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Home My WebLink AboutAgenda Report - August 5, 2020 G-01 PHAgenda ltem G-l Crry or Lonr Couxcrl, ConnMUNrcATroN TM AGENDA TITLE: MEETING DATE PREPARED BY: Public Hearing to Consider Adopting Resolution Declaring Results of the Majority Protest Proceedings and Renewing the Lodi Tourism Business lmprovement District (LTBID) August 5,2020 Business Development Manager RECOMMENDED ACTION:Public hearing to consider adopting resolution declaring results of the majority protest proceedings and renewing the Lodi Tourism Business lmprovement District (LTBID) BACKGROUND INFORMATION: The LTBID is a benefit assessment district proposed to continue a revenue source to help fund sales, marketing, and communications and visitor service enhancement programs to market assessed lodging businesses in Lodi as tourist, meeting, and event destinations. This approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses. The renewed 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 Area #31, also known as "Flag City." Lodging business owners decided to pursue renewal of the LTBID in order to continue a revenue source devoted to marketing Lodi as a tourist, meeting and event destination. lf renewed, the LTBID would generate approximately $550,000 on an annual basis for promotion of travel and tourism specific to Lodi. TOURISM BUSINESS IMPROVEMENT DISTRICTS Tourism Business lmprovement Districts (TBlDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TBID fund the TBID, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TBID. TBID 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 destination marketing, tourism, promotion, 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 APPROVED: Manager ln California, TBIDs are primarily formed pursuant to the Property and Business lmprovement District Law of 1994 (94 Law). 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 nonprofit corporation governing the TBID. MANAGEMENT DISTRICT PLAN The Management District Plan (Attachment 1) includes the proposed boundary of the LTBID, a service plan and budget, and a proposed means of governance. The LTB|Dwill include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Lodi and a portion oÍ the unincorporated area of San Joaquin County referred to as County Area #31, also known as "Flag City." The renewed LTBID will have a ten (10) year term, beginning October 1,2020 through September 30, 2030. The assessmentwill be implemented beginning October 1,2020. Once peryear beginning on the anniversary of the LTBID renewal, there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedingè to terminate the LTBID. - The City will be responsible for collecting the assessment on a quarterly basis from each lodging business located in the LTBID boundaries. The City shall fonvard the assessments to Visit Lodil wfr¡cfr wil have the responsibility of managing LTBID programs as provided in this Management District Plan. The City shall be paid a fee equal to 3.25 percent of the amount of assessment collected to cover its costs of colíection and administration. LTBID RENEWAL PROCESS June 17,2O20 RESOLUTION OF INTENTION HEAR|Nc (Compteted) Upon the submission of a written petition, signed by the business owners in the renewed district who will pay more than fifty percent (50% of the assessments proposed to be levied, the City Council may initiate proceedings to renew a district by the adoption of a resolution expressing its intention to renew a district. Petition Status: Petitions in favor of LTBID renewal were submitted in June of 2020 from lodging businesses, which represent a5.24 percent of the total LTBID assessment. This majority petition allows the Council to initiate proceedings to LTBID renewal at the June 17, 2020 meeting. NOTTCE (COMPLETED) The 94 Law requires the City to mail written notice to the owners of all businesses proposed to be within the LTBID. Mailing the notice begins a mandatory forty-five (45) day period in which owners may protest LTBID renewal. PUBLTC MEET|Nc (COMPLETED) Allow public testimony on the renewal of the LTBID and levy of assessments. No Council action required. June 19,2020 July 15,2020 FINAL PUBLIC HEARING lf written protests are received from the owners of businesses in the renewed LTBID which will pay more than fifty percent (s0%) of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than fifty percent (50%), no further proceedings to levy the proposed assessment against such businesses shall be taken for a period of (1) year from the date of the finding of a majority protest by the Council. August 5,2020 At the conclusion of the public hearing to renew the LTBID, 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. lf the Council, following the public hearing, decides to establish the renewed LTBID, the Council shall adopt a resolution of renewal and the Management District Plan dated Apri|21,2020. FISCAL IMPAGT: None immediately. The City will receive a fee of 3.25 percent of the amount collected to cover its costs of administration. Because the LTBID programs are intended to increase visitation to the City, there may be an increase in transient occupancy tax and sales tax collections. FUNDING AVAILABLE: Not applicable. BA Tru (Jul 28, 2020 13:43 PDT) Astrida Trupovnieks Business Development Manager (Jut 28, 2020 13:58 PDT) Stephen Schwabauer City Manager 2020-2030 LODI TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN April 21, 2020 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. CONTENTS I. OVERVIEW ......................................................................................................................................... 