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Staff Report 3760
City of Palo Alto (ID # 3760) City Council Staff Report Report Type: Action Items Meeting Date: 5/6/2013 City of Palo Alto Page 1 Summary Title: BID Re-Authorization Title: Public Hearing to Hear Objections to the Levy of Proposed Assessments on the Palo Alto Downtown Business Improvement District and Adoption of a Resolution Confirming the Report of the Advisory Board and Levying Assessment for Fiscal Year 2014 on the Downtown Palo Alto Business Improvement District From: City Manager Lead Department: City Manager Recommendation Staff recommends that the City Council: 1. Hold a public hearing on the levy of proposed assessments in Fiscal Year 2014 in connection with the Downtown Palo Alto Business Improvement District; and 2. Approve a resolution confirming the report of the Advisory board and levying an assessment for Fiscal Year 2014 on the Downtown Palo Alto Business Improvement District (Attachment 2). Background On April 15, 2013, the City Council Adopted a resolution preliminarily approving the report filed by the Palo Alto Downtown Business Improvement District Advisory Board for the Fiscal Year 2014; Adopted a resolution of intention to levy the annual assessment for 2013-2014; and City of Palo Alto Page 2 Set May 6, 2013 at 7:00pm, or soon thereafter, as the date and time for the public hearing on the levy of the proposed assessments. Discussion The City Council is required to annually hold a public hearing, approve the Advisory Board Annual report, and determine whether or not to levy the annual assessment for the Palo Alto Downtown business Improvement District (BID). The BID is required by State law to be authorized annually. As such, it is not possible under state BID law to implement capital projects that extend longer than one year. Traditionally, funds generated from Business Improvement Districts are used for marketing, promotions, maintenance, and beautification of business districts. The assessments levied on businesses in the BID are based on the size, type, and location of downtown businesses. Based on a cost-benefit analysis, retailers and restaurants pay a larger assessment because they receive more benefit from the activities undertaken in the business district. For example, a small-large retailer/ restaurant would pay $225 to $450, while a small-large professional business (architect, accountant, etc) pay in the $50 to $225 range. Professional businesses pay the least since they receive less benefit from the BID. Absent a majority protest at the public hearing, the Council may adopt a resolution approving the report for Fiscal Year 2014 as filed or as modified by the Council at the conclusion of the public hearing. The adoption of the resolution constitutes the levying of the BID assessments for Fiscal Year 2014. The staff report (April 15, 2013) is attached and describes the actions related to the BID, including the report of the Palo Alto Downtown Business and Professional Association (PADBPA) to the City Council (Attachment 1). Attached is the Council Resolution approving the BID for Fiscal Year 2014 including required exhibits (Attachment 2). Resource Impacts Adoption of the proposed BID budget does not directly impact City revenue. BID assessments are restricted to exclusive use by the BID. A healthy BID will typically encourage growth of the retail community and consequently result in additional sales tax revenue for the City. Minimal staff effort is expended annually to administer the collection of the BID. City of Palo Alto Page 3 Staff will continue to monitor adminitrative time devoted to the collection of BID assessments to assure that City costs do not exceed estimates for these services. The cost and collection of BID assessments past 60 days is absorbed by the BID. The Attorney’s Office will continue to provide legal oversight to the BID during the annual reathorization process. Administrative Services and/or Planning Department staff provide assistance in the collection of BID assessments. The Economic Development Manager will continue to provide oversight of the BID and will prepare the annual reauthorization. Environmental Review This action by the City Council does not meet the definition of a project under Section 21065 of the California Environmental Quality Act, and therefore no environmental assessment is necessary. Attachments: : Attachment 1: Staff Report #3642 Including BID FY 14 Annual Report (PDF) : Attachment 2 - RESO Confirming Rpt of BID For FY14 (PDF) City of Palo Alto (ID # 3642) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/15/2013 City of Palo Alto Page 1 Summary Title: BID Preliminary Re-Authorization Title: Preliminary Approval of the Report of the Advisory Board for Fiscal Year 2012 in Connection with the Palo Alto Downtown Business Improvement District and Adoption of Resolution Declaring its Intention to Levy an Assessment Against Businesses within the Downtown Palo Alto Business Improvement District for Fiscal Year 2014 and Setting a Time and Place for a Public Hearing on May 6, at 7:00 PM or Thereafter, in the City Council Chambers From: City Manager Lead Department: City Manager Recommendation Staff recommends the following motion: that City Council: (a) Preliminarily approve the Business Improvement District (BID) Advisory Board’s 2014 Budget Report for the BID (Attachment 1) and; (b) Adopt a Resolution of Intention to Levy Assessments in the Palo Alto Downtown Business Improvement District for Fiscal Year 2014, setting a date and time for the public hearing on the levy of the proposed assessments for May 6, 2013, at 7:00 PM, or thereafter, in the City Council Chambers (Attachment 3) Executive Summary This Council action includes a preliminary approval of the BID Board’s annual report, and sets a time and place for a public hearing for the staff presentation, and to determine any objections to the assessments. Since the BID inception in 2004, a number of activities consistent with State BID law have been accomplished by the Palo Alto Downtown Business and Professional Association (PADBPA), the entity with which the City contracts to provide services to the 800+ businesses assessed in the Downtown. These include addressing the three main City of Palo Alto Page 2 issues facing downtown businesses: cleanliness, safety, and attractiveness, as well as participation in zoning and other matters affecting downtown businesses. Assessments for BID businesses are based on the size, type and location of the business. Assessments range from $50 for individually owned professional businesses to $500 annually for financial institutions. The PADBPA has monthly open meetings governed by the Ralph M. Brown Act which any business or individual can attend. Background The Palo Alto Downtown Business Improvement District (BID) was established by the City Council in 2004 pursuant to the California Parking and Business Improvement Area Law to promote the economic revitalization and physical maintenance of the Palo Alto Downtown business district. The Council appointed the Board of Directors of the Palo Alto Downtown Business and Professional Association (PADBPA), a non-profit corporation, as the Advisory Board for the BID. The Board’s purpose is to advise the Council on the method and basis for levy of assessments in the BID and the expenditure of revenues derived from the assessments. Pursuant to BID law, the Advisory Board must annually submit to the Council a report that proposes a budget for the upcoming Fiscal Year for the BID. The report must: 1) propose any boundary changes in the BID; 2) list the improvements and activities to be provided in the Fiscal Year; 3) estimate the cost to provide the improvements and activities; 4) set forth the method and basis for levy of assessments; 5) identify surplus or deficit revenues carried over from the prior Fiscal Year; and 6) identify amounts of contributions from sources other than assessments. The Council must then: 1) review the report and preliminarily approve it as proposed or as changed by the Council; 2) adopt a resolution of intention to levy