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HomeMy WebLinkAboutStaff Report 4.B 01/04/2016Agenda Item #4.B DATE: January 4, 2016 TO: Honorable Mayor and Members of the City Council through City Manager FROM: William Mushallo, Finance Director SUBJECT: Resolution to Approve the 2016 Downtown Petaluma Business Improvement District Annual Report and Related Budget; Declaring the Intention to Levy the 2016 Annual Assessment; and Setting a Public Hearing on the Proposed 2016 Annual Assessment RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Approving the 2016 Downtown Petaluma Business Improvement District Annual Report and Related Budget, Declaring the Intention to Levy the 2016 Annual Assessment for the District, and Setting the Public Hearing on the Proposed 2016 Annual Assessment. BACKGROUND In November 2000, the Petaluma City Council adopted Ordinance 2104 N.C.S., establishing the Downtown Petaluma Business Improvement District (DPBID). In the Ordinance, codified in Chapter 6.04 of the Petaluma Municipal Code (PMC), a Board of Directors is established to administer the affairs of the District. Under PMC 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. The City Council cannot adopt, modify or otherwise amend the proposed budget of the district in a manner that is inconsistent in any way with the budget as agreed to and presented by the district board of directors except in the case of a written majority protest from business owners which will pay fifty percent or more of the assessments proposed to be levied. 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. Fundable improvements include, but are not limited to, the acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more including, benches, trash receptacles, decorations, fagade improvements, and permanent landscaping. The activities that may be funded include, but are not limited to, the promotion of public events which benefit businesses in the area and which take place on or in public places within the area; the furnishing of music in any public place in the area; and activities which benefit businesses located and operating in the area, including but not limited to, commercial shopping and promotional programs. The Petaluma Downtown Association (PDA) Board serves as the BID Board of Directors. The fiscal year for the BID begins on January 1 st. This report was presented at the December 7, 2015 City Council meeting but moved to the January 4, 2016 meeting because potential conflicts of interest of councilmembers resulted in no quorum. The types of improvements and activities included in the 2016 proposed budget for funding by the levy of assessments on businesses in the District are as follows: • 32% Security $20,800 • 28% Marketing $18,200 • 20% Beautification $13,000 • 20% Administration $13,000 Total: $65,000 A detailed listing of the activities included in these categories is provided in Attachment 7. DISCUSSION Pursuant to PMC Section 6.04.100, the district board of directors must annually present a budget for City Council review and approval prior to the beginning of each fiscal year. The purpose of this process is to comply with the Act provisions regarding public notice and hearing prior to establishing the benefit assessments for the following fiscal year. It is recommended that the public hearing be held on January 25, 2016. At that time the City Council will be asked to consider public comment and input on the proposed budget and the BID annual assessment. A draft version of the notice that is going out to approximately 600 businesses in the district boundary is provided in Attachment 4. MuniServices, LLC performed the BID billing and collection services for 2015. Mungle & Associates will carry out these services in 2016. The services include printing and mailing the BID notices and attachments, processing and depositing all payments, and preparing and submitting reports to City and PDA staff for periodic review. Mungle & Associates will mail up to 3 notices and make a reminder call approximately 15 days before the deadline to pay. A post office box in Petaluma will be acquired for receiving BID payments, and payments will be picked up weekly and processed for deposit into a BID bank account. MuniServices will continue to provide year -round delinquent account collection services and will work on collecting delinquent account revenue for calendar years 2012, 2013, 2014 and 2015. FINANCIAL IMPACTS Over the past ten years, the BID has received the following from assessments: • 2001 $27,633 • 2002 $37,202 • 2003 $23,862 • 2004 $53,300 N • 2005 $51,379 • 2006 $54,054 • 2007 $56,960 • 2008 $54,644 • 2009 $49,932 • 2010 $55,757 • 2011 $55,994 • 2012 $45,176 • 2013 $45,505 • 2014 $47,000 • 2015 $61,940 (includes collections from 2012, 2013, and 2014) Mungle & Associates' fee for calendar year 2016 billing and collection services includes a $500.00 one -time set up fee and $10.15 per business billed. The fee will be invoiced to the PDA and paid for by the PDA. MuniServices' fee for providing delinquent account collection services is 25 percent of the amount collected. ATTACHMENTS 1. Resolution Approving 2016 Annual Report and 2016 Budget and Declaring Intention to Levy Annual Assessment 2. DPBID Annual Report, Budget and Map for 2016 Fiscal Year 3. Ordinance 2104 N.C.S. (Exhibit 1 to Resolution) with Exhibit A to Ordinance 4. Draft Public Notice 5. Letter of Correspondence 6. Draft BID Invoice and Letter to Business Owners with Attachments 7. 2015 Fiscal Year BID Funds Received and Expenditures and Financial Information from the Petaluma Downtown Association 3 ATTACHMENT I RESOLUTION APPROVING THE 2016 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT AND RELATED BUDGET; DECLARING THE INTENTION TO LEVY THE 2016 ANNUAL ASSESSMENT FOR THE DISTRICT; AND SETTING A PUBLIC HEARING ON THE PROPOSED 2016 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: 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 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 M 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 WHEREAS, the 2016 DPBID Annual Report proposes no changes in the boundaries, method of assessment, or rate of assessment related to the DPBID; and the proposed DPBID 2016 Budget establishes the following budgetary priorities with estimated revenues and expenditures: 5 32% Security $20,800 28% Marketing $18,200 20% Beautification $13,000 20% Administration $13,000 Total: $65,000 WHEREAS, the 2016 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 2016 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 2016 fiscal year. NOW, THEREFORE, BE IT RESOLVED THAT subject to California Sheets 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 2016 to pay for improvements and activities within the DPBID which is attached and made a part of this Resolution as Exhibit 1 in accordance with Chapter 6.04 of the Petaluma Municipal Code and the Act. The City Council reviewed and approved the DPBID 2016 Annual Report and Budget at their January 4, 2016 Council 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 25, 2016 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 calendar year 2016. At the hearing, written and oral protests may be made in accordance with California Streets and Highways Code Sections 36524 and 36525. 