HomeMy WebLinkAboutStaff Report 4.A 12/05/2016Agenda Item #4.A
DATE: December 5, 2016
TO: Honorable Mayor and Members of the City Council through City Manag
FROM: William Mushallo, Finance Directo
SUBJECT: Public Hearing to Levy an Annual Assessment for Fiscal Year 2017 for the
Downtown Petaluma Business Improvement District and Approve Resolution
Establishing. the Levy for the 2017 Annual Assessment for the Downtown
Petaluma Business Improvement District
RECOMMENDATION
It is recommended that the City Council conduct the public hearing, and adopt the attached
Resolution Establishing the Levy for the 2017 Annual Assessment for the Downtown Petaluma
Business Improvement District.
BACKGROUND
In November 2000, the Petaluma City Council adopted Ordinance 2104 N.C.S., establishing the
Downtown Petaluma Business Improvement District ( DPBID), codified as Chapter 6.04 of the
Petaluma Municipal Code (PMC). A Board of Directors is established to administer the affairs
of the District.
PMC Section 6.04. 100 establishes annual procedures governing the levy of assessments. Under
PMC section 6.04.100, the Board of Directors must present the City Council with an annual
report and related budget information for review and approval prior to the City Council adopting
a Resolution of Intention giving notice of a public hearing at which written and oral protests may
be made. Following such action, the City Council can adopt a resolution approving the annual
report and levying the assessment.
The fiscal year for the DPBID begins on January 1st. The Resolution of Intention was adopted
by the City Council on November 21, 2016. The Notice of the Public Hearing was published in
the newspaper on November 24, 2016, and the mailing with Exhibits 1 and 2 was completed on
November 22, 2016.
DISCUSSION
On November 21, 2016, the City Council reviewed the annual report and proposed budget for the
2017 DPBID assessment and adopted a Resolution of Intention to Levy an Annual Assessment
for Fiscal Year 2017. In accordance with PMC Section 6.04. 100 the City shall not adopt, modify
or otherwise amend any Fiscal Year budget of the DPBID that is inconsistent in any way with
the Fiscal Year's budget as agreed to and presented by the DPBID Board of Directors except in
the case of a written majority protest (regarding elimination or modification of any specific
budget item) from the business owners which will pay 50% or more of the assessments proposed
to be levied as to any specific budget item pursuant to GC Section 36525 (b). In such case the
written protest regarding any specific budget item shall be grounds to eliminate or modify the
expenditure from the District's proposed budget pursuant to the written protest; otherwise, the
budget and levy shall remain unchanged.
At the public hearing, the Council will hear any testimony for and against the proposed levy,
including any protests, subsequent to which the Council should determine whether or not to
approve the levy. Any correspondence received prior to distribution of the City Council packet
is included as Attachment 6. Correspondence received after distribution of the packet will be
provided to the Council at the meeting.
FINANCIAL IMPACTS
There is no cost to the City for this program. The DPBID Board of Directors administers the
program. The DPBID Assessments are as follows:
27%
Security
$17,550
23%
Marketing
$14,950
30%
Beautification
$19,500
20%
Administration
$13,000
Total:
$655000
ATTACHMENTS
1. Resolution Establishing the Levy for the 2017 Annual Assessment for the Downtown
Petaluma Business Improvement District
2. Notice of Public Hearing
4. Draft copy of billing statement for DPBID assessments
5. Draft copy of letter to businesses to accompany billing statement
6. Correspondence (if received)
® Items listed below are large in volume and are not attached to this report, but may be viewed in the
City Clerk's office.
Current List of businesses being assessed.
M
ATTACHMENT 1
RESOLUTION ESTABLISHING THE LEVY FOR THE 2017 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:
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
WHEREAS, in accordance with Section 36533 of the Act, the City Council has
reviewed and approved the 2017 DPBID Annual Report and Budget submitted by the DPBID
Board of Directors at the regularly scheduled and duly noticed November 21, 2016 City Council
meeting; and,
WHEREAS, in accordance with Section 36534 of the Act, at the regularly scheduled and
duly noticed November 21, 2016 City Council meeting, the City Council adopted a Resolution of
Intention to levy the 2016 annual assessment for the DPBID; and,
WHEREAS, the Resolution of Intention was published in a newspaper of general
circulation in the City at least seven (7) days prior to the hearing; and,
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 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; and,
WHEREAS, in accordance with Section 36524 of the Act, on December 5, 2016, the
City Council held the public hearing on the 2017 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 December 5, 2016, all written protests received and not withdrawn were tallied and the City
Council determined that written protests concerning the assessment, or particular improvements
or activities to be funded by the assessment, were not received from the owners of the businesses
in the DPBID area that will pay 50 percent or more of the proposed annual assessment.
NOW, THEREFORE, BE IT RESOLVED that the Petaluma City Council hereby
levies the assessment described in the DPBID Annual Report and Budget for Fiscal Year 2017,
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.
E
BOUNDARY MAP EXHIBIT I TO RESOLUTION
EXHIBIT 2 TO RESOLUTION
Types of Businesses Assessed
• Retail, Restaurant and Antique Collectives: Businesses that buy and resell
goods or comestibles. Examples are clothing stores, shoe stores, office supplies
and antiques shops as well as businesses that sell prepared foods and drinks.
