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HomeMy WebLinkAboutReso 59-20 Continuing TBID FY 20-21RESOLUTION NO. 59-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, CONTINUING THE PROGRAM AND LEVYING THE ASSESSMENTS FOR THE 2020/21 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Parking and Business Improvement Area Law of 1989, Sections 36500 et seq., of the California Streets and Highway Code authorizes cities to establish and review business improvement areas of the purpose of promoting tourism, and WHEREAS, on April 13, 2009, the City Council held a public hearing and first reading of Ordinance 546 amending the Morro Bay Municipal Code (MBMC) to add a new Chapter 3.60 to establish the Morro Bay Tourism Business Improvement District (MBTBID), and adopted Ordinance No. 546 at its April 27, 2009 meeting which set the MBTBID assessments at 3% from June 1, 2009 to May 31, 2010, and 2% from June 1, 2010 and thereafter; and WHEREAS, on June 1, 2010, the MBTBID assessments returned to the 2% level, as established by then MBMC section 3.60 050; and WHEREAS, on September 13, 2010, the City Council held a public hearing and first reading of Ordinance No. 562 to amend MBMC section 3.60.050, changing the assessment percentage to 3%, and adopted Ordinance No. 562 at its September 27, 2010 meeting; and WHEREAS, on December 10, 2019 the City Council adopted Ordinance No. 626 modifying the MBTBID to add vacation rentals businesses (as that term is defined in Chapter 5.47 (Short Term Vacation Rental Permit) of the Morro Bay Municipal Code) to the MBTBID at the existing assessment rate of 3% levied on hotels; and and WHEREAS, all other findings of Ordinances Nos. 546, 562 and 626 remain unchanged; WHEREAS, on May 28, 2020, the advisory board requested the renewal of the TBID for the 2020/21 fiscal year to continue its activities, and the City Council has approved that renewal annually since 2010; and WHEREAS, on June 9, 2020, staff presented to City Council the annual assessment report for Fiscal Year 2020/21, which provides a full and detailed description of the activities to be provided during the 2020/21 fiscal year, as provided in the proposed budget for that Fiscal Year, which are attached to this Resolution as Exhibit A; and WHEREAS, the budget plan generally describes the funded activities to be marketing, which attracts and extends overnight stays in Morro Bay hotels and vacation rentals, and are consistent with the authorized uses for the assessment revenue set forth in MBMC, section 3.60.030; and WHEREAS, it is the intention of the City Council to levy and collect 3% assessments from the hoteliers and vacation rentals within the TBID for the 2020/21 fiscal year; and WHEREAS, Resolution No. 47-20 declaring the intention to continue the program and levy assessments from the hoteliers and notifying them of the June 23, 2020, public hearing was adopted by the Council at the June 9, 2020, meeting and published in the New Times SLO on June 11, 2020; and WHEREAS, that public hearing was held via teleconference in accordance with Section 3 of Executive Order N-20-20, issued by Governor Newsom on March 17, 2020, for the final public hearing to consider testimony for and against renewal of the TBID assessment, in accordance with the California Streets and Highway Code sections 36534 and 36535; and WHEREAS, at that public hearing regarding the renewal of the TBID for the 2020/21 fiscal year, affected businesses had the opportunity to protest the TBID renewal, with the following results: FOR: None AGAINST: None NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay as follows: 1. The above recitations are true and correct, and incorporated herein by reference. 