Santa Rosa Municipal Code Art. 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:

Railroad Square Benefit Zone

Courthouse Square Benefit Zone

(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)