the assessments for the upcoming Fiscal Year; and 3) set a date and time for the public hearing on the levy of assessments in the BID. Absent a majority protest at the public hearing on May 6, 2013, at the conclusion of the public hearing, the Council may adopt a resolution confirming the report for Fiscal Year 2014 as filed or as modified by the Council. The adoption of the resolution constitutes the levying of the BID assessments for Fiscal Year 2014. Discussion The Advisory Board has prepared a report (Attachment 1) for the Council’s consideration which includes the proposed budget for the Palo Alto Downtown BID for Fiscal Year 2014. As required by BID law, the report has been filed with the City Clerk City of Palo Alto Page 3 and contains a list of the improvements, activities, and associated costs proposed in the BID for Fiscal Year 2014. The Advisory Board has recommended no change in the BID boundaries or the method and basis for levying assessments. A map of the BID is attached (Attachment 2). The proposed assessments in the BID for Fiscal Year 2014 are the same as the assessments in Fiscal Year 2013. No increases are proposed. The budget report for Fiscal Year 2014 was reviewed and approved by the Palo Alto Downtown Business and Professional Association board on April 1, 2013. Resource Impact Adoption of the proposed BID budget does not directly impact City revenue. BID assessments are restricted for use exclusively by the BID. It is anticipated that a healthy BID will encourage vitality in the retail community and consequently result in additional sales tax revenue for the City. Some staff effort is expended annually to administer the collection of the BID. Staff will continue to monitor staff administrative time devoted to the collection of BID assessments to assure that City costs do not exceed estimates for these services. The cost and collection of BID assessments past 60 days is borne by the BID. The Attorney's Office will continue to provide legal oversight to the BID during the annual reauthorization process. Administrative Services staff provides assistance in the collection of BID assessments. The Economic Development Manager will continue to provide oversight to the BID and will prepare the annual reauthorization. Environmental Review This action by the City Council does not meet the definition of a project under Section 21065 of the California Environmental Quality Act, and therefore no environmental assessment is necessary. Attachments: BID Annual Report FY 2014 (DOCX) RESO Declaring Intention to Levy BID FY14 (PDF) Palo Alto Downtown Business Improvement District 2013 -14 Annual Report Prepared for: Palo Alto City Council Prepared by: Russ Cohen, Executive Director, Palo Alto Downtown Business and Professional Association Start here. Introduction This report from the Advisory Board of the Palo Alto Downtown Business & Professional Association (“PAd”) was prepared for City Council to review for the annual reauthorization of the Downtown Palo Alto Business Improvement District (“BID”) pursuant to Section 36533 of the Parking and Business Improvement Law of 1989 (Section 36500 and following of the California Streets and Highways code) (the “Law”). This report is for the proposed fiscal year for the BID commencing July 1, 2013 and ending June 30, 2014. (“Fiscal Year 2013-14”). As required by the Law, this report contains the following information: I. Any proposed changes in BID boundaries and benefit zones within the BID; II. The improvements and activities to be provided for Fiscal Year 2013-14; III. An estimate of the cost of providing the improvements and the activities for Fiscal Year 2013-14; IV. The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for Fiscal Year 2013-14. V. The amount of any surplus or deficit revenues to be carried over from a previous fiscal year. VI. The amount of any contributions to be made from sources other than assessments levied pursuant to the Law. Submitted by Anne E. Senti-Willis, Chair, and Russell S. Cohen, Executive Director on behalf of the Advisory Board (“Advisory Board”) of the Palo Alto Downtown Business & Professional Association (“PAd”). The Advisory Board approved this report on April 1, 2013. Received on file in the Office of the City Clerk of the City of Palo Alto on April 10, 2013. Section I: BID boundaries and Benefit Zones There have been no changes in the BID boundaries or benefit zones within the BID and no changes are proposed. The current boundaries are depicted on the map below. The area of the BID is referred to as “Downtown.” ~~"lr-~~;;;-l"~P~':IO~A:':'O~D:O:':'O:'O:W::O--lr~~~~=l ~ Business Improvement ,,, "" ., District P a lo Alto ---- Who and what are downtown Palo Alto? The following charts illustrate the current makeup of Downtown Palo Alto by business category. Methodology: Ratio estimates based on one time data collection through quick probability samplings considered a “windshield survey.” Margin of error is 15%. Businesses in downtown Palo Alto 2013 Restaurants = 88 Retail = 72 High tech = 109 Real Estate = 30 Finance = 84 Medical = 79 Other= 230 Restaurants Independenty owned=75 Chain or franchise=13 Total=88 Retail Independently owned=51 Chain or franchise=21 Total = 72 Restaurant vs. Retail Retaurant = 88 Retail = 72 Total independent vs Chain ( both rest. & retail combined ) Independent = 126 Chain = 34 Summary of findings based on the above charts: These data illustrate reality rather than perception. Many perceive that there is a preponderance of restaurants vs. retail, but in reality the mix is quite balanced. Also true for the number of chains vs. the number of independently owned businesses—it’s clear that there is much more in the way of independently owned businesses than chain or franchised businesses—thus breaking the commonly held perception of Downtown being dominated by chains and restaurants. New vs Closed New = 58 Closed = 13 Section II: 2012-13 Year in Review and Planned Activites for Fiscal Year 2013-2014 “Keeping Downtown Palo Alto Safe, Spotless and Successful.” PROJECT STATUS EXPECTED COMPLETION Beautification and Safety Cogswell Park rehabilitation Worked with the City to initiate the rehabilitation project and provided input on design. Grand re- opening was December 12, 2012. Complete Dec-12 University Ave. Tunnel rehabilitation Worked with the City to initiate new paint, water proof sealing and cleaning along with some new signage to brighten and provide a more welcoming entrance to Downtown. Complete Dec-12 Cogswell Park wi-fi hot spot Contributed funds to pilot free wi-fi hot spot program at Cogswell Park; assisted TopCorner.org with fundraising. [insert completion date] No Amplified Music Ordinance for Lytton Plaza and Cogswell Park In response to PAd member complaints, worked with the City to draft language and provide outreach to Downtown community. Ordinance is now in effect. Complete Jan-13 Operation Flagpole: an initiative to decorate University Ave with flags for special occasions Holes being installed as part of the University Ave landscaping improvements. Pricing for flags and poles under way along with solicitation of service clubs to install and remove flags on holidays. May-13 University Avenue landscape and irrigation rehabilitation Working with the city of Palo Alto on outreach to business community to add awareness and address concerns on scheduled improvements. Began the first of 9 phases of 1-2 weeks each on Feb 7. Apr-13 Public Art: Aurora installation at King Plaza PAd has worked with the Pal Alto Arts Commission to move this installation to King Plaza. Fundraising, website and print material distribution underway involving, among others, the Black Rock Art Foundation. Spring 13 Monthly sidewalk cleaning Worked with the City to increase frequency and improve equipment used for sidewalk cleaning. Ongoing Seasonal lamp post banner design In development as a pilot program with the expectation of expanding the program to include a greater variety of banners and more frequent replacement. Additional funding will come from private public partnerships. Spring 13 Public Art: Downtown Mural Project