Ord 1876 - Establishing the Downtown Los Gatos Business Improvement DistrictORDINANCE 1876
ORDINANCE OF THE TOWN OF LOS GATOS
ESTABLISHING THE DOWNTOWN LOS GATOS
BUSINESS IMPROVEMENT DISTRICT
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY
SECTION I
Downtown Los Gatos Business Improvement District
Section 1.100 - Purpose and Findings
a. The businesses in the downtown area of the town of Los Gatos
are under utilized and limited by inadequate facilities, services
and activities; and
b. It is in the public interest to promote the economic
revitalization and physical maintenance of the downtown area
to create jobs, attract new businesses, and prevent erosion of
the business district; and
C. The businesses within the District would benefit by the
expenditure of the funds raided by the assessments levied by an
assessment district.
Section 1.010 - Resolution of Intention, Public Hearing and Protests
a. Resolution of Intention
On September 16, 1991, the Town Council of Los Gatos, on
behalf of the Town of Los Gatos (the "Town "), adopted
Resolution 1991 -204 entitled "Resolution of Intent of the Town
of Los Gatos Declaring Its Intention to Establish a Business
Improvement Area To Be Known As the Downtown Los Gatos
Business Improvement District" (the "Resolution "), declaring its
intention to establish a business improvement district
(hereinafter referred to as the "District "), to levy a benefit
assessment on all businesses, trades, professions, and vendors
within said District, the proceeds of which shall be used for the
public purposes herein described to benefit the businesses in the
District, pursuant to the Parking and Business Improvement
Area Law of 1989, Part 6 (commencing with Section 36500) of
Division 18 of the California Streets and Highways Code (the
"Act ").
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b. Public Hearing
Pursuant to the Act and the Resolution, Town conducted a
public hearing, after having given due notice thereof as required
by law, on October 7, 1991, at 7:30 p.m., at Town Hall, 110 E.
Main Street, Los Gatos, California, and heard and considered
all oral and written protests and other comments regarding such
proposed actions.
C. Valuation of Protests
The value of written protests from businesses in the proposed
District did not equal 50% or more of the proposed assessment.
Section 1.015 - Definitions
In order to distinguish between District businesses and for the purpose of
calculating and applying the amount of assessments owed, the following
definitions shall apply:
(a) Billing Period: 'Billing Periods" shall refer to the one (1)
period of each calendar year. The 'Billing Period" shall be the
period of January 1st through December 31st, inclusive, of the
calendar year.
(b) Professional: "Professional" includes attorneys, architects,
engineers, surveyors, physicians, dentists, optometrists,
chiropractors and other in a medical /health service field,
consultants, real estate brokers, and leasing agents, laboratories
(including dental and optical), hearing aid services, artists and
designers, banks, and savings and loans, etc.;
(c) Restaurants: 'Restaurant" businesses include cafes, bars, eating
establishments, sandwich shops, dinner houses, restaurants and
fast food services and other similar businesses;
(d) Retail Businesses: 'Retail Businesses" include all businesses not
covered by other definitions set out in this Section, at least fifty
percent (50 %) of whose gross income is derived from "retail
sales" as that term is defined under the California Sales and
Use Tax Law. The fact that a substantial part of its business
consists of sales other than retail sales does not exclude said
business from this classification so long as such other business
component does not account for more than fifty percent (50 %)
of said business' gross income;
(e) Service Business /Banks & Financial: "Service" businesses
include general office, news and advertising media, printers,
photographers, personal care facilities and outlets,
contractors /builders, service stations, repairing and servicing
businesses, leasing businesses, utilities, vending machine
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businesses, banks, savings and loans, and other similar
businesses not otherwise defined as Professional, Retail
Businesses, or Restaurants.
Section 1.020 - Establishment of District Boundaries and Benefit Zones
A business improvement district to be known as the "Downtown Los Gatos
Business Improvement District" (the "District "), is hereby established pursuant
to the Parking and Business Improvement Area Law of 1989, Streets and
Highways Code Section 36500 et seq. The businesses in the District shall be
subject to any amendments of the Act. The boundaries of the district and the
benefit zones within the district shall be as set forth on Exhibit "A ", attached
hereto and incorporated herein by reference.
Section 1.025 - Establishment of Benefit Assessment
a. All businesses, trades, and professions located within the
District boundaries shown on Exhibit "A" shall, commencing
January 1, 1992, pay an annual benefit assessment to the
District in the following amounts:
Benefit Zone A Benefit Zone B
* Type 1 - Retail /Restaurants $350.00 $175.00
**Type 2 - Retail /Restaurants 500.00 250.00
Type 3 - Service /Businesses
Banks & Financial 250.00 125.00
Type 4 - Professional 150.00 75.00
*Type 1 includes retail businesses with 1 -9 employees and restaurants with
1 -15 employees (full -time equivalent)
* *Type 2 includes retail business with 10+ employees and restaurants with
16 or more employees (full -time equivalent)
b. No person or business shall be required to pay an assessment
for: (a) a residential use of the property within the District, or
(b) uses by a non - profit organization as defined by Section 501
(C) (3) of the Internal Revenue Service Code.
Section 1.030 - Purpose and Use of Benefit Assessments
A levy of assessments on businesses in the District shall provide for the
following improvements and activities. These funds shall not be used to
provide improvements or activities outside the District.
a. 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) Trash receptacles
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(2) Visitor amenities such as benches and water
fountains
b. Activities including, but not limited to, the following:
(1) Maintenance and enhancement of District public areas
(a) Encourage the Town of Los Gatos
to carry out programs that include
physical clean -up of streets and
sidewalks and sidewalk steam
cleaning on a regular basis.
