CHAPTER 6.04
DOWNTOWN PETALUMA BUSINESS IMPROVEMENT DISTRICT1
6.04.010 Definitions.
In order to distinguish between district businesses and for the purpose of calculating and applying the amount of assessments owed, the following definitions shall apply:
A. "Retail businesses" mean and include all businesses not covered by other definitions set out in this section, at least fifty percent of whose gross income is derived from "retail sales" as that term is defined under the California Sales and Use Tax Law. The fact that a substantial part of its business consists of sales other than retail sales does not exclude said business from this classification so long as such other business component does not account for more than fifty percent of said business’ gross income.
B. "Restaurant businesses" mean and include cafes, eating establishments, sandwich shops, dinner houses, restaurants and fast food services and other similar businesses.
C. "Antique collectives" mean and include such businesses and business locations that represent multiple dealers of antique merchandise within one location.
D. "Service businesses" mean and include businesses that combine retail and product services. Examples are appliance stores, most automotive-oriented businesses, repair shops, repairing and servicing businesses and service stations. Other businesses of a general service-type nature such as general office, news and advertising media, printers, renting and leasing businesses, utilities, vending machine businesses, household finance companies, entertainment businesses and other similar businesses not otherwise included in subsections A, B, C, E, F, or G are included in this subsection.
E. "Lodging businesses" mean and include inns, hotels, motels, RV parks and other similar businesses.
F. "Professional" means and includes attorneys, architects, accountants, engineers, surveyors, physicians, dentists, optometrists, chiropractors and others in a medical/health service field, consultants, real estate brokers, financial advisors, laboratories (including dental and optical), hearing aid services, artists, photographers and designers.
G. "Financial" means banks, savings and loans, credit unions, etc.
H. "Calendar year" means January 1st to and including December 31st of the same year.
I. "Billing period" means and shall refer to the period of any portion of a calendar year in which a business operates as defined above.
(Ord. 2104 NCS §2 (part), 2000.)
6.04.020 Establishment of boundaries.
A parking and business improvement district is hereby established pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq. The boundaries of the district and the benefit zones within the district shall be as set forth on the Exhibit "A"2, as attached to the ordinance adopted to create said district and incorporated herein by reference. This district shall be known as the "Downtown Petaluma business improvement district" (the "district"). (Ord. 2104 NCS §2 (part), 2000.)
6.04.030 Establishment of district board of directors.
There shall be a board of directors ("board") of the district to administer the affairs of the district. Said board shall be constituted of businesses within the district. Within the board there shall be a president, vice-president, secretary and treasurer elected by the membership, and such other officers as deemed necessary by the board. Such other officers shall be appointed by the board of directors at their discretion. All voting within the district regarding election of board members and any actions regarding the normal and routine conducting of district business shall be based on one vote per assessed dollar, and said business must be current in payment of their district assessment(s) to participate in such votes. (Ord. 2104 NCS §2 (part), 2000.)
6.04.040 Establishment of benefit assessment.
All businesses, trades, and professions located within the district boundaries shown on the Exhibit "A" referenced in Section 6.04.030, shall, commencing January 1, 2001, pay an annual benefit assessment to the district in an amount adopted by resolution of the city council of the city of Petaluma. (Ord. 2104 NCS §2 (part), 2000.)
6.04.050 Purpose and use of benefit assessments.
The types of improvements and activities proposed to be funded by the levy of assessments on businesses in the district are 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. Facade improvements;
5. Permanent landscaping.
B. Activities including but not limited to the following:
1. Promotion of public events which benefit businesses in the area and which take place on or in public places within the area;
2. Furnishing of music in any public place in the area;
3. Activities which benefit businesses located and operating in the area, including but not limited to commercial shopping and promotional programs.
(Ord. 2104 NCS §2 (part), 2000.)
