HomeMy WebLinkAboutResolution 2018-160 N.C.S. 10/15/2018Resolution No. 2018-160 N.C.S.
of the City of Petaluma, California
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
DECLARING THE CITY COUNCIL'S INTENTION TO FORM THE PETALUMA
TOURISM IMPROVEMENT DISTRICT AND GIVING NOTICE OF THE TIME AND
PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING ON THE
ESTABLISHMENT OF THE DISTRICT AND THE LEVY OF ASSESSMENTS
WHEREAS, the Property and Business Improvement Law of 1994, Streets and
Highways Code § 36600 et seq. ("Improvement Law"), authorizes the cities and other specified
entities to establish business improvement districts to levy assessments against businesses and/or
property within the district to fund various specified activities and improvements within the
district benefitting businesses and/or property owners subject to the levy; and
WHEREAS, in accordance with Section 36621, subdivision (a) of the Improvement
Law, the City Council may, upon submission of a written petition signed by the property or
business owners in a proposed district who will pay more than 50% of the assessments proposed
to be levied, initiate proceedings to form an improvement district by adoption of a resolution
expressing the City Council's intention to form the district; and
WHEREAS, in accordance with Section 36621, subdivision (a) of the Improvement
Law, the amount of assessment attributable to property or a business that is in excess of 40% of
the amount of all assessments proposed to be levied in a proposed district shall not be included in
determining whether the petition to form the district is signed by property or business owners
who will pay more than 50% of the total amount of assessments proposed to be levied; and
WHEREAS, in accordance with Section 36621, subdivision (b) of the Improvement
Law, the petition required to form a district must include a summary of the management district
plan for the district, including a map showing the district boundaries, information specifying
where the complete management district plan can be obtained, and information specifying that
the complete management district plan shall be furnished upon request; and
WHEREAS, in accordance with Section 36621, subdivision (c) of the Improvement
Law, the resolution of intent required to initiate district formation proceedings must contain a
brief description of the proposed improvements, maintenance and activities to be funded, the
amount of the proposed assessment, a statement as to whether the assessment will be levied on
property or businesses within the district (or both), a statement as to whether bonds will be
issued, and a description of the exterior boundaries of the proposed district, which may be made
by reference to any plan or map that is on file with the clerk, all sufficiently detailed to enable an
owner to generally identify the nature and extent of the improvements, maintenance and
activities and the location and extent of the proposed district, as well as a time and place for a
public meeting and a public hearing on the establishment of the district and the levy of
assessments consistent with the requirements of Section 36623 of the Improvement Law; and
Resolution No. 2018-160 N.C.S. Page 1
WHEREAS, in accordance with Section 36622 of the Improvement Law, management
district plans required to form a district must include, but are not limited to: a map of the district
in sufficient detail to locate each parcel of property and, if businesses are to be assessed, that
identifies each business within the district and the district boundaries in sufficient detail to allow
a business owner to reasonably determine whether a business is located within the district; the
name of the proposed district; a description of the boundaries of the district sufficient to identify
the affected property and businesses included, which may be made by reference to any plan or
map on file with the clerk; the improvements, maintenance and activities proposed for each year
of operation of the district and their maximum cost; the total annual amount proposed to be
expended for improvements, maintenance or activities and debt service in each year of district
operation, which amount may be estimated based on the assessment rate if the assessment is to
be levied on businesses; the proposed source(s) of financing, including the proposed method and
basis of levying the assessment in sufficient detail to allow each property or business owner to
calculate the amount of the assessment to be levied against his or her property and/or business;
whether bonds will be issued; the time and manner of collecting assessments; the number of
years in which assessments will be levied (not to exceed 5 years for a new district); the proposed
time for implementation and completion of the management district plan; any proposed rules and
regulations to be applicable to the district; a list of the properties or business to be assessed,
including assessor's parcel numbers for properties to be assessed; and a statement of the method
or methods by which district expenses will be imposed upon benefited real property or
businesses, in proportion to the benefit received by the property or business; for property -based
districts, the proportionate special benefits to be derived by each parcel, the total amount of all
special benefits to be conferred within the district, the total amount of general benefits, and a
detailed engineer's report supporting all contemplated assessments; and any other item the city
council requires to be incorporated in the management district plan; and
WHEREAS, in accordance with Section 36623 of the Improvement Law, notice of new
business assessments must be mailed to the owners of the businesses proposed to be assessed;
protests may be made orally or in writing by any interested person; written protests must be filed
