Loading...
HomeMy WebLinkAboutED Repeal Downtown Parking and Business Improvements AreaCITY of Agenda Item No. ° Meeting Date. May 20, 2013 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Stephanie Lovette, Managers City Manager Approval: ' ' SUBJECT: CONSIDERATION OF AN ORDINANCE REPEALING SAN RAFAEL MUNICIPAL CODE CHAPTER 10.08 ENTITLED "DOWNTOWN PARKING AND BUSINESS IMPROVEMENTS AREA" AND ADDING A NEW CHAPTER 10.09 ENTITLED "DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT." RECOMMENDATION: Conduct a public hearing and pass to print an ordinance repealing San Rafael Municipal Code Chapter 10.08 entitled "Downtown Parking and Business Improvements Area" and adding a new Chapter 10.09 entitled "Downtown San Rafael Business Improvement District." BACKGROUND: On March 13, 2013, the City Council adopted resolution No. 13519 declaring City Council's intention to amend the existing Downtown Parking and Business Improvements District. A copy of the resolution and a Notice of a Public Meeting and Public Hearing were mailed to 704 business license holders on record with the city in the proposed area. The City Council conducted a public meeting on May 6, 2013. Eighteen people presented testimony to the City Council. Ten people spoke in favor of the proposal. Two speakers from Art Works Downtown requested the assessment for fine artists be reduced. Four speakers were West End Business owners; one spoke in favor, one supported the concept with specific performance measures and two were opposed to the proposal. Four people spoke against the proposal; two of those speakers did not own businesses or property in San Rafael. ANALYSIS: A public hearing must be held on the proposed changes to the District and the levying of an assessment. At this hearing, City Council must hear all protests. Protests may be made orally or in writing, but only written protests from businesses in the proposed District will be counted in determining if the District should be amended. Written protests may be filed with the City Clerk or delivered at the public hearing. Written protests can be withdrawn in writing prior to the conclusion of the public hearing. If written protests are received from businesses that will pay 50 percent or more of the assessments, the BID will not be amended. If the majority protest is against a specific element of the proposal, those elements can be eliminated or amended and the overall amendment approved. This protest vote procedure and threshold is required by the CA Streets and Highways Code Section 36501 for this type of business improvement district, where the business owner, not the property owner, is paying the assessment. At the conclusion of the public hearing, the City Clerk will tabulate all written protests. The hearing may be continued to a later part of the agenda for this meeting or to a date certain to accommodate the tabulation. If no majority protest exists, City Council may make any desired revisions in the boundaries, activities, or proposed assessments, but may not increase the boundaries or assessment fees, and adopt the first reading of the ordinance. FOR CITY CLERK ONLY File No.: 2 L, City Council Meeting: t-2. Disposition: i e -rCea /9/.) SAN RAFAEL CITY COUNCIL AGENDA REPORT /Pme:2 In the period of time between this hearing and the mailing of the Notice of Intention, the 0D and staff have been doing extensive public outreach. As e result, several adjustment and improvements bzthe proposal have been identified. These are adjustments which are permitted hobemade during the review period. The first adjustment iainthe fee for personal services. The fee schedule iabased onthe premise that personal services (hair and nail solons, spas) are typically located on the ground floor, like retail stores. Hovvever, epus, massage and body work facilities are also located on upper floors. Staff would propose that the category "Personal Services, not on Ground Floor" be added to the Office. Professional fee of $75inStandard and $1O0inPremium. Artists are currently included inthe Office category. The BID has requested that fine artists be assessed at $50.00 per year, which iethe same rate as non-profit organizations. Since fine artists rarely have revenues that exceed their expenses charging the same fee would be more equitable. Commercial and graphic artists would continue to be included in the professional category. With these changes, the fee schedule would be as follows: Downtown San Rafael Business Improvement District Annual Assessment Formula FISCAL IMPACT: Amendments to the BID will have nodirect impact nn the City budget. The BID assessment is a funding mechanism that generates funds that must be expended on the activities of the B|(]. To the extent that the 8U] activities enhance the area and its business o|imabe, the area will generate increased sales tax revenue. Administration ofBID related actions, such asthe assessment billings and annual nanevva|o and processing of the annual assessment levy will require some ongoing staff time from Economic Development and the Finance Departments. OPTIONS: 1. Determine that less than a 50Y6 protest was filed and adopt the Ordinance as proposed or with modifications; 2. Continue the meeting to determine the amount of protest and/or for response to City Council concerns and comments; 3. Deny the proposed amendment. ACTION REQUIRED: 1. Open the public hearing and accept public teatimony� 2, Close the Public hearing; 3. Upon tabulation of written protests and determination that protests represent less than 5096 of total proposed assessment, pass the ordinance tnprint with the recommended changes. ATTACHMENTS: AttechmentA� Ordinance Annual Assessment Type mfBusiness Standard Premium Retail, Restaurant, Personal Services onthe ground floor, $175 $225 Financial