HomeMy WebLinkAbout06/03/2008, C7 - FINAL ADOPTION OF ORDINANCE NO. 1516 (2008 SERIES) AMENDING CHAPTER 12.36 OF THE MUNICIPAL CODE TO counat
j ac,Enaa Report
C I T Y OF SAN LUIS OBISPO
FROM: Jonathan Lowell, City Attorney it-
Prepared By: Christine Dietrick, Assistant City Attorney
SUBJECT: FINAL ADOPTION OF ORDINANCE NO. 1516 (2008 SERIES)
AMENDING CHAPTER 12.36 OF THE MUNICIPAL CODE TO
INCREASE THE DOWNTOWN PARKING AND BUSINESS
IMPROVEMENT AREA ASSESSMENT
CAO RECOMMENDATION
Adopt Ordinance No. 1516 (2008 Series).
DISCUSSION
On April 1, 2008, Council adopted a Resolution of Intention to Increase the Downtown Business
Improvement Area Assessment, Resolution No. 9968 (2008 Series). Following required public
and business owner notifications, Council held a public meeting to hear testimony in favor of and
opposed to the proposed increase. On May 20, 2008, the Council held a public hearing to hear
business owner protests and to determine whether there was a legally sufficient level of protest
among Downtown area business owners to require Council to reject a proposed increase in the
Business Improvement Area assessment. After determining that a sufficient level of protest had
not been made, Council voted 5-0 to introduce Ordinance No. 1516 (2008 Series) increasing the
assessment.
Ordinance No. 1516 (2008 Series) is now ready for adoption and will become effective thirty
days after the date of its final passage.
ATTACHMENTS
1. Resolution No. 9968 (2008 Series)
2. Ordinance No. 1516 (2008 Series)
READING FILE
April 1, 2008 Council Agenda Report Regarding Downtown Association Restructuring and
Proposed Assessment Increase.
T:\Downtown Association\DA CAR 6-3\Assessment Docs\CAR.Final Adoption.Assessment Increase.2008.6.3.DOC
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ATTACHMENT 1
RESOLUTION NO. 9968 (2008 Series)
A RESOLUTION OF INTENTION OF THE COUNCIL OF THE
CITY OF SAN LUIS OBISPO TO INCREASE THE DOWNTOWN BUSINESS
RY PROVEMENT AREA ASSESSMENT
WHEREAS, the Downtown Business Improvement Area was formed in 1975 pursuant
to the Parking and Business Improvement Area Law and City Council Resolution No. 2879
(1975 Series), and the Downtown Association was established as an Advisory Board of the City
of San Luis Obispo by Ordinance No. 649 (1975 Series) as amended by Ordinance No. 1334
(1998 Series) for the purpose of administering the Area for the benefit of its membership; and
WHEREAS, member businesses in the Downtown Business Improvement Area("Area")
have been charged an assessment to fund the activities of the Downtown Association for the
benefit of those member businesses since 1975; and
WHEREAS, the amount of the assessment has remained unchanged since its adoption in
1975; and
WHEREAS, the Downtown Association is in the process of forming an independent
non-profit entity with which the City intends to contract for the delivery of services to benefit
members of the Area; and
WHEREAS, the Downtown Association has determined that an increase in the
assessment amount is necessary to better serve the needs of its membership; and
WHEREAS, the City supports the efforts of the Downtown Association and wishes to
facilitate its resource needs so that the Downtown Association may better serve its membership
by providing services as set forth in Section 3 below.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. It is the City's intention to increase the assessment to be collected from
businesses within the Area for the fiscal year 2008-09 as further described in Section 4.
SECTION 2. The area within which the assessments are to be collected was established
by Ordinance No. 649 and has boundaries defined as follows:
From Santa Rosa Street along Palm Street to Broad Street, Broad to Monterey, Monterey
to Nipomo, Nipomo to San Luis Creek, San Luis Creek to a point where Beach Street
would intersect, from this intersection point to Beach and Marsh, Marsh to Nipomo,
Nipomo to Pacific, Pacific to Santa Rosa, Santa Rosa to Palm. The area shall include the
businesses fronting on both sides of the boundary streets listed above, and at all four
corners of the intersections of said boundary street listed above, except that it shall not
include the northwesterly corner of Monterey and Nipomo Streets.
R 9968
C �-a
ATTACHMENT I
Resolution No. 9968 (2008 Series)
Page 2
SECTION 3. Pursuant to Ordinance No. 649 (1975 Series), the assessment revenues are
to be used exclusively for the following activities:
(1) Acquisition, construction or maintenance of parking facilities for the benefit of the
Area, provided that said facilities shall not impair the City's ability to produce revenues for the
payment of Parking District No. 1 obligations.
