HomeMy WebLinkAboutAgenda Bill 5.B 04/19/2004CITY OF PETALUMA, CALIFORNIA `°� asro►
AGENDA BILL
•Agenda Title; Discussion and Action Approving the -Annual ' Meeting Date: April 19, 2004
Report of the Downtown Petaluma Business Improvement District
and, Adopting a Resolution of Intention to Levy an Annual
Assessment for Fiscal'Year 2004. Meeting Time: ® 3:00 PM
❑ 7:00 PM
Category (check one): ❑ Consent Calendar ❑ Public Hearing ® New Business
❑ Unfinished Business ❑ Presentation
Department: Director.:_ Contact Person: Phone Number:
ED & Redevelopment Paull Ma angella Paul Marangella 778-4581
All
Cost of Proposal: 0 Account Number: NA
Amount Budgeted: 0
Name of Fund: NA
Attachments to Agenda Packet Item:
L Annual Report from the Business Improvement District (BID) to the Petaluma City Council
2. Resolution of Intention to Levy an Annual Assessment
3. Correspondence from the Petaluma Downtown Association (PDA) regarding the BID_ proposed
budget allocation.
4. Ordinance 2104 N.C.S.
Summary Statement: -
In November 2000, the Petaluma CityCouncil adopted Ordinance 2104 N.C.S, establishing the Downtown
Petaluma (BID). In the ordinance; a Board of Directors is established to administer the affairs of the
District. Under section 6.40.100. of ,the Ordinance, the Board'of Directors must present the City Council
with an Annual Report and related budget information for review and approval prior to adopting a
resolution of intention to levy an annual- assessment for Fiscal Year 2004. The fiscal year for the BID
begins on January lst
Therefore, the purpose of this item is to present the BID Annual Report and Proposed 2004 Downtown
BID Budget for review and request that the City Council adopt a resolution of intention to levy an
assessment for FY 2004.
Recommended Citv Council Action/SueLyested Motion:
It is recommended that the City Council adopt the attached resolution approving the 2004 Downtown
Business Improvement District Annual. Report and Proposed Budget and adopt a resolution of intention to
levy an assessment for FY 2004'.
Reviewed by Finan&Director:: Reviev d bTC' , nev: Approve A City Manager:
ate; , r. Date:
Todav's Date: Revision # and Date devised: File Code:
04/06/04 # H:\pm\AgendastaffReort04l9O4Final.doc
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CITY OF PETALUMA, CALIFORNIA.
APRIL 19, 2004
AGENDA DEPORT
FOR
DISCUSSION AND ACTION APPROVING THE ANNUAL REPORT OF THE DOWNTOWN
PETALUMA BUSINESS IMPROVEMENT DISTRICT AND ADOPTING A RESOLUTION OF
INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2004.
EXECUTIVE SUMMARY:
In November 2000, the Petaluma City Council. adopted Ordinance 2104 N.C.S, establishing the
Downtown Petaluma Business Improvement District,(BID). In the ordinance, a Board of Directors is
established to administer the affairs of the District. Under section 6.40.100 of the Ordinance, the Board
of Directors must present the City Council with an Annual Report and related budget information for
review and approval tprior to adopting a resolution of intention to levy an annual assessment for Fiscal
Year 2004. The fiscal year 'for the BID begins on January Jt:.
Therefore, the purpose ,of this ,'item is to present the BID Annual Report and Proposed 2004 Downtown
BID Budget for review, and request .that the City Council adopt a resolution of intention to levy an
assessment for FY 2004.
2. BACKGROUND:
The types of improvements and acfivities proposed for funding by the levy of assessments on businesses
in the District include-
Sales/Marketing -.32% - These funds are used to supplement additional funds paid by
individual merchants -for the, combined marketing efforts to create public awareness of thematic
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, t'o obtain favorable prices for" advertising that would not ordinarily be
available to the individual merchant.
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Beautification - 32% _ A volunteer committee meets to ' consider requests. for investing in
beautification projects downtown. The main focus of the committee will be to maintain 'the new
landscaping installed bythe PCDC.
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.).
