HomeMy WebLinkAbout4.4 Establishment of the Livermore Valley Wine Heritage DistrictSTAFF REPORT
CITY COUNCIL
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Agenda Item 4.4
DATE:October 19, 2021
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Establishment of the Livermore Valley Wine Heritage DistrictPrepared by:Hazel L. Wetherford, Economic Development Director
EXECUTIVE SUMMARY:The City Council will consider approving a Resolution granting consent to the City of Livermore to establish the Livermore Valley Wine Heritage District and include the City of Dublin in the district.
STAFF RECOMMENDATION:Adopt the Resolution Granting Consent to the City of Livermore to Establish the Livermore Valley Wine Heritage District and Include the City of Dublin in the District.
FINANCIAL IMPACT:There is no financial impact to the City associated with this action.
DESCRIPTION:The City of Livermore is working with the Livermore Valley Winegrowers Association and local winery businesses to form the Livermore Valley Wine Heritage District (LVWHD) pursuant to the Property and Business Improvement District Law of 1994 (94 Law). The City of Livermore has received support from a majority of the wineries and have exceeded the 51% required for formation. The City of Livermore has requested by resolution (Attachment 3) the inclusion of the City of Dublin in the LVWHD. The LVWHD Management District Plan (Plan) (Attachment 4) sets forth the annual assessment rate as 2% of gross direct-to-consumer sales revenue on winery sales. Based on the benefit received, assessments will not be collected on purchases made outside of the state of California. To form the LVWHD, a majority of the businesses paying the assessment must petition the City of Livermore for LVWHD formation (by amount paid).The 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
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City of Livermore has requested consent to act as the lead jurisdiction in the formation of the LVWHD as shown in the Plan, and to include the City of Dublin in the proposed LVWHD. The City of Livermore will follow the formation proceedings specified in the 94 Law, including accepting petitions, adopting a resolution declaring its intention to form the LVWHD, holding a public meeting and public hearing to allow for comments, and adopting a resolution establishing the LVWHD.Wine Heritage DistrictsWine Heritage Districts are an evolution of the traditional Business Improvement District (BID). BIDs allow business owners to organize their efforts to increase sales and promotional efforts. Business owners within the district fund a BID, and those funds are used to provide services that the businesses desire and benefit the businesses within the district.BID 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 marketing programs, business promotion activities, and infrastructure improvements.
They are designed, created, and governed by those who will pay the assessment.
They provide a stable funding source for business promotion.In California, BIDs are primarily formed pursuant to the 94 Law. This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between BIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the BID.Management District PlanThe Plan includes the proposed boundary of the LVWHD, a service plan and budget, and a proposed means of governance. The LVWHD includes wineries located within the boundaries of the Counties of Alameda and Contra Costa, and the cities of Dublin, Livermore, Sunol, and the Town of Danville as shown on the map within the Plan.The established LVWHD will have a five-year term beginning July 1, 2021 and ending on June 30, 2026 with the assessment commencing on July 1, 2021. Once per year beginning on the anniversary of the LVWHD establishment, there is a 30-day period in which winery owners paying 50% or more of the assessment may protest and begin proceedings to terminate the LVWHD. Once formed, the LVWHD is estimated to generate approximately $693,000 on an annual basis. A budget has been provided in the plan that includes the following items: Marketing and Brand Awareness, Quality Enhancement and Education, Administration and Operations, Advocacy –Community and Industry Engagement, Professional Development and Education, Reserves, and the Lead Agency Collection Fee. The formation of the LVWHD is similar to Visit Tri-Valley Travel Management District. VTV’s focus is on lodging and hospitality; whereas LVWHD will have a wine-centric focus to bring people into wine country and increase winery sales revenue.
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The City of Livermore or their designee shall be responsible for collecting the assessment on a quarterly basis (including any delinquencies, penalties, and interest) from each winery located in the boundaries of the LVWHD. The City of Livermore or their designee shall take all reasonable efforts to collect the assessments from each winery. The City of Dublin does not currently have a winery, but if a winery were to be established, then they would be assessed at the rate in effect at that time. The City of Dublin will be a participant as it relates to the City’s geographical location but will not have an active role in the LVWHD as the Livermore Valley Winegrowers Association’s Owners’ Association will be responsible for implementing the budget and programs identified in the Plan.
