HomeMy WebLinkAboutPBID Partners of Downtown Fresno Mgmt District PlanAGREEMENT BETWEEN CITY OF FRESNO AND DOWNTOWN ASSOCIATION OF
FRESNO FOR IMPLEMENTATION OF MANAGEMENT DISTRICT PLAN
(Downtown Property and Business Improvement District 2010-1)
This Agreement is entered on January 1, 2011, between the CITY OF FRESNO,
a municipal corporation of the State of California ("City"), and the DOWNTOWN
ASSOCIATION OF FRESNO, a nonprofit corporation, dba PBID Partners of Downtown
Fresno ("Organization").
WHEREAS, the Property and Business Improvement District Law of 1994,
(California Streets and Highway Code Section 33600 et seq.) (the "PBID Law")
authorizes the City of Fresno to form a Property and Business Improvement District
within the City of Fresno; and
WHEREAS, on May 6, 2010, the City approved Resolution No. 2010-89
Declaring the Intention to Form a Downtown Property and Business Improvement
District; and
WHEREAS, on June 24, 2010, the City Council held a public hearing regarding
the establishment of the PBID and the levy of the assessment, and at the conclusion of
the hearing determined that a majority protest against the proposed PBID assessment
did not exist, whereupon the City Council adopted Resolution No. 2010-135,
incorporated herein, establishing the Downtown Property and Business Improvement
District 2010-1 ("PBID") for a five year term expiring on December 31, 2015; and
WHEREAS, the Downtown PBID Management District Plan and related
Engineer's Report, (collectively "Management Plan"), incorporated herein, variously
describes the properties within the exterior boundaries of the PBID to be assessed and
benefitted, the method and amount of assessment, and the activities and improvements
to be funded by the assessment; and
WHEREAS, the Management Plan indicates that the Organization, with a board
of directors consisting primarily of property owners within the District as required by and
in full compliance with the Management Plan, will provide the activities and any
improvements described in the Management Plan and otherwise be charged with
managing the PBID's day-to-day operations including determining budgets, assessment
rates and monitoring service delivery; and
WHEREAS, the PBID Law requires that the City contract with the nonprofit
corporation designated in the Management Plan, whereupon the Organization, as PBID
owner's association will be subject to the Ralph M. Brown Act (Chapter 9 (commencing
with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), and the
California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division
7 of Title 1 of the Government Code), for all documents relating to activities of the PBID;
and
WHEREAS, the parties desire that the Organization act as "Owner's Association"
for the PBID, upon the terms and conditions herein; and
WHEREAS, on January 7, 2011, the Organization's Board of Directors
considered and approved this Agreement; and
WHEREAS, on December 2, 2010, the Fresno City Council considered and
authorized this Agreement.
NOW, THEREFORE, in consideration of the above recitals and for other good
and sufficient consideration, the City and Organization agree as follows:
ARTICLE I
RECITALS
1. All the foregoing recitals are true and correct and incorporated herein by this
reference as fully set forth herein.
ARTICLE II
DOWNTOWN PBID MANAGEMENT ADMINISTRATION & RESERVE
1. The Organization's Obligations:
(a) Management Plan. Provide all the activities and any and all improvements
described in the Management Plan and otherwise administer and implement the
Management Plan.
(b) Initial Report. By December 1St of the first year of operation, submit to the
City a written estimate of the PBID's budget for the next year. The estimate must
include the amount of any anticipated increase in the assessment.
(c) Annual Reports. By May 1St of each year of operation after the first year,
submit to the City a written report in accordance with Streets and Highways Code
section 36650 describing the Organization's activities in the previous calendar year.
(d) Subcontracts and Procurement. Award and administer all subcontracts
necessary for providing the activities and any and all improvements. For subcontracts of
$25,000 or more, utilize a fair and documented competitive process which awards
activities to the best value provider and awards improvements to the lowest price
responsive and responsible bidder, by: (1) soliciting proposals (for activities) and bids
(for improvements); (2) utilize a fair and documented competitive process which awards
activities to the best value provider and awards improvements to the lowest price
responsive and responsible bidder (3) make a written "Bid Record" for bid awards, after
the subcontract is awarded (the Bid Record must list the name and amount bid for each
bidder and include the facts supporting the award of the subcontract to the successful
bidder). For any subcontract, upon request, provide the City with a copy of the
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subcontract, documentation and the Bid Record as applicable. Notwithstanding the
foregoing, and to the extent consistent with controlling law and regulations, the DTA
shall seek participation in subcontracting and procurement from within the PBID
boundaries to the extent feasible.
