HomeMy WebLinkAboutAgenda Report - May 21, 2003 I-03CITY OF LODI
�w
OUNCIL COMMUNICATION
A(;FND.A TITIFE: Council Direction Regarding Request for Advance Payment of
Up(€ ollect.ed/Dehnquent 2003 assessments to the Downtown
Lodi Business Partnership ($5000)
MEETING DATE: May 21,2003
PREPARED B w i anagemem Analyst, City Manager's Office
1 :COMIME,.: A 'ION For Council direction regarding request of an advance payment
of uncollec;tcd/delingwnt 2003 assessments to the Downtown
Lock Business partnersbip ($5000).
BACKGROUND On May 12, 2003, the City received a letter from the Downtown
Lodi Business Partnership (DLBP) requesting a $5000 advance on
uncollected/delinquent 2003 assessments (Exhibit 4). To date, the
City has billed the feall 2003 assessment amount of $34,100, collected and submitted to the DLBP
approximately $25,600, leaving a baiance of uncollected fees of approximately $8,700. According to City
Ordinance 1.2.06.090 (Exhibit R), the "Ciq� will hill and collect the (assessment) fees, at no charge to the
area and forward ail funds collected to the area within 30 days of such collections". If granted,
authorization of this request woWd be an exceptioii to the City's Ordinance.
FU . INDINCA. Contingency Fund
ATTACHMENTS
T
Respectfully submitted
3a t I..1anaiion
Mfa agement Analyst
H. Dixn lynn -- City Manager
MICEG g 1.0 PSIUSS !I$l5tOSHI!
4 WEST PIN E STREH
PUBOX 1565
1001,0 IFORNIA95741-1565
PftO (209) 369.8052
FAX: (209) 369.0053
EMAIE: EmOh ntownludiam
May 12,2003
Thr, Dixon on Flynn
City Manager
Clay of Lodi
City flail
Lodi, CA
i7
Subject.- Request fi r adva ce.,(1110 . 'A4ST DUE ASSESSMENTS
Dmir Dixon:
-1'his is to confirm our conversation of May 7'It, and our request <° 000 advance on
ncollected/del' at 2003 assessments.
We are experiencing cash flow problems due to approximately $11,000 in uncollected
assessments and penalties dating fi-orn 2002 back through 2001. 1n addition we have only been
laid for 2003 collections In the amount of$2 ,000, leaving a other approximately $9,000 past
due for this year.... r `r total outstandi"IT uncollected assess meats
If you have any additional questions, please do not hesitate to call me.
Sincerely)
fie : `. air Buskirk,
ec tive Director,
k -c DLBP Board of Directors
IEP
This 't2 STREETS. -SIDEWALKS AND PUBLIC PACES
i tems- 12.06 DOWNTOWN LODi.._ BUSINESS IMPROVEMENT AREA NO. i
12,06.010 Resolution of intention, public hearing and findings.
?he recitals hereof, which set forth facts regarding the adoption of council
resoiutions, the conduct of public hearings and certain findings of the city
council. are true and correct and incorporated in this chapter by reference.
(turd. 16-54 § 1 (part), 1997)
12,06.020 Definitions.
In order to distinguish between area businesses and for the purpose of
calculating and appiying the amount of benefit fees owed, the following
definitions shaii appiy:
A. Billing Period. "Billing period" refers to the period beginning January 1 stto
and including December 31 st of any year.
B. "Financial" means banks, savings and loans, credit unions, etc.
C. Lodging "Lodging" businesses mean and include inns, hotels, motels, RV
parks and other similar businesses.
D. Professionai. "Professional" means and includes attorneys, architects,
accountants, engineers, surveyors, physicians, dentists, optometrists,
chiropractors and others in a medicaflhcaith service field, consultants, real
estate brokers, financial advisors, iaboratories (including dental and optical),
hearing aid services. artists and designers
E. Restaurants. "Restaurant" businesses mean and include cafes, eating
establishments, sandwich shops, dinrrer houses, restaurants and fast food
services and other similar businesses.
