimum, continuing Holiday Activities, Concerts in the Plaza and Thursday Night Promotions. The Agreement also enumerates on-going services that the DA has traditionally provided, including but not limited to working closely with City staff to address issues of parking, construction, downtown maintenance, activities in the Plaza, economic vitality and long term strategies for the viability and health of the SLODA. As a Main Street Organization, the SLODA will continue to maintain the high standards that qualify it for designation as a National and California Main Street program. It will continue to incorporate the Main Street 4-Point Program of revitalization in its work plan. The transition team has examined the services provided by the City to the DA, services provided by the DA for the benefit of the City and the ownership status of equipment and materials in the DA's possession. The proposed Agreement with the SLODA represents the culmination of this effort. It establishes that the SLODA will provide services as outlined in the Agreement in return for distributing all area revenues to the SLODA. The revenues may only be used for the purposes allowed when the Area was established as enumerated in the Municipal Code. Upon awarding the contract, the City will receive the services requested and the SLODA Board will develop work plans to include those services in its activities and budget. l — Downtown Association Restructuring and Proposed Assessment Increase Page 7 2. Formation of a Non-Profit Organization The DA has undertaken the process of incorporation as a 501(c)(6) organization, including establishing Articles of Incorporation and By-Laws which spell out membership terms. To facilitate transition to the SLODA, the DA Board of Directors has extended its Director's terms until September, 2008 to allow for a smooth transition from advisory body to non-profit organization. A general election will be held in August 2008, at which point six new members, comprised of owners or managers of Downtown businesses as stipulated in the proposed by- laws, will join five current members for two-year term of service. 3. Ordinance to Amend Code—Elimination of Advisory Body In addition to working out the details of an agreement between City and SLODA, an amendment to Municipal Code Section 3.26 is necessary to eliminate the currently existing advisory body and replace it with language that will permit the SLODA to operate as a separate non-profit organization. The ordinance adopting the amendment is provided in Attachment 3 and a legislative draft providing Chapter 3.26 in its entirety showing the proposed changes is provided in Attachment 4. 4. Contract Employees In addition to the changes to the structure of the organization, the employment status of the DA employees, currently contract employees of the City of San Luis Obispo, will change: all DA employees will become SLODA employees and will no longer be employees of the City. This change will occur as of July 1, 2008 or whenever the SLODA non-profit status takes effect. 5. Proposed Assessment Increase The Downtown Association Board of Directors voted to recommend that the BIA Area Assessment be established at the rate of 110% of the City business tax (0.00055 of gross receipts), with a minimum assessment of $150; compared with the current rate of 100% of the business tax (.00050 of gross receipts), with a minimum assessment of $25. For example, a member currently paying $250 for $500,000 in gross receipts would now pay $275 (an increase of $25 for the year, or about $2 per month). Businesses paying less than $150 would be increased to that minimum amount. 6. Use of Added Revenues The proposed assessment increase will generate about $60,000 in added BIA revenues. In addition to performing those services designated in the Agreement with the City, the SLODA will be financially responsible for some services currently provided by the City such as legal, accounting, and human resources. The amount for these services is estimated to be $30,000 per year. The SLODA also seeks to increase private security in the Downtown from three days to seven days a week in response to problems with transients, panhandling, gangs, graffiti, vandalism and other serious concerns. Additionally, the SLODA will expand its offices to include a conference area and cashier. Additional benefits for staff are also under consideration including health insurance and retirement contributions. An estimate of these additional costs is $60,000 annually, which is the amount of estimated new revenue that will be generated by the proposed assessment increase. 1 — 9 Downtown Association Restructuring and Proposed Assessment Increase Page 8 7. Resolution of Intention to Increase Assessment The first step in accomplishing the recommended assessment increase is for the Council to adopt the attached Resolution of Intention to Increase Assessment, which is provided in Attachment 5. The increase itself is an action that must.be taken by the Council for subsequent adoption of an Ordinance increasing the assessment, which can only be introduced after mandatory notice and hearing requirements have been completed. Once the Council adopts the Resolution, staff will provide the required notice to the affected business owners informing them of: 1. Adoption of the Resolution (we plan to provide each with a copy of the resolution). 2. Dates of public meetings and hearings that are required prior to implementing any increases.. 3. Protest procedures applicable to this type of assessment increase. 8. Collection and Remittance of BIA Funds If approved, the assessment would continue to be collected with the City's business tax in the same manner that it is today. BIA funds collected by the City will be remitted monthly to the SLODA. Compliance with Agreement requirements for use of BIA revenues would be evidenced through regular reporting as established in the Agreement between the City and the SLODA. The City Attorney has opined that, although the City has always treated this revenue as an assessment, increasing the assessment amount could generate a legal challenge asserting that revenue collected pursuant to the 1965 law constitutes a tax and is therefore subject to Proposition 218 requirements. Notwithstanding this risk, the DA and staff recommend the actions set forth in this report, and, with Council concurrence, will work with local legislators and the League of California Cities on means of clarifying the law under which the City's BIA was formed and assessments are collected. Next.Steps Several steps remain leading to the transition from the Advisory Body status of the DA to that of the SLODA, an independent non-profit organization. Formation of the New SLODA. The anticipated date for formal transition is July 1, 2008, the beginning of the next fiscal year, provided the SLODA's non-profit status has become effective. At that time, it will be necessary for the SLODA to be fully incorporated, with systems set up to accomplish accounting, personnel, and operational tasks. As stated earlier in this report, the DA Board will continue to sit as the acting SLODA Board until elections occur following incorporation.. As presently envisioned, elections will occur in August 2008 and the new SLODA Board members will assume their terms on September 1, 2008. Current DA employees will become employees of the SLODA, severing their employment relationships with the City. Per the Agreement, SLODA employees will work with City of San Luis Obispo Human Resources staff to effect the terminations by July 1, 2008 or upon later incorporation. City/SLODA Services Agreement. The Agreement between the City and SLODA will take effect on July 1, 2008, or when the SLODA non-profit has become effective, if such non-profit status occurs after July 1, 2008. Although the SLODA non-profit status is expected to be accomplished by July 1, should it be delayed past July 1, 2008, the activities of the DA will 1 -2 Downtown Association Restructuring and Proposed Assessment Increase Page 9 continue unchanged during the interim period, including the status of the City contract employees working at the DA. Proposed Assessment Increase. The procedural requirements for an increase in the assessment rate include several meetings subsequent to tonight's adoption of the Resolution of Intention to Increase Assessment. These meetings meet the requirements of the Brown Act for notification of an increase in assessment rates. The intended schedule is as follows: 1. May 6, 2008 Public Meeting 2. May 20, 2008 Protest Hearing and, absent valid protest, Introduction of the Ordinance 3. June 3, 2008 Final Adoption of the Ordinance 4. July 3, 2008 Effective Date of the Ordinance CONCURRENCES Getting to this point in the transition process has required the work of many. City staff and the DA Administrator have put many hours into the details of the transition, resulting in the accord that is presented herein. City departments, including Public Works, Parks and Recreation, Legal, Finance, and Administration concur with and support the separation outcomes that have been defined herein. The DA has undertaken a program of outreach to its membership with excellent results. Several of the members have indicated their support via letters. As more fully enumerated in Attachment 6, the outreach program included: 1. Print articles in the local newspapers and journals 2. Direct mailings of information about the non-profit status and the proposed fee increase. This consisted of a packet of information sent to each member fully describing the reasons and results of the change in organizational structure. It included financial data and creative ways to explain what members can expect from a newly structured DA. 3. Survey of the membership to find out the opinions of the membership relative to an increase in the BIA assessment. 743 surveys were sent out via US Mail. 71 were returned. The majority of members responding were.in favor of the organizational restructuring even with the increase in the assessment. 4. Personal outreach by Board members and the DA Administrator. FISCAL IMPACT There are no direct fiscal impacts to the City in approving the two recommended actions. The City will continue to provide a high level of service through collection of business tax and assessment revenues, and coordination between City and SLODA staff will continue to be a priority to benefit the Downtown. J Downtown Association Restructuring and Proposed Assessment Increase Page 10 ALTERNATIVES 1. Do not approve the Municipal Code amendment to facilitate restructuring the DA. The Council could decide to retain the DA as an advisory body and continue operations as they are today. For the reasons identified in this report, this is not recommended. In moving to an independent DA, the Council could choose to retain an advisory body. It is the express desire of the DA and SLODA to eliminate the intermediate step between the City and the SLODA because of the long-standing wonting relationship between the City and the DA, along with the oversight provided by the Council. Moreover, this is likely to continue ambiguity in the DA's role; and avoiding this is the purpose behind creating an independent DA. For these reasons, this alternative is not recommended. 