Institutions Office, Professional, Personal Services not onGround Floor $75 $100 Personal Services Sole Practitioner $50 $75 Non -Profit Organization and Fine Artists $50 $50 FISCAL IMPACT: Amendments to the BID will have nodirect impact nn the City budget. The BID assessment is a funding mechanism that generates funds that must be expended on the activities of the B|(]. To the extent that the 8U] activities enhance the area and its business o|imabe, the area will generate increased sales tax revenue. Administration ofBID related actions, such asthe assessment billings and annual nanevva|o and processing of the annual assessment levy will require some ongoing staff time from Economic Development and the Finance Departments. OPTIONS: 1. Determine that less than a 50Y6 protest was filed and adopt the Ordinance as proposed or with modifications; 2. Continue the meeting to determine the amount of protest and/or for response to City Council concerns and comments; 3. Deny the proposed amendment. ACTION REQUIRED: 1. Open the public hearing and accept public teatimony� 2, Close the Public hearing; 3. Upon tabulation of written protests and determination that protests represent less than 5096 of total proposed assessment, pass the ordinance tnprint with the recommended changes. ATTACHMENTS: AttechmentA� Ordinance ORDINANCE NO. 1912 CONSIDERATION OF AN ORDINANCE REPEALING SAN RAFAEL MUNICIPAL CODE CHAPTER 10.08 ENTITLED "DOWNTOWN PARKING AND BUSINESS IMPROVEMENTS AREA" AND ADDING A NEW CHAPTER 10.09 ENTITLED "DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT." WHEREAS, pursuant to Section 36500 et seq. of the California Streets and Highways Code (the "Act") the City Council on March 18, 2013 adopted Resolution No. 13519 entitled "Resolution of the San Rafael City Council Declaring Council's Intention to Amend the Existing Downtown Parking and Business Improvements Area and Levy an Assessment" which declared its intention to amend the "Downtown Parking and Business Improvements Area" by changing the name to "Downtown San Rafael Business Improvement District" (the "BID"); expanding the existing area boundaries; changing the activities for which the assessment will be used; including all businesses except residential uses and home occupations in the District; and changing the assessment to a flat fee by type of business in two zones of benefit; and WHEREAS, pursuant to the Act and the Resolution, City conducted a public meeting, after having given due notice thereof as required by law, on May 6, 2013 in the Council Chambers at 1400 Fifth Avenue, San Rafael, California. At said public meeting the City Council received public testimony regarding the proposed amendment of the BID; and WHEREAS, pursuant to the Act and the Resolution, City conducted a public hearing, after having given due notice thereof as required by law, on May 20, 2013 in the Council Chambers at 1400 Fifth Avenue, San Rafael, California. At said public hearing the City Council received and considered all oral and written protests regarding the proposed amendment of the BID, and determined at the conclusion of the hearing that written protests from businesses in the proposed BID that would pay 50 percent or more of the proposed assessment were not received and there was no majority protest within the meaning of the Act; and WHEREAS, the public interest, convenience and necessity require the amendment of the proposed BID, and the businesses within the BID will be benefited by the expenditure of the funds raised by the assessments levied hereby in the manner prescribed herein; and WHEREAS, Council may, for each of the purposes set forth in Section 36510 and 36513 of the Act, establish one or more separate benefit zones based upon the degree of benefit derived from the formation of the BID and may impose a tiered assessment within each of the benefit zones, and all provisions of the Act applicable to the establishment, modification, or disestablishment of the BID shall apply to the establishment, modification, or disestablishment of benefit zones; and WHEREAS, businesses in the BID shall be subject to any amendments to the BID's boundaries, amounts of assessments, improvements, or activities subject to the requirements of the Act. For the purpose of establishing assessments in the BID, 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 BID activities. Assessments levied on businesses pursuant to this Ordinance shall, to the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses within the BID. NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1: FINDINGS The City Council finds that the public interest, convenience and necessity require the amendment of the proposed BID, and the businesses within the BID will be benefited by the expenditure of the funds raised by the assessments levied hereby in the manner prescribed herein. DIVISION 2. REPEAL OF CHAPTER 10.08 Chapter 10.08 Downtown Parking and Business Improvements Area is hereby repealed. DIVISION 3. NEW CHAPTER 10.09 Chapter 10.09 Downtown San Rafael Business Improvement District is added to the San Rafael Municipal Code as follows: Chapter 10.09 Downtown San Rafael Business Improvement District Sections: 10.09.010 - Purpose 10.09.020 - Definitions 10.09.030 - Establishment of District 10.09.040 - Boundaries of District and Benefit Zones 10.09.050 - Calculation of Assessment 10.09.060 - Use of Revenue 10.09.070 - Collection of Assessments 10.09.080 - Advisory Board and Annual Report 10.09.090 - Assessments Do Not Offset City Services 10.09.100 — Boundary and Assessment Modifications 10.09.010 - Purpose. The purpose of this Chapter is to authorize the City to impose assessments on businesses within a parking and business improvement area which are in addition to any assessments, fees, charges, or