HomeMy WebLinkAbout05/20/2008, PH 3 - PROTEST HEARING REGARDING PROPOSED DOWNTOWN ASSOCIATION ASSESSMENT INCREASE \tel
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CITY O F SAN LUIS O B I S P O
FROM: Shelly Stanwyck, Assistant City Administrative Officer
Prepared By: Bill Statler, Director of Finance & Information Technology
Christine Dietrick, Assistant City Attorney
Deborah Cash, Downtown Association Administrator
Claire Clark, Economic Development Manager
SUBJECT: PROTEST HEARING REGARDING PROPOSED DOWNTOWN
ASSOCIATION ASSESSMENT INCREASE
CAO RECOMMENDATION
1. Conduct a public hearing to receive testimony regarding the Council's intention to introduce an
ordinance increasing the amount of the assessment paid by downtown business operators from
0.00050 of gross receipts to 0.00055 of gross receipts, and increase the minimum annual assessment
from $25 to $150.
2. Rule upon any protests.
3. If a legally sufficient protest showing is not made, introduce an ordinance increasing the Downtown
Parking and Business Improvement Area assessment.
DISCUSSION
Background
The Downtown Association (DA), in its present structure, was created in 1975 pursuant to the Parking
and Business Improvement Area Law of 1965 (California Streets and Highway Code §36000-36081).
That law provides the authority to the City to impose and collect an assessment from businesses and
property owners in a defined area. It also allows the City to establish the purposes for which revenues
from the assessment can be used; and provides that "[t]he city council shall have sole discretion as to
how the revenue derived from the tax is to be used within the scope of the [defined] purposes."
As discussed at the April 1, 2008 Council meeting, the DA, with the support of the Council, and in
coordination with City staff, will no longer be a City advisory body and will become a nonprofit
membership benefit corporation. The City intends to continue to provide service to DA members by
contracting with the DA. Significant progress toward this end has been made including the Council's
introduction of an ordinance eliminating the DA's status as an advisory body of the City; and the DA's
application to the Internal Revenue Service (IRS) to obtain non-profit status. The ordinance
Downtown Association Proposed Assessment Increase Page 2
restructuring the DA is scheduled for final adoption at this meeting and the DA Administrator recently
received notification from the IRS that the requested non-profit status is likely to be approved.
Notice of Intent to Increase Assessments.
In order to facilitate the DA's restructuring the Council adopted a Resolution of Intention (Resolution
No. 9968 (2008 Series)) (Attachment 1) on April 1, 2008 declaring its intention to increase the
Downtown Business Improvement Area (BIA) assessment. By adoption of the Resolution of Intention,
the Council endorsed the recommendation of the Downtown Association Board of Directors that the
BIA assessment be established at the rate of 110% of the City business tax (0.00055 of gross receipts),
with a minimum assessment of $150; compared with the current rate of 100% of the business tax
(.00050 of gross receipts), with a minimum assessment of $25. For example, under the proposed
increase, a member currently paying $250 for $500,000 in gross receipts would now pay $275 (an
increase of $25 for the year, or about $2 per month). Businesses paying less than $150 would be
increased to that minimum amount.
Following adoption of the Resolution of Intention, notification was published and mailed to area
business and property owners (Attachment 2), consistent with statutory requirements, notifying the
owners and other interested members of the public of the following key actions:
1. Public Meeting. A public meeting to hear testimony supporting or opposing the proposed
assessment increase, which was held at the May 6, 2008 Council meeting.
2. Protest Hearing. The May 20, 2008 assessment increase Protest Hearing, which is the subject of
this report.
3. Introduction of Ordinance to Increase Assessment. Absent valid protests, the May 20, 2008
Introduction of the Ordinance to increase the assessment(Attachment 3).
4. Final Adoption: of Ordinance to Increase Assessment. The final adoption of the proposed
Ordinance to increase the assessment, scheduled to occur on June 3; 2008, assuming no valid
protest.
5. Ordinance Effective. If all the actions are taken as described above, the anticipated effective
date of the Ordinance will be July 3, 2008.
The required public meeting was held, as scheduled, on May 6, 2008. It was the opportunity for the
Council to receive input from the public. One letter was received and no public testimony was given.
Since the Council's April 1, 2008 adoption of the Resolution of Intention, the DA Administrator has
continued outreach to the membership and received only one letter objecting to the increase balanced by
a general acceptance noted by the lack of any other objectors.