(2)Decoration of any public place in the Area.
(3)Promotion of public events which are to take place on or in public places in the Area.
(4)Furnishing of approved music in any public place in the Area.
(5).General promotion of retail trade activities in the Area.
SECTION 4. There is a report on file with the City Clerk providing a full and detailed
description of the improvements and activities to be funded from the assessment and the
boundaries of the Area. The City is proposing to increase the annual assessment levied upon
Area businesses from 0.00050 of gross receipts (for example, $50 per $100,000) to 0.00055 of
gross receipts (for example, $55 per$100,000); and to increase the annual minimum assessment
from $25 to $150. The assessment proposed herein shall continue to be collected at the same
time and in the same manner as the City's business tax. It is estimated that the proposed
assessment will raise $229,000 in 2008-09 compared with estimated revenues from the current
assessment of$168,000 in 2007-08. For additional information about the proposed,assessment,
interested persons should contact:
Deborah Cash,Downtown Association Administrator
1108 Garden Street,Suite 210
Post Office Box 1402
San Luis Obispo, CA 93406
Phone: 805.541.0286 Fax: 805.781.2647
Email: dcash@downtownslo.com
SECTIONS. Pursuant to California Government Code, Section 54594.6, the Council
will hold a public meeting on May 6, 2008 at 5:45 PM at which it shall allow public testimony
regarding the proposed increased assessment and, thereafter, will conduct a noticed public
hearing on May 20, 2008 at 7:00 PM prior to taking action on the proposed increase to the
assessment. Both meetings will be held at the City Council Chambers, 990 Palm Street, San
Luis Obispo,CA,93401.
If the Council approves the proposed assessment at the May 20, 2008 public hearing; the
ordinance amending the assessment will be introduced at that time; and final Council adoption of
the ordinance will be scheduled for June 3, 2008. If final adoption is approved at that time, the
new assessment will become effective on July 3,2008.
e7- 3
ATTACHMENT Z
Resolution No. 9968 (2008 Series)
Page 3
SECTION 6. Written and oral protests to the proposed increase may be made by owners
of businesses in the Area at.or before the time set for public hearing, pursuant to Section 5,
above. The form and manner of protests shall comply with California Streets and Highway Code,
Sections 36524 and 36525.
SECTION 7. The City Clerk shall publish joint notice of both the public meeting and
the public hearing, as set forth in Section 5 above, beginning at least 45 days prior to the public
hearing, by placing a display advertisement of this Resolution of at least one-eighth page in a
newspaper of general circulation for three weeks pursuant to Government Code, Section 6063
and by mailing of a complete copy of the Resolution of Intention by first-class mail to each
business owner in the area within seven days of the City Council's adoption of the Resolution of
Intention. The City Clerk shall also provide notice by a first-class mailing to those interested
parties who have filed a written request with the City for mailed notice of public meetings or
hearings on new or increased general taxes.
Upon motion of Council Member Mulholland, seconded by Council Member Settle,
and on the following vote:
AYES: Council Members Carter, Mulholland, and Settle, Vice Mayor-Brown and
Mayor Romero
NOES: None
ABSENT: None
The foregoing resolution was adopted on this I"day of April 2008.
Mayor David F. Romero
ATTEST:
L111 ^
AudreyHo�per
City Clerk
APPROVED AS TO FORM:
Jona well
City Attorney
C �- y
- ATTACHMENT
ORDINANCE NO. 1516 (2008 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO.
AMENDING CHAPTER 12.36 OF THE MUNICIPAL CODE TO INCREASE THE
DOWNTOWN PARKING AND BUSINESS IMPROVEMENT AREA ASSESSMENT
WHEREAS, the Downtown Business Improvement Area was formed in 1975 pursuant
to the Parking and Business Improvement Area Law and City Council Resolution No. 2879
(1975 Series), and the Downtown Association was established as an Advisory Board of the City
of San Luis Obispo by Ordinance No. 649 (1975 Series) as amended by Ordinance No. 1334
(1998 Series) for the purpose of administering the Area for the benefit of its membership; and
WHEREAS, member businesses in the Downtown Business Improvement Area ("Area")
have been charged an assessment to fund the activities of the Downtown Association for the
benefit of those member businesses-since 1975; and
WHEREAS, the amount of the assessment has remained unchanged since its adoption in
1975; and
WHEREAS, the Downtown Association is in the process of forming an independent
non-profit entity with which the City intends to contract for the delivery of services to benefit
members of the Area; and
WHEREAS, the Downtown Association has determined that an increase in the
assessment amount is necessary to better serve the needs of its membership and to ensure long
term financial stability; and
WHEREAS, the City supports the efforts of the Downtown Association and wishes to
facilitate its resource needs so that the Downtown Association may better serve its membership
by providing services as agreed between the City and the Downtown Association.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Chapter 12.36. (Downtown Parking and Business Improvement Area) of
Title 12 (Streets, Sidewalks and Public Places) of the San Luis Obispo Municipal Code is hereby
repealed.