Security.- 16% - The PDA contracts, currently with Grapevine Security, for coverage of the
general downtown area to be performed on a regular nightly schedule. (The administration of
this contract ,is not to' be confused with a separate contract not paid for with BID funds for the
Keller Street Garage.)
2
It was originally estimated that the BID would generate in. excess of $75,000" annually. The City 012
Petaluma has performed all the billing and collection services for the BID. However, actual revenuqW
from the BID have fallen far, short of that estimate. Approximately 50% of the BID members have paid
their assessments. Some have suggested that this has occurred, for the following reasons:
• Confusion About:Mand'atory Assessment:.. There has been confusion about whether the annual
assessment. is mandatory or not. Thinking that it was voluntary-, ,some have declined to submit
their annual payments. In the next assessment, a cover letter will be provided which states that
the assessment is mandatory.
• Confusing. Billing Method: The billing method, required each business. to calculate their own
assessment using a confusing formula and minimal 'instructions. Rather than try to figure out
the correct payment, many chose to simply defer payment until they were contacted. The
follow-up contact never came: This 'problem. will be fixed in the .next assessment, asr the BID
members will receive a bill where the calculafion'is performed foci them and a specific amount to
pay is7 shown as :on the bill.
• Lack of Consequences for Non -Payment: When BID members did not pay their assessments
in, 2001; the BID Board took a friendly approach hoping to encourage member. to "do the right
thing" and pay their assessments. When people refused to pay, there were no penalties imposed.
Consequently, in subsequent years, .the problem persisted and grew. The .BIDBoard is
considering the possibility of sending delinquencies to collection and imposing penalties.
The 2004 Annual. Report does not propose to change the district boundaries' or increase the assessment
or modify the method of assessment.
3. ALTERNATIVES:
None. There is no alternative process established in Ordinance 2104`N.C.S.
4. FINANCIAL,IMPACTS
Over the past three years, the BID has received the following from assessments:
® 2001 - $27,633
• 2002 $37;202
2003 .$23,862
The BID Board .of Directors has allocated the proposed budget of $72,000. This assumes ,that 90% of
the approxiniately 690 BIDmembers pay an average assessment of $116.- The BID budget i`s allocated
as follows:
0 32%
Beautification
$23,040
0 32%
Marketing
$23,04.0
• 20°/o
Administration
$14,400
• 16%
Security
$11.520
Total:
$72,000
CONCLUSION:
The BID Directors' has submitted its Annual Report and 2004 Proposed Budget. Several 'billin�
improvements should enhance revenues in 2004. The City Council is requested to approve the annual
report and call for a public hearing to levy the assessment.
6. OUTCOMES OR PERFORMANCE MMEASUREMENTs THAT WILL IDENTIFY SUCCES'&OR COMPLETION:
The BID assessment is issued in May 2004, including recommended billing improvements and more
aggressive collection of delinquencies, resulting in am increase in collections.
7. RECOMMENDATION:
It is recommended that the City Council adopt.the attached resolution approving the Annual Report of
the Downtown Petaluma Business Improvement District and related Budget allocation and calling for a
public hearing to levy the 2004 assessment.
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Attachment 1
Annual Deport from the.BfD to the Petaluma City Council
5
Downtown Petaluma Business Improvement District
FY 2004 Annual Deport
1. Changes in Boundaries: None are proposed.
2. Changes in the Basis or Method of Assessment: None are proposed.
3. Changes in Classification of Businesses: None are proposed.
4. Improvements/Activities to be Undertaken & Related Budget: As proposed in the budget below.
5. - Surplus/Deficit Carried Over. from Prior Year: None
6. Contributions from Other Sources: None
Downtown Petaluma Business, Improvement District
2004 Budget Allocations
0 32% Beautification $23,040
■ 32%
Marketing
$23,040
■ 20%
Administration
$14,400
■ 16%
Security
$11,520
Total:
$72,000
is Beautification - 32% - A volunteer committee meets to consider requests for investing in
beautification projects downtown. The main focus of the committee will be to maintain the new
landscaping installed by the PCDC.