STRATEGIC PLAN INITIATIVE:None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted.
ATTACHMENTS:1) Resolution Approving Granting Consent to the City of Livermore to Establish the Livermore Valley Wine Heritage District and Include the City of Dublin in the District2) Exhibit A to the Resolution – Livermore Valley Wine Heritage District Map3) City of Livermore Resolution Requesting Consent of the Counties of Alameda and Contra Costa, and the Cities of Danville and Dublin to Form the Livermore Valley Wine Heritage District4) Livermore Valley Wine Heritage District Management Plan
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Attachment 1
Reso. No. XX-21, Item X.X, Adopted XX/XX/21 Page 1 of 1
RESOLUTION NO. XX – 21
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
GRANTING CONSENT TO THE CITY OF LIVERMORE TO ESTABLISH THE LIVERMORE
VALLEY WINE HERITAGE DISTRICT AND INCLUDE THE CITY OF DUBLIN IN THE
DISTRICT
WHEREAS,the City of Livermore is beginning the process to form the Livermore Valley
Wine Heritage District (LVWHD) pursuant to the Property and Business Improvement District Law
of 1994, Streets and Highways Code section 36600 et seq., to provide specific benefits to
assessed winery businesses in Livermore Valley Wine Country; and
WHEREAS,the City Council of the City of Livermore has requested consent to form the
LVWHD in the City of Dublin with adoption of Livermore City Council Resolution No. 2021-159,
dated September 13, 2021.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby
approves the following:
Section 1: The above recitals are true and correct.
Section 2: The City of Livermore is hereby granted consent to include the City of Dublin in
the LVWHD, as shown in Exhibit A to this Resolution, for the formation of the LVWHD and future
renewals.
Section 3: The Clerk of the City Council is hereby directed to transmit a certified copy of
this Resolution to the City Clerk of the Livermore City Council.
Section 4: This Resolution is effective upon its adoption.
PASSED, APPROVED AND ADOPTED this 19th day of October 2021, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
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Attachment 2
Exhibit A to the Resolution
Livermore Valley Wine Heritage District Map
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Attachment 353
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2021-2026
LIVERMORE VALLEY WINE HERITAGE DISTRICT
MANAGEMENT DISTRICT PLAN
March 17, 2021 Prepared pursuant to the Property and Business Improvement District Law of
1994, Streets and Highways Code Section 36600 et seq.
Attachment 4
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CONTENTS
I. OVERVIEW ......................................................................................................................................... 3
II. BACKGROUND ................................................................................................................................. 4
III. BOUNDARY ........................................................................................................................................ 5
IV. ASSESSMENT BUDGET AND SERVICES ................................................................................ 6
A. Annual Service Plan ............................................................................................................ 6
B. Annual Budget ..................................................................................................................... 8
C. California Constitutional Compliance ................................................................................. 8
D. Assessment ........................................................................................................................ 10
E. Penalties and Interest ......................................................................................................... 10
F. Time and Manner for Collecting Assessments .................................................................. 11
V. GOVERNANCE ............................................................................................................................... 12
A. Owners’ Association ......................................................................................................... 12
B. Brown Act and California Public Records Act Compliance ............................................. 12
C. Annual Report ................................................................................................................... 12
APPENDIX 1 – LAW .................................................................................................................................... 13
APPENDIX 2 – ASSESSED BUSINESSES .............................................................................................. 24
Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
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LVWHD Management District Plan 3
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I. OVERVIEW
Developed by Livermore Valley Winegrowers Association (LVWA), a non-profit organization, the
Livermore Valley Tourism Wine Heritage District (LVWHD) is an assessment district proposed to
provide specific benefits to payors, by funding marketing and sales promotion and protection efforts
with the goal to advance assessed businesses in the Livermore Valley Wine Country. This approach
has been used successfully in other destination areas throughout the country to provide the benefit of
driving increased business sales directly to payors.
