Chapter 6-56 — BUSINESS IMPROVEMENT AREAS

Article I

Montgomery Village Business Improvement Area No. 1

Montgomery Village Business Improvement Area No. 1 is established and shall include all businesses located within the following described boundaries:

Commencing at the intersection of the centerline of Montgomery Drive and Farmers Lane (Highway 12); then proceeding easterly along the centerline of Montgomery Drive to its intersection with the centerline of Hahman Drive; thence proceeding southerly along the centerline of Hahman Drive to its intersection with the centerline of Patio Court; thence westerly along the centerline of Patio Court to its intersection with the centerline of Farmers Lane (Highway 12); thence northerly along the centerline of Farmers Lane (Highway 12) to its intersection with the centerline of Montgomery Drive to the point of beginning, all of the foregoing being located in the City of Santa Rosa, Sonoma County, California. (Prior code § 15.100)

The business improvement license tax imposed under this article shall be based on, and be in addition to, the existing Santa Rosa general business license tax as the same is set forth in Chapter 6-04. The business improvement license tax imposed under this article shall utilize the same classifications and rates specified in Chapter 6-04 in effect on January 1, 1992. The applicable rates of the business improvement license tax within the Montgomery Village Business Improvement Area No. 1 are as follows:

• (A) For calendar year 1992, and each year thereafter, all retail and miscellaneous businesses (as described and made subject to the business license tax imposed by Section 6-04.220) in the improvement area will be assessed eight times their general business license tax, but in no case less than $200.00 per year nor more than $4,000.00 per year.

• (B) For calendar year 1992, and each year thereafter, all other businesses in the improvement area will be assessed four and one-half times their general business license tax but in no case less than $200.00 per year, nor more than $4,000.00 per year.

• (C) Gasoline service stations shall be exempt from these charges.

(Prior code § 15.101; Ord. 2483 § 2, 1985; Ord. 2925 § 1, 1991)

The revenues derived from taxes imposed under this chapter upon the businesses in Montgomery Village Business Improvement Area No. 1 shall be utilized for the following purposes:

• (A) Decoration of any public place in the area; and

• (B) Promotion of public events which are to take place on or in public places in the area; and

• (C) The general promotion of retail activities in the area.

(Prior code § 15.102)

The business improvement license tax due under this chapter shall be due on the same date as the City's general business license tax is due under Chapter 6-04. (Prior code § 15.103)

Article II

Downtown Parking and Business Improvement Area No. One

• (A) Pursuant to the provisions and authority of the Parking and Business Improvement Area Law of 1979 (Streets and Highways Code Section 36500, et seq.), there is established "The Downtown Parking and Business Improvement Area No. One." The boundaries of the improvement area hereby established are as follows:

  • All properties included within the figure created by a line Beginning at the centerline intersection of "B" Street and Seventh Street, thence drawn Easterly along the centerline of Seventh Street to the centerline of Beaver Street; thence drawn Southeasterly along the centerline of Beaver Street to a point approximately 130 feet Northerly of the centerline of Fifth Street; thence drawn Northeasterly, at a right angle to the centerline of Beaver Street to the centerline of "E" Street (so as to include only those businesses fronting on Fifth Street); thence drawn Southerly along the centerline of "E" Street to the centerline of its intersection with Fifth Street; thence drawn Easterly along the centerline of Fifth Street to a point coincident with the Easterly property line of the lot located on the Southeast corner of Fifth Street and "E" Street; thence drawn at a right angle to the centerline of Fifth Street, Southerly to the Northeast corner of the aforementioned lot; thence drawn Southerly along the Easterly property line of said lot and all other lots having a frontage on "E" Street and approximately parallel with the centerline of "E" Street to the centerline of Second Street; thence drawn Westerly along the centerline of Second Street to the centerline intersection of Second and "D" Street; thence drawn Southerly along the centerline of "D" Street to its intersection with the centerline of First Street; thence drawn Westerly along the centerline of First Street to its intersection with the centerline of "B" Street; thence drawn Northerly to its intersection with the centerline of Seventh Street, said point being the point of Beginning.