2. The City Council, having affirmed the annual report and proposed budgets at its regular meeting held on June 9, 2020, and considered all testimony, reports and opinions presented at the June 23, 2020 public hearing, hereby declares the renewal of the Morro Bay Tourism Business Improvement District for the 2020/21 fiscal year, and instructs the hoteliers and vacation rentals to levy and collect 3% assessments for overnight stays of 30 days or less. PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 23rd day of June 2020 by the following vote: AYES. Headding, Addis, Davis, Heller, McPherson NOES. None ABSENT: None ATTEST: afv‘r%-• NA SWANSON, City Clerk ir • JOHN tr E4DDI{NG, Mayor Resolution No. 59-20 Exhibit A Morro Bay Business Improvement District Annual Report for FY 2020-21 Presented to the Morro Bay City Council by the Morro Bay Tourism Business Improvement District Advisory Board The City of Morro Bay's Tourism Business Improvement District at its regularly scheduled meeting on May 28, 2020, completed its review of the Annual Report as required by Section 3.60.060 of the Morro Bay Municipal Code (MBMC). Regarding the requirements for the Annual Report, as stated in Section 36533 of the California Streets and Highways Code: 1. The Morro Bay Tourism Business Improvement District (MBTBID) Advisory Board did not propose any changes in the Boundaries of the TBID, which were established in MBMC Section 3.60.040 to be the boundaries of the City of Morro Bay. 2. The improvements and activities to be provided for in Fiscal Year FY 2020/21 are those services and activities permitted under Section 3.60.030 of the Morro Bay Municipal Code, which include: A. The general promotion of tourism within the district to include costs as specified in the business plant to be adopted annually; and B. Implementation of the strategic plan; and C. Marketing of Foreign Independent Travelers (FIT), conference, group, and film business that benefits local tourism and the local hotel industry in the district; and D. The marketing of the district to the travel industry in order to benefit local tourism and the local hotel industry in the district GOALS & OBJECTIVES for FY 2020/21 1. Increase overall occupancy & hotel/motel/vacation rental revenues, especially during midweek and shoulder season through our new destination assets such as the website and implementation of the strategic plan and new branding. 2. Midweek — be more aggressive through digital media to increase stays plus grow mid -week stays through FIT and group longer stays. 3. Extend the number of average hotel/motel/vacation rental room nights beyond the current level of 1.8. 4. Help incrementally increase the hotel/motel/vacation rental Average Daily Rate (ADR) through the promotion and elevation of the destination. Resolution No 59-20 Exhibit A 5. Bring exposure to Morro Bay as a viable domestic and international destination for individuals and groups which will increase longer stays. 6. Assist with the development and growth of athletic competitions and events that attract overnight guest and that fit in our strategic plan model. 7. Create opportunities to positively impact sales tax businesses & drive economic development in the City of Morro Bay such as new or upgrade of hotel stock, grow the quality of events to entice a higher level of visitor. 8. Positively impact transient occupancy tax (TOT) for the City of Morro Bay. 9. Complete integration of vacation rentals into the TBID. 3. An estimate of the cost of providing the improvements and the activities for that fiscal year (as described below with the FY 2020/21 Proposed Budget). FY 2020-21 Proposed Budget - Attached Sources: The FY 2020/21 projected actual sources include total sources of $550,000, all from TBID assessment revenues. Uses: The FY 2020/21 projected actual expenditures are $384,307, netting a $165,693 change to the fund balance. The attached budget shows FY 2020/21 revised budget, projected actuals, and the variance of the projected actuals compared to the revised budget. 4. No change in the TBID method or basis of levying the assessment was proposed for FY 2020/21 More specifically, the Morro Bay TBID Advisory Board approved a motion to recommend that the 3% Assessment for any hotel, motel, vacation rental, or bed and breakfast establishment in the City of Morro Bay be continued in FY 2020/21. 5. The TBID budget for FY 2019/20 is projected to include $ -0- surplus left over for carryover into FY 2020/21. 6. The amount of any contributions to be made from sources other than assessments levied is zero for FY2020/21. 0) 0) 1 Rfri 0) Cn CO N 1 0 N City of Morro Bay 2020 Amended 2020 Actual Amount tit r-3 QJ 0) 3 m 0 N M M w O to ro 2019 Actual Amount 2018 Actual Amount Account Description G/L Account Number 007 - MBT-BID L1 L!l w z w 3170 - Promotion & Advertising Department: 350-Rev Cursvc - Revenues From Current Services 0 0 o O 0 O O O O o 0 o tl o O O O O 0 0 O O O O 0 6 f,? 