F. Retaii Businesses. "Retail businesses" means and includes all businesses
not covered by other definitions set out in this section, at least fifty percent of
whose gross income is derived from "retail saies" as that term is defined
under the California Saies and Use Tax Law. The fact that a substantiai part
of its business consists of sales other than retail sales does not exciude such
business from this classification so long as such other business component
does not account for more than fifty percent of such business' gross income.
G. Service. "Service" businesses mean and include general office, news and
advertising media, printers, photographers, personal care facilities and
outlets, service stations, repairing and servicing businesses, renting and
leasing businesses, utilities. vending machine businesses, househoid
finance companies, entertainment businesses, theaters and other similar
businesses not otherwise included in Types 1, 2, and 4, Section 12.06.050,
or definitions B, C, I], E or F of this section. (Ord. 1654 § 1 (part), 1997)
12.06.0 0 Establishment of boundaries
A parking and business improvement area is established pursuant to the
Parking and Business Improvement Area Law of 1989, Streets and
Highways Code Section 36500 et seq. (the Act). The boundaries of the area
and the benefit zones within the area shall be as set forth on Exhibit A,
attached hereto and incorporated in this chapter by reference. This area
shall be known as the "downtown Lodi business improvement area No. V
(the "area"). (Ord. 1654 § 1 (part), 1997)
12.06.040 Establishment of area board of directors.
There shall be a board of directors ("board") of the area to administer the
affairs of the area. The board shall be composed of no less than ten nor
mare than twenty-five member businesses of the area. The initial board shall
be approved by the city council from a list cf business operators located in
the area that is submitted by the business improvement area formation
committee. Within the board there shall be a president, vice-president,
secretary and treasurer elected by the membership, and such other officers
as deemed necessary by the board. Such other officers shall be appointed
by the board of directors at their discretion. All voting within the area
regarding election of board members and any actions regarding the normal
and routine conducting of area business shall be based on one vote per
benefit fee dollar, and such voting business must be current in payment of
their area benefit fee(s) to participate in such votes. (Ord. 1654 § 1 (part),
1997)
All businesses; trades and professions located within the area boundaries
shown on Exhibit A, attached to the ordinance codified in this chapter, shall.
commencing January 1, 1998, pay an annual benefit fee in the following
amounts:
1d 1. AREA ANNUAL BENEFIT FEE
iTyp
arae A
orae
1. Rota
$200 00 (1 3 ern pIoyees)
00.00
500-013 (4-R6 employees)
1150,00
anci
k400.00 (7+ employees) TT
^200.00 —
restaurants
�2, Service
$150.00
1
€ 75-00
)I
Businesses
3 tafesscnal
_..._._100.00
j$ a0-00. .
Businesses
i
�4. Financial lnst$tutio
--------------
s 1$500.00
1$500.00
(Ord. 1654 § I (part), 1997)
12,06,060 Purpose and use of benefit Mes.
The types of improvements and activities proposed to be funded by the
benefit fee paid by businesses in the area are as follows:
A. Improvements including the acquisition, construction, installation or
maintenance of any tangible property with an estimated useful life of five
years or more Including, but not limited to, the following improvements:
1. Beiwhes.
2. Trash receptacles;
3. Decorations;
4. Facade improvements,
5. Permanent landscaping.
B. Activities inciuding but not fined to the following:
1. Promotion of public events which benefit businesses in the area and which
take place on or in public places within the area;
2. Furnishing of rnUSiC in any public place in the area,
3. Activities which benefit businesses located and operating in the area,
including but not limited to downtown shopping and promotional programs.
(Ord. 1654 § I (part), 1997)
12,06,070 Exclusions from benefit fees.
No person or business shall be required to pay a fee based on: (A) a
residential use of the property within the area, or (6) a nonprofit organization
as defined by Section 501(c)(3) or 501(c)(6) of the Internal Revenue Service
Code located within the area. (Ord, 1654 § I (part), 1997)
12,06.080 New business fee waiver.
