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Resolution 2012-36RESOLUTION NO. 2012 - 36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS, ESTABLISHING THE CITY OF GILROY TOURISM BUSINESS IMPROVEMENT DISTRICT, AND LEVYING ASSESSMENTS WHEREAS, the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code, commencing with Section 36600 (the "PBID Law "), authorizes cities to establish property and business improvement districts for the purposes of funding tourism; and, WHEREAS, a majority (more than 50 %) of the owners of lodging businesses subject to the assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the proposed boundaries of the City of Gilroy Tourism Business Improvement District (the "GTBID ") have petitioned the Gilroy City Council (the "City Council ") to establish the GTBID; and, WHEREAS, included with the petitions was a summary of the GTBID that described the proposed assessment to be levied on owners of lodging businesses within the GTBID which will be used to pay for sales promotion and marketing programs to market the lodging businesses and the City as an overnight tourist destination, in order to increase overnight room sales as set forth in the GTBID Management District Plan (the "Management District Plan"); and, WHEREAS, the assessed lodging businesses within the GTBID will be benefited by the activities and improvements set forth in the Management District Plan; and, WHEREAS, on July 16, 2012, the City Council adopted a Resolution Declaring its Intention to Establish the GTBID, to Levy and Collect Assessments within the GTBID and appointing a Time and Place for a Public Meeting and Public Hearing (Resolution No. 2012 -34); and, WHEREAS, the Public Meeting and Public Hearing to consider the establishment of the GTBID have been properly noticed in accordance Section 36623 of the PBID Law; and, RESOLUTION NO. 2012 - 36 2 WHEREAS, on August 6, 2012 at 6:00 p.m., in the Gilroy Council Chambers, City Hall, 7351 Rosanna Street, Gilroy, California, the City Council held a Public Meeting regarding the establishment of the GTBID, and the City Council heard and received comment related to the establishment of the GTBID and the levy of the proposed assessment; and, WHEREAS, on September 10, 2012 at 6:00 p.m., in the Gilroy Council Chambers, City Hall, 7351 Rosanna Street, Gilroy, California, the City Council opened the Public Hearing regarding the establishment of the GTBID, and the City Council heard and received objections and protests, if any, to the establishment of the GTBID and the levy of the proposed assessment; and, WHEREAS, on September 17, 2012 at 6:00 p.m., in the Gilroy Council Chambers, City Hall, 7351 Rosanna Street, Gilroy, California, the City Council continued the Public Hearing regarding the establishment of the GTBID, and the City Council heard and received additional objections and protests, if any, to the establishment of the GTBID and the levy of the proposed assessment; and WHEREAS, at the conclusion of the Public Hearing the City Clerk determined that there was no majority protest to the establishment of the GTBID and to the levy and collection of assessments. A majority protest is defined as written protests received from owners of lodging businesses in the GTBID which would pay fifty percent (50 %) or more of the assessments proposed to be levied. Protests are weighted based on the amount of assessment proposed to be levied on each lodging business. NOW, THEREFORE, BE IT RESOLVED as follows: Section 1. The recitals set forth herein are true and correct. Section 2. The City of Gilroy Tourism Business Improvement District is hereby established for a five year term. Section 3. The City of Gilroy Tourism Business Improvement District Management District Plan on file with the City Clerk dated June 2012 is hereby adopted. Section 4. The assessments levied for the GTBID shall be applied toward sales promotion and marketing programs to market the lodging businesses and the City as an overnight RESOLUTION NO. 2012 - 36 tourist destination, in order to increase overnight room sales as set forth in the Management District Plan. Section 5. The revenue from the levy of the assessments on lodging businesses within the GTBID may not be used for any purpose other than those specified in the Management District Plan, and in the Resolution of Intention. Section 6. Assessments levied on lodging businesses pursuant to this Resolution shall be levied on the basis of benefit. Because the services and activities provided by the GTBID are intended to increase overnight room sales, an assessment based on room rentals is the best measure of benefit. Section 7. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. The assessment shall be shown on the guests' folio as "City of Gilroy Tourism Assessment." If the assessment is not passed on to the transient, the assessment is the obligation of the owner of the lodging business. Section 8. The assessments for the entire GTBID will total approximately $190,000 in year one. Section 9. There is hereby levied, commencing January 1, 2013, an assessment, on lodging businesses within the GTBID to fund the activities and improvements set forth in the adopted Management District Plan that is on file with the City Clerk, in the amount of 2% of Taxable Rents, as reported on the City's Quarterly Transient Occupancy Tax reporting form. Based on the improvements, services and activities to be provided by the GTBID and the benefit received, assessments will not be collected on lodging stays of more than 30 consecutive days, nor on stays pursuant to contracts executed prior to January 1, 2013. Section 10. Bonds will not be issued to fund services and activities of the GTBID. Section 11. The boundaries of the GTBID shall be the boundaries of the City of Gilroy, as depicted in Exhibit A attached hereto, and incorporated herein by reference. Section 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 GTBID assessment is levied as long as they are used in a manner that is consistent with the requirements set forth herein and the Management District Plan. If the GTBID expires after its initial term and is not renewed, any remaining funds, including contingency funds, will be either spent in a RESOLUTION NO. 2012 - 36 4 manner consistent with the Management District Plan or returned to the assessed lodging businesses in shares proportional to the assessment paid by such lodging business. Section 13. The assessments to fund the activities and improvements for the GTBID will be collected at the same time and in the same manner as are the transient occupancy taxes the assessed lodging businesses are subject to, and in accordance with Section 36631 of the PBID Law. Delinquent assessments will be subject to additional penalties and interest as described in the Management District Plan. Section 14. The Gilroy Welcome Center Board of Directors, a nonprofit private entity, shall serve as the Owners Association pursuant to Section 36614.5 of the PBID Law. Section 15. The Gilroy Welcome Center Board of Directors, pursuant to Section 36650 of the PBID Law, shall cause to be prepared and submitted to the City Council an annual report for each year, except the first year, for which assessments are to be levied and collected to pay the costs of the services and activities described in the Management District Plan. The first annual report shall be due after the first year of operation of the GTBID. Section 16. The GTBID established pursuant to this Resolution will be subject to any amendments to the PBID Law. Section 17. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED on this 17'h day of September, 2012 by the following roll call vote: AYES: COUNCILMEMBERS: ARELLANO, DILLON, LEROE- MUNOZ, TUCKER WOODWARD, and PINHEIRO NOES: COUNCILMEMBERS: BRACCO ABSENT: COUNCILMEMBERS: NONE ATTES C� S16twna Freels, C Jerk APPROVED: ert P' iheiro, Mayor RESOLUTION NO. 2012 - 36 I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2012 -36 is an original resolution, or true and correct copy of a city resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 17'h day of September, 2012, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this Wh day of September, 2012. ,ma Freels, MMC`-' Clerk of the City of Gilroy (Seal)