Sales/Marketing - 32% - These funds are used to supplement additional funds paid by
individual merchants for the combined marketing efforts to create ,public awareness of thematic
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.
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 F,aires (2), Art and Garden Festival, etc.).
Security - 16% - The PDA contracts, currently with Grapevine Security, for coverage of the
general downtown area to .be performed on a regular nightly schedule. (The administration of
this contract is not to be confused with a separate contract not paid for with BID funds for the
Keller Street Garage.)
0
Tvpes of Businesses Assessed
0
Retail and Restaurant: Businesses that buy and resell goods, examples are clothing stores, shoe stores,
office supplies and businesses that sell prepared foods and drinks.
Antique Collectives: Includes such businesses and business locations that represent multiple dealers of
antique merchandise within one location.
Service Businesses: Businesses that sell services. Examples .are beauty and barbershops, repair shops,
most automotive -oriented 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, Mortgage Brokers, and most other businesses that require advanced and/or advanced
academic degrees.
Financial 'Institutions: Includes banking and savings and loan institutions as well as credit unions, etc.
Restaurants &.Retail
Antique Collectives
Service Businesses
Professional Business
Financial Institutions
Lodging
Assessment by Tvve of Business Within Zones
Zone A .
$.150 (1-3 Employees)
$250 (4-6 Employees)
$350 (7+ Employees)
$150 (1-3 Dealers)
$250 (4-6 Dealers)
$350 (7+ Dealers)
$100 (1-3 Employees/Operators)
$200 (4-6 Employees/Operators)
$300 (7+ Employees/Operators)
$125
$500
$150 (1-10 Rooms)
$300 (11=25 Rooms)
$450 (26+ Rooms)
Zone 'B
$100 (1'-3 Employees)
$1.66 (4-6 Employees)
$232 (7+ Employees)
$100 (1-3 Dealers)
$166 (4-6 Dealers)
$232 (7+ Dealers)
$ 75 (1-3 Employees/Operators)
$150 (4-6 Employees/Operators)
$225 (7+ Employees/Operators)
$82
$500
$150 (1-10 Rooms)
$300 (11-25 Rooms)
$450 (26+ Rooms)
Zone C
1 $ 50 (1-3 Employees) .
$ 83 (4-6 Employees)
$116 (7+ ' Employees)
$.50 (1-3 Dealers) 1
$ 83 (4-6 Dealers) l
$116 (7+ Dealers) 1
$ 50 (1-3 Employees/Operators)
$100 (4-6 Employees/Operators)
$150 (7+ Employeesioperators)
$41
$500
$150 (1-10 Rooms)
$300 (11-25 Rooms)
$450 (26+ Rooms)
Note: Businesses in the Restaurant & Retail category will be charged according to the average number
of employees reported quarterly to the State of California Employment Development Department or*
Form DE-6. Businesses in the Antique Collectives and Services Businesses categories will be charged
according to the number of dealers/operators active within one location.
7
Attachment 2
•
RESOLUTION # 2004-
APPROVING THE 2004 DOWNTOWN PETALUMA BUSINESS IMPROVEMENT
. DISTRICT. ANNUAL REPORT AND RELATED BUDGET, DECLARING THE
INTENTION TO. LEVY THE 2004 ANNUAL ASSESSMENT FOR THE DISTRICT,
AND FIXING A TIME AND PLACE FOR A PUBLIC HEARING ON THE PROPOSED
2004 ANNUAL ASSESSMENT
WHEREAS, in 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 mote including, but not limited to, the following
improvements:
1. Benches
2. Trash receptacles
3. Decorations
4. Farade 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. Fumishing,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 DPBIDmust present the City Council with an annual report and budget for review and
approval prior to 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
tt
HEIR E-AS, Section 36535 of the Act provides that public hearings on levy of annual assessments pursuant to
e 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 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.
