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Assessments Within the City Shall Not Be Effective Without the City Council Consenting to the Changes; And

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Assessments Within the City Shall Not Be Effective Without the City Council Consenting to the Changes; And RESOLUTION R2017- 019 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NAPA, STATE OF CALIFORNIA, APPROVING THE OPERATING POLICY FOR THE NAPA VALLEY TOURISM IMPROVEMENT DISTRICT LOCAL GOVERNING COMMITTEE AND CONSENTING TO THE UPDATED NAPA VALLEY TOURISM IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN WHEREAS, on June 15, 2010, the Napa County Board of Supervisors adopted Resolution # 2010- 72 forming the Napa Valley Tourism Improvement District ( NVTID) for a five- year term; and WHEREAS, the City Council of the City of Napa consented to the formation of the NVTID with its adoption of Resolution R2010- 31 on March 16, 2010 ( Consenting Resolution); and WHEREAS, the Consenting Resolution provided that any substantive change to the NVTID Management District Plan for 2010-2015 ( Original Plan) that affected assessments within the City shall not be effective without the City Council consenting to the changes; and WHEREAS, on June 10, 2014, the Napa County Board of Supervisors adopted Resolution No. 2014- 64 which renewed the NVTID for a 10 -year term commencing on June 16, 2015 ( Renewal Resolution); and WHEREAS, the Renewal Resolution adopted a new Management District Plan for July 2015 through June 2025 ( Renewal Plan), which modified the Original Plan' s composition of the City of Napa' s Tourism Improvement District Local Governing Committee ( Napa TID) by decreasing the number of City representatives from two to one; increasing the number of lodging representatives by one; and redefining the Napa Chamber representative to be a representative of a visitor -serving or destination marketing entity designated by the Napa TID; and WHEREAS, the Renewal Plan modified the appointment procedure for the City of Napa's representative on the Napa TID to be designated by the Napa TID; and WHEREAS, on January 24, 2017, the Napa TID approved a draft Operating Policy provided as Exhibit " A" to this Resolution that provides general operating norms for the committee and clarifies the process by which preferred appointment procedure for the City of Napa will authorize a staff member or councilmember to serve as the City' s representative on the Napa TID; and R2017- 019 Page 1 of 3 February 21, 2017 Page 1 of 42 WHEREAS, the City Council has considered all information related to this matter, as presented at the public meetings of the City Council identified herein, including any supporting reports by City Staff, and any information provided during public meetings. NOW, THEREFORE, BE IT RESOLVED, by the' City Council of the City of Napa, as follows: 1. The City Council hereby finds that the facts set forth in the recitals to this Resolution are true and correct, and establish the factual basis for the City Council' s adoption of this Resolution. 2. The City Council hereby approves the Operating Policy for the City of Napa Local Governing Committee of the Napa Valley Tourism Improvement District ( attached hereto as Exhibit A, and incorporated herein by reference). 3. The City Council hereby consents to the County of Napa' s renewal of the NVTID in substantial conformance with the NVTID Management District Plan for July 2015 through June 2025, attached hereto as Exhibit B, and incorporated herein by reference. If, after adoption of this resolution, substantive changes are proposed to the NVTID Management District Plan that effect assessments within the City of Napa, the County of Napa shall obtain consent from the City Council before implementing the change. 4. The Clerk of the City Council is hereby directed to transmit a certified copy of this Resolution to the Clerk of the County of Napa Board of Supervisors. 5. This Resolution shall take effect immediately upon its adoption, as a documentation of the final action taken by Council. R2017- 019 Page 2 of 3 February 21, 2017 Page 2 of 42 6. 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Napa at a public meeting of said City Council held on the 21 st.day of February, 2017, by the following vote: AYES: Mott, Inman, Gentry, Sedgley, Techel NOES: None ABSENT: None ABSTAIN: None ATTEST: 4DtothLs City Clerk Approved as to form: Michael W. Barrett City Attorney R2017- 019 Page 3 of 3 February 21, 2017 Page 3 of 42 EXHIBIT " A" NAPA VALLEY TOURISM IMPROVEMENT DISTRICT CITY OF NAPA LOCAL GOVERNING COMMITTEE OPERATING; POLICY APPROVED FEBRUARY 21, 2017) Page 1 R2017- 019 Page 4 of 42 ARTICLE I PURPOSE The City of Napa Local Governing Committee of the Napa Valley Tourism Improvement District (" Napa TID") shall be governed by the following operating policies collectively the " Napa TID Operating Policy"): 1. 1 Establishment and Renewal. On June 15, 2010, the Napa County Board of Supervisors adopted Resolution # 2010- 72 (" Originating Resolution") forming the Napa Valley Tourism Improvement District (" NVTID") for a five- year term, to which the City Council of the City of Napa consented with its adoption of Resolution No.R2010- 31 on March 16,. 