May 20, 2008 Protest Hearing
The Council's next procedural step, prior to considering an increased assessment, is to conduct a public
protest hearing to hear any opposition from area business owners to the proposed increase. As set forth
in Sections 36524 and 36525 of the California Streets and Highways Code, the Council has the ability to
approve the proposed increased assessment at this public hearing, unless oral or written protests are
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Downtown Association Proposed Assessment Increase Page 3
received from the owners of businesses in the DA area that will pay 50% or more of the proposed
assessments. In that event, the Council cannot consider another proposed increase for at least one year.
Oral protests can be made at the May 20, 2008 public hearing. Written protests must be received by the
City Clerk at or before the public hearing and must include a sufficient description of the business to
identify the owner and assure that it is located in the assessment area.
Introduction of Ordinance Increasing Assessments and Next Steps
In considering the proposed assessment increase, the Council may reduce the amount proposed, but
cannot increase it further. If the Council supports the proposed increase at this May 20, 2008 hearing,
an ordinance amending the assessment must be introduced; and final City Council adoption of the
ordinance will be scheduled for June 3, 2008. If the City Council approves final adoption at that time,
the assessment will become effective on July 3, 2008 and will be collected with the 2008-09 business
tax renewals in July 2008. The increased assessment is a key component in facilitating the long term
success of DA's continued service to the BIA area.
CONCURRENCES
The recommended actions necessary to increase the assessment and create an independent DA are
supported by the DA Board of Directors.
FISCAL IMPACT
There are no direct fiscal impacts to the City in approving the recommended actions. The City will
continue to provide a high level of service through collection of business tax and assessment revenues,
and coordination between City and SLODA staff will continue to be a priority to benefit the Downtown.
ALTERNATIVE
Decline to introduce an ordinance increasing the assessment or set the amount of the increase at a lower
amount. Unless there is a successful majority protest, staff does not recommend this option, given the
work and direction to-date from the Council and DA Board on this matter.
ATTACHMENTS
1. Resolution of Intention
2. Notice to Business Owners of Proposed Increase
3. Ordinance Amending Chapter 12.36
4. Legislative Draft of Municipal Code 12.36
COUNCIL READING FILE
2007 San Luis Obispo Downtown Strategic Plan
3 .3
ATTACHMENT �
RESOLUTION NO. 9968(2008 Series)
A RESOLUTION OF INTENTION OF THE COUNCIL OF THE
CITY OF SAN LUIS OBISPO TO INCREASE THE DOWNTOWN 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
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
comers 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
3-y
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, constriction 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.
s
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ATTACHMENT
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:
L11 6�4
AudreyHo�per
City Clerk
APPROVED AS TO FORM:
Jona well
City Attorney
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ATTACHMENT 2
9 1108 Garden Street ■ Post Office Box 1402
Crty ofSan Luis Obispo, CA 93406
=44F;J&� San lues owspo I -
San Luis Obispo Phone: 805-541-0286 ■ Fax: 805-781-2647
Downtown Email: dcash@downtownslo.com
Association
April 4,2008
Notice of Downtown Association Restructuring and
Proposed Assessment Increase
Restructuring the Downtown Association. Over the past several months, we have been discussing
the benefits of the Downtown Association(DA)becoming an independent non-profit organization,
rather than continuing to function as an advisory body to the City Council. As recommended in the
DA Strategic Business Plan issued in October 2007, there are many benefits to both downtown
businesses and the City in restructuring the DA as an independent entity. Two key benefits are the
increased flexibility that this will provide to the DA in managing our day-to-day operations and in
advocating for our members.
On April 1,2008,the City Council approved this restructuring by amending the Municipal Code and
approving an Agreement for services with the newly-formed San Luis Obispo Downtown
Association(SLODA). The paperwork is'still in process with the IRS to formally create the SLODA
as a non-profit organization but it should be approved soon. The Agreement will become effective
once this paperwork is completed.
Stated simply, the Agreement provides for continuity in the operations of the DA. Under the
Agreement, the new SLODA agrees to continue providing the same services that the`old DA"
provides today to our members and the community; in exchange,the City agrees to pass-through all
of the assessments that it collects on our behalf. The Agreement is available in its entirety on our
web site for your review at www.downtownslo.com.
Meeting the Resource Needs of the New SLODA and Its Members. In achieving the full benefits
of independence;the DA Board requested that the City
Council also consider an increase in the current annual
assessments, which have not changed since 1975 when
the DA was formed.
