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HomeMy WebLinkAboutStaff Report 3.A 11/21/2016Agenda Item #3.A r'a nxl DATE: November 21, 2016 TO: Honorable Mayor and Members of the City Council through City Manager FROM: William Mushallo, Finance Directo SUBJECT: Resolution to Approve the 2017 Downtown Petaluma Business Improvement District Annual Report and Related Budget; Declaring the Intention to Levy the 2017 Annual Assessment; and Setting a Public Hearing on the Proposed 2017 Annual Assessment RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Approving the 2017 Downtown Petaluma Business Improvement District Annual Report and Related Budget, Declaring the Intention to Levy the 2017 Annual Assessment for the District, and Setting the Public Hearing on the Proposed 2017 Annual Assessment. BACKGROUND In November 2000, the Petaluma City Council adopted Ordinance 2104 N.C.S., establishing the Downtown Petaluma Business Improvement District (DPBID). In the Ordinance, codified in Chapter 6.04 of the Petaluma Municipal Code (PMC), a Board of Directors is established to administer the affairs of the District. Under PMC section 6.04.100, the Board of Directors must present the City Council with an Annual Report and related budget information for review and approval prior to adopting a Resolution of Intention to levy an annual assessment. The City Council cannot adopt, modify or otherwise amend the proposed budget of the district in a manner that is inconsistent in any way with the budget as agreed to and presented by the district board of directors except in the case of a written majority protest from business owners which will pay fifty percent or more of the assessments proposed to be levied. Section 6.04.050 of the Petaluma Municipal Code lists the types of improvements and activities that may be funded by the levy of assessments on businesses within the DPBID. Fundable improvements include, but are not limited to, the acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more including, benches, trash receptacles, decorations, fagade improvements, and permanent landscaping. The activities that may be funded include, but are not limited to, the promotion of public events which benefit businesses in the area and which take place on or in public places within the area; the furnishing of music in any public place in the area; and activities which benefit businesses located and operating in the area, including but not limited to, commercial shopping and promotional programs. The Petaluma Downtown Association (PDA) Board serves as the DPBID Board of Directors. The fiscal year for the DPBID begins on January 1st. The types of improvements and activities included in the 2017 proposed budget for funding by the levy of assessments on businesses in the District are as follows: 27% Security $17,550 23% Marketing $14,950 30% Beautification $19,500 20% Administration $13,000 Total: $65,000 A detailed listing of the activities included in these categories is provided in Attachment 7. DISCUSSION Pursuant to PMC Section 6.04.100, the district board of directors must annually present a budget for City Council review and approval prior to the beginning of each fiscal year. The purpose of this process is to comply with the California Streets and Highways Code Section 36500 et seq. ( "the Act ") provisions regarding public notice and hearing prior to establishing the benefit assessments for the following fiscal year. It is recommended that the public hearing be held on December 5, 2016. At that time the City Council will be asked to consider public comment and input on the proposed budget and the DPBID annual assessment. A draft version of the notice that is going out to approximately 600 businesses in the district boundary is provided in Attachment 4. Mungle & Associates performed the DPBID billing and collection services for 2016 and will carry out these same services in 2017. The services include printing and mailing the DPBID notices and attachments, processing and depositing all payments, and preparing and submitting reports to PDA staff for periodic review. Mungle & Associates will mail up to 3 notices and make a reminder call approximately 15 days after the deadline to pay. Mail for the DPBID will be sent to Mungle & Associates' office and processed for deposit into a DPBID bank account. Mungle & Associates also will provide year -round delinquent account collection services for 2014, 2015, 2016 and 2017 DPBID calendar years. FINANCIAL IMPACTS Over the past ten years, the DPBID has received the following from assessments: • 2007 $56,960 • 2008 $54,644 • 2009 $49,932 • 2010 $55,757 • 2011 $55,994 • 2012 $45,176 2 • 2013 $45,505 • 2014 $47,000 • 2015 $61,940 (includes collections from 2012, 2013, and 2014) • 2016 $71,544 (includes collections from 2014 and 2015) Mungle & Associates' fee for calendar year 2017 billing and collection services is $10.15 per business billed which is estimated to be $6,300.00. 2016 and 2017 collection services are included in the rate per business billed. 2015 and prior years' collections on past due accounts will be billed on an hourly basis not to exceed 25% of the collected amount. Fees will be invoiced to the PDA and paid for by the PDA. ATTACHMENTS 1. Resolution Approving 2017 Annual Report and 2017 Budget and Declaring Intention to Levy Annual Assessment 2. DPBID Annual Report, Budget and Map for 2017 Fiscal Year 3. Ordinance 2104 N.C.S. (Exhibit 1 to Resolution) with Exhibit A to Ordinance 4. Draft Public Notice 5. Letter of Correspondence 6. Draft DPBID Invoice and Letter to Business Owners with Attachments 7. 2016 Fiscal Year DPBID Funds Received and Expenditures and Financial Information from the Petaluma Downtown Association ATTACHMENT 1 RESOLUTION APPROVING THE 2017 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT AND RELATED BUDGET; DECLARING THE INTENTION TO LEVY THE 2017 ANNUAL ASSESSMENT FOR THE DISTRICT; AND SETTING A PUBLIC HEARING ON THE PROPOSED 2017 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: 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 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 F. WHEREAS, the requirements of Petaluma Municipal Code Section 6.04.100 are in accordance with the Act, which establishes annual procedures governing the levy of assessments pursuant to the Act, including preparation of an annual report, adoption of a resolution of intent giving notice of a public hearing at which written and oral protests may be made concerning levy of an annual assessment, and adoption of a resolution approving the annual report and levying the assessment; and WHEREAS, Section 36535 of the Act provides that public hearings on levy of annual assessments pursuant to the Act must be conducted in accordance with Sections 36524 and 36525 of the Act, which provide as follows: A. The City Council shall hear and consider all protests against the establishment of the area, the extent of the area, or the furnishing of specified types of improvements or activities within the area. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. B. Every written protest shall be filed with the City Clerk at or before the time fixed for the public hearing. The City Council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. C. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. D. If written protests are received from the owners of businesses in the proposed area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to create the specified parking and business improvement area or to levy the proposed assessment, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. E. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated; and WHEREAS, the 2017 DPBID Annual Report proposes no changes in the boundaries, method of assessment, or rate of assessment related to the DPBID; and the proposed DPBID 2017 Budget establishes the following budgetary priorities with estimated revenues and expenditures: 5 27% Security $17,550 23% Marketing $14,950 30% Beautification $19,500 20% Administration $13,000 Total: $65,000 WHEREAS, the 2017 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 2017 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 2017 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 2017 to pay for improvements and activities within the DPBID which is attached and made a part of this Resolution as Exhibit 1 in accordance with Chapter 6.04 of the Petaluma Municipal Code and the Act. The City Council reviewed and approved the DPBID 2017 Annual Report and Budget at their November 21, 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 December 5, 2016 at 7:00 PM, at the Petaluma City Council Chambers, 11 English Street, Petaluma, CA, concerning levy of the assessment proposed for the DPBID for calendar year 2017. At the hearing, written and oral protests may be made in accordance with California Streets and Highways Code Sections 36524 and 36525. ATTACHMENT 2 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT, BUDGET AND MAP FOR 2017 1. Changes in Boundaries: None are proposed. 2. Changes in the Basis or Method of Assessment: None are proposed. 3. Changes in Classification of Businesses: None are proposed. 4. Improvements /Activities to be Undertaken & Related Budget: As proposed in the budget below and detailed in Attachment 7. 5. Surplus/Deficit Carried Over from Prior Year: None 6. Contributions from Other Sources: None Downtown Petaluma Business Improvement District 2017 Budget Allocations 27% Security $17,550 23% Marketing $14,950 30% Beautification $19,500 20% Administration $13,000 Total: $65,000 Security - 27 % - 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 DPBID funds for the Keller Street Garage.) Marketing - 23% - 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 - 30% - A volunteer committee meets to consider requests for investing in beautification projects downtown. Administration - 20% - Collected funds go to the day -to -day operations of the PDA office. Cost centers include rent, salary expense, and event coordination (implementation of downtown events like Butter and Egg Days, Antique Faires (2), Art and Garden Festival, etc.). 7 Types of Businesses Assessed • Retail, Restaurant and Antique Collectives: Businesses that buy and resell goods or comestibles. Examples are clothing stores, shoe stores, office supplies and antiques shops as well as businesses that sell prepared foods and drinks. • Service Businesses: Businesses that sell services. Examples are beauty and barbershops, repair shops, most automotive - orientated businesses, entertainment businesses such as theaters, etc. • 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 Antique (1 -3 Dealers) ZONE A ZONE B ZONE C Restaurants and $250 $166 $83 Retailers (1 -3 Employees) $150 $100 $50 (4 -6 Employees) $250 $166 $83 (7+ Employees) $350 $232 $116 Antique (1 -3 Dealers) $150 $100 $50 Collectives (4 -6 Dealers) $250 $166 $83 (7+ Dealers) $350 $232 $116 Service (1 -3 Emp /Operators) $100 $75 $50 Businesses (4 -6 Emp /Operators) $200 $150 $100 (7 +Emp /Operators) $300 $225 $150 Professional $125 $82 $41 Businesses Financial $500 $500 $500 Institutions Lodging (1 -10 Rooms) $150 $150 $150 (11 -25 Rooms) $250 $250 $250 (26+ Rooms) $350 $350 $350 Note: Retail, restaurant and service businesses will be charged on size which will be determined by number of employees, either full -time or the equivalent made up of multiples of part-time employees while Antique Collectives will be charged by number of business licenses active within one location. WORM ATTACHMENT 3 AMU EXHIBIT 1 TO RESOLUTION - w 1 ORDINANCE No., 2104N.C,S. 2' 4 5 Introduced by Councihnember Seoondodby Councilmember 6 7 Matt Ma ire : Pain, ela Torliatt .9 10- • 12 AN ORDWAN' C:C, OF alj-lj� CTT-v CO ,-461L OF ThEi Cfw oF' FETAL- fjALk, - 13 CALIFORNIA.,•A )jl))NG CATER 6.04 TO Tio, PE•TA.LUNA, nZi MC4AL CQDJP,,' 14 EST"USUMG• THE D OWNT6WN 1 ?ETA.LumA 15 . ' .DUS SS 1WRO VE1IV ENT D) S'>? MT 16 17 RECITALS; 18 . 19 ` MI REAS, , on September 18, 2000, the City Council of Petaluma, on' behalf of the City of 20 Petaluma, .'(the "City"), adapted Resolution #OD�177 N.C.S. (the `gZesalutio' >"), declaring its 21 intention to establish a Farldng and Business Improvement District (hereinafter referred to as the 22 "District "), to levy a benefit assessment on all businesses, tTades; p -rofessiorks; and vendors within 23 said District, the- proceeds of WM011 shall be used for the public purposes Herein described 'to 24 benefit the businesses in the District, pursuant to tlie Parldng -and Business Improvement Area. 25 -Latin of 1589,. Part 6 (coibmen-cing with - Section 36500) of Division 18 of the California Streets 26 and•Eighways Code (the, ".Act"); and, 27 28 ' WB11G1 REAS, pursuant to the .Act 'and the Resolution, City conducted a public hearing, after 29 having given due notice thereof as -required by law, on Octob'r 16, 2000, at '7;00 PK at City .30 Hdll, 11 English Street,-Petaluma, Calif6hnia; and, 3i 32 WX[EREA.S, 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. 2,1.04 NCS page 1 10 r - - I 'WEREA.S, protests, in writing from businesses in the proposed District paying 50pf or more of 2 the proposed assessment have not been received; and, 4 WEE''REA'8, this City Council has ' now• defurnzined to establish. tare 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; aid, 7 8 _WBEPXIAS, in the opinion of this City Council, the businesses within the District will be 9 benefited by tho 'expenditure of the funds raised by the assessment's levied hereby in the manner 10 prescribed herein; and, 12 VWMtREA.S, this City Council may, for each of the purposes set forth -in Section 365101 & 36613 13 of the Act, establish ono 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 th6 benefit zones; and, 16 17 - W1FMREAS, all - provisions, of the Art 'applicable to the establislunezit, - or 18 disestabRshment of a District shall apply to.the. establishment, rhodifxcation, or disestaMshment 19 of benefit zones pursuant to the Act, and the establishment or the'nnodiBcation of any benefit 20 zone -shall follow, the. sarhe -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, 24 tiVIMIREAS, upon the request of the District. Board of Directors, this City Council 'shall. 