HomeMy WebLinkAboutRESOLUTION 2025-165 N.C.S. 12/15/2025Resolution 2025-165 N.C.S.
Resolution No. 2025-165 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING THE 2026
DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT AND
RELATED BUDGET; DECLARING THE INTENTION TO LEVY THE 2026 ANNUAL
ASSESSMENT FOR THE DISTRICT; AND SETTING A PUBLIC HEARING ON THE PROPOSED
2026 ANNUAL ASSESSMENTACTION
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. Façade 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
Docusign Envelope ID: 42127CF9-C5EF-432C-96C4-D8ED5D6DC121
Resolution 2025-165 N.C.S.
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 proposed DBID 2026 Budget establishes the following budgetary priorities with
estimated revenues and expenditures; and
DBID 2026 Proposed Budget
Percentage Services Amount
27% Security $17,280
23% Marketing $14,720
30% Beautification $19,200
20% Administration $12,800
Total $64,000
Docusign Envelope ID: 42127CF9-C5EF-432C-96C4-D8ED5D6DC121
Resolution 2025-165 N.C.S.
WHEREAS, the 2026 Annual Report of the DBID is on file at the City Clerk’s office for public review, and
attached to the staff report as Attachment 1 and contains a full and detailed description of the DBID improvements
and activities to be provided for the 2026 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 2026 fiscal year; 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. The DBID 2026 Annual Report, attachment 1 to the concurrent staff report and Budget,
attached hereto as Exhibit A and incorporated herewith, is hereby approved.
4. 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 DBID Annual Report and Budget for Fiscal
Year 2026 to pay for improvements and activities within the DBID, which Annual
Report and Budget is attached to and made a part of this Resolution as Exhibit A in
accordance with Chapter 6.04 of the Petaluma Municipal Code and the Act.
5. A public hearing concerning levy of the assessment proposed for the DBID fiscal year
2026 will be conducted by the City Council on Monday, January 5, 2026, at the hour of
6:30 p.m., or as soon thereafter as the matter will be heard. The hearing will be held in
person at City Hall, 11 English Street, Petaluma, Calif. Information on how to listen
and/or speak at the hearing will be on the January 5, 2026, Petaluma City Council
meeting agenda https://cityofpetaluma.org/meetings/ by January 1, 2026.
Docusign Envelope ID: 42127CF9-C5EF-432C-96C4-D8ED5D6DC121
Resolution 2025-165 N.C.S.
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
Council of the City of Petaluma at a Regular meeting on the 15th day of December
2025, by the following vote:
Approved as to
form:
__________________________
Eric Danly, City Attorney
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: ______________________________________________
Caitlin Corley, City Clerk
Kevin McDonnell, Mayor
Docusign Envelope ID: 42127CF9-C5EF-432C-96C4-D8ED5D6DC121
Resolution 2025-165 N.C.S.
EXHIBIT A
Petaluma Downtown Business Improvement
District 2026 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: Because the BID is billed on a calendar-year
basis but reported on a fiscal-year basis, the account reflects a mix of collections from both
periods. Our current balance, including reserves, often helps cover any potential shortfall within
the fiscal year.
2026 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: 42127CF9-C5EF-432C-96C4-D8ED5D6DC121
Resolution 2025-165 N.C.S.
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: 42127CF9-C5EF-432C-96C4-D8ED5D6DC121
Resolution 2025-165 N.C.S.
BID 2025 Proposed Projects
Proposed Projects Rev/Exp Notes
Security Patrols $15,288 Private security patrols DAILY 10pm-4am 52
weeks
$1,992 Additional security patrols
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
Seasonal banner placement $5,000
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: 42127CF9-C5EF-432C-96C4-D8ED5D6DC121
Resolution 2025-165 N.C.S.
Petaluma Downtown Business Improvement District Boundary Map
Docusign Envelope ID: 42127CF9-C5EF-432C-96C4-D8ED5D6DC121