Public Meeting
Based on this request,the City Council adopted the Receive public comments on the
enclosed Resolution of Intention to consider a proposed proposed assessment increase
increase in Downtown business assessments. As set forth May 6,2008, ha PM
City Council Chambers
in the Resolution, no action will be taken until there has 990 Palm Street
been adequate opportunity for Downtown businesses to
weigh-in with their support or concerns regarding the Public Hearing for Adoption
proposed increase. As outlined in the sidebar chart, two Consider written and oral protests
City Council meetings have been scheduled for this by business owners
purpose before taking any action on this proposal. May 20, 2008, 7:00 PM
City Council Chambers
Modest Increase in Assessments—Especially After 33 990 Palm Street
Years. The proposed increase will raise the annual
assessment by$5 per$100,000 of gross receipts: from
0.00050 of gross receipts (for example, $50 per$100,000 of gross receipts) to 0.00055(or$55 per
$100,000 of gross receipts),with an increase in the minimum assessment from$25 to $150. This
means that a downtown business with annual gross receipts of$500,000 will see a modest increase in
3 �7
ATTACHMENT 2
Downtown
their annual assessment of$25 per year—about$2 per month. If approved by the City Council on
May 20, 2008, the increased assessment will become effective with the 2008-09 renewals.
How much will the added assessment generate and how will the funds be used? We estimate
that the proposed assessments will generate $229,000 in 2008-09 compared with estimated revenues
from current assessment rates of$168,000 in 2007-08. To place this in perspective,the DA's current
budget is$519,000 annually. Of this amount, only about 30%comes from assessment revenues: the
balance comes from programs and activities of the Downtown Association designed to raise income.
The added assessment revenue will have two benefits: it will help stabilize SLODA operations and it
will provide funding for enhanced services, including seven-day-a-week private security and
increased promotional efforts.
It is important to note that all assessment revenues are restricted by ordinance solely for the benefit of
Downtown businesses.
Continued Collection of the Assessment by the City. The assessment will continue to be collected
by the City in the same manner that it today,with the City's business tax. Under the SLODA
Agreement,the City will remit to the SLODA all of the assessment revenue that it collects on a
monthly basis. There will be no charge to the SLODA for this service.
Assessment Increase Approval Process. As noted above, two City Council meetings have been
scheduled to take input on the proposed assessment increase. As set forth in Sections 36524 and
36525 of the Streets and Highways Code, the City Council has the ability to approve the increased
assessment at the public hearing scheduled for May 20, 2008, unless oral or written protests are
received from the owners of businesses in the DA area that will pay 50%or more of the proposed
assessments. In that event, the Council cannot consider another proposed increase for at least one
year.
Oral protests can be made at the May 20, 2008 public hearing. Written protests must be received by
the City at or before the public hearing and must include a sufficient description of the business to
identify the owner and assure that it is located in the assessment area. Written protests must be
submitted to the City Clerk, 990 Palm Street, San Luis Obispo, CA, 93401.
In considering the proposed assessment,the City Council may reduce but cannot increase it. If the
City Council approves an increase at the May 20, 2008 hearing, an ordinance amending the
assessment will be introduced at that time; and final City Council adoption of the ordinance will be
scheduled for June 3,2008. If the City Council approves final adoption at that time, the assessment
will become effective on July 3,2008 and will be collected with the 2008-09 business tax renewals in
July 2008.
Want More Information? Please call me at 541-0286 if you want more information regarding these
changes. I will be delighted to discuss their many benefits with you.
Sincerely,
Deborah Cash,Administrator
San Luis Obispo Downtown Association
3 ' �
ATTACHMENT 3
ORDINANCE NO. 1512 (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.
(- J ATTACHMENT 3
Ordinance No. 1512 (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;
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ATTACHMENT, 3
Ordinance No. 1512 (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.
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ATTACHMENT 3
Ordinance No. 1512 (2008 Series)
Page 4
INTRODUCED on the day of 2008, AND FINALLY
ADOPTED by the Council of the City of San Luis Obispo on the day of
2008, on the following Toll call vote:
AYES:
NOES:
ABSENT:
Mayor David F. Romero
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
Jonatha . Lowell, City Attorney
ATTACHMENT �
Chapter 12.36
DOWNTOWN PARKING AND BUSINESS UUPROVEMENT AREA
Sections:
12.36.010 Establishment.
12.36.020 Boundaries.
12.36.030 T-a*Assessment—Imposed.
12.36.040 Assessment—Amount.
12.36.050 Twi Assessment—Use of revenues.
12.36.060 Te*Assessment—Collection.
12.36.070 Findings and determinations.
12.36.080 Repealed. .
12.36.090 Council's authority to enter into annual agreements for revenue expenditures.
12.36.100 Exemptions—Contributions from exempt persons welcome.
12.36.110 [Repealed]
1236.010 Establishment.
There is hereby created and established the downtown parking and business improvement
area..(Pr-i8.GO& § 6 101(a))
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.