Location: The LVWHD includes wineries located within the boundaries of the Counties of
Alameda, and Contra Costa, and the cities of Danville, Livermore, Dublin, and Sunol,
as shown on the map in Section III.
Services: The LVWHD is designed to provide specific benefits directly to payors by increasing
winery sales and revenue therefrom. Marketing & brand awareness, community &
industry advocacy, quality enhancement & education, and professional development
& education efforts will promote assessed wineries in the LVWHD to increase winery
sales revenue.
Budget: The total LVWHD annual assessment budget for the initial year of its five (5) year
operation is anticipated to be approximately $693,000. This amount may fluctuate as
businesses open and close and winery sales change. A similar budget is expected to
apply to subsequent years, but this budget is expected to fluctuate as sales do.
Cost: The annual assessment rate is two percent (2%) of gross direct to consumer sales
revenue on winery sales. Based on the benefit received, assessments will not be
collected on purchases made outside of the state of California.
Collection: The City of Livermore (City) or a third-party collection agency shall be responsible for
collecting the assessment on a quarterly basis (including any delinquencies, penalties
and interest) from each winery located in the boundaries of the LVWHD. The City
or the third-party collection agency shall take all reasonable efforts to collect the
assessments from each winery.
Duration: The LVWHD will have a five (5) year life, beginning July 1, 2021 and ending on June
30, 2026. Once per year, beginning on the anniversary of LVWHD formation, there
is a thirty (30) day period in which owners paying fifty percent (50%) or more of the
assessment may protest and initiate a City Council hearing on LVWHD termination.
Management: The Livermore Valley Winegrowers Association will serve as the Owners’ Association
to provide improvements and activities for the LVWHD. The Association must
provide an annual report on activities and expenditures to the City, which is also
available to business owners.
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LVWHD Management District Plan 4
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II. BACKGROUND
Wine Heritage Districts (WHDs) are an evolution of the traditional Business Improvement District
(BID). BIDs utilize the efficiencies of private sector operation in the market-based promotion of
business districts. BIDs allow business owners to organize their efforts to increase sales and
promotional efforts. Business owners within the district fund a BID, and those funds are used to
provide services that the businesses desire and benefit the businesses within the district.
Business Improvement District services may include, but are not limited to:
Ø Marketing of the District
Ø Business Promotion Activities
Ø Infrastructure Improvements
In California, BIDs are formed pursuant to the Property and Business Improvement District Law of
1994 (94 Law). This law allows for the creation of special benefit assessment districts to raise funds
within a specific geographic area. The key difference between BIDs and other special benefit assessment districts is
that funds raised are managed by the private non-profit corporation governing the district.
There are many benefits to Business Improvement Districts:
Ø Funds cannot be diverted for other government programs;
Ø Services are customized to fit the needs of each district;
Ø They allow for a wide range of services, including those listed above;
Ø Business Improvement Districts are designed, created and governed by those who will
pay the assessment; and
Ø They provide a stable funding source for business promotion.
The 94 Law is provided in Appendix 1 of this document.
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LVWHD Management District Plan 5
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III. BOUNDARY
The LVWHD will include all wineries existing and in the future, within the boundaries of the portions
of the Counties of Alameda, and Contra Costa, and the cities of Danville, Livermore, Dublin, and
Sunol, as shown on the map below.
The term “winery” as used herein means: A business that is commercial growing and/or processing
of wine grapes; and/or must have a valid state license and/or federal permit to process or sell wine at
retail locations within the boundaries of the LVWHD.
The boundary, as shown in the map below, currently includes fifty-six (56) wineries. A complete
listing of wineries within the LVWHD can be found in Appendix 2.
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IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to
the payors that are not provided to those not charged, and which do not exceed the reasonable cost
to the City of conferring the benefits or granting the privileges. The privileges and services provided
with the LVWHD funds are marketing & brand awareness, advocacy, and quality enhancement &
education programs available only to assessed businesses.