25, commence ifre 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_ pr000dural 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 opdrate 30. physical improvements in the District; and, 31 Ord, 2104 NCS . - Page 2 . ' m I W)FEEREAS, adjustments may be made in the assessments or charges to businesses in the 2 District, or in the uses to which the revenue shall be put, 'as' specified in this Ordinan6e and 3 subject to Board approval, provided such changes are made by a supplemental Ordinance 4 adopted after a hearing before the City Council; and, 6 VffMR.EAS, for purposes of the assessments or charges to be imposed' pursuant td . this. 7 Ordinance, this City Council may mare a reasonable classification of businesses, giving 8 consideration• tor- -various factors, including geneiral benefit to: businesses and the degree 'of benefit 9 received from District programs; and; 10 11 Wflmi REA.S, the assessments or charges levied on businesses pursuant to this Ordinance shall, to 12 the maximum Went.-feasible, be levied on the basis of the estimated benefit to the businesses 13 within the District: 14 15. N'O'W, IBI RU FORE, THE, CITY COUNCM OF THE, crrY OF VET.A LUMA DOES 16 ORD.AJN AS FOLLOWS: 18 Section 1. Resolution- of Intention, Public Nearing and Findings. The Recitals hereof- ,which set 19 forth facts regarding the adoption of Council Resolutions, the conduct of public hearings. and ' '20 . •certain fiindings of the City Counrif;-are tyue and correct and incorporated herein by reference. 21 22 Section, 2 6,04 is hereby added to the Petaluma Mul icipal Code; providing as 23 - follows: ' 24 ' 25. CHAPTER 6.04 DOWNTOWNPETAZ ,tT.CvI,A_BUS:>N11SS IYNR0VEMEN`l~ DISTRICT, 27 6.04.010 Defxnitiozls. 28 In order to distinguish between District businesses and for the purpose of calculating and 29 applying the amount of assessments owed, the following definitions shall apply; 30 31 Ord. 2104 NCS Page 3 12 1 A., Retail Bus`wl esses- "Re-tail Businesses" include all businesses not Covered by other 2 definitions set'out in this section, at least fifty percent (50 %) of whose gross income is 3 derived from " xetail sales" as- that term -is defined under the Cali four a, Sales and Use Tax 4 Law, The fact that a substantial part of its business consists of sales other than retail sales 5 does .not ualudo said business from this classification so 'long as such other business 6 component do.es not, account for more -than fifty percent (50 %) of said business' gross 7 incoine; • 9 B. Restaurants: "Restaurant". businesses include cafesY eating establishments, sandwich 10 , shops, dinner houses, re'staurants'and fast food services and other similar businesses; 12 C, .Antique Collectives, "Antique. Collectives" • includes such businesses and business 13 locations that represent multiple dealers of aniique merchandise within one location.. 14 16 D, Service: "Service" businesses include businesses that combine retail and product services. 16 Examples are appliance stores, most automotive- oriented businesses, - repair .shops, 17 repairing and'servicing businesses and, service stations. Other businesses of a general 18 service type nature such as general office, .news and advertising media, printers, renting.. 19 and leasing businesses, utilities, • vending machine businesses, household finance 20 Companies, entertainment businesses and other similar businesses not otherwise included 21 in categories a, b, c, e, or g are included in tlus'saction; 22 23 . ' L, Lodging: "Lodging" businesses include inns, hotels-, motels, RV Parks and other similar 24. businesses; 25 26 P', Professional: 'Professional" includes 'attorneys, architects, accountants, engineers, 27 surveyozs, physicians, dentists, optometrists, chiropractors and -others in a ihedibal / 28 health service, field, consultants, real estate bi okers, financial advisors, laboratories 29 (including dental and optical ),:Bearing aid services, artists, photographers and designers, 30 31 Ord. 2104 NCS Page 4 13 I. G. , Pir ancial: Banks, savings•& loans, creditunions, etc. 3. R Calendar'Y'ear: "Calendar Year" mems.7anuary 1st to and including December 31st of 4 tlae same year. ; S 6 T. Billing Period; "Billing Period"' shall refer to the period of any -portion of a calendar year 7 in which abusiiness operation as defined above, 9 6.04.02,0 Establishment ofBotiadax•ias. 10 .A. Parking and Business Xxnpro•vement -District is hereby established pursuant to the Parking axed' I1 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 an the 13 ExNbit "A ", as attached, to the Ordinance adopted to create said Distri.ct.and incorporated herein . 14 by reference. This District shall be known as the "Downtown Petaluma Business :61nprovement 15 District" (the "District"). 16 17 6.04.030. Establishment of District Board -of Airectors. 18 There -shall be a Board of Directors ( "Board ") of the Districf to administer the affairs of the 19 District. Said Board shall be constituted of businesses within the District. Within the Board there 20 • shall bs a President, .Vice - President, Sccretary and Treasurer elected by the membership, and 21 such other officers as deemed necessary by the Board.' Such other of£'icers s;iall b6 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 to conducting. of .District •24 Business shall be based on one (1) vote per assessed doiiar, and said business must• be current in 25 paynient• of thbir•Distriet assessment(s) to participate in such votos, 26 27 6,04.040 Dstablislimew ofl3enelit,A,ssessmmt. `28 All 'businesses, trades, and pt- 9fessions located within the District boundaries shown on the 29 Exhibit "A-" ret'erenced in Section 6.04,030,. - shall, commencing 7anuary 1, 2001, pay an annual 30 benefit assessment to the District in an amount adopted by-Resolution of the City Council of tho 31 ' City ofPetaluma. Ord, 2104 NCS Page 5 14 1 61'04.050 Purpose and Use ofBeneflt Ass essments. - 2 The types of improvements and activities 'proposed to be funded by the levy of assessments on 3 businesses iix.the District are as 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 - improvam7 nts: 8 l Benches; . 9 2 Trash zoceptacles; ; 10 3 • Decorations; 11 4 Faoade imiprovernents; 12 . , S 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- tape 16 place on'or'in public places within the area, 17 2 Furniswng,ofznusic in any public place in the area; 18 3 Activities which benefit businesses located and operating iii the area, including 19 but not limited to commarciat shoo' pping and promotional programs. 20 21 6,04.(760 Ext sions From BexiefitAssessment, .22 No person. or business shall be required to pay an assessment based ox (a) a residential use of 23 the property within. the District, or*. (b) a non -profit organizati6n 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 $usixiess 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 opissuance of the business- license. This waiver, shall not apply to 30' an existing business that has changed. awnerslup or Iocation withiix the District. City agrees to 31 supply the District with timely information regarding now-businesses initiated within the District, Ord, 2104 NCS Page 6 15 1 6.04.090 Collection ofDownt:own•BenefitAssessment. 