taxes imposed in the City, and to use such proceeds for the benefit of businesses within such area. 10.09.020 - Definitions. For the purposes of this Chapter and for identifying businesses in the Downtown San Rafael Business Improvement District and for calculating and applying the assessments owed, the following definitions shall apply: A. "Financial Institutions" - Banks (retail and full service), savings and loans, credit unions as allowed in the underlying Zoning District. B. "Non -Profit Organizations" - Organizations registered as a non-profit corporation with the State of California and fine artists. C. "Fine Artists"- Artists that produce art that is intended primarily for beauty rather than utility or commercial purposes, D. "Offices" - Businesses providing administrative or business services such as company headquarters, employment agencies, management services as allowed in the underlying Zoning District. E. "Personal Services" - Businesses that sell services such as hair salons, nail salons and day spas as allowed in the underlying Zoning District, and may combine some retail sales with product services, and may be associated with sole practitioners. F. Personal Services, not on Ground Floor- Personal service businesses that are not located on the ground floor of a building and do not have a retail presence on the street. G. "Personal Services Sole Practitioner" - Businesses that are sole practitioners in personal services businesses, including barbershop chairs, manicurists chairs, beauty shop chairs and miscellaneous personal care chairs. H. "Professionals - Businesses that require advanced and/or specialized licenses and/or advanced academic degrees, such as architects, engineers, attorneys, accountants, therapists, counselors, realtors, mortgage brokers as allowed in the underlying Zoning District. Professionals working as sole practitioners are in this category. I. "Restaurant" - Businesses that sell prepared foods and drinks as allowed in the underlying Zoning District. J. "Retail" - Businesses that buy and sell goods, such as clothing stores, shoe stores, office supplies as allowed in the underlying Zoning District. 10.09.030 - District Established. Pursuant to the provisions of Streets and Highways Code Section 36501 et seq., a Parking and Business Improvement District is hereby established, named "Downtown San Rafael Business Improvement District" (the "BID"). 10.09.040 - Boundaries of District and Benefit Zones The Parking and Business Improvement Area created herein includes businesses situated within the boundaries described as follows: Those businesses situated on parcels fronting on the north side of Fourth Street from Second Street to E Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 010-291-57, 35, 34, 33, 49, 69; 011-192-18, 08, 07; 011-194-11, 13, 08, 07; 011-196-12, 11, 10, 09, 08, 07; 011-202-13, 12, 11, 14-, those businesses situated on parcels bound by Fourth Street, Second Street and Ida Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-231-24, 25, 03, 04, 05, 06, 21, 17, 16; those businesses situated on parcels fronting on the south side of Fourth Street from Ida Street to E Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-232-01, 02, 03; 011-241-01, 30, 31, 32, 33; 011-242-01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11: 011-245-26; those businesses situated on parcels bound by E Street, Hetherton Street, Fifth Avenue and Third Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-204-01, 16, 15, 14, 13, 17, 09, 08, 20, 18, 19; 011-205-01, 15, 14, 13, 12, 11, 10, 09, 08, 16, 05, 04, 17; 011-212-15, 14, 16, 11, 06, 05, 04, 03; 011-214-10; 011-215-01, 02, 04, 05; 011-216-01; 0 11-222-08, 05; 011-224-01, 18, 17, 20, 15, 14, 13, 12, 11, 10, 19, 08, 06, 05, 04, 03, 02, 21; 011-227-01, 08, 07, 06, 05, 04, 10, 09, 02; 011-251-01, 13, 12, 11, 10, 09, 08, 07, 06, 05, 04, 03, 02; 011-253-01, 09, 08, 07, 06, 11, 10, 04, 03, 02; 011-255-27, 15, 14, 13, 18, 10, 29, 33, 19, 20, 07, 31, 30, 32, 23, 28, 03; 011-261-01, 13, 12, 20, 26, 29, 30, 17, 31; 011- 263-20, 21, 02, 19, 04, 16, 22, 13, 11, 10, 09, 08, 07, 06, 05, 02; 011-271-01, 16, 15, 14, 13, 12, 11, 17, 07, 06, 05, 04, 03, 02, 01; 011-273-01, 17, 18, 12, 11, 10, 09, 08, 24, 06, 05, 04, 23, 02; 011-275-01, 12, 11, 10, 09, 13, 05, 04, 03, 02; 011-277-01; 014-084-13, 14, 02; 014-121-14; those businesses situated on parcels fronting on B Street from Third Street to Second Street, more particularly assessor's parcels as shown on the 2012 Assessor's Maps as follows: 011-256- 26, 07, 08, 09, 32, 12; 011-262-01, 21, 22, 16, 15, 14, 23. The Standard Benefit Zone is that portion of the Downtown San Rafael Business Improvement District located to the west of E Street, that portion to the east of Lincoln Avenue, and that portion fronting on B Street from Third to Second Street. The Premium Benefit Zone is the remainder of the Downtown San Rafael Business Improvement District; specifically that portion located to the east of E Street and west of Lincoln Avenue, between Fifth Avenues and Third Street. Said area zones are reflected on a graphic, Exhibit A, attached to the ordinance codified in this chapter and incorporated in this chapter by reference. 10.09.050 — Calculation of Assessments. All businesses in the BID shall, commencing on January 1, 2014 pay an annual benefit assessment to the BID in the amounts shown in Table 10.09.050-1. Table 10.09.050-1 Annual Assessment Type of Business Standard Premium Retail, Restaurant, Personal Services on Ground Floor, $175 $225 Financial Institution Offices, Professional, Personal Services, not on Ground $75 $100 Floor Personal Services Sole Practitioner $50 $75 Non -Profit Organization and fine artists $50 $50 No person or business shall be required to pay an assessment for residential uses, residential businesses or home occupations. Any new business in the BID shall be required to pay a pro -rata share of the annual assessment. Any business outside the BID may voluntarily pay the Standard Zone Assessment. 