Program under development with Palo Alto Public Arts Commission and Downtown property owners to bring murals to Downtown buildings and other locations. Ongoing Lytton Plaza umbrellas To make Lytton Plaza more welcoming, umbrellas have been proposed to be added to outdoor seating. Downtown Streets Team has agreed to set up and dismantle umbrellas on weekdays. Outreach is beginning for storage and potential funding. Spring 13 Downtown Ambassador Program PAd continues to explore sponsorship of “ambassadors” with the Downtown Streets Team, with individuals who would be able to provide information regarding Downtown and direction to visitors. Ongoing Downtown gateway feature Development of feature to mark entrances to Downtown being considered Ongoing Camera installation in garages Working with PA Chamber of Commerce BAPPF to support program to increase safety in parking garages through installation and monitoring of security cameras. Currently involved with sourcing vendors, obtaining prices and suggesting placement locations. Ongoing Sleeping in Vehicles subcommittee Served on the committee to develop a pilot program with the faith community to address this issue Ongoing No smoking ordinance for Lytton Plaza and Cogswell Park Suggested new ordinance to City staff as a result of PAd member complaints. PAd has drafted a letter in support of current Policy & Services Committee consideration and have encouraged further business community support. Apr-13 Administration Yearly audit Annual required financial statement audit and tax return completed by independent accounting firm. Complete Feb-13 Annual database update Annual census of new and departed businesses within Downtown complete and provided to the City for annual BID assessment invoicing. Complete Feb-13 Annual invoices Separate communications from PAd added to all City invoices, including separate welcome letter for new businesses. Ongoing Membership Communications and programming Palo Alto Downtown Business and Professional Association re- branding Re-branding began in fiscal year 2012-2013 to increase visibility to members within Downtown and to create a recognizable brand to Downtown visitors. Logo redesign and initial implementation were completed in October 2012. Complete Oct-12 “Made in Downtown Palo Alto” Rewards Card Launched in partnership with FiveStars, Inc. in late 2012. Currently, over [20] Downtown businesses are participating Ongoing Downtown Palo Alto Walking Maps Update of merchants and locations is complete; contents have been proofed. Publication should be complete in March 2013 March - 13 “Made in Downtown Palo Alto” Magazine Magazine devoted to Downtown businesses under development. Partial issue was released during the Palo Alto Institute Film Festival in October 2012, but full issue remains to be released. When complete, it will be available for free distribution at Downtown businesses. Ongoing Outdoor dining In conjunction with the City, PAd hosted a meeting on March 18 with Downtown restaurant owners to provide information regarding encroachment permit requirements for outdoor dining. Efforts to facilitate compliance with City ordinances will be ongoing. Summer 13 Media Coverage The past fiscal year has seen at least 15 articles, citations, listings or other references in media outlets. Ongoing Facebook presence Photos, posts and calendar items are all included in facebook content. The facebook presence also provides “friends” with updates on new and departing businesses as well as events and activities in the Downtown Ongoing Twitter Account launched Jan 13 Ongoing Events Holiday Tree Lighting 2012 tree lighting occurred on November 30. The Ongoing 2013 lighting is currently scheduled for December 6. World Music Day PAd is involved with this annual Father’s Day event through assistance with securing insurance for the event and providing outreach to the Downtown business community regarding street closures and ways to participate in the event. June 13 “The Downtown Crown” At the grand opening of each new Downtown business, PAd welcomes the business to the district by presenting a crown. Three new crowns were presented during the year ended June 30, 2012 and more will be presented in the coming year. Ongoing Breakfast Roundtable The 2012 breakfast roundtable was entitled, “Let the brainiacs of Silicon Valley improve your downtown business” and featured three local startups, Euclid Elements, FiveStars loyalty and Google interior mapping. The 2013 roundtable will focus on helping Downtown businesses grow. Complete and Ongoing Downtown Parking Committee PAd is actively involved in ensuring the Downtown parking assessment district is running effectively. It engaged in considerable outreach with Downtown neighbors regarding impacts including the development of a pilot RPP program. PAd continues to be involved with ongoing Downtown parking studies, working with City staff and working on outreach to Downtown business and property owners. Complete and Ongoing Concert Series sponsorship PAd is currently building relationships and seeking underwriters to resume outdoor concerts Downtown. Ongoing Event outreach PAd provides continuous member outreach regarding street closures, special events, construction impacts, transportation studies, traffic disruptions and more. Ongoing 1 Section III. Budget for 2013-14 The total funds available for activities for this fiscal year are estimated to be [$189,400]. The budget for providing the activities is set forth as follows: BID 2013/14 Budget INCOME Total Non-Assessment Sources Assessments $155,000 Allowance for Uncollectible Assessments ($34,000) Other Revenue $32,400 $32,400 12-13 Surplus Carryover $20,000 TOTAL INCOME $173,400 $32,400 EXPENSES Operating Expenses Staff Salaries Executive Director Salary & Benefits $66,000 Payroll taxes and expense $6,600 Office Supplies & Expenses $250 Internet/Website Maintenance $500 Telephone $900 Rent $3,120 Reauthorization Advertising $2,000 Audit-Tax Returns $5,700 Legal $1,000 $1,000 Insurance - Liability $1,800 Workman's Comp $1,000 Nominating $1,500 Contingencies $2,000 Subtotal -- Operating Expenses $92,370 $1,000 Programs, Marketing and Events Banners $24,000 $24,000 Breakfast Roundtables $5,700 $4,100 Events $3,500 $3,300 Member Outreach & Communication $250 Downtown Streets Team $5,000 District Improvement $42,580 Subtotal --Programs, Marketing & Events $81,030 $31,400 TOTAL EXPENSES $173,400 $32,400 2 Section IV: Method and Basis of Levying the Assessment Cost Benefit Analysis / Bid Assessments The method and basis of levying the assessment is provided in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for Fiscal Year 2013-14 and is not changed from the FY 2012-13 assessment. There have been no changes made to the Cost-Benefit Analysis or to the BID Assessments since they were approved by City Council on February 2, 2004. The method of calculation used to determine the cost and benefit to each business located in the BID is described below. The BID assessments are based on three criteria: the type of business, the location of the business and the size of the business. It has been consistently demonstrated that the typical BID program places a higher priority on activities such as commercial marketing. As a result, the retail and restaurant establishments in the BID are assessed more than service and professional businesses in the district. While service-oriented businesses benefit from a BID less than retailers and restaurateurs, they benefit more than professional businesses such as medical, dental, architectural, consultant and legal offices with their minimal advertising and promotion needs. For these reasons, various business types are assessed according to the benefit that they receive from the BID, as follows: Retail and Restaurant 100% of base amount Service 75% of base amount Professional 50% of base amount Exceptions to this rule include financial institutions that are traditionally charged a flat rate regardless of location or size and lodging businesses that are typically charged by total rooms. The location of a business also determines the degree of