All properties included with the foregoing figure are situated in the City.

• (B) The City Council finds and declares that the effect of subsection A of this section is to modify the boundaries of the parking and business improvement area by excluding therefrom the area known generally as the "panhandle" (being generally the area easterly of "E" Street with the exception of those businesses having property frontage on "E" Street), the property on the southeast corner of the intersection of "E" and Second Streets, and the properties fronting on the southerly side of Second Street between "D" and "E" Streets.

(Prior code § 15.200; Ord. 2926 §§ 1, 2, 1991; Ord. 3035 §§ 1, 2, 1993)

The revenues raised by the charges and/or assessments imposed on businesses situated within the boundaries of the Downtown Parking and Business Improvement Area No. One shall be used for the following purposes:

• (A) The acquisition, construction or maintenance of parking facilities for the benefit of the area;

• (B) Decoration of any public place in the area;

• (C) Promotion of public events which are to take place on or in public places in the area;

• (D) Furnishing of music in any public place in the area;

• (E) The general promotion of business activities in the area. (Prior code § 15.201)

• (A) There is imposed an annual assessment on each business situated within the boundaries of Downtown Parking and Business Improvement Area No. One. Retail Businesses (class "R" businesses) within the improvement area which are classified and taxed under Section 6-04.220(A) of the City code shall pay an annual assessment of 2.5 times their business tax based on the City's tax rates in effect on January 1, 1992; all other businesses (class "G" businesses) within the improvement area which are taxed under Sections 6-04.220(B), (C), and (D) and 6-04.230 shall pay an annual assessment of 1.75 times their business tax based on the City's tax rates in effect on January 1, 1992.

• (B) Revenues produced by the additional assessment (.75 times the business tax) placed on retail businesses (class "R" businesses) shall be used exclusively for retail sales promotional events.

• (C) Notwithstanding subsection (A), the minimum assessment on each business within the improvement area shall be $100.00 per year and the maximum assessment on a business shall not exceed $1,500.00 per year.

• (D) In the case of dual tax certificates issued to the same business at the same location, the certificate with the lesser tax liability will be used to calculate the charges hereby imposed.

• (Prior code § 15.202; Ord. 2926 § 3, 1991)

• (A) The assessments imposed under this chapter within the Downtown Parking and Business Improvement Area No. One are due and payable, and shall be collected, at the same time and in the same manner as business taxes under Chapter 6-04 of the City Code.

• (Prior code § 15.203; Ord. 2926 § 4, 1991)

Notwithstanding Section 6-56.080, charges for the remainder of calendar year 1980 only are imposed on businesses in operation on the effective date of the ordinance codified in this chapter in an amount equal to 20 percent of the charge that would otherwise be due for a full calendar year. Charges for the last fifth of calendar year 1980 are due and payable November 1, 1980. Charges on businesses opening after the effective date of the ordinance codified in this chapter but before the close of the 1980 calendar year are imposed for the remainder of calendar year 1980 in an amount equal to a percentage of the annual charge, which percentage shall be determined by dividing the number of days in a full calendar year into the actual number of days left in the 1980 calendar year at the business' opening. Charges for a business opening after the effective date of this chapter but before the end of calendar year 1980 are due and payable at the business' opening or, if earlier, at the time the business' license tax is paid for the business. (Prior code § 15.203(a))

City of Santa Rosa, CA § 6-56.100 BUSINESS TAXES, LICENSES AND REGULATIONS

§ 6-56.110

The Board of Directors of the Downtown Development Association, as the same now is constituted and as its membership may change from time to time, is designated and appointed as the advisory board to the City Council to make recommendations as to the expenditure of the revenues collected within the improvement area and to assume such other duties and responsibilities in connection with the improvement area as the City Council may from time to time, by resolution, deem useful and appropriate. (Prior code § 15.204)

The businesses within the Downtown Parking and Business Improvement Area No. One shall be subject to any amendments to the Parking and Business Improvement Law of 1979, as may be enacted by the State Legislature. (Prior code § 15.205)

