Chapter 5.48 — Gridley Business Improvement District

• 5.48.010 Purpose. 5.48.020 Definitions.

• 5.48.030 Establishment of boundaries.

• 5.48.040 Establishment of District Board of Directors.

• 5.48.050 Establishment of benefit assessment.

• 5.48.060 Purpose and use of benefit assessments.

• 5.48.070 Exclusions from benefit assessment.

• 5.48.080 New business assessment waiver. 5.48.090 Collection of benefit assessment. 5.48.100 Voluntary contributions to district. 5.48.110 Annual budget process. 5.48.120 Decisions regarding expenditure of funds. 5.48.130 District proceeds do not offset City services. 5.48.140 Public parking.

The Parking and Business Improvement District is established to levy a benefit assessment on all businesses, trades, professions, and vendors within said District, the proceeds of which shall be used for the public purposes herein described to benefit the businesses in the District, pursuant 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. This District shall be known as the " Gridley Business Improvement District" (the "District").

(Ord. 664, 1997)

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. "Retail Businesses" include all businesses not covered by other 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 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

The boundaries of the district and the benefit zones within the district are set forth on Exhibit "A" and are generally described as follows:

A. Zone A: the area bounded by Spruce and Magnolia Streets from Vermont to Washington Street, and by Vermont and Washington Streets from Spruce to Magnolia Streets, including both sides of the boundary streets.

B. Zone B: both sides of Highway 99 within City limits (and businesses contiguous to Highway 99); both sides of East Gridley Road within City limits; and both sides of Spruce Street from Zone "A" to Highway 99.

• C. All areas of the City not included in Zones "A" and "B."

There shall be a Board of Directors of the District to administer the affairs of the District. Said Board shall be constituted by eighteen member businesses of the District. The initial Board shall be approved by the City Council from a list of business operators located in the District to be submitted on behalf of the District General Membership. 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 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 (1) vote per assessed dollar, and said business must be current in payment of their District assessment(s) to participate in such votes.

All businesses, trades, and professions located within the District boundaries shall, on July 1 of each fiscal year, pay an annual benefit assessment to the District of an amount to be established by resolution of city council.

(Ord 695, 2000)

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 shopping and promotional programs.

No person or business shall be required to pay an assessment based on the following uses located within the District:

• A. A residential use of the property within the District

• B. A non-profit organization as defined by Section 501 (C) (6) of the Internal Revenue Service Code.

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. The City agrees to supply the District with timely information regarding new businesses initiated within the District.

5.48.090 Collection of benefit assessment.

The benefit assessment authorized for Gridley businesses herein shall be billed and collected once each fiscal year on July 1. The Board will bill for the assessments. The City will receipt and account for collections of the assessments, at no charge to the District and forward all funds collected to the District within 30 days of said collections.

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.

A. 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 any fiscal year. The purpose of this process is to provide public notice and hearing prior to establishing the benefit assessments for the following fiscal year.

B. The 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 50% or more of the assessments proposed to be levied as to any specific budget item pursuant to Streets and Highways Code, 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.

Decisions of the District Board of Directors regarding expenditure of all funds generated under this program shall be final.

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 proceeds of the benefit assessments established here under shall not be used to acquire and/or construct additional public parking, unless such use of the funds is first approved by a majority vote of the District members voting.

A. Proceedings 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 50% or more of the assessments levied in the District. Proceedings to disestablish the District shall follow the procedures set forth in Streets and Highways Code, 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 50% level.

B. 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.