benefit that accrues to that business. Centrally located businesses tend to benefit more, as do businesses located on the ground floor. For this reason, A and B benefit zones have been identified for the BID. In Palo Alto, Zone A benefit businesses are assessed 100% of the base benefit assessment while Zone B businesses are assessed 75%. A third criterion is used in the BID to determine benefit. This criterion, the size of the business, takes into consideration the number of full time employees employed by the business. Please refer to Attachment 1 for a more complete understanding of the application of these three variables to establish BID benefit. Attachment 2 is the BID assessment for each business located within the BID boundaries. Applying the criteria identified in Attachment 1, a summary of the assessment that applies to each business by size, 3 type and location is outlined. In addition to the Cost-Benefit Analysis, the assessments include the following criteria: An exemption for “single person professional businesses” that have 25% or fewer full time equivalent (“FTE”), including the business owner. This covers employees who work less than 10 hours a week (based on a 40 hour work week; an FTE equals approximately 2000 hours annually) An assessment specifically for “single person businesses” that have 26% FTE to 1 FTE in the professional business category of the BID (An FTE equals approximately 2000 hours annually) The tiering of other professional businesses by size based (according to benefit) on the “single person business” criteria This outline provides information by which a business can determine its annual assessment based on objective criteria. Except where otherwise defined, all terms shall have the meanings identified below: Definitions of Business Types in the Downtown Business Improvement District Retailers and Restaurants: Businesses that buy or resell goods such as clothing stores, shoe stores, office supplies as well as businesses that sell prepared food and drink. Service Businesses: Businesses that sell services such as beauty or barber shops, repair shops, most automotive businesses, dry cleaners, art and dance studios, printing firms, film processing companies, travel agencies, entertainment businesses such as theatres, etc. Hotel and Lodging: These include businesses that have as their main business the lodging of customers. This is restricted to residential businesses that provide lodging services to customers for less than 30 days. Professional Businesses: Businesses that require advanced and/or specialized licenses or academic degrees such as architects, engineers, attorneys, chiropractors, dentists, doctors, accountants, optometrists, realtors, insurance brokers, venture capital firms, consultants, advertising and marketing professionals and mortgage brokers and similar professions. Financial Institutions: Includes banking, savings and loan institutions and credit unions. Additional clarification on business definitions will be defined according to Section 18.04.030 (Definitions) of the Palo Alto Municipal Code. The Advisory Board recommends that the following businesses be exempt from the BID assessment: New businesses established in the BID area following the annual assessment for the year in which they locate in the BID area Non-profit organizations Newspapers “Single person professional businesses” that have 25% or less FTE, including the business owner 4 The Assessment calculated shall be paid to the City no later 30 days after receipt of the invoice with the amount of the annual assessment sent by the City. A second notice will be mailed as a reminder to businesses that have not remitted payment by that date. Late payment will be subject to a 10% late fee. Section V: Revenue Surplus or Deficit Based on the revenue balance on 12/31/12 of $72,046, the PAd expects a surplus carryover of $20,000. Expected expenses for the remainder of FY 12-13 are as follows: Current Revenue Balance $72,046 Expected expenses for remaining FYE6/30/2013 Staff Salaries $25,000 Elections & Annual Report $3,500 Office & Operating Expenses $10,746 Outside Audit $4,000 Reauthorization Advertising $2,500 Downtown Streets Team $5,000 Rent $1,300 Total Expected Expense $51,300 Expected Carryover $20,000 Section VI: Non-assessment Income It is estimated that $32,400.00 will be raised in fundraising, and sponsor support. Additionally, anticipate in kind contribution towards expenses for Fiscal Year 2013-14. Projected Income for Fiscal Year 2013-14 Roundtable Breakfasts (donation) $4,100 Legal (donation) $1,000 Banners $24,000 Events $3,300 Total $32,400 5 Section VI: PAd Board of Directors by Business Type Retailers and Restaurants Alice Duetsher, Shady Lane Gifts Georgie Gleim, Gleim the Jeweler Cornelia Pendelton, University Art Claudia Cornejo, Café Venetia Service Businesses Robert Peterson, Peterson Architects Financial Institutions Deborah Pappas, Boston Private Bank & Trust Company Gayle Almeida-Haige, Boston Private Bank and Trust Company Professional Organizations Anne E. Senti-Willis, Thoits, Love, Hershberger & McLean Brad Ehikian, Premier Properties Patty McGuigan, Cornish & Carey Commercial Non Profit Organizations Chris Richardson, Downtown Streets Team LIAISONS Palo Alto Chamber of Commerce David MacKenzie, President & CEO Downtown Streets Team Eileen Richardson, Executive Director City Of Palo Alto Liz Kniss, Palo Alto City Council Thomas Fehrenbach, Manager of Economic Development 1 Attachment 1 ATTACHMENT 1 A General Statement Regarding Cost-Benefit Analysis For BID Businesses Using The Traditional Three Criteria Formula Criteria 1) Type of Business: Statement Concerning Cost-Benefit Formula For BID Businesses Regarding Type Of Business: In a review of 200 California Business Improvement Districts, it is consistently demonstrated that the typical BID Program places a higher priority on Commercial Marketing Programs than on Civic Beautification and Commercial Recruitment Programs. With that trend in mind, retail and restaurant businesses, with their emphasis on, and need for, commercial marketing, are traditionally assessed more than less marketing-sensitive service-oriented or professional-oriented businesses. However, while service-oriented businesses benefit from a BID less than retailers and restaurateurs, they benefit more, (from commercial marketing programs), than professional businesses such as medical, dental and legal offices with their minimal advertising and promotion needs. Therefore, set forth below, is an example of how various business types might be considered regarding the computation of the annual benefit assessment. • Retail and Restaurant: 100% of base amount • Service: 75% of base amount • Professional: 50% of base amount Exceptions to this rule include financial institutions that are traditionally charged a flat rate regardless of location or size and lodging businesses that are typically charged by total rooms. Lodging businesses are assessed based on the total number of rooms because it is a more equitable manner of determining size. Many lodging businesses have many part time employees, but revenues are based on the room occupancies of the hotel, not the goods sold or serviced provided by employees. Criteria 2) Location of Business: Statement Concerning Cost-Benefit Formula For BID Businesses Regarding Location of Business: It has also been consistently demonstrated that the more centrally located businesses tend to benefit from BID activities and services to a greater degree than businesses located toward the periphery of the proposed BID boundaries. Events and activities tend to originate in the central core of the Downtown area and spread benefit to the outer areas with diminishing energy and impact, much like the ripple effect of a stone tossed into a body of calm water. Furthermore, ground floor businesses tend to benefit to a greater degree than businesses located in upper floors. Therefore, in some cases, a new BID's annual benefit assessment formula also takes these street level criteria into account. As mentioned above, special events, fairs, festivals and other