2. Do not adopt the Resolution of Intent. Adoption of this resolution is just the first step in a comprehensive rate setting process, and simply sets the stage for subsequent comment and input by the DA membership. This option would pre-maturely preclude the ability to set fees at the resource level supported by the DA leadership. Since the City will be acting largely in a "pass-through" capacity, we do not recommend precluding the DA membership from the ability to set fees at levels that they support. CONCLUSION The City and the DA seek a smooth transition that preserves the DA's effectiveness in support of the Area while separating it from the constraints of City governance. This plan anticipates that the transition will be underway by the end of the 2007-08 fiscal year. ATTACHMENTS 1. Vicinity Map: Properties within the Downtown Parking and Business Improvement Area 2. Agreement with SLODA 3. Ordinance Amending Chapter 12.36 4. Legislative Draft of Municipal Code 12.36 5. Resolution of Intention 6. Survey and Outreach letters, Newsletters and FAQ ON FILE IN THE COUNCIL READING FILE 2007 San Luis Obispo Downtown Strategic Plan file:.T:\Downtown Association\DA CAR4-1-2008 FinalDocs ID 1 ATTACHMENT . r ®i ® I � I �� El -Lip I o � c 1 � � 1 ATTACHMENT 2 AGREEMENT THIS AGREEMENT is entered into as of the 1st day of July, 2008, between the SAN LUIS OBISPO DOWNTOWN ASSOCIATION, a 501(c)(6) non-profit corporation organized under the laws of the State of California, with a place of business at 1108 Garden Street, San Luis Obispo, California 93401 ("SLODA"), and the CITY OF SAN LUIS OBISPO, a municipal corporation ("City"). RECITALS: A. The City and SLODA have worked together for the benefit of business and tourism in the downtown area of San Luis Obispo since the inception of the Downtown Business Improvement Area in 1975; and B. The City and SLODA desire to continue their relationship for the betterment of tourism and business with amendments to the Downtown Business Improvement Area that will better reflect a new relationship between the two entities while retaining the Business Improvement,Area as allowed under State law; and C. The State of California Parking and Business Improvement Area Law of 1965 (Streets and Highways Code Sections 36000, et seq. ("the 1965 Law") allows the establishment of Parking and Business Improvement Areas, and permits the.City to levy assessments on businesses within that area, the proceeds of which are to be used for any of the following activities in accordance with the Code: 1. The acquisition, construction, or maintenance of parking facilities for the benefit of the area, including but not limited to payment of any debt service cost incurred by the City in connection therewith. 2. Decoration of any public place in the area. 3. Promotion of public events which are to take place on or in public places in the area. 4. Furnishing of music in any public place in the area. 5. The general promotion of retail trade activities in the area, including but not limited to costs of studies made to improve trade therein and payments to associations or individuals engaged in such promotion. D. On October 6, 1975, the City Council adopted, and subsequently amended on various occasions, Ordinance 649 (1975 Series) (collectively, "the Ordinance") creating the Downtown Parking and Business Improvement Area("DPBIA") in the downtown area of San Luis Obispo, and levying the authorized assessment on all businesses within the area. E. By Ordinance No. 649 and Ordinance No. 1334 (1998 Series), the City created the SLODA as an Advisory Body "...to advise and recommend to the council the methods and ways in which the revenues derived from the additional tax shall be ATTACHMENT-2. expended" and the SLODA has since existed as an advisory body of the City to provide a program to promote business and tourism in the downtown area of San Luis Obispo. F. In recent years, the SLODA has desired to expand services to its members in a manner that is constrained by its status as a.City advisory body and SLODA's status as an advisory body has presented operational ambiguities that both the City and the SLODA have sought to address through the joint pursuit of a change in the SLODA's status. G. The SLODA and the City have determined that establishing the SLODA as an independent, non-profit entity, with which the City may contract to provide services to the members of the DPBIA and to administer the assessment collected for that purpose, presents the most desirable operational structure. H. The SLODA has established itself as a 501(c)(6) and wishes to enter into this contract with the City to provide agreed upon services to the DPBIA members recognizing that neither the City, nor any of its officers or employees will have any control over the conduct of SLODA or any of its employees, except as to oversight and administration of the Agreement herein, and that the SLODA will expressly identify itself, its officers, agents, servants or employees, as a separate and distinct independent contractor, no longer an arm of the City. 1. Having determined that promotional activities to benefit business and tourism activities in the downtown area of San Luis Obispo are an appropriate use of DPB1A assessment proceeds, since such activities are expected to maintain and increase revenues derived by the City from the downtown area, and to preserve and enhance the unique character of the downtown to for the special benefit of downtown area businesses, and further having determined that SLODA is able to conduct such promotional activities, the City Council desires to contract with SLODA to conduct promotional activities in the downtown area of San Luis Obispo. NOW THEREFORE,THE PARTIES AGREE as follows: 1. Before this agreement becomes effective, SLODA will be duly established as a 501(c)(6)non-profit corporation,.with documented legal status and ability to enter into and perform this Agreement. 2. Effective June 30, 2008, all employment relationships between the City and Downtown Association staff shall be terminated and the City shall have no further obligations as employer of said staff. Prior to June 30, 2008, the Downtown Association Administrator shall ensure that she and any staff members who are employees of the City have contacted the City's Human Resources Department and said staff shall coordinate with the Human Resources Department to effectuate their voluntary terminations from City employment in accordance with applicable law, City procedures, and the terms of their contracts, if any. � - 13 ATTACHMENT2 3. Scope of Services. SLODA will conduct promotional activities to benefit business and tourism activities in the downtown area of San Luis Obispo more specifically set forth in the SLODA Scope of Services, attached hereto as Exhibit A and incorporated as is fully set forth herein, as limited by State law and the Ordinance, and subject to any modifications approved in writing by the City Administrative Officer ("CAO"). The Scope of Services shall be reviewed at least annually by Council, no later than May 15 of each year and may be amended by mutual consent of the parties after approval by the City Council. The CAO is hereby authorized to approve periodic amendments to the Scope of Services without further consent by Council to the extent that any such amendments do not result in the elimination of required Special Events, as set forth in Exhibit A. 4. Financial Reporting. SLODA will prepare and file with City, consistent with City policy, quarterly financial reports within 60 days after the end of the quarter showing qualifying expenditures made by SLODA and shall, upon request by City, produce supporting invoices, receipts, vouchers and statements showing how the DPBIA revenues have been expended consistent with this Agreement. Such financial reports shall include a line-item schedule which matches expenditures with specific, budgeted amounts and activities. To the extent that funds are expended or activities conducted pursuant to a subcontract as set forth in paragraph 13 of this agreement, SLODA shall include such information in its reports and certify its accuracy. The reports will be filed with the City Finance Director consistent with the City's financial reporting policies and practices, and as reasonably requested by the Finance Director. In addition to interim quarterly reports, the SLODA shall contract with an independent certified public accountant to prepare an annual audit of the SLODA financial operations related to qualifying revenues and expenses. The audit shall be conducted in accordance with auditing standards generally accepted in the United States. The goal of the audit shall be to provide an opinion that the SLODA financial statements present fairly, in all material respects, the financial position and changes in financial condition of the qualifying financial operations of the SLODA, in conformity with accounting principles generally accepted in the United States. The SLODA fiscal year shall be July 1 to June 30; and the audit shall be completed and submitted to the City's Finance Director within 180 days after fiscal year end. 5. Quarterly Activity Reports. At the time the interim quarterly financial reports are filed, SLODA will also file with the CAO a report of the activities of SLODA and its subcontractors and the respective accomplishments of each during the period specified in the financial report. 6. Carryover Funds. SLODA may accrue a carry-over account of funds paid by the City to SLODA, but not expended by SLODA, provided that SLODA files with the City a declaration, which specifically sets forth the planned use of such funds. The amount of carryover funds will be added to the Agreement amount set forth in any ATTACHMENTZ funding agreements for succeeding fiscal years, provided that these funds must be specifically allocated to program activities of any budget proposal submitted for such funding agreement. 7. Term. The initial term of this Agreement will commence upon its execution and will terminate on June 30, 2009. The term may be extended on a year-to-year basis upon annual approval of the Agreement by the City Council, The City and SLODA may terminate this Agreement and any rights, duties and liabilities accruing in this Agreement at any time by giving written notice of election to terminate to the other party at least thirty (30)days prior to the end of the fiscal year. 8. Funding Restrictions. The parties acknowledge that activities within the Scope of Services shall be funded by DPBIA funds and that all monies allocated by the City shall be subject to the restrictions imposed on DPBIA monies by the Ordinance and State law.. 9. Limited Use of DPB1A Funds. SLODA will use none of the funds it receives from this Agreement for any purpose not enumerated in the Ordinance, including but not limited to, any expense (including administration and overhead) in support of a SLODA Political Action Committee or any other political entity or activity. The City recognizes that the SLODA may engage in such activities on behalf of its members, independent of its contract with the City and does not-attempt through this Agreement to limit those activities, so long as such activities do not utilize DPBIA funds. 10. Accounting for DPB1A Assessments. DPBIA assessment money may be used to finance fund-raising activities intended to generate additional revenue for use by the SLODA. However, the sum of all assessment money used for this purpose shall be accounted for and proceeds from the fund-raiser equal to that sum shall be used for purposes stated in the Ordinance and conforming to the purposes of the assessment as defined by State law. Further, such use of DPBIA funds shall be specifically described in the periodic reports described in paragraph 2 of this Agreement. 11. City Support for SLODA Activities. The City will continue to provide staff support and services in accordance with the SLODA Scope of Services attached hereto as Exhibit A, at no additional cost to the SLODA. However, it is agreed that SLODA will reimburse City for all costs incurred by City in providing services during the term of this Agreement relating to other SLODA events or promotional services. These costs will be determined and certified in accordance with City policies applicable to other non-profit organizations and City will provide SLODA with invoices for such services, which will be due and payable by SLODA consistent with standard City policies and practices. 12. Transition Plan. The City has historically provided certain services to the SLODA, as an advisory body of the City, responsibility for which will ultimately be assumed by the SLODA. However, the parties agree that there are certain services and responsibilities the transfer of which will require additional time after the change in status to accomplish. In order to provide for the orderly transition of said services and ATTACHMENT. responsibilities from the City to the SLODA, the parties hereby agree to the temporary allocation of those certain services and responsibilities as set forth in the Transition Plan, attached hereto as Exhibit B and incorporated by this reference as if fully set forth herein. 13. Monthly Remittance of DPBIA Funds to the SLODA. The City will cause to be paid to SLODA the total amount of DPBIA funds collected by the City during each month within thirty (30) days of the end of the month. 14. City Staff Rights to Attend SLODA Board Meetings. SLODA shall notify the CAO of the meeting dates of each meeting of the Board of Directors of SLODA, and the CAO or his/her appointed representative shall have the right to attend all meetings of the Board of Directors. 15. Independence of SLODA. Neither the City nor any of its officers or employees will have any control over the conduct of SLODA or any of its employees, except as provided above, and SLODA expressly warrants not in any manner or at any time to represent that its officers, agents, servants or employees are in any manner the officers, agents, servants or employees of the City, it being distinctly understood that SLODA is and at all times will remain as to the City, an independent contractor, and the obligations of SLODA to the City is solely as prescribed by this Agreement. 