0 ATTACHMENT 2 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT, BUDGET AND MAP FOR 2016 1. Changes in Boundaries: None are proposed. 2. Changes in the Basis or Method of Assessment: None are proposed. 3. Changes in Classification of Businesses: None are proposed. 4. Improvements /Activities to be Undertaken & Related Budget: As proposed in the budget below and detailed in Attachment 7. 5. Surplus/Deficit Carried Over from Prior Year: None 6. Contributions from Other Sources: None Downtown Petaluma Business Improvement District 2016 Budget Allocations 32% Security $20,800 28% Marketing $18,200 20% Beautification $13,000 20% Administration $13,000 Total: $65,000 Security - 32% - The PDA contracts for coverage of the general downtown area to be performed on a regular nightly schedule. (The administration of this contract is not to be confused with a separate contract not paid for with BID funds for the Keller Street Garage.) Marketing - 28% - These funds are used to supplement additional funds paid by individual merchants for the combined marketing efforts to create public awareness of events occurring in the downtown; i.e., Sidewalk Sale, Trick -or- Treat Trail, and other downtown events such as those listed under "administration." PDA develops joint marketing agreements with the merchants using these funds and utilizes the combined buying power of the PDA and merchant community to obtain favorable prices for advertising that would not ordinarily be available to the individual merchant. Beautification - 20% - A volunteer committee meets to consider requests for investing in beautification projects downtown. Administration - 20% - Collected funds go to the day -to -day operations of the PDA office. Cost centers include rent, salary expense, and event coordination (implementation of downtown events like Butter and Egg Days, Antique Faires (2), At and Garden Festival, etc.). 7 Types 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. • Lodj4injZ: 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. 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 $350 Note: Retail, restaurant and service businesses will be charged on size which will be determined by number of employees, either full -time or the equivalent made up of multiples of part -time employees while Antique Collectives will be charged by number of business licenses active within one location. F KKR 4 _ , r r ... .... . . . . d 3 Y ,r. ,mss. J T W-A fit yy ., x y. t}�!{ -� J 7J� y p )1 /�� t,s- r Fri ills's �r wi � �� 1 " x�t1 dptx �1�{�q�(}1> • , .� 1 .t �z `'�l � a1 t r ,.x f�l .y'. s ,,• : I f 7 jERill � 9 FI I E IDA %t ATTACHMENT 3 EXHIBIT 1 TO RESOLUTION 1 ORDxN.ANCE NO. 2104 RU, 4 '5 Introduced by Councilmember Seconded by Councilmember 6 = 7 NCatt Ma uguire . Pamela Torliatt 10' .12 AN O"FKANCx!, OF TM Cr"X CQu-NaL OF THl CM 4r:C, TALUMA.,' 13 CAL7F0 ZN3A; AU1� . CHAPTI{ R 6.04 ` O TRE, P I TA UM:A, MUMCIYAL CODE'' 14 ESTA.13LIS1 1NC• TI M )D owNT6wN PFTA.LumtA. .137USMSS 1WROVE, W, T DI$TRTCT 1.6 17 RECIT.ALS; 19 ` MI RE, AS„ on. September 18, 2.000, the City Council of Petalurna, on•'behalf of the City of 20' Petaluma, •'(the "City "), adopted Resolution 400177 N.C.S. (the ` *soludoi "`% declaring its 21 intention to establish a Parldng and:Business Improvement District (hereifnafter referred to as the 22 "District "), to levy a benefit assessment on all businesses, trades; professions; and vendors within 23 said )Jistrict, the proceeds of which shall be used for the public purposes Herein -described `to 24 benefit the businesses in the District, pursuant to the Parldng- and Busi6ess Improvement Aroa. 25 Law of 1989, Part 6 (commencing with -Soction 36500) of Division 18 of the California Streets 26 and.Mghways Code (the "Act" j; and, 27 28 WICM�REAS* pursuant to the .Art'and the Rcsoluliori, City conducted a public hearing, after 29 having gives due notice thereof as required by law, on October 16, 2000, at 7:00 PK at . City 30 HdU, II English Street, -Petaluma, CaMknia; and, 3 32 WRCRCAS, said public hearing has been Feld and the City Council has heard and considered 33 all oral and wfitten'protests and oilier comments regarding suckzproposed actions; and, Ord, 2104 N'CS Page 1 10 I 'WM1WAS, protests.in writing from businesses in the proposed District paying 50°j or more of 2 the proposed assessment have not been received; and, 4 ,VSrEERM.A:S, this City Council has ' now defurmined to establish the proposed District as- a 5, Parking and Business xmprovament .Area, to provide for the imposition of a. benefit assessment 6 and.to adopt" ordinance to such effect; and, 7 8 _'WHGI1AS, in the opinion of this City Council, the businesses witbin the District will be 9 benefited by tho 'expenditure of the funds raised by the assessments levied hereby in the manner 10 prescribed herein; and, 12 WMtREAS, this City Council may, for each of the purposes set forth ih Section 36510 & 36513 13 of the .pct, establish bno or more separate benefit zones based upon the degree of benefit derived. 14 from the formation of the District, and rn, iy impose a tiered assessment or charge within: each of 15 the benefit zones; and, 17 ' VB ESAS, all 'provisions of the Art 'applicable to the establishinoi , ' modification, or 18 disestablislimimt of a District shall apply to.the. establishment, thodification, or disestablishment 19 of benefit zones pursuant to the Aot, and the establishment or the'modification bf any benefit '. 20 zone shall follow the. saThe -procedure as-provided for under the establishment. of a parking and 21 business improvement distzict; .and, the disestablishment of a benefit zone shall follow the -same 22 procedure'as provide for disestabhshment. of a District; anal, •24 'WHEWtiAS, upon the request of the District Board a£ Directors, this City Council'shall: 25, commence t1ie proceedings required• by law to amend the Windaries, assessments or charges 26 established pursuant to this Ordinance subject to approval of the Board of Directors of the 27 District as expressly provided for - herein; said modifications being made pursuant to the 28 prmodural requirements of the Act, but no assessment or charge shall be-modified which. would 29 impair the ability of the District to meat the obligations of a contract to construct or 6p6rate 30, physical improvements in the District; and, Ord, 2104 NCS page 2 . 11 I 'WREREAS, adjustments may be made M' the assessments or charges to businesses in the 2 Distftct, or in the uses to which the revenue shall be puff, 'as' specified in this Ordinance and 3 subject to Board approval, provided such changes are made. by a supplemental Ordinance 4 adopted after a hearing before the City Council; and, 6 WRBXA8, for purposes of the assessments or charges to be unposed- pursuant td . this. 7 Ordinance, this City Council may mare a reasonable classification of businesses, giving 8 consideration• t(Y- various factors, including general benefit to businesses and the degree 'of benefit 9 received from District programs: and; 10 11 ,V MMRAS, the assessments or charges levied on businesses pursuant to this Ordinance shalt, to 12 then maximum extent.