HomeMy WebLinkAboutStaff Report 6.A 01/24/2011DATE
TO
FROM:
January 24, 2011
Honorable Mayor and Members of the City Council through City Manager
Susan Mahoney, Interim Finance Director 4
SUBJECT: Public Hearing to Levy an Annual Assessment for Fiscal Year 2011 for the
Downtown Petaluma Business Improvement District and Approve Resolution
Establishing the Levy for the 2011 Annual Assessment for the downtown
Petaluma Business Improvement District
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Establishing the Levy for
the 2011 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). In the Ordinance, a Board of
Directors is established to administer the affairs of the District. Under section 6.04. 100 of the
Ordinance, the Board of Directors must present the City Council with an Annual Report and
related budget information for review and approval prior to adopting a Resolution of Intention to
levy an annual assessment for Fiscal Year 2011. The fiscal year for the BID begins on January
I". Notice of the Public Hearing was published in the newspaper on January 6, 2011 and the
mailing with Attachments I and 2 was completed on December 21, 2010.
DISCUSSION
The Council has reviewed the annual report and proposed budget for the 2011 DPBID
assessment and adopted a Resolution of. Intention to Levy an Annual Assessment for Fiscal Year
2011. At tonight's public hearing, the Council will hear any testimony for and against the
proposed levy, including any protests, before the Council determines whether or not to approve
the levy.
A single piece of correspondence was received concerning the annual budget, and it is included
as Attachment 10.
Agenda Review:no
City Attorney
Finance Director City Manager
FINANCIAL IMPACTS
The DPBID Assessments ate as follows:
50%
Security
$32,500
28%
Marketing
$18,200
20%
Beautification
$13,000
2%
Administration
$ 1,300
Total:
$65,000
Although the City collects direct costs from the BID process, such as mailing and legal expenses, staff
time to manage the agenda process, billing and collections is not reimbursed. There is a significant
amount of City staff hours required to administer this program.
ATTACHMENTS
1. Notice of Public Hearing
2. Boundary Map (Exhibit 1 to Public Notice)
3. Types of Businesses -Assessed based on Zones (location within downtown boundary)
(Exhibit 2 to Public Notice)
5. Draft copy of billing statement for BID assessments
6. Draft copy of letter from City to businesses that will accompany invoice
7. Resolution Establishing the Levy for the 2011 Annual Assessment for the Downtown Petaluma
Business Improvement District
8. Ordinance 2104 N.C.S. (Exhibit 1 to Resolution)
8a. BID Map (Exhibit A to Ordinance)
9. DPBID Annual Report and'Budget (Exhibit 2 to Resolution)
10. 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.
4. Current List of businesses being assessed and their BID assessment amount.
z
December 21, 2010.
NOTICE OF PUBLIC HEARING
ATTACHMENT 1
RESOLUTION APPROVING THE 2011 DOWNTOWN PETALUMA BUSINESS
IMPROVEMENT DISTRICT ANNUAL REPORT AND RELATED BUDGET; DECLARING
THE INTENTION TO LEVY THE 2011 ANNUAL ASSESSMENT FOR THE DISTRICT;
AND SETTING A PUBLIC HEARING ON THE PROPOSED 2011 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. Facade 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
5
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 sect'ion'sha'll.not be counted in determining a majority protest.
U
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 2011 DPBID Annual Report proposes no changes in the boundaries,
method of assessment, or rate of assessment related to the DPBID; and the proposed DPBID
2011 Budget establishes the ;following budgetary priorities° with estimated revenues and
expenditures:
50% Security $32,500
28% Marketing $18,200
20% Beautification $13,000
2% Administration $ 1,300
Total: $65,000
WHEREAS, the 2011 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 20.11 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 2011 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 2011 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 2011 Annual Report and Budget at their December 20, 2010 Council
meeting, at thePetaluma City Council Chambers, 11 English Street, Petaluma, CA; and
BE IT FURTHER RESOLVED that a public hearing will occur on
January 24, 2011, 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 2011.
At the hearing, written and oral protests may be made in accordance with California Streets and
Highways Code Sections 36524 and 36525.
LU 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, 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 multiplechemical 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.
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ATTACHMENT 3
EXHIBIT 2 TO PUBLIC NOTICE
Tvnes of Businesses Assessed
® Retail,. 'Restaurant and Antique Collectives: Businesses that buy,and resell
goods or. comestibles. Examples are clothing stores, shoe stores, office supplies
and antiques shops as well as businesses that sell prepared foods and`drinks.