2010; and on June 10, 2014, the Board of Supervisors adopted Resolution No. 2014- 64 which renewed the NVTID for a 10 -year term commencing June 16, 2015 (" Renewal Resolution"). The Originating Resolution adopted the first NVTID Management District Plan, which provided for the formation of local governing committees to oversee the expenditure of NVTID funds for the benefit of lodging businesses in each jurisdiction within Napa County. (The Renewal Resolution adopted the second Management District Plan, which modified the composition and appointment procedure of the Napa TID, (further discussed in paragraph 2.1.) The purpose of the Napa TID is to prepare annual work plans and budgets related to expenditure of NVTID funds allocated to the City of Napa, oversee expenditures consistent with the work plan and budget, and prepare regular reports to the Napa Valley Tourism Corporation (" NVTC") which serves as the Owner' s Association for the NVTID ( further described in Paragraph 1. 3). This Operating Policy will guide the operation of the Napa TID. 1. 2 Funding. The NVTID imposes an annual assessment on lodging businesses at a rate of 2. 0% of gross short- term room rental revenue, as further described in the Management District Plan. The current NVTID assessment was initiated on June 16, 2015 and will continue for 10 years through June 15, 2025. Each jurisdiction within the county is responsible for collecting the assessments from each lodging business within its jurisdiction, and forwarding 74% of the assessment collected to Napa County, who will forward the funds to NVTC. Each jurisdiction retains 1% of the collected assessment to offset the estimated costs of its services in collecting and administering NVTID assessment moneys. The remaining 25% of the collected assessment is retained by the individual jurisdictions for destination specific tourism improvements and activities. 1. 3 Functions of the Napa TID. The Napa TID shall oversee the expenditure of the City of Napa' s locally designated assessment funds ( the 25% described in paragraph 1. 2) in accordance with the requirements of Resolution No. 2014- 64, the approved NVTID Management District Plan for July 2015June 2025 Management District Plan") and the Property and Business Improvement District Law of 1994 CTBID Law"; Streets and Highways Code Sections 36600, Page 2 R2017- 019 Page 5 of 42 et seq.), collectively the " NVTID Governing Laws". To further guide the expenditures of the collected assessment, the Napa TID shall: 1. 3. 1 Develop an Annual Budget for Recommendation to City Council. The Napa TID shall approve an annual budget for the expenditure of the City of Napa' s local NVTID funds. a) Annual Budget. The Napa TID shall prepare a proposed budget and work plan by April 30`'' of each calendar year for the upcoming fiscal year Quly 1 June 30). Once approved by the Napa TID, City staff will incorporate the budget and work plan into the City's budget approval process for consideration by the City Council of the City of Napa (" City Council"). Contingency Reserve Fund. The annual budget shall include a designation of funds for the creation of a reserve fund balance in accordance with the Napa TID- approved Annual Contingency Reserve Fund Policy, originally adopted October 23, 2012 and updated May 24, 2016, attached hereto as Attachment 1. Use of the reserve funds shall be restricted for use during periods of extended economic downturn and uncertainty, unanticipated events that may impact travel and hospitality in the region, or emergency/ natural disasters that impact the City of Napa and business community and result in fluctuations of Transient Occupancy Tax revenues. Further, use of reserve funds requires the Napa TID make specific findings, depending on the nature of the circumstance or event that requires the use, and approval of the majority of the Napa TID and with final approval by the City Council. ii. Administrative Expense Line Item. The annual budget shall include an administration line item to offset the cost to the City of Napa for providing staff services to support the operations of the Napa TID. The budgeted line item will be tied to the estimated direct costs for services. b) Annual Work Plan. The Napa TID shall prepare an annual work Plan to accompany the annual budget, which shall include tourism - related activities or improvements that drive visitor traffic to lodging properties within the city of Napa, particularly during non -peak times, including but not limited to the following: Locally specific market niche advertising and marketing a Tourism marketing and promotions, including website, print and other collateral material and technology applications Local special event programming, underwriting and promotion Community and cultural arts programming activities Page 3 R2017- 019 Page 6 of 42 Tourism -related streetscape enhancement and visitor -serving public improvements such as trails, pedestrian paths, signage, bike paths, etc., which improve upon the visitor experience and access to lodging properties in the city Seasonal and other tourism and visitor -related programs 1.
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