RESOLUTION NO. 2022-47____________
A RESOLUTION OF THE City Council OF THE CITY OF Visalia DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS AND renewing THE Visalia TOURISM Marketing DISTRICT (VTMD) 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 VTMD have petitioned the City Council to renew the VTMD; 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 VTMD to pay for sales and marketing programs and destination development programs, and other improvements and activities set forth in the Plan; and WHEREAS, the assessed lodging businesses within the VTMD will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on June 6, 2022 at 4:30 PM at Council Chambers at City Hall located at 707 W. Acequia Avenue, Visalia, CA 93291, the City Council adopted a Resolution of Intention, Resolution No. 2022-36 and WHEREAS, the public meeting and public hearing to consider the renewal of the VTMD have been properly noticed in accordance with Streets and Highways Code §36623; and WHEREAS, on July 18, 2022 at 7:00 PM at Council Chambers at City Hall located at 707 W. Acequia Avenue, Visalia, CA 93291, the City Council held a public meeting regarding the renewal of the VTMD, and the City Council heard and received objections and protests, if any, to the renewal of the VTMD and the levy of the proposed assessment; and WHEREAS, on August 1, 2022 at 7:00 PM at Council Chambers at City Hall located at 707 W. Acequia Avenue, Visalia, CA 93291, the City Council held a public hearing regarding the renewal of the VTMD, and the City Council heard and received all objections and protests, if any, to the renewal of the VTMD 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 VTMD 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 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:
The recitals set forth herein are adopted by the City Council as findings and they are true and correct.
The VTMD is hereby renewed for a ten (10) years year term, beginning January 1, 2023 through December 31, 2032, unless renewed again pursuant to Streets and Highways Code § 36660.
The Plan dated May 6, 2022 is hereby adopted and approved.
The activities to be provided to benefit businesses in the VTMD 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 VTMD; to provide activities or improvements outside the VTMD; 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 VTMD boundaries to create a specific benefit to the assessed businesses may be provided but shall be limited to marketing or signage pointing to the VTMD.
5. The City Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the VTMD 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 VTMD 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 communications from the business owner as the “VTMD Assessment” or “Tourism Assessment” as specified in the Plan.
6. The assessments levied for the VTMD shall be applied towards sales and marketing programs and destination development programs to market Visalia lodging businesses as tourist, meeting and event destinations, and other improvements and activities 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 VTMD will total approximately $650,000 in year one (1).
9. Bonds shall not be issued to fund the VTMD.
10. The VTMD shall include all lodging businesses with twenty (20) rooms or more located within the boundaries of City of Visalia. A boundary map is attached hereto and incorporated herein by reference.
11. 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 VTMD 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 VTMD will be collected by the City on a monthly basis, and in accordance with Streets and Highways Code §36631.
13. The City Council, through adoption of this Resolution and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the VTMD as defined in Streets and Highways Code §36612. The City Council has determined that the Visalia Tourism Marketing District Corporation shall be the VTMD Owners’ Association.
14. Visalia Tourism Marketing District Corporation, 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 VTMD.
15. The VTMD 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.).
16. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the establishment of the VTMD and to levy the assessments.
17. 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 1st day of August, 2022 by the following vote:
AYES: Council MEMBERS:
NOES: COUNCIL MEMBERS:
______________________________
Mayor
Attest
Approved as to Form:
City Clerk
City Attorney
PASSED AND ADOPTED: August 1, 2022 LESLIE B. CAVIGLIA, CITY CLERK
STATE OF CALIFORNIA)
COUNTY OF TULARE ) ss.
CITY OF VISALIA )
I, Leslie B. Caviglia, City Clerk of the City of Visalia, certify the foregoing is the full and true Resolution 2022-47 passed and adopted by the Council of the City of Visalia at a regular meeting held on August 1, 2022.
Dated: August 2, 2022 LESLIE B. CAVIGLIA, CITY CLERK
By Michelle Nicholson, Chief Deputy City Clerk
Boundary Map
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