® Service Businesses: Businesses that sell services. Examples are beauty and
barbershops, repair shops; most automotive -orientated businesses, entertainment
businesses such as theaters, etc.
® Lodeing: 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
Restaurants and
Retailers (1-3 Employees)
(4-6 Employees)
(7+ Employees)
Antique (1-3 Dealers)
Collectives (4-6 Dealers)
(7+ Dealers)
Service (1-3 Emp/Operators)
Businesses (4-6 Emp/Operators)
(7+ Emp/Operators)
Professional
Businesses
Financial
Institutions
Lodging (1-10 Rooms)
(11-25 Rooms)
(26+ Rooms)
ZONE A ZONE B ZONE C
$150
$100
$50
$250
$1,66
$83
$350
$232
$116
$150
$100
$50
$250
$166
$83
$350
$232
$116
$100
$75
$50
$200
$150
$100
$300
$225
$150
$125
$82
$41
$500
$500
$500
$150
$150
$150
$250
$250
$250
$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
busines"s licenses active within one location.
101
Business Improvement District Invoice
BID CATEGORY: Zone C Professional Businesses
NUMBER OF EMPLOYEES, OPERATORS,DEALERS•OR ROOMS
BID AMOUNT PAID $
ACTIVITY # '0000000
I IIIIIII ILII IIII I I II II II II III I I III II II III I I VIII III I VIII IIII II '
BUSINESS ID # B-0000000
CITY OF PETALUMA•
1.1 ENGLISH STREET
P.O.' BOX •61.
PETALUMA, CA 94953-0061.
— — — — — — — — — — — — —
BUSINESS LICENSE NO. B-0000000
— — — — —
BUSINESS NAME
— — — — — —
EXPIRATION DATE:
STREET
PETALUMA, CA 94952
CITY OF PETALUMA•
1.1 ENGLISH STREET
P.O.' BOX •61.
PETALUMA, CA 94953-0061.
— — — — — — — — — — — — —
BUSINESS LICENSE NO. B-0000000
— — — — —
— — —
— — — — — —
EXPIRATION DATE:
LOCATION: STREET PETALUMA, CA 94952
DELINQUENCY -DATE:
OWNER(S)'. OWNER NAME
BILLING NUMBER:
YOUR BID CATEGORY:
Zone C Professional Businesses
Downtown Petaluma
Business Improvement
Assessment Fee (BID)
ZONE -A
ZONE B
ZONE C
Retailers and Restaurants
0-3 employees
$ 150
$ 100
$ 50
4-6 employees
$ 250
$ 166
$ 83
7+ employees
$ 350
$ 232
$ 116
Antique Collectives:
0-3 dealers
$ 150
$ 100
$ 50
4-6 dealers
$ 250
$ 166
$ 83
7+ dealers
$ 350
$ 232
$ 116
Service,Businesses:
0-3 employees/operators
$ 100
$ 75
$ 50
4-6 employees/operators .
$ 200
$ 150
$ 100
7+ employees/operators
$:300
$ 225
$ 150
Professional Businesses:
$ 125
$ 82
$ 41
Financial.Insbtutions:
$ 500
$ 500
$ 50.0
Lodging:
1-10 rooms
$ 150
$ 150
$ 150
11-25 rooms
$ 250
$ 250
$ 250
26+ rooms
$ 350
$ 350
$ 350
Enter number of employees, operators, dealers or rooms:
From the TABLE above choose the correct amount to pay:
12/31/2011
4/0112011
707-778-4354
YOUR BID IS TIED TO YOUR BUSINESS TAX FOR THE CITY OF PETALUMA. YOU MUST PAY BOTH YOUR BUSINESS
TAX AND YOUR BID IN ORDER TO STAY CURRENT ON YOUR ACCOUNT.
KEEP BOTTOM PORTION FOR YOUR RECORDS
n
.4 HzeC'n
a r City of Petaluma
Q
11 English Street • Petaluma, CA 94952
Zg5S
January 25, 2011lox,
Dear Downtown Business Improvement District Business Owner,
This is to transmit the 2011 downtown business improvement assessment invoice that is due
and payable on receiptand delinquent on April 1, 2011.
This invoice is based and calculated on your zone location, type of business and amount of
employees. To perform this calculation the City of Petaluma used data from the State
Employment Development Department (EDD) regarding the number of employees you
reported to them. Please be aware that it is very important to check that you are correctly
billed for the right amount of employees. Employees are calculated on full time hours, part
time employees should be added together to get a full time equivalent. Should you have any
questions regarding your zoning or employee amounts, please contact The Petaluma
Downtown Association with your questions by: fax (707) 762-4317, e-mail
marie(ri)petalumadowntown.com, or call at 762-9348. Please do not call the City of
Petaluma offices.
