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HomeMy WebLinkAboutAgenda Report - July 15, 2015 I-04 PHAGENDA ITEM SM4 CITY OF LODI { COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution of Intention to Establish the Lodi Tourism Business Improvement District; and Resolution Requesting Consent of the County of San Joaquin to Create the Lodi Tourism Business Improvement District MEETING DATE: July 15, 2015 PREPARED BY: Business Development Manager RECOMMENDED ACTION: Adopt Resolution of Intention to establish the Lodi Tourism Business Improvement District; and Resolution requesting consent of the County of San Joaquin to create the Lodi Tourism Business Improvement District. BACKGROUND INFORMATION: The existing Lodi Tourism Business Improvement District (District) was established on October 6, 2004 (Resolution of Intention No. 2004-191) and subsequently expanded on January 21, 2009 (Resolution of Intention No. 2008-229), respectively, pursuant to the Parking and Business Improvement Area Law of 1989 for the purpose of providing lodging partners with marketing programs to raise awareness of Lodi, sponsorship of special events that attract overnight visitors, and sales programs to bring in large -group business to generate additional overnight stays. This law provides that the District is renewed annually and the funding could cease in any given year if the City Council did not approve the annual report. As a result of this uncertainty, the Visit Lodi Conference and Visitors Bureau (Bureau) believes it is hampered in its efforts to implement long-range and larger -scale marketing and visitor - attraction programs. For this reason, lodging businesses and the Bureau propose to disestablish the existing District and create a new District pursuant to the Property and Business Improvement District Law of 1994. The District is currently funded by a combination of sources, including the current 3 percent Tourism Business Improvement District fee and a three year contract with the City of Lodi for a 19 percent share of the City's 6 percent Transient Occupancy Tax. The contract value is estimated to total $114,000 annually for the FY2014/2015 and FY2015/2016 budget years. With two of the three years remaining in the contract, City staff and the Bureau have agreed that City funding will terminate (and be replaced by the proposed 1'h percent District fee increase) at expiration of the existing contract if the new District is established. Current Situation The proposed Lodi Tourism Business Improvement District (District) is a benefit assessment district that would continue to help fund marketing and sales promotion efforts for Lodi lodging businesses. The District will be guided by a management district plan developed and approved by the stakeholders who signed petitions in support. Stakeholder support to initiate the formation of the district must be from those who will pay at least 50 percent of the proposed assessment. The proposed District has a term of five years and its governing body is chosen by stakeholders. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights. The A, trio", 0 mul 6 1 am's IM proposed District includes all lodging businesses located within the boundaries of the City of Lodi and a portion of the unincorporated area of San Joaquin County, County Service Area No. 31 (Flag City). The boundaries for the new District will remain the same as the existing Lodi Tourism Business Improvement District formed under the 1989 Act. Hoteliers decided to pursue formation of the new District in order to create a stable revenue source devoted to marketing Lodi as a tourist, meeting and event destination. The proposed annual assessment rate is 4'/z percent for lodging businesses in the City of Lodi and 3 percent for lodging businesses in the unincorporated area of San Joaquin County of gross short-term (stays less than 31 days) room rental revenue. The annual assessment rate in the City of Lodi would increase by 1'/2 percent from the current 3 percent with the establishment of the new District. The increase in the proposed annual assessment will allow the district to remain competitive in the tourism landscape. Tourism Business Improvement Districts (TBIDs) have expanded in California creating a competitive environment between destinations to attract visitors. The County assessment will remain at 3 percent. The stakeholders located in the County Service Area No. 31 will receive less specific benefit than stakeholders in the City of Lodi. If established, the District would generate approximately $538,000 from this fee on an annual basis to be used for promotion of travel and tourism specific to Lodi. Tourism Business Improvement Districts TBIDs utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging and tourism -related business owners to organize their efforts to increase tourism. Tourism -related business owners within the district fund the District, and those funds are used to provide services that the businesses desire and that benefit the lodging businesses within the District. District Benefits: ➢ Funds cannot be diverted for other government programs ➢ They are customized to fit the needs of each destination ➢ They allow for a wide range of services; including: Marketing of the Destination, Tourism Promotion Activities and Sales Lead Generation ➢ They are designed, created and governed by those who will pay the assessment ➢ They provide a stable funding source for tourism promotion In California, TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a special benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district. Management District Plan The Management District Plan (Attachment 2) includes the proposed boundary of the District, a service plan and budget and a proposed means of governance. The District will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Lodi and a portion of the unincorporated area of San Joaquin County, County Service Area No. 31 (Flag City). The proposed District will have a five-year life. The assessment will be implemented beginning October 1, 2015. Once per year, beginning on the anniversary of District formation, there is a 30 -day period in which business owners paying more than 50 percent of the assessment may protest and begin proceedings to terminate the district. The City will be responsible for collecting the assessment on a quarterly basis from each lodging business located within the District boundaries. The City will forward the assessments to the Lodi Conference & Visitors Bureau, which will have the responsibility of managing District programs as provided in this Management District Plan. The City will be paid a fee equal to 3% percent of the amount of assessment collected to cover their costs of collection and administration. Next Steps Subsequent to.adoption of the Resolution of Intention, a public meeting will be scheduled for August 5, 2015, at which Council. shall allow public testimony regarding the proposed assessment and a publichearing on September 2, 2015, at which Council shall make a finding regarding the existence of a majority protest on the formation