3 II. ACCOMPLISHMENTS ..................................................................................................................... 4 III. BACKGROUND ................................................................................................................................. 5 IV. BOUNDARY ........................................................................................................................................ 6 V. BUDGET AND SERVICES ............................................................................................................. 7 A. Annual Service Plan .............................................................................................................................. 7 B. Annual Budget ....................................................................................................................................... 9 C. California Constitutional Compliance ............................................................................................... 9 D. Assessment ........................................................................................................................................... 10 E. Penalties and Interest ......................................................................................................................... 11 F. Time and Manner for Collecting Assessments .............................................................................. 11 VI. GOVERNANCE ............................................................................................................................... 12 A. Owners’ Association ........................................................................................................................... 12 B. Brown Act and California Public Records Act Compliance ........................................................ 12 C. Annual Report ..................................................................................................................................... 12 APPENDIX 1 – LAW .................................................................................................................................... 13 APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................. 24 Prepared by Civitas (800)999-7781 www.civitasadvisors.com LTBID Management District Plan 3 April 21, 2020 I. OVERVIEW Developed by Visit Lodi! Conference and Visitors Bureau (“the Bureau”), the Lodi Tourism Business Improvement District (LTBID) is an assessment district proposed to be renewed to provide specific benefits to payors, by funding sales, marketing, and communications and visitor service enhancements program efforts for assessed businesses. These additional services have been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. Location: The 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 III. Services: The LTBID is designed to provide specific benefits directly to payors by increasing room night sales. Sales, marketing, and communications and visitor service enhancements programs will increase overnight tourism and market assessed businesses as tourist, meeting and event destinations, thereby increasing room night sales. Budget: The total LTBID annual budget for the initial year of its ten (10) year operation is anticipated to be approximately $550,000. This budget is expected to fluctuate as room sales do and may 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 2, 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 boundaries of the LTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed LTBID will have a ten (10) year life, beginning October 1, 2020 through September 30, 2030. Once per year, beginning on the anniversary of LTBID renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on LTBID termination. Management: The Visit Lodi! Conference and Visitors Bureau will continue to 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. LTBID Management District Plan 4 April 21, 2020 II. ACCOMPLISHMENTS Visit Lodi! Conference and Visitors Bureau was originally formed on October 6, 2004. From 2015-2020, the Bureau accomplished significant efforts within the LTBID. These accomplishments are listed below: • The Bureau has helped grow lodging gross revenues year over year for an increase of over 4 million dollars (29%) over the past 5 years. (2015-2019) • The annual fall media fam has produced great results over the past 4 years (2016- 2019). The Bureau has generated 3.1 million dollars in ad equivalency and reached over 797 million consumers with positive articles about Lodi as a destination. • From 2014-2018: • Local taxes generated from travel increased 50%; • State taxes generated from travel increased 7%; • Industry employment generated by visitor spending increased by 7% while earnings generated by visitor spending increased 35%; • Food & beverage sales generated by tourism increased 14%; and • Retail sales generated by tourism increased 10%. • The Downtown Visitor Center is now open 7 days a week servicing 4,150 visitors in 2019. • In 2019 the Bureau added a Live Help feature to our website allowing visitors to our website to ask questions in real time. • In 2020 the Bureau will launch our new Tourism Ambassador program to educate front line staff about Lodi as a destination to improve the visitor experience. LTBID Management District Plan 5 April 21, 2020 III. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TBIDs without a state law. California’s TBIDs collectively raise over $275 million annually for local destination marketing. With competitors raising their budgets, and increasing rivalry for visitor dollars, it is important that Lodi lodging businesses continue to invest in stable, lodging-specific marketing programs. 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 are used to provide services that increase room night sales. 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 funds 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. 0 50 100 150 200 1989199520002001200220032004200520062007200820092010201120122013201420152016201720182019Number of TIDs Operating Nationwide LTBID Management District Plan 6 April 21, 2020 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, short-term vacation rental, 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 sixty (60) lodging businesses. A complete listing of lodging businesses within the proposed LTBID can be found in Appendix 2. LTBID Management District Plan 7 April 21, 2020 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 services provided with the LTBID funds are sales, marketing, and communications and the visitor service enhancements program available only to assessed businesses. A service plan budget has been developed to deliver services that benefit the assessed businesses. 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 $550,000. Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, 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, marketing, and communications budget includes the cost of staff time dedicated to overseeing and implementing the sales, marketing, and communications 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 the Bureau on an as- needed basis. Sales, Marketing, & Communications, $389,125, 70.75% Visitor Enhancement Programs, $27,500, 5% Admin & Operations, $88,000, 16% Contingency / Renewal, $27,500, 5% ,City Admin Fee, $17,875, 3.25% Initial Annual Budget -$550,000 LTBID Management District Plan 8 April 21, 2020 Sales, Marketing, and Communications A sales, marketing and communications program will promote assessed businesses as tourist, meeting, and event destinations. The sales, marketing and communications 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 at 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: • Destination ambassador training program focusing on welcoming visitors and encouraging overnight visitation and longer stays at assessed businesses; • 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. LTBID Management District Plan 9 April 21, 2020 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 ten (10) year improvement and service plan budget is projected at approximately $550,000 annually, or $5,500,000 through 2030. This amount may fluctuate as sales and revenue increase at assessed businesses, and may change over the term. C. California Constitutional Compliance The LTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 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 Plan are designed to provide targeted benefits directly to assessed 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 businesses within the LTBID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the LTBID, and are narrowly tailored. LTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in LTBID programs, or 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 LTBID 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 sales, marketing, and communications and visitor service enhancements programs promoting lodging businesses paying the LTBID assessment. The sales, marketing, and communications and visitor service enhancements programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the sales, marketing, and communications and 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1) LTBID Management District Plan 10 April 21, 2020 visitor service enhancements programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the LTBID, 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 LTBID 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 the Bureau, 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 LTBID- funded activities, be featured in advertising campaigns, and benefit from other LTBID-funded services. Non-assessed lodging businesses will not receive these, nor any other, LTBID-funded services and benefits. The LTBID-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 generating those room nights shall be paid with non-LTBID funds. LTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly 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 unincorporated areas 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 2, 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, 3 Government Code § 53758(a) 4 Cal. Const. art XIII C § 1(e)(2) 5 Government Code § 53758(b) 6 Government Code § 53758(b) LTBID Management District Plan 11 April 21, 2020 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. If the LTBID assessment is identified separately it shall be disclosed as the “LTBID Assessment.” As an alternative, the disclosure may include the amount of the LTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism 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 purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 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 renewed LTBID assessment will be implemented beginning October 1, 2020 and will continue for ten (10) years through September 30, 2030. 