Sacramento Municipal Code Ch. 3.104 Downtown Plaza Business Improvement Area

This chapter is adopted pursuant to the "Parking and Business Improvement Area Law of 1979," being Section 36500 et seq. of the California Streets and Highways Code, and Resolution of Intention No. 86-329, adopted by the city council on May 13, 1986, and titled, "A resolution of the city council of the city of Sacramento, California, declaring its intention to establish a business improvement area in the downtown business area, to provide for levying of charges on specified businesses conducted within such area, classifying various businesses for such purposes, describing the boundaries of the proposed area, the authorized uses to which the proposed revenues shall be put, the rate of such charges, fixing the date, time and place of a hearing to be held by the city council to consider the establishment of such an area, and directing the giving of notice of such hearing." Such resolution was published and mailed as provided by law, and hearings thereon were held by the city council at its regular meeting on May 27, 1986, at which time all persons desiring to be heard, and all objections made or filed, were fully heard. The city council duly concluded the hearing on May 27, 1986, and determined that protests objecting to the formation of the area have not been made by businesses within the area which will pay a majority of the charges to be imposed and that such protests are overruled and denied. The city council finds that the businesses lying within the business and improvement area, in the opinion of the city council, will be benefitted by the expenditure of the funds raised by the charges proposed to be levied.

Pursuant to the "Parking and Business Improvement Area Law of 1989," being Section 36500 et seq. of the California Streets and Highways Code, a Resolution of Intention No. 95-493, adopted by the city council on August 29, 1995, and titled, "A resolution of the city council of the city of Sacramento, California, declaring its intentions to modify an existing business improvement area in the downtown area, to provide for levying of charges on specified businesses conducted within such area, classifying various businesses for such purposes, describing the boundaries of the proposed area, the authorized uses to which the proposed revenues shall be put, the rate of such charges, fixing the date, time and place of a hearing to be held by the city council to consider the modification of such an area, and directing the giving of notice of such hearing." Such resolution was published and mailed as provided by law, and hearing thereon was held by the city council at its regular meeting on September 26, 1995, at which time all persons desiring to be heard, and all objections made or filed, were fully heard. The city council duly concluded the hearing on September 26, 1995, and determined that protests objecting to the modification of the area have not been made by businesses within the area which will pay a majority of the charges to be imposed and that such protests are overruled and denied. The city council finds that the businesses lying within the modified business improvement area, in the opinion of the city council, will be benefitted by the expenditure of the funds raised by the charges proposed to be levied. The Downtown Plaza business improvement area is established. (Prior code § 23.10.801)

There is established a business improvement area which shall be known as the "Downtown Plaza business improvement area of the city of Sacramento," herein referred to as the "area" for brevity and convenience. The description of the area is as follows:

The area known as the Downtown Plaza beginning at the intersection of 4th Street and J Street proceeding easterly along the center of J Street to 7th Street, then proceeding south along the center of 7th Street to L Street, then proceeding westerly along the center of L Street to 4th Street, and then beginning at the southwest corner of assessor parcel no. 006-0080-046, then proceeding due north to the starting point of the intersection of 4th Street and J Street.

The businesses located in the area shall be subject to any future amendments to the "Parking and Business Improvement Area Law of 1979" (commencing with Section 36500 of the Streets and Highways Code). (Prior code § 23.10.802)

The authorized uses to which the additional revenue shall be put are as follows:

A. The general promotion of business activities in the area;

B. Promotion of public events which are to take place on or in public places in the area;

C. Decoration of any public place in the area;

D. Furnishing of music in any public place in the area. (Prior code § 23.10.803)

There is imposed a charge for the purposes authorized in Section 3.104.030 of this chapter which charge is in addition to the ordinary business operations tax as it is imposed upon businesses conducting their activities within the area by Chapter 3.08 of this code. Such additional charge is imposed at the rates set forth in Section 3.104.050 of this chapter for the specified business classifications regardless of whether the business is taxed upon a flat rate or gross receipts or other basis under the provisions of Chapter 3.08 of the this code. (Prior code § 23.10.804)

A. The businesses conducted in the area are classified as follows so as to promote the equitable imposition of the additional charge hereunder in relation to the relative benefits to be derived. The charge shall be as follows:

1. Gross Receipts. Every person not falling within the categories described in subsections (A)(2) and (3) of this section shall pay an annual charge as follows:

a. Every person who has gross receipts of ten thousand dollars ($10,000.00) or less shall pay a charge of fifty dollars ($50.00) for each year.

b. Every person who has gross receipts in excess of ten thousand dollars ($10,000.00) shall pay a charge of fifty dollars ($50.00) plus $.0008 for each dollar of gross receipts in excess of ten thousand dollars ($10,000.00) for the reporting period; provided, however, that the maximum annual charge for any person under this section shall be four thousand dollars ($4,000.00).

2. Professionals.

a. Professionals-General. Every person engaged in the profession of: accountant, architect, attorney, audiologist, bacteriologist, certified public accountant, engineer, dentist, mortician, optometrist, osteopath, physician, podiatrist, psychologist, surgeon, or veterinarian shall pay an annual charge of fifty dollars ($50.00).

Nothing in this subsection shall be construed or deemed to apply to any person engaged in any of the professions enumerated in this subsection solely as the employee of any other person conducting, carrying on or managing such business, occupations or professions in the city, except, however, that each such employee who has a contractual right to participate in the income or profits of the business, or is a shareholder of a professional corporation organized pursuant to Section 13400 et seq. of the California Corporations Code must pay the charge.