6 o NI o N to co tD Cr; O al Tr O � t.A o en 0 rel r1 rt xi: O t7l 0-% 03 00 CO d- M d' 'UV Ni. M Advertising - Guides and Magazines 007-3170 3400 Account Classification Total: 350-Rev Cursvc - Revenues From Current Se.rwcec 390-Mist Rev - Miscellaneous Revenues Other Misc Revenues 007-3170 3990 0 0 o co O o VI Account Classification Total: 390-f1lisc Rev-,'/isce//anecus Revenues CT N C) cz C O O E O 1 0 0 r4 M 3J 0 4.3 ^_ W E 0 W 0 3510 - Accounting & Treasury Department: 550,000.0000 823,644.0000 489,298.0900 829,289.2200 802,877.2500 Transient Occupancy Tax 007-3510 3064 O 0 O O O 0 o O co co O O in in in Lr) to LA- O 0 tb co N N m m ;n - N N N N 000 co N J N N N CO CO 4.11- th to to N N co 03 rV r'J O 0 COCO -VI- t!} Account Classification Total:: 300-Rev Taxes - Revenues From Taxes Department Total: 3510 - Accounting & Treasury 7710 - Interfund Transactions 100-Interfund - Interfund Transfers 0 O 0 0 O 0 0 O O o O o to o 0 0 O 0 0 O O 0 co O 0 O 0 6 O O O O to O O 0 0 0 O O O co o co O 0 6 co coO 0 O an tD N 145,837.0000 125,428.0000 Transfers In 007-7710 3801 Account Classification Total: 100Interfund - Interfund Transfers 380-Intelfund - Interfund Revenue Transfers Intrafund Revenue Transfers 007-7710 3802 o 0 o 0 0 0 to to Account Classification Total.: 380-Interfund - Interfund Revenue Transfers co ro O 6 1- 0 d" O tD O M VT CO tf) $1,077,408.35 ON 0 O tN tt- 10 N N rn r, Aft tf} Department Total: 7710 - Interfund Transactions REVENUES Total Ln w Lf) z w a CU 1111 - Undistributed/Non-Dept. Department: 110-Other - Other Expense Loss on Investment 007-1111 8710 o o O o 0 0 4» Account Classification Total: 110-Other - Other Expense Department Total: 1111 - Undistributed/Non-Dept. 3170 - Promotion & Advertising Department: 10-Personnel - Personnel Services O O O 0 O O o 0 0 0 0 0 0 0 0 0 0 11-1 10 0 0 0 O 0 0 ai o 0 6 03 CO N N 0 O O 0 0 0 O O O O 0 0 O O O O O 0 0 O O 0 0 0 O 0 0 0 rl tD O Ct- rC t0` O Ul rr) 0 rl tD r1 1- .--1 Lf) 'cY tD al` 10 al rf N tQ 00 O tD O 0 0 0 0 O O O 00 00 00 o 0 00 M 10 0 O Ul N O O 0 0 tip O to O 1- 0 6Ni CO I O O N O t N. t0 tt N r 1 0 0 O O O O 0 O O O O 0 0 O CO 7-4 tp V O� 1- 6 O 6c�- tD NiO UD cc;n N O 1 1 to co r1 al N O tD ci O d M .1 O 0 O O 0 O O CD O O 0 0 0 O O N 0 OD O 0 O cm to co 0 0 0 O a5 O O to O O 6 to N Ltl N N tT O 00 to M a co a_ Cn QNN� 007-3170 4110 Part -Time Pay Employer Paid Benefits Pension Normal Cost PERS Unfunded Accrued Liability O al O ri N r-1 al rl .-1 r1 el LC) 01 r 01 't- T7- rt 0 0 O 0 co N M M M M M CD CD0 0 0 0 O O O Other Post Employment Benefit (OPEB) Expense 007-3170 4913 0 0 0 0 O 0 0 0 O O 0 O 1-1 0 0 0 0 0 0 0 0 0 O O O 0 u? O O O 0 0 O 0 O 0 0 O 0 O rn 0 O O O O o O CD CI0 CD CD0 0 0 0 0 0 o 0 0 0 0 0 0 0 O O j O O N rr CV r1 N 4-Eft rat' ( 0 Account Classification Total: 10-Personnel - Personnel Services 60-Supplies - Supplies O O 0 0 O 0 O 0 O 0 O O O O O 0 o O O O 0 O 0 0 O O 0 O O O O O 0 6 P. O� M tD M 4 '1 r1 0 0 0 O 0 O 0 0 0 0 0 0 0 N� O tD co L. O 0 M 0 in 0 tT LA Lf) N O M O ai N Cx5 N � d" rn 0 M N i/T M 0 O 0 0 O O O O 0 0 O 0 C\ CDV�- O O 0NJ O �f IDD rV tt- rn V- M n 03 1- 4» O O O O 0 CO O CO O O 0 a? O 0 r-1 0 O al O Ln ti- O o rJ Ln N N a1 Vl .-1 M 1.1) Fuel Oil & Lubricants 007-3170 5110 Other Expense 007-3170 5201 General Office Supplies 007-3170 5301 Copying Supplies 007-3170 5302 Forms Printing 007-3170 5305 Account Classification Total: 60-Supplies - Supplies .-1 12,500.1000 O O al rl O M r1 03 Consulting Services 007-3170 6105 165,000.0000 109,808.5700 282,426.7200 193,013.5900 Contractual Services 007-3170 6106 O 0 O O 0 O O O O 0 O 0 O O 0 O O O O O O O O O LO O N •t O rt Lf) O O O 0 O 0 0 O O O Cr-0 O N O al O O tD Ql Lf) M t\ N tD 1-1 229,265.0500 Promotion & Advertising 007-3170 6107 105,806.1800 O 0 O O 0 O O O CO 0 CO 0 fit- O 10 0 O O 1C O CO [0� Lr) lf) M rl CO Marketing Consulting 007-3170 6108 Print Ads - So. Region 007-3170 6113 Community Event Support 007-3170 6114 Print Ads - Other Regions 007-3170 6116 2020 Amended 2020 Actual Amount City of Morro Bay 2021 Level 1 CJ cn 2019 Actual Amount 2018 Actual Amount Account Description G/L Account Number O 0 0 0 O 0 0 0 0 0 0 0 0 0 O O O 0 0 0 0 O 0 0 0 0 0 0 0 0 0 O 0 0 0 O O O o 0 0 O O O 0 0 0 0 0 O O O O O O 0 0 0 0 0 0 0 O 0 0 0 0 0 0 O o 0 0 0 0 0 o O o 0 0 0 0 o O o o O O O o 0 . . . . . . . . . . . . . . . . . . . . . . . O O O O O O O O O O O O O O O O O O O O O O O O O O 0 O O O 0 0 ni0 tD O O 7-1 IN r i N vs--Leis-o0 rl r-i rN .