The assessment was established in November 2000, when.the Petaluma City Council adopted
Ordinance 2104 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 2011 Annual Report and Budget of the BID, approved by the Petaluma City
Council on December 20, 2010, assessment funds will be used as follows:
50% Downtown Security $32,500
28% Downtown Marketing $18,200
20% Downtown Beautification $13,000
2% Administration $1,300
Total: $65,000
Please support the Downtown Business Improvement District by making your timely
payment as indicated on the attached invoice. Thank you for your continued efforts to
maintain an economically vibrant and attractive downtown.
Sincerely,
Susan Mahoney
Interim Finance Director
fV
ATTACHMENT 7
RESOLUTION ESTABLISHING THE LEVY FOR THE 2011 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 6.04.05.0 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.
Facade Improvements
5.
Permanent Landscaping
B. Activities including, but not limited to, the following: I -
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, includingpreparation of an annual report, adoption of a .resolution of intent
giving notice of `a public hearing at which written andoral 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:
l�
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 2011 DPBID Annual Report and Budget submitted by the DPBID
Board of Directors at the regularly scheduled and duly noticed
December 20, 2010 City Council meeting; and,
WHEREAS, in accordance with Section 36534 of the Act, at the regularly scheduled and
duly noticed December 20, 2010 City Council meeting, the City Council adopted a Resolution of
Intention to levy the 2011 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,
WHEREAS, the 2011 DPBID Annual Report proposes no changes, in the boundaries,
method of assessment, or rate of assessment related to the DPBID; and the proposed DPBID
2011 Budget establishes the following budgetary priorities with estimated revenues and
expenditures:
l v.
501/o
Security
$32,500
28%
Marketing
$18,200
20%
Beautification
$13,000
2%
Administration
$ 1,300
Total
$65,000
WHEREAS, the 2011 Annual Report of the DPBID is on file at the City Clerk's office
for public review andr contains a full ,and detailed description of the DPBID improvements and
activities to be provided for the 20.11 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 2011 fiscal year; and,
WHEREAS, in accordance with Section 36524 of the Act, on January 24, 2011, the City
Council held the public hearing on the 2011 DPBID annual levy and heard and considered all
protests against the annual levy, the DPBID area, the extent of the area, or the furnishing of
specified types of improvements or activities within the area; and,
WHEREAS, in accordance with Section 36525 of the Act, following. the public hearing
on January 24, 2011, 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 2011,
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.
1571173.1
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ATTACHMENT
I ORDINANCE NO. 2104 N.C. S--.,-
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5 Introduced by.Councilmembe"r Seconded by Councilmember
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7 Matt Map-uire Pamela Toraiatt
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12 AN OR DINANCE,O>F' THE CITY COUNCIL OFTHE CITY OF PETALUMA,
13 CALIFORNIA, ADDINGrCHAPTER 6.04 TO THE PETALuMA MUNICIPAL CODE
14 ESTABLISHING THE DOWNTOWN PETALUMA
15 BUSINESS IMPROVEMENT DISTRICT
16
17 RECITALS:
18
19 WHEREAS, on September 18, 2000, the City Council of Petaluma; on behalf of the City of
20 Petaluma, (the "City"), adopted Resolution 900-177 N.C.S. (the "Resolution"'), declaring its
21 intention to. establish a Parking and Business Improvement District (hereinafter referred to as the
22 "District"), to levy a benefit assessment. on .all businesses, trades, professions, and vendors within
23 said District, the proceeds of which shall be used for the public purposes herein described to
24 benefit the businesses in the District, pursuant to the Parking and Business Improvement Area
25 Law of 1989, Part 6 (commencing with Section 36500) of Division 18 of the California Streets
26 and Highways Code (the "Act,"); and,
.27
28 WHERE—AS, pursuant to the Act and the Resolution, City conducted a public hearing, after
29- having given due notice thereof as required by law, on October 16, 2000, at 7:00 PM; at City
30 Hall, I 1 English Street, Petaluma, California; and,
31
32 WHEREAS, said public hearing has been held and the City Council has heard and considered
33 all oral and written protests and'.other comments regarding such proposed actions; and,
Ord. 2104 NCS
Page 1
I WHEREAS, protests in writing from, businesses in the proposed District paying 50% or more of
2. the proposed assessment have not.been received; and,
3
4 WHEREAS, this City Council has now determined to establish the proposed District as a
5 Parking and Business Improvement Area, to provide for the imposition of a benefit assessment
6 and to adopt' an ordinance to such. effect; and,
7 -.