-feasible, be levied on the basis of the estimated benefit to the businesses 13 within the District.. 14 15 NOW, T)�REI FORE, THE. CITE' COUNCM OF TSC CZ'I`Y Off+' VN TALUMA DOES 16 O:RDA7N AS FOLLOWS: 18 Section X._ Resoltition• of Intention, Public Hearing and Findings, The Recitals hereof. which set 19 forth facts regarding the adoption of Council Resolutions, the coziduct of publid hearhigs. and ' 20 -certain findings of the City Council;,are true and correct and incorporated hereiiz by reference. 21 22 Section '2. CNAJ?TER. 6.04 is hereby added to the Petaluma Municipal Code; providing as 23 -follows: ' 24 ' 25. CHAPTER 6.04 DOWNTOWNPETALUMA. BUSINESS IMPROVEMENT DISTRICT. .26 27 6.04.010 DelxnitxOTJs. 28 In order to disti�guish between District businesses and for the purpose of calculating and 29 applying the amount of assessments owed, the following definitions shall apply; 30 31 Ord. 2104 NCS Fagg 3 12 I A. Retail Businesses; "Retail Businesses" .include all bmin.esses not covexed by other 2 definitions set'out in this section, at least fifty percent (50 %) of whose grass income is ' 3 derived from "xetail sales" as- that term -is defined under the California Sales and Use 'fax 4 Law, The fact that a substantial part of its business consists of sates other than retail sales 5 does ,not exclude said business from this classification so 'long as such other business 6 component do.es not, account for more than fifty percent (50 %) of said business' gross 7 incoixre; • 9 B. Restaurants: "Restaurant". businesses include cafes, eating establishments, sandwich 10 , shops, dinner houses, restaurants -and fast food services and other similar businesses; 12 C. Antique Collectives: "Antique, Collectives" • includes such businesses and business 13 locations that represent multiple dealers of aniique merchandise within one location.. 14 15 D, Service: "Service" businesses include businesses that cornbihe retail and product services. 16 Examples• are appliance stores, most automotive• - oriented businesses, 'repair 'shops, 17 repairing and'servicing businesses and service stations. Other businesses of a general 18 service typo nature such as general office, .news and advertising media, printers, renting-, 19 and leasing businesses, utilities, -.vending machine businesses, household finance 20 companies, antertainmeftt businesses and other similar businesses not otherwise included 21 in categories a, b, c, e., f; or g are included in tlus'section; 22 .. 23 . ' B, Lodging: "Lodging" businesses include inns, Hotels; motels, RV Parks and other similar 24 businesses; 25 26 F. Professional: "Professional" includes 'attorneys, _architects, accountants, engineers, 27 surveyors, physicians, dentists, optometrists, chiropractors and others in a .medical I 28 health service field, consultants, real estate bt- okers, :financial advisors, Iaboratorles 29 (including dental and optical),:hearing aid services, artists, photographers and designers, 30 31 Ord. 2104 NCS Page d 13 1 0r. Fi_aancial: Banks, savings•& lodns,, creditunions, etc. 3 . H, Calendar'Y'ear: "Calendar Year" means%fanuary 1st to and including December 31st of 4 the same year. 6 1, Bilbg Period: 'Billing period" shall refer to the period of any .portion of a calendar year 7 in which a business operation as defined above. 9 6.04.020 Establishment of Bou"adaries. 10 A Parking and Business Improvement District is hereby ,established pursuant to the Parlring and' 11 Business Tinprovement Area Lave of 1989, Streets and HigIaways Code Section 36500 et seq. The 12 boundaries of the Distiict and. the beriefit zones within the District shall be as set fofth on the 13 Exhibit "A ", as attached, to the Ordinance adopted to create said District and incorporated. herein. . 14 by reference. This District shall be Imown as the "Downtown Petaluma Business Improvement 15 District" (the "Dhstri e'). 16 17 6.04.030 Estab.11shment. of District Board -of Directors. 18 There shall be a Board of Directors ("Board ") of the Distrief to administer the affairs of the 19 District. Said Board shall be constituted of businesses within the District: Within the Board there 20 • shall• be a President, Nice-President, Secretary and Treasurer elected by the Membershiip, and 21 such other* officers as deemed necessary by the Board.. Such other officers shall b6 appointed by- 22 the Board of-Directors at their discretion. -All voting within the, District regardhng election of 23 Board Member$ anal any actions regarding the nohnal and routine conducting , of .District .24 Business shall be based on one (1) vote per assessed dollar, and said business fnust• be current in_ 25 payment. oftbeir-District assessment(s) to participate in such votes. . 26 27 6,04.040 El stablislimwt of Benefit.A.ssessnnent. . '28 All 'businesses, trades, and professions located within the District boundaries shown on. the 29 Bxbibit "A" referenced in Section. 6.04,030,-shall, commencing 7anuary 1, 2001, pay an annual 30 ' benefit assessment to the District in an amount adopted by,kQsolution of the City Council ofthe 31 ' City ofPetaluma. -Ord, 210 NCS :Page 5 14 1 _ 6:04.050 Purpose and Use of 13eneflt .A.ssessxn'ents. . 2 The typos of impxovements and activities proposed to be funded by the levy of assessments on 3 businesses in the District are as follows: 4 5 A. The- acquisition, construction, installation, or maintenance of any'tangible property with 6 an estimated useful He of five years or more including, but not 'limited to, the following 7 - Improvements., ' 8 1 Benches, • . 9 2 Trash xeceptacles; 10 3 • Decorations; 11 4 Facade improvements; 12 5 Pbrmanmt landscaping 13 . 14 B, ' Activities including but not fimitad to the following: 15 1 promotion of public ovents which benefit businesses in the area and which. take 16 place on'or in public places within the area, 17 2 Furnishing,of'music in any public place in the area; 1s 3 Activities which benefit businesses located aifd operating in the area, including 19 • but riot limited to commercial• shopping and promotional programs. 20 21 6.04,x60 Extlnsiozis From Benefit Assessment. .22 No person or business shall bo required t6 pay an assessment based on: (a) a residential use of 23 the property within, the District, or. (b) a non-pro-fit orgai&atibn as. defined by Section 501 (C) (3) 24 or (C) (6) of the Internal Revenue Service Code located within the District. 25 26 . 6.04.070 New �usiriess Assessment Waiver. 27 Any new business establisbed within the District shall notbe, required to pay.an assessment for 28 the Billing Period during which said business is initiated, The business will have been 29 considered initiated on the date ofisauaace of the business- license. This waiver, shalt not apply to 30' an existing business that has' changed ownerslllp or location witli* the District. City agrees to 31 supply the District with timely information regarding now-businesses initiated within the District, Ord, 2104 NCS Page 6 15 1 6,04.080 Collection ofDowntown'Beuefit Ass essment. 