• Service Businesses: Businesses that sell services. Examples are beauty and
barbershops, repair shops, most automotive - orientated businesses, entertainment
businesses such as theaters, etc.
• Lodging: Includes renting rooms by the day or week to community visitors.
• Professional Businesses: Includes: Architects, Engineers, Attorneys, Dentists,
Doctors, Accountants, Optometrists, Realtors, Insurance Offices, Mortgage
Brokers and most other businesses that require advanced and /or specialized
licenses and /or advanced academic degrees.
• Financial Institutions: Includes Banking, Savings, Loan and Credit Unions.
Assessment by Type of Business Within Zones
ZONE A ZONE B ZONE C
Restaurants and
Retailers (1 -3 Employees)
$150
$100
$50
(4 -6 Employees)
$250
$166
$83
(7+ Employees)
$350
$232
$116
Antique (1 -3 Dealers)
$150
$100
$50
Collectives (4 -6 Dealers)
$250
$166
$83
(7+ Dealers)
$350
$232
$116
Service (1 -3 Emp /Operators)
$100
$75
$50
Businesses (4 -6 Emp /Operators)
$200
$150
$100
(7 +Emp /Operators)
$300
$225
$150
Professional $125 $82 $41
Businesses
Financial $500 $500 $500
Institutions
Lodging (1 -10 Rooms)
$150
$150
$150
(11 -25 Rooms)
$250
$250
$250
(26+ Rooms)
$350
$350
$350
Note: Retail, restaurant and service businesses will be charged on size which will be
determined by number of employees, either full -time or the equivalent made up of
multiples of part -time employees while Antique Collectives will be charged by number of
business licenses active within one location.
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December 22, 2016
NOTICE OF PUBLIC HEARING
ATTACHMENT 2
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
WHEREAS, under Section 6.04.100 of the Petaluma Municipal Code, the Board of
Directors established to govern the affairs of the DPBID must present the City Council with an
annual report and budget for review and approval prior to the City Council consideration of
levying a benefit assessment for the following fiscal year; and
WHEREAS, the requirements of Petaluma Municipal Code Section 6.04.100 are in
accordance with the Act, which establishes annual procedures governing the levy of assessments
pursuant to the Act, including preparation of an annual report, adoption of a resolution of intent
giving notice of a public hearing at which written and oral protests may be made concerning levy
of an annual assessment, and adoption of a resolution approving the annual report and levying
the assessment; and
WHEREAS, Section 36535 of the Act provides that public hearings on levy of annual
assessments pursuant to the Act must be conducted in accordance with Sections 36524 and
36525 of the Act, which provide as follows:
A. The City Council shall hear and consider all protests against the establishment of the
area, the extent of the area, or the furnishing of specified types of improvements or
activities within the area. A protest may be made orally or in writing by any interested
person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be
in writing and shall clearly set forth the irregularity or defect to which the objection is
made.
B. Every written protest shall be filed with the City Clerk at or before the time fixed for the
public hearing. The City Council may waive any irregularity in the form or content of
any written protest and at the public hearing may correct minor defects in the
proceedings. A written protest may be withdrawn in writing at any time before the
conclusion of the public hearing.
C. Each written protest shall contain a description of the business in which the person
subscribing the protest is interested sufficient to identify the business and, if a person
subscribing is not shown on the official records of the City as the owner of the business,
the protest shall contain or be accompanied by written evidence that the person
subscribing is the owner of the business. A written protest which does not comply with
this section shall not be counted in determining a majority protest.
D. If written protests are received from the owners of businesses in the proposed area which
will pay 50 percent or more of the assessments proposed to be levied and protests are not
withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings
to create the specified parking and business improvement area or to levy the proposed
assessment, as contained in the resolution of intention, shall be taken for a period of one
year from the date of the finding of a majority protest by the City Council.
E. If the majority protest is only against the furnishing of a specified type or types of
improvement or activity within the area, those types of improvements or activities shall
be eliminated; and
9
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
L- In accordance with the Americans ivith 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 ivith 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 fromn wearing scented products. The City Clerk hereby certifies that
this agenda has been posted in accordance with the requirements of the Government Code.
1754406.1
10
City of Petaluma, CA 2017
Downtown Business Improvement District (BID)
Invoice ATTACHMENT 4
fA5�
Remit To: Downtown BID c/o Mungle & Associates 628 E Washington St, Ste A Petaluma, CA 94952
BID Account #:
location: Address
PETALUMA, CA 94952
Phone: (707) 707 - 241 -0195• Email: petal umabid(a)cmungle.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, Restaurantand 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 Disdalmar Each ratunad item received due to bnaA6dent (binds will be elec4wicaly represented to the presenters' bank no more Ow two times in an effort to obtain payment. Dovmtohn BID is not responsible for
any addtional hank fees W %YX acaue due to Owe su6misslon of the reduned item.
11
ATTACHMENT 5
City of Petaluma, CA
Downtown Business Improvement District (BID) r4- L Mungle & Associates —as administrating agent 628 E. Washington Street Suite A V
Petaluma, CA 94952
January 2017
Dear Business Owner/ Tax Manager:
* *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
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