Every person who employs an individual who would be subject to a charge under this section if the individual was not exempted from the payment of said charge by the preceding paragraph shall pay an annual charge of twenty-five dollars ($25.00) for each such exempt individual in their employ.

b. Professionals-Brokers. Every person engaged in the business of real estate broker, insurance broker, or stock broker, whether full or part-time, shall pay an annual charge of fifty dollars ($50.00) for the principal broker or broker of record plus twenty-five dollars ($25.00) for each employee, agent, representative or independent contractor subject to supervision by a principal broker or broker of record who devotes time to handling of rents, listing property, selling property, soliciting or writing insurance policies or working as a salesperson or floorperson.

3. Housing and Shelter.

a. Rental of Residential Real Property. Every person engaging in the business of offering residential real property located within the area for rental shall pay an annual charge of fifty dollars ($50.00) plus one dollar for each rental unit in excess of four units. Any person with fewer than four units is exempt from payment of the charge.

b. Hotels, Motels. Every person engaging in the business of renting out accommodations located within the area substantially on a transient occupancy basis shall pay an annual charge of fifty dollars ($50.00) plus one dollar for each rental unit in excess of four units per situs.

c. Rental of Nonresidential Real Property. Persons engaging in the business of offering nonresidential real property located within the area for lease or rental shall pay a charge pursuant to subsection A of this section.

B. The determination of the type or class of business or businesses a charge payer is engaged in or about to engage in shall be an administrative function of the revenue officer of the city.

In cases where a charge payer believes he or she is placed in the wrong business or class of business or businesses, he or she may apply in writing to the revenue officer for a change in his or her classification, setting forth in full his or her reason for requesting such change. The revenue officer shall conduct an investigation and shall thereupon render his or her decision in writing as to the proper classification or classifications.

If the charge payer is aggrieved by the revenue officer's decision, he or she shall have the right of appeal to the director of finance. The appeal shall be filed with the director of finance within ten (10) days of the date of the revenue officer's decision, and shall be heard by the director of finance within thirty (30) days thereafter. The charge payer shall be given at least seven days notice of the hearing by the director of finance.

C. On July 1, 1987, and each July 1st thereafter, the fifty dollar ($50.00) minimum charge and four thousand dollar ($4,000.00) maximum charge in subsection(A)(1) of this section, and the fifty dollar ($50.00) and twenty-five dollar ($25.00) flat charge in subsection (A)(2) of this section, and the fifty dollar ($50.00) minimum charge in subsection (A)(3) of this section shall be automatically increased by the amount of increase in the consumer price index, San Francisco area, all items, most recently available prior to the date of increase, provided, however, that in no event shall any automatic increase hereunder exceed five percent, and provided further that the amounts of the charges which result from the application of the automatic increases hereunder shall be rounded to the nearest whole dollar. (Prior code § 23.10.805)

Any business, person or institution located in the area, which is exempt from the payment of the ordinary business operations tax of the city by reason of the provisions of the laws of the United States or California Constitutions, is not to be charged under this proceeding but may make a voluntary contribution to the city. Such contributions shall be used for the purposes provided in this chapter. (Prior code § 23.10.806)

The city council, by ordinance, may modify the provisions of this chapter and may disestablish the area, after adopting a resolution of intention to such effect. Such resolution shall describe the proposed change or changes, or indicate that it is proposed to disestablish the area, and shall state the time and place of a hearing to be held by the city council to consider the proposed action.

If businesses in the area which pay a majority of the charges imposed file a petition with the city clerk requesting the council to adopt a resolution of intention to modify or disestablish the area, the council shall adopt such resolution and act upon it as hereinafter provided. Signatures on such petition shall be those of a duly authorized representative of businesses in the area; and the petition shall be filed with the city clerk within six weeks of the date on which the first signature was affixed.

The city clerk shall cause such resolution to be published at least once in the official newspaper of the city, and shall also mail a complete copy thereof, postage prepaid, to each business in the area, or, if it is proposed to enlarge the boundaries of the area, to each business in the area as it is proposed to be enlarged. Such publication and mailing shall be completed at least fifteen (15) days prior to the date of said hearing.

In the event the resolution proposes to modify any of the provisions of this chapter, including changes in the existing charges or in the existing boundaries of the area, such proceedings shall terminate if protest is made by businesses in the area, or in the area as it is proposed to be enlarged, which pay or will pay a majority of the charges imposed or to be imposed, provided that the city council may modify the boundaries or charges as specified in the Streets and Highways Code, Section 26528.

In the event the resolution proposes disestablishment of the area, the city council shall disestablish the area; unless at such hearing, protest against disestablishment is made by a majority of the businesses in the area.

At the hearing, the city council shall hear all protests and receive evidence for and against the proposed action; shall rule upon all protests. The council's determination in this regard shall be final. The council may continue the hearing from time to time. (Prior code § 23.10.807)

The council may provide for the administration of the area's activities by entering into a contract with an entity or entities that in the opinion of the city council will have the capability of representing the interests of the businesses in the area, whose general objectives will be consistent with the purposes of this chapter, and who will provide the resources to effectively achieve those objectives. However, in such event the city council shall reserve onto itself sole discretion as to how the revenue derived from the charges hereunder shall be used within the scope of the said authorized purposes. (Prior code § 23.10.808)

The collection of the charges imposed hereunder shall be made at the same time and in the same manner as the general business operations tax under Chapter 3.08 of this code, commencing July 2, 1986.

A special fund is created, known as the "Downtown Plaza business improvement area fund," and the charges imposed by this chapter shall be deposited in such fund. (Prior code § 23.10.809)