10.09.060 - Use of Revenue. The revenues derived from the assessments shall be used for the purposes as stated in Streets and Highways Code Section 36501 et seq. for the specific benefit of assessed businesses which may include: A. General promotion of businesses activities which provide a specific benefit to assessed businesses within the BID; B. Promotion of public events which provide a specific benefit to assessed businesses within the BID and which take place on or in public places within the BID; C. The acquisition, construction, installation and maintenance of any tangible property including but not limited to benches, trash receptacles, decorations and landscaping which provide a specific benefit to assessed businesses within the BID; D. Activities which provide a specific benefit to assessed businesses located and operating in the BID. 10.09.070 — Collection of Assessments. The benefit assessment shall be billed annually by the City in conjunction with the City's annual business license. Any business exempt from paying City business license fees shall be assessed in January of each year. All assessments collected shall be held in a separate account and expended in accordance with this chapter and any subsequent resolutions and funds management agreement. 10.09.080 — Advisory Board and Annual Report. The City Council shall appoint an Advisory Board pursuant to Streets and Highways Code Section 36501 et seq. to administer the affairs of the BID. Members of the Advisory Board must own or represent a business in the BID, or be a voluntary member. The Advisory Board shall prepare an annual report for each year for which assessments are to be levied. The report shall be filed with the City Clerk and shall comply with all requirements as stated in Streets and Highways Code Section 36501 et seq. 10.09.090 — District Proceeds Do Not Offset City Services. Funds derived from the BID assessments shall not be used to offset or diminish current maintenance or capital improvement programs, including but not limited to public property and sidewalk cleaning and maintenance, street cleaning and maintenance, tree maintenance 10.09.100 — Boundary and Assessment Modifications The City Council may, at the Advisory Board's recommendation, modify the boundaries or assessments. Such modifications shall be made pursuant to the requirements of Streets and Highways Code Section 36501 et seq. DIVISION 4: SEVERABILITY If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid. DIVISION 5: PUBLICATION This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California. GARY O. PI -141,1 -,IPS, Mayor ATTEST: FSTHER C. BEIRNE, City Clerk The foregoing Ordinance No. 1912 was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, California, held on the 20'h day of May, 2013 and ordered passed to print by the following vote, to wit: AYES: Councilmembers: Colin, Connolly, Heller, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on June 3, 2013. ESTHER C. BEIRNE, City Clerk UR IN IN :r, !a .:�\����d��\�����d\��. BE 11 I a - RESOLUTION NO. 13519 RESOLUTION OFTHE SAN RAFAEL CITY COUNCIL DECLARING COUNCIL'S INTENTIONTO AMENDTHE EXISTING DOWNTOWN PARKING AND BUSINESS IMPROVEMENTS AREA AND LEVY AN ASSESSMENT WHEREAS. the Caddomia Sheets and Highways Code Sector, 36500 el seq. auMdRAs cities to ting aslabish parand besiness improvement a as for me purpose of promoting eeaddahc revitalization and physical aa+ntenance of business distnds in ortler io create jobs, attract naw t II,esaes and teeeahl arosim 11 busir+ess iatdma, and WHEREAS, the existing San Rafael Business Imprwement District has requested the City Council to amentl the existing Parking ah l Business Impmvamaots Area+nstnW,d in 1979le the comms A area on and a hdl Fourth Street in San Rafael, NOW THEREFORE BE 1T RESOLVED by the City CoomA of the City of San Rafael as tohowr Section t The City Council does, of the request d the existing San Ratael Business Imprwemeni Dweel, and pursuant to the Cafitorr+ia Streets and Highways Code Section 365+X1 al, setl., declare its intention fi amentl the axislirg'Downlown Parking and Business Improvements Area" by changing the name to 'D—o­San Refaei Business Improvement District" (Me "BID'}; expanding the exisur, area boundaries: changing the-tedhes o which the assessmanl wdi be used; ehck+d+r+g ail Fxiisineasax except residarial ossa and home occupaam, in me District and changing iha assessmor to a flat fee by type of business in two zones of be ,,JiL 5eebm 2. The bounda,iee o1 the entire ams b be ihduded In the BID, and the boonda+les of each saparzte benefit zone w11h, h the BID, are Aid form in the map and boundary dascdptlm, Exhibit A, A -to d hereto and mco+poramd heroin by referenw, A map of the 810 is m hie with the City Cork. Sector 3. The types of ImPiovements and acbvites preposad le bo funded by the Ievy of asses haeos m heia'aaaI, the BIO are in Exhibit B attached hereto Intl incorporaiad herein by mfarence. Section 4. The City Count intends to levy an amoal bamfit assessment m Wu aaes in the BID, except where hinds are otherwise availada, to pay for s,I,,hd dr,r ma and activities of the BID So,— S. AN food, of the BID aha& he expanded m aepr,, amerts and act,daa within the BIO. Section 6. The method and the basis for levying the beneflt assessment on businessaa within the BID are sat ,_,,a, orthin Exhibit C afeo#red hent, end Mdd pdoA d herein by III,—: Section 7 New ch.msaaa shall hot be exempt tmm payment n1 the fee. Section 8. A pobkc meeting for the purpose of showing pubic t -ho, rry on the proposal