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. LTBID Management District Plan 12 April 21, 2020 VI. GOVERNANCE A. Owners’ Association Visit Lodi! Conference and Visitors Bureau will continue to serve as the Owners’ Association for the renewed 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 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 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. LTBID Management District Plan 13 April 21, 2020 APPENDIX 1 – LAW *** THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT *** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18. PARKING PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions ARTICLE 1. Declarations 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; Legislative guidance 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 a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (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 benefits to exist as a separate and distinct category from general benefits, the LTBID Management District Plan 14 April 21, 2020 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. ARTICLE 2. Definitions 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 real property or specific benefits upon assessed businesses 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” LTBID Management District Plan 15 April 21, 2020 “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 district. (k) Ramps, sidewalks, plazas, and pedestrian malls. (l) 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. 36614. “Property” “Property” means real property situated within a district. LTBID Management District Plan 16 April 21, 2020 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. ARTICLE 3. Prior Law 36617. Alternate 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. CHAPTER 2. Establishment 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 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 LTBID Management District Plan 17 April 21, 2020 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. LTBID Management District Plan 18 April 21, 2020 (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 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. (l) 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 LTBID Management District Plan 19 April 21, 2020 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. (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. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to 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. LTBID Management District Plan 20 April 21, 2020 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 Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626, the clerk 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. CHAPTER 3. Assessments 36631. Time and manner of collection of assessments; 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 LTBID Management District Plan 21 April 21, 2020 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. 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 (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. CHAPTER 3.5. Financing 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)) LTBID Management District Plan 22 April 21, 2020 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. (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. CHAPTER 4. Governance 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, maintenance, and activities 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. CHAPTER 5. Renewal 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit LTBID Management District Plan 23 April 21, 2020 (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. CHAPTER 6. Disestablishment 36670. Circumstances permitting disestablishment of district; Procedure (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 district 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 disestablishment 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. LTBID Management District Plan 24 April 21, 2020 APPENDIX 2 – ASSESSED BUSINESSES BUSINESS NAME ADDRESS CITY A Simple Room 1512 Cherrywood Way Lodi, CA 95240 Altera Domi LLC 139 S Crescent Ave Lodi, CA 95240 Bella Vino LLC 235 S Hutchins St Lodi, Ca 95240 Best Real Estate Inv 9 W Oak St Lodi, Ca 95240 Best Western I-5 Inn 6411 W Banner Rd Lodi, CA 95242 Bordeaux Inn Lodi 333 W Locust St Lodi, Ca 95240 Brick Bungalow 714 W Lockeford St Lodi, Ca. 95240 Budget Inn of Lodi 917 S. Cherokee Lane Lodi, Ca. 95240 Claudia Marie Design 330 N Pleasant Ave Lodi, Ca 95240 Colleen's Cottage 306 Bella Vista Dr Lodi, CA 