-1 In N O O O O O O 0 co 13,000.0000 O O O O 0 O O O O 0 0 O O O 0 0 O O O O O co O O VD In 0 In r` rn r-t 272,000.0000 O O O O O O 0 0 O O O 0 O O 0 0 O O O 0 O O O 0 0 O 0 O 0 O 0 O O 0 O O O O 0 0 O 0 O 0 O O 0 O O O O 0 O 0 O O O O 0 0 O O 0 0 O O O O O O O O 6 6 6 O O O O O o O o o O O 0 0 0 o 0 0 0 VD O 0 1n N o N CT 0 1n In O In • In o 7-1 O O O 0 0 O 0 O O 0 0 O O 0 O O O O 0 O O O O 0 0 0 0 0 0 0 O 0 O O O O O O 0 0 O 0 0 0 o 0 ri N co co O O Ni O 1� 0 N 0 01 VD O O O O tt' O 0 N co co CO O O O O In M N 0 CT 0 c0 N O 0 O O In O 0 O O o ni o 0 0 0 1ri 01 v= co et; o co ai o 0 0 o ni o 0 0o Iri Co N rn to a1 to r-i In 00 M a1 CT In 01 In tD to CT to 01 -1 Pi ri niri 14,868.1800 O O 0 O O 0 O O M 0 O 0 (� 0 to 0 O 10 O M ri In ri N O' rr1 03 ri ri r l CJl N r-1 rl 281,712.2800 O 0 0 0 0 O 0 0 O O O 0 O 0 O 0 0 0 O O 0 0 0 0 O 0 O O O O 0 0 O In N. 0 01 tt- at M 0 0 7-1 O O In O 0 N. a1 ri tt- ri ri O a1 0 0 N co co O O O V' tO c0 to to O O O O O rn O In CT to O CT O .i m rn al tD CT rN 01 CO tD tr ri It' tD CO tD 01 to 1-1al tt (N cr 7-1% Cn r-i r--1 r-i N r-1 0 O O O 0 O O O O O 0 0 0 0 0 O 0 0 O 0 O 0 0 C) O O 0 Cl O 0 0 0 0 0 C7 O O O 0 0 0 O 0 0 O 0 O el O 0 0 O 0 O CO 0 In O rM Cr .-i 0 0 0 el 10 111 el N. tt ri tt co O co O O al O tt O r. tD a1 0 0 O tt 1!1 01 N. tD N M xi: M N O O O 6, CT al CT a1 t\ N O 0 O O CT r`1 N tic; co O 1n O N tt tt" NI- CT CO tO cr N ri N rn N a1 VD t0 N CO M M n CO N CO N N N r 1 rc tD M O n tt M ri N rrr1 co ri M r-i Promotion - Media 007-3170 6118 Promotion - Other 007-3170 6119 Trade Shows - Space Rent 007-3170 6120 Trade Shows - Trans. 007-3170 6121 Advertising Sponsorships 007-3170 6124 Professional Development 007-3170 6125 007-3170 6127 Out of Home Media 007-3170 6128 Digital Services 007-3170 6129 007-3170 6130 Promotion - Visiting Journalist 007-3170 6132 Tonal Services 0 CL aJ 4J O 007-3170 6199 aJ .D cJ 10 c U o o v c tT c CI. L aJ aJ aJ '-' E--- 0 D 007-3170 6201 007-3170 6220 007-3170 6300 007-3170 6308 Workers Comp Insurance 007-3170 6451 Unemployment Insurance 007-3170 6461 Meetings & Conferences 007-3170 6510 Mileage Reimbursement 007-3170 6511 Meals & Lodging 007-3170 6513 Travel Expense 007-3170 6514 Association Membership 007-3170 6519 o ri to o ai o tNt- ri Co re) In M411 rl 0 O O O O t\ O to an- N- in 'MD co Art an 0 ri n N CO S1,048,084.26 m� N CO tD CO O r CJi r ri 0'. t\ CO VI VT Department Total: 3170 - Promotion & Advertising 7710 - Interfund Transactions O O 0 O N O In N O 0 to rl Iri ri N as r-1 19,482.5400 Transfers Out 007-7710 8501 o 0 0 1n N t\ ad (NJ N O CO CO M 1I1 In tt 1rJ rN o0 to tfA- rl tf} 0 O O O O O t1 t a1 a1 co M M O ri ri 0'. Cr, M CO tft CO (0 In to N ri ri N r�1 rI N N O 0o co 0 ri ri r-1 to {f} ID th tr rl rV ti CO CO tt' a1 CT r1 r1 V1 if} Department Total: 7710 - Interfund Transactions $1,068,288.79 $917,860.71 EXPENSES Total 0 r-1 Cif 0 1.11 tt o to rvi O 0 CT O M tO O tt- Ln 10 • 03 � 7-1 tft V} {f} 0 0 O O 0 r� riCO N CD O Cr rri CT 10 CO CO {!} CO CO 4- VI tf} In r-i to 1n to to- S1,077,408.35 Total: 007 - MBT-BID Fund REVENUE $1,068,288.79 Total: 007 - MBT-BID Fund EXPENSE Fund Total: 007 - MBT-BID Resolution No 59-20 Exhibit A California Streets and Highway Code Section 36520-36537 36520. A parking and business improvement area may be established as provided in this chapter. 36521. The city council may establish an area on its own initiative. 36521.5. A county may not form an area within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form an area within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form an area within the territorial jurisdiction of another city without the consent of the city council of the other city. 36522. Proceedings to establish a parking and business improvement area shall be instituted by the adoption by the city council of a resolution of intention to establish the area. The resolution of intention shall do all of the following: (a) State that a parking and business improvement area is proposed to be established pursuant to this chapter and describe the boundaries of the territory proposed to be included in the area and the boundaries of each separate benefit zone to be established within the area. The boundaries of the area may be described by reference to a map