2 The' benefit assessment authorized by this Ordinance for Downtow' n. Ntaluma businesses 3 (Section 5,0 hereof), shall be billed and collected each Calendar Year; The M)'Advisoiy Board 4 may, from time to time, assess late charges on unpaid PM 'assessment charges. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6.04.090 'V'oluntary Contributions to District, Contributions to the District shall be permitted on a voluntary basis. The. boundary of the District shall not b.e modified as a result of the contribution, nor shall said contributing business be considered a member of the District for, voting'or other purposes. However, said business making a voluntary contribution maybe entitled to participate in the programs of the District upon a finding by the Board of Directors that thb District derives a benefit from said' business' participatidn in the program, , 6.40.100 Annu,al Budget process. Pursuant to the Act,• it sbalf be necessary fox the District Board of Directors to present an annual- budget- for City Council -review and approval prior to the begin=1 g of each Fiscal Year...' The purpose, -of this process is to comply with the Act provisions regarding public notice and hearing prior to establishing.the benefit assessments for the following Fiscal Year, City shall not adopt, modify or.otherwlse amend. any Fiscal.Year budget of the District that is inconsistent in any way with said Fiscal Year's budget as agreed to and pres6nted by the District Board of Directors except: -in the case of a4ritten majority protest (regarding elfinift ion or modification of any specific budget item) from business' owners, which will pay 50% or more of the assessmeaits 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 said ,expenditure from the District's proposed budget pursuant to the Wt tten protest. 6.40.110. Decisions l _t.egardingExpeuditureofFunds, As provided for within the guidelines of SB 1424, decisions of.tbe District Board of Directors regarding expenditure of all funds generated under this program shall be final. Ord. 2104 NCS 'age 7 16 1 6.40.120 DistrictProceeds Do Not Offset City �ervlces. 2 City specifically find's and declares that the funds derived from the District shall not. be used to 3 offset or. dimiuish current maintenance, capital improvement prograrixs, including but not limited 4 to, public pxoperty and' sid6walk cleaning, street cleaning -and maintenance, • tree -maintenance, 5 restroom cleaning and maintenance, The City is not bound or obligated to' any specific amount 6 of funding to tie District. 7 -8 6.40.130 Msestablishm6nt of the District. 9 Proceeding to; disestablishi the District shall. be initiated by the City Council following the 10. pzesen ation of a petition to the City Council signed by business owners paying 50n /o or xnora of • 11 the assessments levied in the District. Proceedings t6 disestablish the District shall follow the 12 procodures 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 ure not withdrawn 14 as to reduce the protests below the 50 %'.1ovel. In the event of.disestablishment of the District, emairurig- revenues of the District shall be refunded to paying lusiness owners in a.. pro -rata 16 manner calculated, in the same manner as was used to establish the, most 'recent assessrrients 17 applied in the District. 19 : Section 3, If any 'section, subsection, sentence, clause or phrase of this ordinance is, for any 20 raason, held to be invalid or unconstitutional, . such invalidity or unconstitutionality shall not 21. affect the validity or constitution4lity 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 facia that 24 • any one or more other sections, subsgctions, sentences, clauses, or phrases be declared invalid or 25 unconstituti6nal. 26 27 Section-4. The ordinance shall take effect upon the thirty-first (3lst) day after its final passage. 28 29 Ord. 2104 NOS Page 8 17 I INJ.TR_ODUCED and ordered Posted/Pubfished this 16th day of October 2000, ADOPTED this 2 20th day of November, 2000, by the followii g vote: 4 AYES: Healy, Keller, Cader- Thompson Hamilton Maguire; Vice Mayor Toxliatt; Mayor S• Thompson :6 7 NOES,Non:a 9 .ABSENT: None 10 Al. ABSTAIN: None 12 13 '14 Mayor 15 16 ATTEST: APPRO'VEET A 1$ . 19 Ci CIEr i City Attorn Ord, 2104 NCS . J? ago 9 18 El XTIIMIT A TO ORIDINANCr, 2104 N.C.8. 19 z. David Glass Mayor Cbris Albertson Teresa Barrett Mike Healy Gabe Kearney Dave King Kathy NEller Councilmembers Finance Department 11 English Street Petaluma, C4 94952 Phone (707) 778 -4352 Fax (707) 931 -0667 E Mail: finance @ci petah n a.ca.us General Semites Phone (707) 778 -4384 Purchasing Phone (707) 778 -4352 Fax (707) 931 -0667 E Mail: f inance@cipe taluma. ca.us Utility Billing Phone (707) 778 -4350 Fax (707) 931 -0667 E -Mai I.- titilitybills@ci.petalwiia.ca.us POST OFFICE Box 61 PETALUMA, CA 94953 -0061 November 22, 2016 DRAFT I' ATTACHMENT 4 NOTICE OF PUBLIC HEARING RESOLUTION APPROVING THE 2017 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT AND RELATED BUDGET; DECLARING THE INTENTION TO LEVY THE 2017 ANNUAL ASSESSMENT FOR THE DISTRICT; AND SETTING A PUBLIC HEARING ON THE PROPOSED 2017 ANNUAL ASSESSMENT WHEREAS, on November 20, 2000, in accordance with California Streets and Highways Code Section 36500 et seq. ( "the Act "), the Petaluma City Council adopted Ordinance 2104 N.C.S., later codified as Chapter 6.04 of the Petaluma Municipal Code, establishing the Downtown Petaluma Business Improvement District ( "DPBID "), within the area described in Exhibit 1, which is attached to and made a part of this Resolution; and WHEREAS, Section 6.04.050 of the Petaluma Municipal Code lists the types of improvements and activities that may be funded by the levy of assessments on businesses within the DPBID as follows: A. The acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following improvements: 1. Benches 2. Trash Receptacles 3. Decorations 4. Fagade Improvements 5. Permanent Landscaping B. Activities including, but not limited to, the following: 1. Promotion of public events which benefit businesses in the area and which take place on or in public places within the area. 2. Furnishing of music in any public place in the area. 3. Activities which benefit businesses located and operating in the area, including but not limited to, commercial shopping and promotional programs; and 20 WHEREAS, under Section 6.04.100 of the Petaluma Municipal Code, the Board of Directors established to govern the affairs of the DPBID must present the City Council with an annual report and budget for review and approval prior to the City Council consideration of levying a benefit assessment for the following fiscal year; and WHEREAS, the requirements of Petaluma Municipal Code Section 6.04.100 are in accordance with the Act, which establishes annual procedures governing the levy of assessments pursuant to the Act, including preparation of an annual report, adoption of a resolution of intent giving notice of a public hearing at which written and oral protests may be made concerning levy of an annual assessment, and adoption of a resolution approving the annual report and levying the assessment; and WHEREAS, Section 36535 of the Act provides that public hearings on levy of annual assessments pursuant to the Act must be conducted in accordance with Sections 36524 and 36525 of the Act, which provide as follows: A. The City Council shall hear and consider all protests against the establishment of the area, the extent of the area, or the furnishing of specified types of improvements or activities within the area. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. B. Every written protest shall be filed with the City Cleric 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 RX WHEREAS, the 2017 DPBID Annual Report proposes no changes in the boundaries, method of assessment, or rate of assessment related to the DPBID; and the proposed DPBID 2017 Budget establishes the following budgetary priorities with estimated revenues and expenditures: 27% Security $17,550 23% Marketing $14,950 30% Beautification $19,500 20% Administration $13,000 Total: $65,000 WHEREAS, the 2017 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 2017 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 2017 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 2017 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 2017 Annual Report and Budget at their November 21, 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 December 5, 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 2017. 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 0 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 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 22 EXHIBIT I 23 EXHIBIT 2 Downtown Petaluma Business Improvement District FY 2017 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. S. Surplus/Deficit Carried Over from Prior Year: None 6. Contributions from Other Sources: None Downtown Petaluma Business Improvement District 2017 Budget Allocations 27% Security $17,550 23% Marketing $14,950 30% Beautification $19,500 20% Administration $13,000 Hei htend security during holidays and peak times Total: $65,000 BID 2017 Proposed Projects 106,16 Projected Revenue Total Possible $ 65,000 Projected from total district data Expected $ 56,550 Assuming 87% collections Proposed Projects Expected Possible Notes SecuMd Patrols S 7,750 Private security patrols Thurs -Sat 10 m-4am 52 weeks Additional security 5 7,750 Hei htend security during holidays and peak times Misc. Security $ 2,050 Event driven Securi 27% $ 15,268 $ 17,550 Destination marketing downtown S 2,216 Destination marketing ads & editorial in Chamber & Visitors guide Valentines Event S 1,600 Posters, banners, ads, social media Sonoma Magazine $ 11200 113owntown marketing Sidewalk Sale S 1,000 IStreet banner 5400, additional banners $150 advertising $500 Freeway Billboard Si na e 5 1,000 Freeway billboard si na a for peak events in downtown Go Local Video $ 600 Joint effort with Chamber, City fora go local video for downtown shopping Trick or Treat $ 700 Posters, maps, ads, balloons Holiday Marketing season $ 3,300 Merchant Open house, balloons, horse & wagon, entertainment, ft ers, posters, ads Holiday shopping ift guide Sonoma S 1,200 Sonoma county Press democrat7Ar us Online ads Press Democrat S 500 Online ad click through to website Holiday shopping ift guide Merin S 600 Marin country ads Holiday lighting 5 295 Cost was 51,571 reimbursements ofS1,388 net cost $295 to light up Putnam Plaza and Trees Radio ad campaign 5 839 Radio ads $2,769 reimbursment $1950, net $639 Marketing 23% S 13,007 $ 14,950 ' Holiday Decorations $ 5,500 70 Holiday banners, 8 wreaths inst2ll2ti0in up and down, cleaning, updating and storage Street TeamCleanin S 5,000 Downtown partnership Eogram Paint supplies for graffiti clean - up 5 500 Paint, supplies for grali tti clean u in dovmtown core and garage Si na e S 2,000 Directional si na a to downtown Plants /misc decorations 5 1,500 Plants throughout downtown & specific event decorations for downtown Spring Banners 5 5,000 70 spring banners Beautification 30% S 16,965 $ 19,500 Administration Costs $ 1,300 lWabsite updates and maintenance 6 710 Telephone & PG &E 5 400 Insurance S 3,950 Wages & benefits 5 240 Office supplies $ 6,400 BID processing local) Administration 20% S 11,310 $ 13,000 GRAND TOTAL I S 56,550 1 S 65,000 24 Security - 27% - 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 separate contract not paid for with DPBID funds for the Keller Street Garage.) Marketing - 23% - 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 - 30% - A volunteer committee meets to consider requests for investing in beautification projects downtown. Administration - 20% - Collected funds go to the day -to -day operations of the PDA office. Cost centers include rent, salary expense, and event coordination (implementation of downtown events like Butter and Egg Days, Antique Faires (2), Art and Garden Festival, etc.). 25 Types of Businesses Assessed • Retail, Restaurant and Antique Collectives: Businesses that buy and resell goods or comestibles. Examples are clothing stores, shoe stores, office supplies and antiques shops as well as businesses that sell prepared foods and drinks. • Service Businesses: Businesses that sell services. Examples are beauty and barbershops, repair shops, most automotive - orientated businesses, entertainment businesses such as theaters, etc. • Lodginjj: 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 Antique (1 -3 Dealers) ZONE A ZONE B ZONE C Restaurants and $250 $166 $83 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 76 Emp /Operators) $200 $150 $100 (7 +Emp /Operators) $300 $225 $150 Professional $125 $82 $41 Businesses Financial $500 $500 $500 Institutions Lodging (1 -10 Rooms) $150 $150 $150 (11 -25 Rooms) $250 $250 $250 (26+ Rooms) $350 $350 $350 Note: Retail, restaurant and service businesses will be charged on size which will be determined by number of employees, either full -time or the equivalent made up of multiples of part -time employees while Antique Collectives will be charged by number of business licenses active within one location. M. PETALUMA DOWNTOWN ATTACHMENT 5 ASSOCIATION Our mission is to contribute to the betterment of the Petaluma Historic Central Area and to promote and enhance its position as the city's retail and commercial center. November 21, 2016 The Honorable Mayor David Glass & Petaluma City Council Members Petaluma Downtown Business Improvement District - Financial Impacts: Over the past ten fiscal years, the BID has received the following from assessments: 2005 $51,379 2012 $45,176 2006 $54,054 2013 $45,505 2007 $56,960 2014 $47,000 2008 $54,644 2015 $61,940 included collections from 2012, 2013 and 2014 2009 $49,932 2016 $71,544.80 includes collections from 2014/15 2010 $55,757 2011 $55,994 This the first year of local collections with Mungle & Associates providing the billing of the BID. Overall collection of the BID is up due to closer monitoring and it being easier to pursue collections on a local basis. We have had particular success in recouping delinquent accounts from financial institutions. The BID was able to cover some of the key areas in keeping the downtown vibrant and safer during 2016,. The BID advisory committee