(b) Clean -up vacant lots
(c) Clean -up parking lots
(d) Clean -up, visual improvements to
existing commercial vacancies
(e) Plant downtown trees, shrubs,
flowers, and plants downtown
(2) Commercial Marketing /District Advertising -
Image Building Campaign
- Create an institutional, long term,
image - building campaign
- Design and implement a campaign to
encourage community shopping in Los
Gatos rather than in nearby malls and
competing commercial districts
- Create and implement an annual program
of downtown - oriented retail events and
activities
- Coordinate closely with Chamber of
Commerce regarding overall, Town -wide
marketing plan
(3) Commercial Recruitment and Retention Program
This program will actively seek the most suitable new
businesses to fill existing vacancies or vacancies as they occur.
Aggressive recruitment of most desired new businesses will be
pursued by creation and production of a marketing package,
which may include a video.
This program will also provide support services to existing
businesses in the form of small business assistance financing
and merchandising seminars.
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(4) District Shuttle Service Program
During the current period of downtown parking shortages, this
program will assist with the development of a shuttle service to
act as a people mover throughout the year for both customers
and employees.
The shuttle service will provide free transportation
to all persons throughout an expanded service
area in coordination with other Los Gatos
marketing groups.
Secti 1.035 - Collection of Benefit Assessment
The benefit assessment shall be billed and collected once each fiscal year by
the Town at no charge to the District. The District's fiscal year shall be
January 1 to December 31. The Town will forward all funds collected to the
District within 30 days of collection. Town will mail bills by first class mail
no later than December 1st for the payment to be due no later than January
1st. Payments not received by February 1st will be considered late.
New businesses entering the business improvement district will pay the
assessment on a pro -rata basis. The pro- ration will be to the nearest quarter.
Late payment penalties of 25% per month shall be imposed onto businesses
that do not make timely payments. When late payment penalties equal 100%
of the total annual assessment, judicial action may be taken to recover
delinquent assessments and penalties. Costs of this recovery shall be borne
by the business owing the assessment and late penalties.
Section 1.040 - Voluntary Contributions to District
Contributions to the District shall be permitted on a voluntary basis. The
boundary of the District shall not be modified as a result of the contribution,
nor shall any contributing business be considered a member of the District
for voting or other purposes. However, said business making a voluntary
contribution may be entitled to participate in the programs of the District
upon a finding by the Board of Directors that the District derives a benefit
from said business' participation in the program.
Section 1.045 - Establishment of District Board of Directors
There shall be a Board of Directors ('Board ") of the District to administer
the affairs of the district. The Board shall be composed of representatives of
eleven (11) member businesses of the District. The initial Board shall be
appointed by the Town Council from a list of eleven (11) business operators
located in the District that is submitted by the Formation Committee. Six (6)
of these appointments shall be for a two (2) year term, and the remaining five
(5) appointments shall be for a one (1) year term. At the beginning of the
second year, the Directors shall be elected to one (1) year staggered terms
by vote of the members of the District. The Town Council shall confirm and
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appoint the Directors according to the results of the election as provided by
the Board. 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 District
regarding election of Board members and any actions regarding the normal
and routine conducting of District business shall be based on one (1) vote per
assessed business, and said business must be current in payment of their
District assessment(s) to participate in such votes.
Section 1.050 - Annual Report Process
Pursuant Section 36533 of the Act, as it may be amended, the District Board
of Directors shall present an annual report for public hearing before the
Town Council, review, and approval prior to the beginning of any Fiscal Year.
The Town Council may approve the annual report as presented by the District
Board of Directors or may modify any particular contained in the report and
approve it as modified.
Decisions of the District Board of Directors regarding expenditures of all
funds generated under this program shall be final to the extent they are
consistent with the District's annual report approved by the Town Council.
Section 1.055 - Annual Assessment Process
After approval of the annual report, the Town Council shall adopt a
resolution of intention to levy an assessment for that fiscal year, consistent
with the requirements of Sections 36534 -36536 of the Act as they may be
amended.
Section 1.060 - District Proceeds Do Not Offset Town Services
Town specifically finds and declares that the funds derived from the District
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 Town declares its intent to provide
at least the same level and standard of maintenance and repair of public
property within the District providing Town funds are available from year to
year.
Section 1.065 - Public Parking
The proceeds of the benefit assessments 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 District members
voting.
Section 1.070 - Disestablishment of the District
Proceedings to disestablish the District shall be initiated by the Town Council
following the presentation of a petition to the Town Council signed by
business owners paying 50% or more of the assessments levied in the District.
Proceedings to disestablish the District shall follow the procedures set forth
in Section 36550 of the Act as it may be amended.
In the event of disestablishment of the District, remaining revenues of the
District 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
assessments applied in the District.
SECTION II
If any section, subsection, sentence, clause or phrase of this ordinance is, for any
reason, held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not
affect the validity or constitutionality of the remaining portions of this ordinance, it being
expressly declared that this ordinance and each section, subsection, clause and phrase
hereof would have been prepared, proposed, adopted, approved and ratified irrespective of
the fact that any one or more other sections, subsections, sentences, clauses, or phrases be
declared invalid or unconstitutional.
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SECTION III
This ordinance takes effect 30 days after it is adopted. Within 15 days after this
ordinance is adopted the Town Clerk shall cause it to be published once in a newspaper
of general circulation published and circulated in the Town.
This ordinance was introduced at a regular meeting of the Town Council of the
Town of Los Gatos on October 21, 1991 and adopted by the following vote as an ordinance
of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los
Gatos on November 4, 1991.
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Eric D. Carlson
Mayor Brent N. Ventura
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED :
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
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CLERK OF THE TOWN OF LO., GATOS
LOS GATOS, CALIFORNIA
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