4 '
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 City Council has reviewed and discussed the 2004 DPBID Annual Report and Budget at a
duly noticed public meeting in accordance with State law; and
WHEREAS, the 2004 DPBID Annual Report proposes no changes in the boundaries, method of assessment, or
rate of assessment related .to the DPBID; and
WHEREAS, the proposed PDBID 2004 Budget establishes the following budgetary priorities with estimated
revenues and expenditures, as specified in the 2004 PDBID Annual Report:
■ 32%
Beautification
$23,040
■ 32%
Marketing
$23,040
■ 20%
Administration
$14,400
■ 16%
Security
$11,520
Total:
$72,000
WHEREAS, the 2004 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 2004
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 2004 fiscal year.
0
NOW, THEREFORE, BE IT RESOLVED by the Petaluma City Council as follows:
is1. ' The above recitals are true and correct and hereby declared to be findings of the Petaluma City Council.
2. The Downtown Petaluma Business Improvement. District ("DPBID") 2004 Annual Report and related
budget, which is attached to and made a part of this resolution as Exhibit 2, is hereby preliminarily
approved.
3. The billing improvements, recommended in the staff report are hereby preliminarily approved.
4. Subject to California Streets and Highways Code Section 36500 et seq. (the "Act") and a public hearing
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 2004 to pay for improvements and activities within
the DPBID in accordance with Chapter 6. 04 of the Petaluma Municipal Code and the Act.
5. A public hearing will occur on May 3, 2004, at 3 p.m., at the Petaluma City Council Chambers, 11
English Street, Petaluma, California, concerning levy of the 'assessment proposed for the DPBID for
fiscal year 2004. At the hearing, written and oral protests may be made in accordance with California
Streets and Highways Code Sections 36524 and 36525.
6. The Petaluma City Clerk is hereby authorized and directed to publish a copy of this resolution in
accordance with California Streets and Highways Code Section 36534 in a newspaper of general
circulation in the City of Petaluma at least 7 days before the -public hearing on levy of the proposed 2004
DPBID assessment.
0
Adopted this 19th day of April, 2004 by the following vote:
Glass
Canevaro
Harris
Healy
Moynihan
O'Brien
Torliatt
ATTEST:
Gayle Petersen, City Clerk
Councilmember Aye No Absent
David Glass, Mayor
10
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LJ
Exhibit 1
Boundary of the Petaluma Downtown Business Improvement District
11
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BUSINESS IMPROVEMENT
DISTRICT
PETALUMA DOWNTOWN
ASSOCIATION
NOVEMBER 2000
CITY OF PETALUMA
CALIFORNIA
AL
\r85 t3
Legend
Downtown BID
City Limit
Note: Labels represent zones
within the Business Improvement
District.
,� / � NEAR CIR- �" ., ��,..�•...
EASTON"DR /
L i
0 255 510 1,020 1,530 2,040
z z,.. — Feet
-7 —'0_ _- DISCLAIMER
_ I LON..'DR • These maps or plans were compiled and or digitized via electronic
' _ I means utilizing many source documents. It is intended to be
representative of certain physical, legal and geometric features
,�`!t� I IlAE/1Ct0 within the City of Petaluma, CA and its environs. The existence or
pl 1 location of facilities must be field verified and this document does
ill not imply or guarantee neither adequate capacity nor the availability
• �'� of service. The City of Petaluma assumes no responsibility regarding
the accuracy of the information presented herein for legal
documentation, representations of actual construction or for any
other purpose for which this map was not intended
J-LLLLLU, \ S ,)T, T` GIS Division, April 7, 2004
Exhibit 2
DoWntownTetaluma lBusiness Improvement District
FY 2004 Annual. Report
1. Changes in Boundaries: None are proposed.
2. Changes in the Basis or Method. of Assessment: None are proposed.
3. Changes in Classification of Businesses: None are proposed.
4. Improvements/Activities to be Undertaken & Related Budget: As proposed in the budget below.
5. Surplus/Deficit Carried Over, from Prior Year: None
6. Contributions from Other Sources: None
Downtown Petaluma Business Improvement District
2004 Budget Allocations
■ 32% Reautification .$23;040
■ 3.2%0 Marketing $23;040
® 20% o Administration s14,400
® 16% o Security $11,520
Total: $729000
Beautification - 32% - A volunteer- committee meets to consider requests for investing in
beautification projects downtown. The main focus of the committee will. be to maintain the new
landscaping installed by the PCDC.
