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Home My WebLink AboutRESOLUTION 2025-006 N.C.S. 01/06/2025 Docusign Envelope ID:23BOCOCB-DB99-4124-8287-2DE7DEBOCDC1 Resolution No. 2025-006 N.C.S. of the City of Petaluma, California RESOLUTION ESTABLISHING THE LEVY FOR THE 2025 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 Business Improvement District("DBID"), within the area described in Exhibit A, 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 DBID 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. 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. 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 DBID must present the City Council with an annual report and budget for review and approval prior to the City Council consideration of levying a benefit assessment for the following fiscal year; and WHEREAS, the requirements of Petaluma Municipal Code Section 6.04.100 are in accordance with the Act, which establishes annual procedures governing the levy of assessments pursuant to the Act, including preparation of an annual report, adoption of a resolution of intent giving notice of a public hearing at which written and oral protests may be made concerning levy of an annual assessment, and adoption of a resolution approving the annual report and levying the assessment; and WHEREAS, Section 36535 of the Act provides that public hearings on levy of annual assessments pursuant to the Act must be conducted in accordance with Sections 36524 and 36525 of the Act,which provide as follows: Resolution No. 2025-006 N.C.S. Page I Docusign Envelope ID:23BOCOCB-DB99-4124-8287-2DE7DEBOCDC1 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. 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 2025 DBID Annual Report and Budget submitted by the DBID Board of Directors at the regularly scheduled and duly noticed December 16, 2025, City Council meeting; 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 proposed DBID 2025 Budget establishes the following budgetary priorities with estimated revenues and expenditures; and: 27% Security $17,280 23% Marketing $14,720 30% Beautification $19,200 20% Administration $12,800 Total: $64,000 WHEREAS,the Annual Report of the DBID is on file at the City Clerk's office for public review and contains a full and detailed description of the DBID improvements and activities to be provided for the 2025 fiscal year, the boundaries of the DBID and any benefit zones within the DBID, and the proposed assessments to be levied on businesses in the DBID for the 2025 fiscal year; and Resolution No. 2025-006 N.C.S. Page 2 Docusign Envelope ID:23BOCOCB-DB99-4124-8287-2DE7DEBOCDC1 WHEREAS, in accordance with Section 36524 of the Act, on January 6, 2025, the City Council held the public hearing on the 2025 DBID annual levy and heard and considered all protests against the annual levy, the DBID area, the extent of the area, or the furnishing of specified types of improvements or activities within the area; and WHEREAS, in accordance with Section 36525 of the Act, following the public hearing on January 6, 2025, 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 DBID area that will pay 50 percent or more of the proposed annual assessment; and WHEREAS, administration of assessment districts does not constitute a project under the California Environmental Quality Act (CEQA) because it involves continuing administrative or maintenance activities and organizational or administrative activities that will not result in direct or indirect physical changes in the environment. [14 Cal. Code Regs. § 15378(b)(2) & (5); and WHEREAS, if the proposed action did constitute a project under CEQA the proposed action is statutorily exempt under CEQA Guidelines Section 15273(a) (Rates, Tolls, Fares, and Charges) and categorically exempt under CEQA Guidelines Sections 15301 (Existing Facilities) and 15304 (Minor Alterations to Land) as the resulting funds will be used to maintain downtown. NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Petaluma as follows: 1. The above recitals are hereby declared to be true and correct and are incorporated into findings of the City Council. 