The city council finds and declares:

A.

Pursuant to Section 36500 et seq. of the California Streets and Highways Code (the "Act"), the city council on May 23, 2005, adopted Resolution of Intention No. 2005-20, declaring its intention to establish parking and business improvement area to be known as the Nevada City historic downtown business improvement district (the "district"), and caused such resolution to be published and mailed in accordance with the law.

B.

Pursuant to California Government Code Section 54954.6 and the Act, a noticed public meeting and public hearing regarding the establishment of the district was held on May 23, 2005 and June 13, 2005 respectively, each at approximately 7:00 p.m. in the council chambers at City Hall, 317 Broad Street, Nevada City, California.

C.

At the hearing of June 13, 2005, written and verbal evidence for and against the proposed establishment of the district was received and considered by the city council and that all written protest received did not constitute a majority protest by the public affected by the establishment of the proposed district in accordance with Section 36525 of the Act.

D.

The public interest, convenience and necessity require the establishment of the proposed district and the businesses within the district will benefit by the improvements and activities funded by the assessments proposed to be levied for the purposes herein described pursuant to the Act.

E.

The improvements and activities within the district shall be funded by the levy of assessments on behalf of the district and such assessments shall not be used to fund improvements and/or activities for any purpose other than the purposes specified in the resolution of intention as adopted or modified by the city council at the hearing concerning establishment of the district.

F.

The businesses in the district shall be subject to any amendments to the district's boundaries, amounts of assessment, improvements or activities subject to the requirements of the Act.

(Ord. 2005-04 § 1, 2005)

Pursuant to the Act, a parking and business improvement area to be named the "Nevada City historic downtown business improvement district" is created and established.

(Ord. 2005-04 § 2, 2005)

The proposed boundaries of the district are as set forth in Exhibit A which is attached to the ordinance codified by this chapter and incorporated by reference herein.

(Ord. 2005-04 § 3, 2005)

For calculating the amount of assessment owed, the following definitions shall apply:

"Business" means all types of businesses including, but not limited to, all new businesses, retail sales, restaurants, bars, financial institutions, theaters, hotels/motels, services, barber/beauty salons, professionals, general office, real estate, insurance, utilities, wholesales sales, manufacturing, contractors, and nonprofits.

"Full-time equivalent employees" means the total hours worked annually by all employees of the business including the owners thereof annually divided by two thousand eighty (2,080). (Ord. 2005-04 § 4, 2005)

For purposes of the assessments to be imposed pursuant to this chapter, the city 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 proposed improvements and activities within the district. All businesses, trades and professions including insurance, financial institutions, new businesses and nonprofits located within the district shall, commencing October 1, 2005, be classified and assessed as set forth below:

The method and the basis for levying the benefit assessment are as follows:

* fte = full-time equivalent employees (number of hours worked annually divided by 2,080).

(Ord. 2005-04 § 5, 2005)

The purposes for which the funds raised by said benefit assessment may be used shall be devoted to the statutory purposes set forth in Sections 36510 and 36513 of the Act, which may include, but are not limited to the following improvements and activities:

A.

General promotion of business activities within the district;

B.

Promotion of public events which benefit businesses within the district and which are to take place on or in public places within the district;

C.

Decoration of any public place within the district;

D.

Acquisition, construction, installation or maintenance of improvements identified in Section 36510 of the Act.

The revenue raised by this assessment shall not be used to provide improvements or activities outside the district.

(Ord. 2005-04 § 6, 2005)

A.

Appointment. The city council shall appoint an advisory board pursuant to Section 36530 of the Act in order to make recommendations to the city council on the district's expenditure of revenues derived from the levy of assessments on proposed improvements and activities, on the classification of businesses, and on the method and basis of levying assessments.

B.

Annual Report. The advisory board shall prepare a report for each fiscal year for which assessments are to be levied. The report shall be filed with the city clerk and shall comply with all the requirements of Section 36533 of the Act. The report shall be approved as filed or modified. No change in the basis or method of levying assessments which would impair an executed contract to be paid from the revenues derived from the assessments shall be approved by the city council.

(Ord. 2005-04 § 7, 2005)

A.

Annual Resolution of Intention. After approval of the annual report filed by the advisory board, the city council, in order to renew the district, shall adopt a resolution of intention authorizing for the benefit of the district the levy and collection of the assessments for the subject fiscal year pursuant to Section 36534 of the Act. The resolution shall be published once in the local newspaper and shall set the time and place for a public hearing on the levy of assessments for that fiscal year.

B.

Annual Public Hearing. The city council shall, pursuant to Section 36535 of the Act, hold an annual public hearing on the levy of assessments as specified in the resolution of intention.

C.

Resolution Confirming Annual Report and Levy of Assessments. At the conclusion of the annual public hearing, in order to levy assessments for the subject fiscal year for the benefit of the district, the city council shall, by resolution, confirm the annual report as filed or modified. Adoption of this resolution shall constitute the levy of assessments for the fiscal year referred to in the annual report.

(Ord. 2005-04 § 8, 2005)

The city council may, at the advisory board's recommendation, modify the boundaries or assessments established pursuant to this chapter; the modifications shall be made pursuant to the requirements of the Act, but no assessment shall be modified which would impair the ability of the district to meet the obligation of a contract to be paid from the revenues derived from the levy of assessments. Such changes shall be made by ordinance adopted after a hearing before the city council or by resolution, if approved in conjunction with confirmation of the annual report.

(Ord. 2005-04 § 9, 2005)

The benefit assessment authorized by this chapter shall be billed annually by the city with all funds collected to be placed in an account separate from the city's general fund to be expended by the district in accordance with this chapter and subsequent resolutions and fund management agreements. The levy of assessments will be accomplished by mailing assessment notices to all businesses as herein defined within the district by first class mail by January 10th of each year, to be due and payable by February 10th of each year. In the event that the assessment is not paid it shall be the obligation of the district advisory board to collect the assessment and pay it to the city clerk who shall deposit it into the separate account above mentioned.

(Ord. 2005-04 § 10, 2005)