A service plan budget has been developed to deliver services that benefit the assessed businesses. A
detailed annual budget will be developed and approved by LVWA. The table below illustrates the
initial annual budget allocations. The total initial assessment budget is $693,000.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the
assessment budget shall remain the same. However, the City and the LVWA board shall have the
authority to adjust budget allocations between the categories by no more than twenty percent (20%)
of the total budget per year. A description of the proposed improvements and activities for the initial
year of operation is below. The same activities are proposed for subsequent years. In the event of a
legal challenge against the LVWHD, any and all assessment funds may be used for the costs of
defending the LVWHD. The costs of creating the LVWHD may be repaid to LVWA reserves by
deducting repayment funds proportionally from budget categories.
Each budget category includes all costs related to providing that service. For example, the sales and
marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales
and marketing program. Staff time dedicated purely to administrative tasks is allocated to the
administrative portion of the budget. The costs of an individual staff member may be allocated to
multiple budget categories. The staffing levels necessary to provide the services below will be
determined by the Association on an as-needed basis.
Marketing & Brand
Awareness, 35%
$242,550.00
Quality
Enhancement &
Education, 18%
$124,740.00
Administration and
Operations, 15%
$103,950.00
Advocacy -Community &
Industry Engagement, 15%
$103,950.00
Professional Development
& Education, 10%
$69,300.00
Contingency / Reserve, 5%
$34,650.00
City Collection Fee,
2%$13,860.00
Initial Annual Assessment Budget -$693,000
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LVWHD Management District Plan 7
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Marketing & Brand Awareness
A brand awareness marketing program will promote the Livermore Valley Wine Heritage District
(“LVWHD”) as a premium winegrowing region and as a leader in the global wine community. The
brand awareness marketing program will have a central theme of promoting the LVWHD as a
desirable place to experience Livermore Valley wineries, and as a desirable area to purchase wines and
other estate produced products. The program has the goal of increasing demand for visitation to the
winegrowing region, retail sales, affinity for LVWHD grapes and wines, and recognition at and for
assessed businesses, and may include but is not limited to the following activities:
• Advertising across any and all media channels to promote assessed winery tasting rooms on
a local, regional or national level, including but not limited to: digital, print, television, radio
and strategic brand partnerships;
• Media Relations – Promoting assessed winery tasting rooms through development of media
relations strategies, including but not limited to: media familiarization tours, proactive media
pitching and/or influencer relations;
• Digital Marketing – Utilizing paid, earned and owned social media to increase awareness of
and engagement with assessed businesses;
• Events – Developing and executing winery focused special events to attract customers to
assessed businesses;
• Trade & Industry Engagement – Ensuring representatives are provided the opportunity to
attend trade shows, meetings, industry conferences, road shows, and events to promote
assessed businesses; Create programs that engage key trade and industry influencers with the
Livermore Valley;
• Print Collateral – Preparing and producing collateral, promotional materials such as
brochures, flyers and maps for assessed winery tasting rooms;
• Brand Enhancement – Engage with third party brand development agency to develop brand
platform and materials to assist with marketing assessed winery hospitality facilities;
• Consumer Analytics – Identify and leverage consumer demographic, geographic and
psychographic data to target messaging that markets Livermore Valley as a premier, unique
wine destination to attract customers to assessed winery hospitality facilities; and
• Signage Program – Ensure coordinated local signage for the Livermore Valley wine region.
Advocacy – Community & Industry Engagement
Advocacy programs will utilize dedicated time to provide unified attention, communication, and
responsiveness throughout the LVWHD. The advocacy program will also include efforts to form
relationships and collaborate with local government agencies, as well as community and regional
organizations and entities, to provide a unified voice to represent assessed wine tasting facilities’ best
interests on topics related to economic development, regulations, and planning decisions that impact
LVWHD wine tasting facilities, with the goal to advance, promote and protect the Livermore Valley
Wine Country. Additionally, advocacy programs will engage and demonstrate leadership in key state
and national trade and industry programs and organizations.