on file in the office of the clerk, showing the proposed area. (b) State the name of the proposed area. (c) State the type or types of improvements and activities proposed to be funded by the levy of assessments on businesses in the area. The resolution of intention shall specify any improvements to be acquired. (d) State that, except where funds are otherwise available, an assessment will be levied annually to pay for all improvements and activities within the area. (e) State the proposed method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business. (f) State whether new businesses will be exempt from the levy of the assessment, pursuant to Section 36531. (g) Fix a time and place for a public hearing on the establishment of the parking and business improvement area and the levy of assessments, which shall be consistent with the requirements of Section 54954.6 of the Government Code. Resolution No. 59-20 Exhibit A (h) State that at the hearing the testimony of all interested persons for or against the establishment of the area, the extent of the area, or the furnishing of specified types of improvements or activities will be heard. (i) Describe, in summary the effect of protests made by business owners against the establishment of the area, the extent of the area, and the furnishing of a specified type of improvement or activity, as provided in Section 36524. 36523. Notice of a public hearing held under Section 36524, 36541, 36542, or 36550 shall be given by both of the following: (a) Publishing the resolution of intention in a newspaper of general circulation in the city once, for at least seven days before the public hearing. (b) Mailing of a complete copy of the resolution of intention by first-class mail to each business owner in the area within seven days of the city council's adoption of the resolution of intention. (c) Notwithstanding subdivision (b), in the case of an area established primarily to promote tourism, a copy of the resolution of intention shall be mailed by first-class mail within seven days of the city council's adoption of the resolution of intention, to the owner of each business in the area which will be subject to assessment. 36523.5. Notwithstanding Section 36523, prior to adopting any new or increased assessment, the city council shall give notice pursuant to Section 54954.6 of the Government Code in lieu of publishing notice pursuant to subdivision (a) of Section 36523. 36524. (a) At the public hearing, the city council shall hear and consider all protests against the establishment of the area, the extent of the area, or the furnishing of specified types of improvements or activities within the area. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. (b) Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. (c) Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. Resolution No. 59-20 Exhibit A 36525. (a) If written protests are received from the owners of businesses in the proposed area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to create the specified parking and business improvement area or to levy the proposed assessment, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (b) If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the area, those types of improvements or activities shall be eliminated. 36526. (a) At the conclusion of the public hearing to establish the area, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements and activities to be funded with the revenues from the assessments. (b) At the public hearing, the city council may only make changes in, to, or from, the boundaries of the proposed parking and business improvement area that will exclude territory which will not benefit from the proposed improvements or activities. However, proposed assessments may only be revised by reducing any or all of them. (c) The city council shall not change the boundaries of the area to include any territory that will not, in its judgment, benefit by the improvement or activity. Any addition of territory to the proposed boundaries of the area may be made only upon notice to the owners of the businesses proposed to be added to the area, as provided in Section 36523, and upon a public hearing on the addition of territory, as provided in Section 36524. 