meets monthly to discuss priorities and this past year priority was to clean up the data base for billing, and pursue outstanding delinquencies. Priorities continue to beautify downtown with lighting, plants and banners to provide for a festive atmosphere. The Downtown security camera contract ended in May 2016 and will not be continued. The BID committee has agreed to increase on foot security with a private security company and extend those during peak holidays and during events. Marketing and events are crucial to raising the profile of the downtown retail center throughout the year, and assisting small businesses with marketing campaigns. Mungle & Associates will be retained as the billing agent in 2017 and continue with the collection process for those who are delinquent for 2014, 2015, 2016 , and bill out the newly identified unbilled businesses for 2015 -16. The BID billing will include four items, a cover letter; a BID invoice, a map of the BID area and an information update form to help us keep up with changes of address etc. The BID budget is allocated as follows and approved by the PDA Board of Directors. Percentages have be altered as a result of no longer having cameras. Please note % changed as follows: 27% Security $17,550 23% Marketing $14,950 30% Beautification $19,500 20% Administration $13,000 TOTAL: $65,000 Attached you will find an accounting of all BID expenditure's from 2005 thru 2016, a BID analysis and proposed BID expenditure for 2017. si erely Mc sker ative 'rector Depot Building • 210 Lakeville Hwy, Petaluma CA 94952 • www.PotalumaDowntown.com Ph: (707) 762 -9348 • Fax (707) 283 -0528 - Email: Info @PetalumaDowntown.com 27 City of Petaluma, CA Downtown Business Improvement District (BID) Mungle & Associates — as administrating agent 628 E. Washington Street Suite A Petaluma, CA 94952 Dear Business Owner/ Tax Manager: ATTACHMENT 6 January 2017 * *2017 CITY OF PETALUMA DOWNTOWN BUSSINESS IMPROVEMENT DISTRICT (BID) ** The City of Petaluma City Council partners with Mungle & Associates for assistance in the collection of its Downtown Business Improvement District (BID) fees. This mailing is to transmit the 2017 Downtown Business District fees invoice that is due on or before March 31, 2017 and becomes delinquent on April 1, 2017. This invoice is based and is calculated per 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 submitted to them. Please be aware that it is important that the number of employees is accurately calculated and reported. 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 zoning or number of employees, please contact Mungle & Assoc. at (707)- 241 -0195 or email Mungle & Assoc. at petalumaBID @cmungle.com. Mungle & Associates Remittance Address: Mungle & Associates Attn: Petaluma BID 628 E. Washington Street. Suite A Petaluma CA 94952 (Make Checks Payable to: Downtown 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 2017 annual report of the BID, approved by the Petaluma City Council in December 2016, assessment of funds will be used as follows: 27% Downtown Security $17,550 23% Downtown Marketing $14,950 30% Downtown Beautification $19,500 20% Administration $13,000 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 28 City of Petaluma, CA 2017 _ Downtown Business Improvement District (BID) Invoice �85f3 Remit To: Downtown BID c/o Mungle & Associates 628E Washington St, Ste A Petaluma, CA 94952 BID Account #: Location: Address PETALUMA, CA 94952 Phone: (707) 707- 241 -0195• Email: petalumabid0cmunclle.com Due on or before: March 31, 2017 Delinquent: April 1, 2017 10% Penalty Phase: May 1, 2017 YOUR BID CATEGORY: ZONE _ - Business type: 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. Description of Business Zone A Zone B Zone C Retailers and Restaurants: 0 -3 employees $ 150.00 $ 100.00 $ 50.00 4-6 employees $ 250.00 $ 166.00 $ 83.00 7+ employees $ 350.00 $ 232.00 $ 116.00 Antique Collectives: 0-3 employees $ 150.00 $ 100.00 $ 50.00 4-6 employees $ 250.00 $ 166.00 $ 83.00 7+ employees $ 350.00 $ 232.00 $ 116.00 Service Businesses: 0 -3 employees $ 150.00 $ 75.00 $ 50.00 4-6 employees $ 200.00 $ 150.00 $ 100.00 7+ employees $ 300.00 $ 225.00 $ 150.00 Professional Businesses: $ 125.00 $ 82.00 $ 41.00 Financial Institutions: $ 500.00 $ 500.00 $ 500.00 Lodging: 1 -10 rooms $ 150.00 $ 150.00 $ 150.00 11 - 25 rooms $ 250.00 $ 250.00 $ 250.00 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: $ If Paid after May 1st, 10% Penalty: $ Total Due: $ (Make Checks Payable To: Downtown BID) Returned Check Dlsdalmor: Each mbrned item recaved due to insufriderd funds wit be decOnrdcaty represemod to the present era' bank no more than tm times in on effort to obtain payment Dovmtan BID is not responsible for any additional bank fees W wa a=ue due to there stbmisslon of the reUYW item- 29 Petaluma Downtown BID Business Update Form Remittance Address: Petaluma Downtown BID c/o Mungle & Associates • 628 E Washington St, Ste A, Petaluma, CA 94952 Phone: (707) 241 -0195 Email: petalumaBID(&cmungle.com Instructions: Please complete this form if you have any changes to your account. To ensure that we have the correct information regarding your business and the number of employees you have, please update applicable sections on this form and return with your BID payment and remittance form to the address listed above. Thank you for taking the time to provide updated information on this form. Business Name: D BA: Business Mailing Address:, Account #: (Address /City State/Zip) Business Physical Address: (Street Address /City State /Zip) Owner's Name: Owner's Phone: ( ) Business Phone: ( ) Business Fax: ( Contact Person: Email Address: Description of Business: Function of Company: Business Classification (select all that apply): • Retail Business or Restaurant • Antique Collectives Tvae of Business (select one): ❑ Sole Proprietorship ❑ General Partnership ❑ Corporation Contact Phone: ( o Professional Business ❑ Service Business ❑ LLC - Single Member ❑ LLC - Multi Member ❑ Governmental Agency ❑ Financial Institution ❑ Lodging ❑ Professional Association DLLP ❑ Other (please explain) Business closed or no longer doing business in the municipality? Please complete the below information and return either by Fax to 707 - 765 -1583 or by email to Downtown BID at PetalumaBID 0cmungle(a)com. I hereby affirm that my business indicated above closed or is no longer operating in the above mentioned municipality as of (Date business closed). Signature:, Form Completed By: Print Name: 30 31 Petaluma Downtown Association Bid Funds Received and expenditures :.. For Fiscal Year Ending June 30, 2016 BID Percentages ATTACHMENT 7 Date Transaction 07.01.15 Beginning Balance 07.09.15 Deposits 08.14,15 Deposits 10,20,15 Deposits 12.10. 