Article III

Downtown Business Improvement Area

Pursuant to the Act, a business improvement area to be named the Downtown Business Improvement Area is created and established. The area shall be comprised of three separate benefit zones: the Courthouse Square benefit zone, the Railroad Square benefit zone and the Santa Rosa Plaza benefit zone. The area is proposed to include the following addresses:

Text read from an image; its layout may differ:
Railroad Square Benefit Zone
Street Odd Range Even Range
Third Street 1 - 299 2 - 298
Fourth Street 1 - 299 2 - 298
Fifth Street 1 - 299 2 - 298
Sixth Street 1 - 101 2 - 198
Seventh Street 1 - 111 2 - 98
Eighth Street 1 - 109 2 - 116
Adams Street 501 - 599 500 - 598
Davis Street 201 - 499 200 - 498
Railroad Street 101 - 299 100 - 298
West Third Street 1 - 7 2 - 6
West Sixth Street 0 - 9 2 - 60
West Seventh Street 1 - 35 2 - 24
West Eighth Street 1 - 99 2 - 98
Wilson Street 201 - 799 200 - 798

Text read from an image; its layout may differ:
Courthouse Square Benefit Zone
Street Odd Range Even Range
Tenth Street 401 - 499 400 - 498
First Street 401 - 699 400 - 698
Second Street 501 - 799 500 - 798
Third Street 501 - 799 500 - 798
Fourth Street 501 - 801 500 - 802
Fifth Street 599 - 829 598 - 798
Seventh Street 401 - 621 500 - 998
A Street 0 - 0 2 - 198

City of Santa Rosa, CA § 6-56.120 BUSINESS TAXES, LICENSES AND REGULATIONS

§ 6-56.150

Text read from an image; its layout may differ:
Courthouse Square Benefit Zone
Street Odd Range Even Range
B Street 501 - 511 100 - 628
Beaver Street 401 - 499 400 - 498
College Avenue 0 – 0 456 - 456
D Street 1 - 399 2 - 398
E Street 1 - 431 2 - 430
Healdsburg Avenue 0 - 699 0 - 698
Humboldt Street 401 - 499 400 - 498
King Street 401 - 433 400 - 418
Mendocino Avenue 1 - 699 2 - 698
Old Courthouse Square 1 - 299 2 - 298
Orchard Street 401 - 499 400 - 498
Riley Street 401 - 499 400 - 498
Ross Street 501 - 599 500 - 598
South E Street 1 - 99 2 - 98
Santa Rosa Avenue 1 - 149 2 - 198
Sonoma Avenue 601 - 799 0 - 0
Santa Rosa Plaza Benefit Zone
1071 Santa Rosa Plaza

(Ord. 3752 § 4, 2005)

The proposed boundaries of the area and each separate Benefit Zone are as set forth in Exhibit A, attached to the ordinance codified in this article. (Ord. 3752 § 5, 2005)

For the Railroad Square and Courthouse Square benefit zones, "business" means all types of businesses, including financial institutions and professions, with the exception of street vendors, which means those businesses operating in the public right-of-way, without a fixed location, and on a temporary (once a week or less) or seasonal (three months out of the year or less) basis; and home occupations, which means those businesses which are conducted at a residence by the primary resident, which no customers, clients, or nonresident employees visit as a regular business practice, or which, if the occupation involves tutoring, no more than two students visit at one time.

(Ord. 3752 § 6, 2005)

For purposes of the assessments to be imposed pursuant to this article, the 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 area. All businesses, trades and professions including insurance, financial institutions and nonprofits located within the area shall, commencing November 17, 2005, be classified, defined, and assessed as set forth in Exhibit B, attached to the ordinance codified in this article. Businesses commenced during the year following the establishment or renewal of the area shall not be exempt from such assessments, but shall be assessed the appropriate amounts as listed in Exhibit B in a prorated format based upon the number of whole months remaining in the assessment period.

