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HomeMy WebLinkAboutStaff Report 6.A 01/05/2015Agenda Item #6.A .gALD� a0� Igo'$ < A/ DATE: January 5, 2015 TO: Honorable Mayor and Members of the City Council through City Manager FROM: William Mushallo, Finance Director/ ®,/ SUBJECT: Public Hearing to Levy an Annual Assessment for Fiscal Year 2015 for the Downtown Petaluma Business Improvement District and Approve Resolution Establishing the Levy for the 2015 Annual Assessment for the Downtown Petaluma Business Improvement District RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Establishing the Levy for the 2015 Annual Assessment for the Downtown Petaluma Business Improvement District BACKGROUND In November 2000, the Petaluma City Council adopted Ordinance 2104 N.C.S., establishing the Downtown Petaluma Business Improvement District (DPBID), codified as Chapter 6.04 of the Petaluma Municipal Code. A Board of Directors is established to administer the affairs of the District. Under Petaluma Municipal Code section 6.04.100, the Board of Directors must present the City Council with an Annual Report and related budget information for review and approval prior to adopting a Resolution of Intention to levy an annual assessment for Fiscal Year 2015. The fiscal year for the BID begins on January I". Notice of the Public Hearing was published in the newspaper on December 18, 2014, and the mailing with Exhibits 1 and 2 was completed on December 4, 2014. On December 1, 2014, the City Council reviewed the annual report and proposed budget for the 2015 DPBID assessment and adopted a Resolution of Intention to Levy an Annual Assessment for Fiscal Year 2015. The City shall not adopt, modify or otherwise amend any Fiscal Year budget of the DPBID that is inconsistent in any way with the Fiscal Year's budget as agreed to and presented by the DPBID Board of Directors except in the case of a written majority protest (regarding elimination or modification of any specific budget item) from the business owners which will pay 50% or more of the assessments proposed to be levied as to any specific budget item pursuant to GC Section 36525 (b). In such case the written protest regarding any specific budget item shall be grounds to eliminate or modify the expenditure from the District's proposed budget pursuant to the written protest; otherwise, the budget and levy shall remain unchanged. At the public hearing, the Council will hear any testimony for and against the proposed levy, including any protests, subsequent to which the Council should determine whether or not to approve the levy. Any correspondence received prior to distribution of the City Council packet is included as Attachment 6. Correspondence received after distribution of the packet will be provided to the Council at the meeting. FINANCIAL IMPACTS There is no cost to the City for this program. The DPBID Board of Directors administers the program. The DPBID Assessments are as follows: 32% Security $20,800 28% Marketing $18,200 20% Beautification $13,000 20% Administration $13.000 Total: $65,000 ATTACHMENTS 1. Resolution Establishing the Levy for the 2015 Annual Assessment for the Downtown Petaluma Business Improvement District 2. Notice of Public Hearing 4. Draft copy of billing statement for BID assessments 5. Draft copy of letter to businesses to accompany billing statement 6. Correspondence F1 Items listed below are large in volume and are not attached to this report, but may be viewed in the City Clerk's office. Current List of businesses being assessed. ATTACHMENT RESOLUTION ESTABLISHING THE LEVY FOR THE 2015 ANNUAL ASSESSMENT FOR THE DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT WHEREAS, on November 20, 2000, in accordance with California Streets and Highways Code Section 36500 et seq. ("the Act'), the Petaluma City Council adopted Ordinance 2104 N.C.S., later codified as Chapter 6.04 of the Petaluma Municipal Code, establishing the Downtown Petaluma Business Improvement District ("DPBID"), within the area described in Exhibit 1, which is attached to and made a part of this Resolution; and, WHEREAS, Section 6.04.050 of the Petaluma Municipal Code lists the types of improvements and activities that may be funded by the levy of assessments on businesses within the DPBID as follows: A. The acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following improvements: 1. Benches 2. Trash Receptacles 3. Decorations 4. Fagade Improvements 5. Permanent Landscaping B. Activities including, but not limited to, the following: 1. Promotion of public events which benefit businesses in the area and which take place on or in public places