2 The benefit assessment authorized by this Ordinance for Downtown. Petaluma businesses 3 (Section. 5,0 hereoi), shall be billed and collected each Calendar Year: The ND'Advisory Board 4 may, from time to time, assess late charges on unpaid BID'assessiuent charges. 6 '6.04.690 voluntary Contributions to District, 7 Contributions to the District shall be permitted on a volunntary basis. The, boundary, of the 8 District shall not be modified as a result of the contribution, nor shall said contributing business 9 be considered a member of the District for, voting or other purposes. However, said business 10 'making a voluntary contribution may be entitled to participate in the programs of the District 11 upon a finding by the Board of Directors that the District derives a benefit from said-business' 12 participation in the program, , 14 5.40.100 Annual Budget Rroeess. 15 . Pursuant for the Act, it shall• be n6cessary fox the District Board of Directors to present an annual- 16 : budget for City Council review and approval prior to the beginning of each Fiscal Year.,' The 17 purpose of this process is to comply with the Act provisions regarding public notice and hearirig 18 prior to establishing the benefit assessments for the following Fiscal Year. City shall not adopt, 19 modify or,otherwlw amend any Fiscal.Year budget of the District that is inconsistent in any way 20 with said Fiscal Year's budget as agreed to and presented by the District Board of D9ire'ct= 21 e)cepi:•in the case of a written majority protest (regarding elimination or modification of any 22 specific budget, iteni) fiom business' owners• which will pay 50% or nXare of the. assessments 23' • proposed to be'levied as to any specific budget item pursuant to CSC Section 36525 (b), In such 24 case the written protest. regarding any sped -c budget item shall bq grounds to eliminate or 25- modify said.expendiWve. from the District's proposed budget pursuant to the written protest, 27 6.40.110. Decisions 1. 2.egardingExpenditur•e of Funds. 28 As provided for within the guidelines of SB 1424, decisions of'the District Board of Directors 29 regarding expenditure of all funds generated under this program shall be final. 30 31 Ord. 2104 NCS Wage 7 16 1 6.40.120 DistrietProceeds Do Not Offset City Services. 2 City specifically finds and declares that the funds derived from the District shall not. be used to 3 offset or. diminish current maintenance, capital improvement programs, including but not limited 4. to, public property arid• sid6wal k cleaning•, street cleaning -and maintenance,. tree maintenance, 5 restroom cleaning and maintenance. The City is not bound or obligated to• any specific amount 6 of funding to tie District, 7 $ 6.40,130 Dxsestablishm Ent of tl }e District, 9 Proceeding to; disestablish the District shall. be initiated by the City Council following the 10 , pi esentation of a petition to the City Council signed by business owners paying 50% or more of 11 the assessments levied in the District. Proceedings t6 disestablish the District shill follow the 12 procedures set forth in GC Section 36550. The City Council shall disestablish the District if, 13 following the public hearing prescribed in Section 36550 (b), written protests are not withdrawn 14 as to reduce the protests below the 50 %.level, In the event of,disestablishmdnt o£ the District, -. - 15_ remaining— rrevenues o the Distnct shall be r4mded to paying, business owners in a•, pro -rata 16 manner calculated, in the sarile manner as was used to establish the, most 'recent assessments 17 applied in the District. 19 Seotion_3, If any'section, subsection, sentence, clause or phrase of this ordinance is, for any 20 reason, field to be invalid or unconstitutional, -such invalidity or unconstitutionality shall not 21, affect the validity or constitution4lity of the remairiing portions of this ordinance, it being 22. expressly declared that this ordinance and each section, subsection, clause and phrase hereof 21 would have been prepared, proposed, adopted, approved and ratified irrespective of the fact that 24 • ' any one or more other sections, subsections, sentences, clauses, or phrases be declared invalid or 25 unconstitutional. 26 27 Section-4. The ordinance shall take effect upon the thirty-first (31st) day after its final passage. 29 Ord. 2104 NOS Wage S - 17 I INTRODUCED and ordered Posted/Published this 16th day of October. 2000, -ADOPTED this 2 20th day of November, 2000, by the following vote; 3 4 AYES: Healy, Keller, Cader- Thompson, Hamilton, Maguire; Vice Mayor Toxfiatt; Mayor 51 Thompson :6 7 NOES: None 8 9 ABSENT; None 10 .11 ABSTAIN: None 12 13 '14 - Mayor IS :. 16 .ATTEST: 1'7 19 Ci Cle ; Ord. 2104 NCS . Page 9 18 r ' r,, XMff A To ORDi 1ANCL 2104 N.C.S. m M. _- . David Glass Mayor Chris Albertson Teresa Barrett Mike Healy Gabe Kearney Dave King Kathy Miller Councibnembers Finance Department 11 English Street Petaliuna, CA 94952 Phone (707) 778 -4352 Fax (707) 931 -0667 E -Mail: finance@cipetalumaxa.us General Services Phone (707) 778 -4384 Purchasing Phone (707) 778 -4352 Fax (707) 931 -0667 E -Mail: finance @ci.petalunia.ca.us Utility Billing Phone (707) 778 -4350 Fax (707) 931 -0667 E -Mail: :itilitybills @cipetalunia. ca. its CITY OF PETALUMA POST OFFICE BOX 61 PETALUMA, CA 94953 -0061 January 6, 2016 DRAFT NOTICE OF PUBLIC HEARING ATTACHMENT 4 RESOLUTION APPROVING THE 2016 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT AND RELATED BUDGET; DECLARING THE INTENTION TO LEVY THE 2016 ANNUAL ASSESSMENT FOR THE DISTRICT; AND SETTING A PUBLIC HEARING ON THE PROPOSED 2016 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: 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 20 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 21 WHEREAS, the 2016 DPBID Annual Report proposes no changes in the boundaries, method of assessment, or rate of assessment related to the DPBID; and the proposed DPBID 2016 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 2016 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 2016 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 2016 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 2016 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 2016 Annual Report and Budget at their January 4, 2016 Council 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 25, 2016, 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 2016. 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 RIn 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, and /or assistive listening devices for individuals with hearing disabilities will be available upon request. A minimum of 48 hours is needed to ensure the availability of translation services. In consideration of those with multiple chemical sensitivities or other environmental illness, it is requested that you refrain fi ^onr 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 22 EXHIBIT 1 23 EXHIBIT 2 Downtown Petaluma Business Improvement District FY 2016 Annual Report and Budget 1. Changes in Boundaries: None are proposed. 