with the clerk at or before the time fixed for the public hearing; the city council may waive any
irregularity in the form or content of any written protest; written protests may be withdrawn in
writing at any time before the conclusion of the public hearing; each written protest shall contain
a description of the business in which the persons subscribing the protest is interested sufficient
to identify the businesses; written protests that do not satisfy Section 36623 requirements shall
not be counted in determining a majority protest; and if written protests are received from the
owners or authorized representatives of businesses in the proposed district that will pay 50% or
more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the
protest to less than 50%, no further proceedings to levy the proposed assessment against such
business shall be taken for a period of one year from the date of the finding of a majority protest;
and
WHEREAS, in accordance with Section 36623 of the Improvement Law, notice, protest
and hearing procedures for proposed new business assessment districts must comply with the
requirements of Government Code section 54954.6, which requires: at least one public meeting
at which local officials shall allow public testimony regarding proposed new or increased general
taxes or assessments in addition to the noticed public hearing at which the legislative body
Resolution No. 2018-160 N.C.S. Page 2
proposes to enact the tax or assessment; at least 45 days public notice given by mail of the public
hearing at which the legislative body proposes to enact the general tax or assessment; mailed
notice of the public meeting included with the notice of the public hearing; the mailed notice
envelope must include the public agency's name and return address; the mailed notice must be in
at least 10 point type and be given to all property owners or business owners proposed to be
subject to the assessment addressed to those persons whose names and addresses appear on the
last equalized county assessment role, the State Board of Equalization assessment roll, or the
local agency's records pertaining to business ownership; holding of the public meeting at least 10
days after mailed notice of the public hearing and meeting; and holding of the public hearing at
least 7 days after the public meeting; and
WHEREAS, in accordance with Section 54954.6 of the Government Code, the notice of
a meeting and hearing on a proposed new assessment must include the estimated amount of the
assessment per parcel or, in the case of proposed assessments on businesses, the proposed
method and basis of levying the assessment in sufficient detail to allow each business owner to
calculate the amount of assessment to be levied against each business; a general description of
the purpose or improvements that the assessment will fund; the address to which property owners
may mail a protest against the assessment; the telephone number and address of an individual,
office or organization that interested persons may contact to receive additional information about
the assessment; a statement that a majority protest will cause the assessment to be abandoned;
the dates, times and locations of the public meeting and hearing; and the proposed assessment
formula or range; and
WHEREAS, in accordance with Section 36624 of the Improvement Law, at the
conclusion of the public hearing to form the district, the city council may adopt, revise, change,
reduce or modify the proposed assessment or the type or types of improvements, maintenance
and activities to be funded with the revenue from the assessments, but may only revise proposed
assessments by reducing them and may only change the boundaries of the proposed district that
will exclude territory that will not benefit from the proposed improvements, maintenance and
activities; and
WHEREAS, in accordance with Section 36625, subdivision (a) of the Improvement
Law, if, following the public hearing, the city council decides to form the proposed district, it
shall adopt a resolution of formation that includes but is not limited to: a brief description of the
proposed improvements, maintenance, and activities; the amount of the proposed assessment; a
statement as to whether the assessment will be levied on property, businesses or both within the
district; a statement on whether bonds will be issued; a description of the exterior boundaries of
the proposed district, which may be made by reference to any plan or map that is on file with the
clerk, such that an owner may generally identify the nature and extent of the improvements,
maintenance and activities and the location and extent of the proposed district; the number, date
of adoption and title of the resolution of intention to form the district; the time and place where
the public hearing was held concerning establishment of the district; a determination regarding
any protests received; a statement that the properties, business or properties and business in the
district established by the resolution shall be subject to any amendments to the Improvement
Law; a statement that the improvements, maintenance and activities to be conferred on
businesses and properties in the district will be funded by the levy of the assessments, and that
the revenue from the levy of assessments within the district shall not be used to provide
Resolution No. 2018-160 N.C.S. Page 3
improvements, maintenance or activities outside the district or for any purpose other than the
purposes specified in the resolution of intention, as modified by the city council at the hearing
concerning establishment of the district; and a finding that the property or businesses with the
area of the district will be benefited by the improvements, maintenance and activities funded by
