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2. The boundaries of the territory to be included in the BID are set forth in the Map, included in EXHIBIT A, attached hereto and incorporated herein by reference. The proposed area includes all businesses within the boundaries of the BID. There shall be no separate benefit zones within the BID. A true and correct copy of the Map is on file with the City Clerk of the City of San Leandro. 3. The types of activities proposed to be funded by the levy of assessments on businesses in the BID include the LINKS shuttle service and related activities. 4. Except where funds are otherwise available, the City Council intends to levy an annual assessment on businesses in the BID to pay for a portion of the activities in the BID. Businesses that have received a home occupation permit from the City to exclusively conduct business from one's residence, businesses with three employees or fewer, and nonprofit businesses falling under Internal Revenue Code Section 501(c)(3) are exempt from the proposed assessment and shall not be assessed. Further, businesses for which state or federal law prohibits the City from imposing an assessment upon will likewise not be assessed. 5. New businesses shall not be exempt from assessment in their first year pursuant to Section 36531 of the California Streets and Highways Code. 6. The method and the basis for levying the annual assessment on businesses in the BID is a fee of$21.00 per employee per year per business. Annually,the assessment may be increased in an amount up to the increase, if any, of the Cost of Living Index for San Francisco- Oakland-San Jose, All Urban Consumers. The assessment shall remain in effect for fifteen(15) years, and expire December 31, 2029. 7. The City of San Leandro may contract with the San Leandro Transportation Management Organization to provide the services specified above. 8. The City Clerk of the City of San Leandro is directed to give notice of the public meeting and public hearing as provided in Section 54954.6 of the Government Code and Sections 36523 and 36523.5 of the Streets and Highways Code. 9. A public hearing on the establishment of the proposed BID shall be conducted on Monday,November 3, 2014 at 7:00 p.m., or as soon thereafter as the matter may be heard, before the City Council of the City of San Leandro, in the City Council Chambers, City Hall, 835 East 14th Street, San Leandro, California. At this hearing, the City Council will hear testimony regarding the proposed area, including testimony from all interested persons for or against the BID,the extent of the BID, and the furnishing of specific types of activities. 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. All written protests submitted by affected business owners and received prior to the conclusion of this public hearing shall be tabulated to determine whether a majority protest exists. 10. A protest against the BID, or any aspect of it, may be made orally or in writing. An oral protest shall be made at the said public hearing. To count in the majority protest against the BID, a protest must be in writing. A written protest may be withdrawn from writing at any time before the conclusion of the public hearing. Each written protest shall contain a written RESOLUTION NO.2014-105 2