of the Lodi Tourism Business Improvement District and the levy of assessments on lodging businesses. If adopted, the Resolution Requesting Consent will be forwarded to the County Board of Supervisors, requesting inclusion of County Service Area No. 31 (Flag City) in the proposed District. The Board of Supervisors may then consider adopting a resolution granting their consent. (See Attachment 1, "District Formation Process.") FISCAL IMPACT: None immediately. The City will receive a fee of 3% percent of the amount collected to cover its costs of administration. Because the district programs are intended to increase visitation to the City, there may be an increase in transient occupancy tax and sales tax collections. In addition, the City will retain its full share of transient occupancy tax after the last two years of the contract with the Visit Lodi Conference and Visitors Bureau expire. FUNDING AVAILABLE: Not applicable. m rUC.er Business Development Manager ATTACHMENT 1 DISTRICT FORMATION PROCESS July 15, 2015 RESOLUTION OF INTENTION HEARING Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the City Council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. Petition Status: Petitions in favor of district formation were submitted by 11 hotels, which represent 94.92% of the total district assessment. This majority petition allows the Council to initiate proceedings for district formation at the July 15, 2015 meeting. (See Attachment 1, Exhibit A.) The Resolution of Intention and Resolution Requesting the Consent of San Joaquin County will be adopted at this hearing. July 16, 2015 NOTICE The Property and Business Improvement District Act of 1994 requires the City mail written notice to the owners of all businesses proposed to be within the district. Mailing the notice begins a mandatory forty-five day period in which owners may protest district formation. August 5, 2015 PUBLIC MEETING Allow public testimony on the establishment of the District and levy of assessments. No council action required. September 2, 2015 FINAL PUBLIC HEARING If written protests are received from the owners of businesses in the proposed district which will pay more than 50 percent of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of one year from the date of the finding of a majority protest by the Council. At the conclusion of the public hearing to establish the district, the 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 Council, following the public hearing, decides to establish the proposed property and business improvement district, the Council shall adopt a resolution of formation. ATTACHMENT 1, EXHIBIT A Each of the following lodging businesses submitted a Petition to the City of Lodi to Form the Lodi Tourism Business Improvement District: Business Address Owner/Representative Best Western 1-5 Inn & Suites 6411 W Banner Street Rajiv Jain Best Western Royal Host Inn 710 S Cherokee Lane Amita Kotecha Econo Lodge Inn & Suites 118 N Cherokee Lane Sann Hospital it/Jana Patel Hampton Inn & Suites 1337 S Beckman Road Daryl Geweke Holiday Inn Express 1337 E Kettleman Lane Beth Kim Hutchins House VRBO 705 W Oak Street Marne Simpson Lodi Carriage House 311 '/z W Oak Street Tom Azevedo Microtel Inn & Suites 6428 W Banner Street Rajiv Jain Motel 6 1140 S Cherokee Lane Yo esh Patel Sandier Guest House 551 Sandier Circle Annette and Gordon Mackay Wine & Roses, LLC 2505 W Turner Road Russ Munson I 34, a�,••�F �i• y .y �, ..��s�_.'i,`"r.i . � `'�.'�+LrdY,�,wR;• _�7a9q4�tr,� vt�o��At },1�r.,. �pyr,� ��, ru-Y'�r'.;�.�Y'�wtl;':.+�'-rYF� �,��T 4F�,`.�C���_: �w�'H�a�� ia.a,v �-res��.i�i:"���� i�r'4 �k�.�".�. ,;a.�``��.e+��' `�'kS���<`...Y• y ?�: ; 3{. ` a LODI TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. CONTENTS I. OVERVIEW...............................................................................................................................................1 II. IMPETUS....................................................................................................................................................2 III. BACKGROUND.......................................................................................................................................3 IV. BOUNDARY.............................................................................................................................................4 V. BUDGET AND SERVICES...................................................................................................................5 A. Annual Service Plan............................................................................................................ 5 B. Annual Budget..................................................................................................................... 7 C. California Constitutional Compliance................................................................................. 7 D. Assessment..........................................................................................................................8 E. Penalties and Interest........................................................................................................... 9 F. Time and Manner for Collecting Assessments.................................................................... 9 VI. GOVERNANCE....................................................................................................................................10 A. Owners' Association......................................................................................................... 10 B. Brown Act and California Public Records Act Compliance ............................................. 10 C. Annual Report................................................................................................................... 10 APPENDIX1 — LAW....................................................................................................................................11 APPENDIX 2 — ASSESSED BUSINESSES............................................................................................. 