the proposed assessments; and
WHEREAS, in accordance with Section 36625, subdivision (b), of the Improvement
Law, adoption of the resolution of formation shall constitute the levy of an assessment in each of
the fiscal years referred to in the management district plan; and
WHEREAS, in March 2018, Petaluma City Council members received correspondence
from representatives of the Petaluma lodging industry and the Petaluma Downtown Association
encouraging the City Council to establish a benefit assessment district to support tourism
funding, including an offer to use some of the assessment proceeds to fund the Petaluma Visitors
Center program; and
WHEREAS, the Petaluma lodging industry and the Petaluma Downtown Association
have proposed formation the Petaluma Tourism Improvement District ("PTID") to fund
marketing and sales promotion efforts for Petaluma lodging businesses; and
WHEREAS, the proposed PTID would provide specific benefits to assessed lodging
businesses with 10 or more rooms by funding marketing and sales promotion programs that are
designed to increase room night sales for assessed lodging businesses, an approach that has been
successfully used in other destination areas throughout the country; and
WHEREAS, owners of lodging businesses in Petaluma with 10 or more rooms have met
to consider the formation of the PTID; and
WHEREAS, City of Petaluma staff have worked with lodging business owners to draft a
Management District Plan (Management Plan) which sets forth the proposed boundary of the
PTID, a service plan and budget, and proposed means of governance; and
WHEREAS, the proposed PTID would include all lodging businesses with 10 or more
rooms in the City of Petaluma and would levy assessments to fund the activities occurring within
the PTID to benefit the assessed businesses pursuant to the Management Plan, and levies to fund
the PTID pursuant to the Improvement Law would be imposed on covered businesses within the
PTID and not on real property; and
WHEREAS, in accordance with Section 36601, subdivision (d), of the Improvement
Law, assessments levied under the Improvement Law for the purpose of conferring specific
benefits upon the businesses in a business district are not taxes for the general benefit of a city,
even if property, businesses or persons not assessed receive incidental or collateral effects that
benefit them; and
WHEREAS, proposed assessments pursuant to the PTID would not be taxes as defined
in Section 1, paragraph (e) of Article XIIIC of the California Constitution ("Proposition 26")
because such assessments would be imposed for a specific benefit conferred or privilege granted
Resolution No. 2018-160 N.C.& Page 4
directly to the payer that is not provided to those not charged, and which does not exceed the
reasonable cost of providing the services which the assessments would fund; and
WHEREAS, the proposed assessments pursuant to the PTID are not subject to the
requirements of Article XIIID of the California Constitution ("Proposition 218") concerning
property related assessments and fees pursuant to Apartment Association of Los Angeles County
v. City of Los Angeles (2001) 24 Cal.4`h 830, because such assessments would not be imposed on
real property but rather on covered businesses, and such assessments would not be applicable to
incidents of property ownership; and
WHEREAS, in accordance with Section 36621 of the Improvement Law, lodging
businesses in Petaluma with 10 or more rooms who will pay more than fifty percent (50%) of the
proposed assessment under the PTID have signed petitions in favor of formation of the PTID
which petitions are attached to and made a part of this Resolution as Exhibit A; and
WHEREAS, in accordance with Section 36623 of the Improvement Law and Section
54954.6 of the Government Code, notices will be mailed to owners of businesses proposed to be
assessed pursuant to the PTID on October 16, 2018 regarding an upcoming public meeting to be
held on November 5, 2018, at least ten (10) days after the notice is mailed, at which meeting
lodging business owners with 10 or more rooms and other interested parties may comment, and
the same mailed notice will include notice of a public hearing to be held on December 3, 2018, at
least 45 days after the notice is mailed and at least 7 days after the public meeting; and
WHEREAS, if the City Council finds in accordance with Section 36623 of the
Improvement Law that there is no majority protest against formation of the proposed PTID, the
City Council may adopt a Resolution of Formation after the conclusion of the public hearing in
accordance with Section 36625 of the Improvement law;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. The recitals set forth in this resolution are hereby declared to be true and correct and
findings of the City Council.
2. The City Council finds that lodging businesses with 10 or more rooms that will pay
more than fifty percent (50%) of the assessment proposed in the Plan have signed and
submitted petitions in support of the formation of the PTID in accordance with
petitions attached as Exhibit A to this resolution. The City Council accepts the
petitions and adopts this Resolution of Intention to form the PTID and to levy
assessments on certain lodging businesses within the PTID boundaries in accordance
with the Improvement Law,
The City Council finds that the Management Plan, a complete copy of which is on file
with the City Clerk and which may be reviewed on request, satisfies all requirements
of Section 36622 of the Improvement Law,
Resolution No. 2018-160 N.C.S. Page 5
4. In accordance with Section 36621 of the Improvement Law, the City Council declares
its intention to establish the PTID and to levy and collect assessments on lodging
businesses with 10 or more rooms within the PTID boundaries pursuant to the
Improvement Law.
