Chapter 7.96 — DOWNTOWN BERKELEY BUSINESS IMPROVEMENT DISTRICT

Sections: 7.96.010 Establishment of district. 7.96.020 Description of district boundaries. 7.96.030 Definitions. 7.96.040 Classification of business and calculation of assessments. 7.96.050 Use of revenue. 7.96.060 Advisory board/annual report. 7.96.070 Annual levy of assessments. 7.96.080 Boundary and assessment modifications. 7.96.090 Collection of benefit assessment. 7.96.100 Penalty for delinquent payment.

Pursuant to the Act, a Parking and Business Improvement Area to be named the "Downtown Berkeley Business Improvement District" is created and established. (Ord. 6345-NS § 2, 1996)

The proposed boundaries of the District are as set forth in Table 7.96.020 as follows.

The District’s Boundary Map is attached to the ordinance codified in this chapter and on file in the office of the City Clerk:

Table 7.96.020. DOWNTOWN
BERKELEY BUSINESS IMPROVEMENT
DISTRICT ADDRESS RANGES OF
PROPOSED BOUNDARY

Street Address Range

Berkeley Way 2100--2199

University Avenue 1900--2199

Addison Street 1900--2199

Center Street All numbers

Allston Way 1900--2199

Kittredge Street All numbers

Bancroft Way 2000--2199

Durant Avenue 2000--2199

Oxford Street 1900--2148 (Evens only)

Fulton Street 2151--2329

Walnut Street 1900--1999

Shattuck Square All numbers

Berkeley Square All numbers

Shattuck Avenue 1800--2399

Table 7.96.020. DOWNTOWN
BERKELEY BUSINESS IMPROVEMENT
DISTRICT ADDRESS RANGES OF
PROPOSED BOUNDARY

Street Address Range

Harold Way All numbers

Milvia Street 1940--2399

Bonita Avenue 1900--1999

MLK Jr. Way 1921--2199 (Odds only)

(Ord. 6345-NS § 3 and Exh. A (part), 1996)

For calculating the amount of assessment owed the following definitions shall apply:

"Business" means all types of businesses including, but not limited to, all new businesses, retail sales, restaurants, bars, financial institutions, theaters, hotels/motels, services, professionals, general office, real estate, insurance, utilities, wholesale sales, manufacturing, contractors non-profits and commercial rental operators.

"Earned income" means gross revenue from ticket and produce sales and fees for services, not including grants, government contracts, contributions or loans.

"Gross payroll" means the annual sum of quarterly payroll figures as reported on Federal 941 or State DE 6 quarterly payroll reports.

"Gross receipts" has the meaning set forth in Berkeley Municipal Code Section 9.04.025 pertaining to business license tax. (Ord. 6345-NS § 4, 1996)

For purposes of the assessments to be imposed pursuant to this chapter, the City Council may make a reasonable classification of businesses, giving consideration to various factors, including general benefit to businesses and the degree of benefit received from proposed improvements and activities within the District. All businesses, trades and professions including, insurance, financial institutions and new businesses as specified in the Act and located within the District shall, commencing November 28, 1996, shall be classified and assessed as set forth as follows in Table 7.96.040. Businesses with multiple locations within the District shall be assessed for sales at each location. Business owners with multiple business activities or business licenses at the same location shall be assessed only once but at the highest applicable rate at that location. Multiple businesses with separate ownership at the same location shall each pay an assessment at the applicable rate. (Ord. 6345-NS § 5 and Exh. B, 1996)

Table 7.96.040. DOWNTOWN BERKELEY BUSINESS IMPROVEMENT DISTRICT PROPOSED ANNUAL ASSESSMENT FORMULA

To arrive at your annual assessment: Locate your business classification and multiply your estimated annual gross receipts times the corresponding assessment rate.

Estimated
City Business Classifications Assessment Rate (%) Source
Average

Real Property Rental 0.3820 Gross Rcpts. 758

Admin. HQ 0.0440 Gross Rcpts. 89

Auto/Vehicle 0.0440 Gross Rcpts. 0

Business Service/Repair 0.0440 Gross Rcpts. 253

Construction 0.0440 Gross Rcpts. 47

Entertainment 0.0440 Gross Rcpts. 396

Financial, Insurance 0.1000 Gross Payroll 350

Grocer 0.0440 Gross Rcpts. 91

Manufacturing 0.0440 Gross Rcpts. 266

Non-profit 0.0220 Earned Income N/A

Professional 0.0440 Gross Rcpts. 175

Retail 0.0440 Gross Rcpts. 195

Wholesale 0.0440 Gross Rcpts. 77

Unclassified 0.0440 Gross Rcpts. 0

Estimated Annual Collections: Real Property Rental 92,500
All Others 92,500

Total Estimated Collections $185,000

Note: Maximum assessment on any individual licensed business shall not exceed $18,500 (10% of project annual BID budget)