Sales/Marketing - 32%, - These funds are used to supplement additional funds paid by
individual merchants for the, combined marketing efforts to create public awareness of thematic
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.
Administration - 20.% o ' 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).
Security - 16% - The PDA contracts, currently with Grapevine Security, for coverage of the
general downtown area. to be performed on a regular nightly schedule.. (The administration of
this contract is not to be confused with a separate contract not paid for with BID funds for the
Keller Street Garage.)
12
Tvnes of Businesses Assessed
Retail and Restaurant: Businesses that buy and resell goods, examples are clothing stores, shoe stores
office supplies and businesses that sell prepared foods and drinks.
Antique Collectives: Includes such businesses and business locations that represent multiple dealers of
antique merchandise within one location.
Service Businesses: Businesses that, sell services;. Examples are beauty and barbershops; repair shops,
most automotive -oriented 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, Mortgage Brokers, and most other businesses that require advanced and/or advanced
academic degrees.
Financial Institutions: Includes banking and savings and loan institutions as well as crediVunions, etc.
Restaurants &_ Retail
Antique Collectives,
Service'Businesses.
Assessment by Tvpe of Business Within Zones
Zone A I Zone B
$150 (1-3 Employees) $100'(1-3 Empl_oyees)
1 $250 (4-6 Employees) $166 ,(4-6 Employees)
$350 (7+ Employees) $232 (7+ Employees)
1 $150 (1-3 Dealers)
_ $250 (4-6 Dealers)
$350 (7-+ Dealers)
$100 (1-3 Employees/Operators)
$200 (4-6 Employees/Operators)
'$300 (7+ Employees/Operators)
ProfessionAl.Business 1 $125
Financial Institutions 1 $500
Lodging $150 (1-1.0 Rooms)
$300 (11725 Rooms)
$450 (26+ Rooms)
$100 (1-3 Dealers)
$166 (4-6 Dealers)
$232''(7+ Dealers)
$ 75 (1-3 Employees/Operators),
$150 (4-6.Employees /Operators)
$225 (7+ Employees/Operators)
$82
1 -$500
j_ $150 (1-10 Rooms)
1 $300 (11-25 Rooms)
$450 '(26+ Rooms) _
. Zone C
$ 50 (1-3 Employees)
$ 83 (4-6 Employees), ,
$116 (7+ Employees)
� l
$ 50 (1-3 Dealers)
$ 83 (4-6 Dealers),
1 $116 (7+ Dealers)
$ 50 ,o1 3 Employees/Operators)
$100 (4-6 Employees/Operators)
` $15Q (7+ Employees/Operators)
$150 (1-10.Rooms)
$300 (11-25 Rooms)
5450 (26+ Rooms)
Note: Businesses in the' Restaurant & Retail category will be charged. according to the average
number of employees reported quarterly to the State of California Employment:'Development
Department on Form .DE-6. Businesses in the Antique. Collectives and Services Businesses
categories will be charged according to the number of dealers/operators active within ;one
location.
13
i'7...._ Fr` is r`.
1 ORDINANCE NO. 2104 N.C. S .
2
3
4
5 Introduced by Councilmember Seconded by Councilmember
6
7 Matt Maguire Pamela Torliatt
8
9
10
11
12 AN ORDINANCE OF THE CITY COUNCILOF THE CITY OF PETALUMA,
13 CALIFORNIA, ADDING CHAPTER 6.04 TO THE PETALUMA MUNICIPAL CODE
14 ESTABLISHING THE DOWNTOWN PETALUMA
15 BUSINESS IMPROVEMENT DISTRICT
16
17 RECITALS:
�8
19 WHEREAS, on September 18, 2000, the City Council of Petaluma, .on behalf of the City of
20 Petaluma, (the "City"), adopted Resolution 900-177.N.C.S. (the "Resolution""), declaring its
21 intention to establish a Parking and Business Improvement District (hereinafter referred to as the
22 "District"), to levy :a benefit assessment on all businesses, trades, professions, and vendors within
23 said District, the proceeds of which shall be used for the public purposes herein described to
24 benefit the businesses in the District, pursuant to the Parking and Business Improvement Area
25 Law of 1989, Part 6 (commencing with Section 3650.0) of Division 18 of the California Streets
26 and Highways Code (the "Act"); and,
27
28 WHEREAS, pursuant to the Act and the Resolution, City conducted a public hearing, after
29 having given due notice thereof as required by law, on October 16, 2000, at 7:00 PM, at City
30 Hall, 11 English Street, Petaluma, California; and,
31
32 WHEREAS, said public hearing has been held and the City Council has heard and considered
all oral and written protests and other comments regarding such proposed actions; and,
Ord. 2104 NCS Page 1
I WHEREAS, protests in writing from businesses in the ,proposed District paying 50% or more of.