22 Prepared by Civitas ...I'Y..1­ T.. A . i (800)999-7781 www.civitasadvisors.com I. OVERVIEW Developed by the Visit Lodi! Conference and Visitors Bureau (the Bureau), the Lodi Tourism Business Improvement District (LTBID) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. Location: The proposed LTBID includes all lodging businesses located within the boundaries of the City of Lodi and a portion of the unincorporated area of San Joaquin County referred to as County Service Area #31, also known as "Flag City", as shown on the map in section IV. Services: The LTBID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales. Budget: The total LTBID annual budget for the initial year of its five (5) year operation is anticipated to be approximately $538,000. This budget is expected to fluctuate as room sales do, but is not expected to significantly change over the LTBID's term. Cost: The annual assessment rate is four and one half percent (4.5%) for lodging businesses in the City of Lodi, and three percent (3%) for lodging businesses in the unincorporated area of San Joaquin County, of gross short-term (stays less than 31 days) room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days. Assessments pursuant to the LTBID shall not include room rental revenue resulting from stays pursuant to contracts executed prior to October 1, 2015. Collection: The City will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the LTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The proposed LTBID will have a five (5) year life, beginning October 1, 2015 through September 30, 2020. Once per year beginning on the anniversary of district formation there is a 30 -day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on district termination. Management: The Visit Lodi! Conference and Visitors Bureau will serve as the LTBID's Owners' Association. The Owners' Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council. Management District Plan 1 June 15, 2015 II. IMPETUS There are several reasons why now is the right time to form a Tourism Business Improvement District (TBID) in Lodi; the most compelling reasons are as follows: 1. The Need to Increase Occupancy The formation of the LTBID is a proactive effort to provide supplemental funding beyond that currently provided by the City. The funding will ensure that adequate financing exists for the investment required to increase occupancy in the lodging industry and be competitive in the conference segment of the tourism market. The investment will cover an expanded marketing and promotional budget needed to reach this market segment. 2. An O. _Portunio for Increasing City Tax Revenues As occupancy rates increase, so too will the City's transient occupancy tax revenue. With stable public/private funding for tourism marketing efforts, annual occupancy rates should increase significantly as new marketing and sales promotion programs are implemented. Greater occupancy will also produce an increase in sales tax revenues from tourist spending. This represents a substantial return to the City. The formation of the LTBID in partnership with the the Bureau creates a stable funding source tied directly to tourism promotion. 3. Stable Funding for Tourism Promotion The LTBID will provide funding for tourism promotion free of the political and economic circumstances that can reduce or eliminate government funding for tourism promotion. Management District Plan 2 June 15, 2015 III. BACKGROUND Tourism Business Improvement Districs (TBIDs) are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over eighty California destinations have followed suit. In recent years, other states have begun adopting the California model — Washington, Montana, and Texas have adopted TBID laws. Several other states are in the process of adopting their own legislation. And, some cities, like Portland, Oregon, have utilized their charter powers to create TBIDs without a state law. 90 80 70 60 50 40 30 20 10 0 Number of CA Districts Operating Per Year 88 N N N N N N N N N N N N N N N �G �G O O O O O O O O O O O O O O O are used to provide services that increase room night sales. California's TBIDs collectively raise over $150 million for local destination marketing. With competitors raising their budgets, and increasing rivalry for visitor dollars, it is important that Lodi lodging businesses invest in stable, lodging -specific marketing pro- grams. TBIDs utilize the efficiencies of private sector operation in the market-based promotion of tourism districts. TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds In California, TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that unds raised are returned to the private non-profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services; • They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. Management District Plan 3 June 15, 2015 IV. BOUNDARY The LTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Lodi and a portion of the unincorporated area of San Joaquin County, County Service Area #31 also known as "Flag City". Lodging business means: Any structure or any portion of any structure which is occupied or intended or designed for the occupancy by transients for dwelling, lodging or sleeping purposes and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobilehome or house trailer at a fixed location or other similar structure or portion thereof. The boundary, as shown in the map below, currently includes twenty-seven (27) lodging businesses. A complete listing of lodging businesses within the proposed LTBID can be found in Appendix 2. Management District Plan 4 June 15, 2015 V. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the LTBID funds are sales and marketing programs available only to assessed businesses. A service plan budget has been developed to deliver services that benefit businesses throughout the District. A detailed annual budget will be developed and approved by the Bureau. The table below illustrates the initial annual budget allocations. The total initial budget is $538,000. Initial Year Annual Budget - $538,000 Contingency, Vi Er Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the Bureau board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the LTBID, any and all assessment funds may be used for the costs of defending the LTBID. Each budget category includes all costs related to providing that service, in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the Bureau on an as- needed basis. Management District Plan June 15, 2015 Sales, Marketing, and Communications A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting Lodi as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities: • Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Television ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Attendance of trade shows to promote assessed businesses; • Sales blitzes for assessed businesses; • Familiarization tours of assessed businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses; • Attendance of professional industry conferences and affiliation events to promote assessed businesses; • Lead generation activities designed to attract tourists and group events to assessed businesses; • Sponsorship of events that attract tourist and groups to assessed businesses; • Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses; • Education of hospitality staff on service and safety (related to alcohol and food) designed to create a visitor experience that will bring repeat visits to assessed businesses; and • Education of lodging business management and the owners' association on marketing strategies best suited to meet assessed business's needs. Administration and Operations The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees. Visitor Service Enhancements The Visitor Services Enhancement (VSE) program will provide potential funding for programs and initiatives based on criteria to be developed by the LTBID. The focus of the VSE program will be on the entire destination brand footprint to ensure a consistent brand experience throughout LTBID. VSE may include: • A long term ambassador program with trained staff that supplements the current level of police presence