activities tend to take place within, or along, the Main Street core rather than in the areas at the periphery of the Downtown core. Additionally, BID-sponsored seasonal decorations, public art projects, street banners and street furniture tend to be located within the immediate core area. 2 Attachment 1 Therefore, businesses located within the most central area of the proposed BID are considered to be within "Zone A" which should be considered the primary benefit zone. There is typically a "secondary zone" or "Zone B" within most proposed BID areas. This area receives less benefit than Zone A and should be assessed accordingly. An example of how different zones might be treated regarding the computation of the annual benefit assessment is as follows. • Zone A: 100% of base benefit assessment • Zone B: 75% of base benefit assessment In the case of Downtown Palo Alto, it is recommended that all Zone A upper floor businesses, as well as any other businesses located at the periphery of the proposed BID, be considered as Zone B businesses. Please refer to the map in Attachment I. Criteria 3) Size of Business: Statement Concerning Cost-Benefit Formula For BID Businesses Regarding Size of Business: In approximately 50% of newly established BIDs, a third assessment criterion is used. This criterion involves the size of each individual business that is based upon the businesses’ total number of full-time employees. Full-time employees are those working a total of 2,000 hours per year. Part-time employees are grouped into full-time job positions, i.e., two half-time employees total one full-time. Fractions are rounded down to the nearest whole number with no less than one person as a minimum for business. An example of how various business sizes might be treated regarding the computation of the annual benefit assessment is as follows: Retail/Restaurants Service Businesses Small 50% of base amount Under 6 FTE* Under 4 FTE Medium 75% of base amount 6 to under 11 FTE 4 to under 7 FTE Large 100% of base amount 11 or more FTE 7 or more FTE * FTE = full time employees Additionally, an exemption was established for “single person professional businesses” that have 25% or less FTE, including the business owner. This covers employees who work less 10 hours a week (based on a 40 hour work week) Since “single person businesses” that have 26% FTE to 1 FTE in the professional business category of the BID benefit the very least from the assessment, their assessments have been tiered by size based (according to benefit) on the new “single person business” criteria. ATTACHMENT 2 Downtown Palo Alto Business Improvement District Annual BID Assessments ZONE A ZONE B (75% of Zone A amount) Restaurants & Retailers Under 6 FTE (50% of base amount) $225 $170 6 to under 11 FTE (75% of base amount) $340 $260 11 or more FTE (100% of base amount) $450 $340 Service Businesses Under 4 FTE (50% of base amount) $170 $130 4 to under 7 FTE (75% of base amount) $260 $200 Over 7 FTE (100% of base amount) $340 $260 Professional Businesses 25% or fewer FTE, including owner (0% of base amount) Exempt Exempt 26% FTE to under 1 FTE (25% of base amount) $60 $50 2 to 4 FTE (50% of base amount) $110 $90 5 to 9 FTE (75% of base amount) $170 $130 10+ FTE (100% of base amount) $225 $170 Lodging Businesses Up to 20 rooms (50% of base amount) $2258 $170 21 to 40 rooms (75% of base amount) $340 $260 41+ rooms (100% of base amount) $450 $340 Financial Institutions $500 $500 Note 1: For retail, restaurant, service, and professional businesses, size will be determined by number of employees either full-time or equivalent (FTE) made up of multiples of part-time employees. A full FTE equals approximately 2000 hours annually. Lodging facilities will be charged by number of rooms available and financial institutions will be charged a flat fee. Note 2: Second floor (and higher) businesses located within Zone A will be assessed the same as similar street-level businesses located within Zone B. Note 3: Assessment amounts are rounded to the nearest ten dollars. The minimum assessment will be $50.00. Not Yet Approved 120319 jb 0131058 1 Resolution No. _____ Resolution of the Council of the City of Palo Alto Declaring Its Intention to Levy an Assessment Against Businesses Within the Downtown Palo Alto Business Improvement District for Fiscal Year 2014 and Setting a Time and Place for May 6, 2013 at 7:00 PM or Thereafter, in the Council Chambers THE CITY COUNCIL OF THE CITY OF PALO ALTO DOES HEREBY FIND, DECLARE, AND ORDER AS FOLLOWS: SECTION 1. The Parking and Business Improvement Area Law of 1989 (the "Law"), California Streets and Highways Code Sections 36500 et seq., authorizes the City Council to levy an assessment against businesses within a parking and business improvement area which is in addition to any assessments, fees, charges, or taxes imposed in the City. SECTION 2. Pursuant to the Law, the City Council adopted Ordinance No. 4819 establishing the Downtown Palo Alto Business Improvement District (the "District") in the City of Palo Alto. SECTION 3. The City Council, by Resolution No. 8416, appointed the Board of Directors of the Palo Alto Downtown Business & Professional Association, a California nonprofit mutual benefit corporation, to serve as the Advisory Board for the District (the "Advisory Board"). SECTION 4. In accordance with Section 36533 of the law, the Advisory Board prepared and filed with the City Clerk a report entitled "Downtown Palo Alto Business Improvement District, Annual Report 2013‐2014" (the "Report”). The City Council hereby preliminarily approves the report. SECTION 5. The boundaries of the District are within the City limits of the City of Palo Alto (the "City") and encompass the greater downtown area of the City, generally extending from El Camino Real to the East, Webster Street to the West, Lytton Avenue to the North and Addison Avenue to the South (east of Emerson Street, the boundaries extend only to Forest Avenue to the South). Reference is hereby made to the map of the District attached hereto as Exhibit "A" and incorporated herein by reference for a complete description of the boundaries of the District. SECTION 6. The City Council hereby declares its intention, in addition to any assessments, fees, charges or taxes imposed by the City, to levy and collect an assessment against businesses within the District for fiscal year 2014 (July 1, 2013 to June 30, 2014). Such assessment is not proposed to increase from the assessment levied Not Yet Approved 120319 jb 0131058 2 and collected for the prior fiscal year. The method and basis of levying the assessment is set forth in Exhibit "B" attached hereto, and incorporated herein by reference. SECTION 7. The types of improvements to be funded by the levy of an assessment against businesses within the District are the acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more. The types of activities to be funded by the levy of an assessment against businesses within the District are the promotion of public events which benefit businesses in the area and which take place on or in public places within the District; the furnishing of music in any public place in the District; and activities which benefit businesses located and operating in the District. SECTION 8. New businesses established in the District after the beginning of any fiscal year shall be exempt from the levy of the assessment for that fiscal year. In addition, non‐profit organizations, newspapers and professional "single‐person businesses," defined as those businesses which have 25% or less full time equivalent employees, including the business owner, shall be exempt from the assessment. SECTION 9. The City Council hereby fixes the time and place for a public hearing on the proposed levy of an assessment against businesses within the District for fiscal year 2013 as follows: TIME: 7:00 p.m. or soon thereafter DATE: Monday, May 6, 2013 PLACE: City Council Chambers 250 Hamilton Avenue Palo Alto, California 94301 At the public hearing, the testimony of all interested persons regarding the levy of an assessment against businesses within the District for fiscal year 2014 shall be heard. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings must be in writing and shall clearly set forth the irregularity or defect to which the objection is made. Every written protest must be filed with the City Clerk at or before the time fixed for the public hearing. The City Council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Not Yet Approved 120319 jb 0131058 3 Each written protest must contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with the requirements set forth in this paragraph will not be counted in determining a majority protest (as defined below). If, at the conclusion of the public hearing, written protests are received from the owners of businesses in the District which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent (i.e., there is a majority protest), no further proceedings to levy the proposed assessment, as contained in this resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the District, those types of improvements or activities shall be eliminated. SECTION 10. For a full and detailed description of the improvements and activities to be provided for fiscal year 2014, the boundaries of the District and the proposed assessments to be levied against the businesses within the District for fiscal year 2014, reference is hereby made to the Report of the Advisory Board. The Report is on file with the City Clerk and open to public inspection. SECTION 11. The City Clerk is hereby authorized and directed to provide notice of the public hearing in accordance with law. // // // // // // // // Not Yet Approved 120319 jb 0131058 4 SECTION 12. The Council finds that the adoption of this resolution does not meet the definition of a project under Section 21065 of the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Senior Assistant City Attorney City Manager _____________________________ Director of Administrative Services _____________________________ Director of Planning and Community Environment 934 - 9 4 4 927 932 233 281 933 - 9 3 7 943 327 1001 942 469 475 744 459 832 801 A P T 1 - 5 427-453 920 912 362 370 900 838 846 471 459 835 - 8 5 5 460 815 840836 834 845 400 803 928 930 931933 835 - 8 3 7 831 - 8 3 3 451453 802800 810 - 8 1 6 818 - 8 2 0 828 - 8 3 0 817 - 8 1 9 823 - 8 2 5 567-569 559563 536 526 100 1 101 1 - 540 483 904 912 468 918 926 537 965-971505-507 519-521 939-945 931-935 923-925 518-520 539541543 515-517 809811 420 1001 1011 1010 376 370 980960 990 34 354 326 426 4 1000 448 944 471 483948952 959947925 915 933 935 425-443 451449 463-465 936-940 458 460 440 428 426 527-533 543 551 510520 558-560 903 825 837 581 575 940934 813-823 501-509 511-519 521-529 531-539 541-547 556 596 904 926 561-567 569 845 580 574 566 991-997 136 610 116-122 150 535529525 542516140 102 116 124 163 145 566 556 167 528 643635 635 645-685 660-666 620 180 164 158156 624 628 632 636 640 644 617 621 151-165 171-195 203 642640636 200 151 115 125 135 514 101 440 444 436432 427 425 117119 630616 208 228 220 240-248 575 530- 534 536 540 552 177 156 201 209 215 225 595 229231 611-623 180 508500 625-631 170 172-174 542 544 538- 542 552548546 541- 547 230-238 734 723 721 702- 730220-244 744 701 731 755757 771 200 160 728-732 762- 776740-746 250 275 270 255741 265 724 730 651 221-225 227 668 707 205 201 203451449 209 219 221 233 235450460470442444 400 420 430 411 425 429 185 165 181 412 250 420 245 171-169 441- 445 435- 439 346344 333 335 342 344 431 460 450 235530 220 220B 222 240 514278 274 270 250 545 540 251485255 271 281 300 310 301 581 259-267 533535537 261 267 518-526 532-536 520-526 530-536 271 281 252 270 240-248 202-216 228226 234 238 244 242 210- 216 228- 234 223- 229 209 215 247-259 240 232230 311-317 251 344 326 340 337339 323 317 400 420 332 330 314 353 355 367 305 347 265272-278 418 319 321- 341 328 330 300-310 431401 366 436 426#1-7 369 335319 390 301 315 375 307-311 325330 3321&23301-3 324 326316 318 373- 377 416-424 361 338 340 560 345 321325 315 529 285 555 650636 6281-12 628A-E 385 365 375380 345 664 325650-654 661635300 690 675 555541-549533 535- 539 318-324 326 352 425 439-441 435429425 415-419 405403453 461 383460 502 510 526 520 540 499 467 459 439 425 555 400 436-452 456 379 370-374 376 380-382 384-396 550-552 364 360 431 440-444 423 499 475 421-423 431-433 432 428 460-476 450 635 446 430 400 745 720706 385744734 724-730 720712704 360 351 315737 332 300 653-681 683685 512 501619 609605 518 482 486 496 610 630 455 400 651-687 543-545 532534 542544 550 552 554 556 558560562564 635-6 643-6 470 313 334 333 325326 342 303301 229 336 308 310 312 316 318 311 331 315 319 317 321 335 228220 356-360 347-367 351 357 369-379360 258- 296 350 210 204 302-316 379310 320 328 332 340 437 412 311A-B 404 313 325 327 333 407 401385 411 452 378-390 360 - 1A - 1C360 - 2A - 2C360 - 3A - 3C360 - 4A - 4C360 - 5A - 5C360 - 6A 344-348 418420 482 328 456 321 325 330204218 236 240 250- 252 477 475 467 457 453 249235225221 201 60 275505-509 239- 243 209- 213 210-214 513-519 460 474472228- 230 535 558 201 16 12 20 209 215 223 231 521 80 239-245 530-540 544-554 212-216 218-222 333 335- 337 351 457451 465 463 489-499360 530 480 420 430 480 463 451443437411405 419405401 441 480-498 347 351 355 359 525 430 473 332- 342 425415 400 570 568 556 550 543 327321315305 343 515 525 551 555 328 309-311 518-528 536-540 552-554 558-562 573 A-E 591-599 557-571 330-332 318-320 406-418 417 542548568 524 550 500-528 578 564 550 546 540 530 531-535 541 505 525 537 555 565 571 530 619-6 520 440-446 579 567 523610 600 555 581420-438 437 566 224 228A-F 244 579 575 565 559 251 355A-J 335329 604 576 566 345-347 243245 257 25920921922723502 505 610-616 727 678 676 674672 642 636-638 567 555 711 701 705 725 525 759 730 718 734 738-740 760 746-750 701 721-7 600 827 835 899 850 530 609 759 7517537 737-62611 601 600 1013 10041000 1006 1001 623 137 145 700 780 790 744 111700 753 100 825805 33 51 75 63 841 44 675 49 41 711 799 703 100 101 139654 625 160 1001 1005 1009 1010 1004 930 975945929931 948 181 940 960 145900 955 999875 853 925 81 855 901-907 909 87 98 917 921 925 735 849 707 847 842828 820248 230-232 212 825 829 833 839 800 812 818 882 165831 801 815 809801 841 791153 718 774 761 795745 201 209 834 836 845 895 926 190 934 942 948 203 209 219 225 929200 240 904 910 926 270 935 904 909 909A 217 222 148 171 421 130 312 318 324 317 301 186 192 323 329 151 325 329 334 131 129 355301 235 258 212 163 115 291247 210 201 207 64 202 235 251249 252 247 244 250 177220 261251-257 205245 231225213205 70 2 206 234 240 183 251 270 241-247 215- 237 210-216 219 235 62 202 245 54 52 50 203 215 221 313-317318 220- 224 238 542-550 531-539 532 759 223-239 905 911-917907 188 190 251-293 202 206 208 210 212 216 220 1008 275 539 201 400 27 168 865857 302 324 340 795 848 918 903 903A 408 412 440 483A - F 435 751 735 745 532 210 727 733 335 328 330 345 214 350 800 806 441 441A 230302306308312316 301 303 305 307 309 325 251 807 821 829 801 818-824 420 424 430 832A 832 842A 842 852A 852 862A 862 872A 872 351A 351 355A 355 359A 359 363A 363 367A 367 425 911 943 951 918 936 940 944 271 253 241 301 319 919A919 935 949 928 936 940-946 353 264 367 361 310 1005 1010 423425413 - 419 457-467 469-471 473-481 454 729A-D 733-743 734-740 724-732 936 824-828 920 949943941 715 95 445 324 328 545 590 425 447 827 565585 595 904 315 507 561 706 536 200 100 280-290 150 158 164 276 516 698 161 159 157777 132 127 180 528 120 247 372 524 548 550 538 152 345 336 515 658 227 27 29 539 115 135 321 558#200-202 558#C&D 965 140 350 808 915 461 435433 945 1012 421 727A-C 218 255 206 739 260 840 650 642 351 451 551 375 530 643 415 12 700 802 99 89 87 901 560564 568 572 576580584588592594 906908 910 912 914 916 918 920 922 924 548 423 668 901 305 -313 423 405 352354 611 320322 346 323 471 484 528 426 264 430 1001 508 756- 760 940 930 544546 515 7 745 7 549 211213 151 160 257 433-457 482 330 349 401 539 440 691 755 67 312 202 651 443445 447 716 218 398 998 262 335 218 640-646506 327 469 303 401 403 254 401 91 40 101 819 301 725 595 705 541 QuarryRoad HomerAvenue Lane 8 West Medica lFoundation Way Lane 7 West Lane 7 East EncinaAvenue El Camino Real