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Resolution 2016-54RESOLUTION NO. 2016 - 54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY DECLARING RESULTS OF THE MAJORITY PROTEST PROCEEDINGS AND RENEWING THE GILROY TOURISM BUSINESS IMPROVEMENT DISTRICT 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 lodging 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 Gilroy Tourism Business Improvement District ( "GTBID ") have petitioned the City Council to renew the GTBID; 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 GTBID to pay for sales promotion and marketing activities, and other improvements and activities set forth in the Plan; and WHEREAS, the assessed lodging businesses within the GTBID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on August 1, 2016 at 6:00 p.m. at the City of Gilroy Council Chambers, 7351 Rosanna Street, Gilroy, CA 95020, the City Council adopted a Resolution of Intention, Resolution No. 2016 -43; and WHEREAS, the public meeting and public hearing to consider the renewal of the GTBID have been properly noticed in accordance with Streets and Highways Code §36623; and 1 RESOLUTION NO. 2016 - 54 WHEREAS, on September 12, 2016 at 6:00 p.m. at the City of Gilroy Council Chambers, 7351 Rosanna Street, Gilroy, CA 95020, the City Council held a public meeting regarding the renewal of the GTBID, and the City Council heard and received objections and protests; if any, to the renewal of the GTBID and the levy of the proposed assessment; and WHEREAS, on October 17, 2016 at 6:00 p.m. at the City of Gilroy Council Chambers, 7351 Rosanna Street, Gilroy, CA 95020, the City Council held a public hearing regarding the renewal of the GTBID, and the City Council heard and received all objections and protests, if any, to the renewal of the GTBID 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 proposed district 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: I. The recitals set forth herein are adopted by the City Council as findings and they are true and correct. 2. The Gilroy Tourism Business Improvement District is hereby renewed for a ten (10) years year term, beginning January 1, 2018 through December 31, 2027. 3. The Plan dated August 8, 2016 is hereby adopted and approved. 4. The activities to be provided to benefit businesses in the district will be funded by 2 RESOLUTION NO. 2016 - 54 the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the district; to provide activities or improvements outside the GTBID; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, and the Plan. 5. The City Council finds as follows: a) The activities funded by the assessment will provide a specific benefit to assessed businesses within the GTBID 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 GTBID 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 "GTBID Assessment." 6. The assessments levied for the GTBID shall be applied towards sales, promotions and marketing programs to market Gilroy 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 District will total approximately $365,000 in year one. If the maximum annual budget increases are adopted by the Owners' Association's Board, the annual budget will increase to $751,900 in year two (2) and $968,071 in year three (3). 9. Bonds shall not be issued to fund the GTBID. 10. The GTBID shall include all lodging business located within the boundaries of the City of Gilroy. 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 GTBID assessment is levied as long as they are used consistent with the requirements set forth herein. 3 RESOLUTION NO. 2016 - 54 12. The assessments to fund the activities and improvements for the GTBID will be collected by the City on a quarterly 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 GTBID as defined in Streets and Highways Code §36612. The City Council has determined that Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center shall be the Owners' Association. 14. Gilroy Visitors Bureau, Inc. DBA the Gilroy Welcome Center, 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 district. 15. The GTBID established 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 her designee, is directed to take all necessary actions to complete the establishment of the GTBID and to levy the assessments. 17. This Resolution shall take effect immediately upon its adoption by the City Council. PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 17�h day of October, 2016 by the following roll call vote: AYES: COUNCIL MEMBERS: AULMAN, HARNEY, TUCKER, VELASCO and WOODWARD NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS BRACCO, LEROE -MUNOZ A Freels, City ard, Mayor 4 RESOLUTION NO. 2016 - 54 BOUNDARY MAP ��� \\ �\ i \r1�`^ /{6 lam. 4 ;v�T�' /, �''h •,, .,... ,.\. } . mi 1 d•; � \ 9 `f 5 RESOLUTION NO. 2016 - 54 I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2016 -54 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 October, 2016 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 G*oy this 18''/,day of October, 2016. ghawna Freels, MNW `- City Clerk of the City of Gilroy (Seal)