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Home My WebLink About2012/04/24 Item 12ITEM #12 CITY ATTORNEY REPORT REGARDING DRAFT PROCEDURES FOR ADMINISTRATION OF ANY PETITIONS THAT MIGHT BE SUBMITTED BY HOTEL/MOTEL TMD MEMBERS PROPOSING DISESTABLISHMENT OF THE CHULA VISTA TOURISM AND MARKETING DISTRICT WRITTEN MATERIAL WILL BE DISTRIBUTED PRIOR TO THE MEETING ~~SI/ ,:~.~ .~_..._. ._.~._. cin of CHULA VISfA OFFICE OF THE CITY ATTORNEY MEMORANDUM * , ~. `~. `~i~~ ~ ~- ~r`~~r~ncc( ~hfi~ TO: Mayor Cox and Councilmembers Aguilar, Bensoussan, Castaneda, and Ramirez DATE: April 24, 2012 ~~~~ FROM: ~ Glen R. Googins, City Attorney Ji11 Maland, Assistant City Atto~~/. SUBJECT: City Attorney Report Regarding Draft Procedures for Administration of Any Petitions That Might Be Submitted by Hotel/Motel TMD Members Proposing Disestablishment of the Chula Vista Tourism and Marketing District I. BACKGROUND On March 13, 2012, the City Council approved an agreement between the City and the Chula Vista Chamber of Commerce for the administration of the Chula Vista Tourism and Marketing District ("CVTMD"). At that time, the Council requested that the City Attorney bring back in April his proposed procedures for the handling of petitions that may be submitted for disestablishment of the CVTMD. Preliminary draft procedures are presented below for Council consideration and comment. After Council and stakeholders input, final procedures will be prepared and presented for fmal Council approval by not later than May 22; 2012. II. SUMMARY OF APPLICABLE LAW The CVTMD is a business improvement district established under the Property and Business Improvement District ("PBID") Law of 1994 (Streets and Highways Code 36600 et. seq.) The PBID Law allows disestablishment of the district by resolution, upon submittal of a petition (or petitions) by a majority of the owners of businesses in the district who, in the aggregate, pay 50 percent or more of the assessments levied. The period for presenting such a petition is the 30-day period commencing each year on the anniversary of the establishment of the district. The CVTMD was established on July 14, 2009. Thus, the next petition period will commence on July 14~' of this year. Streets and Highways Code section 36670 sets forth certain requirements regarding the disestablishment-by-petition process. The following is a summary of the section 36670 requirements for disestablishment by petition: 1 ____ 1. Upon submission of a petition, the Council shall first pass a resolution of intention to disestablish the district and then notice a hearing on disestablishment. 2. The resolution of intention to disestablish the district shall: a. State the reason for the disestablishment b. Contain the time and place of the public hearing c. Include a proposal to dispose of any assets acquired with the revenues of the assessments levied within the district. 3. The notice of the hearing on disestablishment shall be given by mail to the owner of each business subject to the assessment. 4. The public hearing shall be conducted not less than 30 days after mailing the notice to the business owners. 5. The public hearing shall be held not more than 60 days after adoption of the resolution of intention. III. DRAFT PETITION PROCEDURES Back in January of this year a number of hotel/motel owners assessed under the TMD submitted petitions for disestablishment of the district. These petitions were submitted during the time period provided by state law, and did not contain all the information necessary to process. Because of this, the City Attorney's office identified the need for procedures to supplement the state code in this area. At the City Council meeting on March 13, 2012, the Council requested that draft procedures be brought back in April, for City Council input. In response, we are submitting the following draft procedures for the Council's consideration: 1. Notification. Staff shall notify the TMD Members on or before June 1St, that written petitions may ~ be submitted during the 30-day petition period commencing on July 14tt` and ending on August 12th. This notice shall be given either by mail or electronically to the addresses provided by the TMD Members. 2. Petition. a. Petitions must contain: i. TMD Member{s) business name. ii. Notarized signature of the current business owner or their authorized agent. iii. Printed name of signator. iv. Date of signing; petitions must be dated no earlier than June 1St and no later than August 12th. v. One of the following forms of confirmation that the signator is the current owner of the business: a) Copy of current business license; 2 b) Written statement of ownership that is signed under penalty of perjury c) Other form of evidence satisfactory to City staff d} "Authorized agents" must also provide written evidence of their authorization signed by owner. b. If the signator of a submitted petition no longer owns the business as of July 14th, the petition shall not be considered; however, the current owner may submit a petition in its place, up until August 12th (if August 12th falls on a weekend or holiday, petitions may be submitted the next business day). c. Petitions may be submitted to: i. the City Clerk; ii. the City Finance Department; or iii. the City Attorney. d. Petitions shall be accepted for submission during the period July 14th through August 12th (or the next business day, if the 12th falls on a holiday or weekend). e. All petitions submitted shall be forwarded to the City Finance Director for review. 3. Finance Review. a. The Finance Director shall review all petitions submitted for the following: i. Confirmation of business ownership by petitioners; ii. Determination of whether petitions were submitted by TMD Members business owners who pay 50 percent or more of the assessments levied in the CVTMD (utilizing the assessment data for the 12 month period ending on the preceding June 30th). b. The Finance Director, or designee, may contact any of the petitioners, as needed, to obtain information necessary to conducting the above review. Failure of a petitioner to provide the requested information may result in rejection of that petitioner's submittal. c. To be counted, a petition must be submitted by a TMD Member who is current on all amounts due and payable as assessments under the CVTMD as of August 12~'. d. After verification by the City Clerk, the City Finance Director shall forward the results of the review to the City Manager, by August 31st. 4. City Manager Action. a. If the Finance Director review confirms and the City Clerk verifies that the business owners.who pay 50 percent or more of the CVTMD assessments submitted petitions, the City Manager shall schedule a resolution of intention to disestablish the CVTMD at the next appropriate City Council meeting. Pursuant to Streets and Highways Code section 36670, the resolution shall contain the following; i. The reason for disestablishment; ii. The time and place of the public hearing; and iii. A proposal to dispose of any assets acquired with the revenues of the assessments levied within the district. b. If the Finance Director review determines that the petition was not submitted on behalf of assessees who pay at least 50 percent of the assessments, the City Manager shall report the results to the City Council during his comments at the next scheduled City Council meeting. 5. City Council Action. If a resolution of intention to disestablish is brought forth to the City Council, the Council shall proceed pursuant to Streets and Highways Code section 36670. Once the Councilmembers have provided their feedback on the above draft procedures, staff will reach out to the TMD Members to obtain their input. The current TMD Board is scheduled to meet on May 2"d, and the current Hotel/Motel Subcommittee is scheduled to meet on May 8th. Staff will then return to the Council in May with final procedures for Council consideration and adoption. cc. Jim Sandoval, City Manager Maria Kachadoorian, Director of Finance Michael Meacham, Director of Economic Development 4