(Ord. 3752 § 7, 2005)

For businesses whose gross receipts (as defined by the City of Santa Rosa Business Tax Code Section 6-04.010(D)) total $25,000.00 or less in the previous calendar year, or whose estimated gross receipts will total $25,000.00 or less in the current calendar year, a "hardship rate" of 60 percent of the annual assessment as calculated may be paid for the current assessment year. Any business paying the hardship rate shall certify under oath that it is qualified for this rate, and shall provide supporting documentation upon the City's written request. (Ord. 3752 § 8, 2005)

Every business subject to assessment under this article shall keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such assessment, which records the City shall have the right to inspect at a reasonable time and place. (Ord. 3752 § 9, 2005)

The purposes for which the funds raised by the 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 area;

• (B) Promotion of public events which benefit businesses within the area and which are to take place on or in public places within the area;

• (C) Decoration of any public place within the area; and

• (D) Acquisition, construction, installation or maintenance of improvements identified in Section 36510 of the Act.

• (Ord. 3752 § 10, 2005)

• (A) Appointment. The Council shall appoint an advisory board pursuant to Section 36530 of the Act in order to make recommendations to the Council on the expenditure of revenue obtained from the levy of assessments, on proposed improvements and activities, on the classification of businesses and on the method and basis of levying assessments.

• (B) The Council finds and declares that the persons appointed to the advisory board shall represent and further the interests of the Downtown Business Improvement Area. Only persons who own or are an officer or shareholder in a business in the area that is subject to the levy of assessments shall be appointed.

• (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 Council.

• (Ord. 3752 § 11, 2005)

• (A) Annual Resolution of Intention. After approval of the annual report filed by the advisory board, the Council, in order to renew the area, 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 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 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. 3752 § 12, 2005)

The Council may, at the advisory board's recommendation, modify the boundaries or assessments established pursuant to this article; 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 Area 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 Council or by resolution, if approved in conjunction with confirmation of the annual report. (Ord. 3752 § 13, 2005)

The benefit assessment authorized by this article 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 article and subsequent resolutions and fund management agreements. The levy of assessments shall be accomplished by mailing assessment notices to all businesses as herein defined within the Area by first class mail once each year, to be due and payable within

30 days of the date of the notice.

(Ord. 3752 § 14, 2005)

• (A) Penalty for Delinquent Payment. For failure to pay a benefit assessment within 30 days of the date of billing, a penalty of 10 percent of the assessment amount shall be charged by the City. An additional penalty of 10 percent of the assessment amount shall be charged for failure to pay the benefit assessment every 30 days thereafter. The total penalty amount to be charged shall in no event exceed 100 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, attorney fees, court costs, agent fees and servicing fees. In addition to the penalties imposed, any business that fails to remit any assessment imposed by this chapter shall pay interest at the rate of one percent per month, exclusive of penalties, on the amount of the assessment from the date on which the assessment first becomes delinquent until paid. Every penalty imposed and interest that accrues under the provisions of this chapter shall become part of the assessment required to be paid.

• (B) Reporting. If any business fails to file any required statement or fails to pay a benefit assessment when due, the City may determine the amount of the assessment due from the business on the basis of such information as the City may obtain. If there is inadequate information to make this determination after reasonable inquiry, the City may determine the amount due based upon the maximum rate allowable for the Benefit Zone in which the business is located.

• (C) Debt Owed to City. The amount of the assessment, penalties and interest imposed by this chapter shall be deemed a debt owed to the City. An action may be commenced in a court of competent jurisdiction for the amount of the assessment, and resulting penalties, interests, costs and fees, including reasonable attorney fees.

• (Ord. 3752 § 15, 2005)

A violation of any provision of this chapter shall be punished in accordance with City Code Section 1-28.010.