95242 Cottage On California 112 N California St Lodi, Ca 95240 Days Inn & Suites 710 S. Cherokee Lane Lodi, Ca. 95240 Del Rancho Motel 501 N. Cherokee Ln. Lodi, Ca. 95240 Deluxe Hotel 22 1/2 s Main St Lodi, Ca. 95240 Econo Lodge Inn & Suites 118 N. Cherokee Lane Lodi, Ca. 95240 Economy Inn 1100 S. Cherokee Lodi, Ca. 95240 Fox Den 904 W Turner Rd Lodi, CA 95242 Golden Era Hotel 8095 E Crystal Dr Anaheim, Ca 92807 Hampton Inn & Suites PO Box 1420 Lodi, CA 95241 Henry & Denise Estrada 2542 Legacy Way Lodi, Ca 95242 Her Life House 428 W Pine St Lodi, CA 95240 Holiday Inn Express 1337 E Kettleman Ln Lodi, CA 95240 Huckaby Air BNB 2432 Muirfield Dr Lodi, CA 95242 Hutchins House Vacation Rental PO Box 956 Woodbridge, CA 95258 Imperial Hotel 9 W. Oak St. Lodi, Ca. 95240 JoJo Ong 101 S Fairmont Ave Lodi, Ca 95240 Katz Cozy Home 822 Rutledge Drive Lodi, Ca 95242 Kelly Van Ruiten 1011 W Elm St Lodi, Ca 95240 Lavette Properties 4138 Cambridge Rd La Canada, CA 91011 Lee Ave Cottage P O Box 1503 Lodi, Ca 95241 Lisa Isola 405 W Pine St Lodi, Ca 95240 LMB Enterprises 401 Trinity Way Lodi, Ca 95242 Lockeford Bungalow 107 W Lockeford St Lodi, Ca 95240 Locust Tree Inn 428 1/2 W Locust St Lodi, Ca 95240 Lodi Candlewood Suites 1345 E Kettleman Ln Lodi, CA 95240 Lodi El Rancho Motel 12231 Jackson Rd Sloughhouse, CA 95683 Lodi Hill House Museum 826 S Church St Lodi, Ca 95240 Main Hotel 4 S. Main Street Lodi, Ca. 95240 McCay Cellars 429 W Pine St Lodi, Ca 95240 Merlot Bungalow 3711 E Acampo Rd Acampo, CA 95220 Microtel Inn & Suites 6428 W Banner St Lodi, CA 95242 Mills Mansion 09/01/17 210 N Lower Sacramento Rd Lodi, Ca 95242 Mimi's Downtown Cottage 302 W Locust St Lodi, Ca 95240 Motel 6 P. O. Box 1210 Lodi, Ca. 95241 LTBID Management District Plan 25 April 21, 2020 Oasis Colibri 1945 Edgewood Dr Lodi, Ca 95242 OBAID KHAN 611 Louie Ave Lodi, CA 95240 Park Place 2925 Park Oak Dr Lodi, CA 95242 Pleasant House P O Box 47 Woodbridge, Ca 95258 Poppy Sister Inn 533 W Oak St Lodi, Ca 95240 Rancho Grande Motel 807 S. Cherokee Lane Lodi, Ca. 95240 Sunset Escape 8 S Sunset Lodi, Ca 95240 The Carriage House new 8/1/19 2651 Douglas Fir Dr Lodi, CA 95242 The Downtown Walnut 402 W Walnut St. Lodi, Ca 95242 The Garage 520 N Lower Sac Lodi, CA 95242 The Witt Resort 1446 Lexington Dr Lodi, CA 95242 Traveler's Hotel 112 N. School St. Lodi, Calif. 95240 Tudor Oasis 6010 Garden Dr Newcastle, CA 95658 Viking Motel 815 S. Cherokee Lane Lodi, Calif. 95240 Wine and Roses LLC 2505 W. Turner Rd. Lodi, Ca. 95242 Wine Country Inn 607 S. Cherokee Lane Lodi, Ca. 95240 RESOLUTTON NO. 2020-172 A RESOLUTION OF THE LODI CITY COUNCIL DECLARING RESULTS OF THE MAJORITY PROTEST PROCEEDINGS AND RENEWING THE LODI TOURISM BUSTNESS TMPROVEMENT DTSTRTCT (LTBTD) WHEREAS, the Property and Business lmprovement District Law of 1994 (Streets and Highways Code $36600 et. seq.) authorizes the City of Lodi (City) to renew business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the LTBID have petitioned the City Council to renew the LTBID; and WHEREAS, the renewed LTBID includes lodging businesses in 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"; and WHEREAS, consent to include lodging businesses has been received from San Joaquin County; and WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on lodging businesses within the LTBID to pay for sales, marketing, and communications and visitor service enhancements programs to market assessed lodging businesses in Lodi as tourist, meeting, and event destinations, as described in the Plan; and WHEREAS, the assessed lodging businesses within the LTBID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on June 17, 2020 at 7:00 p.m. at 305 West Pine Street, Lodi, the City Council adopted a Resolution of lntention, Resolution No. 2020-137; and WHEREAS, the public meeting and public hearing to consider the renewal of the LTBID have been properly noticed in accordance with Streets and Highways Code $36623; and WHEREAS, oh July 15, 2020 at 7:00 p.m. at 305 West Pine Street, Lodi, the City Council held a public meeting regarding the renewal of the LTBID, and the City Council heard and received objections and protests, if any, to the renewal of the LTBID and the levy of the proposed assessment; and WHEREAS, on August 5, 2020 at 7:00 p.m. at 305 West Pine Street, Lodi, CA the City Council held a public hearing regarding the renewal of the LTBID, and the City Council heard and received all objections and protests, if any, to the renewal of the LTBID and the levy of the proposed assessment; and WHEREAS, the City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the renewed LTBID which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and WHEREAS, the City of Lodi bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary to cover the costs to the City of Lodi in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payer bear a fair or reasonable relationship to the specific benefits or specific government services received by the payer. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: 1. The recitals set forth herein are adopted by the City Council as findings and they are true and correct. 2. The LTBID is hereby renewed for a 1O-year term, beginning October 1,2020 through September 30, 2030. 