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HomeMy WebLinkAboutStaff Report 4.B 11/05/2018DATE: November 5, 2018 TO: Honorable Mayor and Members of the City Council FROM: John C. Brown, City Manager SUBJECT: Public Meeting Regarding the Proposed Formation of a Petaluma Tourism Improvement District RECOMMENDATION It is recommended the City Council conduct a public meeting regarding the proposed formation of a Petaluma Tourism Improvement District. No Council action is required. BACKGROUND The Property and Business Improvement District Law of 1994 (the 1994 Act) grants cities and counties the authority to establish and renew business improvement districts. The purpose of such districts is to levy assessments against property or businesses in the district, to raise funds within a specific geographic area, and to pay for the cost of certain activities and improvements benefitting property or businesses paying the assessment. Tourism Improvement Districts (TIDs) allow lodging and tourism -related business owners to organize their efforts to increase tourism. Lodging business owners within the district fund the TID, and use those funds to provide services that benefit those lodging businesses. A Management Plan governs the District. Funds are used to administer district activities per the Management Plan. Funds cannot be redirected to other programs and must be utilized in conformance with the Management Plan. Lodging industry representatives and the Petaluma Downtown Association (PDA) have requested that the City Council establish a TID in Petaluma to support tourism marketing. On July 16, 2018, the City Council agreed to initiate the process. of establishing a TID. In addition to the savings the City will obtain from transferring funding responsibility for the Petaluma Visitor's Program to the TID, the Council indicated a strong desire to receive TID monies to fund City improvements and programs to support tourism in Petaluma. The Council also directed the TID to cover the City's costs of program administration, and to reimburse staff time spent on the formation process. City staff then worked with lodging industry representatives, the PDA, and Civitas, the firm selected by those groups to assist them with forming the Petaluma Tourism Improvement District (PTID). Agreement was reached on a timeline that would establish the PTID on January 1, 2019. The Management Plan was developed to fund City projects and programs to support tourism, and to reimburse the City for administration for City staff time spent on the formation process. As drafted, the Management District Plan (The Plan) incorporates the interests and intentions of lodging industry and PDA representatives, and addresses City considerations. The Plan includes the proposed boundary of the PTID, a service plan and budget, quantifies an assessment, creates a proposed means of governance and collections, and sets a term. As proposed, the PTID will include, all lodging businesses with 10 or more rooms, existing and in the future, available for public occupancy within the boundaries of the City of Petaluma. The PTID will, based on current transient occupancy tax estimates, generate approximately $660,000 annually for promotion of travel and tourism specific to Petaluma. The total PTID annual budget for the initial year, of its five (5) year operation, is set using estimated revenues of $660,000. The budget is expected to fluctuate with room rentals, and as businesses open and close, and is divided into the following categories and amounts: • Marketing, Research and Communications, 60 percent ($396,000) • Destination Development, 17 percent ($112,200) • Administration/Advocacy, 16 percent ($105,600) • Contingency/Reserve, four (4) percent ($26,400) • City Administration, three (3) percent ($19,800) The proposed annual assessment is two percent (2%) of gross room rental revenue, reflects the same exceptions as are applicable to transient occupancy taxes, and will not be collected on stays pursuant to contracts executed prior to January 1, 2019. The Petaluma Lodging Association will serve as the PTID's Owner's Association. It will manage funds and implement programs in accordance with the 1994 Act. The Lodging Association will contract with a service to collect the assessment on a monthly basis from each lodging business inside PTID boundaries. The proposed PTID will have a five (5) year life, beginning January 1, 2019. Annually, business owners paying fifty percent (50%) or more of the assessment .would have a thirty -day period in which they may protest and begin proceedings to terminate the PTID. Pursuant to the 1994 Act, a petition asking the Council to form the TID is required of the lodging owners who will pay more than 50 percent of the proposed assessment. A petition and a copy of the proposed Plan were circulated to all lodging businesses with ten rooms or more, inside Petaluma City limits, in early October 2018. Petitions in favor of district formation were submitted by 9 hotels, representing 100% of the total PTID assessment. This majority allowed the City Council to initiate proceedings for PTID formation. 2 At its October 15, 2018 meeting, the City Council adopted Resolution No. 2018-160 N.C.S. 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. The resolution set a public meeting for November 5, 2018, and set a public hearing for December 3, 2018. DISCUSSION: The 1994 Act requires that written notice be mailed to all businesses within the PTID, 45 days before the December 3, 2018 hearing. This notice was mailed on October 16, 2018, and began the mandatory period in which owners may protest PTID formation. The public meeting scheduled for November 5, 2018 allows for public testimony on the establishment of the PTID and levy of assessments. Tonight's meeting serves that purpose, pursuant to the 1994 Act. No Council action is required at this meeting. At the December 3, 2018 hearing, if written protests are received from the owners of businesses in the proposed PTID which will pay more than fifty percent (50%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one (1) year from the date of the finding of a majority protest by the City Council. At the conclusion of the public hearing, the City Council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. If the City Council, following the public hearing, decides to establish the proposed PTID, the City Council will adopt a resolution of formation. As noted previously, a Management Agreement between the Petaluma Lodging Association and the City of Petaluma is necessary pursuant to the 1994 Act, and will be presented to the Council for consideration and action if the Council adopts the resolution of formation, and following the public hearing. FINANCIAL IMPACTS TID programs are