Ordinance 1988-18 ORDINANCE NO. 88-18
AN ORDINANCE OF THE CITY OF GILROY ADDING
ARTICLE V. OF CHAPTER 12A. OF THE CITY
CODE, PERTAINING TO THE ESTABLISHMENT OF A
PARKING AND BUSINESS IMPROVEMENT AREA WITHIN
THE CITY OF GILROY
THE CITY COUNCIL OF THE CITY OF GILROY DOES ORDAIN
AS FOLLOWS:
SECTION I. Establishment of' Area. A parking and
business improvement area to be known as the Downtown
Gilroy Business Improvement Area is hereby established
pursuant to the authority of the "Parking and Business
Improvement Area Law of 1979", being Sections 36500 et seq.
of the Streets and Highways Code of the State of California.
SECTION II. Resolution of Intention. This Ordinance
is adopted pursuant to that certain Resolution of Intention
adopted by the City Council being Resolution No. 88-53,
adopted on the 15th day of August, 1988, and entitled
'~ESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY OF
INTENTION TO ESTABLISH THE "DOWNTOWN PARKING AND BUSINESS
IMPROVEMENT AREA" IN THE CITY OF GILROY. (Streets and
Highways Code Sections 35600, et seq.)"
SECTION III. Public Hearing. A public hearing regarding
the proposed establishment of a parking and business improvement
area within the City of Gilroy was held by the City Council on
September 19, 1988, at 8 p.m. in the Council Chambers located
at 7351 Rosanna Street, in Gilroy.
SECTION IV. Municipal Code. Article V. of Chapter 12A,
entitled "Parking and Business Improvement Area", of the
Gilroy City Code is hereby adopted and shall read as follows:
Chapter 12A
IMPROVEMENT PROCEDURE CODE
ARTICLE V.
PARKING AND BUSINESS IMPROVEMENT' AREA
Sec. 12A.236 Area Boundaries. The description of
boundaries of said area so established by said ordinance and
by this article, including the designation of separate benefit
zones, is as follows:
ZONE A
Ail that land in the City of Gilroy, County of Santa Clara,
State of California, more particularly described as follows:
Beginning at the intersection of the centerline of Seventh
Street with the prolongation of the easterly right of way
line of the twenty-foot wide alley between Eigleberry Street
and Church Street; thence 'easterly along said centerline to
the Southern Pacific Transportation Company westerly right
of way line; thence northerly along said line to the
northeasterly corner of that Assessor's Parcel 841-04-017 as
shown on the 1988 roll; thence westerly along the common
line of Assessor's parcels 841-04-017 and 018, 1988 roll, to
a point on the centerline of Monterey Street; thence north
along said centerline to a point intersecting the centerline
of Third Street; thence westerly along said centerline to a
point intersecting the prolongation of the westerly property
line of Assessor's Parcel 799-04-023, 1988 roll, fronting on
Eigleberry Street; thence southerly along the west line of
said Assessor's Parcel 799--04-023 and 024 and 025; thence
traversing along the west lines of Assessor's parcels
799-04-.026 and 027 to the west line of 028; thence southerly
along said west line of parcel 028 and the west line of
those parcels fronting Eigleberry Street and continuing
along the same general course along the common lines of
parcels fronting Eigleberry Street and parcels fronting
Church Street to a point 100 feet more or less north of
Sixth Street on the north line of Assessor's Parcel
799-07-032, 1988 roll; thence traversing to the west and
south along the west line of said Parcel 032 to the center-
line of West Sixth Street; thence easterly along said center-
line to a point intersecting the easterly right of way
line of the twenty-foot wide alley between Eigleberry Street
and Church Street; thence southerly along said easterly line
to the Point of Beginning.