Quality Enhancement & Education
Educational programs and quality enhancement initiatives will be developed for assessed wine tasting
facilities designed to emphasize and enhance excellence and leadership in the industry, with the
ultimate goal of increasing visitation, sales, and brand value for local wineries. Such programs are
intended to bring increased exposure and prominence to Livermore Valley Wine Country as a world-
class winery destination through continued education to amplify exceptional practices of the growing
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LVWHD Management District Plan 8
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of wine grapes and vinification of wine. The program shall include initiatives to enhance wine quality
and secure industry recognition for Livermore Valley Wine Country as a premier winemaking and
grape-growing region.
Professional Development & Education
Programs and training for assessed winery facilities related to winemaking, wine grape growing, sales,
hospitality, direct to consumer, marketing, media interviews, business operations and best practices.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing
costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and
accounting fees.
A certified public accountant may complete an agreed-upon procedures of the Owners’ Association’s
allocation of LVWHD funds and usage in accordance with the terms and condition of the plan, at the
City’s discretion. The audit may be performed by the City, or the City may hire an independent audit
firm at their expense.
City Collection Fee
The City of Livermore shall be paid a fee equal to two percent (2%) of the amount of assessment
collected to cover its costs of collection and administration.
Contingency / Reserve
The budget includes a contingency line item to account for lower than anticipated assessments. If
there are contingency funds collected, they may be held in a reserve fund or utilized for other program,
administration or renewal costs at the discretion of the Owners’ Association. Policies relating to
contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies
from the reserve fund shall be set by the Owners’ Association. Contingency/reserve funds may be
spent on District programs or administrative and renewal costs in such proportions as determined by
the Owners’ Association. The reserve fund may be used for the costs of renewing the LVWHD.
B. Annual Budget
The total five (5) year improvement and service plan budget is projected at approximately $693,000
annually, or $3,465,000 through 2026. This amount may fluctuate as businesses open and close and
winery sales change.
C. California Constitutional Compliance
The LVWHD assessment is not a property-based assessment subject to the requirements of
Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real
property.1 Rather, the LVWHD assessment is a business-based assessment, and is subject to
Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.
Two of these exceptions apply to the LVWHD, a “specific benefit” and a “specific government
service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the
City of conferring the benefits or providing the services.
1. Specific Benefit
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
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Proposition 26 requires that assessment funds be expended on, “a specific benefit 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 benefit or granting the
privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed
businesses, and are intended only to provide benefits and services directly to those businesses paying
the assessment. These services are tailored not to serve the general public, businesses in general, or
parcels of land, but rather to serve the specific businesses within the LVWHD. The activities described
in this Plan are specifically targeted to increase sales for assessed wineries within the boundaries of the
LVWHD, and are narrowly tailored. LVWHD funds will be used exclusively to provide the specific
benefit of increased sales revenue directly to the assessees. Assessment funds shall not be used to
feature non-assessed wineries in LVWHD programs, or to directly generate sales for non-assessed
wineries. The activities paid for from assessment revenues are business services constituting and
providing specific benefits to the assessed wineries.
The assessment imposed by this LVWHD is for a specific benefit conferred directly to the payors that
is not provided to those not charged. The specific benefit conferred directly to the payors is an
increase in winery sales revenue. The specific benefit of an increase in sales revenue for assessed
wineries will be provided only to wineries paying the district assessment, with marketing & brand
awareness, advocacy, and quality enhancement & education efforts promoting wineries paying the
LVWHD assessment. The marketing & brand awareness, advocacy, and quality enhancement &
education efforts programs will be designed to increase sales revenue at each assessed winery. Because
they are necessary to provide the marketing & brand awareness, advocacy, and quality enhancement
& education efforts programs that specifically benefit the assessed wineries, the administration and
contingency services also provide the specific benefit of increased sales revenue to the wineries.