& WIEREAS, in the opinion . of this City Council, the businesses within .the' District will be
9 ibenefited by the expenditure of the funds raised by the assessments levied hereby in the -manner
10 prescribed herein; and,
11
12. WHEREAS, this City Council may, for each of the purposes set forth in Section 36510 & 36513
13 of the Act, establish one or more separate benefit zones based upon' the degree of benefit derived
14 from the formation of the District, and may impose a tiered assessment or charge within each of
15 the benefit zones; and,
16
17 WHEREAS, all provisions of the Act applicable to the establishment, modification, or
18 disestablishment of a District shall apply to the establishment, modification, or disestablishment
19 of benefit zones pursuant to the Act, and the establishment or the modification of any benefit
20 zone shall follow the same procedure as provided for under the establishment of a parking and
21 business improvement district and the disestablishment of a benefit zone shall follow the same
22 procedure as provide for disestablishment of a District; and,
23
24 Wll?ER EAS; upon the request of the District Board of Directors, this City Council shall
25 'commence, the proceedings required by law to amend the boundaries, 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 procedural requirements of the Act, but no assessment or chargeshall be modified which would
29 impair the ability of the District to meet the obligations of a contract to construct or operate
30 physical improvements. in the District; and,
31
Ord. "2104 NCS
Page 2
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WHEREAS, adjustments may be made in the assessments. or charges to businesses in the
District, or in the uses to which -the. revenue shall be put, as specified in this Ordinance and
subject to Board approval, provided such changes are made by a supplemental Ordinance
adopted after a hearing before the City Council; and,
WHEREAS, forpurposes of the assessments. or charges to be imposed pursuant. to this
Ordinance, this. City Council ' may make. a reasonable classification of businesses, giving
consideration to various factors, including general benefit to businesses and the degree of benefit
received from District programs -and,
WHEREAS, the assessments or charges levied on businesses pursuant to this Ordinance shall, to
the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses
within the District.
NOW, 'THEREFORE, THE CITY COUNCIL OF THE CI'T'Y OF PETALUMA DOES
ORDAIN AS FOLLOWS:
Section 1. Resolution of Intention, Public Hearing and Findings. The Recitals hereof, which set
forth -,facts regarding the adoption of Council Resolutions, the conduct of public hearings and
certain findings of the City Council, are true and correct and incorporated herein by reference.
Section 2. CHAPTER 6.04 is hereby added to the Petaluma -Municipal Code, providing as
follows:
CIi1 APTER 6.04 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT.
6.04.0.10 Definitions.
In order to distinguish between District businesses and for the purpose of calculating and
applying theamount of assessments owed, the following definitions shall apply:
Ord. 2104 NCS Page 3
Ik
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A. Retail Businesses? "'Retail Businesses" include all- businesses not covered by other
definitions set out in this section, at -least fifty percent (506%) of whose gross income is
derived from "retail sales" as that term is defined undevihe California Sales and Use Tax
Law. The fact that a substantial part of its business consists of sales other than retail sales
does not exclude said business from this classification so long as such other business
component does not account- for more than fifty percent (50%) of said business' gross
income;
B. Restaurants: "Restaurant" businesses. include .cafes, eating establishments, sandwich
shops, .dinner houses, restaurants and fast food services and' other similar businesses;
C. Antique Collectives: "Antique Collectives includes such businesses and business
locations that represent multiple dealers of antique merchandise within one location.
D. Service: "Service" businesses include businesses that combine retail and product services.
Examples are appliance stores, most automotive -oriented businesses, repair shops,
repairing and servicing businesses and service 'stations. Other businesses of a general
service -type nature such as general office, news and advertising media, printers, renting
and leasing businesses, utilities, vending machine businesses, household finance
companies, entertainment businesses and other similar businesses not otherwise included
in categories a, b, c, e, f, or g are included in this section;
E. Lodging: "Lodging" businesses include inns, hotels, motels, RV Parks and other similar
businesses;
F. Professional:. "Professional" includes attorneys,, architects, accountants, engineers,
surveyors, physicians, ,dentists, optometrists, chiropractors and others in a medical /
health service field, consultants, real estate brokers, financialadvisors, laboratories
(including dental and optical), hearing aid services, artists, photographers and designers.