around assessed businesses and encourages overnight visitation; • Welcome Center and Kiosk improvements including new technology -driven visitor information enhancements; and • Brand -centric visitor services training program for both public and private sector staff. Management District Plan 6 June 15, 2015 Contingency/ Renewal A prudent portion of the budget will be allocated to a contingency fund, to account for lower than anticipated collections or higher than anticipated program costs. If there are contingency funds collected and near the expiration of the district there are contingency funds remaining, and business owners wish to renew the district, the contingency funds may be used for renewal costs. City Administration Fee The City shall be paid a fee equal to three and one quarter percent (3.25%) of the amount of assessment collected, to cover its costs of collection and administration. B. Annual Budget The total five (5) year improvement and service plan budget is projected at approximately $538,000 annually, or $2,690,000 through 2020. This amount may fluctuate as sales and revenue increase at assessed businesses, but is not expected to change significantly over the term. C. California Constitutional Compliance The LTBID assessment is not a property -based assessment subject to the requirements of Proposition 218. The Court has found, "Proposition 218 limited the term `assessments' to levies on real property."' Rather, the LTBID assessment is a business -based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the LTBID, a "specific benefit" and a "specific government service." Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, "a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."2 The services in this Management District Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the District. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the District, and are narrowly tailored. LTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. For example, assessment funds shall not be used to feature non -assessed lodging businesses in LTBID programs. Further, assessment funds shall not be used to directly generate sales for non -assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. The assessment imposed by this District is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing and sales programs promoting lodging businesses paying the district assessment. The ' Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § l(e)(1) Management District Plan June 15, 2015 7 marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration, collection and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses. Assessed businesses within "Flag City" will receive a lower level of District services than assessed businesses within the City of Lodi. Because of the difference in the level of services provided to "Flag City" businesses, they will be pay a lower assessment rate. Although the District, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, "A specific benefit is not excluded from classification as a `specific benefit' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.,,3 2. Specific Government Service The assessment may also be utilized to provide, "a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product. ,4 The legislature has recognized that marketing and promotions services like those to be provided by the LTBID are government services within the meaning of Proposition 265. Further, the legislature has determined that "a specific government service is not excluded from classification as a `specific government service' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor. ,6 3. Reasonable Cost District services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the Owners' Association, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from district -funded activities, be featured in advertising campaigns, and benefit from other district -funded services. Non -assessed lodging businesses will not receive these, nor any other, district -funded services and benefits. The District -funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non -assessed businesses. If non -assessed lodging businesses receive incremental room nights, that portion of the promotion or program directly generating those room nights shall be paid with non -District funds. LTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which generates incidental room nights for non -assessed businesses. D. Assessment The annual assessment rate is four and one half percent (4.5%) within the City of Lodi and three percent (3%) in the unincorpoorated areas of San Joaquin County of gross short term (stays less 3 Government Code section 53758(a) 4 Cal. Const. art XIII C § l(e)(2) 5 Government Code section 53758(b) 6 Government Code section 53758(b) Management District Plan June 15, 2015 than 31 days) room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days. Assessments pursuant to the LTBID shall not include room rental revenue resulting from stays pursuant to contracts executed prior to October 1, 2015. The term "gross room rental revenue" as used herein means: The consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be disclosed as the "LTBID Assessment." The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purposes, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest 1. Any lodging business which fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment. 2. Any lodging business which fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in additional to the amount of the assessment and the ten percent (10%) penalty first imposed. 3. If the City determines that the nonpayment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties states in subsections 1 and 2 of this section. 4. In addition to the penalties imposed, any lodging business which fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent (0.5%) per month or fraction thereof on the amount of the assessment exclusive of penalties, from the date on which the remittance first became delinquent until paid. 5. Every penalty imposed and such interest as accrues shall become a part of the assessment required to be paid. F. Time and Manner for Collecting Assessments The LTBID assessment will be implemented beginning October 1, 2015 and will continue for five (5) years through September 30, 2020. The City will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the LTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners' Association. Management District Plan 9 June 15, 2015 VI. GOVERNANCE A. Owners' Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners' Association of the LTBID as defined in Streets and Highways Code §36614.5. The City Council has determined that the Visit Lodi! Conference and Visitors Bureau will serve as the Owners' Association for the LTBID. B. Brown Act and California Public Records Act Compliance An Owners' Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners' Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners' Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the Bureau board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners' Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners' Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The Bureau shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. Management District Plan 10 June 15, 2015 APPENDIX 1— LAW STREETS AND HIGHWAYS CODE Division 18. Parking Part 7. Property and Business Improvement District Law of 1994 Cal Sts & Hy Code Div. 18, Pt. 7 Note (2015) *** This document is current through the 2015 Supplement *** (All 2014 legislation) 36600. Citation of part This part shall be known and may be cited as the "Property and Business Improvement District Law of 1994." 