16. Assignment. This Agreement contemplates that SLODA will render special services which it is uniquely able to provide, and it is recognized by the parties that an inducement to City for entering into this Agreement was, and is, the ability of SLODA to render these special services. Neither this Agreement nor any interest in this Agreement may be assigned by SLODA, except that SLODA may, on written consent of the CAO or his designee, obtained in advance, assign any moneys due, or to become due, SLODA for purposes consistent with this Agreement. SLODA agrees not to subcontract any portion of the performance contemplated and provided for in this Agreement, except that SLODA may enter into subcontracts for the sole purpose of carrying out promotional activities within the scope of the Ordinance with the consent of City. Nothing contained in this Agreement is intended to or will be construed as preventing SLODA from employing or hiring as many employees as it may deem necessary for the proper and efficient execution of this Agreement. 17. Insurance. SLODA shall obtain and maintain insurance as set forth in Exhibit C hereto, the requirements of which are incorporated herein. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided or canceled by either party except after thirty (30) days'prior written notice to City, and shall be primary and not contributing to any other insurance or self-insurance maintained by City. SLODA shall deliver to City certificates of insurance and original endorsements for approval as to sufficiency and form prior to the start of performance hereunder. The certificate and endorsements for each insurance policy shall contain the original signature of a person authorized by that insurer to bind coverage on its behalf. "Claims made" policies of insurance are not acceptable unless the City Risk Manager determines that ATTACHMENT 21 "occurrence" policies are not available in the market for the risk being insured. if a "claims made" policy is accepted,it must provide for an extended reporting period of not less than one hundred eighty (180) days. Such insurance as required herein shall not be deemed to limit SLODA's liability relating to performance under this Agreement. City reserves the right to require complete certified copies of all said policies at any time. Any modification or waiver of the insurance requirements herein shall only be made with the approval of the City Risk Manager. The procuring of insurance shall not be construed as a limitation on liability or as full performance of the indemnification provisions of this Agreement. To the extent that SLODA subcontracts certain activities pursuant to paragraph 13 of this Agreement, SLODA may comply with the requirements of this paragraph 14 by providing certificates of insurance naming SLODA and the City of San Luis Obispo as separate additional insureds under the subcontractor's insurance, providing that the subcontractor's insurance meets or exceeds the insurance requirements of this paragraph 14, all subject to the approval of the Risk Manager. 18. Hold Harmless and Indemnification: SLODA shall protect, defend, indemnify and hold City, its officials, employees, and agents(collectively in this Section referred to as "City")harmless from and against any and all claims, demands, causes of action, losses, damages, and liabilities, whether or not reduced to judgment, which may be asserted against City arising from or attributable to or caused directly or indirectly by SLODA, SLODA's employees or agents in the performance of work under this Agreement, or any alleged negligent or intentional act, omission or misrepresentation by SLODA, SLODA's employees or agents, which act, omission or misrepresentation is connected in any way with performance of work under this Agreement. If it is necessary for purposes of resisting, adjusting, compromising, settling, or defending any claim, demand, cause of action, loss, damage, or liability, or of enforcing this provision, for City to incur or to pay any expense or cost, including attorney's fees or court costs, SLODA agrees to and shall reimburse City within a reasonable time. SLODA shall give City notice of any claim, demand, cause of action, loss, damage or liability within ten (10) calendar days. 19. Notice. Any notices to be given under this Agreement, or otherwise, may be given by enclosing the same in a sealed envelope, addressed to the party intended to receive the same, at its address and by depositing the same in the U. S. Postal Service as regular mail, postage prepaid. When so given, notice will be effective from the time of mailing of the notice. For these purposes, unless otherwise provided in writing, the address of the City and the proper person to receive any notices on its behalf is the CAO, 990 Palm Street, San Luis Obispo and the address of the SLODA is 1108 Garden Street, Suite 210, San Luis Obispo, California 93401. i ATTA lH®NAGNT`L. EXHIBIT A SCOPE OF SERVICES SPECIAL EVENTS: The events and/or activities set forth below are Special Events the continuation of which the City considers integral to the fulfillment of SLODA's obligations under the Agreement. As such, the City agrees to continue to provide, with no additional cost to be incurred by SLODA, the enumerated municipal services that have traditionally been provided to the SLODA in conjunction with the events/activities as set forth below and the SLODA shall continue to provide the following Special Events to the Downtown: A. Holiday Activities B. Concerts in the Plaza C. Thursday Night Promotions City services in support of the above events have traditionally included the following, which will continue uninterrupted, notwithstanding the change in SLODA status: 1. Public safety support at levels determined appropriate by the City, including holiday parade escort. 2. Placement and removal of street barricades and coordination of street closures for holiday activities and Thursday Night Promotions. 3. Placement and removal of City-owned portable restrooms for Thursday Night.Promotions. 4. Banner placement and advertising at 50% of standard City fees. (Note: SLODA shall retain its priority position with regard to the placement of street banners that promote activities that benefit tourism and business in the district, in addition to the Special Events above, within the scope of the Agreement, but shall be charged fees consistent with City policy for the placement of such banners) 5. Special Events Permit processing at 50% of standard City fees 6.. Street clean-up following Special Events 7. Provision of meter tags for placement by SLODA for Thursday Night Promotions 8. Holiday tree placement and removal 9. Free rental of Mission Plaza.for placement of Santa's House and carousel and for Concerts in the Plaza. ONGOING SERVICES: In addition to the Special Events set forth above, SLODA shall provide, as needed, the following Ongoing Services to the Downtown. The costs of any City services required or requested in support of these Ongoing Services shall be allocated to the SLODA consistent with City policies applicable to other not for profit entities and pursuant to the terms of the Agreement. 1. Parking/Transportation a. Distribute employee and customer parking brochures to targeted groups. b. Work closely with City staff to analyze and make recommendations to the City Council on ways to address employee parking issues. c. Work closely with City staff on the development of downtown construction public information programs. 2. Programming in Plaza a. Continue Concerts in the Plaza music series during the summer months b. Explore other event ideas such as movies, art fairs, poetry, etc. 3. Downtown Maintenance a. Continue to cooperate with Public Works Department staff to determine sidewalk scrubbing schedule. b. Disseminate cleanliness and safety information to members through publications and presentations. c. Work with City staff to get trash and recycling receptacles cleaned. d. Continue Downtown Forester program in assisting with tree maintenance. 4. Economic Development. a. Work closely with City staff when developing marketing strategies for retail services and continue to implement Strategic Plan goals to maintain downtown retail health. b. Continue to facilitate business recruitment and retention in the Downtown. c. Continue to coordinate with City and Chamber of Commerce to get information to visitors on Downtown retail/shopping opportunities. d. Strengthen collaboration efforts with the Chamber of Commerce and other business and visitor groups to increase effectiveness of local and regional marketing. e. Get word out to downtown retailers and restaurants when conferences/events are in town and encourage them to do direct marketing/outreach. 5. Organizational Capacity Keep the City apprised of the status of SLODA's long term strategy for the fiscal sustainability of the SLODA, including strategies to: a. Maintain economic vitality and independence of the organization - n ATTACHMENT 2 b. Identify options for development of other funding sources to be considered, pursued, and/or secured to supplement the organization's activities; c. Evaluate internal organization, and committee structure, and allocation of resources to identify changes needed to most effectively implement SLODA's mission and goals. - ATTACHMENTZ EXHIBIT B TRANSITION PLAN This Plan shall constitute the agreement of the City and SLODA with respect to allocation of costs and responsibilities associated with services that historically have been provided by the City to the SLODA, as an advisory body of the City, at no cost to the SLODA. Existim Assets in Possession of SLODA: SLODA maintains certain assets that have been acquired during the course of its existence as an advisory body of the City. The City hereby acknowledges that such assets are deemed to have been purchased utilizing non-public funds and the City claims no right or title to any assets currently in the possession of the SLODA, including but not limited to office equipment and furniture, vehicles, and interests in real property. SLODA acknowledges that the City currently does not have and will not assume any financial responsibility or liability for any present or subsequently acquired assets of the SLODA. Additionally, the City currently maintains financial accounts for the SLODA. Upon execution of this Agreement, any sums remaining to the credit of the SLODA will be transferred to SLODA to be used for purposes consistent with this Agreement and will be thereafter deposited in accounts to be separately established and maintained by the SLODA 501 (c )(6). Santa's House: The City agrees to continue to store Santa's House at the Corporation Yard until alternate storage arrangements can be obtained, but not later than December 31, 2008. City also agrees to provide a police escort for the transportation of Santa's house from the designated storage area to Mission Plaza. SLODA agrees toholdthe city harmless from and against any liability resulting from loss or damage to Santa's House during such time as it remains in the City's custody. Stage and Chairs: City agrees to maintain the current storage of and accessibility to SLODA's stage through the completion of the final concert of the 2008 summer concert season at no additional charge to the SLODA. Thereafter, SLODA will make alternate storage arrangements and the City will have no further obligation with regard to the stage. The City Parks and Recreation Department(Parks &Rec) currently maintains possession of numerous chairs that were purchased for event use by both Parks&Rec and SLODA. The purchase was funded equally from Parks &Rec and SLODA budgets, and the SLODA additionally funded the purchase of chair dollies to transport the chairs. The - ' - ATTACHMENTY- City and the SLODA agree that possession and ownership of the chairs will remain with the City upon SLODA's non-profit transition. However, the City will make the chairs available for SLODA's use for events and activities within the scope of this Agreement. Should the chairs and/or dollies be lost, damaged or destroyed, neither party shall have any obligation to the other with regard to repair or replacement. Electrical Conduit: Higuera Street The SLODA partially funded the installation of electrical conduit in Higuera Street to accommodate the potential for future electrical