(Ord. 3752 § 16, 2005)

All remedies prescribed in this article shall be cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing these provisions. (Ord. 3752 § 17, 2005)

Article IV

Santa Rosa Tourism Business Improvement Area

This chapter is adopted pursuant to the "Parking and Business Improvement Area Law of 1989," Sections 36500 et seq., of the California Streets and Highways Code, and Resolution No. 27641 adopted by the Council on June 8, 2010. Such resolution was published and mailed as provided by law, and public meetings and hearings thereon were held by the Council on July 20, 2010, and July 27, 2010, at which time all persons desiring to be heard, and all objections or protests made or filed, were fully heard and considered. The Council duly concluded the hearing on July 27, 2010, and determined that protests objecting to the formation of the Area had not been received from the owners of lodging businesses in the proposed Area which would pay 50 percent or more of the assessments proposed to be levied. The Council finds that the assessments levied on owners of lodging businesses pursuant to this article are based upon the estimated benefit to the owners of assessed lodging businesses within the Area, and that all owners of lodging businesses in the Area against whom assessments are proposed to be levied will be benefited by the expenditure of funds raised by the assessments. (Ord. 3946 § 2, 2010)

Except where the context otherwise requires, as used in this article:

"Administrative fee" means a fee equal to the actual costs of collection and administration, not to exceed two percent of the amount of assessments collected, which the Tax Collector is entitled to retain from the assessments collected.

"Advisory board" means the Advisory Board designated by the City Council pursuant to this article.

"Annual report" means the annual report required by Section 36533 of the Law.

"Area" means the Santa Rosa Tourism Business Improvement Area created by this article and as delineated in Section 6-56.280.

"Assessment" means the levy imposed by this article for the purpose of funding activities and programs promoting tourism in the Area.

"City" means the City of Santa Rosa.

"Contractor" means a nonprofit or for-profit entity with which the City contracts to carry out the services, activities, and programs to be funded by revenues from assessments.

"Council" means the Santa Rosa City Council.

"Lodging" means any accommodation consisting of one or more rooms or other living spaces which are occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes. Such term includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. The term "lodging" does not include an organized camp, as that term is defined in Section 18897 of the Health and Safety Code, or any establishment operated by a public or nonprofit entity exclusively for the purpose of providing temporary shelter for the homeless.

"Marketing activities" mean activities designed to market the Area as a tourist destination, including the expenditure of funds to place advertising in any media, conduct public relations campaigns, perform marketing research, promote conventions and trade shows, and foster improved contacts within the travel industry, for the purpose of promoting tourism within the Area.

"Occupancy" means the use or possession, or the right to the use or possession, of any one or more rooms or portion thereof, or other living space, in any lodging for dwelling, lodging, or sleeping purposes.

"Operator" means the person who is the owner of a lodging business, whether in the capacity of an owner, lessee, sublessee, mortgagee in possession, or licensee of the real property upon which the lodging business is located, or other capacity. When the operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this article, and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this article by either the principal or the managing agent shall, however, be considered compliance by both. For purposes of the imposition of assessments pursuant to Section 6-56.300, the term "operator of a lodging establishment" shall include persons or entities who manage the rental of individual residential units to transients, even if such units are not owned by such operator.

"Parking and business improvement area law of 1989" or "law" means the provisions of California Streets and Highways Code Sections 36500 to 36551, as they now exist or are hereafter amended. Businesses in the Area shall be subject to any amendments to the Law.

"Person" means an individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.

"Rent" means the consideration charged, whether or not received, for the occupancy of a space in a lodging valued in money, whether to be received in money, goods, labor, or otherwise, including all receipts, cash, credits, property, and services of any kind or nature, without deduction therefrom whatsoever.

"Santa Rosa Tourism Business Improvement Area" means that area created by this article as a business improvement area pursuant to the Parking and Business Improvement Area Law of 1989.

"Santa Rosa Tourism Business Improvement Area Fund" or "fund" means the fund created pursuant to Section 6-56.320 of this article.

"Tax collector" means the Tax Collector of the City.

"Transient" means any person who exercises occupancy or who is entitled to occupancy by reason of concession, permit, right of access, license, or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a lodging shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of the ordinance codified in this article may be considered.

