Petaluma Municipal Code Ch. 6.04 Downtown Petaluma Business Improvement DISTRICT1

1 Editor’s Note: Former Chapter 6.04, General Provisions, previously codiRed 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Ordinance Nos. 373, 413, 1307, 1313 and prior code sections 14.1-14.30 was repealed in its entirety by Ordinance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.

In order to distinguish between district businesses and for the purpose of calculating and applying the amount of

assessments owed, the following deRnitions shall apply:

A. "Retail businesses" mean and include all businesses not covered by other deRnitions set out in this section, at

least Rfty percent of whose gross income is derived from "retail sales" as that term is deRned 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 classiRcation so long as such other business component does not account for

more than Rfty 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 oTce, news and advertising

media, printers, renting and leasing businesses, utilities, vending machine businesses, household Rnance

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 Reld, consultants, real estate brokers,

Rnancial 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 deRned above.

(Ord. 2104 NCS §2, 2000.)

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 beneRt 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, 2000.)

2 Editor’s Note: Exhibit A, referred to herein, may be found on Rle in the oTce of the city clerk.

There shall be a board of directors ("board") of the district to administer the aUairs 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 oTcers as deemed necessary by the board.

Such other oTcers 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, 2000.)

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 beneRt assessment to the district in an

amount adopted by resolution of the city council of the city of Petaluma. (Ord. 2104 NCS §2, 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 Rve 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 beneRt 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 beneRt businesses located and operating in the area, including but not limited to

commercial shopping and promotional programs.

(Ord. 2104 NCS §2, 2000.)

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 nonproRt organization as deRned by Section 501(C)(3) or (C)(6) of the Internal Revenue

Service Code located within the district. (Ord. 2104 NCS §2, 2000.)

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, 2000.)

The beneRt 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, 2000.)

Contributions to the district shall be permitted on a voluntary basis. The boundary of the district shall not be

modiRed 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 Rnding by the board of directors that the district derives a beneRt from said business’ participation

in the program. (Ord. 2104 NCS §2, 2000.)

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 Rscal year. The purpose of this process is to comply

with the Act provisions regarding public notice and hearing prior to establishing the beneRt assessments for the

following Rscal year. City shall not adopt, modify or otherwise amend any Rscal year budget of the district that is

inconsistent in any way with said Rscal 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 modiRcation of any speciRc budget item)

from business owners which will pay Rfty percent or more of the assessments proposed to be levied as to any

speciRc budget item pursuant to GC Section 36525(b). In such case the written protest regarding any speciRc

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, 2000.)

3 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.

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 Rnal. (Ord. 2104 NCS §2, 2000.)

City speciRcally Rnds and declares that the funds derived from the district shall not be used to oUset 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 speciRc amount of funding to the district. (Ord. 2104 NCS §2, 2000.)

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 Rfty 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 Rfty 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, 2000.)