connections for use by Thursday Night Promotions vendors. A further capital project will be required to facilitate such connections. The City and SLODA have agreed to work toward accomplishing the connections over the initial term of the Agreement. However, SLODA recognizes that the completion of such a project will require additional funding and the parties agree that the cost allocation relating to the provision of such connections and post-installation maintenance issues, such as electrical service costs, are subject to further negotiation. � - aa _ ATTACHMENT 2 IN WITNESS WHEREOF, the parties hereto have executed this Agreement this of 12008. SAN LUIS OBISPO DOWNTOWN ASSOCIATION, a 501 (c)(6) Corporation By: CITY OF SAN LUIS OBISPO By: David F. Romero Mayor APPROVED AS TO FORM: By: Jo an P. Lowell City Attorney - ATTACHMENT ORDINANCE NO. (2008 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING CHAPTER 1236 OF THE MUNICIPAL CODE TO FACILITATE RESTRUCTURING OF THE DOWNTOWN ASSOCIATION WHEREAS, both the current Downtown Association Advisory Board and the City have determined that the Downtown Parking and Business Improvement Area could be better administered by means of a contractual agreement between the City and a non-profit entity created for the purpose of administering the Area for the benefit of its members; and WHEREAS, the current Downtown Association Advisory Board has undertaken to form a 501(c )(6) non-profit entity; and WHEREAS, the City Council finds that the Downtown Association, constituted as a non-profit entity, would be uniquely situated to serve the needs of the Downtown Association membership through a contract with the City; and WHEREAS, the Downtown Association Advisory Board has agreed to enter into an agreement defining services to be provided to the membership utilizing funds from the Area assessment; WHEREAS, pursuant to Section 12.36.090 of the Municipal Code, the City Council is authorized to enter into agreements with non-profit entities and authorize such groups or organizations to expend Area revenues in accordance with City budgetary and accounting policies. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 12.36.080 (Advisory board -Appointment - Terms) of Chapter 12.36 (Downtown Parking and Business Improvement Area) of Title 12 (Streets, Sidewalks and Public Places) of the San Luis Obispo Municipal Code is hereby repealed, effective at such time after the effective date of this Ordinance that the San Luis Obispo Downtown Association obtains legal status as a non-profit entity, as evidenced by appropriate certification from the Internal Revenue Service. SECTION 2. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the day of 2008, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the day of 2008, on the following roll call vote: IL-1 Ordinance No. (2008 Series) ATTACHMENT 3 Page 2 AYES: NOES: ABSENT: Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: 6oz;Z-Low, ll, City Attorney 1 ATTACHMENT Chapter 12.36 DOWNTOWN PARKING AND BUSINESS IMPROVEMENT AREA Sections: 12.36.010 Establishment. 12.36.020 Boundaries. 12.36.030 Tax—Imposed. 12.36.040 Tax—Amount. 12.36.050 Tax—Use of revenues. 12.36.060 Tax—Collection. 12.36.070 Findings and determinations. 12.36.080 Repealed. . 12.36.090 Council's authority to enter into annual agreements for revenue expenditures. 12.36.100 Exemptions—Contributions from exempt persons welcome. 12.36.110 Effective date. 1236.010 Establishment. There is hereby created and established the downtown parking and business improvement area. (Prior code § 6101(a)) 12.36.020 Boundaries. The boundaries of the area are generally shown on Exhibit A map.attached to the ordinance codified in this chapter and on file in the office of the city clerk, and are more specifically described as follows: From Santa Rosa Street along Palm Street to Broad Street, Broad to Monterey, Monterey to Nipomo, Nipomo to San Luis Creek, San Luis Creek to a point where Beach Street would intersect, from this intersection point to Beach and Marsh, Marsh to Nipomo, Nipomo to Pacific, Pacific to Santa Rosa, Santa Rosa to Palm. The area shall include the businesses fronting on both sides of the boundary streets listed in the preceding paragraph, and at all four corners of the intersections of the boundary streets listed in the preceding paragraph, except that it shall not include the northwesterly corner of Monterey and Nipomo Streets. (Prior code § 6101(b)) 12.36.030 Tax—Imposed. Each and every,business in the downtown parking and business improvement area shall be subject to, and shall pay, a new, separate and additional tax to support the activities of the area, except as otherwise provided in Section 12.36.100. (Prior code § 6101(c)) ATTACHMENT 12.36.040 Tax—Amount. The amount of additional tax to be paid by each business annually shall be one hundred percent of the business license taxes levied upon the business by the city. (Prior code § 6101(d)) 12.36.050 Tax—Use of revenues. The only uses for which the tax revenue from the area shall be expended are: A. The acquisition, construction or maintenance of parking facilities for the benefit of the area; provided, that the facilities shall not impair the city's ability to produce revenues for the payment of parking district No. 1 obligations; B. Decoration of any public place in the area; C. Promotion of public events which are to take place on or in public places in the area; D. Furnishing of approved music in any public place in the area; E. The general promotion of retail trade activities in the area. (Prior code § 6101(e)) 12.36.060 Tax—Collection. The collection of the additional tax imposed in this chapter shall be made at the same time and in the same manner as any other city business license tax; provided, however; that the tax imposed herein for the remaining portion of the 1975-76 fiscal year shall be due and payable in full within fifteen days after the city mails notice of the amount of tax to be paid for said fiscal year. (Prior code § 6101(f)) 12.36.070 Findings and determinations. This council finds and determines that parking and other deficiencies are so general in the downtown section of the city, and that the size of the new area is so small, that each business in the area will benefit from expenditures for parking facilities substantially in proportion to the amount of additional taxes levied upon all businesses. (Streets and Highways Code § 36062.) (Prior code § 6101(g)) 12.36.080 Repealed. AdViWFY bOaF I A ln3ent T-eFM. shall sen,e fer-a period 4 :.7 . ed that five f the ffst m ,.. ,... .,ere .lbente 'sha]1 Y~ e that any fnefaber-may be B 4e of f:. Faeffibefs will be appointed by the fi 0 downtewn ti f 4 .1 besifiesses 'thin the ent ffea. This ATTACHMENT eemnaittee will prepffe a list of twenty twe fienainees and hold a ballet within the area, m ii1CSpZ1pSIrJII17SiIITthe SIr[ppwS'ivGoiTiTl6the highest vete woRxo xxyxax ••:a ..........n 'Ali!! be &PP8j;#1-ad- tA- thP-, h-A--Ar-d 13)'the eetineii. The heafd's first efdef ef business shall he to establish 1. 1 F.. its epvraavirsmbject to appr-eval of the bylaws by the e8uneil.. - advisei�,bear-El shafl be named the Safi Luis Obispe Dewatown Asseei e , Ew , prief eod&4 12.36.090 Council's authority to enter into annual agreements for revenue expenditures. The council shall have authority to enter into annual agreements with nonprofit business promotional groups or organizations serving the area which authorize the groups or organizations to expend area.revenues in accordance with city budgetary and accounting procedures. (Prior code § 6101(i)) 12.36.100 Exemptions—Contributions from exempt persons welcome. Any business, person or institution in the area which is exempt from the payment of the business license tax of the city by reason of the provisions of the United States or California State Constitutions is not to be taxed, but may make a voluntary contribution to the city to be expended only for authorized expenditures of the area. (Prior code § 61010)) 12.36.110 Effective date. The additional tax imposed by this chapter shall become effective on December 1, 1975. (Prior code § 6101(k)) l - � \J RESOLUTION NO. (2008 Series) ATTACHMENTS A RESOLUTION OF INTENTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO TO INCREASE THE DOWNTOWN BUSINESS IMPROVEMENT AREA ASSESSMENT WHEREAS, the Downtown Business Improvement Area was formed in 1975 pursuant to the Parking and Business Improvement Area Law and City Council Resolution No. 2879 (1975 Series), and the Downtown Association was established as an Advisory Board of the City of San Luis Obispo by Ordinance No. 649 (1975 Series) as amended by Ordinance No. 1334 (1998 Series) for the purpose of administering the Area for the benefit of its membership; and WHEREAS, member businesses in the Downtown Business Improvement Area("Area") have been charged an assessment to fund the activities of the Downtown Association for the benefit of those member businesses since 1975; and WHEREAS, the amount of the assessment has remained unchanged since its adoption in 1975; and WHEREAS, the Downtown Association is in the process of forming an independent non-profit entity with which the City intends to contract for the delivery of services to benefit members of the Area; and WHEREAS, the Downtown Association has determined that an increase in the assessment amount is necessary to better serve the needs of its membership; and WHEREAS, the City supports the efforts of the Downtown Association and wishes to facilitate its resource needs so that the Downtown Association may better serve its membership by providing services as set forth in Section 3 below. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. It is the City's intention to increase the assessment to be collected from businesses within the Area for the fiscal year 2008-09 as further described in Section 4. SECTION 2. The area within which the assessments are to be collected was established by Ordinance No. 649 and has boundaries defined as follows: From Santa Rosa Street along Palm Street to Broad Street, Broad to Monterey, Monterey to Nipomo, Nipomo to San Luis Creek, San Luis Creek to a point where Beach Street would intersect, from this intersection point to Beach and Marsh, Marsh to Nipomo; Nipomo to Pacific, Pacific to Santa Rosa, Santa Rosa to Palm. The area shall include the businesses fronting on both sides of the boundary streets listed above, and at all four corners of the intersections of said boundary street listed above, except that it shall not include the northwesterly comer of Monterey and Nipomo.Streets. R ` � Resolution No. (2008 Series) ATTACHMENTS Page 2 SECTION 3. Pursuant to Ordinance No. 649 (1975 Series), the assessment revenues are to be used exclusively for the following activities: (1) Acquisition, construction or maintenance of parking facilities for the benefit of the Area, provided that said facilities shall not impair the City's ability to produce revenues for the payment of Parking District No. 1 obligations. (2)Decoration of any public place in the Area. (3) Promotion of public events which are to take place on or in public places in the Area. (4)Furnishing of approved music in any public place in the Area. (5) General promotion of retail trade activities in the Area. SECTION 4. There is a report on file with the City Clerk providing a full and detailed description of the improvements and activities to be funded from the assessment and the boundaries of the Area. The City is proposing to increase the annual assessment levied upon Area businesses from 0.00050 of gross receipts (for example, $50 per $100,000) to 0.00055 of gross receipts (for example, $55 per $100,000); and to increase the annual minimum assessment from $25 to $150. The assessment proposed herein shall continue to be collected at the same time and in the same manner as the City's business tax. It is estimated that the proposed assessment will raise $229,000 in 2008-09 compared with estimated revenues from the current assessment of $168,000 in 2007-08. For additional information about the proposed assessment, interested persons should contact: Deborah Cash,Downtown Association Administrator 1108 Garden Street, Suite 210 Post Office Box 1402 San Luis Obispo, CA 93406 Phone: 805.541.0286 Fax: 805.781.2647 Email: dcash@downtownslo.com SECTION 5. Pursuant to California Government Code, Section 54594.6, the Council will hold a public meeting on May 6, 2008 at 5:45 PM at which it shall allow public testimony regarding the proposed increased assessment and, thereafter, will conduct a noticed public hearing on May 20, 2008 at 7:00 PM prior to taking action on the proposed increase to the assessment. Both meetings will be held at the City Council Chambers, 990 Palm Street, San Luis Obispo, CA, 93401. If the Council approves the proposed assessment at the May 20, 2008 public hearing, the ordinance amending the assessment will be introduced at that time; and final Council adoption of the ordinance will be scheduled for June 3, 2008. If final adoption is approved at that time, the new assessment will become effective on July 3, 2008. Resolution No. (2008 Series) ATTACHMENT Page 3 SECTION 6. Written and oral protests to the proposed increase may be made by owners of businesses in the Area at or before the time set for public hearing, pursuant to Section 5, above. The form and manner of protests shall comply with California Government Code, Sections 36524 and 36525. SECTION 7. The City Clerk shall publish joint notice of both the public meeting and the public hearing, as set forth in Section 5 above, beginning at least 45 days prior to the public hearing, by placing a display advertisement of this Resolution of at least one-eighth page in a newspaper of general circulation for three weeks pursuant to Government Code, Section 6063 and by mailing of a complete copy of the Resolution of Intention by first-class mail to each business owner in the area within seven days of the City Council's adoption of the Resolution of Intention. The City Clerk shall also provide notice by a first-class mailing to those interested parties who have filed a written request with the City for mailed notice of public meetings or hearings on new or increased general taxes. Upon motion of , seconded by , and on the following vote: AYES: NOES: ABSENT: the foregoing resolution was adopted on April 1, 2008. Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: Jo athan well, City Attorney � - 3 I A o'TACHMENT V FAQs about DA Restructuring Why is the Downtown Association seeking to become independent from the City? (1) To provide more focused attention on members'needs. With an independent Downtown Association, members will be able to receive the benefit of representation --without constraints._In matters of politics, personnel,financial decision-making and other areas subject to City regulations,the Downtown Association can formulate positions or make decisions independently, effectively and legally. (2) To achieve an independent.status. The Downtown Association was formed in 1975 after Council adopted an ordinance allowing assessments of businesses in the Downtown area for the purposes of promotion, parking and design. The Association . (then called the BIA) was the formal entity that would receive the BID (business improvement district)funds and expend them as determined by the entity's Board of Directors. Operating in this manner for more than 30 years,the Downtown Association was designated as a City advisory body and as such has enjoyed the benefit of many City provided services. As the demand for these services increased and the Downtown Association's direction became more diverse in response to its members'needs,a closer look at the Association's status was necessary. In fact,the Down- town Association does not meet many of the"tests"of an advisory body and this.creates issues for both the City and the Association.A recommendation was made in the recently adopted Strategic Plan Update that the Downtown Association, now ready to stand on its own,should form as a non-profit to do so. The rela- tionship with the City would continue under contractual basis whereby Council would assign BID funds to the Downtown Association and the Downtown Association would be subject to reporting requirements. How will this happen? The ball is already rolling. The Downtown Association has filed articles of incorporation with the Secretary of State and is awaiting receipt of an IRS tax identification number. In addition, regular meetings are being held with City department representatives to determine the most positive track of action for dissolving the current relationship and forming a new one. Who is taking the lead role? Both parties. Both the City and the Downtown Association have much at stake in this transition. The City currently supplies a great deal of support services—both direct and indirect—to the Downtown Association at reduced—or no—cost. In return,the City receives the benefit of a well-managed commercial sales tax district;as well,the Downtown Association acts as a clearinghouse for the concerns of the members of that district. Representatives of each entity will mutually decide how to maintain the benefits of the relationship with the least amount of disruption. Will there be additional costs for the Downtown Association to assume its own operation? The DA will need to pay its fair share. -3a A separation from the City will require that the Downtown Association assume responsibility for its own basic services such as legal,accounting, human resources and finance. Moreover,during the restructuring, other costs for additional services such as full-time Downtown security are being considered. The City will continue to provide a level of services for contracted activities. Could this mean a fee change for mwnbers? ATTACHMENT(p- Yes. The current fee structure was established in 1975 and has never increased. However,the level of services has increased dramatically. To adjust fees into today's dollars,to cover costs and continue to provide a high level of service to members,the Board of Directors has voted to increase the-assessment. The current fee is $50 per$100,000 gross receipts with a $25 minimum. The new fee would increase by$5 to $55 per$100,000 gross receipts with a $150 minimum. At the minimum level,this fee represents a cost to members of$12.50 per month. At the high end;someone who's paying $500 based on gross receipts of$1,000,000 will now pay$550,a fifty-dollar increase. What do I get for my money? A lot! The Board has developed an educational campaign that covers the benefits and services members receive, too many to list here. Consult your"Apple A Day"Brochure,visit the website,obtain a free DVD of the Restructuring presentation or call the office for information on value received. I'm,not a retailer. How does the Downtown Association serve me? In ways you may not be aware of: On some level,every member benefits as a result of Association activities. The Downtown Association's mission is to provide for the"economic,social,cultural and environmental vitality and beautification of Downtown" If you are a property owner you enjoy increased occupancy rates, rent stability, increased property values and a better image. If you are a professional service business,you benefit through having an attractive setting for your tenants and clients,a place to work that is lively and well cared-for,a district where a healthy economy creates a new market and many services are conveniently located nearby. Oh, and Main Street also cites"Pride"as a benefit. What is the timeline for the process? Starting now, to achieve independency by July 1,2008. Starting with the Quarterly Breakfast,members will hear about proposed changes;the item will be discussed again at the Board of Directors meeting on February 12. During February and March,education efforts will continue and a final recommendation will be presented to the City Council on April 1. Why is this the best possible option? It makes the mostsense. The Downtown Association is not unique in this evolutionary process. BIDS across the nation have found,after years in operation,that their originally formed entity has outgrown its ability to work within government framework. In fact,an independent downtown is the most common form of BID in the state. It is best believed,and recommended in the Strategic Plan,that in order to provide the services and representation to the membership that it can, restructuring is the most feasible approach to maintain viability both for Downtown (the place) and the Downtown Association (the people). t -33 i Please Return by February 22 ATTACHMENT (p We want to connect with you! FAX to 781-2647 Or bring/mail to 1108 Garden St. Suite 210 Your support of a continued successful Downtown is important. By participating in the restructuring process of the Downtown Association, we can work together to improve operations and programs. Please take a moment to review the attached documents and return your opinions to us. Yes No (If unsure, please indicate) ❑ ❑ I am a business owner/manager in the Downtown Association boundaries ❑ ❑ I am familiar with the programs/activities of the Downtown Association ❑ ❑ I have participated in a new member orientation ❑ ❑ I missed the above, would like to be contacted for a member orientation ❑ ❑ I am interested in serving on a committee or running for the Board ❑ ❑ I believe the Downtown Association has a strong plan for the future ❑ ❑ I participate in member opportunities: sponsorships, volunteer, contests ❑ ❑ I participate in Thursday Night Farmers Market (circle) booth open later hours offer electricity ❑ ❑ I have a business plan ❑ ❑ I have a website ❑ ❑ I receive and read the Downtown Association's newsletters ❑ ❑ I support an independent Downtown Association ❑ ❑ I would like more information about restructuring ❑ ❑ I believe the Board and staff of the Downtown Association are working to create a strong Downtown where my business can thrive ❑ ❑ I support the Board of Directors' recommendation for fee restructuring ($5 increase on $100,000 gross receipts, $150 minimum) My recommendation for a stronger Downtown is: Please contact me to provide more information or to discuss my concerns Name: Business: Phone: 1 - 34 I I ATTACHMENT � Downtown Association Survey Results 57 business owners (80%) support fee restructuring 10 business owners (14%) do not support fee restructuring 4 business owners (6%) are unsure � Don't Miss the upcoming Downtown Association ATTACHMENT Quarterly Breakfast San Luis Obispo A momin�gar theingof foodfri , ends and business associates, information and Fun Downtown Association Friday, October 5 7:30 AM Mother's Tavern Program Strategic Plan The City Council will 6e asked on Octo6er 2 to approve the recommendations in the 2007 updated Strategic Plan—including reformingthe Downtown Association as a not for profit. Find out what's in store for the Association—and Downtown's—future. Plein Air Festival This amazingly successful arts event continues to grow and attract visitors and artists from all over the country. Learn the secret to its success,what the Festival's all about and how you can pigea96ack on the excitement generated. Arts 06ispo Open Studios 5ince Octo6er is Arts Month,it's fittingto showcase yet another tried and true event featuring artists in their gallery settings around the Downtown and beyond,Open Studios. Support the arts in your community 63 targeting visitors who are also interested in shoppingand dining du ring their stay. Thursday Night Promotions Update It's 6een a year since a major overhaul of this long-standing event was undertaken. How's it doing`? we'll look back at this past year's accomplishments and honor a special volunteer. Project: Higuera, New Street Nice Extras WItH the project now well underway,we'll give a status report on progress and what to expect as construction winds down later in the month. RideShare TripLink Need a ride? Have a ride? This new we6 program is a free service to quickly connect you with others who are lookingto share the ride or 6ike commute. Lisa Quinn, Program Coordinator, shows us how it works and also how to calculate how much each trip you make every day costs-6oth monetarily and environmentally. Menu Egg Scramble with Cheese, Mushroom, Tomato and Cheese Egg Scramble, Bacon, Mother's Famous Breakfast Potatoes, Pancakes, Fresh Seasonal Fruit, coffee and fruit iuice RESERVATIONS REQUIRED BY OCTOBER Z. NO TICKET SALES AT THE DOOR. $15.00 Per Person — �(p ATTACHMENTU Don't Miss the upcoming Downtown Association Quarterly Breakfast J A morning gathering of food,friends and business associates, - information and fun San Luis Obispo Friday, February 1 7:30 AM Mother's Tavern Downtown Association Program The future is almost here! The Downtown Association is moving forward with its plan to restructure and become an independent or- ganization. What does this mean for the community,the Downtown and YOU? You'll want to learn why this process is important and necessary and what's in store for members. Forget to-carb,go Low Carbon! I I Rideshare is launching its newest campaign to improve the environment through lower uy carbon dioxide emissions. Lisa Quinn, Rideshare coordinator,talks about why we should take a diet from driving everyday and the benefits—including prizes—the.Low Carbon Diet program offers. Tour of California For the third year in a row,SLO has been chosen as one of the cities where All the race will stage. On Thursday, February 21, racers will end their ride from Seaside in a dramatic race to the finish in Downtown SLO.The Amgen Tour of TounfCalifornia California,America's most successful cycling race,is already becoming one of the nation's largest and most recognized sporting events. Get details of the event and be ready for the ever-growing crowds visiting Downtown for the Tour. Lights!Camera!Action! z One of the area's most revered annual events,The SLO International Film Festival, is nearly here. The 14th annual festival runs March 7- 16 and it's not too late to tie in to this fabulous promotional opportunity. Thousands of people will visit Downtown for films,events,educational opportunities,workshops—and they'll dine and shop while they're at it. See a sneak preview as well! Thursday Night Farmers Market goes silver Yes,it's been 25 years since the streets were closed and our"world famous"Thursday Night Promotions Farmers Market was born. Our presentation covers a history of the market, discusses how it's benefited Downtown and previews the special events planned for the r milestone anniversary. 