to amend the BID shah be how before the City Gounp+l m May 6, 2013, at 7 pm, in the Council Chambers, 1400 Fifth Avenue, San Rafaol. California, Ai the pubic meeting the testimony o1 all interested par , to, or against the amendment of the BID or of any of the maters induded m the amendment, win be heard, Sectim 9. A public hearing to amend the BIO shah be hold before the City Council m May 20, 2013, al 7 p.m. in the Council Chambers1400 Fifth Avenue, San Rafael. California. At the public hearing the kstimerry of IN intaresid eBarsms. fo, oh against the amendment 0 the BID or of any o the ..ta,a included in the amendment, will be heed and Iii protest colectad. Sectim 10, A protest against the amerximeni I the BID, or any aspect at the amondmer may the made ..By o< 11 writing. To ba cw ,t,d as a part of a malonty prolast ag.,n the amooddIrl of the BID, a protest must he o writ ng and tram a ch—-, the BID A wrltan protest may be wdharawn Irom record at any lime baton :he conduson al the pooic hashing. Each wuften Protest ahaM cmfain a wean descnp of the Mlsi,+ess io ,,heoh the parse, signing =Jia protest is intemsled, soffident b identify to, business, and ns address It the person s,g_g the protost is not shown on the otiaal record, of the City of San Rafael as the owner of the business. !hen the protest shah contain or be accompo—ol by written evidence that the persm is the owner of the W sioass, Any wnten Mi—I., o as regularity o "If"ancy of the pracoedings shah he in writing and clearly state the irregdaely o+ defect la which cbl 11 is made, Section it, it at the conclusim of the Pulilic hearing mere are of retard whiten prod- by businesses w�min me BID that will pay idly portent (50%) or mora o1 me total aasesaments of the arae, 810. m former pmcae,kngs to amentl the BID shah occur. New proceedings to amend the BID shah not be undertaken Again (o, a period of al least ono year from the dale of mo finding of the majerity written protest by the Dry C. -ea. IId,. majority whiten protest is against a Nook a ,ey,, indusinn of a spetiM1c area or lype of business. or a apecfit assessment amount. adjustments may be made to the amendment proposal. Sectim 12. Further infod atm regarding me proposed Downtown San Rafael Business Improvement District may bo obtained from the +ince of E,-, 0evalopmeet at 1313 Fifth Avenue. San Rafael, CA 94901; by telephone from the Office of Economic Development at 485-3326', o, email at SRdowntawn 4yciryolsanralaeLorg. Section 13. The City Clerk is directed to give notice of said dove, hearing by causing this Readutm of Intention to be pubbshed once in a newspaper of ge+xtal CIMIAIaon le the City of San Rafaet. at least seven say, ba c. the hearing; and by mailing a complete copy of mis Resolut,w of Intention to each business owner in the Doi_ within seven flays of the adopter, d mis Resolution by the City Council, I. ESTHER C. BEIRNE. Clark of the City of San Rafael, hereby certify that me foregoing Ren sdubewas duty and regularly Introduced Intl adopted of a ragda, meeting of the City Council 01 the City of San Rafael, held an Monday, the ISIh day d Match, 2013, by the toicA119 vote. to wit. AYES. Gounaimembe+s: Coin, Connahy, Heiler, McCdbugh 8 Mayo, Philip, NOESCounalme,o1daa Nana t ABSENT: Cooncilmembers'. Nwie ESTHER C. BEIRNE, City Clerk �c VIAMNA LE__ EXHIBIT B Downtown San Rafael Business Improvement District Use of Assessment Revenue The is s derived tram the aeseaamera shah be used for the purpose A, stated in Streets and Highway, Code SeerM 36501 at aeq, Mme spec benefit of assessed businesses which may include: A. Gnnarai promotion of 6usinessoa activifias which provide a specific benefit to assessed Ix:sinessos within the BIO. _. Promotion of public events which provide a specific benebt to assessed bo—esaaa within the BIG and wK,h take place in pudic ptaces wtnm the BID, The acquisition,—atruwe- too flation a<n mII..nca o" ar>y iang:be prcpeny enc(-.iding til not ho,"ad ,,benches. trash recspiades, detest>= and he,%oi Wng whicF Pravda a xpe��iit benefit to as_esead businesses wilh+n the 810'. D. A.,"!.+ss w- pr ov a s101c aenefiv. assessed busines©es wdhm the BIG EXHIBIT C Downtown San Rafael Business Improvement District Annual Assessment Formula Annual Asaesemant Type of Business <tandorS Prom s�i#. pas aurani, Par w Sers+-wa.-.nan"1EnatiMrua S17E 5225 Om -s, FroFsssmets 57S SIM rorson z censc,a: SWe Prac:itrcxree $GG Els No p—, Organ+zah_ 150 $51, 0 PROOF O.K. BY: E3 O.K. 481TH CORRECTIONS BY: 1 PLFASE READ C.ARFEL-LIN • St'RMIT CORRECTIONS ONIA NE IJ -0004852093-01,I VDD (92.8%) ADVERTISER: SAX RAFAEL PROOF CREATED AT: 518120136:31 AN1 SALES PERSON: Donna Lazarus NEX'Y RUN DATE: 05714113 SIZE: 5 X 15 PROOF OFF: 415109/13 22:24:55 PUBLICATION: 13 -Marin 0 ** PUBLIC HEARING - MAY 20,_2013 ** RESOLUTION NO. 13519 RESOLUTION OF THE SAN RAFAEL CITY COUNCIL DECLARING COUNCIL'S INTENTION TO AMEND THE EXISTING DOWNTOWN PARKING AND BUSINESS IMPROVEMENTS AREA AND LEVY AN ASSESSMENT WHEREAS, the California Streets and Highways Code Section 36500 et seq. authorizes cities to establish parking and business improvement areas for the purpose of promoting economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses and prevent erosion of business districts; and WHEREAS, the existing San Rafael Business Improvement District has requested the City Council to amend the existing Parking and Business Improvements Area instituted in 1979 in the commercial area on and around Fourth Street in San Rafael. NOW THEREFORE BE IT RESOLVED by the City Council of the City of San Rafael as follows: Section 1. The City Council does, at the request of the existing San Rafael Business Improvement District, and pursuant to the California Streets and Highways Code Section 36500 et. seq., declare its