Although the LVWHD, in providing specific benefits to payors, may produce incidental benefits to
non-paying businesses, the incidental benefit does not preclude the services from being considered a
specific benefit. The legislature has found that, “A specific benefit is not excluded from classification
as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without
cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific 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 The legislature has
recognized that marketing and promotions services like those to be provided by the LVWHD are
government services within the meaning of Proposition 265. Further, the legislature has determined
that “a specific government service is not excluded from classification as a ‘specific government
service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the
payor as a consequence of providing the specific government service to the payor.”6
3. Reasonable Cost
LVWHD services will be implemented carefully to ensure they do not exceed the reasonable cost of
such services. The full amount assessed will be used to provide the services described herein. Funds
2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
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will be managed by the LVWA, and reports submitted on an annual basis to the City. Only assessed
wineries will be featured in marketing materials, receive sales leads generated from LVWHD-funded
activities, be featured in advertising campaigns, and benefit from other LVWHD-funded services.
Non-assessed wineries will not receive these, nor any other, LVWHD-funded services and benefits.
The LVWHD-funded programs are all targeted directly at and feature only assessed businesses. It is,
however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed
wineries receive incremental sales revenue, that portion of the promotion or program generating that
sales revenue shall be paid with non-LVWHD funds. LVWHD funds shall only be spent to benefit
the assessed businesses, and shall not be spent on that portion of any program which directly generates
incidental sales revenue for non-assessed businesses.
D. Assessment
The annual assessment rate is two percent (2%) of gross direct to consumer sales revenue of assessed
wineries. Based on the benefit received, assessments will not be collected on purchases made outside
of the state of California.
The term “gross sales revenue” as used herein means: the consideration charged by wineries, for all
direct to consumer sales of wine, wine club shipments (whether shipped or picked up), ticket sales,
tasting fees, tours and private and public special events, merchandise, prepared and packaged foods
for on-premise or off-premise consumption (whether sold in a tasting room or a stand-alone
restaurant on- premise), orders placed via telemarketing, telephone, online, email, whether carried out
at the time of purchase, shipped or picked up at a later date (pre-sales). Gross sales revenue shall not
include any federal, state or local taxes collected, including but not limited to sales and use taxes.
The assessment is levied upon and a direct obligation of the assessed winery. However, the assessed
winery may, at its discretion, pass the assessment on to customers. The amount of assessment, if
passed on to each customer, shall be disclosed in advance and separately stated from the amount of
rent charged and any other applicable taxes, and each customer shall receive a receipt for payment
from the business. If the LVWHD assessment is identified separately it shall be disclosed as the
“LVWHD Assessment.” The assessment is imposed solely upon, and is the sole obligation of the
assessed winery even if it is passed on to customers. The assessment shall not be considered revenue
for any purpose, including calculation of sales taxes.
Bonds shall not be issued.
E. Penalties and Interest
The LVWHD shall reimburse the City of Livermore (City) for any costs associated with collecting
unpaid assessments. If sums in excess of the delinquent LVWHD assessment are sought to be
recovered in the same collection action by the City, the LVWHD shall bear its pro rata share of such
collection costs. Assessed businesses which are delinquent in paying the assessment shall be
responsible for paying:
1. Original Delinquency
Any winery that fails to remit any assessment imposed by this section within the time required
shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the
assessment.
2. Continued Delinquency
Any winery that fails to remit any delinquent remittance on or before a period of thirty (30)
days following the date on which the remittance first became delinquent shall pay a second
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delinquency penalty of ten percent (10%) of the assessment in addition to the assessment and
the ten percent (10%) penalty first imposed.
3. Fraud
If the City or third-party collection agency determines that the nonpayment of any remittance
due under this article is due to fraud, a penalty of twenty-five percent (25%) of the amount of
the assessment shall be added thereto in addition to the penalties stated in paragraph one (1)
and two (2) above of this section.
4. Interest
In addition to the penalties imposed, any winery who fails to remit any assessment imposed
by this section shall pay interest at the rate of one-half of one percent (0.5%) per month or
fraction thereof on the amount of the assessment, exclusive of penalties, from the date on
which the remittance first became delinquent until paid.
