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WEST SAN LEANDRO SHUTTLE BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FY 2012-13 2 | Page In early 2004, during preparation of the FY 2004-05 budget, the SLTMO proposed a long-term revenue plan to provide sustainable ongoing funding for the LINKS. The funding model included contributions from the business community, grant funding and financial support from the Agency on an as-needed basis. For FY 2004-05, the SLTMO asked the City Council to establish a BID to assess the business community served by the LINKS an annual fee to pay for a portion of operating costs. With this guaranteed revenue source, the SLTMO would continue to seek grant opportunities to fund the remainder of the LINKS budget. After completing appropriate notices and public hearings as required by State law, on June 21, 2004, the City Council adopted Ordinance No. 2004-013 establishing the BID. The BID included a total of 380 businesses within the service area and was projected to generate $135,000 in revenue. The FY 2004-05 BID assessment was set at a base fee of $25, plus $10.56 per employee. Businesses with five or fewer employees, landlords, and non-profits were exempt from the BID assessment. The BID assessment imposed by the ordinance was to sunset after four years and expired on June 30, 2009. During FY 2004-05, the SLTMO and the City continued to pursue all available grant opportunities to support the shuttle program. The City was successful in obtaining a grant from the Bay Area Air Quality Management District (BAAQMD); and the SLTMO, in partnership with the Davis Street Family Resource Center (DSFRC). Since the LIFT grant from MTC was provided to fund transportation for DSFRC clients, the SLTMO expanded the LINKS route in January 2005 to include the DSFRC, located on Teagarden Street. The change in the service route to include DSFRC required the original BID to be re-formed to include additional businesses that lie within one-quarter mile of the expanded service area. In FY 2008-09, anticipating the expiration of the BID, the BID Advisory Board and the SLTMO recommended that the City Council re-establish the BID for another five year period. Similar to the process in June 2004, notice was sent to over 380 businesses within the BID service area and a public hearing was held as required by State law on April 6, 2009. After the public hearing, the City Council adopted Ordinance No. 2009-002 re-establishing the BID for the five year period of July 2009 to June 30, 2014. The employee-weighted votes to oppose the BID were less than 50% of possible number of votes, thus providing the City Council discretion to approve the Ordinance and re-establish the BID. Following the BID reauthorization, the BID assessments remained at the FY 2005-06 base fee of $25, plus $10.88 per employee. Businesses with five or fewer employees, landlords, and non- profits were exempt from the BID assessment. In FY 2011-12, the assessment for the base and per employee fees was increased for the first time using the CPI factor as authorized in Ordinance No. 2009-002. LINKS Shuttle Ridership LINKS ridership in FY 2011-12 totaled 125,990 (see attached, Exhibit A). Ridership increased by 25 percent in FY 2010-11 and dropped by 29 percent in 2011-12. It is assumed that ridership spiked in 2010-11 when AC Transit bus service was reduced to the West San Leandro area. The ridership decrease in 2011-12 coincides with the Kaiser construction and the related street work