Ord. 2104 NCS
Page 4
/-7
'I G. Financial: Banks, savings.& loans; credit unions, etc.
2.
3 H., Calendar Year: "Calendar Year" means January 1st to and including December 31st of
4 the same year.
5
6 I. Billing Period: "Billing Period" shall refer to the period of any portion of a calendar year
7 in which a business operation as defined above.
8
9 6.04.020 'Establishment of Boundaries.
10 A Parking 'and .Business Improvement District is hereby established pursuant to the Parking and
11 Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq. The
12 boundaries of the District and the benefit zones within the District shall be as set forth 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 known as the "Downtown Petaluma Business Improvement
15 District" (the "District").
16
17 6.04.030 Establishment of (District Board of Directors.
18 There shall be a Board of Directors ("Board") of the District 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, Vice -President, Secretary and Treasurer elected by the membership, and
21 such other officers as deemed. necessary by the Board. "Such other:officers shall be appointed by
22 the Board of Directors at their discretion. All voting within the District regarding election of
23 Board Members and any actions regarding the normal and routine conducting of District
24 Business shall be based on one (1) vote per assessed dollar, and said business must be current in
25 payment of their District assessinent(s) to participate in such votes.
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27 6.04..040 Establishment',of Benefit Assessment.
28 All businesses, trades' and professions located within the District boundaries shown on the
29 Exhibit "A" reference&in Section 6.04.030, shall, commencing January 1, 2001, pay an annual
30 bene fit assessment to the District in an amount adopted by Resolution of the City Council of the
31 City of Petaluma.,.
Ord. 2104 NCS
Page 5
/8,
1 6.04.050 Purpose and Use of Benefit Assessments.
2 The types of improvements and activities proposed to be funded by the levy of assessments on
3 businesses in the District areas follows:
4
5 A. The acquisition, construction; installation, or maintenance of any tangible property with
6 an estimated useful life .of five years or more including, but not limited to, the following
7 improvements:
8 1 Benches;
9 2 Trash:receptacles;
10 3 Decorations;
11 4 Facade improvements;
12 5 Permanent landscaping
13
14 B. Activities including but not limited to the following:
15 1 promotion of public events 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;
18 3 Activities which benefit businesses located and operating in the area, including
19 but not limited to commercial shopping and promotional programs.
20
21 6.04.060 Exclusions From Benefit Assessment.
22 No person or business shall be required to pay an assessment based. on: (a) a residential use of
23 the -property within the District, or (b):a non-profit organization 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 Business Assessment Waiver.
27 Any new 'business established within the District shall .not be 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 of issuance of the business license. This waiver shall not apply to
30 an existing business that has changed ownership or location within the District. City agrees to
31 supply the District with .timely,information regarding new businesses initiated within the District.
Ord. 2104 NCS
Page 6
/ 1,
1 6.04.080 Collection of Downtown Benefit Assessment.
2 The benefit .assessment authorized by this 'Ordinance, for Downtown Petaluma businesses
3 (Section :5.0 hereof),, shall -be billed and collected each Calendar Year. The BID Advisory Board .
4 may, from time to time, ,assess late charges on unpaid BID assessment charges.
5
6 6.04.090 Voluntary Contributions to District.
7 Contributions to the District -shall. be permitted 'on- a:;voluntary 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 . Di'strict' forvoting voting or other purposes. However, said business
10 making a voluntary contribution maybe, 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.
13
14 6.40.100 Annual Budget Process.
15 Pursuant to the Act, it shall be necessary for 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 hearing
18 prior to establishing the benefit assessments for the following Fiscal Year. City shall not adopt,
19 modify or otherwise 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 Directors
21 except in the case of a written majority protest (regarding elimination or modification of any
22 specific budget item) from business; owners which will pay 50% or more of the assessments
23 proposed to be levied as to any specific budget item pursuant to GC Section 36525 (b). In such
24 case the written protest regarding any specific budget item shall be grounds to eliminate or
25 modify said expenditure from the District's proposed budget pursuant to the written protest.
26
27 6.40.110 Decisions Regarding Expenditure of Funds.
28 As provided for within the guidelines of SB 1424, decisions of the District Board of Directors
29 regarding expenditure ofall funds generated under this program shall be final.
30
3`1
Ord. 2104 NCS
Page 7
��
I . 6.40.120. District Proceeds 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 and sidewalk 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 the'District.
7
8 ..6.40:130 Disestablishment of the,District.