within the area. 2. Furnishing of music in any public place in the area. 3. Activities which benefit businesses located and operating in the area, including but not limited to, commercial shopping and promotional programs; and, WHEREAS, under Section 6.04.100 of the Petaluma Municipal Code, the Board of Directors established to govern the affairs of the DPBID must present the City Council with an animal report and budget for review and approval prior to the City Council consideration of levying a benefit assessment for the following fiscal year; and, WHEREAS, the requirements of Petaluma Municipal Code Section 6.04.100 are in accordance with the Act, which establishes annual procedures governing the levy of assessments pursuant to the Act, including preparation of an annual report, adoption of a resolution of intent giving notice of a public hearing at which written and oral protests may be made concerning levy of an annual assessment, and adoption of a resolution approving the annual report and levying the assessment; and, 3 WHEREAS, Section 36535 of the Act provides that public hearings on levy of annual assessments pursuant to the Act must be conducted in accordance with Sections 36524 and 36525 of the Act, which provide as follows: A. The City Council shall hear and consider all protests against the establishment of the area, the extent of the area, or the furnishing of specified types of improvements or activities within the area. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. B. Every written protest shall 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. C. Each written protest shall 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 this section shall not be counted in determining a majority protest. D. If written protests are received from the owners of businesses in the proposed area 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 that 50 percent, no further proceedings to create the specified parking and business improvement area or to levy the proposed assessment, as contained in the 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. E. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated; and WHEREAS, in accordance with Section 36533 of the Act, the City Council has reviewed and approved the 2015 DPBID Annual Report and Budget submitted by the DPBID Board of Directors at the regularly scheduled and duly noticed December 1, 2014 City Council meeting; and, WHEREAS, in accordance with Section 36534 of the Act, at the regularly scheduled and duly noticed December 1, 2014 City Council meeting, the City Council adopted a Resolution of Intention to levy the 2015 annual assessment for the DPBID; and, WHEREAS, the Resolution of Intention was published in a newspaper of general circulation in the City at least seven (7) days prior to the hearing; and, 4 WHEREAS, the 2015 DPBID Annual Report proposes no changes in the boundaries, method of assessment, or rate of assessment related to the DPBID; and the proposed DPBID 2015 Budget establishes the following budgetary priorities with estimated revenues and expenditures: 32% Security $20,800 28% Marketing $18,200 20% Beautification $13,000 20% Administration $13,000 Total: $65,000 WHEREAS, the Annual Report of the DPBID is on file at the City Cleric's office for public review and contains a full and detailed description of the DPBID improvements and activities to be provided for the 2015 fiscal year, the boundaries of the DPBID and any benefit zones within the DPBID, and the proposed assessments to be levied on businesses in the DPBID for the 2015 fiscal year; and, WHEREAS, in accordance with Section 36524 of the Act, on January 5, 2015, the City Council held the public hearing on the 2015 DPBID annual levy and heard and considered all protests against the annual levy, the DPBID area, the extent of the area, or the furnishing of specified types of improvements or activities within the area; and, WHEREAS, in accordance with Section 36525 of the Act, following the public hearing on January 5, 2015, all written protests received and not withdrawn were tallied and the City Council determined that written protests concerning the assessment, or particular improvements or activities to be funded by the assessment, were not received from the owners of the businesses in the DPBID area that will pay 50 percent or more of the proposed annual assessment. NOW, THEREFORE, BE IT RESOLVED that the Petaluma City Council hereby levies the assessment described in the DPBID Annual Report and Budget for Fiscal Year 2015, which is attached and made a part of this Resolution as Exhibit 2, to pay for improvements and activities within the