UrbanLane Wells A venue ForestAvenue High Street Emerson Street Ch a n n i n g A v e n u e Alma Street El Camino Real Mitchell Lane EverettAvenue LyttonAvenue Lane 15 E High Street Alma Street Bryant Street Lane 6 E Lane 11 W Lane21 High Street Gilman Street HamiltonAvenue UniversityAvenue BryantCourt Lane30 Florence Street Kipling Street Tasso Street Cowper Street EverettAvenue Waverley Street Cowper Street Webster Street EverettCourt LyttonAvenue Lane A West L L La AddisonAvenue ForestAvenue Downing Lane HomerAvenue La Lane 39 Lane 56 HamiltonAvenue Webster Street Waverley Street Kipling Street Bryant Street Ramona Street AddisonAvenue Scott Street Webster Street Cowper Street AddisonAvenue ChanningAvenue Ramona Street PaulsenLn Lane 15 E Lane20W Lane20E UniversityAvenue CalTrain ROW Emerson Street Waverley Street Kipling Street Bryant Street Ramona Street Palo Road ay Pear Lane Lane 12 W Lane 5 E EverettAvenue HomerAvenue Emerson Street talm Dr ive Alma Street LyttonAvenue This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Zone A (Ground Floor) - Zone B (Upper Floors) abc Zone B 0' 500' Downtown Palo Alto Business Improvement District Area Map CITYOF PALOALTOINCORPORATED CALI FORNIA P a l o A l t o T h e C i t y o f APRIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2012 City of Palo Alto rrivera, 2012-04-30 16:57:54 CPA BID (\\cc-maps\gis$\gis\admin\Personal\rrivera.mdb) EXHIBIT A Retailers and Restaurants (100%) Service Businesses (75%) Professional Businesses (50%) Lodging Businesses (100%) Financial Institutions EXHIBITB Downtown Palo Alto Business Improvement District Annual BID Assessments ZONE A $225.00 (Under 6 FTE employees) (50%) $340.00 (6 to under 11 FTE employees) (75%) $450.00 (11+ FTE employees) (100%) $170.00 (Under 4 FTE employees) (50%) $260.00 (4 to under 7 FTE employees) (75%) $340.00 (7+ FTE employees) (100%) ZONED (75%) $170.00 $260.00 $340.00 $130.00 $200.00 $260.00 EXEMPT (25% or fewer FTE employees, including the business owner) " $ 60.00 (26% to under 1 FTE employees) (25%) $ 50.00 $110.00 (2 to 4 FTE employees) (50%) $ 90.00 $170.00 (5 to 9 FTE employees) (75%) $130.00 $225.00 (10+ FTE employees) (100%) $170.00 $225.00 (up to 20 rooms) (50%) $340.00 (21 to 40 rooms) (75%) $450.00 (41 + rooms) (100%) $500.00 $170.00 $260.00 $340.00 $500.00 N otel: For retail, restaurant, service, and professional businesses, size will be determined by number of employees either full-time or equivalent (FTE) made up of multiples of part-time employees. A full FTE equals approximately 2000 hours annually. Lodging facilities will be charged by number of rooms available and financial institutions will be charged a flat fee. Note 2: Second floor (and higher) businesses located within Zone A, will be assessed the same as similar street-level businesses located within Zone B. Note 3: Assessment amounts are rounded to the nearest ten dollars. The minimum assessment will be $50.00. Not Yet Approved 130422 jb 0131069 1 Resolution No. _______ Resolution of the Council of the City of Palo Alto Confirming the Report of the Advisory Board and Levying an Assessment for Fiscal Year 2014 on the Downtown Palo Alto Business Improvement District THE CITY COUNCIL OF THE CITY OF PALO ALTO DOES HEREBY FIND, DECLARE, AND ORDER AS FOLLOWS: SECTION 1. The Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq. (the “Law”), authorizes the City Council to levy an assessment against businesses within a parking and business improvement area which is in addition to any assessments, fees, charges, or taxes imposed in the City. SECTION 2. Pursuant to the Law, the City Council adopted Ordinance No. 4819 establishing the Downtown Palo Alto Business Improvement District (the "District") in the City of Palo Alto. SECTION 3. The City Council, by Resolution No. 8416, appointed the Board of Directors of the Palo Alto Downtown Business & Professional Association, a California nonprofit mutual benefit corporation, to serve as the Advisory Board for the District (the "Advisory Board"). SECTION 4. In accordance with Section 36533 of the law, the Advisory Board prepared and filed with the City Clerk a report entitled "Downtown Palo Alto Business Improvement District, Annual Report 2013‐2014" (the "Report”), and, by previous resolution, the City Council preliminarily approved such report as filed. SECTION 5. The boundaries of the District are within the City limits of the City of Palo Alto (the "City") and encompass the greater downtown area of the City, generally extending from El Camino Real to the West, Webster Street to the East, Lytton Avenue to the North and Addison Avenue to the South (east of Emerson Street, the boundaries extend only to Forest Avenue to the South). Reference is hereby made to the map of the District attached hereto as Exhibit "A" and incorporated herein by reference for a complete description of the boundaries of the District. SECTION 6. The City Council has adopted a Resolution of Intention, Resolution No. 9329 declaring its intention to levy and collect an assessment for fiscal year 2014 against the businesses in the District. SECTION 7. Following notice duly given pursuant to law, the City Council has held a full and fair public hearing regarding the levy and collection of an assessment within the District for fiscal year 2014. All interested persons were afforded the opportunity to hear and be heard regarding protests and objections to the levy and Not Yet Approved 130422 jb 0131069 2 collection of the assessment for fiscal year 2014.. The City Council finds that there was no majority protest within the meaning of the Law. All protests and objections to the levy and collection of the assessment and any and all protests and objections are hereby overruled by the City Council. SECTION 8. Based on its review of the Report, a copy of which has been presented to the City Council and has been filed with the City Clerk, and other reports and information, the City Council hereby finds and determines that (i) the businesses in the District will be benefited by the expenditure of funds raised by the assessment (ii) the District includes all of the businesses so benefited; and (iii) the net amount of the assessment levied within the district for the 2014 fiscal year in accordance with the Report is apportioned by a formula and method which fairly distributes the net amount in proportion to the estimated benefits to be received by each such business. SECTION 9. The City Council hereby confirms the Report as originally filed by the Advisory Board. New businesses established in the District after the beginning of any fiscal year shall be exempt from the levy of the assessment for that fiscal year. In addition, non‐profit organizations, newspapers and professional "single‐person businesses," defined as those businesses which have 25% or less full time equivalent employees, including the business owner, shall be exempt from the assessment. SECTION 10. The Adoption of this resolution constitutes a levy of an assessment for the fiscal year 2014 (commencing July 1, 2013, and ending June 30, 2014). The assessment formula, including the method and basis of levying the assessment, is set forth Exhibit “B” attached hereto and incorporated herein by reference. New businesses established in the District after the beginning of any fiscal year shall be exempt from the levy of the assessment for that fiscal year. In addition, non‐profit organizations, newspapers and professional "single‐person businesses," defined as those businesses which have 25% or less full time equivalent employees, including the business owner, shall be exempt from the assessment. SECTION 11. The City Council hereby declares that the proposed uses of the revenues derived from the assessments levied against the businesses in the District are for the following facilities and activities: The types of improvements to be funded by the levy of an assessment against businesses within the District are the acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more. The types of activities to be funded by the levy of an assessment against businesses within the District are the promotion