(e) Compliance with Laws. Comply with all federal, state, and local laws,
including The Ralph M. Brown Act (Government Code § 54950 et seq.) ("Brown Act")
whenever matters within the subject matter of the PBID are heard, discussed, or
deliberated, and the California Public Records Act (Government Code § 6250 et seq.)
for all documents relating to activities of the PBID; the Organization shall ensure that its
board members will undertake training on the Brown Act, which may consist of self -
study materials, an online course, or in-person training; and secure all necessary
permits and authorizations for work on public property or within public right-of-ways
such as sidewalks, alleys, streets, pedestrian malls, public easements, public buildings,
and public -parking areas.
(f) Data Base. Maintain a complete data base of assessed properties within
the PBID. Update the data base at least once each year to reflect changed conditions
and to reflect accurately the status of assessed parcels. Provide a copy of the data base
when submitting the annual reports described in subsections 1(b) and 1(c).
(g) Indemnity. Organization shall indemnify, hold harmless and defend City
and each of its officers, officials, employees, agents and volunteers from any and all
loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort
or strict liability, including but not limited to personal injury, death at any time and
property damage) incurred by City, Organization or any other person, and from any and
all claims, demands and actions in law or equity (including attorney's fees and litigation
expenses), arising or alleged to have arisen directly or indirectly out of performance of
this Agreement. Organization's obligations under the preceding sentence shall apply
regardless of whether City or any of its officers, officials, employees, agents or
volunteers are negligent, but shall not apply to any loss, liability, fines, penalties,
forfeitures, costs or damages caused solely by the gross negligence, or caused by the
willful misconduct, of City or any of its officers, officials, employees, agents or
authorized volunteers.
If Organization should subcontract all or any portion of the work to be
performed under this Agreement, Organization shall require each subcontractor to
indemnify, hold harmless and defend City and each of its officers, officials, employees,
agents and volunteers in accordance with the terms of the preceding paragraph.
This subsection shall survive termination or expiration of this Agreement.
(h) Insurance. Throughout the life of this Agreement, Organization shall pay
for and maintain in full force and effect all policies of insurance required hereunder with
an insurance company(ies) either (i) admitted by the California Insurance Commissioner
to do business in the State of California and rated not less than "A -VII" in Best's
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Insurance Rating Guide, or (ii) authorized by City's Risk Manager. The following
policies of insurance are required:
(i) COMMERCIAL GENERAL LIABILITY insurance which shall be at
least as broad as the most current version of Insurance Services Office (ISO)
Commercial General Liability Coverage Form CG 00 01 and include insurance
for "bodily injury," "property damage" and "personal and advertising injury" with
coverage for premises and operations (including the use of owned and non -
owned equipment), products and completed operations, and contractual liability
(including, without limitation, indemnity obligations under the Agreement) with
limits of liability of not less than the following:
$1,000,000 per occurrence for bodily injury and property damage
$1,000,000 per occurrence for personal and advertising injury
$2,000,000 aggregate for products and completed operations
$2,000,000 general aggregate
(ii) COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be
at least as broad as the most current version of Insurance Service Office (ISO)
Business Auto Coverage Form CA 00 01, and include coverage for all owned,
hired, and non owned automobiles or other licensed vehicles (Code 1 Any Auto)
with limits of liability of not less than $1,000,000 per accident for bodily injury and
property damage.
(iii) WORKERS' COMPENSATION insurance as required under the
California Labor Code.
(iv) EMPLOYERS' LIABILITY insurance with limits of liability of not less
than $1,000,000 each accident, $1,000,000 disease policy limit and $1,000,000
disease each employee.
Defense costs shall be provided as an additional benefit and not included
within the above limits of liability. In the event Organization purchases an Umbrella or
Excess insurance policy(ies) to meet the minimum limits of insurance set forth above,
this insurance policy(ies) shall "follow form" and afford no less coverage than the
primary insurance policy(ies).