DPBID in accordance with Chapter 6.04 of the Petaluma Municipal Code and the Act. 5 EXHIBIT I TO RESOLUTION BOUNDARY MAP EXHIBIT 2 TO RESOLUTION Tvnes of Businesses Assessed • Retail, Restaurant and Antique Collectives: Businesses that buy and resell goods or comestibles. Examples are clothing stores, shoe stores, office supplies and antiques shops as well as businesses that sell prepared foods and drinks. • Service Businesses: Businesses that sell services. Examples are beauty and barbershops, repair shops, most automotive -orientated businesses, entertainment businesses such as theaters, etc. o Lodeine: Includes renting rooms by the day or week to community visitors. • Professional Businesses: Includes: Architects, Engineers, Attorneys, Dentists, Doctors, Accountants, Optometrists, Realtors, Insurance Offices, Mortgage Brokers and most other businesses that require advanced and /or specialized licenses and/or advanced academic degrees. • Financial Institutions: Includes Banking, Savings, Loan and Credit Unions. Assessment by Tvne of Business Within Zones Note: Retail, restaurant and service businesses will be charged on size which will be determined by number of employees, either full-time or the equivalent made up of multiples of part-time employees while Antique Collectives will be charged by number of business licenses active within one location. 7 ZONE A ZONE B ZONE C Restaurants and Retailers (1-3 Employees) $150 $100 $50 (4-6 Employees) $250 $166 $83 (7+ Employees) $350 $232 $116 Antique (1-3 Dealers) $150 $100 $50 Collectives (4-6 Dealers) $250 $166 $83 (7+ Dealers) $350 $232 $116 Service (1-3 Emp/Operators) $100 $75 $50 Businesses (4-6 Emp/Operators) $200 $150 $100 (7+Emp/Operators) $300 $225 $150 Professional $125 $82 $41 Businesses Financial $500 $500 $500 Institutions Lodging (1-10 Rooms) $150 $150 $150 (11-25 Rooms) $250 $250 $250 (26+ Rooms) $350 $350 $350 Note: Retail, restaurant and service businesses will be charged on size which will be determined by number of employees, either full-time or the equivalent made up of multiples of part-time employees while Antique Collectives will be charged by number of business licenses active within one location. 7 December 4, 2014 NOTICE OF PUBLIC HEARING ATTACHMENT RESOLUTION APPROVING THE 2015 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT AND RELATED BUDGET; DECLARING THE INTENTION TO LEVY THE 2015 ANNUAL ASSESSMENT FOR THE DISTRICT; AND SETTING A PUBLIC FIEARING ON THE PROPOSED 2015 ANNUAL ASSESSMENT WHEREAS, on November 20, 2000, in accordance with California Streets and Highways Code Section 36500 et seq. ("the Act"), the Petaluma City Council adopted Ordinance 2104 N.C.S., later codified as Chapter 6.04 of the Petaluma Municipal Code, establishing the Downtown Petaluma Business Improvement District ("DPBID"), within the area described in Exhibit 1, which is attached to and made a part of this Resolution; and WHEREAS, Section 6.04.050 of the Petaluma Municipal Code lists the types of improvements and activities that may be funded by the levy of assessments on businesses within the DPBID as follows: A. The acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following improvements: 1. Benches 2. Trash Receptacles 3. Decorations 4. Fagade Improvements 5. Permanent Landscaping B. Activities including, but not limited to, the following: I. Promotion of public events which benefit businesses in the area and which take place on or in public places within the area. 2. Furnishing of music in any public place in the area. 3. Activities which benefit businesses located and operating in the area, including but not limited to, commercial shopping and promotional programs; and WHEREAS, under Section 6.04.100 of the Petaluma Municipal Code, the Board of Directors established to govern the affairs of the DPBID must present the City Council with an annual report and budget for review and approval prior to the City Council consideration of levying a benefit assessment for the following fiscal year; and WHEREAS, the requirements of Petaluma Municipal Code Section 6.04.100 are in accordance with the Act, which establishes annual procedures governing the levy of assessments pursuant to the Act, including preparation of an annual report, adoption of a resolution of intent giving notice of a public hearing at which written and oral protests may be made concerning levy of an annual assessment, and adoption of a resolution approving the annual report and levying the assessment; and WHEREAS, Section 36535 of the Act provides that public hearings on levy of annual assessments pursuant to the Act must be conducted in accordance with Sections 36524 and 36525 of the Act, which provide as follows: A. The City Council shall hear and consider all protests against the establishment of the area, the extent of the area, or the furnishing of specified types of improvements or activities within the area. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. B. Every written protest shall 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. C. Each written protest shall 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 this section shall not be counted in determining a majority protest. D. If written protests are received from the owners of businesses in the proposed area 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 that 50 percent, no further proceedings to create the specified parking and business improvement area or to levy the proposed assessment, as contained in the 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. E. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated; and 0 WHEREAS, the 2015 DPBID Annual Report proposes no changes in the boundaries, method of assessment, or rate of assessment related to the DPBID; and the proposed DPBID 2015 Budget establishes the following budgetary priorities with estimated revenues and expenditures: 32% Security $20,800 28% Marketing $18,200 20% Beautification $13,000 20% Administration $13.000 Total: $65,000 WHEREAS, the 2015 Annual Report of the DPBID is on file at the City Clerk's office for public review and contains a full and detailed description of the DPBID improvements and activities to be provided for the 2015 fiscal year, the boundaries of the DPBID and any benefit zones within the DPBID, and the proposed assessments to be levied on businesses in the DPBID for the 2015 fiscal year. NOW, THEREFORE, BE IT RESOLVED THAT subject to California Streets and Highways Code Section 36500 et seq. (the "Act") and a public hearing to be held pursuant to the Act, the Petaluma City Council intends to levy the assessment described in the DPBID Annual Report and Budget for Fiscal Year 2015 to pay for improvements and activities within the DPBID which is attached and made a part of this Resolution as Exhibit 2 in accordance with Chapter 6.04 of the Petaluma Municipal Code and the Act. The City Council reviewed and approved the DPBID 2015 Annual Report and Budget at their December 1, 2014 CoLmcil meeting, at the Petaluma City Council Chambers, 11 English Street, Petaluma, CA; and BE IT FURTHER RESOLVED that a public hearing will occur on January 5, 2015, at 7:00 PM, at the Petaluma City Council Chambers, 11 English Street, Petaluma, CA, concerning levy of the assessment proposed for the DPBID for fiscal year 2015. At the hearing, written and oral protests may be made in accordance with California Streets and Highways Code Sections 36524 and 36525. City Clerk's Office City of Petaluma 11 English Street Petaluma, CA 94952 EIn accordance with the Americans with Disabilities Act, if you require special assistance to participate in this meeting, please contact the City Clerk's Office at (707) 778-4360 (voice) or (707) 778-4480 (TDD). Translators, American Sign Language interpreters, crud/or assistive listening devices for individuals with hearing disabilities will be available upon request A minimum of 48 hours is needed to ensure the availabiligr of translation services. Li consideration of those frith multiple chemical sensitivities or other environmental illness, it is requested that you refrain from wearing scented products. The City Clerk hereby certifies that this agenda has been posted in accordance with the requirements of the Government Code. 1754406.1 10 ATTACHMENT 4 DRAFT COPY OF BILLING STATEMENT FOR BID ASSESSMENTS City of Petaluma, CA 2015 Downtown Business Improvement District (BID) Invoice t<;yvtuulSarvicr Remit To: Attn: Muni5ervices a 438Ea5t5haW Avenue. eox3bf a rresno. GA 93IT0 Phone: (866) 2403665. Email: sunnorti@muniservices.com . Website- "w.revds.com Is- Name1 Due on or before: March 31. 2015 IDB41 Delinquent: April 1. 