intention to amend the existing "Downtown Parking and Business Improvements Area" by changing the name to "Downtown San Rafael Business Improvement District" (the `BID"); expanding the existing area boundaries; changing the activities to which the assessment will be used; including all businesses except residential uses and home occupations in the District; and changing the assessment to a flat fee by type of business in two zones of benefit. Section 2. The boundaries of the entire area to be included in the BID, and the boundaries of each separate benefit zone within the BID, are set forth in the map and boundary description, Exhibit A, attached hereto and incorporated herein by reference. A map of the BID is on file with the City Clerk. Section 3. The types of improvements and activities proposed to be funded by the levy of assessments on business in the BID are in Exhibit B attached hereto and incorporated herein by reference. Section q. The City Council intends to levy an annual benefit assessment on businesses in the BID, except where funds are otherwise available, to pay for selected improvements and activities of the BID. Section 5. All funds of the BID shall be expended on improvements and activities within the BID. Section 6. The method and the basis for levying the benefit assessment on businesses within the BID are set forth in Exhibit C attached hereto and incorporated herein by reference. Section 7. New businesses shall not be exempt from payment of the fee. Section 8. A public meeting for the purpose of allowing public testimony on the proposal to amend the BID shall be held before the City Council on May 6, 2013, at 7 p.m. in the Council Chambers, 1400 Fifth Avenue, San Rafael, California. At the public meeting the testimony of all interested persons, for or against the amendment of the BID or of any of the matters included in the amendment, will be heard. Section 9. A public hearing to amend the BID shall be held before the City Council on May 20, 2013, at 7 p.m. in the Council Chambers, 1400 Fifth Avenue, San Rafael, California. At the public hearing the testimony of all interested persons, for or against the amendment of the BID or of any of the matters included in the amendment, will be heard and all protest collected. Section 10. A protest against the amendment of the BID, or any aspect of the amendment may be made orally or in writing. To be counted as a part of a majority protest against the amendment of the BID, a protest must be in writing and from a business in the BID. A written protest may be withdrawn from record at any time before the conclusion of the public hearing. Each written protest shall contain a written description of the business in which the person signing the protest is interested, sufficient to identify the business, and its address. If the person signing the protest is not shown on the official records of the City of San Rafael as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. Any written protest as to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. Section 11. If at the conclusion of the public hearing there are of record written protests by businesses owners within the BID that will pay fifty percent (50%) or more of the total assessments of the entire BID, no further proceedings to amend the BID shall occur. New proceedings to amend the BID shall not be undertaken again for a period of at least one year from the date of the finding of the majority written protest by the City Council. If the majority written protest is against a specific activity, inclusion of a specific area or type of business, or a specific assessment amount, adjustments may be made to the amendment proposal. Section 12. Further information regarding the proposed Downtown San Rafael Business Improvement District may be obtained from the Office of Economic Development at 1313 Fifth Avenue, San Rafael, CA 94901; by telephone from the Office of Economic Development at 485- 3326; or email at SRdowntown.e ``cityofsanrafael.org. Section 13. The City Clerk is directed to give notice of said public hearing by causing this Resolution of Intention to be published once in a newspaper of general circulation in the City of San Rafael, at least seven days before the hearing; and by mailing a complete copy of this Resolution of Intention to each business owner in the District within seven days of the adoption of this Resolution by the City Council. 1, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 18th day of March, 2013, by the following vote, to wit: AYES: Councilmembers: Colin, Connolly, Heller, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None ESTHER C. BEIRNE, City Clerk Em F. 11 R-1 Downtown San Rafael Business Improvement District Use of Assessment Revenue The revenues derived from the assessments shall be used for the purposes as stated in Streets and Highways Code Section 36501 et seq. for the specific benefit of assessed businesses which may include: A. General promotion of businesses activities which provide a specific benefit to assessed businesses within the BID; B. Promotion of public events which provide a specific benefit to assessed businesses within the BID and which take place in public places within the BID; C. The acquisition, construction, installation and maintenance of any tangible property including but not limited to benches, trash receptacles, decorations and landscaping which provide a specific benefit to assessed businesses within the BID; D. Activities which provide a specific benefit to assessed businesses within the BID. EXHIBIT C Downtown San Rafael Business Improvement District Annual Assessment Formula Annual Assessment Type of Business Standard Premium Retail, Restaurant, Personal Services, Financial Institutions $175 $225 Offices, Professionals $75 $100 