36601. Legislative findings and declarations The Legislature finds and declares all of the following: (a) Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d) Assessments levied for the purpose of conferring special benefit upon the real property or businesses in a business district are not taxes for the general benefit of a city, even if property or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1) Crime reduction. A study by the Rand Corporation has confirmed a 12 -percent reduction in the incidence of robbery and an 8 -percent reduction in the total incidence of violent crimes within the 30 districts studied. (2) Job creation. (3) Business attraction. (4) Business retention. (5) Economic growth. (6) New investments. (f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property -based districts. Article XIII D of the Constitution provides that property - based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature's guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property -based districts. (1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property - based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special Management District Plan 11 June 15, 2015 benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property -based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property -based assessments, and the manner in which special benefits should be determined. 36602. Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604. Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes. 36606. "Activities" "Activities" means, but is not limited to, all of the following that benefit businesses or real property in the district: (a) Promotion of public events. (b) Furnishing of music in any public place. (c) Promotion of tourism within the district. (d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed businesses and real property located in the district. 36606.5. "Assessment" "Assessment" means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607. "Business" Management District Plan 12 June 15, 2015 "Business" means all types of businesses and includes financial institutions and professions. 36608. "City" "City" means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. "City council" "City council" means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. "Clerk" "Clerk" means the clerk of the legislative body. 36609.5. "General benefit" "General benefit" means, for purposes of a property -based district, any benefit that is not a "special benefit" as defined in Section 36615.5. 36610. "Improvement" "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms. (d) Lighting and heating facilities. (e) Decorations. (f) Parks. (g) Fountains. (h) Planting areas. (i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the area. (k) Ramps, sidewalks, plazas, and pedestrian malls. (1) Rehabilitation or removal of existing structures. 36611. "Management district plan"; "Plan" "Management district plan" or "plan" means a proposal as defined in Section 36622. 36612. "Owners' Association" "Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. Management District Plan 13 June 15, 2015 36614. "Property" "Property" means real property situated within a district. 36614.5. "Property and business improvement district"; "District" "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part. 36614.6. "Property -based assessment" "Property -based assessment" means any assessment made pursuant to this part upon real property. 36614.7. "Property -based district" "Property -based district" means any district in which a city levies a property -based assessment. 36615. "Property owner"; "Business owner"; "Owner" "Property owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. "Business owner" means any person recognized by the city as the owner of the business. "Owner" means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. "Special benefit" "Special benefit" means, for purposes of a property -based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property -based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. 36616. "Tenant" "Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. 36617. Alternative method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part. 36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council Management District Plan 14 June 15, 2015 A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following: (1) A map showing the boundaries of the district. (2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following: (1) 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 or businesses within the district, 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. The descriptions and statements do not need to be detailed and shall be sufficient if they 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. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. Contents of management district plan The management district plan shall include, but is not limited to, all of the following: (a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district. (c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year's proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. (e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated Management District Plan 15 June 15, 2015 based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources 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 or business. The plan also shall state whether bonds will be issued to finance improvements. (g) The time and manner of collecting the assessments. (h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) (1) A list of the properties or businesses to be assessed, including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property -based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property -based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property -based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (1) In a property -based district, the total amount of all special benefits to be conferred upon the properties located within the property -based district. (m) In a property -based district, the total amount of general benefits, if any. (n) In a property -based district, a detailed engineer's report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment (a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall 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. A written protest 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 person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. Management District Plan 16 June 15, 2015 (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments At the conclusion of the public hearing to establish 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 revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation (a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following: (1) 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, 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. The descriptions and statements need not be detailed and shall be sufficient if they 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. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) 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. The revenue from the levy of assessments within a district shall not be used to provide 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. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property -based district, that property within the district will receive a special benefit. (8) In a property -based district, the total amount of all special benefits to be conferred on the properties within the property -based district. (b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. 36626. Resolution establishing district If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627. Notice and assessment diagram Management District Plan 17 June 15, 2015 Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part. 36631. Time and manner of collection of assessment; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property (a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. Management District Plan 18 June 15, 2015 36633. Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention; Modification of improvements and activities by adoption of resolution after public hearing (a) Upon the written request of the owners' association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. Management District Plan 19 June 15, 2015 (c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. 36650. Report by owners' association; Approval or modification by city council (a) The owners' association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners' association's first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information: (1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c) The city council may approve the report as filed by the owners' association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners' association to provide improvements and activitites The management district plan may, but is not required to, state that an owners' association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners' association, the city shall contract with the designated nonprofit corporation to provide services. 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. 36670. Circumstances permitting disestablishment of district; Procedure Management District Plan 20 June 15, 2015 (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances: (1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30 -day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30 -day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the area who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestab-lishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. Management District Plan 21 June 15, 2015 APPENDIX 2 - ASSESSED BUSINESSES BUSINESS ADDRESS CITY STATE ZIP NAME Wine and Roses 2505 West Lodi CA 95242 LLC Turner Rd. Del Rancho 501 North Lodi CA 95240 Motel Cherokee Ln. Motel 6 1140 South Lodi CA 95241 Cherokee Ln. Star Hotel 22 South Main Lodi CA 95240 St. Budget Inn of 917 South Lodi CA 95240 Lodi Cherokee Ln. Econo Lodge 118 North Lodi CA 95240 Inn & Suites Cherokee Ln. Lodi El Rancho 603 North Lodi CA 95240 Motel Cherokee Ln. Modern Motor 1050 South Lodi CA 95240 Lode Cherokee Ln. Wine Country 607 South Lodi CA 95240 Inn Cherokee Ln. Rancho Grande 807 South Lodi CA 95240 Motel Cherokee Ln. Traveler's Hotel 112 North Lodi CA 95240 School St. Viking Motel 815 South Lodi CA 95240 Cherokee Ln. Royal Host Inn 710 South Lodi CA 95240 Cherokee Ln. Imperial Hotel 9 West Oak St. Lodi CA 95240 Economy Inn 1100 South Lodi CA 95240 Cherokee Ln. Main Hotel 4 South Main St. Lodi CA 95240 Hampton Inn & 1337 South Lodi CA 95241 Suites Beckman Rd. Best Western I- 6411 West Lodi CA 95242 5 Inn Banner Rd. Microtel Inn & 6428 West Lodi CA 95242 Suites Banner St. Holiday Inn 1337 East Lodi CA 95240 Express Kettleman Ln. Golden Era 18 South Main Lodi CA 95240 St. Hutchins House 705 West Oak Lodi CA 95240 Vacation Rental St. Colleen's 306 Bella Vista Lodi CA 95242 Cottage Dr. Merlot 430 Elm St. Lodi CA 95240 Bungalow The Carriage 311 Y2 West Lodi CA 95240 House Vacation Oak St. Rental Sandpiper 551 Sandpiper I Lodi CA 95240 Management District Plan 22 June 15, 2015 Circle Cr. Bella Vino B&B 235 South Hutchins St. Lodi CA 95240 Management District Plan 23 June 15, 2015 RESOLUTION NO. 2015-120 A RESOLUTION OF THE LODI CITY COUNCIL DECLARING ITS INTENTION TO ESTABLISH THE LODI TOURISM BUSINESS IMPROVEMENT DISTRICT (LTBID) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code Section 36600 et seq., authorizes the City to establish business improvement districts for the purposes of promoting tourism; and WHEREAS, the Lodi Conference and Visitors Bureau, lodging business owners, and representatives from the City of Lodi have met to consider the formation of the Lodi Tourism Business Improvement District (LTBID); and WHEREAS, the Lodi Conference and Visitors Bureau has drafted a Management District Plan (Plan) which sets forth the proposed boundary of the LTBID, a service plan and budget, and a proposed means of governance; and WHEREAS, the proposed district includes lodging businesses in the County of San Joaquin; and WHEREAS, consent to include lodging businesses in its jurisdiction will be requested from the County of San Joaquin; and WHEREAS, lodging business that will pay more than fifty percent (50%) of the assessment under the LTBID have petitioned the City Council to establish the LTBID. NOW, THEREFORE, BE IT RESOLVED BY THE LODI CITY COUNCIL THAT: 1. The recitals set forth herein are true and correct. 2. The City Council finds that lodging businesses 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 LTBID. The City Council accepts the petitions and adopts this Resolution of Intention to establish the LTBID and to levy an assessment on certain lodging businesses within the LTBID boundaries in accordance with the Property and Business Improvement District Law of 1994. 3. The City Council finds that the Plan satisfies all requirements of Streets and Highways Code §36622. 4. The City Council declares its intention to establish the LTBID and to levy and collect assessments on lodging businesses within the LTBID boundaries pursuant to the Property and Business Improvement District Law of 1994. 5. The LTBID shall include all lodging businesses located within the boundaries of the City of Lodi and a portion of the unincorporated area of San Joaquin County, as shown in the map attached as Exhibit A. 6. The name of the district shall be the Lodi Tourism Business Improvement District (LTBID). 