2 the proposed ,assessment have not been received; and,
3
4 WHEREAS, this City Council has now determined to establish the proposed District as a
5 Parking and Business Improvement Area, to provide for the imposition of a benefit assessment
6 and to adopt an ordinance to such effect; and,
7
9 WHEREAS, in the opinion of this City Council, the businesses within the District will be
9 benefited by the expenditure of the funds iaised by the assessments levied hereby in the manner
10 prescribed herein; and,
11
12 WHEREAS, this City Council may, for each of the purposes set forth in Section 3,6510 & 3'6513
13 of the Act, establish one or more separate benefit zones based upon the degree of benefit "derived
14 from the formation of the District, and may impose a tie -rod assessment or charge within each of
15 the benefit zones; and,
16
17 WHEREAS, all provisions of the Act applicable to ' the establishment,' modification, or
is disestablishment of a District shall apply to the 'establishment, modification, or disestablishment
19 . of benefit zones pursuant to the Act, and the establishment or the modification of any benefit
20 zone shall follow the same procedure as provided for under the establishment of .a parking and
21 business improvement district; and the disestablishment of a benefit zone shall, follow, the same
22 procedure as provide for disestablishment of a District; and,
23
24 WHEREAS, upon the request of the District. Board of Directors, this City Council shall
25 commence the proceedings required 'by law to amend the boundaries, assessments or charges
26 established pursuant to this Ordinance subject to approval of the Board of Directors of the
27 District as expressly provided for "herein; said modifications being made pursuant to the
29 procedural, requirements of the Act, but no assessment or charge, shall be modified which would
29 impair the ability of the District to meet the obligations of a contract to construct or operate
30 physical improvements in the District; and,
31
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Ord. 2104 NCS Page 2
l WHEREAS, 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 Ordinance 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,
5
6 WHEREAS, f6r purposes of the assessments or charges to be imposed pursuant to this
7 Ordinance, this City Council may make a reasonable classification of businesses, giving
8 consideration to various factors, including general benefit to businesses and the degree of benefit
9 received from District programs; and,
10
11 WHEREAS, the assessments or charges levied on businesses pursuant to this Ordinance shall, to
12 the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses
13 within the District.
14
15 NOW, THEREFORE, THE CITY. COUNCIL OF THE CITY OF PETALUMA DOES
16 ORDAIN AS FOLLOWS:
017
18 Section 1. Resolution of Intention, Public Hearing and Findings. The Recitals hereof, which set
19 forth facts regarding the adoption of Council Resolutions, the conduct of public hearings and
20 certain findings of the City Council, are true and correct and incorporated herein by reference.
-21
22 Section 2. CHAPTER 6.04 is hereby added to the Petaluma Municipal Code, providing as
23 follows:
24
25 CHAPTER 6.04 DOWNTOWN PETALUMA BUSINESS IlvIPROVEMENT DISTRICT.
26
27 6.04.010 Definitions.
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
Ord. 2104 NCS Page 3
1 A. Retail Businesses: "Retail 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
derived ,from "retail sales" as that term is defined under the California Sales and Use Tax
4 Law. The fact that a substantial part of its business consists.of sales other than retail sales
S does not exclude said business from this classification so long as such other-. business
6 component does not account for more than fifty percent (50%) of said business' gross
7 income;
8
9 B. Restaurants: "Restaurant" businesses include cafes, eating establishments, sandwich
10 shops, dinner houses, restaurants and fast food services and other similar businesses;
11
12 C. Antique Collectives: "Antique Collectives" includes such businesses and ' business
13 locations that represent multiple dealers of antique merchandise within one location.