Any new business established within the area shall not be required to pay a
fee, for the billing period during which such business is initiated. The
business will have been considered initiated on the date of issuance of the
business license. This waiver shall not apply to an existing business that has
changed ownership or location within the area. City agrees to supply the
area board with timely information regarding new businesses Initiated within
the area. (Ord, 1654 § I (part), 1997)
'12,06.090 Collection of benefit fee.
The benefit fee authorized by this chapter, for Lodi businesses (Section
12.06.050 hereof). shall be billed and collected once each billing period on
January 1st. [ it n I ec,th foes- at nQ charge tca the area and
Late payment penalties shall be applied to businesses that do not'pravide
their respective fee payments on the dates provided for in this chapter at a
rate of ten percent per month. At such time as late payment penalties equate
to fifty percent of the total annual fee, action shall be taken to recover such
delinquent fees. Costs of this recovery shall be borne by the business owing
the fee and late penalties. The board and city shall develop collection
procedures to implement the provisions of this section. (Ord. 1654 § 1(part),
1997)
12M.100 of tary contributions to area
Contributions to the area and its board shall be permitted can a voluntary
basis. The boundary of the area shall not be modified as a result of the
contribution, nor shall such contributing business be considered a member of
the area for voting or other purposes. However, such business making a
voluntary contribution may be entitled to participate in the programs of the
area upon a finding by the board of directors that the area derives a benefit
from such business' participation in the program. (Ord. 1654 § 1 (part), 1997)
1 mi A 10 Annual bu et process,
Pursuant to the Act, it shall be necessary for the board to present, by
September 1st, an annual budget for city council review and approval prior to
the beginning of any billing period. The purpose of this process is to comply
with the Act provisions regarding public notice and hearing prior to
establishing the benefit fees for the following billing period. City shall not
adopt, modify or otherwise amend any billing period budget of the area that
is inconsistent in any way with such billing period's budget as agreed to and
presented by the board except in the case of a written majority protest
(regarding elimination or modification of any specific budget item) from
business owners which will pay fifty percent or more of the fees proposed to
be levied as to any specific budget item pursuant to Streets and Highways
Code Section 36525(b), in such case the written protest regarding any
specific budget item shall be grounds to eliminate or modify such
expenditure from the area's proposed budget pursuant to the written protest.
(Orsi. 1€54 § 1 (part), 1997)
42-06,120 Decisions regarding expenditure of funds
As provided for within the guidelines of the Act, decisions of the board
regarding expenditure of all funds generated under this program shall be
final. (Ord. 1654 § 1 (part), 1997)
City specifically finds and declares that the funds derived from the area shall
not be used to offset or diminish current maintenance, capital improvement
programs, including but not limited to, public property and sidewalk cleaning,
street cleaning and maintenance, tree maintenance, restroom cleaning and
maintenance. The city declares its intent to provide at least the same level
and standard of Maintenance and repair of public property within the area
providing city funds are available from year to year (Ord 1654 § 1 (part),
1997)
12°06x`144 Public parking.
The proceeds of the benefit fees established hereunder shall not be used to
acquire and/or construct additional public parking, unless such use of the
funds is first approved by a majority vote of the area members voting. (Ord.
1654§ 1(part), 1997)
12,06.150 Disestablishment of the area
Proceedings to disestablish the area shall be initiated by the city council
following the presentation of a petition to the city council signed by business
owners paying fifty percent or more of the fees levied in the area.
Proceedings to disestablish the area shall follow the procedures set forth in
Streets and Highways Code Section 36550. The city council shall
disestablish the area if, following the public hearing prescribed in Section
36550(b), written protests are not withdrawn so as to reduce the protests
below the fifty percent level. In the event of disestablishmentof the area,
remaining revenues of the area maintained by the board shall be refunded to
paying business owners in a pro -rata manner calculated in the same manner
as was used to establish the most recent fees applied in the area. (Ord. 1654
§ 1 (part), 1997)