1236.030 T-&x 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 .
12.36.100 '.,-��de-§
6101{e))
ATTACHMENT
12.36.040 To*Assessment—Amount.
The amount of assessment addkienal tax to be paid by each business annually shall be one
hundred and ten percent 010% of the business lieense taxes levied upon the business by the
city, except that the minimum annual assessment shall be$150.OQ.
12.36.050 Assessment—Use of revenues.
The only uses for which the assessment ta*revenue from the area shall be expended area
A. The aAcquisition, 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;
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. Toe gGeneral promotion of retail trade activities in the area.
12.36.060 T-a*Assessment—Collection.
The collection of the assessment addifieaeA twk imposed in this chapter shall be made.at the
same time and in the same manner as any etheF the city's business heense tax.
12.36.070 Findings and determinations.
This council finds and determines that parking and other needs defieieneies are so general in
the downtown section of the city, and that the size of the new area is so small, that each
business in the area will benefit from expenditures for parking facilities substantially in
proportion to the amount of business taxes paid.
(Streets and Highways Code § 36062.)
4p ATTACHMENT.
13. A fiefpAnaliag eenwaittee of five Faember-s will be appointed by the exisga
th O-1:0..... ....h...a the W40-0-.. HEHF:..ees meeivin.the highest vete teWs f whish eleven
will be appointed to the beaf;d by the eetmeib :Ihe beffd's fifst er-der-ef business shall be-to
sueh ether-nafne as may be appr-eved by the My eetmeil. (OW. 1334 § 1,
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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. (n.ae.sede § 6
12.36.090 Exemptions—Contributions from exempt persons welcome.
Any business, person or institution in the area that whieh is exempt from the payment of the
business heense tax of the city by reason of the provisions of the United States or California
State Constitutions is not to be assessed taxed, but may make a voluntary contribution to the
city to be expended only for authorized expenditures of the area. (Piiersede ))
12.36.140 Vie:
.
3 -15—
STEPHEN MACIE ca Civil #28063, HI Structural #5974-S
**_******Specializing in Stractu=al Engineering********* 1 of 1
P.O.Sox 13410 1009 Morro St.Rm#201
San Luis Obispo, CA 93406 Fax & Ph: (805)541-3837
5/8/2008 RED FILE
MEETING AGENDA RECEIVED
City Clerk DATES ITEM #1�3
990 Palm St. MAY 12 2008
San Luis Obispo, CA 93401
SLO CITY CLERK
To the San Luis Obispo Mayor & Council Members
RE: Increase in Assessments per Downtown Association Restructuring
run a sole proprietor, one man engineering consultant business in the downtown area and
have since 1979. 1 feel compelled to write in protest concerning the proposed increase in
annual assessment for a downtown business as proposed in Resolution #9968.
The basis of my protest is not the added increase of $5 per $100,000 of gross receipts but the
very unfair increase in the minimum assessment from $25 to $150. Here is the reason I feel it
is very unfair:
My gross income is approximately $70,000 per year. My current assessment is .0005 x 70000
= $35 per year. With a minimum assessment of $150, my assessment increase will be
about 429% (or .2% of my gross). My benefit from being in the Downtown Business District is
negligible because I do not depend on walk-in traffic to enhance my business.
A business that has a gross income of $500,000 per year has an assessment of $250 per
year. With the $5 per $100,000 per increase, that business' increase will be $25 or 10% (or
.06% of their gross). The Downtown Business Association would benefit this type of business
that relies on foot traffic and luring tourists to our downtown area a lot more than it benefits my
business so I believe their fees should be, at least, equitable.
