HomeMy WebLinkAboutResolution 2011-013 N.C.S. 01/24/2011Resolution No. 2011 -013 N.C.S.
of the City of Petaluma, California
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 6.04.050 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:
Resolution No. 2011 -013 N.C.S. Page 1
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:
Resolution No. 2011-013 N.C.S. Page 2
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 2011 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.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE:
AYES:
NOES:
ABSENT:
ABSTAIN
ATTEST
I hereby certify the foregoing Resolution was introduced and adopted by the
Council of the City of Petaluma at a Regular meeting on the 24` day of January,
2011, by the following vote:
Albertson, Barrett, Mayor Glass, Harris
None
None
Vice Mayor Healy, Renee
qj-o -
City Clerk
Ci
to
I i
Mayor
Resolution No. 2011 -013 N.C.S. Page 3
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ORDINANCE NO. 2104 N.C.S.
Introduced by Councilmember
Matt Maguire
Seconded by Councilmember
Pamela Torliatt
AN ORDINANCE OF THE CITE' COUNCIL OF THE CITY OF PETALUMA,
CALIFORNIA, ADDING CHAPTER 6.04 TO THE PETALUMA MUNICIPAL CODE
ESTABLISHING THE DOWNTOWN PETALUMA
BUSINESS IMPROVEMENT DISTRICT
RECITALS:
WHEREAS, on September 18, 2000, the City Council of Petaluma, on behalf of the City of
Petaluma, (the "City "), adopted Resolution #00 -177 N.C.S. (the "Resolution " "), declaring its
intention to establish a Parking and Business Improvement District (hereinafter referred to as the
"District "), to levy a benefit assessment on all businesses, trades, professions, and vendors within
said District, the proceeds of which shall be used for the public purposes herein described to
benefit the businesses in the District, pursuant to the Parking and Business Improvement Area
Law of 1989, Part 6 (commencing with Section 36500) of Division 18 of the California Streets
and Highways Code (the "Act "); and,
WHEREAS, pursuant to the Act and the Resolution, City conducted a public hearing, after
having given due notice thereof as required by law, on October 16, 2000, at 7:00 PM, at City
Hall, 11 English Street, Petaluma, California; and,
WHEREAS, said public hearing has been held and the City Council has heard and considered
all oral and written protests and other comments regarding such proposed actions; and,
Resolution No. 2011 -013 N.C.S.
Page 4
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
8 WHEREAS, in the opinion of this City Council, the businesses within the District will be
9 benefited by the expenditure of the funds raised by the assessments levied hereby in the manner
10 prescribed herein, and,
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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 WHEREAS, 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 charge shall 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
Resolution No. 2011-013 N.C.S. Page 5
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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, for purposes 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 CITE' 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:
CHAPTER 6.04 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT.
6.04.010 Definitions.
In order to distinguish between District businesses and for the purpose of calculating and
applying the amount of assessments owed, the following definitions shall apply:
Resolution No. 2011 -013 N.C.S.
Page 6
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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 (50 %) of whose gross income is
derived from "retail sales" as that term is defined under the 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, financial advisors, laboratories
(including dental and optical), hearing aid services, artists, photographers and designers.
Resolution No. 2011 -013 N.C.S.
Page 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 assessment(s) to participate in such votes.
26
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" referenced in Section 6.04.030, shall, commencing January 1, 2001, pay an annual
30 benefit assessment to the District in an amount adopted by Resolution of the City Council of the
31 City of Petaluma.
Resolution No. 2011-013 N.C.S. Page 8
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6.04.050 Purpose and Use of Benefit Assessments.
The types of improvements and activities proposed to be funded by the levy of assessments on
businesses in the District are 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.
6.04.060 Exclusions From Benefit Assessment.
No person or business shall be required to pay an assessment based on: (a) a residential use of
the property within the District, or (b) a non - profit organization as defined by Section 501 (C) (3)
or (C) (6) of the Internal Revenue Service Code located within the District.
6.04.070 New Business Assessment Waiver.
Any new business established within the District shall not.be required to pay an assessment for
the Billing Period during which said business is initiated. The business will have been
considered initiated on the date of issuance of the business license. This waiver shall not apply to
an existing business that has changed ownership or location within the District. City agrees to
supply the District with timely information regarding new businesses initiated within the District.
Resolution No. 2011 -013 N.C.S.
Page 9
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 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.
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 of all funds generated under this program shall be final.
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Resolution No. 2011 -013 N.C.S. Page 10
1 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
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 (31 st) day after its final passage.
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Resolution No. 2011-013 N.C.S. Page I I
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INTRODUCED and ordered Posted/Published this 16th day of October 2000. ADOPTED this
20th day of November, 2000, by the following vote:
AYES: Healy, Keller, Cader- Thompson, Hamilton, Maguire, Vice Mayor Torliatt, Mayor
Thompson
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Cit Cler
Mayor
APPROVED A - TO k RM:
City Attorn
Resolution No. 2011 -013 N.C.S.
Page 12
Exhibit 2 to Resolution 2011 -013 N.C.S.
DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT
FY 2011 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
2011 Budget Allocations
® 50% Security $32,500
® 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 - 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.).
Resolution No. 2011 -013 N.C.S. Page 14
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
Restaurants and Retailers
ZONE A
ZONE B
ZONE C
1 -3 Employees
$150
$100
$50
4 -6 Employees
$250
$166
$83
7+ Employees
$350
$232
$116
Antique Collectives
ZONE A
ZONE B
ZONE C
1 -3 Dealers
$150
$100
$50
4 -6 Dealers
$250
$166
$83
7+ Dealers
$350
$232
$116
Service Businesses
ZONE A
ZONE B
ZONE C
1 -3 Employees /Operators
$100
$75
$50
4 -6 Employees /Operators
$200
$150
$100
7+ Employees /Operators
$300
$225
$150
Professional Businesses
ZONE A
ZONE B
ZONE C
$125
$82
$41
Financial Institutions
ZONE A
ZONE B
ZONE C
$500
$500
$500
Lodging
ZONE A
ZONE B
ZONE C
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.
Resolution No. 2011 -013 N.C.S. Page 15