9gA1�Rs vav ims vvuvv,ounvvvu Menu Egg Scramble with Cheese,Mushroom,Tomato and Cheese Egg Scramble, Bacon,Mother's Famous Break- eAT AC HMENT around D .-o' q ,;, San Luis Obispo Downtown Association Downtown Association Newsletter - October/November 2007 A Sm Council to consider changes for Downtown Association a_ Luis Obispo Downtown_ssoaatio_n on Tuesday, October 2, the City Council will hear a presentation by the Downtown Association on the $ '.. Strategic Plan Update, now in the works for nearly two years. Since the initial Plan was formulated in 2000, ti many changes have occurred both in the Downtown and beyond that affect the business environment. The 9/11 terrorist attacks changed tourism and the economy, an earthquake triggered an accelerated retrofit Sl schedule, development is underway at an unprecedented rate bringing housing and hotels and new busi- Q j :• ness, and the Downtown Association for the first time saw the need to stand independent from the City in M order to represent the concerns of its members. All of those situations culminated in not simply updating the Plan, but analyzing how the Association itself San Luis ObispoDowntown- should operate. Strategic gva+nea Pl� sta ASuinable Operating Plan The resultant recommendation is to reform the Downtown Association as a not for profit agency and contract For 2007 and BeyondUp&ftd War with the City to manage the Business Improvement District (BID) funds, essentially what it currently does. And,with this change,will come costs for the Association to pay for some services currently provided by the City. Revamping in this manner will likely necessitate reviewing BID fees as well,those fees having remained I the same since 1975. A copy of the Strategic Plan draft is available on the website and members are encouraged to view the goals and objectives set forth by con- sultant Jeff Eichenfield, Eichenfield and Associates, along with the Economic Activities Committee and the Board of Directors. Full narrative of both the Association's current and proposed status, along with detailed recommendations about the Association's activities is included. A new era for the Association, heralding increased service and representation for members, will begin once the Plan is adopted and imple- mented in 2008. around D Z, San Luis Obispo Downtown _< Association Downtown Association Newsletter - December 2007/January 2008 C DU,71ft®m,71M MomVaTolo The Downtown Association's Strategic Plan Update received Council approval in October, after nearly two years of study,member participa- tion and development. The process,while lengthy, proved worthwhile in that the issue of the Downtown Association's relationship with the- City was addressed in terms of how the two entities will work together—and apart—in the future. The recommendation that the Downtown Association separate from the City as an advisory body—a position that sometimes complicates the Association's ability to serve its members—has begun. An application is on file with the Secretary of State to establish the Downtown Association as a 501(c)6 non profit and should be in effect by the time the anticipated emancipation occurs in July,2008. You will be receiving information about how the change will occur and what, if any, effect members will experience. Meanwhile, discussions are being held to determine "who does what," and how the Downtown Association will apply BID funding under a contractual agreement. Stay tuned. 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Y,.�6 O. a -0 C C. c � "0 v ch 0 c u o E � mmLn « m o o >++; � s] 3 i o C N m 000 U' m > LA C w u 0 v m0oai3a`r v Q O O --- x ?- r� m s a f� *`r f A rTACHMENT 60 What ' s Up Around Downtown Z You'll see our campaign"Project: Higuera, New Street, Downtown, and all the issues we've faced in the past five or Nice Extras" kicking off this month on September 4. This so years,the Downtown Association may find itself assum- is one of those bite-the-bullet road construction situations ing a slightly different role with regard to its organizational where (some number of) people are inconvenienced for (some structure,allowing it more flexibility where its members' needs period of)time,then it passes and things go back to normal— are concerned. When important issues call for membership or even better than normal. What we hope to accomplish is to representation,the Downtown Association should be able (1) keep you,the general public updated on the project and in- to act accordingly without constraints.Just as Downtown is vite you to continue your trips to Downtown and (2)assist busi- ALexperiencing growing pains, so are we,and we see this as nesses in mitigating the impacts with signage,working with the Deboroh Cash, a period of adjustment before things go back to normal—or contractors, providing frequent and two-way communication CMSM, better than normal. and"just being there." Please show your favorite businesses Administrator This is a good opportunity to tell some of you newer you care by patronizing them as much as possible during this readers a little about the Downtown Association. People yone-and-one-half month project that will leave Higuera sometimes ask how they can join or if they want to come Street looking more beautiful than ever—we're especially excited about out to the Thursday Night Promotions Farmers Market, how they can the installation of six new pedestrian "old fashioned"street lamps. get the lower rate (the event is now open to non-members, a change e hoped you enjoyed Concerts in the Plaza this summer. It from previous policy), etc. Sorry,you can't"join"the Downtown was our biggest and best-est season ever and once people Association. "The Downtown" is a geographically defined assess- adjusted to the new bar system, it ran more smoothly and ment district, meaning if your business is located within its boundaries, productively than we could have hoped for. We are amazed at how you're automatically"in"and your double business license tax is your many"regulars"return week after week,year after year and how many membership fee. Those funds are used to pay for promotions, design newcomers think it's the greatest thing anywhere. We thank our bands, and parking programs of the Association for the benefit of the assessed sponsors and volunteers profusely,and we thank YOU for coming down members. This is a common type of operation in communities with and enjoying yourselves and visiting the many shops and restaurants established downtowns, to provide business and property owners with that now stay open later to serve the hordes of people streaming by. the ability to"get things done"as a group, be they fabulous promo- Louted oking ahead,we're anxious to see how a number of issues play tions, beautiful trees, advising Council on parking matters—we have a t including Downtown building heights, scheduled to be deliber- huge work plan of activities to keep Downtown bustling and humming. by Council this month and the adoption of the Downtown Please visit our website at www.downtownslo.com for more information Association's Strategic Plan Update. With all the changes anticipated or for opportunities to become involved) 6404b „ Ucq On the Cover: Work in progress...Downtown S10 will see a number of construction project over the next few years;most imminent,Project N!guera,Ne Street,Nice Extras,slated to begin September 4. See full page ad for more detaih. The Downtown Association appreciates your patience as your city's center transforms into a more beautiful,safe and vibrant commercial-- and residential!--district. Photo by Deborah Cash ` ATTACHMENT �P What ' s Up Around Downtown ? I If asked, I'd have to say(and have said before)October is watching the street, I saw people braving the noise and dust, my favorite month of the year. Three of my best friends, my their cars parked dutifully in the structures,walking and shop- mom and one of my sons were born in October and I love ping, eating and doing what visitors do. Bless you,friends, the fall weather(usually at its best around here), the food,the for saying, "so,what?" and enjoying Downtown regardless. I colors and the sense of impending fun soon to hit Downtown. do. October is when Downtown's favorite character, Pump- here're other matters you'll be hearing about. The Down- kin Paul, debuts. Hauling giant squash globes from town Association, after nearly two years of investigating his Evans Road ranch, pumpkin king Paul Rys delights the howzits and the whatzits of its future, decided to con- at the marvel expressed by kids of all ages who hug,climb Deborah Cash, tinue with the basics of its original strategic plan with a twist: upon and enjoy the 500 pound-plus feats of selective genetic CMSM, disengage from the City and become an independent not for engineering (NOT GMO!)whimsically arranged on Chorro Administrmor profit that contracts with the City to manage the district. This j Street(this is a great photo opportunity for the family[). Pump- path is lots cleaner and allows members the ability to have kin Paul is happy to share the secrets of squash success, and maybe a say in their future. The matter will be heard by the City Council on even some seeds. October 2 with anticipated implementation at the beginning of the Then, faster than your carved jack o'lantern can collapse,Octo- next fiscal year(July 1, 2008). We believe the change will benefit ber's over and holiday jingles bombard your brain at every turn. members, the City and the community at large—stay tuned for further The messages you hear sometimes are frankly annoying: "Let developments. it Snow,"for example seems so out of place when it's nearly 8t}de- ou may have read the City Council adopted guidelines for grees outside mid-November and when's the lost time you saw snow Yadvent increased building heights. We don't believe this signals the Downtown anyway?Take back October[ Enjoy a full month of special of Gotham City, rather allows for projects that would events at Farmers Market like Fire Prevention Night on the 11 th and benefit Downtown that wouldn't pencil out otherwise. And only a few Form City Night on the 18th followed by Pumpkins on Parade and the of those, at that. Moreover, watchdog groups like Cultural Heritage Hallowe'en costume contest, Hallowe'en Hoopla on Garden Street Committee and Planning Commish have lots to say before these and Downtown Trick or Treating. Also a good month to have one of projects moves forward. We were happy to see some flexibility where those yummy candy apples from Rocky Mountain Chocolate Factoryl older buildings are concerned—a leap of faith from our heritage pres- Yes, for a full 31 days, live October to the full! ervation standpoint. But as one Downtown business owner opined, "a But, it's not all fun and games just yet. Project: Higuera (rood crummy building built 100 years ago is now just a crummy old build- work and paving on Higuera Street) is, as construction goes, ing." It's true, old age doesn't imply historic value and such properties AARGH. For the moment. When road closure signs go up, shouldn't hold developers hostage to their age—Council should have heavy equipment moves in and the work begins, it's.so painful. But, the final call on historical merit. We believe that our commissions and On the Cover:A stroll along our Downtown's