7. The annual assessment rate is four and one half percent (4.5%) for lodging businesses in the City of Lodi and three percent (3%) for lodging businesses in the unincorporated area of San Joaquin County of gross short-term (stays less than 31 days) room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days. Assessments pursuant to the LTBID shall not include room rental revenue from stays pursuant to contracts executed prior to October 1, 2015. 8. The assessments levied for the LTBID shall be applied toward sales promotion and marketing programs to market assessed lodging businesses within the LTBID as tourist, meeting, and event destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which LTBID assessments are levied as long as they are used consistent with the requirements of this resolution and the Plan. 9. The proposed LTBID will have a five-year term, beginning October 1, 2015 through September 30, 2020, unless renewed pursuant to Streets and Highways Code Section 36660. 10. Bonds shall not be issued. 11. The time and place for the public meeting to hear testimony on establishing the LTBID and levying assessments are set for August 5, 2015, at 7:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at Carnegie Forum, 305 W. Pine Street, Lodi, California, 95240. 12. The time and place for the public hearing to establish the LTBID and the levy of assessments are set for September 2, 2015, at 7:00 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at Carnegie Forum, 305 W. Pine Street, Lodi, California, 95240. The City Clerk is directed to provide written notice to the lodging businesses subject to assessment of the date and time of the August 5, 2015 meeting and September 2, 2015 hearing, and to provide that notice as required by Streets and Highways Code Section 36623, no later than July 17, 2015. 13. At the public meeting and hearing, the testimony of all interested persons for or against the establishment of the LTBID may 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 LTBID that will pay more than fifty percent (50%) of the estimated total assessment of the entire LTBID, no further proceedings to establish the LTBID shall occur for a period of one year. 14. The complete Plan is on file with the City Clerk and may be reviewed upon request. 15. This resolution shall take effect immediately upon its adoption by the City Council. Dated: July 15, 2015 hereby certify that Resolution No. 2015-120 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 15, 2015, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Kuehne, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None ATTEST: ' ' • • City Clerk BOB JO' Mayor 2015-120 3 rice Flag City EXHIBIT A District Boundaries 12 RESOLUTION NO. 2015-121 A RESOLUTION OF THE LODI CITY COUNCIL REQUESTING CONSENT OF THE COUNTY OF SAN JOAQUIN TO CREATE THE LODI TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, the City Council of the City of Lodi desires to begin proceedings to form the Lodi Tourism Business Improvement District ("LTBID"); and WHEREAS, certain tourism business owners have requested that the City Council ("the Council') of the City of Lodi ("the City") create the LTBID; and WHEREAS, a portion of the territory, County Service Area No. 31 also known as "Flag City," proposed to be included in the LTBID lies within the boundaries of the County of San Joaquin ("the County"), as shown on the map attached hereto as Exhibit A and incorporated herein by such attachment; and WHEREAS, the area of the County which lies within the boundaries of the proposed LTBID will, in the opinion of the Council, be benefited by the improvements and activities, and the purpose sought to be accomplished by the work can best be accomplished be a single comprehensive scheme of work. NOW, THEREFORE, be it resolved by the City Council of the City of Lodi that: Section 1: The above recitals are true and correct. Section 2: Consent of the County, through its Board of Supervisors, is hereby requested to create the LTBID, and to grant to the Council jurisdiction for all the purposes in connection with creation, operation and future renewals of the proposed LTBID. Section 3: The City Clerk is hereby directed to transmit a certified copy of this Resolution to the Clerk of the Board of the County of San Joaquin. Dated: July 15, 2015 I hereby certify that Resolution No. 2015-121 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 15, 2015, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Kuehne, Mounce, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — Nom ATTEST: J NIFER No FERRAIOLO City Clerk 2015-121 Exhibit A Boundary Map LODI TOURISM BUSINESS IMPROVEMENT DISTRICT Recommended Action: ■Adopt Resolution of Intention to Establish the Lodi Tourism Business Improvement District, and; ■Adopt Resolution Requesting Consent of the County of San Joaquin to Create the Lodi Tourism Business Improvement District EXISTING ■ Established in 2004 ■ Marketing, Special Events, Sales Programs for Lodging Businesses ■ City Limits and County Service Area No. 31 (Flag City) ■ Funding ■ 3% assessment on lodging businesses (City and County) ■ 19% of the City's 6% Transient Occupancy Tax (TOT) - 3 year agreement ■ Visit Lodi Conference and Visitors Bureau ■ City Collection of Assessments ■ Quarterly basis; 5% fee ■ Annual Reporting and Renewal PROPOSED ■ Fall 2015 ■ Marketing, Special Events, Sales Programs for Lodging Businesses ■ City Limits and County Service Area No. 31 (Flag City) ■ Funding ■ 4.5% assessment on lodging businesses (City) ■ 3% assessment on lodging businesses (County) ■ 19% of the City's 6% Transient Occupancy Tax (TOT) - 3 year agreement ■ City and Bureau agree that funding would cease at agreement expiration ■ City Collection ■ Quarterly basis; 3.25% fee ■ Annual Reporting ■ Management District Plan with Five -Year Initial Life ■ Parking and Business Improvement Area Law of 1989 ■ Contingent upon the absence of a majority protest (by those who would be paying more than 50% of the assessment) ■ No Management District Plan ■ Advisory Board Responsibility for Annual Reporting ■ Annual Renewal ■ Property and Business Improvement District Law of 1994 ■ Requires submission of written petitions from those who would be paying more than 50% of the assessment ■ Management District Plan with a maximum 5 year initial district life ■ Owners Association Responsibility for Annual Reporting Next Steps ■July 16, 2015 ■ City Clerk to mail out written notice to all of the businesses within the proposed District area. Initiates 45 -day protest period. ■ August 2, 2015 ■ Public Meeting ■ September 2, 2015 ■ Council to consider adopting a Resolution of Formation Recommended Action: ■Adopt Resolution of Intention to Establish the Lodi Tourism Business Improvement District; and ■Adopt Resolution Requesting Consent of the County of San Joaquin to Create the Lodi Tourism Business Improvement District ti: ictl T ■ � QUESTIONS? July 15, 2015 City Council Item: 1-04 DECLARATION OF MA LIN �qt�� R�~�OFA V Al NOTICE OF PUBLIC MEETING AND PUBLIC HEARING CONCERNING THE ESTABLISHMENT OF THE LODI TOURISM BUSINESS IMPROVEMENT