Chapter 3.100
TOURISM BUSINESS IMPROVEMENT DISTRICTS

Sections:

3.100.010    Purpose and intent.

3.100.020    Definitions.

3.100.030    Governing law.

3.100.040    Term.

3.100.050    Notice and protest procedure.

3.100.060    Formation.

3.100.070    Annual levy.

3.100.080    Owners association.

3.100.090    Modification.

3.100.100    Annual report.

3.100.110    Disestablishment.

3.100.120    Validity.

3.100.010 Purpose and intent.

A.    The ordinance codified in this chapter 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.

B.    This chapter establishes the procedure for the formation by resolution of tourism business improvement districts in Folsom. The provisions of this chapter shall modify the procedures of the Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq. (Ord. 1171 § 3 (part), 2012)

3.100.020 Definitions.

Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter.

“Assessment” means the levy imposed on businesses provided in the resolution of formation for the purpose of providing services, activities and programs that promote tourism in the city of Folsom.

“City” means the city of Folsom.

“City council” means the city council of the city of Folsom.

“District” means a tourism business improvement district formed pursuant to this chapter.

“Hotel” means any business that rents twenty or more rooms for dwelling, lodging, or sleeping purposes for a period of less than thirty consecutive calendar days, and includes hotels, inns, motels, bed and breakfast facilities, lodging houses, rooming houses or other similar structures. Emergency and homeless shelters and group homes for disabled or homeless individuals are excluded from this definition.

“Owners association” means the nonprofit corporation designated by resolution of the city council pursuant to the provisions of this chapter.

“Resolution of intention” means a resolution adopted by the city council declaring its intention to create a tourism business improvement district pursuant to this chapter.

“Resolution of formation” means a resolution adopted by the city council forming a tourism business improvement district pursuant to this chapter.

“1989 Law” means the Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq. (Ord. 1171 § 3 (part), 2012)

3.100.030 Governing law.

Unless otherwise provided for in the ordinance codified in this chapter, districts shall be governed and shall operate in accordance with the provisions of the 1989 Law, and as amended from time to time. In the event of a conflict between this chapter and the 1989 Law, this chapter shall control. (Ord. 1171 § 3 (part), 2012)

3.100.040 Term.

The provisions relating to annual levying of assessments in Streets and Highways Code Sections 36534 and 36536 shall not apply. Districts may be formed for a term not to exceed twenty years. Any district whose term has expired may be renewed by following the procedures for establishment as provided in this chapter. (Ord. 1171 § 3 (part), 2012)

3.100.050 Notice and protest procedure.

The procedures in Streets and Highways Code Sections 36523 and 36524 shall not apply. After adoption of a resolution of intention to create a district, notice shall be provided to all businesses proposed to be assessed in the district, and protest proceedings held, pursuant to Government Code Section 54954.6. The notice shall contain:

A.    The method and basis of levying the assessment in sufficient detail for the business owner to determine the approximate amount of assessment to be paid by the business.

B.    A general description of the activities or improvements that the assessment will fund.

C.    The address to which business owners may mail a protest against the assessment.

D.    The phone number and address of an individual or organization that interested persons may contact to receive additional information about the assessment.

E.    A statement that a majority protest will cause the assessment to be abandoned.

F.    The date, time, and location of the public meeting and public hearing to consider the resolution of formation. (Ord. 1171 § 3 (part), 2012)

3.100.060 Formation.

The provisions of Streets and Highways Code Section 36527 shall not apply. Districts may be formed pursuant to a resolution of formation adopted by the city council. The resolution of formation shall contain:

A.    The number, date of adoption, and title of the resolution of intention.

B.    The time and place where the public meeting(s) and public hearing(s) were held concerning the establishment of the district.

C.    The procedures and process regarding lodging any protests received at the public hearing and a determination of whether a majority protest was received.