15 Deposits 02.26.16 Deposits 05,11.16 Deposits Subtotal 7/31/2015 Credit Card 91712015 Credit Card 9/7/2015 Credit Card 9/7/2015 Credit Card 9/21/2016 Credit Card 9/30/2015 Credit Card 10/31/2015 Credit Card 10/31/2015 Credit Card 10/31/2005 Credit Card 11 /412015 4� 12/8/2015 Credit Card 12/31/2015 Credit Card 1/31/2016 Credit Card 1/31/2016 Credit Card 1/31/2016 Credit Card 1/31/2016 Credit Card 2/29/2016 Credit Card 2/29/2016 Credit Card 2/29/2016 Credit Card 2/29/2016 Credit Card 2/29/2016 Credit Card To/From Constant Contact Deluxe printing Fed Ex Constant Contact Studio M Publishing Constant Contact Petaluma Coffee Constant Contact Petaluma Coffee 189 Work Constant Contact Constant Contact Deluxe printing Amazon Amazon Constant Contact Fedex Constant Contact For the Love of Petaluma Vista Print City of Petaluma Social Media (37,50) (60.00) (122.70) Permit for Holiday (74.00) event 32;:. , ATTACHMENT 7 28% 32% 20% 20% TOTAL. r Description Marketing Security Beautification Admin , 15,570.93 15,028.99 27,915.56 - 2,397.93 56,117.55 is Bid Income 2,925.83 3,343.81 2,089.88 2,089.88 10,449.40 Bid Income 803.60 918.40 574.00 574.00 2,870.00 Bid Income 2,783.87 3,181.57 1,988.48 1,988.48 9,942.40 Bid Income 1,176.28 1,344.32 840.20 840.20 4,201,00 Bid Income 22.96 26.24 16.40 16.40 82.00 Bid Income 12,320.00 14,080.00 81800.00 8,800.00 44,000.00 C 20,032.54 22,894,34 14,308.96 14,308.96 71,544.80 Social Media (26,00) (200,79) Signage (152.22) Social Media (37.50) (1,985.00) Social Media (37,50) ; Coffee for meetings (23.00) .. Social Media (37.50) : , � • ,; Coffee for meetings (23,00) _ PDA Workshop (60.00) Social Media (37.50) : E Social Media (37,50) (73.06) 74,72 (13.88) Social Media {37.50} Social Media (37,50) (60.00) (122.70) Permit for Holiday (74.00) event 32;:. , Petaluma Downtown Association Bid Funds Received and expenditures For Fiscal Year Ending June 30, 2016 BID Percentages 28% 32% Date Transaction To /From Description Marketing Security 3/7/2015 4625 Karla Schikore (182.30) 417/2016 Credit Card Constant Contact (37.50) 411212016 4667 Fishman Supply (465.42) 4/3012016 Credit Card Constant Contact Social Media (37.50) 5131/2016 Credit Card Constant Contact Social Media (37,50) 6130/2016 Credit Card Constant Contact Social Media (37.50) 713112015 Credit Card Facebook Sidewalk Sate (40,Q0) 8/12/2015 4382 Barber Sign Sidewalk Sale (354.13) 8/19/2015 4387 Sonoma Media Sidewalk Sale (504.00) Investments .10131/2015 Credit Card Craigs Party Store Trick or Treat (323,29) 1119/2015 4491 Petaluma Post Trick or Treat (198,00) 11/16/2015 4498 Northbay Bohemian Trick or Treat (256,00) 11/16/2015 4500 Sonoma Media Trick or Treat Investments (349,00) 12/2/2015 4512 Oliver Gadfo -Green Santas Arrival (225,00) 12/2/2015 4515 Patrick Prather Holiday Open House (550,00) 12/312015 4518 GS Troop Holiday Open House (75.00) . .12/312015 4519 PHS Music Boosters Holiday Open House (75,00) 12/7/2015 Credit Card Staples (27.59) 12/8/2015 Credit Card The Chamber Link Holiday Open House (60,00) 12/8/2015 Credit Card BlInq (27.99) 12/8/2015 Credit Card Facebook 12/8/2015 Credit Social Media (20.Q0) Card Craigs Party Store Holiday Open House (94,39) 12/08/2015 Credit Card Petaluma Pies Holiday Open House (27.74) 12110/2015 5/25/1912 Peggy Celia Holiday Open House (75.00) 12/10/2015 4530 Oliver Gadfo -Green Holiday Open House (375,00) 12/10/2015 Radio Ads refund 10000.00 12/22/2015 4541 Northbay Bohemian (309.60) 01/08/2016 Credit Card Facebook Social Media (29,94) 01112/2016 4568 Wine Country Radio Ads (1,893,33) 01/27/2016 Radio Ads refund 500,00 . Sonoma Media Holiday ads 03/04/2016- 4619 Investments (1,187.33) 04/2912016 Radio Ads refund 260.00 20% 20% Beautification Admin TOTAL Petaluma Downtown Association Bid Funds Received and expenditures ; For Fiscal Year Ending June 30, 2016 : BID Percentages 28% 32% 20% 20% TOTAL : Date Transaction To /From Description Marketing Security Beautification Admin 7/112015 4323 First Alarm Security, Inc Security Services (312.09) 8/5/2015 4370 First Alarm Security, Inc Security Services (312.09) 9/8/2015 4419 First Alarm Security, Inc Security Services (312.09) ; 10/13/2015 4470 First Alarm Security, Inc Security Services (312.09) 11/2/2015 4483 First Alarm Security, Inc Security Services (312.09) 12/22/2015 4540 First-Alarm Security, Inc Security Services (312,09) 1/512016 4551 First Alarm Security, Inc Security Services (312.09) 2/11/2016 4587 First Alarm Security, Inc Security Services (312.09) 3/1712016 4621 First Alarm Security, Inc Security Services (312.09) :. 414/2016 4652 First Alarm Security, Inc Security Services (335.50) :. 5/3/2016 4705 First Alarm Security, Inc Security Services (335.50) 6/1/2016 4744 First Alarm Security, Inc Security Services (335.50) ." 6/2212016 4768 First "Alarm Security, Inc Security Services (1 63.41) 8/26/2015 3912 AT &T Capital Services It Camera Security (290.88) 8/26/2015 3952 AT &T Capital Services It Camera Security (290.88) ; 9/1/2015 3986 AT &T Capital Services It Camera Security (295.88) "10120/2015 4020 AT &T Capital Services It Camera Security (290.88) 11/16/2015 4035 AT &T Capital Services It Camera Security (295.88) 12/14/2015 4049 AT &T Capital Services It Camera Security (295.88) " 1/26/2016 4075 AT &T Capital Services It Camera Security (295.88) 2/16/2016 4104 AT &T Capital Services It Camera Security (295.88) :. 3/1512016 4131 AT &T Capital Services It Camera Security (295.88) ; 4/2012016 4180 AT &T Capital Services it Camera Security (295,88) 5!3/2016 4215 AT &T Capital Services It Camera Security (203,15) 6/1/2016 4245 AT &T Capital Services It Camera Security (305.88) , 7/31/2015 Credit Card Rex Hardware Supplies (38,95) 8/31/2015 Credit Card Kmart Supplies (11.06) 9/8/2015 4410 Pacific Display (5,701.21) ' 11/2/2015 4484 Pacific Display Banners and Installation (11,470.67) - - 12(712015 4527 Pacific Display Holiday Banners (4,700.00) ; '5/24/2016 4732 Staples (27.09) :. 617/2016 4754 Staples (9.63) 6/22/2016 4772 Staples (10.79) Petaluma Downtown Association Bid Funds Received and expenditures .: For Fiscal Year Ending June 30, 2016 ; BID Percentages 28% 32% 20% 20% TOTAL. ° Date Transaction To /From Description Marketing Security Beautification Admin 10/13/2015 4461 Muniservices BID Billing Processing, (594.00) 12/14/2015 4535 Muniservices BID Billing Processing. (66,00) 02101/2016 4589 Muniservices BID Billing Processing, (20.50) 04/12/2016 4774 Mungle & Associates BID Billing Processing. (3,407.25) 7.1,15- 6.30.16 Bid Share of adman costs PDA absorbed shortfall 2,397,93 7.1.15-6.30.16 Bld,Share of admin costs Dues & Subscriptions (20 °86) 7.1.15- 6.30.16 Bid Share of admin costs Employee Benefits (1,343.37) i .7.1,15-6-30.16 Bid Share of admin cost: Equipment Maintenance (14.88) 7.1.15-6.30.16 Bid Share of admin cost: Insurance (202.57) 7.1.16-6.30.16 Bid Share of admin cost; license and Tax (17,54) Bid Share of admin cost: Office Supplies & Postage (518.91) 7.1;15- 6.30,1G Bid Share of admin cost: Payroll tax Expense (564.93) 7.1.15-6.30,16 Bid Share of admin costs Professional Fees (739.66) 7.1.15- 6.30.16 Bid Share of admin costs Promotion (39.50) 7.1.15. 6,30.16 Bid.Share of admin cost: Public Relations. _ .. 7.1.15-fi.30.16 Bid Share of admin costs Rent (42.00) 7.1.15. 