ORDINANCE NO. 88-18 -2-
ZONE B
Ail that land in the City of Gilroy, County of Santa Clara,
State of California, more particularly described as follows:
Beginning at the point of intersection of the northerly line
of First Street with the westerly line of Monterey Street;
thence in an easterly direction, across Monterey Street and
across the northerly line of Assessor's Parcel 841-02-008,
1988 roll, to the southwesterly line of the Southern Pacific
Transportation Company right of way, and diagonally across
said right of way to the northeasterly Cight of way line,
and southerly along said right of way line to the westerly
corner of Assessor's Parcel 841-04-006, 1988 roll; thence
traversing said parcel, northeasterly to the westerly right
of way of Forest Street, southeasterly 397 feet to the
northerly line of Assessor's Parcel 841-04-001, 1988 roll;
thence southwesterly along said line, 100 feet and southerly
to the centerline of Lewis Street; thence along said
centerline in a southwesterly direction to the southwesterly
line of an alley between Alexander Street and Railroad Street;
thence along said southwesterly line in a southeasterly
direction to the northerly line of Old Gilroy Street; thence
at right angles and diagonally across Old Gilroy Street to
the Southern Pacific Transportation Company railroad track;
thence along said railroad track, southeasterly to the northerly
line of Tenth Street; thence along said line, southwesterly to
the westerly line of Monterey Street; thence continuing south-
westerly, 152.76 feet, more or less, to the westerly line of
Assessor's Parcel 799-11-033, 1988 roll; thence northwesterly,
along the westerly property line of the properties fronting
Monterey Street to the northerly line of Eighth Street; thence
southwesterly along said line to the easterly line of a
twenty-foot wide alley between Eigleberry Street and Church
Street; thence northwesterly along said line to the centerline
of Seventh Street; thence easterly along said centerline to
the Southern Pacific Transportation Company westerly right of
way line; thence northerly along said line to the northeasterly
corner of Assessor's Parcel 841-04-017, 1988 roll, southerly
94 feet, more or less, from the prolongation of the southerly
right of way of Third Street; thence westerly along the common
line of Assessor's Parcels 841-04-017 and 018, 1988 roll, to
a point on the centerline of Monterey Street; thence north
along said centerline to a point intersecting the centerline
of Third Street; thence westerly along said centerline to a point
intersecting the prolongation of the westerly property line
of Assessor's Parcel 779-04-023, 1988 roll; thence northerly
on a course between Assessor's Parcels 799-03-035 and 036;
thence in a northwesterly direction along said common line,
and along the southeasterly and southwesterly lines of those
ORDINANCE NO. 88-18
-3-
parcels fronting on Eigleberry Street to the southwesterly
line of Assessor's Parcel 779-03-023, 1988 roll; thence
northwesterly along the southwesterly line of said parcel
to the common line between Assessor's Parcels 799-01-014
and 015, 1988 roll; thence northwesterly along said common
line and continuing along the southwesterly lines of those
parcels fronting on Eigleberry Street to the northwesterly
line of First Street; thence along the northwesterly line
of First Street to the Point of Beginning.
Sec. 12A.237. Definitions. For the purpose of this
Article, the followi'ng definitions shall apply:
(a) Retail. Retail businesses include all businesses
not covered by other definitions set out in this section which
do any retail sales as that term is defined in the State
Sales and Use Tax Law. The fact that a substantial part or
most of its business consists of other than retail sales does
not exclude the business from this classification.
(b) Restaurants. Restaurants include any establishment
where food is prepared for human consumption, either on or
off the premises.
(c) Bars. Bars include any place of business that sells
an alcoholzc~-~everage for consumption on the business premises.
(d) Amusements. Amusements include any type of business
conducted for amusement purposes for which an admission or
other charge is made for the purpose of enjoying such amusement.
This shall be deemed to include operators or lessees of
amusement-type vending machines of all kinds.
(e) Professional and Services. Professional and services
shall be deemed to inclu--d~,' but not necessarily be limited to
the following: Persons or businesses engaging in a pursuit
or activity professionally, such as attorneys , architects,
physicians and others in the medical health service field;
news and advertising media; printers; photographers; real estate
brokers; builders; service stations; repairing and servicing;
renting and leasing; laboratories (including dental and optical);
hearing aid services; utilities; artists and designers; vending
machine businesses; as well as others not included in categories
a-d.
(f) Hotels and Motels. Hotels and motels include businesses
devoted to'"'human 1-6-~ging on a transient rather than a more
permanent basis; apartments and boarding homes would be excluded.
(g) Financial. Financial shall be deemed to include, but
not necessarily be limited to the following, all financial,
lending or securities institutions.
ORDINANCE NO. 88-18 -4-
(h) Number of Employees, The "number of employees"
shall mean all pe~-~ons engaged in the operation or conduct
of any business, whether as owner, any member of the owner's
family, partner, agent, manager, solicitor, or salesman,
regardless of basis of compensation, and any and all persons
employed or working in such business, including but not
limited to students and apprentices working in connection
with instruction in any business, for which service the
owner, operator or management receives compensation or a
thing of value.
In determining the number of employees, the number of
hours worked by all employees during the entire preceding
fiscal year shall be added together and the sum thereof
divided by 2,000. Any remainder or fraction shall not be
considered; provided, however, that any amount below the
first 2,000 hours shall be considered as 2,000 hours, and,
in such event, the business in question shall pay a fee using
one (1) employee as a basis for computing the assessment fee
due.
Any employee who is paid for working away from the
business location for more than fifty percent (_50%) of the
time for which he is paid during a fiscal year shall be deemed
an exempt employee, and his time shall not be included in
the computation above, except that a business in which all
employees qualify for the exemption shall pay a fee using
one (1) employee as a basis for computing the assessment fee
due.