An increase in the minimum assessment of $50 per year for businesses that make less than
$100,000 per year seems more in line with the concept of fairness. A graduated scale for the
type of business should also be considered, such as a lesser fee for office use or professional
consulting and a greater fee for retail business.
kS COUNCI JHR
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Thank you for your attention to this matter. cAo IN DIR
ACRO IRE CHIEF
Your truly, VATTORNEY W DIR
4&CLERK/ORIG OLICE CHF
11 DEPT HEADS EQ DIR
P.o? DIR
IZ/R• DIR
phe Macie, .E. Coivri
1007 Morro St. #201
San Luis Obispo, CA ;� C ,G
=RECEIVEDRED FILE BONNIE WOLFE, PH.D. M I G AGENDA
Licensed Psychologist PSY5639 DATE ITEM #
531 Marsh Street, Suite B
San Luis Obispo CA 93401
805.534.9666 (phone and FAQ
May 12, 2008
City Clerk
990 Palm Street
San Luis Obispo CA 93401
Dear City Council Members:
I am a licensed psychologist providing services at the address listed above. I am writing
regarding the recent proposed increased assessment for the Downtown Business Association area.
I strongly object to the proposed increase, which would mean that my assessment would be
more than triple the existing rate. I am the sole proprietor of a small business with limited
receipts. This large rate of increase represents a burden to me.
Furthermore,I receive little or no benefit from the activities these revenues are used to
fund -- Farmers'Market,nighttime and other public events,approved music,decoration of public
places,and 'general promotion of retail trade activities." I provide professional services by
referral only, do not serve walk-in clients,and do not offer any retail trade.
The only services the Association provides which might possibly benefit my business are
those that 'work toward the beautification"of the downtown area. I learned today from the
Association that this consists of 'extra"services (additional to those already provided by taxes
paid to the City of San Luis Obispo)--specifically, "volunteer tree trimmers" and paid workers who
do'extra" power cleaning of the sidewalks--apparently during the night,since I have never seen
them,nor any indication of their activity.
In other locales,activities such as these are often provided by organizations with voluntary
memberships,such as a Chamber of Commerce or Visitors' Association. I urge you to include an
opt-out provision or exception for businesses such as mine,so that we do not pay a mandatory
assessment for activities from which we do not benefit.
Cb.L[NaL r'CDD DIR Respectfully,
CAO ,2TIN DIR
ACAO 2-FIRE CHIEF
ATTORNEY .LVPW DIR
)ZCLERK/ORIG POLICE CHF Bonnie Wolfe,4.
❑ D T DS 5-FIEC DIR
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MAGUIRE &c ASHBAUGH
ATTORNEYS AT LAW TELEPHONE
991 OSOS STREETSUITE A 805) 541-5715
,
JAMES B. MAGUIRE III X
PATRICIA NEMEC ASHBAUGH SAN LUIS OBISPO,CALIFORNIA 93401 05) 541-3064
ERECEINIED
2008
OUNCIL
LL
May 19, 2008 CC . ��
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Mayor David Romero /-f,b b?EYL
San Luis Obispo City Council
990 Palm Street
San Luis Obispo, CA 93401
RE: Downtown Association Restructuring and Proposed Assessment Increase
Public Hearing: May 20, 2008 at 7:00 p.m.
Dear Mayor Romero:
This letter is in response to the notice dated April 4, 2008 regarding an increase in the
Downtown Association Assessment Fees.
We recognize the rising costs and the difficult economic times that we are all facing. It is a
great concern to our business that an increase is being proposed that will affect all downtown
businesses, not just the retailers. It is indicated in the resolution, § 3, these assessments are to be
used exclusively for five activities. As a law business situated in the Andrew's Building on the
second floor, we acknowledge that we may benefit indirectly from activities one and two, which
would be the acquisition, construction or maintenance of parking facilities, and the decoration of any
public place in the area. However, with respect to the other three goals, they clearly have no benefit
to a business like ours.
It is our position that this is an unfair assessment, which disproportionately favors some
downtown businesses over others. It would be our suggestion that a two-tiered assessment be
considered by the city council. The first would be applicable to retailers and those who benefit from
all the activities described in the ordinance. A second and reduced fee would be applied to the other
business owners that clearly do not benefit either directly or indirectly from these activities.
Mayor Romero
May 19, 2008
Page 22
While all of us working in the downtown enjoy the benefits of our beautiful city and the
general pleasant working conditions that derive from it, it is clear that the Downtown Business
Association is an organization that derives it strength and focus from the downtown realtors. These
realtors who are benefitting from the organization, should support it to the extent that they feel is
appropriate. Let us not drive out the other businesses to the outlying areas and thereby increase
traffic, parking and congestion by commuting in to do business at the governmental centers.
Very truly yours,
Z::
C ASHBAUGH
JAMES B. MAGUIRE III
PNA:aga