SECTION 2. New Chapter 12.36 is hereby adopted to read as follows:
Chapter 12.36
DOWNTOWN PARKING AND BUSINESS IMPROVEMENT AREA
Sections:
12.36.010 Establishment.
12.36.020 Boundaries.
12.36.030 Assessment—Imposed.
12.36.040 Assessment—Amount.
12.36.050 Assessment—Use of revenues.
C 7-s
ATTACHMENT �
Ordinance No. 1516 (2008 Series)
Page 2
12.36.060 Assessment—Collection.
12.36.070 Findings and determinations.
12.36.080 Council's authority to enter into annual agreements for revenue expenditures.
12.36.100 Exemptions—Contributions from exempt persons welcome.
12.36.010 Establishment.
There is hereby created and established the downtown parking and business improvement area.
12.36.020 Boundaries.
The boundaries of the area are generally shown on Exhibit A map attached to the ordinance
codified in this chapter and on file in the office of the city clerk, and are more specifically
described as follows:
From Santa Rosa Street along Palm Street to Broad Street, Broad to Monterey, Monterey to
Nipomo, Nipomo to San Luis Creek, San Luis Creek to a point where Beach Street would
intersect, from this intersection point to Beach and Marsh, Marsh to Nipomo, Nipomo to Pacific,
Pacific to Santa Rosa, Santa Rosa to Palm.
The area shall include the businesses fronting on both sides of the boundary streets listed in the
preceding paragraph, and at all four corners of the intersections of the boundary streets listed in
the preceding paragraph, except that it shall not include the northwesterly corner of Monterey and
Nipomo Streets.
12.36.030 Assessment—Imposed.
Each and every business in the downtown parking and business improvement area shall be
subject to, and shall pay an assessment to support the activities of the area, except as otherwise
provided in Section 12.36.090.
12.36.040 Assessment—Amount.
The amount of assessment to be paid by each business annually shall be one hundred and ten
percent (110%) of the business tax levied upon the business by the city except that the minimum
annual assessment shall be $150.00.
12.36.050 Assessment—Use of revenues.
The only uses for which the assessment revenue from the area shall be expended are:
A. Acquisition, construction or maintenance of parking facilities for the benefit of the area;
provided, that the facilities shall not impair the city's ability to produce revenues for the
payment of parking district No. 1 obligations;
B. Decoration of any public place in the area;
J ATTACHMENT ,,
Ordinance No. 1516 (2008 Series)
Page 3
C. Promotion of public events which are to take place on or in public places in the area;
D. Furnishing of approved music in any public place in the area;
E. General promotion of retail trade activities in the area.
12.36.060 Assessment—Collection.
The collection of assessments imposed in this chapter shall be made at the same time and in the
same manner as the city's business tax.
12.36.070 Findings and determinations.
This council finds and determines that parking and other needs are so general in the downtown
section of the city, and that the size of the area is so small, that each business in the area will
benefit from expenditures of assessment revenues substantially in proportion to the amount of
business taxes paid (Streets and Highways Code § 36062.)
12.36.080 Council's authority to enter into annual agreements for revenue
expenditures.
The council shall have authority to enter into annual agreements with nonprofit business
promotional groups or organizations serving the area, which authorize the groups or
organizations to expend area revenues in accordance with city budgetary and accounting
procedures.
12.36.090 Exemptions—Contributions from exempt persons welcome.
Any business, person or institution in the area that is exempt from the payment of the business
tax of the city by reason of the provisions of the United States or California State Constitutions is
not to be assessed, but may make a voluntary contribution to the city to be expended only for
authorized expenditures of the area.
SECTION 3. The increased assessment imposed by this Ordinance shall become
effective on July 3, 2008 and shall be collected with business tax renewals issued and processed
for fiscal year 2008-09.
SECTION 4. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final passage,
in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into
effect at the expiration of thirty(30) days after its final passage.
Cl - 7
ATTACHMENT
Ordinance No. 1516 (2008 Series)
Page 4
INTRODUCED on the 20th day of May, 2008, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 3rd day of June, 2008, on the following roll call
vote:
AYES:
NOES:
ABSENT:
Mayor David F. Romero
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
Jonathan P. Lowell, City Attorney