of public events which benefit businesses in the area and which take place on or in public places within the District; the furnishings of music in any public place in the District; and activities which benefit businesses locating and operating in the District. // // Not Yet Approved 130422 jb 0131069 3 SECTION 12. The Council finds that the adoption of this resolution does not meet the definition of a project under Section 21065 of the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Senior Assistant City Attorney City Manager _____________________________ Director of Administrative Services 934 - 9 4 4 927 932 233 281 933 - 9 3 7 943 327 1001 942 469 475 744 459 832 801 A P T 1 - 5 427-453 920912 362 370 900 838 846 471 459 835 - 8 5 5 460 815 840836834 845 400 803 928 930 931933 835 - 8 3 7 831 - 8 3 3 451453 802800 810 - 8 1 6 818 - 8 2 0 828 - 8 3 0 817 - 8 1 9 823 - 8 2 5 567-569 559563 536 526 100 1 1011 - 540 483 904 912 468 918 926 537 965-971505-507 519-521 939-945 931-935 923-925518-520 539541543 515-517 809811 420 1001 1011 1010 376 370 980960 990 34 354 326 426 4 1000 448 944 471 483948952 959947925 915 933 935 425-443 451449 463-465 936-940 458 460 440 428426 527-533 543 551 510520 558-560 903 825 837 581 575 940934 813-823 501-509 511-519 521-529 531-539 541-547 556 596 904 926 561-567 569 845 580 574 566 991-997 136 610 116-122 150 535529525 542516140 102 116 124 163 145 566556 167 528 643635 635 645-685 660-666 620 180 164 158156 624 628 632 636 640 644 617 621 151-165 171-195 203 642640636 200 151 115 125 135 514 101 440 444 436432 427 425 117119 630616 208 228220 240-248 575 530-534 536 540 552 177 156 201 209215 225 595 229231 611-623 180 508500 625-631 170 172-174 542 544 538- 542 552548546 541-547 230-238 734 723 721 702-730220-244 744 701 731 755757 771 200 160 728-732 762-776740-746 250 275 270 255741 265 724 730 651 221-225 227 668 707 205 201203451449 209 219 221 233 235450460470442444 400 420 430 411 425 429 185 165 181 412 250 420 245 171-169 441-445 435-439 346344 333 335 342 344 431 460 450 235530 220 220 B 222 240 514278 274270 250 545 540 251485255 271 281 300 310 301 581 259-267 533535537 261 267 518-526 532-536 520-526 530-536 271 281 252 270 240-248 202-216 228226 234 238 244242 210- 216 228-234 223-229 209 215 247-259 240 232230 311-317 251 344326340 337339 323317 400 420 332330 314 353 355 367 305 347 265272-278 418 319 321-341 328 330 300-310 431401 366 436 426 #1-7 369 335319 390 301 315 375 307-311 325330 332 1&2330 1-3 324 326316 318 373- 377 416-424 361 338 340 560 345 321325 315 529 285 555 650636 628 1-12 628 A-E 385 365 375380 345 664 325650-654 661635300 690 675 555541-549533 535-539 318-324 326 352 425 439-441 435429425 415-419 405403453 461 383460 502 510 526 520 540 499 467 459 439 425 555 400 436-452 456 379 370-374 376 380-382 384-396 550-552 364 360 431 440-444 423 499 475 421-423 431-433 432428 460-476 450 635 446 430 400 745 720706 385744734 724-730 720712704 360 351 315737 332 300 653-681 683685 512 501619 609605 518 482486 496 610 630 455 400 651-687 543-545 532534 542544 550 552 554556 558560562564 635-6 643-6 470 313 334 333 325326 342 303301 229 336 308 310 312 316 318 311 331 315 319 317 321 335 228220 356-360 347-367 351357 369-379360 258- 296 350 210204 302-316 379310 320 328 332 340 437 412 311 A-B 404 313 325 327 333 407 401385 411 452 378-390 360 - 1A - 1C360 - 2A - 2C360 - 3A - 3C360 - 4A - 4C360 - 5A - 5C360 - 6A 344-348 418420 482 328 456 321 325 330204218 236 240 250-252 477 475 467 457 453249235225221 201 60 275505-509 239- 243 209-213 210-214 513-519 460 474472228- 230 535 558 201 16 12 20 209 215 223 231 521 80 239-245 530-540 544-554 212-216 218-222 333 335-337 351 457451 465463 489-499360 530 480 420 430 480 463 451443437411405 419405401 441 480-498 347 351 355 359 525 430 473 332-342 425415 400 570568 556 550 543 327321315305 343 515 525 551 555 328 309-311 518-528 536-540 552-554 558-562 573 A-E 591-599 557-571 330-332 318-320 406-418 417 542548568 524 550 500-528 578 564 550 546 540 530 531-535 541 505 525 537 555 565 571530 619-6 520 440-446 579 567 523610 600 555 581420-438 437 566 224 228 A-F 244 579 575 565 559 251 355 A-J 335329 604 576 566 345-347 243245 257 25920921922723502 505 610-616 727 678 676 674672 642 636-638 567 555 711 701 705 725 525 759 730718 734 738-740 760 746-750 701 721-7 600 827 835 899 850 530 609 759 7517537737-62611 601600 1013 10041000 1006 1001 623 137 145 700 780 790 744 111700 753100 825805 33 51 75 63 841 44 675 49 41 711 799 703 100 101 139654 625 160 1001 1005 1009 1010 1004 930 975945929931 948 181 940 960 145900 955 999875 853 925 81 855 901-907 909 87 98 917 921 925 735 849 707 847 842828 820248 230-232 212 825 829 833 839 800 812 818 882 165831 801 815 809801 841 791153 718 774 761 795745 201 209 834 836 845 895 926 190 934 942 948 203 209 219 225 929200 240 904 910 926 270 935 904 909909A 217 222 148 171 421 130 312 318 324 317 301 186 192 323 329 151 325 329 334 131 129 355301 235 258 212 163 115 291247 210 201 207 64 202 235 251249 252 247 244 250 177220 261251-257 205245231225213205 70 2 206 234 240 183 251 270 241-247 215-237 210-216 219 235 62 202 245 54 52 50 203 215 221 313-317318 220-224 238 542-550 531-539 532 759 223-239 905 911-917907 188 190 251-293 202 206 208 210 212 216 220 1008 275 539 201 400 27 168 865857 302 324 340 795 848 918 903903A 408 412 440 483A - F 435 751 735 745 532 210 727 733 335 328 330 345 214 350 800 806 441 441A 230302306308312316 301 303 305 307 309 325 251 807 821 829 801 818-824 420 424 430 832A 832 842A 842 852A 852 862A 862 872A 872 351A 351 355A 355 359A 359 363A 363 367A 367 425 911 943 951 918 936 940 944 271 253 241 301 319 919A919 935 949 928 936 940-946 353 264 367 361 310 1005 1010 423425413 - 419 457-467 469-471473-481 454 729 A-D 733-743 734-740 724-732 936 824-828 920 949943941 715 95 445 324 328 545 590 425447 827 565585 595 904 315 507 561 706 536 200 100 280-290 150 158164 276 516 698 161 159 157777 132 127 180 528 120 247 372 524 548550 538 152 345 336 515 658 227 27 29 539 115 135 321 558 #200-202 558 #C & D 965 140 350 808 915 461 435433 945 1012 421 727 A-C 218 255 206 739 260 840 650 642 351 451 551 375 530 643 415 12 700 802 99 89 87 901 560564568572576580584588592594 906908 910 912 914 916 918 920 922 924 548 423 668 901 305-313 423 405 352354 611 320322 346 323 471 484 528 426 264 430 1001 508 756 -760 940 930 544546 515 7 745 7 549 211213 151 160 257 433-457 482 330 349 401 539 440 691 755 67 312 202 651 443445 447 716 218 398 998 262 335 218 640-646506 327 469 303 401 403 254 401 91 40 101 819 301 725 595 705 541 Quarry Road Homer Avenue Lane 8 West Medical Foundation Way Lane 7 West Lane 7 East Encina Avenue El Camino Real Urban Lane Wells Avenue Forest Avenue High Street Emerson Street Ch a n n i n g A v e n u e Alma Street El Camino Real Mitchell Lane Everett Avenue Lytton Avenue Lane 15 E High Street Alma Street Bryant Street Lane 6 E Lane 11 W Lane 21 High Street Gilman Street Hamilton Avenue University Avenue Bryant Court Lane 30 Florence Street Kipling Street Tasso Street Cowper Street Everett Avenue Waverley Street Cowper Street Webster Street Everett Court Lytton Avenue Lane A West L L La Addison Avenue Forest Avenue Downing Lane Homer Avenue La Lane 39 Lane 56 Hamilton Avenue Webster Street Waverley Street Kipling Street Bryant Street Ramona Street Addison Avenue Scott Street Webster Street Cowper Street Addison Avenue Channing Avenue Ramona Street Paulsen Ln Lane 15 E Lane 20 W Lane 20 E University Avenue CalTrain ROW Emerson Street Waverley Street Kipling Street Bryant Street Ramona Street Palo Road ay Pear Lane Lane 12 W Lane 5 E Everett Avenue Homer Avenue Emerson Street talm Drive Alma Street Lytton Avenue This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend abc Zone A (Ground Floor) - Zone B (Upper Floors) abc Zone B 0' 500' Downtown Palo Alto Business ImprovementDistrict Area Map CITY OF PALO ALTOINCORPORATED CALI FORNIA P a l o A l t oT h e C i t y o f APRIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2012 City of Palo Alto rrivera, 2012-04-30 16:57:54CPA BID (\\cc-maps\gis$\gis\admin\Personal\rrivera.mdb)