Organization shall be responsible for payment of any deductibles
contained in any insurance policies required hereunder and Organization shall also be
responsible for payment of any self-insured retentions. Any deductibles or self-insured
retentions must be declared to, and approved by, the City's Risk Manager or his/her
designee. At the option of the City's Risk Manager or his/her designee, either (i) the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects
City, its officers, officials, employees, agents and volunteers; or (ii) Organization shall
provide a financial guarantee, satisfactory to City's Risk Manager or his/her designee,
guaranteeing payment of losses and related investigations, claim administration and
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defense expenses. At no time shall City be responsible for the payment of any
deductibles or self-insured retentions.
All policies of insurance required hereunder shall be endorsed to provide
that the coverage shall not be cancelled, non -renewed, reduced in coverage or in limits
except after 30 calendar day written notice has been given to City. Upon issuance by
the insurer, broker, or agent of a notice of cancellation, non -renewal, or reduction in
coverage or in limits, Organization shall furnish City with a new certificate and
applicable endorsements for such policy(ies). In the event any policy is due to expire
during the work to be performed for City, Organization shall provide a new certificate,
and applicable endorsements, evidencing renewal of such policy not less than 15
calendar days prior to the expiration date of the expiring policy.
The General Liability and Automobile Liability insurance policies shall be
written on an occurrence form and shall name City, its officers, officials, agents,
employees and volunteers as an additional insured. Such policy(ies) of insurance shall
be endorsed so Organization's insurance shall be primary and no contribution shall be
required of City. The coverage shall contain no special limitations on the scope of
protection afforded to City, its officers, officials, employees, agents and volunteers. Any
Workers' Compensation insurance policy shall contain a waiver of subrogation as to
City, its officers, officials, agents, employees and volunteers.
Organization shall furnish City with all certificate(s) and applicable
endorsements effecting coverage required hereunder. All certificates and applicable
endorsements are to be received and approved by the City's Risk Manager or
his/her designee prior to City's execution of the Agreement and before work
commences. Upon request of City, Organization shall immediately furnish City with a
complete copy of any insurance policy required under this Agreement, including all
endorsements, with said copy certified by the underwriter to be a true and correct copy
of the original policy. This requirement shall survive expiration or termination of this
Agreement.
If at any time during the life of the Agreement or any extension,
Organization or any of its contractors or subcontractors fail to maintain any required
insurance in full force and effect, all work under this Agreement shall be discontinued
immediately. Any failure to maintain the required insurance shall be sufficient cause for
City to terminate this Agreement. No action taken by City hereunder shall in any way
relieve Organization of its responsibilities under this Agreement.
The fact that insurance is obtained by Organization shall not be deemed to
release or diminish the liability of Organization, including, without limitation, liability
under the indemnity provisions of this Agreement. The duty to indemnify City shall apply
to all claims and liability regardless of whether any insurance policies are applicable.
The policy limits do not act as a limitation upon the amount of indemnification to be
provided by Organization. Approval or purchase of any insurance Agreements or
policies shall in no way relieve from liability nor limit the liability of Organization, its
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board, officers, employees, agents, volunteers, persons under the supervision of
Organization, vendors, suppliers, invitees, consultants, sub -consultants, contractors,
subcontractors, or anyone employed directly or indirectly by any of them.
If Organization should contract or subcontract all or any portion of the
services to be performed under this Agreement, Organization shall require each
contractor or subcontractor to provide insurance protection in favor of City, its officers,
officials, employees, agents and volunteers in accordance with the terms of each of the
preceding paragraphs, except that the contractor's or subcontractor's certificates and
endorsements shall be on file with Organization and City prior to the commencement of
any work by the contractor or subcontractor.
(i) Independent Contractor Status. The Organization will perform under this
Agreement as an independent contractor and will be responsible for any federal, state,
or local taxes or fees that apply to payments it receives from the City under this
Agreement. The Organization's employees and subcontractors will not be employees of
the City and will not be eligible for any benefits provided through the City, including but
not limited to social security, health, workers' compensation, unemployment
compensation, and retirement benefits. Neither the Organization nor any of its officers,
employees, agents, volunteers, or subcontractors are or will be considered to be agents
of the City in connection with the Organization's performance under this Agreement.
0) Records/Audit. During the term of this Agreement, and for four year after
the term expires or terminates, the Organization agrees to maintain detailed records
pertaining to PBID administration sufficient to provide the basis for an unqualified
opinion by an independent auditor, including but not limited to records concerning
budgeting, expenditures, subcontracts (e.g., Bid Records), insurance, permits,
administrative expenses, and overhead. The Organization agrees to make all such
records available to the City at all reasonable times. If the City requests, the
Organization will obtain and provide to the City, at the Organization's sole cost, an
independent financial audit of the Organization's use of PBID funds for any or all years
of the PBID's operation.