(Ord. 3946 § 2, 2010)

Pursuant to the Parking and Business Improvement Area Law of 1989, a parking and business improvement area is hereby established, to be known as the "Santa Rosa Tourism Business Improvement Area." The boundaries of the Area are the same as the boundaries of the City. (Ord. 3946 § 2, 2010)

The purpose of forming the Area as a business improvement area under the Law is to provide revenue to defray the costs of services, activities, and programs that promote and encourage tourism within the Area, which will benefit the operators of lodging establishments paying assessments in the Area through the promotion of the scenic, recreational, cultural, and other attractions in the Area. Revenues from assessments shall be used to conduct marketing activities designed to increase overnight visits to the Area. Revenues from assessments may also be used for programs, services, and activities inside or outside the Area, if such programs, services, and activities are designed to promote and encourage overnight visits to the Area. Revenues from assessments may also be used to pay or reimburse administrative costs inclined by the contractor or the City in connection with the creation of the Area and the ongoing administrative costs associated with the marketing activities. Administrative costs paid or reimbursed pursuant to this section shall not be subject to the limit set forth in Section 6-56.310; provided, however, that the City's reimbursement for assessment collection costs is limited as provided in Section 6-56.310. Revenues from assessments collected in the Area may not be used for any purposes other than those set forth above.

(Ord. 3946 § 2, 2010)

• (A) Each operator of a lodging establishment shall pay as an assessment a sum equal to three percent of the rent charged by the operator.

• (B) Each operator of a lodging establishment subject to assessment under this article shall, on or before the last day of the month following each calendar quarter, or at the end of any shorter reporting period that may be established by the Tax Collector, make a return to the Tax Collector, on forms provided by the Tax Collector, of the total rents charged by the operator and the amount of assessments owed for such calendar quarter. At the time the return is filed, the full amount of assessments owed for such calendar quarter shall be remitted to the Tax Collector.

• (C) The operator of a lodging establishment subject to assessment under this article shall be solely responsible for paying all assessments when due. Notwithstanding the foregoing, in the event that the operator of a lodging establishment elects to pass on some or all of the assessment to transient customers of the lodging establishment, the operator of the lodging establishment shall separately identify or itemize the assessment on any document provided to a customer. Assessments levied on the operators of lodging establishments pursuant to this article and passed on to customers are not part of a lodging establishment operator's rent, gross receipts, or gross revenues for purposes of this article or Chapter 3-28 of the City Code.

• (Ord. 3946 § 2, 2010)

• (A) The Tax Collector shall be entitled to charge an amount equal to its actual costs of collection and administration, not to exceed two percent, of the assessments collected from operators of lodging establishments to defray the administrative costs incurred by the Tax Collector.

• (B) The Tax Collector may require each operator subject to assessment under this article to register with the Tax Collector and to provide such information as the Tax Collector deems necessary to enable the Tax Collector to collect assessments due under this article.

• (Ord. 3946 § 2, 2010)

A special fund designated as the "Santa Rosa Tourism Business Improvement Area Fund" is hereby created. The Tax Collector shall place all assessments collected or remitted hereunder into the Fund. The revenue from the levy of assessments within the Area shall not be used for any purposes other than those set forth in Section 6-56.290 of this article. (Ord. 3946 § 2, 2010)

• (A) Any operator subject to assessment under this article who fails to remit any assessment imposed by this article within the time required shall pay a penalty of 10 percent of the amount of the assessment in addition to the amount of the assessment.

• (B) Any operator subject to assessment under this article who fails to remit any delinquent remittance on or before a period of 30 days following the date upon which the remittance first became delinquent shall pay a second delinquency penalty of 10 percent of the amount of the assessment, in addition to the amount of the assessment and the 10 percent penalty first imposed.

• (C) If the Tax Collector determines that the nonpayment of any remittance due under this article is due to fraud, a penalty of 25 percent of the amount of the assessments due shall be added thereto, in addition to the penalties set forth in subsections (A) and (B) of this section.

• (D) In addition to any penalties imposed hereunder, any operator who fails to remit any assessment imposed by this article when due shall pay interest at the rate of one and onehalf percent per month on the unpaid balance of the assessment, from the date on which the assessment first became delinquent until paid.

