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HomeMy WebLinkAboutStaff Report 5.A 02/01/2016DATE: February 1, 2016 Agenda Item #5.A TO: Honorable Mayor and Members of the City Council through City Manager FROM: William Mushallo, Finance Directo SUBJECT: Public Hearing to Levy an Annual Assessment for Fiscal Year 2016 for the Downtown Petaluma Business Improvement District and Approve Resolution Establishing the Levy for the 2016 Annual Assessment for the Downtown Petaluma Business Improvement District RECOMMENDATION It is recommended that the City Council conduct the public hearing, accept input and adopt the attached Resolution Establishing the Levy for the 2016 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 (PMC). A Board of Directors is established to administer the affairs of the District. PMC Section 6.04. 100 establishes annual procedures governing the levy of assessments. 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 the City Council adopting a Resolution of Intention giving notice of a public hearing at which written and oral protests may be made. Following such action, the City Council can adopt a resolution approving the annual report and levying the assessment. The fiscal year for the BID begins on January 1 st. The Resolution of Intention was adopted by the City Council on January 4, 2016. The Notice of the Public Hearing was published in the newspaper on January 21, 2016, and the mailing with Exhibits 1 and 2 was completed on January 8, 2016. DISCUSSION On January 4, 2016, the City Council reviewed the annual report and proposed budget for the 2016 DPBID assessment and adopted a Resolution of Intention to Levy an Annual Assessment for Fiscal Year 2016. In accordance with PMC Section 6.04. 100 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 2016 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 M 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. N ATTACHMENT 1 RESOLUTION ESTABLISHING THE LEVY FOR THE 2016 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 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, 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 2016 DPBID Annual Report and Budget submitted by the DPBID Board of Directors at the regularly scheduled and duly noticed January 4, 2016 City Council meeting; and, WHEREAS, in accordance with Section 36534 of the Act, at the regularly scheduled and duly noticed January 4, 2016 City Council meeting, the City Council adopted a Resolution of Intention to levy the 2016 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, M 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 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; and, WHEREAS, in accordance with Section 36524 of the Act, on February 1, 2016, the City Council held the public hearing on the 2016 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 February 1, 2016, 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 2016, 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. 9 BOUNDARY MAP EXHIBIT 1 TO RESOLUTION EXHIBIT 2 TO RESOLUTION 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 Businesses Financial $500 $500 $500 Tn etitnti nn Lodging (1 -10 Rooms) ZONE A ZONE B ZONE C Restaurants and $250 $250 $250 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 Tn etitnti nn 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 January 6, 2016 NOTICE OF PUBLIC HEARING ATTACHMENT 2 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 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 N 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 February 1, 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 L� In 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, andlor assistive listening devices for individuals with hearing disabilities will be available upon request. A minimum of 48 hours is needed to ensure the availabilio) of translation services. In consideration of those with 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 XLI a ATTACHMENT 4 City of Petaluma, C,4 2016 Downtown Business Improvement District (BID) j$58 Invoice Remit To: Attn: Mungle & Associates • 628 E. Washington, Ste. A e Petaluma, CA 94952 Phone: (707) 778 -1716 • Email: petal umaBID()cmungle.com • Website: www.petalumadowntown.com [Business Name] [DBA] DRAFT [Addressl ] [Address2] [City, State, Zip] Location Information: [Street Addressl, Street Address2] [City, State Zip] Due on or before: March 31, 2016 Delinquent: April 1, 2016 10% Penalty Phase: May 1, 2016 YOUR BID CATEGORY: [Pre -print Category here] BID Account #: Downtown Petaluma Business Improvement District (BID) Assessment Fee Table Retail Restaurant and Antique 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. Retailers and Restaurants: Sched 1.0 0 -3 employees $ 150.00 $ 100.00 $ 50.00 Sched 1.0 4 -6 employees $ 250.00 $ 166.00 $ 83.00 Sched 1.0 7+ employees $ 350 00 $ 232 00 $116 00 escrlptton Of $1ISIIteSS © ®° ®. A Int�:rnalCOde �� ®� 6 ©® Antique Collectives: Sched 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 n 11 r � =flllea �ZanewA done 8 Iii erna(Gode� Yiption o #Bils�nessr r� �� ©a.- ..��© MOW!-! Service Businesses: Sched 3.0 0 -3 employees /operators $ 100.00 $75.00 $ 50.00 Sched 3.0 4 -6 employees /operators $ 200.00 $150.00 $100.00 Sched 3.0 7+ employees /operators $300.00 $225 00 $150.00 - e -A ,.s.: -:..0„ ne 8= .:�°', SllptlOn O )$Ltn S Intern Cee -- -- maing Sched 4.0 Professional Businesses: $ 125.00 $82.00 $41.00 ,. - e,.r,o.r � n Financial Institutions: $ 500.00 $ 500.00 $ 500.00 Sched 6.0 1 -10 rooms 's 1bu.uu ;P 10U.UU w Sched 6.0 11 -25 rooms $ 250.00 $ 250.00 $ 250.00 Sched 6.0 26+ rooms $ 350.00 $ 350.00 $ 350.00 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 above, enter amount due: $ (Make Checks Payable To: Petaluma BID) 11 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 Address l Address2 City, State, Zip 4 i 1858 BID Account #1: ATTACHMENT 5 Dear Business Owner I Tax Manager: * *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: petal umaBID cDcmungie.com Mungle & 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 for your continued efforts to maintain an economically vibrant and attractive downtown. Sincerely Yours, Mungle & Associates As administering agent for the City of Petaluma 12 ATTACHMENT 6 No correspondence as of 1/26/16.