(k) Reserve. During the term of this Agreement the Organization shall
establish and maintain a reasonable reserve to provide a contingency for unforeseen
PBID program needs and to provide a cushion for assessment delinquencies. Reserve
funds can also be utilized to repay PBID start-up loans, and to pay for costs associated
with PBID renewal.
(1) Fidelity Bond. During the term of this Agreement the Organization shall
furnish a fidelity bond to City, with a surety company licensed to lawfully able conduct
such business in the State of California, said bond and surety acceptable to City, as the
sole surety for Organization and each of its officers, employees, and other persons
engaged in its performance hereunder whose duties will involve the charging or
collecting of assessments, fees or charges or the handling or receipt of or access to any
City and/or PBID monies or funds. City shall be named as obligee thereof, in an amount
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not less than one million dollars ($1,000,000), conditioned upon the honest and faithful
performance of the duties of such persons.
(m) Delinquent Assessments. The Organization, unless otherwise instructed
by the City in writing, shall be responsible for collection of all delinquent PBID
assessments and related penalties, consistent with this Agreement, provided that
litigation in the name of the City shall not be commenced without the express written
consent of the City.
2. The City's Obligations
(a) PBID Administration. Regarding annual PBID proceedings, the City shall
coordinate with the Organization regarding Organization's preparation of the
assessment spread, assessment roll, annual City Council reports, any noticing by
Organization of property owners, and any changes to the PBID's organization or to the
cost -spread formulas, all subject to any/all required City Council approvals.
(b) Billing and Collecting. The City shall coordinate with Fresno County on the
annual levy and collection of PBID assessments. The City may pursue at its discretion,
but shall not be obligated under this Agreement to pursue, collection of delinquent PBID
assessment payments and related penalties from property owners.
(c) Payments to the Organization. Upon each receipt of collected PBID
assessments from the County of Fresno, the City shall deduct reasonable and
necessary administrative expenses and pay the Organization in trust the balance of the
funds within 30 days of receipt from the County of Fresno.
3. General Provisions
(a) General Fund Not Liable. Neither the taxing authority, nor the bonding
capacity, nor the general fund, nor any other fund or monies of the City other than
actual PBID revenues received from the County will be liable for payment of any
obligations arising from this Agreement. Those obligations are not a debt of the City, nor
are they a legal or equitable pledge, charge, lien, or encumbrance upon any of the
City's property, income, receipts, or revenues. This Agreement embodies all of the
Organization's reimbursement rights, and the City is not required to execute any
additional note or document.
(b) Notices. To be effective, any notice concerning this Agreement must be
served by placing it in the U.S. Mail, addressed as set forth below, with postage prepaid
(registered or certified mail, return receipt requested):
(1) If to the City:
City of Fresno
Downtown and Community Revitalization Department
2600 Fresno Street, Fresno, CA 92721
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(2) If to the Organization:
PBID Partners of Downtown Fresno
845 Fulton Mall, Fresno, CA 93721
A notice will be considered delivered two business days after the date of
deposit in the U.S. Mail. Any party may change its address for these purposes by giving
written notice of the change to the other party in the manner provided in this subsection.
(c) Effective Date, Term, and Early Termination. This Agreement becomes
effective on the date first above upon its complete execution by the parties. The term of
this Agreement begins on the effective date and ends at 11:59 p.m. on December 31,
2015. The City may terminate this Agreement early if it determines that the
Organization:
(1) Has misappropriated funds, committed malfeasance, or violated any
law in providing the activities and improvements described in the
Management Plan or in otherwise administering and implementing the
Management Plan; or
(2) Has materially breached this Agreement and has failed to cure the
breach within 30 days after receiving the City's written demand for cure.
Following early termination, the Organization will do all of the following as
expeditiously as is reasonably possible: terminate all of its activities on
behalf of the PBID, pay all obligations and administration costs it incurred
on behalf of the PBID, and return to the City all remaining PBID funds and
all assets acquired with PBID funds. The City will hold all returned funds
and assets on behalf of the PBID.
(d) Attorneys' Fees. The prevailing party in any litigation or arbitration brought
to enforce this Agreement will be entitled to recover reasonable attorneys' fees and
costs incurred in connection with the litigation or arbitration, through final resolution.