aeekside has a quaint feel...one webfooted*ftor thinks life Downtown h just ducky. Photo by Deborah Cash oc f w UD7 What ' s Up Around Downtown ? Council will do what's best for our town. e hope you enjoyed Concerts in the Plaza, it was a tremen- dously remen dously successful year thanks in part to sponsors, volunteers .Wand our Promotions committee and staff but also doe to the fabulous music supplied by some of the area's best bands. Looking .lout into the sea of faces every week, I witnessed the joy and happi- .ness experienced by people of all ages, from near and for who were y? just happy to be listening, dancing, laughing and enjoying the twilight 'before fall...around Downtown. i A Sadly, "hit and run'damage such as this has the poten- tial to destroy Downtown's beautiful trees. City Arborist Downtown Foresters work with City crews to plant a new Ron Combs says this is a common occurrence, usually tree behind the Little Theatre to replace a larger specimen caused by delivery trucks. removed due to building damage. Photo by Deborah Cash t t Photo by Deborah Cash t: ATTACHMENT Cv What ' s Up Around Downtown ? I omething about the sound of"2008" has a great vibe deals with the "un sexy' but vital affairs of Downtown viability— about it. Maybe because it rhymes with "great" or perhaps things like helping Downtown survive during construction projects, S { because it's a nice round number, but it just feels good. Or providing private security in the Downtown and implementing the 1 could it be that I just feel good? I think the coming year bodes Strategic Plan. Restaurateur Patty Carpenter proved she can do it well For Downtown including a fresh start for the Downtown As- all—juggle owning a business with husband Bill and being a mom sociation, grand projects beginning and moving forward, a 25th while overseeing the decisions necessary to keeping the world's anniversary of the much-loved Thursday Night Promotions Farmers best farmers market successful. Ellen Henry, Promotions Chair, is } Market(with the always-exciting election year madness thrown responsible for all the fun you have when you come Downtown; inl)...there's definitely a sense of progress, excitement and good she makes it look like a breeze while behind the scenes it's a fortune in the air, whirlwind. Such is the mark of a true leader. So moving into 2008, we're well positioned with these folks in charge to make the break from being a City advisory body to becoming an inde- Nof that 2007 was so bad. We had some drama, 'tis true, pendent non profit agency and beginning our new life. but it didn't amount to trauma and I believe the community is tremendously supportive of our efforts and our existence overall. While people mostly know us for our fabulouspromo- . What will it look like to the public? Well, you won't notice tions, others realize we're on the ball with parking, design and much. Most of the overhaul's on paper and doesn't economic issues and are by now used to us appearing in a variety change our name, address or phone number. You may of media stating a position or offering an opinion. see more of us when it comes to issues that affect our members; we are, after all, here to support, protect and serve those in the district who are subject to assessment taxation. It's an idea whose I think we've cultivated not only strength and confidence among time has come and it's really as simple as that. We're sure, based 1 our members but we've produced a fine crop of community on our experience with the media, that there will be attempts to { leaders as well. This past year has accentuated that fact with make mountains out of molehills (or in this case sensation out of Pam Seeley at the helm of the Board, providing well-thought-out dullness) but I'll apologize in advance: sorry, there's no hidden guidance in a variety of matters and remaining cool and collected agenda or salacious saga to share.. We will keep you posted as When faced with tough decisions. Parking and Access chair Tom we go through the motions—just in case you're interested—and Sweet's proved tenacious in keeping an eye on every available perhaps invite everyone to a big party, since we do those so welll { parking space and the other eye on a future parking structure: Alex Gough and Tom Copeland co-chaired the committee that AlAL1 i �6.,._.._t.�ru.`-��...,.-.•-L.�,w-_.<' -....--._ _�-a__..,..--•� _�. _ What ' s Up Around Downtown ? gs the year ends, we go out in a burst of festivity in Down- this year with an invitation to visit Downtown during the holidays town. Our slate of holiday activities offers family-friendly fun and enjoy all that we have to offer. all month long in a brightly decorated setting-our goal is to bring people into Downtown for terrific shopping and dining evisiting some successes of the past year Downtown, we opportunities and to provide an enjoyable atmosphere while are proud of our accomplishments including the formation they're here. Rof Downtown Foresters to assist with the City's urban forest program, a revitalized and upgraded Farmers Market including We very much support the City's"Shop Local"campaign "Main Stage" entertainment and an extended Concerts in the and urge you to consider spending your money locally Plaza season. We also supported the return of the Criterium whenever possible—it's important because by support- bicycle event, instituted private Downtown security, adopted an ing your local economy, you provide for your security, comfort updated Strategic Plan, began the process of restructuring our or- and well-being. And, because it's a common lament we hear that ganization as a non profit, developed and campaign and worked I "the moms and pops are going away,"we urge those who feel with the City on a major-street paving project to include old fash- this way to reverse the trend by shopping in local, independently Toned pedestrian style lights, and continued our regular activities operated businesses. We hope you not only find items for holiday genre to support business and keep Downtown viable. isfaction in knowing you're contributing gifts and home but find sat to your community at the same time. ut we also have an eye on the future and already see signs of change on the horizon—new developments, people living But, as is true of downtowns across the country,there's more Bin Downtown, seismic retrofit continuing for a few years, per- than just shopping that you should expect from your city's haps a new parking structure...as Downtown moves forward into center. This is your home, your Downtown, your special an era where people begin thinking differently about commuting, place; a place to bring visitors, to meet friends, to take advantage energy use, lifestyles and redefining the workplace, it's important of its offerings. Art After Dark, musical and theatrical events, his- to keep up with these needs and become a living center as well torical offerings, great walk-ability, beautiful trees, lots of parking as a shopping center. That's going to be the charge of the Down- in the structures with the first hour free,wonderful restaurants, town Association as it moves into independence and-autonomy. lovely window decorations (see list below for participants in this You'll surely be hearing more about this over the next few months. year's Holiday Window Decorating Contest), a convenient transit 1210 center, lots of-bike racks, a library, churches...all mixed in withA s for the present, we're watching and waiting to see how rather impressive shops. As the Downtown Association gears up /� the economy goes; this time of year is important for retailers for new challenges and changes in 2008,we want to wind down especially,who often depend on seasonal sales to make ly3 Campaigns : Campaign Preview https://app.e2ma.net/app/viP�u:CampaignPreview/state:prinVcampaig... l0ATTACHMENT �P send this to a friend San Luis Obispo Downtown Association Notice to members: You'll be receiving a mailing today or over the weekend regarding the Downtown Association's restructuring process. Please take a few moments to review the enclosed documents and return the survey in the packet. You may also wish to attend the Downtown Association monthly Board of Directors meeting on February 12. Please note, however, due to construction at City Hall, the meeting location has been changed for this month to 919 Palm Street (Community Development and Public Works Departments) with entry on the street level at the corner of Morro and Palm streets. Meeting time is 7:30 AM. The restructuring process of the Downtown Association is underway and was discussed in detail at last week's Quarterly Breakfast. The presentation was videotaped and DVDs will be available free of charge to anyone who was unable to attend the Breakfast and would like to view the discussion. Contact the office for more information. Hopskotch Kids _ - Mignon Jones, Owner ( 1129A Garden Street u is San Luis Obispo, CA 93401 805-782-9004 ho.pskotchkids@gmail.com Offering "a creative and eclectic mix of clothes, toys and accessories to fit every child's unique personality," Hopskotch Kids has become a family wonder for Downtown SLO. The new business, replacing Bambini Baby and in a new location, is ; 1 of 4 3/18/08 12:02 PM 1 ATTACHMENT (0 Dear Sorry I missed you! I'm out hitting the streets drumming up support for the Downtown Association's restructuring and fee increase. Hopefully you've seen the materials and support this move! I need your letters of support. Please write a letter to the Board about your experience with the Downtown Association, your satisfaction, etc. I've attached a letter from another member as an example, although it doesn't need to be that long. Please call if you'd like me to pick it up (or if you have questions). Or just mail. Thanks so much l v� 1 f - � ATTACHMENT (p 0 March 19, 2008 i M Board of Directors Downtown Association 00 1108 Garden Street, Suite 210 • San Luis Obispo, CA 93401 tt Dear Board, M The Downtown Association has contributed greatly to our city, helping to make it a vital community center and a magnet for both residents and tourists. Farmers Market, Concerts in the Plaza, sidewalk seating, publicity, rA �, Poo private security, keeping downtown clean, and others activities too ,a numerous to mention have contributed immensely to our Q wonderful downtown area The Downtown Association has been a very important contributor M..� to the success of our downtown. I approve of the move to independence and would not object to a modest fee increase. • 4100 Sincerely, V Charlie Kamm M l� ATTACHMENT (p Fred S. Vernacchia, M.D. - High Field-MRI/Open Mid-Field MRI Medical Director Positron Emission Tomography(PET)/CT %�. 16-Slice Highspeed CT Scanning a Lucchesi, M.D. Neuron Ultrasonography-Color Vascular Analysis Neuroradiologist Mammography/Stereotactic Breast Biopsy v - SAN LUIS' , Lisa M. Wieler, M.D. ��CiN�$T�C, MR &CT Angiography Radiologist Radiography/Fluoroscopy Gary M. Hatch, M.D. ENTER,= Needle Biopsies Radiologist , �.� /� 3D Bone Mineral Analysis Total Body Screening Kenneth D. Krone, M.D. Virtual Colonoscopy Radiologist Heart Scanning February 21, 2008 Board of Directors of the Downtown Association 1108 Garden Street Suite 210 San Luis Obispo, Ca 93401 The Downtown Association (formerly the Business Improvement Association) has been a vital contributor to the success not only of our downtown, but the City of San Luis Obispo. As you are all fully aware, we are all very proud of the many awards bestowed on our City for the quality of our intimate downtown. Many of the achievements of the Downtown Association since 1975 include Concerts in the Plaza, Farmer's Market, installation of sidewalk benches, construction of parking structures, to name just a few. Changes downtown are on-going and create a vibrant, always interesting atmosphere. I have been a member of the Downtown Association for over 10 years. Being in the downtown district has created a very special environment for my business and for my employees. I cannot express in words the attraction of being in the downtown district has to my employees. The opportunity for my employees to leave at lunch and break time and walk our beautiful downtown is not only good for the downtown businesses, but also helps create a healthier, more energized workforce for my business. The question I have for the City Council is: What would downtown be like without the Downtown Association? I sincerely doubt that the activities, the banners, the nighttime art walks, wine-tasting, dinners, activities that are way too countless to enumerate would not be there. Having these activities requires human energy and planning. Without the Downtown Association, the entire City would suffer. I cannot tell you how often we have patients from different parts of the County waiting while one of their loved- ones they undergo diagnostic procedures and they leave for% hour to 1 hour to enjoy our lovely downtown. They often come back and comment to our staff how lucky they are that they work in such a wonderful location. I fully support the goals of the Downtown Association to becoming independent from the City. I believe becoming independent of the City will actually make for a stronger, more active, less restricted and more productive association. I also feel that the recommended fee increases are minimal compared to the overall budget of the Downtown Association. (The activities the Downtown Association coordinates actually create revenue for the Association!) These fees are of minimal impact to those businesses with low gross receipts and represent a very small percentage above what is currently being paid by those businesses with a high gross income. I feel that those fees will continue to be put to good use as they have in years past. Also creating an independence from the City will make the downtown association more answerable to its members and less answerable to the City. This is a good thing, Since ly, 61k . 