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C. 30
To: Board of Supervisors
From: Candace Andersen, District II Supervisor
Date: March  22, 2022
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: Adopt Resolution 2022/64 Granting Consent to the City of Pleasanton for Contra Costa County to Join the Renewed Tri-Valley Tourism Marketing District

APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE

Action of Board On:   03/22/2022
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Gayle Israel 925.957.8860
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED:     March  22, 2022
Monica Nino, County Administrator
 
BY: , Deputy

 

RECOMMENDATION(S):

ADOPT Resolution No. 2022/64, granting the Board of Supervisors’ consent to the City of Pleasanton for the County of Contra Costa to join the Tri-Valley Tourism Marketing District (TVTMD) and include portions of Contra Costa County in the TVTMD.

FISCAL IMPACT:

None at this time since there are no current or proposed hotels within unincorporated Contra Costa County. If hotels are subsequently established, a fee of 1% of the revenue collected in a jurisdiction would be paid to that jurisdiction to cover collection costs. The Treasurer/Tax Collector would be the County entity responsible for collection. The Treasurer/Tax Collector has been contacted about performing this service and does not object.











BACKGROUND:

The TVTMD is a benefit assessment district designed to help fund sales and marketing and destination development programs for Tri-Valley area lodging businesses. Supervisor Andersen has requested the Board consider this recommendation, because this approach has been used successfully in other destination areas throughout the state to improve tourism and drive additional room nights to assessed lodging businesses. The renewed TVTMD shall include all lodging businesses with five (5) rooms or more located within the boundaries of the Town of Danville (Town), the cities of Dublin, Livermore, and Pleasanton (Cities) and those portions of the unincorporated areas of Contra Costa and Alameda Counties (Counties), which include the communities of Alamo, Blackhawk, and Sunol, the portion of the counties that lies between the cities of Pleasanton and Livermore, and that portion of Alameda County which lies southeast of Interstate 580, as shown in the map in the Management District Plan.  
  
Lodging business owners decided to pursue renewal of the TVTMD in order to continue a revenue source devoted to marketing the Tri-Valley area as a tourist, meeting, and event destination. If renewed, the TVTMD would generate approximately $2,166,000 on an annual basis for promotion of travel and tourism specific to the Tri-Valley area.  

The Property and Business Improvement District Law of 1994 (94 Law) allows for the formation of multi-jurisdictional Business Improvement Districts (BIDs), with consent of the included jurisdictions being granted to one “lead” jurisdiction. The City of Pleasanton has requested consent to act as the lead jurisdiction in the formation of the TVTMD. Adopting this resolution will give the City authority to include the County in the proposed TVTMD. To form the TVTMD, the City will follow the formation proceedings specified in the 94 Law, including accepting petitions, adopting a resolution declaring its intention to form the TVTMD, holding a public meeting and public hearing to allow forcomments, and adopting a resolution establishing the TVTMD.  
  
TOURISM MARKETING DISTRICTS  
  
Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TMD fund the TMD, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TMD.  
  
TMD benefits:  
- Funds cannot be diverted for other government programs;  
- They are customized to fit the needs of each destination;  
- They allow for a wide range of services; including: destination marketing, tourism promotion, and sales lead generation;  
- They are designed, created and governed by those who will pay the assessment; and  
- They provide a stable funding source for tourism promotion.  
  
In California, TMDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994 (94 Law). This law allows for the creation of a special benefit assessment districts to raise funds within a specific geographic area. The key difference between TIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TMD (Owners Association).  
  
MANAGEMENT DISTRICT PLAN  
The Management District Plan (Attachment 1) includes the proposed boundary of the renewed TVTMD, a service plan and budget and a proposed means of governance. The TVTMD shall include all lodging businesses with five (5) rooms or more located within the the boundaries of the Town of Danville (Town), the cities of Dublin, Livermore, and Pleasanton (Cities) and those portions of the  
unincorporated areas of Contra Costa and Alameda Counties (Counties), which include the communities of Alamo, Blackhawk, and Sunol, the portion of the counties that lies between the cities of Pleasanton and Livermore, and that portion of Alameda County which lies southeast of Interstate 580.  
  
The renewed TVTMD will have a ten (10) year life, beginning July 1, 2022, or as soon as possible thereafter, and end ten (10) years from its start date. The renewed TVTMD assessment will be implemented beginning July 1, 2022. Once per year beginning on the anniversary of TVTMD renewal there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the TVTMD.  
  
The annual assessment rate is three dollars and twenty-five cents ($3.25) per paid occupied room per night. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days, nor on stays by any Federal or State of California officer or employee when on official business who makes a claim that they are exempt, nor on stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. The annual assessment rate may be subject to an increase each year starting in the third year, the amount of which shall be determined by the Visit Tri-Valley Board, as described in the Plan. The total assessment rate may not exceed four dollars ($4.00).  
  
Each City, Town and County shall be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in their respective jurisdictions within the boundaries of the TVTMD. Each City, Town and County shall take all reasonable efforts to collect the assessments from each lodging business. On a quarterly basis, each City, Town and County shall forward the assessment collected to the City of Pleasanton, which shall forward the assessments collected to the Owners’ Association.  
  
The Pleasanton City Council, through adoption of the Management District 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 TVTMD as defined in Streets and Highways Code §36612. The Pleasanton City Council has determined that Visit Tri-Valley (VTV) will continue to serve as the Owners’ Association for the TVTMD. More than one-half of the members of the VTV Board of Directors must be representatives of assessed lodging businesses. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide an annual report to membership and the City of Pleasanton. Additional detail on the TVTMD can be found in the attached TVTMD Management District Plan.  
  
If the Board approves this resolution, the City of Pleasanton will handle the renewal process in accordance with state law. While currently there are no hotels in these parts of Contra Costa County, this would lay the groundwork for any future hotels to be included in the benefit district.

CONSEQUENCE OF NEGATIVE ACTION:

The recommended action, adoption of the attached resolution granting consent to the City of Pleasanton to form the TVTMD and include portions of the Contra Costa County in the TVTMD, will enable the City of Pleasanton and Visit Tri-Valley (VTV) to move forward with the TVTMD formation process. Upon successful formation, the TVTMD will be governed by the City of Pleasanton and VTV.

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