A. "Business" means any individual, proprietorship, partnership, joint venture, corporation, limited liability company, trust, association, or other entity that may employ individuals or enter into service contracts, leases, concessions or franchises, but does not include nonprofit organizations.

B. "Capital lease" means a lease of city property which requires capital expenditures in excess of one million dollars to meet the terms of the lease.

C. "City" means the city of Petaluma and all city agencies.

D. "City financial aid recipients" means all businesses as defined in Section 8.36.040, which receive from the city direct assistance in the form of grants, loans, or loan guarantees, in-kind services, waivers of city fees, interests in real property or other valuable consideration in the amount of more than one hundred thousand dollars in any twelve-month period. This term shall not include those who enjoy an economic benefit as an incidental effect of city policies, regulations, ordinances, or charter provisions, nor any loan or grant for facade renovation. Assistance from the Petaluma community development commission (PCDC) shall be included under this chapter if the PCDC governing body has adopted a resolution approving such inclusion.

E. "Employee" means any individual employed by an employer who spends twenty percent or more of his or her work time on work arising from a service contract, city financial aid, or city lease, including subcontracts therefrom. No work may be reassigned in order to evade coverage under this chapter. For the purposes of determining whether an employer employs more than six employees for the purpose of this chapter, such number shall be determined by the most recent payroll period unless the employer had less than seven employees during the preceding eight payroll periods and will have less than seven during the next eight payroll periods.

F. "Employer" means those persons identified in Section 8.36.040, except that no business other than the city shall be deemed an employer until they receive a new service contract, lease, concession, franchise, or financial aid from or through the city. For these purposes, the term "new" includes any extension or renewal of a preexisting agreement or arrangement which involves newly negotiated or modified terms other than adjustment of terms pursuant to a formula or pre-set schedule, such as a Consumer Price Index, or the city allowing continued occupancy by tenants with periodic tenancies (such as month-to-month tenants). A subcontractor shall be deemed to have received a new service contract through the city when the person to whom it is subcontracting receives a new city service contract, lease, franchise, or financial aid. Exercise of a lease option does not constitute a new lease for these purposes. A capital lease as defined in this chapter is exempt from the provisions of this chapter during the original term of the capital lease and the term of any options to extend the term of the capital lease. An amendment to a capital lease which does not extend its original term and/or option term does not constitute a new lease for purposes of this chapter.

G. "Nonprofit" shall mean a nonprofit organization described in Section 501c of the Internal Revenue Code of 1954 that is exempt from taxation under Section 501(c) of that code, or any nonprofit educational organization qualified under Section 23701(d) of the Revenue and Taxation Code.

H. "Service contract" means a contract given to a contracting business by the city for the furnishing of services to or for the city, except contracts where services are incidental to the delivery of products, equipment or commodities. Service contracts include but are not limited to security guard services, janitorial services, waste management, landscaping, transportation and shuttle services, parking attendant services, towing, health and human services.

I. "Service contractor" means any business that enters into a service contract as hereafter defined in an amount equal to or greater than ten thousand dollars.