The purposes for which the funds raised by said benefit assessment may be used shall be devoted to the statutory purposes set forth in Sections 36510 and 36513 of the Act, which may include, but are not limited to the following improvements and activities:

A. General promotion of business activities within the District;

B. Promotion of public events which benefit businesses within the District and which are to take place on or in public places within the District;

C. Decoration of any public place within the District;

D. Furnishing of music in any public place within the District;

E. Acquisition construction, installation or maintenance of improvements identified in Section 36510 of the Act; and

F. Other activities which benefit businesses located and operating within the District.

Funds shall not be used to pay for activities routinely paid for by the City, particularly constructing, cleaning or maintaining public improvements or streetscapes, police-related or any other services targeted to public safety. (Ord. 6345-NS § 6, 1996)

A. Appointment. The City Council shall appoint an Advisory Board pursuant to Section 36530 of the Act in order to make recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on proposed improvements and activities, on the classification of businesses, and on the method and basis of levying assessments. This Advisory Board shall be made up of nine members. Upon the effective date of the ordinance codified in this chapter, existing appointments to the Interim Downtown Berkeley Advisory Board shall be considered initial appointments to the permanent Advisory Board.

B. Resident Status. The Advisory Board is intended to represent the interests of businesses within the District and therefore members of the Advisory Board need not be residents of the City.

C. Annual Report. The Advisory Board shall prepare a report for each fiscal year for which assessments are to be levied. The report shall be filed with the City Clerk and shall comply with all the requirements of Section 36533 of the Act. The report shall be approved as filed or modified. No change in the basis or method of levying assessments which would impair an executed contract to be paid from the revenues derived from the assessments shall be approved by the City Council. (Ord. 6345-NS § 7, 1996)

A. Annual Resolution of Intention. After approval of the annual report filed by the Advisory Board, the City Council shall adopt a resolution of intention to levy and collect assessments for the subject fiscal year pursuant to Section 36534 of the Act. The resolution shall be published once in a local newspaper and shall set the time and place for a public hearing on the levy of assessments for that fiscal year.

B. Annual Public Hearing. The City Council shall, pursuant to Section 36535 of the Act, hold an annual public hearing on the levy of assessments as specified in the resolution of intention.

C. Resolution Confirming Annual Report and Levy of Assessments. At the conclusion of the annual public hearing, in order to levy assessments for the subject fiscal year, the City Council shall, by resolution, confirm the annual report as filed or modified. Adoption of this resolution shall constitute the levy of assessments for the fiscal year referred to in the annual report. (Ord. 6345-NS § 8, 1996)

The City Council may, at the Advisory Board’s recommendation, modify the boundaries or assessments, established pursuant to this chapter; the modifications shall be made pursuant to the requirements of the Act, but no assessment shall be modified which would impair the ability of the District to meet the obligation of a contract to be paid from the revenues derived from the levy of assessments. Such changes shall be made by ordinance adopted after a hearing before the City Council or by resolution, if approved in conjunction with confirmation of the annual report. (Ord. 6345-NS § 9, 1996)

The benefit assessment authorized by this chapter shall be billed annually by the City with all funds collected to be placed in an account separate from the City’s General Fund to be expended in accordance with this chapter and subsequent resolutions and fund management agreements. The levy of assessments will be accomplished by mailing assessment notices to all businesses as herein defined within the District by first class mail in conjunction with the City’s annual business license renewal notice, to be due and payable within thirty days of receipt. Any business exempt from paying City business license fees shall be assessed in January of each year. The City shall collect all assessments and any penalties hereon as required by this chapter. (Ord. 6345-NS § 10, 1996)

For failure to pay a benefit assessment when due, the City shall add a penalty of ten percent of the assessment amount on the last calendar day of each month after the date due thereof, providing that the penalty amount to be added shall in no event exceed one hundred percent of the assessment amount due. Any additional collection costs incurred by the City or collection agent acting on behalf of the City, shall be added to the assessment amount due. Such additional costs may include, but are not limited to, attorneys fees, court costs, agent fees and servicing fees. No City business license or business occupancy permit shall be knowingly issued or renewed to any business which, at the time or making application for any license or renewal thereto, is indebted to the City for any delinquent benefit assessment. (Ord. 6345-NS § 11, 1996)

A new section will be added to Ordinance No. 6333-N.S., Appropriations Ordinance for FY 1996-97, allowing for the expenditure of funds for this Business Improvement District. (Ord. 6345-NS § 12, 1996)