2. Changes in the Basis or Method of Assessment: None are proposed. 3. Changes in Classification of Businesses: None are proposed. 4. Improvements /Activities to be Undertaken & Related Budget: As proposed in the budget below. 5. Surplus/Deficit Carried Over from Prior Year: None 6. Contributions from Other Sources: None Downtown Petaluma Business Improvement District 2016 Budget Allocations • 32% Security $20,800 • 28% Marketing $18,200 • 20% Beautification $13,000 • 20% Administration $13,000 Total: 55,000 $65,000 BID 2016 Proposed Projects P 1 Projected Revenue Total Possible $ 65,000 1 projected from total district data Expected $ 55,000 assuming 85% collections Proposed Projects I'I Expected Possible Notes Security Patrols $ 7,750 Private security patrols Thurs -Sun 10pm -4am 52 weeks At &T Interenet to host cam_ era $ 1,500 Monthly Internet AT &T camera contract ! $ 1,450 Lease of equipment expires 5/2016 AT &T smartnet maintenance $ 600 !Software maintenance Additional security /Education $ 6,300 Heightened security during holidays and peak times. Security education creation of pamphlet Possible security bike patrols Security 32% $17,600 $ 20,800.00 1 Destination marketing downtown $ 2,400 i Destination marketing ads & editorial in Chamber_ & Visitors guide Newspaper special sections $ 1,200 iDestination Downtown shopping Sidewalk Sale $ 1,000 ' Street banner $400,flyers $100 advertising $500 Harvest Days event $ 400 ! !,Banners, posters, flyers, radio, online and prints ads social media _ Valentines -for the Love of Petaluma $ 2,000 !Posters, banners, ads social media Trick or Treat $ 700 Posters, maps, ads, balloons Holiday Marketing season - 5 _ 4,900 ! Merchant Open house, balloons, horse & wagon, entertainment, flyers_, posters, ads Holiday shopping gift guide Sonoma $ 1,200 j 'Sonoma county Press democrat/Argus Online ads Press Democrat $ 500 1 Online ad click through to websit , Holiday shopping gift guide Morin i $ 366 Marin country ads (paid $1,500 offset by Visitors Program) Holiday lighting ' $ 295 j !Trees Putnam Plaza Radio ad campaign $ 439 'Radio_ Ad Marketing Campaign Marketing 28% $ 15,400.00 $ 18,200.00 Holiday Decorations $ 5,000 170 Holiday banners, 8 wreaths installation up and down, cleaning, updating and storage New spring banners I $ - 5,500 1 150% from sponsorship and 50% from BID Paint supplies for graffiti clean - up $ 500 I ' paint, supplies for graffiti clean up in downtown co_ re and garage Beautification 20% $ 11,000.001 $ 13,000 .00 1 Administration costs $ 1,300 1 Website updates maintenance $ 710 'Telephone & PG &E $ 400 Insurance $ 1,950 !Wages & benefits $ 240 !Office supplies $ 6,400 !BID processing (includes public noticing and payment processing) new local billing and Muni continued collections for 2012 -15 Administration 20% $ 11,000.00 $ 13,000.00 j Total $ 55,000.00 ! $ 65,000.00 1 24 Security - 32% - The PDA contracts for coverage of the general downtown area to be performed on a regular nightly schedule. (The administration of this contract is not to be confused with a separate contract not paid for with BID funds for the Keller Street Garage.) Marketing - 28% - These funds are used to supplement additional funds paid by individual merchants for the combined marketing efforts to create public awareness of events occurring in the downtown; i.e., Sidewalk Sale, Trick -or- Treat Trail, and other downtown events such as those listed under "administration." PDA develops joint marketing agreements with the merchants using these funds and utilizes the combined buying power of the PDA and merchant community to obtain favorable prices for advertising that would not ordinarily be available to the individual merchant. Beautification - 20% - A volunteer committee meets to consider requests for investing in beautification projects downtown. Administration - 20% - Collected funds go to the day -to -day operations of the PDA office. Cost centers include rent, salary expense, and event coordination (implementation of downtown events like Butter and Egg Days, Antique Faires (2), Art and Garden Festival, etc.). 25 Types 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. • Lodging: 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 Type of Business Within Zones 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 Businesses Financial Institutions $125 $82 $41 $500 $500 $500 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. 41 City of Petaluma, CA Downtown Business Improvement District (BID) Mungle & Assoc. - as administering agent 628 E. Washington St, Ste. A Petaluma, CA 94952 DRAFT Business Name DBA Addressl Address2 City, State, Zip Dear Business Owner / Tax Manager: �ra5s� BID Account #: ATTACHMENT 5 * *2016 CITY OF PETALUMA DOWNTOWN BUSINESS IMPROVEMENT DISTRICT (BID) ** The City of Petaluma City Council partners with BID for assistance in the collection of its Downtown Business Improvement District (BID) fees. This mailing is to transmit the 2016 Downtown Business Improvement District fees invoice that is due on or before March 31, 2016 and becomes delinquent on April 1, 2016. This invoice is based and is to be calculated on your zone location, type of business and number of employees. To verify your calculation, the City of Petaluma uses data from the State Employment Development (EDD) regarding the number of employees you reported to them. Please be aware that it is very important to check that you are accurately calculating the correct number of employees. Please note that employees are calculated on full time hours (part time employees should be added together to get a full time equivalent). if you have any questions regarding your zoning or number of employees, please contact Mungle & Assoc, at (707)778 -1716 or email BID at: petalumaBIDOemungle.com Munclle & Assoc. Remittance Address: Mungle & Assoc.. Attn: Petaluma BID 628 E. Washington St, Ste. A • Petaluma, CA 94952 (Make Checks Payable To: Petaluma BID) The assessment was established in November 2000, when the Petaluma City Council adopted Ordinance 214 N.C.S. establishing the Downtown Business Improvement District (BID). This occurred at the request of the Petaluma Downtown Association (PDA), after an extensive public hearing process, required by State Law. During the process, local business owners who were to be included in the BID had the opportunity to protest the formation of the district and terminate the process. However, recognizing the utility of the BID, very few chose to oppose the BID and the District was formed. The PDA Board serves as the BID Board of Directors and administers the funds collected from you by the City of Petaluma. The PDA does not have the authority to change this ordinance or grant exemptions. According to the Annual 2016 Report of the BID, approved by the Petaluma City Council in December 2015 assessment funds will be used as follows: 32% Downtown Security $ 20,800 28% Downtown Marketing $ 18,200 20% Downtown Beautification $ 13,000 20% Administration $13,00 0 Total. $ 65,000 Please support the Downtown Business Improvement District by making your timely payment as indicated on the enclosed invoice. Thank you foryour continued efforts to maintain an economically vibrant and attractive downtown. Sincerely Yours, Mungle & Associates As administering agent for the City of Petaluma 27 2�ziT a City of Petaluma, CA 2016 Downtown Business Improvement District (BID) F, 13 Invoice Remit To: Attn: Mungle & Associates • 628 E. Washington, Ste. A • Petaluma, CA 94952 Phone: (707) 778 -1716 e Email: petalumaBIDPcmungle.com . Website: www.petalumadowntown.com [Business Name] [DBA] [Address /] [Address2] [City, State, Zip] Due on or before: March 31, 2016 Delinquent: April 1, 2016 10% Penalty Phase: May 1, 2016 Location Information: YOUR BID CATEGORY: [Street Addressl , Street Address2] [Pre-print Category here] [City, State Zip] BID Account #: Downtown Petaluma Business Improvement District (BID) Assessment Fee Table Retail, Restaurant and Antigua Collectives:- Businesses that buy and resell goods or comestibles. Examples are clothing stores, shoe stores, office supplies and antique 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. Lodging: 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. Zone 6 Zone C Description Retailers and Restaurants; Sched 1.0 0 -3 employees $ 150.00 $ 100.00 $ 50.00 .Schad 1.0 4 -6 employees $ 250.00 $ 166.00 $ 83.00 Schod 1,0 7+ employees $ 350.00 $ 232,00 $116.00 _= _ Zone A Zone B Zone C- Intemal CsSde _Description >.i•T 1 5 1 7"T i Antique Collectives. Schad 2.0 0 -3 dealers $ 150.00 $ 100.00 $ 50.00 Sched 2.0 4 -6 dealers $ 250.00 $ 166.00 $ 83.00 Sched 2.0 7+ dealers $ 350.00 $ 232.00 $116.00 E - zone A Zone B Zone C "= r - - ; Description of Bustness Service Businesses: _ Sched 3,0 0 -3 employees /operators $ 100.00 $75.00 $ 50.00 Schad 3.0 4 -6 employees /operators $ 200.00 $150.00 $100.00 Sched 3.0 7+ employees /operators $ 300.00 $225.00 $150,00 Sched 4.0 P Professional Businesses: $ $ 125.00 $ $ 82.00 $ $ 41.00 Zone A - -Zone B Z Zone C Description of Busrt�e5s _ Z ��� }? F„ r� c ri A Sched 5,0 F _- � $ 500.00 $ $ 500.00 $ $ 500.00 - Zone A - - - Zong_�3 . .one C �^-- tDesc►iptian of Bustness - Enter # of employees, operators, dealers or rooms: (Employees are calculated on full -time hours. Part -time employees should be added together to get a full -time equivalent.) From the table alcove, enter amount clue: $ (Make Checks Payable To: Petaluma BiD) 28 City of Petaluma - BID / Business Update Form Remittance Address. Attn: Petaluma BID • 628 E. Washington St, Ste, A • Petaluma, CA 94952 • Phone: (707) 778 -1716 Email: petalumaBID(a.cmungle.com • Website: www.petalumadowntown.com BID Account #: Name of Business on File: Instructions: Please complete this form if you have any changes to your account. To ensure that we have the correct information regarding your business and the number of employees you have, please update applicable sections on this form and return with your BID payment and remittance form to Mungle & Assoc. at the address listed above. Thank you for taking the time to provide updated information on this form. Business Name: DBA: Business Mailing Address: Business Physical Address: Owner's Name: Business Phone: ( ) Contact Person: Email Address: Description of Business: Function of Company: _ Business Classification (select all that a Business ID: (Address/City/State2ip) (Street Address /City /State2ip) Owner's Phone: _ Business Fax: ( ) _ Contact Phone: ( ) ❑ Retail Business or Restaurant ❑ Service Business ❑ Antique Collectives ❑ Financial Institution ❑ Professional Business ❑ Lodging Type of Business (select one): ❑ Sole Proprietorship ❑ Governmental Agency ❑ General Partnership ❑ Professional Association ❑ Corporation ❑ LLP ❑ LLC –Single Member ❑ Other (please explain) ❑ LLC – Multi Member Form Completed By: Date Submitted: — Print Name: 29 -4 y low toy 1 slot Q AGO -� 45, ' a r HIM A 5 Act EQ goo n.= ` � r 14 Ems_ _ - ,, �a NJ 0 MEN 1 ITS 01" All En - Ti 55A -4 30 low toy 1 slot Q AGO -� 45, 5 Act EQ goo n.= ` � r 30 PETALUMA DOWNTOWN ATTACHMENT 6 ASSOCIATION Our mission is to contribute to the betterment of the Petaluma Historic Central Area and to promote and enhance its position as the city's retail and commercial center. December 7, 2015 The Honorable Mayor David Glass & Petaluma City Council Members Petaluma Downtown Business Improvement District - Financial Impacts• Over the past ten fiscal years, the BID has received the following from assessments: 2005 $51,379 2011 $55;994 2006 $54,054 2012 $45,176 2007 $56,960 2013 $45,505 2008 $54,644 2014 $47,000 2009 $49,932 2015 $61,940 included collections from 2012,2013 and 2014 2010 $55,757 This was the 4th year of Muni Services providing the billing of the BID. Overall collection of the BID is up due to. closer monitoring and pushing Muni to pursue collections. The BID was able to cover some of the key areas in keeping the downtown vibrant and safer during 2015, The BID advisory committee meets monthly to discuss priorities and this past year was to clean up the data base for billing, pursue outstanding delinquencies and create and RFP for a local BID billing service. Other priorities were to replace the 10 year old holiday banners , replacing them with a new fresh design, hardware, and wreaths to provide for a festive atmosphere. Costs cover installation, cleaning and storage of banners, wreaths and brackets. The Downtown security camera contract ends in May of 2016 and will not be continued. Discussions regarding additional nightly security patrols and possibly bike patrols are being looked at to increase safety downtown. Marketing and events are crucial to raising the profile of the downtown retail center throughout the year. The PDA Board and the BID committee have decided to move the billing from Muni Services in 2016 to a local company Mungle & Associates We believe that this will be a more cost effective way to manage the BID contract especially as,tt'hey have local business knowledge. Muni will continue with the collections process for those who are delinquent for 2012, 2013, 2014, 2015 and bill out the newly identified unbilled businesses for 2013 -15. The BID billing will include four items, a cover.letter; a BID invoice, a map of the BID area and a information update form to help us keep up with changes of address etc. The BID budget is allocated as follows: 32% Security $20,800 28% Marketing $18,200 20% Beautification $13,000 20% Administration $13,00 0 TOTAL: $65,000 Attached you will find an accounting of all BID expenditure's from 2005 thru 2015, a BID analysis and proposed BID expenditure for 2016. Also attached are example bills of zones within BID, which obviously will be changed to reflect the new billing company. You si cerel Marie M u ker Executive irector. depot Building • 210 Lakeville Hwy, Petaluma CA 94952 • www.PetalumaDowntown.com Ph: (707) 762 -9348 • Fax (707) 283 -0528 • Email: Info @PetalumaDowntown.com 31 Petaluma Downtown Association Bid Funds Received and expenditures For Fiscal