Personal Services Sole Practitioner $50 $75 Non -Profit Organization $50 $50 Tel: 415-720-5591 Fax 415-454-7039 110 Box 1>1050 San Rafael, CA 94915-1050 May 14, 2013 Stephanie Lovette Economic Development Manager City of San Rafael 1400 Fifth Street San Rafael, CA 94901 Re: Classification of Artists in The BID In the proposed schedule of assessments for the BID, an individual category of "artist" does not currently exist. Our understanding is that under the current schedule they would be classified as a "Sole Practitioner" and subject to an assessment of $75 if located in the "premium" area, and $50 if located in the "Standard" area. Upon hearing the concerns from artists located downtown and recognizing that the nature of their business and revenue cycles is generally different from other for-profit business entities, as well as acknowledging the cultural contribution by artists to our downtown, the board recommends that a new category be created for Fine Artist, and the assessment be equal to the proposed $50 fee for Nonprofit Organizations. Consistent with all other business owners who choose to locate in Downtown, we believe it is reasonable to include Fine Artists in the assessment district, as they too benefit from a vibrant downtown economy and may, in fact, reap direct benefit if a greater number of patrons are drawn into downtown on a regular basis-- a stated objective of the BID. Sincerely, r-; Carol Thompson Executive Director � 1 4 wFLYNN IWI LLIAMS 11 RILEY..w BRIAN C. PEDERSEN SAN RAFAEL €010 B Street, Suite 200, San Ravel, CA 94901 Tel (415)461-1000 fw la .c€ m bpedersen@fwrlav:.c©nl MAILNUT CREEK Tel (925)472-6660 CAMPBELL Tel (408)879-2662 SA 1 FRANCISCO Tel (415)461-1000 FrOLSOM Tel (916)357-6640 PARTNERS Michael J. Flynn, Scott Williams, Richard R Riley, Robert P. Nall, Jr, Melissa A. Paselt, Brian L Pedersen, Sloan C. Bailey. David B. Tillotson ASSOCIA TES Beth C, Tenney, Cary Sloboda, Stephen M, Flynn, Annabel K Chang, Ravi B, Sahae Via Hand Delivery May 20, 2013 San Rafael City Council c/o San Rafael City Clerk 460 5 1h Street San Rafael, CA 94901 Re; Resolution #13159 (Amendment of Downtown BID) — Letter of Protest Dear Clerk. We represent Robert Berry in the above -referenced matter. We submit this protest because the joint notice and Resolution No. 13519 do not satisfy the applicable legal requirements for the proposed BID amendment and expansion 1. The Joint Notice is Defective Streets & Highways Code Section 36523.5 provides that, prior to adopting any new or increased assessment, the city council shall give notice pursuant to Section 54954.6 of the Government Code in lieu of publishing notice pursuant to subdivision (a) of Section 36523. Government Code Section 54954.6(c)(2) provides: The joint notice of the public meeting and public hearing with respect to a proposal for a new or increased assessment shall include, but not be limited to, the following: (A) The estimated amount of the assessment per parcel. If the assessment is proposed to be increased fromanrevious veer, the point notice shall se a 31 rater state both the amount of the existing assessment and the proposed assessment increase. The joint notice dated March 25, 2013 ("Joint Notice") provides only the proposed "Annual Assessment Formula," and not any amounts for any existing assessments. Thus, notice recipients are unable to evaluate the significance and effect — including the increases and decreases as to the recipient and other businesses -- of the proposed assessments. This makes the Joint Notice defective. San Rafael City Council c/o San Rafael City Clerk May 20, 2013 Page 2 of 3 Government Code Section 54954.6(c)(2) further requires that the joint notice include: (B) A general description of the purpose or improvements that the assessment will fund. The Joint Notice merely references the purpose or improvements that are permissible for business improvement districts, generally, and that the assessment for the San Rafael BID "may" fund. However, the joint notice does not identify any particular business activities, public events, improvements or other activities that the assessment for the San Rafael BID will fund. The joint notice is required to state what the BID will do, not what it could or might do. It instead attempts to defer such decisions until after funding is secured. Thus, notice recipients arc unable to meaningfully evaluate the proposal. This also makes the Joint Notice defective. 2. The Resolution is Defective Under Streets & Highways Code Section 36522, "[p]roceedings to establish a parking and business improvement area shall be instituted by the adoption by the city council of a resolution of intention to establish the area. The resolution of intention shall do all of the following: (c) State the type or types of improvements and activities proposed to be funded by the levy of assessments on businesses in the area. The resolution of intention shall specify any improvements to be acquired. Resolution 13519, however, merely references the purpose or improvements that are permissible for business improvement districts, generally, and that the assessment for the San Rafael BID "may" (might) fund. The resolution does not identify any type or types of improvements or activities that the assessment for the San Rafael BID are proposed to fund. The Resolution also does not specify any improvements to be acquired. The Resolution is also required to "(d) State that, except where funds are otherwise available, an assessment will be levied annually to pay for all improvements and activities within the area. The Resolution does contain such a statement, however, the Resolution, joint notice, and related BID informational materials do not sufficiently identify the funds that "are otherwise available" — existing assessment