8D Consent 2009 0202 - Laserfiche WebLink

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LINKS BID 2 January 27, 2009 The SLTMO is proposing the re-establishment of the BID for the purpose of covering approximately one-third of the costs of operating the LINKS Shuttle. The current BID comprises an area within one-quarter mile of the LINKS route while excluding those businesses that lie within one-half mile of the San Leandro Downtown BART Station (see attached map). The proposed assessment would also exclude businesses with five or fewer employees, landlords, non- profit businesses [501(c)(3)] and home based businesses. All other businesses within the District will be charged a base rate of $25.00 plus an additional $10.88 per employee annually. The BID includes approximately 400 businesses within the service area. The assessment would be collected along with the City's Business License tax. Annual assessments may be increased in an amount up to the increase, if any, of the Bay Area Cost of Living Index. The assessment would be for afive-year term (sunset June 30, 2014). The basic financial structure of the LINKS Shuttle program anticipates that at least one-third of the program's costs will be borne by grants from federal, state and regional authorities and approximately one-third will be covered by the BID, and the remaining balance will be covered by the City's Redevelopment Agency. The SLTMO is requesting the City Council begin the process of re-establishing the BID by adopting a Resolution of Intention (ROI). By adopting the ROI, the City Council is declaring its intention to establish the BID and to set a Public Hearing on March 16, 2009. The resolution also defines the boundaries of the proposed BID and specifies the amount to be levied on businesses within the BID boundary. Approval of the ROI does not obligate the City Council to approve the formation of the BID. This agenda item will set the public hearing date, require that those businesses within the assessment area be notified of the intention to re-establish the BID, and provide a written protest process for business owners in the proposed BID area. Protest votes are weighted by the number of employees according to the City's Business License records. For example, a protest vote from the owner of the XYZ Company having 20 employees will count as 20 votes against the BID. If, at the conclusion of the public hearing, there are written protests by business owners amounting to more than fifty percent (50%) of the total assessments, the BID will fail and cannot be formed; thus the current BID would expire June 30, 2009 as directed by the Ordinance 2005-017. Furthermore, no other attempt may be made to form the BID in the stated area for a period of one year. In the event that re-establishment of the BID fails, the original BID area will sunset in June 2009. Also, should the protest vote be 50% or less, the council has the discretion to not form the BID. Following Council adoption of the ROI to re-establish the BID, a packet of information will be sent to all businesses that pay the BID assessment. This packet will include the following pieces in a City of San Leandro envelope stamped "PUBLIC NOTICE BUSINESS IMPROVEMENT DISTRICT BID BALLOT" in red ink for emphasis. • BID Public Hearing Notice; • a map showing the shuttle route and the boundaries of the proposed BID; • a copy of the ROI, as required by law; and, • Aself-addressed protest card, as a convenience to those business owners that choose to register a protest. Current City Council Policy: Not applicable