1 RESOLUTION NO. ___-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLEASANT HILL DECLARING RESULTS OF MAJORITY PROTEST
PROCEEDINGS AND RENEWING THE PLEASANT HILL TOURISM
IMPROVEMENT DISTRICT (PHTID) AND APPROVING THE 2022/2027
PHTID MANAGEMENT DISTRICT PLAN
WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and Highways Code §36600 et. seq.) authorizes the 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 PHTID have petitioned the City Council to renew the PHTID; and
WHEREAS, included with the petitions was a PHTID Management District Plan (Plan) summary that describes the proposed assessment to be levied on lodging businesses within the PHTID to pay for sales, marketing and communications programs, and other improvements and activities set forth in the Plan; and
WHEREAS, the assessed lodging businesses within the PHTID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on December 6, 2021 at 7:00 PM via teleconference the City Council adopted a Resolution of Intention, Resolution No. 73-21; and
WHEREAS, the public meeting and public hearing to consider the renewal of the PHTID have been properly noticed in accordance with Streets and Highways Code §36623; and WHEREAS, on December 20, 2021, via teleconference, the City Council held a public meeting regarding the renewal of the PHTID, and the City Council heard and received objections and protests, if any, to the renewal of the PHTID and the levy of the proposed assessment; and WHEREAS, on January 24, 2022 at 7:00 PM, via teleconference the City Council held a public hearing regarding the renewal of the PHTID, and the City Council heard and received all objections and protests, if any, to the renewal of the PHTID 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 assessed businesses in the renewed PHTID 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 2 WHEREAS, the City 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 in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor.
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 PHTID is hereby renewed for a five (5) year term, beginning April 1, 2022, or as soon as possible thereafter and ends five (5) years from its start date.
3. The PHTID Management District Plan dated January 24, 2022 is hereby adopted and approved.
4. The activities to be provided to benefit businesses in the PHTID 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 PHTID; to provide activities or improvements outside the PHTID; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the PHTID boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the PHTID.
5. The City Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the PHTID 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 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.
c) The assessment is a charge imposed for 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. d) Assessments imposed pursuant to the PHTID are levied solely upon the assessed business, and the business owner is solely responsible for payment of the assessment when due. If 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 3 communications from the business owner as the “PHTID Assessment” as specified in the Plan.
6. The assessments levied for the PHTID shall be applied towards sales, marketing, and communications promotions to market Pleasant Hill lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the Plan.
7. The initial annual assessment rate is three percent (3%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than twenty-nine (29) consecutive days; a person as to whom, or an occupancy as to which, it is beyond the power of the city to impose the assessment; and by any state officer or employee of the federal government or a foreign government who is exempt by reason of express provision of federal law or international treaty.
In years 2024 through 2026, the assessment rate may be subject to an annual increase during the five (5) year term. At the discretion of the Stay Pleasant Hill Board, the assessment rate may be increased to a maximum rate of five percent (5%) of gross short-term room rental revenue for assessed lodging businesses. However, the increase in any year shall not exceed one percent (1%) of gross short-term room rental revenue. The assessment rate may also be decreased by the Stay Pleasant Hill Board by up to a maximum of one percent (1%) per year, but shall not drop below the initial assessment rate of three percent (3%) of gross short-term room rental revenue.
Any increase or decrease authorized by the Stay Pleasant Hill Board shall be included in the Annual Report described in the Plan.
8. 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 demand for room rentals, an assessment based on room rentals is the best measure of benefit.
9. The assessments for the entire PHTID will total approximately $710,000 in year one (1).
10. Bonds shall not be issued to fund the PHTID.
11. The PHTID shall include all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Pleasant Hill. A boundary map is attached hereto and incorporated herein by reference.
12. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the PHTID assessment is levied as long as they are used consistent with the requirements set forth herein.
13. The assessments to fund the activities and improvements for the PHTID will be collected by the City of Pleasant Hill on a quarterly basis, and in accordance with Streets and Highways Code §36631.
4 14. The City Council, through adoption of this Resolution, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the PHTID as defined in Streets and Highways Code §36612. The City Council has determined that Stay Pleasant Hill shall be the PHTID Owners’ Association.
15. Stay Pleasant Hill, pursuant to Streets and Highways Code §36650, 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 PHTID.
16. The PHTID renewed pursuant to this resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.).
17. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the renewal of the PHTID and to levy the assessments.
18. This Resolution shall take effect immediately upon its adoption by the City Council.
I HEREBY CERTIFY that the foregoing Resolution of Formation was introduced and adopted at a regular meeting of the City Council on the 24th day of January, 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
MICHAEL G. HARRIS, OD, Mayor
ATTEST:
DANIELLE K. HABR, City Clerk
5 Exhibit A
Boundary Map