14
15 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, f, or,g are included in this section;
.22
23 E. Lodging: "Lodging" businesses include inns, hotels, motels, RV Parks and other similar
24 businesses;
25
26 F. Professional: "Professional" includes attorneys, architects, accountants, engineers,.
27 surveyors, physicians, dentists, optometrists, chiropractors and others in a medical /
28 health service field, consultants, real estate brokers, financial advisors, laboratories
29 (including dental and optical); hearing aid services, artists, photographers and designers.
30
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Ord. 2104 NCS - Page 4
I G
3 H.
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6 I.
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Financial: Banks, savings & loans, credit unions, etc.
Calendar Year: "Calendar Year" means January 1st to and including December 31st of
the same year.
Billing Period: "Billing: Period" shall refer to the period of any portion of a calendar year
in which a business operation as defined above.
9 6.04.020 Establishment of Boundaries.
10 A Parking and Business Improvement District is hereby established pursuant to the Parking and
11 Business Improvement .Area Law of 1989, Streets and Highways Code Section 36500 et seq. The
12 boundaries of the. District and the benefit zones within the District shall be as set forth on the
13 Exhibit "A', as attached to the Ordinance adopted to create said District and incorporated herein
14 by reference. This District shall be known as the "Downtown Petaluma Business Improvement
15 District" (the "District").
16
017 6.04.030 Establishment of District Board of Directors.
18 There shall be 'a Board of Directors ("Board'.') of .the District to administer the affairs of the
19 District. Said Board shall be constituted of businesses within. the District. Within the Board there
20, shall be a President, Vice -President, Secretary. and Treasurer elected by the membership, and
21 such other officers as deemed necessary by the Board. Such other officers shall be appointed by
22 the Board of Directors at their discretion. All voting within -the District regarding election of
23 Board Members and any actions regarding the normal and routine conducting of District
24 Business shall be based on one '(1) vote per assessed dollar, and said business must be current in
25 payment of their District assessment(s) to participate in such votes.
26
27 6.04.040 Establishment of Benefit Assessment.
28 All businesses, trades, and professions located within the District boundaries shown on the
29 Exhibit "A" referenced in Section 6.04.030, shall, commencing. January 1, 2001, pay an annual
30 benefit assessment to the District in an amount adopted by Resolution of the City Council of the
0 City of Petaluma.
Ord. 2104 NCS Page 5
1 6.04.050 Purpose.and Use of Benefit Assessments.
2 The types of improvements and activities proposed to be funded by the levy of assessments on
3 businesses in the District 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 improvements:
8 1 Benches;
9 2 Trash receptacles;
10 3 Decorations;
l l 4 Facade improvements;
12 51 Permanent landscaping .
13
14 B. Activities including but not limited to the following:
15 1 promotion of public events which benefit businesses in the area and which take
16 place on or in public.places within the area; •
17 2 Furnishing of music in any public place in the area;
is 3 Activities which benefit businesses located and operating in' the area, including
19 but not limited to commercial shopping and promotional programs.
20
21 ' 6.04..060 Exclusions From Benefit Assessment.
22 No person or business shall be required to pay an assessment based on: (a) a residential use of
23 the property within the District, or (b) a non-profit organization as defined by Section 501 (C) (3)
24 or (C) (6) of the Internal Revenue Service Code located within the District.
25
26 6.04.070 New Business.Assessment'Waiver.
27 Any new business established within the District shall not -be required to pay an assessment for
28 the Billing Period during which said business, is initiated. The business will have been
29 considered initiated on the date of issuance of the business license. This waiver shall not apply to
30 an existing business that has changed ownership or location within the District. City agrees to
31 supply the District with timely information regarding new businesses initiated within the District.
0
Ord. 2104 NCS Page 6
1 6.04.080 Collection of Downtown Benefit Assessment.