36527. if the city council, following the public hearing, decides to establish the proposed parking and business improvement area, it shall adopt an ordinance to that effect. The ordinance shall contain all of the following: (a) The number, date of adoption, and title of the resolution of intention. (b) The time and place where the public hearing was held concerning the establishment of the area. (c) A determination regarding any protests received at the public hearing. (d) The description of the boundaries of the area and of each separate benefit zone established within the area. (e) A statement that a parking and business improvement area has been established and the name of the area. (f) A statement that the businesses in the area established by the ordinance shall be subject to any amendments to this part. Resolution No. 59-20 Exhibit A (g) The description of the method and basis of levying the assessments, with a breakdown by classification of businesses if a classification is used. (h) A statement that the improvements and activities to be provided in the area will be funded by the levy of the assessments. The revenue from the levy of assessments within an area shall not be used to provide improvements or activities outside the area or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the area. (i) A finding that the businesses and the property within the business and improvement area will be benefited by the improvements and activities funded by the assessments proposed to be levied. In the case of an area formed to promote tourism, only businesses that benefit from tourist visits may be assessed. (j) The time and manner of collecting the assessments. 36528. The city council may establish one or more separate benefit zones within the area based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. 36529. All provisions of this part applicable to the establishment, modification, or disestablishment of a parking and business improvement area apply to the establishment, modification, or disestablishment of benefit zones. The city council shall, to establish, modify, or disestablish a benefit zone, follow the procedure to establish, modify, or disestablish a parking and business improvement area. 36530. The city council shall appoint an advisory board which shall make a recommendation to the city council on the expenditure of revenues derived from the levy of assessments pursuant to this part, on the classification of businesses, as applicable, and on the method and basis of levying the assessments. The city council may designate existing advisory boards or commissions to serve as the advisory board for the area or may create a new advisory board for that purpose. The city council may limit membership of the advisory board to persons paying the assessments under this part. The city council may appoint the advisory board prior to adoption of the resolution of intention to create the area, so that the advisory board may recommend the provisions of the resolution of intention. 36531. The city council may exempt a business recently established in the area from the levy of the assessments, for a period not to exceed one year from the date the business commenced operating in the area. The city council shall state its determination to so exempt new businesses in the resolution of intention to establish the area and shall reaffirm its determination annually in the resolution of intention required to be adopted pursuant to Section 36534. 36532. The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the ordinance establishing the area. Resolution No. 59-20 Exhibit A 36533. (a) The advisory board shall cause to be prepared a report for each fiscal year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The report may propose changes, including, but not limited to, the boundaries of the parking and business improvement area or any benefit zones within the area, the basis and method of levying the assessments, and any changes in the classification of businesses, if a classification is used. (b) The report shall be filed with the clerk and shall refer to the parking and business improvement area by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following: (1) Any proposed changes in the boundaries of the parking and business improvement area or in any benefit zones within the area. (2) The improvements and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements and the activities for that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. (5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6) The amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c) The city council may approve the report as filed by the advisory board or may modify any particular contained in the report and approve it as modified. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments. 36534. (a) After the approval of the report, the city council shall adopt a resolution of intention to levy an annual assessment for that fiscal year. The resolution of intention shall do all of the following: (1) Declare the intention of the city council to change the boundaries of the parking and business improvement area, or in any benefit zone within the area, if the report filed pursuant to Section 36533 proposes a change. (2) Declare the intention of the city council to levy and collect assessments within the parking and business improvement area for the fiscal year stated in the resolution. (3) Generally describe the proposed improvements and activities authorized by the ordinance enacted pursuant to Section 36527 and any substantial changes proposed to be made to the improvements and activities. Resolution No 59-20 Exhibit A (4) Refer to the parking and business improvement area by name and indicate the location of the area. (5) Refer to the report on file with the clerk for a full and detailed description of the improvements and activities to be provided for that fiscal year, the boundaries of the area and any benefit zones within the area, and the proposed assessments to be levied upon the businesses within the area for that fiscal year. (6) Fix a time and place for a public hearing to be held by the city council on the levy of the proposed assessment for that fiscal year. The public hearing shall be held not less than 10 days after the adoption of the resolution of intention. (7) State that at the public hearing written and oral protests may be made. The form and manner of protests shall comply with Sections 36524 and 36525. (b) The clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the city not less than seven days before the public hearing. 36535. (a) The city council shall hold the public hearing at the time and in the place specified in the resolution of intention. The public hearing shall be conducted as provided in Sections 36524 and 36525. The city council may continue the public hearing from time to time. (b) During the course or upon the conclusion of the public hearing, the city council may order changes in any of the matters provided in the report, including changes in the proposed assessments, the proposed improvements and activities to be funded with the revenues derived from the levy of the assessments, and the proposed boundaries of the area and any benefit zones within the area. The city council shall not change the boundaries to include any territory that will not, in its judgment, benefit by the improvement or activity. (c) At the conclusion of the public hearing, the city council may adopt a resolution confirming the report as originally filed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. (d) Notwithstanding subdivision (c), if the primary purpose of the area is promotion of tourism, the city council may adopt a resolution confirming the report as submitted by the advisory board, or may adopt a resolution continuing the program and assessments as levied in the then current year without change, and that resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. As an alternative, the city council may modify the report and adopt a resolution confirming the report as modified but in that case the city council may adopt the resolution only after providing notice of the proposed changes as specified in Section 36523 and only after conducting a public hearing on the resolution as provided in Sections 36524 and 36525. Resolution No 59-20 Exhibit A 36536. The assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses and property within the parking and business improvement area. The city council may classify businesses for purposes of determining the benefit to a business of the improvements and activities provided pursuant to this part. 36537. The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36535. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.