• (Ord. 3946 § 2, 2010)

• (A) If any operator subject to assessment under this article shall fail to make any report or remittance of assessments within the time provided in this article, the Tax Collector shall proceed in the manner it deems best to obtain facts and information upon which to base its estimate of the assessment due, and shall thereafter determine and assess against the operator the assessment, penalties, and interest due pursuant to this article. In any case where such determination is made, the Tax Collector shall give a notice of the amounts so assessed by serving it personally or depositing it in the United States mail, postage prepaid, addressed to the operator at its last known place of address.

• (B) The operator may, within 10 calendar days after the serving or mailing of such notice, make application in writing to the Tax Collector for a hearing on the amount assessed. The application is considered made when mailed. If application by the operator for a hearing is not made within the time prescribed, the assessments, penalties, and interest, if any, determined by the Tax Collector to be due shall become final and conclusive and immediately due and payable. If the operator makes timely application for a hearing, the Tax Collector shall give not less than 10 calendar days' written notice to the operator as provided herein of the time and date of the hearing. At the hearing, the operator may appear and offer evidence as to why the amounts specified in the Tax Collector's determination should not be fixed.

• (C) After such hearing, the Tax Collector shall determine the proper assessment, penalties, and interest to be remitted, and shall thereafter give written notice of same to the operator, within 30 calendar days of the hearing. The Tax Collector's determination shall be presumed to be correct. The amount determined to be due shall be payable after 15 calendar days from the date of mailing of the determination, unless an appeal is taken pursuant to Section 6-56.350 of this article. At any appeal, the operator has the burden of proving that the Tax Collector's determination is incorrect.

• (Ord. 3946 § 2, 2010)

Any operator subject to assessment under this article aggrieved by any decision of the Tax Collector with respect to the amount of assessments, penalties, or interest imposed under this article may appeal to the Council by filing a notice of appeal with the City Clerk, and a copy on the Tax Collector, within 15 calendar days of the serving or mailing of the determination by the Tax Collector. The Council shall fix a time and place for hearing such appeal, and the City Clerk or the Tax Collector shall give notice to the operator by mailing such notice to the operator at its last known place of address. The time of the hearing shall be at least 15 calendar days after the mailing of the notice. The Tax Collector shall present the matter to the Council and include evidence submitted by the operator. The Tax Collector shall also include proposed findings and a resolution of the appeal. At the hearing, the Tax Collector and the operator shall have an opportunity to explain their case and introduce other statements or evidence. The Council may impose reasonable time limits on each party's presentation. The findings of the Council shall be final and conclusive, and shall be served on the operator as provided in Section 6-56.340 of this article. Any amount found to be due shall be immediately due and payable. (Ord. 3946 § 2, 2010)

Any assessment, penalty, or interest required to be paid by any operator subject to assessment under this article shall be deemed a debt owed by the operator to the City. Any assessment collected from a transient by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City. Any operator owing money to the City for assessments under this article shall be liable to an action brought in the name of the City for the recovery of the amount of the debt. The City shall be entitled to recover from an operator found liable for the debt, or any part thereof, any costs, including attorneys' fees, personnel costs, or other expenses incurred by the City because of the failure of the operator to timely remit assessments, penalties, or interest to the City.

(Ord. 3946 § 2, 2010)

If an assessment, penalty, or interest imposed by this article has been overpaid or paid more than once or paid in error, or has been illegally collected or received by the City, a refund may be sought by filing a claim according to the procedure set forth in Title 3, Section 3-28.080 of this code.

(Ord. 3946 § 2, 2010)

Any operator violating any of the provisions of this article shall be guilty of a misdemeanor and shall be punishable therefor as provided in Title 1 Section 1-28.010 of this code. In addition, the Tax Collector may pursue on behalf of the City any civil or administrative remedy otherwise available for failure to comply with the requirements of this article. If the City prevails in such action or proceeding, the City shall be entitled to recover its costs, including attorneys' fees, personnel costs, or other expenses incurred because of the failure to comply with the provisions of this article.