3. The Plan dated April 21 ,2020 is hereby adopted and approved 4. The activities to be provided to benefit businesses in the LTBID will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the LTBID; to provide activities or improvements outside the LTBID; or for any purpose other than the purposes specified in this Resolution, the Resolution of lntention, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the LTBID boundaries to create a specific benefit to the assessed businesses may be provided but shall be limited to marketing or signage pointing to the LTBID. 5. The City Council finds as follows a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the LTBID that is not provided to those not paying the assessment. b) The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payer 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. c) The assessment is a charge imposed for a specific government service or product provided directly to the payer 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. d) Assessments imposed pursuant to the LTBID are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. lf the owner chooses to collect any portion of the assessment from a transient, that portion shall be specifically called out and identified for the transient in any and all communications from the business owner as the "LTBID Assessment" or "Tourism Assessment" as specified in the Plan. 6. The assessments levied for the LTBID shall be applied towards sales, marketing, and communications and visitor service enhancements programs to market assessed lodging businesses in Lodi as tourist, meeting, and event destinations, as set forth in the Plan. 7. Assessments levied on lodging businesses pursuant to this resolution shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on room rentals is the best measure of benefit. 8. The assessments for the entire LTBID will total approximately $550,000 in the first twelve (12) months. 9. Bonds will not be issued to fund the LTBID. 10. 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 referred to as County Service Area #31, also known as "Flag City". A boundary map is attached hereto and incorporated herein by reference. 11. The assessments shall be used forthe purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the LTBID assessment is levied as long as they are used consistent with the requirements set forth herein. 12. The assessments to fund the activities and improvements for the LTBID will be collected by the City of Lodi from each lodging business located in the LTBID on a quarterly basis, and in accordance with Streets and Highways Code 536631. 13. The City Council, through adoption of this Resolution and the Plan, hasthe right pursuant to Streets and Highways Code 536651, 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 536612. The City Council has determined that Visit Lodi! shall be the LTBID Owners' Association. 14. Visit Lodi!, pursuant to Streets and Highways Code 536650, 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 improvement and activities described in the report. The first report shall be due after the first year of operation of the LTBID. 15. The LTBID established pursuant to this resolution will be subject to any amendments to the Property and Business lmprovement District Law of 1994 (California Streets and Highways Code 536600 et. seq.). 16. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the establishment of the LTBID and to levy the assessments. 17. This Resolution shall take effect immediately upon its adoption by the City Council. Dated: August 5,2020 I hereby certify that Resolution No. 2020-172 was passed and adopted by the City Council of the City of Lodi in a regular meeting held August 5,2020 by the following vote: AYES: COUNCIL MEMBERS - Chandler, Mounce, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - None ABSTAIN: COUNCIL MEMBERS - None á--- City Clerk 172 CUSMIR EXHIBIT A District Boundaries G-lKaylee Clayton From: Sent: To: Subject: President and CE} g'/^r % ß" X" r ^* Nancy Beckman Wednesday, August 05,20201-:00 PM City Council Comments G-l- Public Hearing - Lodi Tourism Business Improvement District Renewal Dear Mayor Kuehne and Honorable City Council Members I want to thank you for your consideration of the Lodi Tourism Business lmprovement District renewal. As you are aware, the Coronavirus pandemic has hit the tourism and lodging industries particularly hard with some of our local lodging reporting occupancy as low asL5% in March and April. Occupancy still remains 20%lower YTD compared to 2019. When the economy opens up again, it will be critical that the Lodi District have the funding and the organization in place so that we can hit the ground running with a major advertising campaign. The lodging in our BID district have overwhelmingly approved the reformation of the District and are counting on Visit Lodi! to lead the tourism recovery effort in our area. We ask that you support their request for reformation of the Lodi Tourism Business lmprovement District. lf you have any questions lcan be reached on my cell phone at ( Warm Regards, Connect with us online! V¡sit Lod¡l Conference & Visitors Bureau 25 North School Street Lodi, CA 95240 209-365-1195 phone 209-365-1191 fax www.visillodi.com Want a Free Lodi Visitor Guide? Click here. LODI ff r ï Tsl¡fillin 1