.2 The benefit assessment authorized by this ' Ordinance for Downtown Petaluma businesses
3 (Section 5.0 hereof), shall be billed and collected each Calendar Year. The BID Advisory Board
4 may, from time to time, assess late charges on unpaid BID assessment charges.
5
6 6.04.090 Voluntary 'Contributions to District.
7 Contributions to the District shall be permitted on a voluntary basis. The boundary of the
8 District shall not be modified as a result of the contribution, nor shall said contributing business
9 be considered a member of the District for voting or other purposes. However, said business
10 making a voluntary contribution may be entitled to participate in the programs of the District
11 upon a finding by the Board. of Directors that the District derives a benefit from said business'
12 participation in the program.
13
14 6.40,100 Annual Budget Process.
15 Pursuant to the Act, it shall.be necessary for the District Board of Directors to present an annual
16 budget for City Council review and approval prior to the beginning of each Fiscal Year. The
017 purpose of this process is to comply with the Act provisions regarding public notice and hearing
18 prior to establishing the benefit assessments for the following Fiscal Year. City shall not adopt,
19 modify or otherwise amend any Fiscal Year budget of the District that is inconsistent in any way
20 with said Fiscal Year's budget as .agreed to and presented by the District Board of Directors
21 except in the case of a written majority protest (regarding elimination or modification of any
22 specific budget item) .from business owners which will pay 50% or more of the assessments
23 proposed to be levied as to any specific budget item 'pursuant to GC Section 36525 (b). In such
24 case the written protest regarding any specific budget item shall be grounds to eliminate or
25 modify said expenditure from the District's proposed budget pursuant to"the written protest.
26
27 6.40.110 Decisions Regarding Expenditure of 'Funds.
28 As provided for within the guidelines of SB 1424, decisions of the District Board of Directors
29 regarding expenditure. of all funds generated under this program shall be final.
30
(a
Ord. 2104 NCS Page 7
1 6.40.120 District Proceeds Do Not Offset City Services.
2 City specifically finds and declares that the funds derived from the District shall not. be used to
3 offset or diminish current maintenance, capital improvement programs, including but not limited
4 to, public property and sidewalk cleaning, street cleaning and maintenance, tree maintenance,
5 restroom cleaning and maintenance. The City is not bound or obligated to any specific amount
6 of funding to the District.
7
8 6.40.130 Disestablishment of the District.
9 Proceeding to disestablish the District shall be initiated by the City Council following the
10 presentation of a petition to the City Council signed by business owners paying 50% or more of
I the assessments levied in the District. Proceedings to disestablish the District shall follow the
12 procedures set forth in GC Section 36550. The City Council shall disestablish the District if,
13 following the public hearing prescribed 'in Section 36550 (b), written protests are not withdrawn
14 as to reduce the protests below the 50% level. In the event of disestablishment of the District,
15 remaining revenues of the District shall be refunded to paying business owners in a pro-rata
16 manner calculated in the same manner as was used to establish .the most recent assessments
17 applied in the District.
is
19 Section 3. If any section, subsection, sentence, clause or phrase of this ordinance is, for any
20 reason, held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not
21 affect the validity or constitutionality of the remaining portions of this ordinance, it being
22 expressly declared that this ordinance and each section, subsection, clause and phrase hereof
23 would have been prepared, proposed, adopted, approved and ratified irrespective of the fact that
24 any one or more other sections, subsections, sentences, clauses, or phrases be declared invalid or
25 unconstitutional.
26
27 Section 4. The ordinance shall take effect upon the thirty-first (31st) day after its final passage.
28
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Ord. 2104 NCS Page 9
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INTRODUCED and ordered Posted/Published this .16th day of October 2000. ADOPTED this
20th day of November, 2000, by the following vote:
AYES: Healy, Keller, Cader-Thompson, Hamilton, Maguire, Vice Mayor Torliatt, Mayor
Thompson
NOES: None
ABSENT: None
AB STAIN: None
ATTEST:
CitClerk
Mayor
APPROVED ' AS - T'O -FARM:
City Attorne
Ord. 2104 NCS
Page 9