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HomeMy WebLinkAboutOrd 1854ORDINANCE N0*J 8UD4-2010 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AMENDING CHAPTER 6.54 OF THE BURLINGAME MUNICIPAL CODE TO REVISE THE DOWNTOWN BURLINGAME AVENUE AREA BUSINESS IMPROVEMENT DISTRICT BY ESTABLISHING A NEW METHOD AND MANNER OF ASSESSMENT, NEW BENFIT ZONES AND A NEW DISTRICT BOUNDARY The City Council of the City of Burlingame finds as follows: Section 1. Background Pursuant to California Streets and Highways Code Section 36500 et seq., the City Council of the City of Burlingame adopted ordinance 1735 in 2004, establishing the Burlingame Avenue Area Business Improvement District for the purpose of promoting the Downtown Burlingame Avenue business area. However, numerous businesses were opposed to the method and amount of the assessments. At the public hearing on the District Assessments for the 2006-2007 fiscal year, the Council determined that a majority protest had been made and, accordingly, no further assessment was levied. In the past year, several business owners in the Burlingame Avenue downtown have met and discussed the resurrection of the Downtown Burlingame Area Business Improvement District with a revised formula for the method and amounts of assessments. On July 7, 2010, the group steering this effort to revise the District presented its proposal to the City. A copy of the proposal is attached to the staff report regarding this matter. The Resolution of intention and the proposed ordinance revisions herein are based upon the proposal. Imposition of assessments on businesses does not require compliance with proposition 218 because the assessment is being imposed upon the businesses and is not being imposed on property or as an incident of property ownership. The Council finds that a majority protest against formation of the District has not been made. The Council finds that the revisions to the District would be in the best interests of the citizens of Burlingame and the downtown businesses and would promote the health safety and welfare of the City of Burlingame because the resurrection of the downtown Business Improvement District would provide the funds necessary to promote the downtown and would result in increased business which would revitalize the Burlingame Avenue area for the benefit of all. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME DOES ORDAIN AS FOLLOWS: Section 2. Section 6.54.010 of thc" J-16ai-at', Municipal Code, "Definitions", subsection (c), "Fiscal year", is hereby amended to read as follows: "(c) `Fiscal year' means October 1st to and including September 30th of the following year." Section 3. Section 6.54.010 of the Burlingame Municipal Code, "Definitions", subsection (f), "Restaurant", is hereby amended to read as follows: "(f) `Restaurant' means businesses that sell prepared food and/or drink and includes cafes, eating establishments, sandwich shops, dinner houses, restaurants, bars, fast food services, and other similar businesses." Section 4. Section 6.54.010 of the Burlingame Municipal Code, "Definitions", is hereby amended to add a new subsection (i), to read as follows: "(i) `Salons' means a personal service business which provides tanning, nail and hair personal services to individual customers on the premises." Section 5. Section 6.54.020 of the Burlingame Municipal Code, "Establishment of Boundaries", is hereby amended to read as follows: " A parking and business improvement district known as the "Burlingame Avenue Area Business Improvement District" is hereby established pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq. The boundaries of the district shall be as set forth in Exhibits "A", attached to Ordinance No. Section 6. Section 6.54.030 of the Burlingame Municipal Code, "Advisory board", is hereby repealed and a new section 6.54.030, "Advisory board", is added, to read as follows: "(a) There shall be an advisory board, which shall consist of nine (9) members. Members shall be nominated and elected for a term of two (2) years by the businesses participating in the district. (b) Terms: The positions on the board shall be classifi ed so that the initial terms of five (5) board positions shall expire at the end of the first year (September 30, 2011), and the initial terms of the other four (4) positions shall expire at the end of the second year (September 30, 2012). (c) Qualifications: Board positions shall be filled with persons owning businesses within the District and who have currently paid the annual benefit assessment. At least three of the board members shall be owners of businesses in Zone 1 and three of the board members shall be owners of businesses in Zone 2. The advisory board should be composed of members representing different business sectors, including retail, restaurants, salons, and professional or service businesses. (d) A vacancy on the advisory board shall be filled by appointment by the city council, upon nomination by the remaining members of the advisory board. Appointments to fill vacancies shall be for the unexpired portion of the position vacated. (e) The board shall make recommendations to the city council on expenditure of district revenues, make an amlual report for each fiscal year for which assessments are to be levied, and perform those functions required by the Streets and Highways Code to be performed by the advisory board. (f) The board shall elect a chair and shall make such rules and by-laws concerning their procedures as they deem necessary." Section 7. Section 6.54.040 of the Burlingame Municipal Code, "Establishment of benefit assessments", is hereby repealed and a new section 6.54.040, "Establishment of benefit assessments", is added, to read as follows: "All businesses located within the district boundaries shall pay an annual benefit assessment to the district for each fiscal year as levied by the city council. (a) Assessments Zones. For assessment purposes, the