intended to increase visits to the City, which may result in increased TOT and sales tax collections. Shifting responsibility for funding the Petaluma Visitors Program from the City to the TID Business Owner's Association will result in annual savings up to $248,000, based on the agreement with the Petaluma Downtown Association that expires in June 2019. The City will also receive an estimated $112,500 per year from TID proceeds, for "Destination Development" activities, and an estimated $19,800 per year to cover the cost of staff time spent on annual program administration. In the initial year of the TID, the City will also receive a one- time reimbursement of up to $18,800 for staff time spent on the formation process. ATTACHMENTS Resolution of Intent Resolution No. 2018160 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 I 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 cleric 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,S, 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" 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 PTLD 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; N'OW, 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, 3. 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 (3 0) 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 dmarketing 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 PTLD 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. RE , +RENCE: i hereby certify the foregoing Resolution was introduced and adopted by the ppjo��ed as to Council of the City of Petaluma at a Regular meeting on the 151h day of October o In, 2018, by the following vote: t City AUney AYES: Albertson, Barrett, Vice Mayor Healy, Kearney, King, Miller NOES: None ABSENT: Mayor Glass ABSTAIN: None f ATTEST: ..� City CYerk 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 sectlonB6600 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 /��4 A011 I n i1 P''a /v e" w t� F/� P�a,o er ��' e S ; 46c. A i /C/t Owner Representative/Owner Name (printed) Title Owner/Re-pre�entative signature Date A complete copy of the Management District Plan will befurnished 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@clvitasadvisors,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 Business Owner San Francisco, North/Petaluma KOA San Francisco North/Petaluma Campgrounds Inc. Vice President owngr Representative/owner Name (printed) Title epresentative 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/Cavitas 1102 Corporate Way Sacramento, CA 95831 clambeth@civltasadvisors, com (916) 4374300 ; 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 745 Baywood Dr, Petaluma, CA 94954 Marshall Young Marshall Young Owner Owner Representative/Owner Name (printed) 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/Cavitas 1102 Corporate Way Sacramento, CA 95831 clambeth@civitasadvisors.com (916) 437-4300 Resolution No. 2018-160 N. CS. 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. LodgingEstablishment Hotel Petaluma 205 Kentucky Street Petaluma, CA 94952 Dustin Groff Owner Representative/Owner Name (printed) Business Owner Dipak Patel Satish .Patel. General Manager Title Outiiin G,ob �.p 2.,lmr)l 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 ciambeth@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 PETAL.UMA 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 t° F r" u rte 5P(''IG`ppIu1TINo, !)`VSlj1J0-A Business Owner >`� o �� � cam(` n '� •— L l �i �- �>� • Owner Representative/Owner Name (printed) Title er/Representative Signature )o l l 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/Cavitas 1102 Corporate Way Sacramento, CA 95831 clambeth@civltasadvisors.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 I (�' �_ Ing a u Gln a owner Representative/owner Name owner/Representative Signature ntea) Business Owner VW�� Title Y�' 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@civitesadvisors,com (916) 4374300 Resolution No. 2018-160 N.C.S. Page 13 PETITION TO THE CITY OF PETALUMA TO FORM THE PETALUMA TOURISM IMPROVEMENT DISTRICT We petitlon 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 ....�,l� t-� � �� r �-�--1-----•- '{(` r e• 7 � 1, t--_._...�_� Owner Representative/owner Narne (printed) Owner/Representative Signature -- — Business Owner Title _. ...Dale-�.--•---�..__.. A complete; copy of the M.miagement District Plan will be tarnished upon request. Requests loi a rnmplett, copy of the Manapement District Plan should Lie mach? to: Carson Lambeth/C..iwtas 1102 Corporale Way Sacramento, CA 95831 ' cli]mbelhC�ClVilaildviit?rS.COm (916) 437.4,00 Resolution No. 2018-160N.C.S, Page 14 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 o'� 0 o }h«n Tia���� Owner Representative/Owner Narne (printed) Owner/Repr ntative Signature Business Owner J nhr►a�V) co I Title Date ,a r 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@civitasacivisors.com (916) 437-4300 EXHIBIT A MANAGEMENT DISTRICT PLAN SUMMARY Location: The proposed PTID includes all lodging businesses with 10 or more rooms located within the boundaries of City of Petaluma, as shown on the map in Section III. Services: The PTID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing, sales, communications, and destination development programs will increase overnight tourism and will market payors as tourist, meeting and event destinations, thereby increasing room night sales. Budget: The total PTID annual budget for the initial year, of its five (5) year operation, is anticipated to be approximately $660,000. The budget is expected to fluctuate as room sales do and as businesses open and close. Cost: The annual assessment rate is 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. Collection: The Petaluma Lodging Asscociation will be responsible for contracting with a service for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the PTID. The service shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The proposed PTID will have a five (5) year life, beginning January 1, 2019 through December 31, 2023. Once per year, beginning on the anniversary of PTID formation, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on PTID termination. Management: Petaluma Lodging Association will serve as the PTID's Owners' Association. The Owners' Association is charged with managing funds and implementing programs in accordance with this Plan and Streets and Highways Code Section 36600 et seq. The PLA is also required to enter an agreement or agreements with the City governing administration of the PTID, and the activities specified in the Management District Plan, including administration of the Petaluma Visitors Center. The PLA must also provide annual reports to the City Council concerning the PTID in accordance with the Streets and Highways Code.