2015 v6dtvn5tl 10% Penalty Phase: May 1, 2015 l�dr��l !4 ni5etic j ium st n iDitr, stata. zml YOUR BID CATEGORY: Loca[im: [city. tate zst. Sacf{Addrss'rf 1p -print LocDescrip B Category hemi icily, State ➢p] Downtown Petaluma Business Improvement District (BID) Assessment Fee Table Rutin FrmM innt aitl 4nhGm NIna1N9n" 91Gte"`evl IXPJ 3ld lash ¢Dm arnTisllfk'_6 Fxa'r�le5 a2Cd}IIYj SiTef, dbe nuie$, dace dlplalg antl an9gJe 6[Cpry eG Wal afi CaNnr�ts tn3 Scll ptsgara11md5 a^d tlltrk5.:; samca Bmtneeees: tLWnrsses iNt eE1I savors. Batp4s are beauty ar3 oator4stxps, rap+ardiope, oral atfartxave IxFaltal� b�6r+sF2s, adeitarment b>ynesea srli as [team, M jodoiOg M, ^"remrg rmm try ae aay xwEet n mmnnty MM l Yids AJdlutic, Engrams, Aticmeyb. Denlds, DD=AmDtWatts,C_t Maws, Rearo:b, MGM0111', &jong3ge Eme3 am rood me, lNblmsF 9la require a"moa-Aw g+3"atsaIteses aia'R adrar?al w eltre . Finnneig "Indubes amiang, F,aAdJ6, LL= and cleat unite .: tmantalJla Coag=9888 RmkmandRt mmn. Schep 10 93 etreloy- 5153M S 1C400 5 53.00 Shed f.0 4.0 en>Fldyea 5250.00 $166.00 $8300 Scfied f 1 7+employees '$35000 S23200 511&00 MruaServrvic`es ='^`i' lion- "oFBIgsl- ""`e' 2mte:A� Zme9 ne"c' Intemal,,C.ode Armrrye CeBecdves� Soled 20 03 deales 5157.00 $ VOLD 5 MOD Scfxd 20 4-6deakrs :$250.00 $160.00 S 8300 Scfr-d 20 7+dealers $350.00 $23200 5116.00 L �^i1d4m21�P._.��. a:.v;..: .t,..v..;•_ .__. Servrce B eesfop es. Sctxd3'0 03 employeesiop_ratas S 100.40 $75.0 5 5090 Sched3.0 T+enr1oWe roperalo5 3300.00 $150.00 5150-00 Schep 3.0 7+employerJopaatsis S30t190 5225.00 5750.00 Sctod 40 Pmfessilxtal Businasses:� 5125.47 58200 541.00 mcrz<rau �Finarxra nsmudonsS- �. 500 ��5`5�CU *'1l�IIiiS Desptblhon oTRi+"sj-ors -� C --x,.; -s-yy �.Intemal Gide __.. . _......_� �..��P_t�^ •_,.�:.._. 7.._._....-. Scud 6.0 1-10�roams S 15D-00 $150.00 5 15190 Scfied 6.0 11-25 rodrs 5250.00 $25090 5MCI] scfxd bG 26+rcars $350.00 $350.00 5350M Enter 3 of employees. operators, dealers or rooms: tEmyvyvas am cWcutata4 m raa-maa haaaz. PM.Ma gynamy r*a ba adWC Wgaalw W W1 a b ffma WaalualmYJ From the table above. enter amount due: S IF Paid after March 31 ", 10% Penalty. S Total Due: flliaBe ChNJ(b Payabla Tb: TSC Tnai Acmtaaf nw..wmnoY.v,ne encr iY �.xec..n ro.n.+r.., gab hr vxaamrcca. w^.mm Yaam,a n.a.uv.we®*a4 ry.�mm a. r•�Y>,a �. r.., na w Y.,.ene 4Y,npans". Y:h6[IIYLCS LLL Yml .muCYfx Yf,.6aa1Culfw lalN a� 6ab tY� tt.f�G, tlb nlzM 4n. M1u M t�4lNuvf tlaC p!q Ynn��^'+-�.+e.+' 11 ATTACHMENT DRAFT COPY OF LETTER TO BUSINESSES TO ACCOMPANY BILLING STATEMENT City of Petaluma. CA Downtown Business Improvement District(1310) l \ty lkru Scavces, LLC -as aNn¢ustering agent 438 E ShattAvenue Box 367 Zx } Fresno, CA 93710 . `tel `t E.� �'N91KSBxvrG6 Bsiess Name DBA Addressl Address2 City, State, Tip nkrmServices Accourdt Dear B s4v ss Cvnerl Tax Manager. ^2015 CITY OF PETALUMA DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BIDp' The City of Petaluma Cty CCounal pains frith MiruServices, LLC for assistance in the colCtilon of its Dovetorn Business brpwnred Cstrict (BID) fess. This mailing is to hatsmti the 2015 Downtown Business Improvement Distrix fees kwaiice Ulm ¢ due on err before March 31, 2015 and becomes delinquent on Peril 1, 2015. This irvaim is based and is raiiAaled per your zone 4xabon. type of business, and number of employees. To verify your- calculation. oucalc lation. tbe Cry of Pafalurra uses data from the State Empicysrent Developmed (EDD) regarding the nuutrer of emproyees sumvfted to them Please be avare that l is im t that the m rnl a of en-Voyees is a=rrwefy cala6ated and reputed. Erryiorees are caudated an fun time hours (part time employees should be added together to get a full time equivalent). IF you have any questiau regaNeg zoning m rumba of enp[oyees. pPease mnW KniSevkes at :(006) 240-3665 or email MmServices Support at su000rtamuniservices_mm. MuniSemices, LLC. Attn: Petaluma BID 438 E Shaw Avenue Box 367 •: Fresno, CA 93718 z< (Alake Checks Payable To: Tax Trust Accourtl) The assessment was est3bished in Nmeember2fl07, when the Petaluma City Council adopted lhdauv 214 N.GS_ estabisiwg the Downham Business Improvement Distrix (BID). This occurredat the retest of the PeLftrma Doxntoxn Association (PDA), after an extensive puhlc hearing process, regdael by State Lax. During the pooess. Zonal business owners who were to be included h due BID had the opporhmityto protest the fpns#don of the district and turrrinate the Process. Hmeva, recognmng the utility of the BID. very few dere to oppose the BID and the District was forrned. The PDA Board serves as the BID Board of Directors and admirislets the Funds ad from you by the City. of Petaluma. The PDA does not have the aulhuity to change this ordm3noe wgrau exerrptia s. Amadng to the 2715 Annual Repot of the BID, approved by the Petaluma City Council in December 2014, assessment funds wfl be used as follow: 32% Domnfovm 5ecw8y 52QBOO 29% Domntown Alvirefi g $14,200 20% Dmvnm*n Beau 9:abbn $1$000 20% Administration $13 00P Taal: 5 6A, DW Pease support the Drmnmun Business Improvement Cistrrat by m+f®g yore tirrely payment as ixii©led on ma enclosed 6nudm Thank you for )cur mnfinued eTaism m3irrt3itan emnxricallyvitxamtand amadive rkxvra n. Sitccrely Yeas, MmServioes. LLC As administemg agent for Our Cly of Pet lurta 12