District shall be divided into tlm•ee zones: 1. Zone 1 shall consist of all businesses located on the ground floor of buildings on Burlingame Avenue; 2. Zone 2 shall consist of all businesses located on the ground floor of buildings on all streets within the District boundaries other than Burlingame Avenue; 3. Zone 3 shall consist of all businesses located either below or above the ground floor of buildings on all streets within the District boundari es. (b) Assessment Amounts: 1. Zone 1: All businesses in Zone 1 shall be assessed each fiscal year, a basic assessment fee of $125.00 and an additional assessment based upon the square -foot measurement of their ground floor space as follows: a) under 500 sq ft, $00.00; b) 500 sq ft, $100.00; c) for each additional 500 sq ft or portion thereof above 500 sq ft, an additional $50.00; d) the additional sq ft assessment shall capped at the rate for 5,500 sq ft. 2. Zone 2: All businesses in Zone 2 shall be assessed each fiscal year, a basic assessment fee of $100.00 and an additional assessment based upon the square -foot measurement of their ground floor space as follows: a) under 500 sq ft, $00.00; b) 500 sq ft, $80.00; c) for each additional 500 sq ft or portion thereof, above 500 sq ft, an additional $40.00; d) the additional sq ft assessment shall be capped at the rate for 5,500 sq ft. 3. Zone 3: All businesses in Zone 3 shall be assessed a basic assessment fee of $100.00. The amlual amount of assessment for each of the businesses in each zone shall not exceed these amounts without notice, a public hearing and adoption of an ordinance amendment pursuant to state law. The total annual assessment shall be due and payable thirty (30) days from receipt of invoice." Section 8. Section 6.54.050 of the Burlingame Muiucipal Code, "Purpose and use of benefit assessments", is hereby repealed and a new section 6.54.050, "Purpose and use of benefit assessments", is added, to read as follows: "All funds derived fiom the assessments will be used for the enhancement and appearance of the District and for the promotion, advertising. and image building of the businesses within the District. Funds derived fiom the District shall not be used to offset or diminish maintenance, capital improvement or business promotion programs currently sponsored by the City within the District. The types of improvements and activities proposed to be funded by the levy of assessments on businesses in the District are as follows. (a) Commercial marketing and advertising, including but not limited to signage; website design and maintenance; print, radio, television and electronic advertising; and publications for use with hotels and the San Mateo County Convention and Visitors Bureau. (b) Promotional, special, and seasonal events. (c) Streetscape beautification and seasonal decorations, including but not limited to plantings of flowers, seasonal decorations, and banners. (d) Shuttle service, including contributing to a shuttle operation connecting hotels and Burlingame's downtown. (e) Personnel, including the option to fund a salary for a person to administer district programs, organize events, and promote the district. Section 9. Anew section 6.54.055, "Appeal of assessment amount", is hereby added to Chapter 6.54 of the Burlingame Municipal Code, to read as follows: "Any business within the District may appeal the amount or computation of their annual assessment. The appeal must be in writing, must state the grounds and basis for the appeal and must be presented to the Advisory Board within fifteen (15) days of the date of the assessment billing statement. The Advisory Board shall appoint three of their members to serve as an Adjustment Board to hear the appeal. The Adjustment Board shall hear the appeal within thirty (30) days of its receipt. At the appeal hearing, the appellant and the District may appear, submit evidence and present their case. The Adjustment Board shall render a decision in writing within fifteen (15) days of the conclusion of the hearing. The Adjustment Board's decision shall be final." Section 10. Section 6.54.070 of the Burlingame Municipal Code, "Collection of benefit assessment", is hereby repealed and a new section 6.54.070, "Collection of benefit assessment", is added, to read as follows: "The benefit assessment authori zed by this chapter shall be billed in September of each year, shall be due on October 1St of each year and shall be delinquent on October 31St of each year. The City will make such collections in the same manner as it collects the business license fee. The City will forward collected funds to the advisory board monthly." Section 11. Section 6.54.080 of the Burlingame Municipal Code, "Late payment penalties and pro -rations", is hereby repealed and a new section 6.54.080, "Late payment penalties and pro -rations", is added, to read as follows: "Businesses which do not timely provide their respective assessment payments shall be subject to late payment penalties in the same time, manner, and amount as penalties upon late payment of city business licenses. Assessments shall be prorated for new business in the same manner as city business licenses." Section 12. The City Clerk is directed to puUlish this ordinance according to the provisions of state law. Section 13. 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 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 sections, subsections, sentences, clauses or phrases be declared invalid. gLqL �/p I/ Cathy Baylock, Mayor I, Mary Ellen Kearney, City Clerlc of the City of Burlingame, do hereby certify that the foregoing ordinance was introduced at a regular meeting of the City Council held on the 19th day of July, 2010, and adopted thereafter at a regular meeting of the City Council held on the 20th day of September, 2010, by the following vote: AYES: Councilmembers: BAYLOCK, NOES: Councilmembers: NONE ABSENT: Councilmembers: NONE BROWNRIGG, DEAL, KEIGHRAN, NAGEL