6.04.060 Exclusions from benefit assessment.
No person or business shall be required to pay an assessment based on: (a) a residential use of the property within the district, or (b) a nonprofit organization as defined by Section 501 (C) (3) or (C) (6) of the Internal Revenue Service Code located within the district. (Ord. 2104 NCS §2 (part), 2000.)
6.04.070 New business assessment waiver.
Any new business established within the district shall not be required to pay an assessment for the billing period during which said business is initiated. The business will have been considered initiated on the date of issuance of the business license. This waiver shall not apply to an existing business that has changed ownership or location within the district. City agrees to supply the District with timely information regarding new businesses initiated within the district. (Ord. 2104 NCS §2 (part), 2000.)
6.04.080 Collection of downtown benefit assessment.
The benefit assessment authorized by this chapter for Downtown Petaluma businesses (Section 6.04.040 hereof), shall be billed and collected each calendar year. The BID advisory board may, from time to time, assess late charges on unpaid BID assessment charges. (Ord. 2104 NCS §2 (part), 2000.)
6.04.090 Voluntary contributions to district.
Contributions to the district shall be permitted on a voluntary basis. The boundary of the district shall not be modified as a result of the contribution, nor shall said contributing business be considered a member of the district for voting or other purposes.
However, said business making a voluntary contribution may be entitled to participate in the programs of the district upon a finding by the board of directors that the district derives a benefit from said business’ participation in the program. (Ord. 2104 NCS §2 (part), 2000.)
6.04.100 Annual budget process.
Pursuant to the Act3, it shall be necessary for the district board of directors to present an annual budget for city council review and approval prior to the beginning of each fiscal year. The purpose of this process is to comply with the Act provisions regarding public notice and hearing prior to establishing the benefit assessments for the following fiscal year. City shall not adopt, modify or otherwise amend any fiscal year budget of the district that is inconsistent in any way with said fiscal year’s budget as agreed to and presented by the district board of directors except in the case of a written majority protest (regarding elimination or modification of any specific budget item) from business owners which will pay fifty percent 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 said expenditure from the District’s proposed budget pursuant to the written protest. (Ord. 2104 NCS §2 (part), 2000.)
6.04.110 Decisions regarding expenditure of funds.
As provided for within the guidelines of SB 1424, decisions of the district board of directors regarding expenditure of all funds generated under this program shall be final. (Ord. 2104 NCS §2 (part), 2000.)
6.04.120 District proceeds do not offset city services.
City specifically finds and declares that the funds derived from the district shall not be used to offset or diminish current maintenance, capital improvement programs, including but not limited to, public property and sidewalk cleaning, street cleaning and maintenance, tree maintenance, restroom cleaning and maintenance. The city is not bound or obligated to any specific amount of funding to the district. (Ord. 2104 NCS §2 (part), 2000.)
6.04.130 Disestablishment of the district.
Proceeding to disestablish the district shall be initiated by the city council following the presentation of a petition to the city council signed by business owners paying fifty percent or more of the assessments levied in the district. Proceedings to disestablish the district shall follow the procedures set forth in GC Section 36550. The city council shall disestablish the district if, following the public hearing prescribed in Section 36550 (b), written protests are not withdrawn as to reduce the protests below the fifty percent level. In the event of disestablishment of the district, remaining revenues of the district shall be refunded to paying business owners in a pro-rata manner calculated in the same manner as was used to establish the most recent assessments applied in the district. (Ord. 2104 NCS §2 (part), 2000.)
Editor’s Note: Former Chapter 6.04, General Provisions, previously codified herein and containing portions of Ordinance Nos. 373, 413, 1307, 1313 and prior code sections 14.1-14.30 was repealed in its entirety by Ordinance No. 1921.
Editor’s Note: Exhibit A, referred to herein, may be found on file in the office of the city clerk.
Editor’s Note: The Act refers to the Parking and Business Improvement Area Law of 1989, Part 6 (commencing with Section 36500) of Division 18 of the California Streets and Highways Code.