6.30.16 Bid Share of admin costs Software (49.00) 7.1.15-6.30.16 Bid Share of admin costs Telephones (358.51) 7.1.15-6,30.16 Bid Share of admin costs Utilities {132.18} 7.1,15- 6.30.16 Bid Share of admin costs Wages (4,679.50) 7.1,15- 6,30,16 Bid Share of admin cost; Website (16.09) • ; : :I Total BID expenses (9,236.90) (7,431,55) (21,969,40) (10,405.23) (49,043.08) Ending balance BID 26,366.57 30,491.78 20,255.12 1,505,80 78,619.27 ; ' e BID 2017 Proposed Projects 10.6.16 Projected Revenue Total Possible $ 65,000 Projected from total district data Expected $ 56,550 Assuming 87% collections Proposed Projects Expected Possible Notes Security Patrols $ 7,750 Private security patrols Thurs -Sat 10pm -4am 52 weeks Additional security $ 7,750 Heightend security during holidays and peak times Misc. Security $ 2,050 Event driven Security 27% $ 95,268 $ 17,550 Destination marketing downtown $ 2,216 Destination marketing ads & editorial in Chamber & Visitors guide Valentines Event $ 1,500 Posters, banners, ads, social media Sonoma Magazine $ 1,200 Downtown marketing Sidewalk Sale $ 1,000 Street banner $400, additional banners $150 advertising $500 Freeway Billboard Signage $ 1,000 Freeway billboard signage for peak events in downtown Go Local Video $ 600 Joint effort with Chamber, City for a go local video for downtown shopping Trick or Treat $ 700 Posters, maps, ads, balloons Holiday Marketing season $ 3,300 Merchant Open house, balloons, horse & wagon, entertainment, flyers, posters, ads Holiday shopping gift guide Sonoma c $ 1,200 Sonoma county Press democrat/Argus Online ads Press Democrat $ 500 Online ad click through to website Holiday shopping gift guide Marin $ 600 Marin'country ads Holiday lighting $ 295 Cost was $1,571 reimbursements of $1,388 net cost $295 to light up Putnam Plaza and Trees Radio ad campaign $ 839 Radio ads $2,789 reimbursment $1950, net $839 Marketing 23% $ 13,007 $ 14,950 Holiday Decorations $ 5,500 70 Holiday banners, 8 wreaths installatioin up and down, cleaning, updating and storage Street Team Cleaning $ 5,000 Downtown partnership program Paint supplies for graffiti clean- up $ 500 Paint, supplies for grafitti clean up in downtown core and garage Signage $ 2,000 Directional signage to downtown Plants /misc decorations $ 1,500 Plants throughout downtown & specific event decorations for downtown Spring Banners $ 5,000 70 spring banners Beautification 30% $ 16,965 $ 19,500 Administration Costs $ 1,300 Website updates and maintenance $ 710 Telephone & PG &E $ 400 Insurance $ 3,950 Wages & benefits $ 240 Office supplies $ 6,400 BID processing locally Administration 20% $ 11,310 $ 13,000 GRAND TOTAL $ 56,550 $ 65,000 36 Previous years BID Actual Collections 2009/10 2009/10 2010/11 2010/11 2011/12 2011/12 2012/13 2012/13 2013114 2013/14 2014/15 2014/15 2015/16 2015/16 2016/17 YEAR 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2017 Actual % Actual % Actual % Actual % Actual % Collected $ 59,000 $ 50,637 $ 52,850 $ 44,793 $ 51,914 $ 45,505 $ 61,940 $ 71,544 $ 65,000 BUDGET 10.6.16 37 2009/10 2009/10 2010/11 2010/11 2011/12 2011/12 2012/13 2012/13 2013114 2013/14 2014/15 2014/15 2015/16 2015/16 2016/17 2016/17 BID 2008/9 2008/9 Actual % Actual % Actual % Actual % Actual % Actual % Actual % Actual % Budget Security 32% $18,880 40% $20,255 50% $26,425 50% $22,397 50% $25,957 50% $22,753 32% $12,882 32% $ 20,800 27% $ 17,550 Marketing 32% $18,880 30% $15,191 28% $14,798 28% $12,542. 28% $14,536 28% $12,741 28% $13,502 28% $ 18,200 23% $ 14,950 Beautification 16% $9,440 20% $10,127 20% $10,570 20% $8,959 20% $10,383 20% $9,101 20% $7,676 20% $ 13,000 30% $ 19,500 Administration 20% $11,800 10% $5,064 2% $1,057 2% $896 2% $1,038 2% $910 20% $9,180 20% $ 13,000 20% $ 13,000 100% $59,000 100% $ 50,637 100% $ 52,850 1005, $ 44,793 100% $ 51,914 100% $ 45,505 100% $61,940 100% $71,544 100% $ 65,000 09/10 Budget City billed approximately $65k 10/11 Budget Percentages are changed to accommodate increase in camera mtnc costs Cameras Original Contract = $16,000 PLUS Increase $6,000 /year = $22,000 Spartan $6,000 /year Administration Admin costs reduced due to free rent due to move to PVP Marketing Reduced by $500 to cover increased security costs Beautification Reduced by $1,000 to cover increased security costs 11/12 Budget No % changes 12/13 Budget No % changes 13/14 Budget Change in % approved by BID committee, effective Jane 2014 - result of reduction in camera lease contract back to 08/09 levels 14/15 Budget BID increase in income due to past payments coming in for 2012 thru 2015 15/16 Budget BID increase objective to receive payments from businesses not previously billed 16/17 change % distribution to increase downtown beautification due to security camera elimination 37 PETALUMA DOWNTOWN ASSOC BID ANALYSIS - START TO 06/30/16 BALANCE 07/04 -06/05 RECEIVED 07/05 -06/06 EXPENSES 07/05 -06 /06 BALANCE 07105 -06/06 RECEIVED 07/06 -06/07 EXPENSED 07/06 -06 /07 BALANCE 07/06 -06/07 RECEIVED 07107 -06/08 EXPENSED 07./07 -06/08 BALANCE 07/07 -06/08 RECEIVED 07108 -06109 EXPENSED 07108 -06/09 BALANCE 07/08 -06 /09 MARKETING 32% 852.67 15750.34 -7,206.04 9,396.97 20, 393.23 - 12,696.09 17,094.1'1 17, 503.04 - 10,644.00 23,953.15 14,254.09 - 21,012.12 17,195.12 1 R► :'_ . 32% 16% 20% 17,052.78 20,056.64 11494.36 15750.34 7875.17 9843.98 - 15,540.00 - 14,213.08 - 11,338.34 17,263.12 13,718.73 0.00 20, 393.23 10,196.61 12, 745.76 - 13,090.00 -18,1 "75.02 - 91708.04 24,566.35 5,740,32 31037.72 17, 503.04 8,751.52 10, 939.76 18,264.00 - 8,650.00 - 10,135.80 23,805.39 5,841.84 31841.68 14, 254.09 71127.05 81908.47 - 21,411.26 0.00 -141934.11 1 6,648.22 12,968.89 - 21183.96 PETALUMA DOWNTOWN 4:11) ANALYSIS — START TO 06/30/1Q, MARKETING SECURITY BEAUTIFICATION ADMINISTRATIVE TOTAL 32% 32% 16% 20% '100% I CHANGE IN PERCENTAGE% 30% 40% 20% 10% 100 ° /fl RECEIVED 07/09 -06/10 15,191.05 20,254.73 10,127.37 5,063.68 50,636.83 ' EXPENSED 07/09 -06/10 - 16,912.30 27,194.59 — 17,445.00 — 21634.85 — 64,186,74 BALANCE 07/09 - 06/10 15,473.87 91708.36 51651.26 244.87 31,078.36 CHANCE IN PERCE TAGEo 28% 50% 20% 2% 100% RECEIVED 07/10 -06/11 14,798.00 26,425.00 10,570.00 11057.00 52,850.00 EXPENSED 07/10 -06/11 — 151700.74 — 28,764.45 - 529.42 - 2,937.36 — 47,931.97 BALANCE 07/10 -06/11 14,571,13 79368.91 15,691.84 -11636.49 36,996.39 RECEIVED 07/11 -06/12 1,400.00 2,500.00 1,000.00 100.00 5,000.00 f c EXPENSED 07/1106/12 — 11,583.87 - 27,390.45 — 3,400.00 — 21418.14 - 44,792.46 BALANCE 07/11 -06/12 41387.26 — 17,521454 139291.84 — 3,953.63 39796:07 RECEIVED 07/12 -06/13 23,329.46 41,660.00 16,663.90 11666.39 83,319.75 E: EXPENSED 07/12 -06/13 — 11,986.39 — 28,062.66 — 91060.00 — 21804.77 — 51,913.82 :: . IM I 97.11,10i Y.11 1' •1 1 BALANCE 07/12 -06/13 RECEIVED 07/13 -06/14 EXPENSED 07/13 -06/14 BALANCE 07/13-06/14 Change in Percentages RECEIVED 07/14 -06/15 EXPENSED 07/14 -06115 BALANCE. 07/1 4 -06/15 RECEIVED 07/15 -06/16 EXPENSED 07/15 -06/16 BALANCE 07115 -06/16 MARKETING SECURITY BEAUTIFICATION ADMINISTRATIVE 32% 32% 16% 20% 15,730.33 •31924.20 20,995.74 - 5,092.01 9,867.70 17,621.01 71048.40 704.83 -14,519.70 -10,943.36 - 7,704.39 -6,362.11 119078.33 21753.45 209239.75 - 10,749.29 28% 32% 20% 20% 17,343.20 191820.80 12,388.00 12,388.00 12,850.60 71545.26 - 4,712.19 - 4,036.64 15,570.93 15,028.99 27,916.56 - 21397.93 20032.54 22894.34 14308.96 14308.96 - 9,236.90 - 71431.55 -21,969.40 - 109405.23 26,365.57 30,491.78 20,255.12 1,505.80 TOTAL 100 °Io 27,609.85 35,241.94 -39,529.56