(Ord. 3946 § 2, 2010)

Every operator of a lodging establishment subject to assessment under this article shall keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such assessment as he or she may have been liable for the collection of and payment to the Tax Collector, which records the Tax Collector shall have the right to inspect at a reasonable time and following 24 hours' prior written notice.

(Ord. 3946 § 2, 2010)

An Advisory Board is hereby created, which composition shall be made up of five members appointed as follows:

• (A) One Santa Rosa Chamber of Commerce employee;

• (B) One City of Santa Rosa employee;

• (C) Three hotel operators, at least one of whom is employed by a full service hotel and one of whom is employed by a select service hotel.

The Advisory Board shall thereafter be subject to Council Policy No. 000-06. Notwithstanding any Council Policy that may now or hereafter exist to the contrary, City employees shall serve on the Advisory Board. The Advisory Board shall advise the City Council on the amount of the Area's assessments and on the services, programs, and activities to be funded by the assessments, and shall perform such other duties as required by the Law, including preparing the Annual Report required by Section 36533 of the Law. The Advisory Board shall meet as often as necessary to accomplish its goals, but no less than once each calendar quarter.

(Ord. 3946 § 2, 2010)

• (A) The City may contract with a contractor to carry out the services, activities, and programs to be funded by 70 percent of the revenues from assessments, as set forth in this article and the Law, and as specified in the applicable Annual Report. The Santa Rosa Chamber of Commerce is hereby designated to act as the initial contractor. Any contract between the City and the contractor shall conform to the provisions of this article.

• (B) The contract with the contractor shall reasonably specify the services, programs, and activities to be provided by the contractor, which services, programs, and activities shall be in conformance with the applicable Annual Report. The contractor may provide any services, programs, or activities that promote tourist visits to the Area, without regard to the limitations set forth in Section 6-56.290, provided that services, programs, or activities not authorized by Section 6-56.290 may not be paid for using revenues from assessments. Prior to contracting with a contractor, the City shall obtain a budget from the contractor showing to the satisfaction of the City that the revenues from assessments and all other sources to be paid to the contractor are sufficient to permit the contractor to carry out the services, programs, and activities set forth in the annual plan. The contract with the contractor shall contain provisions allowing the City to inspect the contractor's records, to perform audits and investigations, or to obtain reports from the contractor as the City deems necessary to ensure that revenues from assessments are used only as set forth in the contract and as permitted under this article and the Law. The contract shall provide that it may be terminated by the City, with or without cause, on no less than 30 days' notice.

• (C) The Council may, in its sole discretion, remove the initial or any successor contractor at any time. Upon such removal, the Council may either: (1) select and contract with a successor contractor; or (2) provide the services, program, and activities set forth in the applicable Annual Report with the City's own forces, in which case, the City may fund services performed and expenses incurred from revenues from assessments.

• (D) The contract with the contractor shall be administered on behalf of the City by the Director of the Economic Development and Housing, who may authorize disbursements from the Santa Rosa Tourism Business Improvement Area Fund solely for the purposes set forth in Section 6-56.290.

• (Ord. 3946 § 2, 2010)

• (A) The Council, by ordinance, may modify the provisions of this article 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 Council to consider the proposed action.

• (B) If the operators of lodging establishments which pay 50 percent or more of the assessments in the Area 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 required by subsection (D) of this section and the Law. Signatures on such petition shall be those of a duly authorized representative of the operators of lodging establishments in the Area that paid assessments in the prior calendar quarter.

• (C) In the event the resolution proposes to modify any of the provisions of this article, including changes in the amount or authorized uses of assessments, such proceedings shall terminate if protest is made by the operators of lodging establishments paying 50 percent or more of the assessments in the Area.

• (D) In the event the resolution proposes disestablishment of the Area, the Council shall disestablish the Area; unless at such hearing, protest against disestablishment is made by the operators of lodging establishments paying 50 percent or more of the assessments in the Area.

• (Ord. 3946 § 2, 2010)