Petaluma Municipal Code Ch. 6.08 Petaluma Tourism Improvement District

1 Editor’s Note: Former Chapter 6.08, Amusements, previously codiRed herein and containing portions of

Ordinance Nos. 371, 1357, 1525 and prior code Sections 14.87—14.103, was repealed in its entirety by Ordinance

No. 1921.

The city of Petaluma hereby renews the Petaluma tourism improvement district (PTID), for a ten-year life,

beginning January 1, 2024, or as soon as possible thereafter, and ending ten years from its start date, under the

provisions of the Property and Business Improvement District Law of 1994, as set forth in California Streets and

Highways Code Section 36600 et seq. (Ord. 2866 NCS §2, 2023.)

The management district plan (plan) dated November 6, 2023, is hereby adopted and approved. (Ord. 2866 NCS

§2, 2023.)

A. The activities to be provided to beneRt businesses in the PTID will be funded by the levy of assessments. The

revenue from the assessment levy shall not be used to provide activities or improvements outside the PTID unless

the activities or improvements are improvements or signage pointing to the PTID; or for any purpose other than

the purposes speciRed in this chapter, the resolution of intention, the resolution of formation, and the plan.

B. The council Rnds as follows:

1. The activities funded by the assessment will provide a speciRc beneRt to assessed lodging businesses

within the PTID that is not provided to those not paying the assessment.

2. The assessment is a charge imposed for a speciRc beneRt 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 beneRt or granting the privilege.

3. The assessment is a charge imposed for a speciRc 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.

4. Assessments imposed pursuant to the PTID are levied solely upon the assessed lodging business, and

the lodging 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 or customer, that portion shall be

speciRcally called out and identiRed for the transient or customer in any and all communications from the

business owner as the "PTID Assessment" or the "Tourism Assessment" as speciRed in the plan.

C. The assessments levied for the PTID shall be applied toward marketing, sales, communications, and

destination development programs, and other improvements and activities as set forth in the plan.

D. Assessments levied on certain lodging businesses within the PTID pursuant to this chapter shall be levied on

the basis of beneRt. Because the services provided are intended to increase room rentals, an assessment based

on gross short-term sleeping room rental revenue is the best measure of beneRt.

(Ord. 2866 NCS §2, 2023.)

The assessments for the PTID will total approximately six hundred eighty thousand dollars for its initial year of

operations. (Ord. 2866 NCS §2, 2023.)

Bonds shall not be issued to fund the PTID. (Ord. 2866 NCS §2, 2023.)

The renewed PTID includes all lodging businesses with ten rooms or more located within the boundaries of the

city of Petaluma as described in the plan. (Ord. 2866 NCS §2, 2023.)

A. The annual assessment rate is two percent of gross short-term sleeping room rental revenue. Based on the

beneRt received, assessments will not be collected on: stays of more than thirty consecutive days; stays by any

oTcer or employee of a federal, state, or foreign government who is exempt by reason of express provision of

federal or state law or international treaty.

B. The assessments shall be used for the purposes set forth herein and any funds remaining at the end of any

year may be used in subsequent years in which the PTID assessment is levied as long as they are used consistent

with the requirements set forth herein.

(Ord. 2866 NCS §2, 2023.)

The Petaluma Lodging Association (PLA) will be responsible for contracting with a service for collecting the

assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business

located in the boundaries of the PTID. The service shall take all reasonable eUorts to collect the assessments from

each assessed lodging business. (Ord. 2866 NCS §2, 2023.)

The council, through adoption of this chapter and the plan, has the right pursuant to California Streets and

Highways Code Section 36651, to identify the body that shall implement the proposed program, which shall be the

Owners’ Association of the PTID as deRned in California Streets and Highways Code Section 36612. The council has

determined that the PLA shall continue to be the PTID Owners’ Association. Passage of the ordinance codiRed in

this chapter authorizes the council to contract with PLA to continue to administer the PTID. (Ord. 2866 NCS §2,

2023.)

PLA, pursuant to California Streets and Highways Code Section 36650, shall cause to be prepared a report for each

Rscal year, except the Rrst year, for which assessments are to be levied and collected to pay the costs of the

improvement and activities described in the report. The Rrst report shall be due after the Rrst year of operation of

the PTID. (Ord. 2866 NCS §2, 2023.)

The PTID renewed pursuant to this chapter shall be subject to any amendments to the Property and Business

Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et seq.). (Ord. 2866 NCS

§2, 2023.)