9 , , Proceeding to disestablish the 'District shall be initiated .by the' City .Council, following the
10 presentation of a petition. to the City Council signed by business owners paying 50% or more of
11 the .assessments levied in the District. Proceedings to disestablish the District shall 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 disestablishment of the District,
15 remaining revenues .of the District shall be refunded to paying business owners in a pro -rata
16 manner calculated in the same manner as was used to establish ,the most recent assessments
17 applied in the District.
18
19 Section 3. If any section, subsection, sentence, clause or phrase of this ordinance is, for any
20 reason, held to be invalid or ,unconstitutional, such invalidity or unconstitutionality shall not
21 affect the validity or constitutionality of the remaining portions of this ordinance, it being
22 expressly declared that this ordinance and each section, subsection, clause and phrase hereof
23 would have been prepared, proposed, .adopted, approved and, ratified irrespective of the fact that
24any 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 (31 st) day after its final passage.
28
29
Ord. 2104 NCS
Page 8
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, .fader -Thompson, Hamilton, Maguire, Vice Mayor Torliatt, Mayor
5 Thompson
6
7 NOES: None
8
9 ABSENT: None
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11 ABSTAIN: None
12
13
14 Mayor
15
16 ATTEST: APPROVED; -T0-F RM:
17
18 Tl-,
m. �City19 ttornt
l
Ord. 2104 NCS
Page 9
ZZ
EXHIBIT A TO ORDINANCE 2104 N.C.S.
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ATTACHMENT 9
EXHIBIT 2 TO RESOLUTION
Downtown Petaluma Business,Improvement District
FY 2011 Annual Report and Budget
1.. Changes in, Boundaries: None are proposed.
2. Changes'in the Basi's 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/DefieitCarried. Over from Prior Year: None
6. Contributions from Other Sources: None
Downtown Petaluma Business Improvement District
2011 Budget Allocations
® 506/o
Security
$32,500
4
® 28%
Marketing
$18,200
® 20%
Beautification.
$13,000
® 2%
Administration
$ 1,300
Total:
$65,000
Security - 50% - 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 7 20% - A volunteer committee meets to consider requests for
investing in beautification projects downtown.
Administration 2% - 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.).
'2A
Tvnes of Businesses Assessed
o 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.
® Loduing: 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
ZONE A ZONE R 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 Ernp/Operators)
$200
$150
$100
(7+ Emp/Operators)
$300
$225
$150
Professional $125 $82 $41
Businesses.
Financial
$500
$500
$500
Institutions
Lodging (140 Rooms)
$150
$150
$150
(11-25. Rooms)
$250
$250
$250
'(26+ ooms)
$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.
-35 -'Fifth, Street
Post.office Boz 2624:
Petaluma, CA 94953
.LAN! Awa MEDIATION O,F.F I C'E S O F �L 2,
WILLIAM R. FISHMA.N TT..TT,,AA `
Tel'ephone:A(iO yAC8,WENT 14
Facsimile: (707) 778-7573
william.fishman@gmail:com
December ?2,,201.0 ECE IVE.
DEC 2 7 2010
PITY MANAGER
Mayor and Council
City of Petaluma
I 1 English Street
Petaluma,, CA 94.952,
Re: Downtown.Business Improvement District
Annual Budget Hearing —January 24, 2011.
Dear Mayor and Council.:
My :office lies •on the outer edge of the Downtown Business 'Improvement District
(DBID). A professional practice is not the sort, -of business that was intended to benefit
from the promotional purposes, of the district, but, as, it tur.;ns ,ou :, ve `do suffer some of the
i burden of dealing witli people who are drawn downtown.. I refer,. specifically; to graffiti.
We have seen a marked Increase' during the past year .in, over -night graffiti tagging
oil the walls, bordering our rear parking lot,. on trash cans and other surfaces along the side
of our buildinef and even on the •front planter. It happens, witli'enough frequency that we
have stopped repQrting it- to the polke department. We Handle simpte :clean-ups ourselves
and save bigger jobs: for'Ed 'Cerrar wi'io .co>itinues to serve as amuch-appreciated and very-
! much over-wo.i ed. one-man task force against it.
I have not reviewed the: specific aanguage of,'tlie ordinance as to its 'definition of
"Security But I want to suggest, in approving the proposed' budget; that the Council
assure that -the definition of "Security" leaves room for both the prevention and eradication
of graffiti.
Thank-§ for your consideration.
WRY
Ver truly, yours,
wILLIAM.:R. FISEMAN