(e) Interpretation and Venue. Time is of the essence of this Agreement, which
is to be interpreted and applied in accordance with California law. Any litigation
concerning this Agreement must be brought and prosecuted in the Fresno County
Superior Court.
(f) Waiver. A party's failure to insist on strict performance of this Agreement
or to exercise any right or remedy upon the other party's breach of this Agreement will
not constitute a waiver of the performance, right, or remedy. A party's waiver of the
other party's breach of any term or provision in this Agreement will not constitute a
continuing waiver or a waiver of any subsequent breach of the same or any other term
or provision. A waiver is binding only if set forth in writing and signed by the waiving
party.
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(g) Entire Agreement. Each party acknowledges that they have read and fully
understand the contents of this Agreement. This Agreement sets forth the parties'
entire understanding regarding the subjects covered. It supersedes all prior or
contemporaneous agreements, representations, and negotiations regarding those
subjects (whether written, oral, express, or implied) and may be modified only by
another written agreement signed by both parties.
(h) Counterparts. The parties may execute this Agreement in counterparts,
each of which will be considered an original, but all of which will constitute the same
agreement.
(i) Authorized Agents. Except as otherwise provided by law, all notices
expressly required of City and not otherwise specifically provided for, shall be effective
only if signed by the City Manager of the City, or his/her designee. Organization's
contact person for purposes of this Agreement shall be its Executive Director. The
City's contact person for purposes of this Agreement shall be its Downtown
Revitalization Manager.
(j) Precedence of Documents. In the event of any conflict between the body
of this Agreement and any exhibit or attachment hereto, the terms and conditions of the
body of this Agreement shall control and take precedence over the terms and conditions
expressed within the exhibit or attachment.
(k) Amendment. This Agreement may be modified only by written instrument
duly authorized and executed by all the parties.
(1) Conflict of Interest. Organization shall comply, and require any of its
subcontractors to comply, with all laws and regulations including, without limitation,
conflict of interest laws, such as Government Code 1090 et. seq., the California Political
Reform Act (Government Code Section 87100 et. seq.) and the regulations of the Fair
Political Practices Commission concerning disclosure and disqualification (2 California
Code of Regulations Section 18700 et. seq.). At any time, upon written request of City,
Organization shall provide a written opinion of its legal counsel and that of any
subcontractor that, after a due diligent inquiry, Organization and the respective
subcontractor(s) are in full compliance with all laws and regulations. Organization shall
take, and require any subcontractors to take, reasonable steps to avoid any appearance
of a conflict of interest. Upon discovery of any facts giving rise to the appearance of a
conflict of interest, Organization shall immediately notify City of these facts in writing.
(m) PBID Funds held in Trust. All PBID assessments and funds in the
possession/control of the Organization hereunder are the property of the PBID and shall
be held in trust by the Organization solely for the benefit of the PBID.
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IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno,
California, the day and year first above written.
CITY OF FRESNO
By: X4"
Title: )4V Al
Date: /— 2 -
DOWNTOWN
DOWNTOWN ASSOCIATION OF FRESNO dba PBID PARTNERS OF DOWNTOWN
FRESNO
By: ~
Title:
y
Date: �- 3 - I/
ATTEST:
REBECCA E. KLISCH
City Clerk
By: 311 !
Dep Date
APPROVED AS TO FORM:
JAMES C. SANCHEZ
City Attorney
By: a 1- [
Robert R. Coyle Date
Senior Deputy
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City of
rnll�� ��►� REPORT TO THE CITY COUNCIL
Presented to Ciiyy Council
Date—Ll l - `1-10
Disposition_
December 2, 2010 UQ
AGENDA ITEM NO.t a�"rn1 D
COUNCIL MEETING } zi Zia
APPROVED BY
DEPARTMENT DIRECTO
CITY MANAGER
FROM: CRAIG SCHARTON, Director 61x�
Downtown and Community Revitalization Department
BY: ELLIOTT BALCH, Downtown Revitalization Manager���
Downtown and Community Revitalization Department
SUBJECT: AUTHORIZE AN AGREEMENT WITH THE DOWNTOWN ASSOCIATION OF FRESNO, AS
PBID OWNERS' ASSOCIATION, FOR IMPLEMENTATION OF THE MANAGEMENT
DISTRICT PLAN FOR DOWNTOWN PROPERTY AND BUSINESS IMPROVEMENT
DISTRICT 2010-1
RECOMMENDATION
Staff recommends that the Council authorize the City Manager to execute an Agreement, in substantially the
form attached as Exhibit A, with the City Attorney's approval as to form, for operation by a nonprofit corporation
of the Downtown Fresno Property and Business Improvement District (PBID).