1W J 4XV Fred S. Vernacchia, M.D. 1100 Monterey Street, Suite 210 4:4 San Luis Obispo, California 93401 (805) 542-9700 4:4 Fax (805) 542-0584 ATTACHMENT � JKevMain Jewelry DESIGN £r STUDIO February 26, 2008 Kevin Main Jewelry relocated to Downtown San Luis Obispo over nine years ago, from downtown Morro Bay. To say there is a difference in the ambiance and energy between the two cities is an understatement. Most of the reason for the vitality and quality atmosphere in Downtown San Luis Obispo is the numerous events and activities made possible by the Downtown Association through the commitment of Deborah Cash and the staff. Downtown is a safe and intimate pleasant place to stroll, offers a multitude of artistic activities to enjoy, while creating a vibrant atmosphere in which to conduct business. Locals, visitors, merchant, and property owners are all able to enjoy the benefits of Downtown —most of which are a direct result of the planning and tireless dedication of the DTA. As a past President of the DTA, I can speak to the organizational skills of the all of the staff, and the ability to maximize the nominal amount of fee income for the greatest amount of effect and success of projects. Before my involvement on the Board, I was unaware of the depth of contribution the Association had on the Downtown as well as the entire City of San Luis Obispo. I fully support the goals of the Downtown Association to becoming independent from the City. I believe that the recommended fee increase is minimal and that the budget will continue to be managed with fiscal responsibility. An independent Association will be better able to maintain the vitality of Downtown and better represent its membership. Respectfully, i Kathi Main Kevin Main Jewelry 720 Higuera St,San Luis Obispo,CA 93401 h 805/547-0662•Fax 805/547-0625 www.KevinMain.com A dIVISIon of K.Main.Inc. ATTACHMENT � 9rown'6 Skoe git COMPANY BROWN'S GENERAL OFFICES, INC. TELEPHONE 805-541-2732 846 HIGUERA STREET, SUITE 2 FAX 805-541-4732 SAN LUIS OBISPO, CA 93401 3/8/2008 Board of Directors Downtown Association 1108 Garden Street, Suite 210 San Luis Obispo, CA 93401 There is no question the vitality of a downtown helps increase a sense of "community". A prosperous downtown also helps determine the direction of property values in a community; the ability to attract quality industry and manufacturing to an area; increase tourism and generally benefits all aspects of a community. Such is the case with the continued success of Downtown San Luis Obispo. It was my opportunity in 1975 to help be instrumental in establishing the current structure for the Downtown Association. At that time it was necessary for the existing promotional organization group to change its structure and complexity. It was not an easy task to get downtown businesses to understand the need to be better organized and put into place a self-assessment district with the help of the City of San Luis Obispo. Luckily, the Business Improvement Association was formed and the continued success of Downtown San Luis was given a real shot in the arm. Just as it was important to change then, it is equally important the structure of the Downtown Association change now. Times have changed and so must we! I advocate as strongly now, as I did thirty three years ago for change. It is important for the Downtown Association to be come independent of the City of San Luis Obispo and break off as a self-sustaining non-profit. The recommended fee changes are minimal when stacked against the benefits individual members receive. Although the Associations goals have changed very little over the years it is now important for the Association to change it's ability to meet those goals '12n. a ever changing business environment. I strongly support the Do own A actions to become more independent. ely, . Brown, President Bro General Offices I c. STORES LOCATED IN COLORADO CALIFORNIA SOUTH DAKOTA OREGON ATTACHMENT w 1 ROSSETY1 COMPANY COMMERCIAL REAL ESTATE BROKERAGE PROPERTY MANAGEMENT DEVELOPMENT 1301 Chorro Street San Luis Obispo CA 93401 805.544.3900 tel 805.544.3922 fax March 11, 2008 nfo®rossetticompany.com Board of Directors Downtown Association 1108 Garden Street,Suite 210 San Luis Obispo,CA 93401 To Whom It May Concern, I would like to take a moment of your time to sing the praises of the Downtown Association and to voice my support of their plan to become a non-profit organization and to support their proposed fee structure. Having been in the business of selling commercial real estate, basically business property in the City of San Luis Obispo,for the past 30 years, I find myself with a perspective of what has driven people's desire to want to own or lease a part of this City. Generally,when that desire is expressed it is directed towards the downtown. This,as much as any of the attributes of our area, make San Luis Obispo what it is today. People that want to invest in this community show interest in the downtown area. The Downtown Association has seen to it that downtown San Luis Obispo remains vibrant,fun,entertaining and economically valuable. It takes this wonderful asset and helps make the most of it. Without sighting all of the various things they do, it is clear they do them well. They are an asset we are lucky to have. If forming as a non-profit,and adjusting the fee schedule, is what it will take to keep the Downtown Association in place and able to perform as they have,then I support it. 'ncerely, Rossetti Member of Imemational Council of Stropping - ATTACHMENT CP IERRE RADEMAKER DESIGN 738 HIGUERA STREET, SUITE F SAN LUIS OBISPO, CALIFORNIA 93401 TELEPHONE: 805/544-7774 March 13, 2008 San Luis Obispo Downtown Association Board of Directors Dear Board Members, I have been a downtown business owner for over 27 years and have always been a supporter of the Downtown Association (previously the Downtown Business Improvement Association). I have served on several committees, been on the Board several times and was honored to be President for two terms. Even though I have an upstairs business that serves a regional clientele, I've never considered locating anywhere other than downtown. A great deal of what makes the downtown such an attractive place to do business is due to the efforts of the Downtown Association staff and volunteers. Without such dedication we would never have been chosen for the Great American Main Street Award by the National Trust for Historic Preservation. In order to further expand its beautification and promotional efforts I fully support the Association's independence from the City. Futhermore I feel that the fee increases being requested are reasonable and long overdue. Thank you for all that you do. Pierre Rademaker Owner—Pierre Rademaker Design I -SI Ann's "r I Contemporary Clotlng ATTACHMENT �P �.I`` � sem°. s� 888YYY 895 Monterey Street, San Liris Ob*spo, California 93401 (805)543-8250 Since being in business in the San Luis Obispo downtown area for over 36 years, and a member of the BIA Downtown Association since 1975,I can attest to the fact that the Downtown Association is a vital and integral part of the well being and success of our well-known downtown. I have seen over the years how important the Downtown Association has been in creating the special environment that the downtown offers the residents and tourists that visit here. I truly believe the downtown wouldn't be today what it is without the hard work of the Downtown Association,administration,volunteers,and board members. Where would the downtown be today without the huge successes of activities such as Farmer's Market,the Holiday Parade, Santa's House,Taste of SLO, Concerts in the Plaza,cleaning of the sidewalks,and all the promotions?And that is only mentioning a few!The parking structures are also a direct result of due diligence from the Downtown Association.They have become a huge tool for continued business success,which in turn benefits the city with sales tax revenue. I do believe if the Downtown Association becomes independent of the city,it will be a win-win situation. It will enable the association to become even more viable, with the ability to make independent decisions with better regard to the downtown merchants and the city itself. As a past Downtown Association Board Member, Promotional Chair of the Downtown Association,and a Chamber of Commerce Board Member, I am in full support of the association becoming independent from the city.We have one of the most unique,lovely,and enticing open air downtowns to be found anywhere.Let's keep it that way! Sincerely, JXV.,Ltw--�' Ann Reeves Ann's Contemporary Clothing 895 Monterey St. ' �� 0 ATTACHMENT � Wesfte March 17, 2008 Board of Directors of the Downtown Association 1108 Garden Street Suite 210 San Luis Obispo, Ca 93401 Dear Board Members, I am a member of the Downtown Association and appreciate what the Association will be doing for us regarding our proposed Garden Street Terraces Hotel project. The Downtown Association will be instrumental in helping us to devise a plan so that this project will have as little impact as possible during the planning and building phases. We look forward to their support and guidance as they balance the needs of all downtown business owners while still being supportive of our project. I be]ieve that the Downtown Association has contributed to making our downtown a vibrant place for businesses and their employees,as well as for residents and visitors. I support the Downtown Association in becoming independent from the City and feel the fee increases are justified. By becoming independent, the Association will be able to make even more of an impact for the downtown community. Sincerely, Hamish S. Marshall Vice President Wes 8heltei CO WmtPac Imestmerds,IIIc. MA=Viata Place,8Wte 100 Ban La►s OA 93401 8t180&W7==348-•FAX 80b344-1177 I 03128!2008 1105 SLO DOWNTOWN ASSOCIATION (FAX)805 781 2647 P.0021002 RED FILE RECEIVE® MEETING AGENDA MAR 2 8 2008 DATE ITEM #.t. SLO CITY CLERK March 25, 2008At 4PCOUNCiLu� Gi? IT CAOFIN DIP 1UACAO SFI,RE CHIEF Ms. Deborah Cash C ATTORf Rw NEY D I R PQ 44 CLERKlORiG LICE CHF Downtown Association REC DIP ❑ D HEADS 1108 Garden Street, Suite 210 $ T USI DIr San Luis Obispo, CA"93401 r ..a HR DIP �o Cw%w do L Dear Deborah, f' a f C Zz R-A. For months I have been watching your efforts to restructure the Downtown Association. I feel certain that you will achieve your goals of making the Association even more effective. However, I have never expressed my appreciation for the existing organization. Being a property owner with many tenants,I have kept a keen eye on the downtown and its viability. For decades,my family and I have watched the ups and downs,the good times and slow times and the liveliness of downtown San Luis Obispo. Without the contributions of the Downtown Association and its predecessors,the current picture of San Luis Obispo may be entirely different. The normal progression of small town downtowns is one of slow,but inexorable deterioration. Fewhave kept a.strong economic, cultural and historic context. San Luis Obispo is one of those few. There are many reasons. But, arguably,the long term contributions of the Downtown Associationhave been the most important. I than you for your hard work and leadership. And I thank those who have preceded You- Sincerely, omSincerely, Leslie R. Naman,MD