Year Ending June 30, 2015 BID Percentages Date 07.01.14 Transaction Beginning Balance To /From Description 28% Marketing 11, 078.33 32% Security 2,753.45 20% Beautification 20,239.75 ATTACHMENT 7 20% TOTAL Admin - 10,749.29 23,32224 07.18.14 Deposits Bid Income 2,665.32 3,046.08 1,903.80 1,903.80 9,519.00 08.18.14 Deposits Bid Income 1,455.44 1,663.36 1,039.60 1,039.60 5,198.00 10.01.14 Deposits Bid Income 920.64 1,052.16 657.60 657.60 3,288.00 01.16.15 Deposits Bid Income 84.00 96.00 60.00 60.00 300.00 02.19.15 Deposits Bid Income 1,583.40 1,809.60 1,131.00 1,131.00 51655.00 03.13.15 Deposits Bid Income 2,775.64 3,172.16 1,982.60 11982.60 9,913.00 05.05.15 Deposits Bid Income 1,377.32 1,574.08 983.80 983.80 4,919.00 05.08.15 Deposits Bid Income 5,739.72 6,559.68 4,099.80 4,099.80 20,499.00 06.12.15 Deposits Bid Income 741.72 847.68 529.80 529.80 2,649.00 Subtotal 17,343.20 191820.80 12,388.00 121388.00 , 61,940.00 8/25/2014 3965 Studio M Publishing (695.00) 8/27/2014 Credit Card All Signs Treasure Hunt (30.00) 8/29/2014 3976 Imagine Promotional Group (198.44) 12/9/2014 Credit Card Rex Ace Hardware (15.44) 12/9/2014 Credit Card 4 Imprint (422.53) 2/4/2015 3976 Imagine Promotional Group (348.38) 2/28/2015 4042 Wine Country Radio (630.00) 4/15/2015 4191 Fishman Supply (670.58) 5/18/2015 Refund 160.00 5/20/2015 4253 Sonoma Media Investments (1,110.00) 5/27/2015 4268 San Francisco Chronical (1,329.00) 9/30/2014 Credit Card The Chamber Link Holiday (90.00) 9/30/2014 Credit Card USPS Holiday (196.00) 10/20/2014 4023 Petaluma Post Holiday (175.00) 10/20/2014 4024 Petaluma Minuteman Holiday (228.85) 11/6/2014 Trick or Treat Holiday (191.60) 11/6/2014 Trick or Treat Holiday (8.40) 11/7/2014 4043 Petaluma Minuteman Holiday (281.44) 32 Petaluma Downtown Association Bid Funds Received and expenditures For Fiscal Year Ending June 30, 2015 BID Percentages Date Transaction To /From 11/7/2014 Credit Card The Chamber Link 11/7/2014 Credit Card Craig's Warehouse 11/7/2014 Credit Card Vista Print 11/7/2014 Credit Card Facebo.ok 11/7/2014 Credit Card Facebook 11/14/2014 4050 Petaluma Post 11/19/2014 2/25/2015 Refund 12/2/2014 4062 Paula Moors 12/2/2014 4064 Patrick Pranther 12/2/2014 4066 Barbara Railsback 12/9/2014 Credit Card The Chamber Link 12/9/2014 Credit Card The Chamber Link 12/10/2014 4069 Fishman Supply 12/10/2014 4072 Petaluma High School 12/10/2014 4071 Sonoma Media Investments 12/16/2014 4076 Jennifer Hawks 12/16/2014 4079 Sonoma Media Investments 1/12/2015 4102 North Bay Bohemian 1/12/2015 4102 North Bay Bohemian 1/12/2015 4102 North Bay Bohemian 2/19/2015 Holiday Wine Country Radio - Refund 2/25/2015 4144 Wine Country Radio 2/25/2015 4144 Wine Country Radio 2/25/2015 4144 Wine Country Radio 2/25/2015 4144 Wine Country Radio 2/28/2015 4108 Sonoma Media Investments 3/2/2015 Refund 3/3112015 4179 Wine Country Radio 3/31/2015 4179 Wine Country Radio 3/31/2015 4179 Wine Country Radio 3/31/2015 4179 Wine Country Radio 3/31 /2015 Refund 28% Description Marketing Holiday (90.00) Holiday (208.10) Holiday (131.51) Holiday (13.74) Holiday (12.71) Holiday (99.00) Holiday 20.00 Holiday (280.00) Holiday (550.00) Holiday (200.00) Holiday (60.00) Holiday (60.00) Holiday (101.54) Holiday (100.00) Holiday (949.82) Holiday (8.95) Holiday (466.00) Holiday (100.00) Holiday (256.00) Holiday (309.62) Holiday 750.00 Holiday (490.00) Holiday (420.00) Holiday (160.00) Holiday (375.00) Holiday (592.71) Holiday 250.00 Holiday (245.00) Holiday (180.00) Holiday (90.00) Holiday (150.00) Holiday 250.00 32% 20% 20% Security Beautification Admin TOTAL W3 Petaluma Downtown Association Bid Funds Received and expenditures For Fiscal Year Ending June 30, 2015 BID Percentages Date Transaction To /From 28% Description Marketing 32% 20% Security Beautification 4/9/2015 Refund Holiday 250.00 6/12/2015 Refund Holiday 250.00 7/31/2014 Credit Card Vista Print Sidewalk Sale (144.48) 8/5/2014 3931 Barber Sign Sidewalk Sale (354.13) 8/13/2014 Petaluma Post Sidewalk Sale (198.00) 8/18/2014 3959 Sonoma Media Investments Sidewalk Sale (691.97) 9/8/2014 3981 City of Petaluma Sidewalk Sale (26.00) 9/15/2014 3987 City of Petaluma Sidewalk Sale (2.00) 10/31/2014 4036 Pacific Display Beautification 06/05/2015 Credit Card Rex Ace Hardware Beautification 7/1112014 3902 First Alarm Security, Inc Security Services (312.09) 8/5/2014 3935 First Alarm Security, Inc Security Services (312.09) 8/29/2014 3975 First Alarm Security, Inc Security Services (312.09) 10/3/2014 4005 First Alarm Security, Inc Security Services (312.09) 11/7/2014 4041 First Alarm Security, Inc Security Services (312.09) 12/2/2014 4060 First Alarm Security, Inc Security Services (312.09) 12/30/2014 4092 First Alarm Security, Inc Security Services (312.09) 2/11/2015 4127 First Alarm Security, Inc Security Services (312.09) 3/11/2015 4154 First Alarm Security, Inc Security Services (312.09) 4/8/2015 4184 First Alarm Security, Inc Security Services (312.09) 5/13/2015 4235 First Alarm Security, Inc Security Services (312.09) 6/3/2015 4274 First Alarm Security, Inc Security Services (312.09) 6/24/2015 4299 First Alarm Security, Inc Security Services (158.64) 7/23/2014 3912 AT &T Capital Services Inc Camera Security (290.88) 8/18/2014 3952 AT &T Capital Services Inc Camera Security (290.88) 9/13/2014 3986 AT &T Capital Services Inc Camera Security (290.88) 10/20/2014 4020 AT &T Capital Services Inc Camera Security (290.88) 10/31/2014 4035 AT &T Capital Services Inc Camera Security (145.98) 11/14/2014 4049 AT &T Capital Services Inc Camera Security (290.88) (4,700.00) (12.19) 20% TOTAL Admin 91,11 Petaluma Downtown Association Bid Funds Received and expenditures For Fiscal Year Ending June 30, 2015 BID Percentages 28% 32% 20% Date Transaction To /From Description Marketing Security Beautification 12/16/2014 4075 AT &T Capital Services Inc Camera Security (290.88) 1/19/2015 4104 AT &T Capital Services Inc Camera Security (290.88) 2/18/2015 4131 AT &T Capital Services Inc Camera Security (581.76) 4/1/2015 4180 AT &T Capital Services Inc Camera Security (295.88) 5/1/2015 4215 AT &T Capital Services Inc Camera Security (290.88) 6/1/2015 4245 AT &T Capital Services Inc Camera Security (290.88) 03/04/2015 4148 Muniservices Bid Processing 3/31/2015 PayPal Fees 7.1.14- 6.30.15 Bid Share of admin costs Website (43.66) 7.1.14- 6.30.15 Bid Share of admin costs Wages 7.1.14- 6.30.15 Bid Share of admin costs Utilities 7.1.14- 6.30.15 Bid Share of admin costs Telephones 7.1.14- 6.30.15 Bid Share of admin costs Rent 7.1.14- 6.30.15 Bid Share of admin costs Public Relations. 