DISTRICT AND LEVY OF AN ASSESSMENT ON CERTAIN LODGING BUSINESSES WITHIN THE DISTRICT On Thursday, July 16, 2015, at 8:30 a.m., Tahirah Preston, Administration Assistant for Civitas, 1102 Corporate Way, Suite 140, Sacramento, California, deposited in the United States mail, envelopes with first-class postage prepaid thereon, containing a notice of Public Meeting and Public Hearing concerning the establishment of the Lodi Tourism Business Improvement District and levy of an assessment of certain lodging businesses within the District, attached hereto Marked Exhibit A. The mailing list for said matter is attached hereto, marked Exhibit B. Forms/decmail.doc EEX�FiIBIT A NOTICE OF PUBLIC MEETING AND PUBLIC HEARING CONCERNING THE ESTABLISHMENT OF THE LODI TOURISM BUSINESS IMPROVEMENT DISTRICT AND LEVY OF AN ASSESSMENT ON CERTAIN LODGING BUSINESSES WITHIN THE DISTRICT NOTICE IS HEREBY GIVEN that on July 15, 2015, the City Council (the "Council") of the City of Lodi (the "City") adopted a Resolution of Intention to establish the Lodi Tourism Business Improvement District (the "LTBID") and to levy an assessment on certain lodging businesses within the LTBID as set forth in the attached Resolution of Intention. NOTICE IS HEREBY FURTHER GIVEN that at 7:00 PM on August 5, 2015, at the City of Lodi Council Chambers, Carnegie Forum, 305 W. Pine Street, Lodi, CA 95240, a public meeting shall be held pursuant to Government Code section 54954.6 to allow public testimony regarding the establishment of the LTBID and the levy of assessments therein as set forth in the enclosed Resolution of Intention and pursuant to Government Code section 54954.6. NOTICE IS HEREBY FURTHER GIVEN that at 7:00 PM on September 2, 2015, at the City of Lodi Council Chambers, Carnegie Forum, 305 W. Pine Street, Lodi, CA 95240, has been set as the time and place for a public hearing at which time the Council proposes to establish the LTBID and to levy the proposed assessment as set forth in the Resolution of Intention. Boundaries: The proposed LTBID includes all lodging businesses located within the boundaries of the City of Lodi and a portion of the unincorporated area of San Joaquin County, County Service Area #31 also known as "Flag City". Assessment: The annual assessment rate is four and one half percent (4.5%) for lodging businesses in the City of Lodi and three percent (3%) for lodging businesses in the unincorporated area of San Joaquin County of gross short-term (stays less than 31 days) room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days. Assessments pursuant to the LTBID shall not include room rental revenue resulting from stays pursuant to contracts executed prior to October 1, 2015. Budget: The total LTBID annual budget for the initial year of its five (5) year operation is anticipated to be approximately $538,000. This budget is expected to fluctuate as room sales do, but is not expected to significantly change over the LTBID's term. Purpose: The LTBID is designed to provide specific benefits directly to payors by increasing room night sales. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales. Duration: The proposed LTBID will have a five (5) year life, beginning October 1, 2015 through September 30, 2020. Once per year beginning on the anniversary of district formation there is a 30 -day period in which owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on district termination. Collection: The City will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the LTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Protest: Any owner of a lodging business within the proposed LTBID that will be subject to the assessment may protest the establishment of the LTBID. If written protests are received from the owners of lodging businesses in the proposed LTBID who represent 50 percent (50%) or more of the estimated annual assessments to be levied, the LTBID shall not be established and the assessment shall not be imposed. You may mail a written protest to: Office of the City Clerk City of Lodi 221 West Pine Street Lodi, CA 95240 You may also appear at the public meeting or hearing and submit a written protest at that time. Information: Should you desire additional information about this proposed LTBID or assessment contact: Dated: Nancy Beckman, President & CEO Lodi Conference & Visitors Bureau 25 North School Street Lodi, CA 95240 (209) 996-9979 City Clerk EXHIBIT B NAME ATTN MA1 MA2 Wine & Roses LLC 2505 W. Turner Rd. Lodi, Calif. 95242 Del Rancho Motel Ashvin Patel 501 N. Cherokee Ln Lodi, Calif. 95240 Motel 6 Shri Laxmi Ganesha Inc 1140 S Cherokee Ln Lodi, CA 95240 Star Hotel Patel, Kanu /Jayesh K. P. O. Box 263 Lodi, Calif. 95241 Budget Inn of Lodi Suresh B. Patel 917 S. Cherokee Ln Lodi, Calif. 95240 Econo Lodge Inn & Suites Sann Hospitality 118 N. Cherokee Ln Lodi, CA 95240 Lodi EI Rancho Motel K&R Property Group LLC 603 N. Cherokee Ln Lodi, CA 95241 Lodi EI Rancho Motel K&R Property Group LLC 12231 Jackson Rd Sloughhouse, CA 95683 Modern Motor Lodge Sunil & Shobhana Yadav 1050 S. Cherokee Ln Lodi, CA 95240 Wine Country Inn Surendra F. Patel 607 S. Cherokee Ln Lodi, CA 95240 Rancho Grande Motel Hasmukh M. Bhakta 807 S. Cherokee Ln Lodi, CA 95240 Traveler's Hotel Ghanshyam A. Patel 112 N. School St. Lodi, CA 95240 Viking Motel Rakesh &Smita Patel 815 S. Cherokee Ln Lodi, CA 95240 Best Western Royal Host Inn Raad Hospitality Group 710 S. Cherokee Ln Lodi, CA 95240 Economy Inn Jayanti Bhakta 1100 S. Cherokee Ln Lodi, CA 95240 Main Hotel Moti Bhamti Trust 4 S. Main Street Lodi, CA 95240 Hampton Inn & Suites Geweke VII, LP PO Box 1420 Lodi, CA 95241 Best Western 1-5 Inn Rajiv Jain 6411 W Banner Rd Lodi, CA 95242 Microtel Inn & Suites Rajiv Jain 6428 W Banner Rd Lodi, CA 95242 Lodi Holiday Inn Express LCS-Management, Inc. 1337 E Kettleman Ln Lodi, CA 95240 Golden Era Hotel Gloria Properties 18 S Main St Lodi, CA 95240 Golden Era Hotel Gloria Properties 8095 E Crystal Dr Anaheim, CA 92807 Hutchins House Vacation Rental Marne Simpson 705 W Oak St Lodi, CA 95240 Hutchins House Vacation Rental Marne Simpson 2920 Applewood Dr Lodi, CA 95242 Colleen's Cottage Kenneth Bingaman 306 Bella Vista Dr Lodi, CA 95240 Merlot Bungalow Maurie Jacinto 430 W Elm St Lodi, CA 95240 Merlot Bungalow The Carriage House Vacation Rental The Carriage House Vacation Rental Sandpiper Guest House Sandpiper Guest House Bella Vino B&B Bella Vino B&B 603 Locust Street 604 Locust Street Maurie Jacinto 3711 E Acampo Rd Acampo, CA 95220 Tom & Shelly Azevedo 311 % W Oak St Lodi, CA 95240 Tom & Shelly Azevedo P O Box 46 Lodi, CA 95241 Annette & Gordon MacKay 551 Sandpiper Cr Lodi, CA 95240 Annette & Gordon MacKay P O Box 1062 Woodbridge, CA 95258 Victor & Adrian Schuh Steve & 235 S Hutchins St Lodi, CA 95240 Lillie Thomas Victor & Adrian Schuh Steve & 2311 Eilers Ln Lodi, CA 95242 Lillie Thomas Lavette Properties, Lorraine 603 Locust Street Lodi, CA 95240 Paskett Lavette Properties, Lorraine 4138 Cambridge Rd La Canada, CA 91011 Paskett Cathleen and Bill Huckaby 2432 Muirfield Dr Lodi, Ca 95242 Sylvia Rutter 320 N Pleasant Lodi, CA 95240 Lodi, CA 95240 Kelli Cantrell 714 W. Lockeford Street