5. In accordance with Section 36621 of the Improvement Law, the City Council finds as
follows:
a. The PTID shall include all lodging businesses with 10 or more rooms located
within the jurisdictional boundaries of the City of Petaluma, as shown on the map
attached to and made a part of this resolution as Exhibit B.
b. The name of the district to be formed pursuant to the Improvement Law shall be
the Petaluma Tourism Improvement District (PTID).
c. The annual assessment rate in the PTID shall be two percent (2%) of gross short-
term room rental revenue. Based on the benefit received, assessments will not be
collected on: stays of more than thirty (30) consecutive days; stays by any officer
or employee of a Federal, state, or foreign government who is exempt by reason
of express provision of federal or state law or international treaty; and stays
pursuant to contracts executed prior to January 1, 2019.
d. The assessments levied for the PTID shall be applied toward sales promotion and
marketing programs to market assessed lodging businesses in Petaluma as tourist,
meeting, and event destinations, as described in the Management Plan. Funds
remaining at the end of any year may be used in subsequent years in which PTID
assessments are levied as long as they are used consistent with the requirements
of this resolution and the Management Plan.
e. The proposed PTID will have a five (5) year term, beginning January 1, 2019
through December 31, 2023, unless renewed pursuant to Section 36660 of the
Improvement law.
f. Bonds shall not be issued to fund PTID programs or improvements.
g. The time and place for the public meeting to hear testimony on establishing the
PTID and levying assessments are set for November 5, 2018, at 6:45 PM, or as
soon thereafter as the matter may be heard, at the City Hall Council Chambers
located at 11 English Streer, Petaluma, CA 94952.
h. The time and place for the public hearing to establish the PTID and the levy of
assessments are set for December 3, 2018, at 6:45 PM, or as soon thereafter as the
matter may be heard, at the City Hall Council Chambers located at 11 English
Street, Petaluma, CA 94952, The City Clerk is directed to provide written notice
to the lodging businesses with 10 or more rooms subject to assessment of the date
and time of the meeting and hearing, and to provide that notice as required by
Resolution No. 2018-160 N.C.S. Page 6
Section 36623 of the Improvement Law, no later than October 16, 2018.
i. At the public meeting and hearing the testimony of all interested persons for or
against the establishment of the PTID will be received. If at the conclusion of the
public hearing, there are of record written protests by the owners of the lodging
businesses within the proposed PTID that will pay more than fifty percent (50%)
of the estimated total assessment of the entire PTID, no further proceedings to
establish the PTID shall occur for a period of one year.
6. If any section, subsection, sentence, clause, phrase or word of this resolution is for
any reason held to be unconstitutional, unlawful or otherwise invalid by a court of
competent jurisdiction or preempted by state legislation, such decision or legislation
shall not affect the validity of the remaining portions of this resolution. The City
Council of the City of Petaluma hereby declares that it would have passed and
adopted this resolution and each and all provisions thereof irrespective of the fact that
any one or more of said provisions be declared unconstitutional, unlawful or
otherwise invalid.
7. This resolution shall take effect immediately upon its adoption by the City Council.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the VppeoVd asto
Council of the City of Petaluma at a Regular meeting on the 15'h day of October m:
2018, by the following vote:
City Att%rney
AYES: Albertson, Barrett, Vice Mayor Healy, Kearney, King, Miller t
NOES: None
ABSENT: Mayor Glass
ABSTAIN: None
F
ATTEST:
4Cityerk =tom Vice Mayor
Resolution No. 2018-160 N.C.S. Page 7
Exhibit A
PETITION TO THE CITY COUNCIL OF THE CITY OF PETALUMA
TO FORM THE PETALUMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to form a Tourism Improvement District in accordance with the
Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et
seq., for the purpose of providing services as described in the summary of the Management District Plan
attached hereto as Exhibit A.
Lodging Establishment
Business Owner
Ind er1-le GGC�.
4e.1, Z/fir
Ids
Owner Representative/Owner Name (printed) Title
Own er/Re*re9-e-ntative Signature
I III -111111f
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to;
Carson Lambeth/Civltas
1102 Corporate Way
Sacramento, CA 95831
clambeth@civitasadvisors,com
(916) 437-4300
Resolution No. 2018-160 N.C.S. Page 8
PETITION TO THE CITY COUNCIL OF THE CITY OF PETALUMA
TO FORM THE PETALUMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to form a Tourism Improvement District in accordance with the
Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et
seq., for the purpose of providing services as described in the summary of the Management District Plan
attached hereto as Exhibit A.