D.    A description of the boundaries of the district and any separate benefit zones established within the district.

E.    A statement that the district has been established, including the name of the district.

F.    A statement that the businesses in the district established by the resolution of formation shall be subject to any amendments to this chapter.

G.    A description of the method and basis of levying the assessments.

H.    A finding that the businesses within the district shall be specifically benefited by the improvements and activities funded by the assessments proposed to be levied.

I.    The time and manner of collecting the assessments. (Ord. 1171 § 3 (part), 2012)

3.100.070 Annual levy.

The provisions pertaining to the annual levy of assessments, as set forth in Streets and Highways Code Sections 36534 and 36535, shall not apply. An assessment will be levied on businesses for the term of the district and at the rate described in the resolution of formation. (Ord. 1171 § 3 (part), 2012)

3.100.080 Owners association.

The provisions of Streets and Highways Code Section 36505 pertaining to the advisory board shall not apply. A nonprofit corporation shall be designated by the city council to serve as the owners association in the resolution of intention and resolution of formation. The city will enter into a contract with the designated nonprofit. The designated nonprofit corporation shall remain in good standing under state and federal law and shall annually file a Form 990 with the Internal Revenue Service. The nonprofit corporation shall provide the city of Folsom with its annual financial statements and copy of its current Form 990. The owners association shall be responsible for implementation of district programs and shall enter into a contract with the city related to implementation of district programs and administration of district funds. References in the 1989 Law to the advisory board shall be to the owners association. (Ord. 1171 § 3 (part), 2012)

3.100.090 Modification.

The owners association may, at any time, recommend that the city council modify the boundaries, benefit zones, basis and method of levying the assessment, and improvements and activities to be funded with revenues derived from the levy of assessments for any district formed pursuant to this chapter. Any modification shall be made pursuant to the modification provisions of the 1989 Law, subject to the request by the owners association. Where the 1989 Law refers to adoption of an ordinance, a resolution shall instead be adopted. (Ord. 1171 § 3 (part), 2012)

3.100.100 Annual report.

The provisions of Streets and Highways Code Section 36533 shall not apply. The owners association shall prepare a report for each fiscal year for which assessments are to be levied and collected to pay the costs of the activities described in the report. The report shall be prepared for the city manager on or before September 1st. The city manager shall review the report and may request additional information and shall schedule the annual report on the city council agenda. The annual report shall be presented to the city council, and shall refer to the 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:

A.    A description of the activities conducted during the previous fiscal year;

B.    An accounting of the revenue and expenditures by program for the previous fiscal year in a form and manner required by the city finance department;

C.    A proposed scope of activities to be provided for the next fiscal year, along with the designated staff to administer the proposed programs;

D.    A budget outlining the revenue and expenses for the scope of activities proposed for the next fiscal year; and

E.    The amount of any surplus or deficit revenues to be carried over from a previous fiscal year and a proposal to address the surplus or deficit in the next fiscal year(s). (Ord. 1171 § 3 (part), 2012)

3.100.110 Disestablishment.

In addition to the provisions of Streets and Highways Code Section 36550 as modified by this chapter, there shall be a thirty-one-day period each year from January 1st through January 31st in which business owners subject to assessment may request disestablishment of the district. Upon receipt by the city council of written petitions of the owners of businesses in the district who pay fifty percent or more of the assessments levied, the city council shall adopt a resolution of intent to disestablish the district and hold a public hearing in accordance with the procedures set forth in Streets and Highways Code Section 36550. Where the 1989 Law refers to adoption of an ordinance, a resolution shall instead be adopted. (Ord. 1171 § 3 (part), 2012)

3.100.120 Validity.

The validity of any assessment levied under this chapter shall not be contested in any action or proceeding unless the action or proceeding is commenced within thirty days after a resolution of formation is adopted. Any appeal from a final judgment in an action or proceeding shall be perfected within thirty days after the entry of judgment. (Ord. 1171 § 3 (part), 2012)