7.1.14- 6.30.15 Bid Share of admin costs Professional Fees 7.1.14- 6.30.15 Bid Share of admin costs Office Supplies & Postage 7.1.14 - 6.30.15 Bid Share of admin costs Payroll tax Expense 7.1.14- 6.30.15 Bid Share of admin costs License and Tax 7.1.14- 6.30.15 Bid Share of admin costs Insurance 7.1.14- 6.30.15 Bid Share of admin costs Equipment Maintenance 7.1.14- 6.30.15 Bid Share of admin costs Promotion 7.1.14- 630.15 Bid Share of admin costs Employee Benefits 7.1.14- 6.30.15 Bid Share of admin costs Dues & Subscriptions Total BID expenses (12,850.60) (7,545.26) (4,712.19) 6.30.15 Ending balance BID 15,570.93 151028.99 27,915.56 20% Admin (550.00) (5.80) (1,690.34) (53.27) (179.78) (20.00) (3.26) (328.62) (191.96) (138.35) (6.01) (131.07) (28.06) (710.12) TOTAL (4,036.64) (29,144.69) (2,397.93) 56,117.55 35 BID 2016 Proposed Projects Projected Revenue Total Possible $ 65,000 projected from total district data Expected $ 55,000 assuming 85% collections Proposed Projects Expected Possible Notes Security Patrols $ 7,750 Private security patrols Thurs -Sun 10pm -4am 52 weeks t &T Interenet to host camera $ 1,500 Monthly Internet AT&T camera contract $ 1,450 Lease of equipment expires 5/2016 AT&T smartnet maintenance $ 600 Software maintenance Additional security /Education $ 6,300 Heightened security during holidays and peak times. Security education creation of pamphlet Possible security bike patrols Security 32% $97,600 $ 20,800.00 Destination marketing downtown $ 2,400 Destination marketing ads & editorial in Chamber & Visitors guide Newspaper special sections $ 1,200 Destination Downtown shopping Sidewalk Sale $ 1,000 Street banner $400,flyers $100 advertising $500 Harvest. Days event $ 400 Banners, posters, flyers, radio, online and prints ads - social media Valentines- for the love of Petaluma $ 2,000 Posters, banners, ads social media Trick or Treat $ 700 Posters, maps, ads, balloons Holiday Marketing season $ 4,900 Merchant Open house, balloons, horse & wagon, entertainment, flyers, posters, ads Holiday shopping gift guide Sonoma o $ 1,200 Sonoma county. Press democrat/Argus Online ads Press Democrat $ 500 Online ad click through to website Holiday shopping gift guide Marin $ 366 Marin country ads (paid $1,500 offset by Visitors Program) Holiday lighting $ 295 Trees Putnam Plaza Radio ad campaign $ 439 Radio Ad Marketing Campaign Marketing 28% $ 15,400,00 $ 18,200.00 Holiday Decorations $ 5,000 70 Holiday banners, 8 wreaths installation up and down, cleaning, updating and storage New spring banners $ 5,500 50% from sponsorship and 50% from BID Paint supplies for graffiti clean- up $ 500 paint, supplies for graffiti clean up in downtown core and garage Beautification 20% $ 91,000.00 $ 13,000.00 Administration costs $ 1,300 Website updates and maintenance $ 710 Telephone & PG &E $ 400 Insurance $ 1,950 Wages & benefits $ 240 Office supplies $ 6,400 BiD processing (includes public noticing and payment processing) new local billing and Muni continued collections for 2012 -15 Administration 20% $ 11,000.00 $ 13,000.00 Total $ 55,000.00 $ 65,000.00 BID ANALYSIS 2008 -2016 Previous 5 year BID Actual Collections YEAR 2008/09 09/1.0 10/11 v 11112 -12/ 131'14 : 14/15 Collected $ 59,000 $ 50,637 $ 52;850 ,44,7,93 $ 5(,9'14 $ 45,505 $ 61,940 BUDGET: _ 15/16 $ 65,000 Updated: 11.3.15 BID 8109 0, , .. 3.0.8 9 10. 09.10 /.. 091 _0. 1.0 < 1 !'1 = 0/1 'I .... '(< 141 Z. 1 2 . _ 1/1 .: , 12/1 3 12/1 13 14 11A =..13 _ 3 /14- 14!'15 -; 15/16 15/16 % Actual % Actual % Actual % Actual % Actual % Actual % Actual % Budget Security 32 %° $18,880 40% $20,255 50% $260425 50% $22,397 50% $25,957 50% $22,753 32% $19,820 32% $ 20,800 Marketing 32% $18,880 30% $15,191 28% $14,798 28% $12,542 28% $14,536 28% $129741 28% $17,344 28% $ 18,200 Beautification 16% $9,440 20% $10,127 20% $10,570 20% $8,959 20% $10,383 20% $9,101 20% $12,388 20% $ 13,000 Administration 20% $11,800 10% $5,064 2% $1,057 2% $896 2% $1,038 2% $910 20% $12,388 20% $ 13,000 100% $59100W_ e 100% $` 50 .6.37 < i 100% $:52 8.50 3 100% $ 44 793;:; 100% '51,'914.1100% $ 45 505: s... ..,..; 100% $61' 940 `` s 100% 65 000 . $... e:..,,,.. Q8%09 budget City billed approximately $65k Percentages are changed to accommodate increase in camera mtnc costs Original Contract = $16,000 PLUS Increase $6,000 /year = $22,000 $6,000 /year Admin costs reduced due to free rent due to move to PVP Reduced by $500 to cover increased security costs Reduced by $1,000 to cover increased security costs No % changes - No % changes Change in %approved by BID committee, effective Jane 2014 - result of reduction in camera lease contract back to 08/09 levels BID increase in income due to past payments coming in for 2012 thru 2015 BID increase objective to receive payments from businesses not previously billed 0900. Budget 10%1'1 Budget Cameras Spartan Administration Marketing Beautification 11.112 Budget 12/13 :Budget 13/"14 Budget 14/15 Budget 15/16 Budget 37 PETALUMA DOWNTOWN ASSOC BID ANALYSIS - START TO 06/30/15 BALANCE 07/04 -06/05 RECEIVED 07/05 -06106 EXPENSES 07/05.06106 BALANCE 07/05 -06106 RECEIVED 07/06 -06107 EXPENSED 07 /06 -06107 BALANCE 07/06 -06/07 RECEIVED 07/07 -06/08 EXPENSED 07/07 -06108 BALANCE 67/07 -06/08 RECEIVED 07108 -06109 EXPENSED 0710806/09 BALANCE 07/08 -06/09 CHANGE IN PERCENTAGE MARKETING SECURITY BEAUTIFICATION ADMINISTRATIVE TOTAL 32% 32% 16% 20% 100% 852.67 17,062.78 20,056.54 11494.35 39,456.45 15750.34 15750.34 7875.17 9843.98 49,219.83 - 7,206.04 -15,540,00 - 14,213,08 - 11,338.34 - 48,297.46 91396.97 17,253.12 13,718.73 0,00 40,378.82 20,303.23 20,393,23 10,196,61 12,745.75 63,728.83 - 12,696.09 - 13,0190.00 - 18,175.02 - 9,708.04 - 53,+669,15 17,094,11 24,566.35 51740.32 3,037.72 50,438.50 17,503.04 17,6013.04 8,751.52 10,939.76 54,697.36 -10,644.00 - 18,264.00 - 8,660.00 -10,1 35.80 - 47,693.80 23,953.15 23,805.39 5,841.84 31841,58 57,442.06 14,254.09 14,254.09 7,127.05 8,908.47 44,543.70 - 21,01.2.12 - 211411.26 01.00 - 14,934.11 -57,357.49 17,195.12 16,648.22 12,968.89 - 2,183.96 44,628.27 .30% 40% 20% 10% 100% v PETALU4 DOWNTOWN ASSOC 131D ANALYSIS -START TO Q6130f� 5 ' RECEIVED 07109 -06/10 EXPENSED 07109 -56110 BALANCE 07109 -06/10 CHANGE IN PERCENTAGE! RECEIVED 07/10 -06111 EX LASED 07/10 -06/11 BALANCE 07110 -06/11 RECEIVED 07/11 -06/12 EXPENSE. 07/11 -06112 BALANCE 07/11 -06/12 RECEIVED 47/12 - 06/1.3 EXPENSED 07112-06/13 BALANCE 07/12 -06113 ° a 15,191.05 - 16,912.30 16,473.87 28% 14,798,00 - 15,700.74 14,571.13 1,400.00 - 11,583.37 4,38'.26 23,329.46 -1 1,986.39 16,730.33 '2 .0,254.73 -- 27,194.59 9,708,36 50% 26,426.00 - 28,764.45 71368.91 2,550.00 »27;390,,45 #17,521.54 41,660,00 - 25,06266 - 3,924.20 100127.37 6,063.68 , 50,636.83 -17,445.40 - 2,634.85 - 64,186.74 51651.26 244.8,7 31,078.36 20% 2% 100% 101570.00 1,057.30 52,650.00 - 529,42 - 2,937.36 - 47,931.97 1501.84 - ~1,535.49 35,996.39 1,000,00 100.00 51000.00 - 3,400.00 - 2,418.14 - 44,792.46 13,291.84 - 3,953.63 - 3,796.07 16,663.90 1,666,39 83,319.76 - 91060.00 -2,804.77 -61,913,82 20$895 *74 -51092.01 27,609.86 39 PETALUMA DOWNTOWN ASSOC BID ANALYSIS - START TO 06130115 } MARKETING SECURITY BEAUTIFICATION ADMINISTRATIVE RECEIVED 07113 -06114 32% 9,867.70 32% 17,621,01 16% 7,048.40 20% 704.83 EXPENSED 47113 -06114 - 14,519.70 - 10,943.36 - 7,704.39 - 6,362.11 BALANCE 07/13 -06114 11,078.33 2,753.45 203239.75 .10,749.29. Change In Percentages 28% 32% 20% 20% RECEIVED 07/13 -06114 17,343.20 19,820.80 12,388,00 120388.00 EXPENSED 07114 -06/15 - 12,850.60 •7,545.26 - 4,712.19 - 4,036.64 BALANCE 07/14.06115 15,570.93 15,028.99 27,915.56 022397.93 TOTAL 100% 35,241.94 -39,629,66 23,322.24 61,940.00 - 29,144.69 56,117.55 40