income, Lindaro parking lot income, May Madness and other Z71 special event income, reserves — and which materially affect the reasonableness and necessity of the proposed assessments. The Resolution is also required under Section 36522 to "(e)State the proposed method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business," The Resolution and proposed "Annual Assessment Formula" do not state any basis for that formula. For example- San Rafael City Council c/o San Rafael City Clerk May 20, 2013 Page 3 of 3 - What is the basis for abandoning the existing "gross receipts" assessment formula ? - What is the basis for levying the same assessment on businesses irrespective of their size or revenues ? - What is the basis for the "premium" versus "standard" designation, and for the amount of the approximately 25% increased levy for "premium" ? - What is the basis for adding 500 businesses (including office/non-retail) and $85,000 in annual assessments to replace a $13,000 redevelopment agency subsidy ? Because the Resolution does not contain the information that is required, notice recipients are unable to meaningfully evaluate the proposal. Failure to satisfy statutory requirements for the Resolution makes the proceedings defective. T These defects with the Joint Notice and the Resolution are a fairness and due process issue, as well as a statutory violation. The statutory scheme already imposes a considerable burden on San Rafael businesses by requiring those who have concerns with the proposed new BID to assemble a coalition of at least 50% of the assessments levied on their businesses to protest the proposal. Compliance with the legally required notice provisions, and providing the more than 700 potential members of the proposed new BID with meaningful, accurate information, is especially important given the backwards "negative vote" process. We appreciate the city council's careful consideration of these legal objections to the BID amendment proceedings to date, and urge that it seriously reevaluate and rectify them before proceeding further. Very truly yours, 9xi�ian C. Pedersen BCP/vf Z : V,wdsentinel\active\13errV, Robert 4251Cot-respondence12013-05-20 BCP -Sari Rafael City Clerk.docx, My previous letter is enclosed in case you failed to read it. The letter outlines the major objections to the proposed new BID tax. The bottom line is this: If you fail to send a written protest by the next San Rafael council meetinc, on May 20, 2013, this tax will be imposed. YOUR OPPOSING VOICE IS IMPORTANT. At the council meeting of May 6, 2013 a public hearing was held and the present BID paraded a series of merchants from the core downtown area before the council praising the new BID plan. The presentation featured a video of the wonderful things the new BID would hope to accomplish. The pro BID received time to speak of I hour 20 minutes while my presentation was limited to 2 minutes plus 6 minutes of con views from three other speakers. PROPOSED BID ACTIVITIES ARE UNNECESSARY. On the agenda report given to the public was the BID's latest proposal for allocation of funds received. Among those was Hospitality 20%, which would include "additional street enhancement services such as sidewalk cleaning and beautification-. The City has been providing sidewalk cleaning, so this appears to be a transfer of a city service to the BID. Beautification likely refers to the tree planter boxes, which also had been serviced by the City in the past. The BID also mentions graffiti removal in its budget - again, a City obligation on its property, Z:again, tl and a private property owner's obligation on private property. Not surprisingly the largest item on the budget is 40% for, guess what ? Staffing (payroll), rent, and office operations. The BID pays rent to the San Rafael Chamber of Commerce, of all people, and hires them to provide services for the May Madness event. THE BID VOTING SCHEME IS BACKWARDS, The director of the BID spoke and told the council that the reason the negative vote was put in the resolution was "there is not enough support from the present BID to successfully win a positive vote". Here is real democracy in action. THE BID HAS FUNDING AND DOES NOT NEED MORE OF YOUR MONEY. During the public hearing, BID staff admitted it would have use of the PG&E parking lot on Lindaro for 2014, at least. Also revealed at an earlier meeting was that the new BID budget includes a $20,000 grant from the Target development fund for the next few years. Thus, the truth is, the BID will have S7000 $70010 -snore in 2014 than they had in 2012, and $20,000 more in 2014 than in 2013. The BID's latest financial statements also reveal $78,200 in reserve accounts. I believe that if the new BID is as great as it says it is, they can use their existing income of $80,000 and spend down their reserves to show the new merchants and businesses that they can deliver before asking for more money from additional sources. Please join me and speak out at San Rafael City Hall, 1400 Fifth Avenue, at 7:00 p.m. on May 20, 2013 Finally, please sign and mail in your protest postcard (enclosed) if you have not already done so. Z�l Sincerely, Bob Berry, 1010 B Street CITY OF SAN RAFAEL 0 INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. Successor/ SRCC AGENDA ITEM NO. 5.b DATE OF MEETING: 5/20/2013 FROM: Stephanie Lovette DEPARTMENT: Economic Development I TITLE OF DOCUMENT: CONSIDERATION OF AN ORDINANCE REPEALING SAN RAFAEL MUNICIPAL CODE CHAPTER 10.08 ENTITLED "DOWNTOWN PARKING AND BUSINESS IMPROVEMENTS AREA" AND ADDING A NEW CHAPTER 10.09 ENTITLED "DOWNTOWN SAN RAFAEL BUSINESS IMPROVEMENT DISTRICT." bepartinent Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: 17 City Manager (signature) City Attorney (signature)i NOT APPROVED REMARKS: M' rl