EXECUTIVE SUMMARY
In action earlier this year, downtown property owners and the Council approved formation of a Property and
Business Improvement District (PBID) in Downtown Fresno. A Management District Plan created in the initial
stages of the PBID formation process set the rates of assessment and the categories of service to be provided
using the funds received.
The attached proposed Agreement (Exhibit A) places formal authority as the PBID Owners' Association with a
private Organization whose board is primarily composed of property owners who are paying the assessments.
The Organization, eventually to be known as the "PBID Partners of Downtown Fresno," uses the corporate
structure of the existing Downtown Association of Fresno. Under the Agreement, the Organization is
responsible for implementing PBID services under the adopted Management District Plan and under the
direction of the new board of directors. Staff recommends the Council authorize this Agreement.
BACKGROUND
Since the creation of the Downtown Fresno Property and Business Improvement District (PBID) earlier in 2010,
City staff and members of the private sector have been working together to prepare the new district to begin
operations on January 1, 2011. The steps taken include approval by the Council in November of the
disestablishment of the previous Business Improvement Area (BIA) and the associated levy on downtown
businesses.
In addition, a new PBID Owners' Association ("the Organization" as referred to herein and in the attached
Agreement) has been developed to represent the interests of property owners in managing the operations of
the PBID. The interim PBID Steering Committee has indicated its intent that the Organization, formed using an
PBID Management Agreement
December 2. 2010
existing nonprofit corporation, the Downtown Association of Fresno, eventually do business as the "PBID
Partners of Downtown Fresno."
Key elements of the Organization, contained in the new bylaws generated by consensus of the interim PBID
Steering Committee and adopted by the outgoing Downtown Association of Fresno board, include:
• A board of 17 persons, including the following:
o A representative of the City of Fresno, namely the Mayor or City Manager.
o A representative of the County of Fresno, namely the Chair of the Board of Supervisors or the
County Administrative Officer.
o A representative of Redevelopment Agency of the City of Fresno, namely the Agency Chair or
Executive Director.
o Twelve other property owners representing the different assessment zones within the district.
o Two stakeholders within the PBID area who may be property owners or tenants.
• Board elections will take place annually among the PBID-assessed property owners.
• Each of the Organization's four board officers will be a PBID-assessed property owner.
• The Organization will comply with the Ralph M. Brown Act and the California Public Records Act.
• The Organization will produce an annual report of its activities.
Broadly speaking, the proposed Agreement obligates the PBID organization to provide PBID-funded services
pursuant to the Management District Plan adopted with the new district. The Agreement requires the
Organization to report annually to the City on its activities. The Agreement requires the Organization to
maintain a $1,000,000 fidelity bond in favor of the City. The Agreement in turn obligates the City to pay PBID
assessment funds received from the County of Fresno to the Organization. The Organization is responsible
under the Agreement to pursue any collections of PBID assessment payments from delinquent property
owners, but may not initiate litigation in the name of the City without the City's permission.
Elections for the new Organization board are currently underway. If adopted today by the Council, the
proposed Agreement will become effective on January 1, 2011, following approval by the Organization board.
FISCAL IMPACT
In early 2011 the City Finance Department will begin receiving PBID assessment payments (of roughly
$300,000 each) twice yearly from the County of Fresno. Under state PBID Law, these funds must be directed
to the PBID Owners' Association for administration under the Management District Plan adopted by the
property owners. Under the proposed Agreement, the City will receive and disburse the PBID funds in trust to
the Organization, acting as the PBID Owners' Association, after deducting any reasonable and necessary
administrative expenses.
From a risk management perspective, the Agreement provides insurance requirements both for the
Organization and for other parties with which the Organization may contract for services.
By helping to revitalize the downtown economy, the PBID-funded activities performed under the Agreement are
anticipated to generate unknown, but potentially significant, additional revenue to the City in the form of tax
receipts and user fees.
Attachment:
Exhibit A — Draft Agreement Between City of Fresno and Downtown Association of Fresno for Implementation
of Management District Plan