Lodging Establishment
San Francisco North/Petaluma KOA
Business owner
San Francisco North/Petaluma Campgrounds Inc.
Vice President
Representative/Owner Name (printed) Title
Owner/Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to;
Carson Lambeth/Civitas
1102 Corporate Way
Sacramento, CA 95831
ciambeth@civitasadvisors.com
(916) 437-4300
Resolution No. 2018-160 N.C.S. Page 9
PETITION TO THE CITY COUNCIL OF THE CITY OF PETALUMA
TO FORM THE PETALUMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to form a Tourism Improvement District in accordance with the
Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et
seq,, for the purpose of providing services as described in the summary of the Management District Plan
attached hereto as Exhibit A.
Lodging Establishment Business Owner
Sheraton Sonoma County Marshall Young
745 Baywood Dr.
Petaluma, CA 94954
Marshall Young Owner
Owner Representative/Owner Name (printed) Title
10/3/18
0 n e r/Re presentative elgnat6 re Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to;
Carson Lambeth/Civitas
1102 Corporate Way
Sacramento, CA 95831
clambeth@civitasadvisors.com
(916) 437-4300
Resolution No. 2018-160 N.C.S.
Page 10
PETITION TO THE CITY COUNCIL OF THE CITY OF PETALUMA
TO FORM THE PETALUMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to form a Tourism Improvement District in accordance with the
Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et
seq., for the purpose of providing services as described in the summary of the Management District Plan
attached hereto as Exhibit A.
Lodging Establishment
Hotel Petaluma
205 Kentucky Street
Petaluma, CA 94952
Dustin Groff
Owner Representative/Owner Name (printed)
Business Owner
DiDak Patel
Satish Patel
General Manager
Title
9/28/2018
Owner/Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request, Requests for a
complete copy of the Management District Plan should be made to;
Carson Lambeth/Civitas
1102 Corporate Way
Sacramento, CA 95831
clambeth@civitasadvisors.com
(916) 437-4300
Resolution No. 2018-160 N.C.S. Page 11
PETITION TO THE CITY COUNCIL OF THE CITY OF PETALUMA
TO FORM THE PETALUMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to form a Tourism Improvement District in accordance with the
Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et
seq., for the purpose of providing services as described in the summary of the Management District Plan
attached hereto as Exhibit A.
Lodging Establishment
Business Owner
I !fit r t' a"", -
No cti(` CV, (cam! 1
Owner Representative/Owner Name (printed) Title
/Representative Signature
to
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a
complete copy of the Management District Plan should be made to:
Carson Lambeth/Civitas
1102 Corporate Way
Sacramento, CA 95831
clambeth@civitasadvisors.com
(916) 437-4300
Resolution No. 2018-160 N.C.S. Page 12
PETITION TO THE CITY COUNCIL OF THE CITY OF PETALUMA
TO FORM THE PETALUMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to form a Tourism Improvement District in accordance with the
Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et
seq,, for the purpose of providing services as described In the summary of the Management District Plan
attached hereto as Exhibit A.
Lodging Establishment
1� it �li� MAC4 X
Owner Representative/Owner Name (printed)
Owner/Representative Signature
Business Owner
- k �, LI, k m o w
OWK�yl'
Title
Date
A complete copy of the Management District Plan will be furnished upon request, Requests for a
complete copy of the Management District Plan should be made to:
Carson Lambeth/Civitas
1102 Corporate Way
Sacramento, CA 95831
clam beth@civitasadvisors,com
(916)437-4300
Resolution No. 2018-160 N.C.S. Page 13
PETITION TO THE CITY OF PETALUMA
TO FORM THE PETALUMA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to form a Tourism Improvement District in accorclancc, with the
Property and Business improvement District Law of 1994, Streets and Highways Code section 36600 et
seq., for the purpose of providing services as described in the summary of the Management District Plan
attached hereto is Exhibit A.
Lodging Establishment Business Owner
,j
Owner fie presentative/Owner Narne (printed)
III
Owner/Representative Signature
i
Title ---- __—
I j ('
Date
A completr; copy .of the fvt,mnagement Disrrict Plan will be furnished upon request. Requests for a
complete copy of the Management Distri�:t t'I�n should lin madr_ to:
Carson Lamheth/Civrtas
1102 Corporate Way
Sacramento, CA 95$31
clambet11@Civitasadvisors.com
(916) 437-43,00
Resolution No. 2018-160 N.C.S. Page 14