2. Finds that the administration of assessment districts does not constitute a project under the California Environmental Quality Act (CEQA) because it involves continuing administrative or maintenance activities and organizational or administrative activities that will not result in direct or indirect physical changes in the environment. [14 Cal. Code Regs. § 15378(b)(2) & (5). And if the proposed action did constitute a project under CEQA the proposed action is statutorily exempt under CEQA Guidelines Section 15273(a) (Rates, Tolls, Fares, and Charges) and categorically exempt under CEQA Guidelines Sections 15301 (Existing Facilities) and 15304 (Minor Alterations to Land) as the resulting funds will be used to maintain downtown. 3. Levies the assessment described in the DBID Annual Report and Budget for Fiscal Year 2025, which is attached and made a part of this Resolution as Exhibit B, to pay for improvements and activities within the DBID in accordance with Chapter 6.04 of the Petaluma Municipal Code and the Act. Resolution No. 2025-006 N.C.S. Page 3 Docusign Envelope ID:23BOCOCB-DB99-4124-8287-2DE7DEBOCDC1 Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to Council of the City of Petaluma at a Regular meeting on the 61 day of January form:F77 ned by: 2025,by the following vote: City A gV5AE94F3048D... AYES: McDonnell,Barnacle,Cader Thompson,Nau,Quint, NOES: None ABSENT: Shribbs ABSTAIN: None RECUSED: DeCarli Do""" ed by: Signed by: ATTEST: EC�� n tl� 4�t.r 06V,I�,c,(,(, City Clerk Mayor Resolution No. 2025-006 N.C.S. Page 4 Docusign Envelope ID:23BOCOCB-DB99-4124-8287-2DE7DEBOCDC1 Exhibit A Petaluma Downtown Business Improvement District 2025 Annual Report, Budget, Assessment Schedule, and Map 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 2025 Budget Allocations Percentage Activity Type Amount 27% Security $17,280 23% Marketing $14,720 30% Beautification $19,200 20% Administration $12,800 100% Total Services $64,000 Security - 27% - The Petaluma Downtown Association (PDA) contracts for security coverage of the general downtown area to be performed on a regular nightly schedule. 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, e.g., 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. Directional signage, holiday decorations, seasonal banner placements, and graffiti cleanup are among the beautification projects funded by the BID. Administration - 20% - Collected funds go to the day-to-day operations of the PDA office. Cost centers include rent, salary expense, and event coordination. This budget item also includes costs associated with assessment collections, including accounting services, printing, and mailing/postage. Docusign Envelope ID:23BOCOCB-DB99-4124-8287-2DE7DEBOCDC1 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 Business Type Zone A Zone B Zone C Restaurants&Retailers 1 -3 Employees 150 100 50 4-6 Employees 250 166 83 7+Employees 350 232 116 Antique Collectives 1-3 Dealers 150 100 50 4-6 Dealers 250 166 83 7+Dealers 350 232 116 Service Operators 1-3 Emp/Operators 150 100 50 4-6 Emp/Operators 250 166 83 7+Emp/Operators 350 232 116 Professional Businesses 125 82 41 Financial Institutions 500 500 500 Lodging 1-10 Rooms 150 150 150 11-25 Room 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. Docusign Envelope ID:23BOCOCB-DB99-4124-8287-2DE7DEBOCDC1 BID 2025 Proposed Projects Projected Revenue Proposed Projects Expected Notes Security Patrols $ 17,280 Private security patrols DAILY 10pm-4am 52 weeks Security 27% $ 17 280 Destination marketing downtown $ 500 Destination marketing ads &editorial in Chamber&Visitors guide Sidewalk Sale $ 1,200 Street banner$400, additional banners$150 advertising$500 Social Media Campaigns $ 1,000 Ads thru facebook&other social media promoting events&downtown shopping Holiday Merchant Event Downtown $ 1,000 Carolers,entertainment,flyers, posters,ads Holiday Marketing season $ 2,800 Ads: SF Chronicle, Press Democrat,Argus, Bohemian etc Holiday Online ads Press Democrat $ 700 Online ad click through to website Holiday Radio ad campaign $ 2,820 Holiday radio campaign-4 weeks shared with merchants Marketing 23% $ 14,720 Plants/misc decorations $ 1,200 Event decorations/plants, clean-up for downtown Holiday Lighting $ 1,500 Holiday committee recommendation for holiday lighting Holiday Decorations $ 11,500 70 Holiday banners, 8 wreaths installation up and down, cleaning, updating and storage 4 seasonal banner placement $ 5,000 Spring, Summer, Fall Banners Beautification 30% $ 19,200 BID local billing &collection $ 7,500 BID processing locally Office staffing costs allocation $ 5,300 PDA administrative cost allocation Administration 20% $ 12,800 GRAND TOTAL $ 64,000 Docusign Envelope ID:23BOCOCB-DB99-4124-8287-2DE7DEBOCDC1 Petaluma Downtown Business Improvement District Boundary Map WIL �t 1�lj��t►t1� I Z a ((1 0 m e f �� 4t m e C J m - m V .,