Sec. 12A.238. Benefit Assessment'Formula. Ail businesses,
trades and professions located within the boundaries described
in Sec. 12A.236, shall, commencing January 1, 1989, pay a
benefit assessment in addition to the general business license
tax, consistent with the following benefit assessment formula:
Annual Benefit Assessment = Basic Fee x Factor
TABLE I
Number of Basic Number of
Employees Fee Employees
i $35 ll
2 40 12
3 45 13
4 50 14
5 55 15
6 60 16
7 65 17
8 70 18
9 75 19
10 80 20
over 20
Basic
Fee
$85
89
93
97
101
105
109
113
117
121
121 +
$1.00 for
each additional
employee
ORDINANCE NO. 88-18 -5-
TABLE
Classification as Defined
in SeCtion 12A.237
Benefit Factor Benefit Factor
Zone "A" Zone "B"
Retail
Restaurants, bars and amusements
Professional and services
Financial institutions
Hotels and motels
8 4
4 2
2 1
2 1
2 1
Sec. 12A.239. Residenti'al' EXclUsion. No one shall be
required to pay an assessment based on a residential use within
the improvement area.
Sec. 12A.240. New Business-Exemption. Any new business
established within th-~-improvement area shall not be required
to pay an assessment hereunder for the license year during
which it commenced business. This shall not be deemed to
apply to an existing business that has changed ownership or
location within the district.
Sec. 12A.241. Disposition of Funds. The purposes for
which the funds raised by said b~-~ei~i-~ ~ssesmment shall be
devoted to the statutory purposes set forth in Section 36500
of the Streets and Highways Code of the State of California,
or one or more of said purposes, which are as follows:
(a) Decoration of any public place in the area.
(b) Promotion of public events which are to take place or
in public places in the area.
(c) Furnishing of music in any public place in the area.
(d) The general promotion of retail trade activities in
the area.
Sec. 12A.242. Collection of the Benefit Assessment.
The benefit assessment authorize-~ y~--this ordinance ~hall be
collected in January of each year.
Sec. 12A.243. Administrative Board.
The City Council may contract from ~ to time with a non'profit,
tax-exempt corporation, the purpose of which, as specified
in the purpose clause of its articles shall be to carry out
the purposes for which this benefit assessment is levied. In
the event such an agreement is made, it shall provide that said
corporation shall present a budget of proposed expenditures and
purposes to the City Administrator, for investigation and
report to the Council upon the advisability and feasibility of
the proposed expenditures and improvements, and upon approval
of said budget requests, the Council shall allocate and direct
payment of the funds collected pursuant to this Article to the
said contracting agency by the Director of Finance.
ORDINANCE NO. 88-18 -6-
Sec. 1'2A.244. Enforcement of ProVisiOns, It shall
be the duty of the Director of' Fi-~ance~and his/her deputies
to collect all assessments and charges levied pursuant to
this Ordinance. All assessments and charges required to be
paid under the provisions of this Ordinance shall be deemed
a debt owed by the business to the City. Any business, and
the owners thereof, owing money to the City under the
provisions of this Ordinance, shall be liable to an action
brought in the name of the City for recovery of such amount.
Sec. 12A.245. Penalties. For failure to pay an
assessment fee when due, the Diree~6r of Finance shall add
a penalty of ten (10) percent of said assessment fee on the
last day of each month after the due date thereof, providing
that the amount of such penalty to be added shall not exceed
fifty (50) percent of the assessment fee due.
SeC. 12A.246. DelinquenCies. The Director of Finance
shall ma~e available to the contracting agency, a list or
record of delinquent assessments made under this Ordinance.
This list shall be furnished at least annually, but not more
often than quarterly, and in the latter case, only upon
request of the contracting agency.
Sec. 12A.247. Liberal Construction; Partial Invalidity.
This Article is' intended to be construed liber'a'lly, and in
the event that any section, or part of any section thereof,
should be held invalid, the remaining provisions shall remain
in full force and effect.
SECTION V. Amendments. This Ordinance is adopted
pursuant to the provisions of Streets and Highways Code Sections
36500 et seq., and all businesses located within the district
established by this Ordinance shall be subject to any future
amendments to said provisions of the Streets and Highways Code
and this Ordinance.
SECTION VI. Findings. The City Council of the City of
Gilroy herewith specifically finds and determines that the
businesses located within the boundaries of the Parking and
Business Improvement District established herein will be benefited
by the expenditure of the funds raised by the assessments and
charges to be levied and collected pursuant to this Ordinance.
ORDINANCE NO. 88-18 -7-
SECTION VII. ~d'option. This Ordinance shall be in
full force and effective thirty (30) days from and after
its passage and approval.
PASSED AND ADOPTED this 3rd day of October 1988,
by the following vote.
AYES: COUNCILM~BERS:
NOES:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
GAGE, KLOECKER~ MUSSALLEM~
PALMERLEE, VALDEZ and HALE
NONE
HUGHAN
APPROVED
ATTEST:
ORDINANCE NO. 88-18 -8-
Official Seal of the City of Gilroy this ]6th
19 88.
~-~ ~-~e City of Gilroy --
day of
I? SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Ordinance No. 88-18 is an original
ordinance, duly adopted by the Council of the C~ty of GJlroy at a regular
meeting of said Council held on the 3rd day of October , ]9 88 ,
at which meeting a quorum was present.
IN WITNESS WHEREOF, I bave hereunto set my band and affixed the
November
(Seal)