F. Time and Manner for Collecting Assessments
The LVWHD assessment will be implemented beginning July 1, 2021 and continuing for five (5) years
to end on June 30, 2026. The City of Livermore or a third-party collection agency will be responsible
for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest)
from each winery located in each jurisdiction within the LVWHD. The City or a third-party collection
agency shall take all reasonable efforts to collect the assessments from each winery. The City or a
third-party collection agency shall forward the assessments collected to the Owners’ Association.
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V. GOVERNANCE
A. Owners’ Association
The City Council of the City of Livermore, through adoption of this 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 LVWHD as defined in Streets
and Highways Code §36612. The City Council has determined that Livermore Valley Winegrowers
Association (LVWA) will serve as the Owners’ Association for the LVWHD.
B. Brown Act and California Public Records Act Compliance
An Owners’ Association is a private entity and may not be considered a public entity for any purpose,
nor may its board members or staff be considered to be public officials for any purpose. The Owners’
Association is, however, subject to government regulations relating to transparency, namely the Ralph
M. Brown Act and the California Public Records Act. These regulations are designed to promote
public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown
Act (Government Code §54950 et seq.). Thus, meetings of the LVWA board and certain committees
must be held in compliance with the public notice and other requirements of the Brown Act. The
Owners’ Association is also subject to the record keeping and disclosure requirements of the California
Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and
the vote or abstention on that action of each member present for the action.
C. Annual Report
The LVWA shall present an annual report at the end of each year of operation to the City Council
pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones
or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year.
• An estimate of the cost of providing the improvements and the activities for that fiscal year.
• 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.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous
fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments
levied pursuant to this part.
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APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2020 SUPPLEMENT ***
(ALL 2019 LEGISLATION)
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.”
36601. Legislative findings and declarations; Legislative guidance
The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are
economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate
facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of business
districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts.
(c) It is of particular local benefit to allow business districts to fund business related improvements,
maintenance, and activities through the levy of assessments upon the businesses or real property that receive
benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific
benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property,
businesses, or persons not assessed receive incidental or collateral effects that benefit them.
(e) Property and business improvement districts formed throughout this state have conferred special benefits
upon properties and businesses within their districts and have made those properties and businesses more
useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the
incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the
30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement
districts have become even more important tools with which communities can combat blight, promote
economic opportunities, and create a clean and safe environment.
(g) Since the enactment of this act, the people of California have adopted Proposition 218, which added
Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of,
and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution
provides that property-based districts may only levy assessments for special benefits.
(h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its
interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits
in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this
act, which discourages the use of assessments to fund needed improvements, maintenance, and
activities in property-based districts, contributing to blight and other underutilization of property.
(2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed
inherently produce incidental or collateral effects that benefit property or persons not assessed.
Therefore, for special benefits to exist as a separate and distinct category from general benefits, the
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incidental or collateral effects of those special benefits are inherently part of those special benefits.
The mere fact that special benefits produce incidental or collateral effects that benefit property or
persons not assessed does not convert any portion of those special benefits or their incidental or
collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity
regarding restrictions on assessments they may levy and the proper determination of special benefits.
Legislative clarity with regard to this act will provide districts with clear instructions and courts with
legislative intent regarding restrictions on property-based assessments, and the manner in which
special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments
within property and business improvement districts, to ensure that those assessments conform to all constitutional
requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not
affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or
the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different
method of levying assessments for similar or additional purposes from those set forth in this part. A property and
business improvement district created pursuant to this part is expressly exempt from the provisions of the Special
Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law,
as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall
remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment.
(e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal
services supplemental to those normally provided by the municipality.
(f) Other services provided for the purpose of conferring special benefit upon assessed real property or
specific benefits upon assessed businesses located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and
providing activities that will provide certain benefits to properties or businesses located within a property and business
improvement district.
36607. “Business”
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“Business” means all types of businesses and includes financial institutions and professions.
36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with
Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which
includes only cities, counties, or a city and county, or the State of California.
36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or
board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined
in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an
estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs.
(c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets.
(j) Facilities or equipment, or both, to enhance security of persons and property within the district.
(k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622.
36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement
improvements, maintenance, and activities specified in the management district plan. An owners’ association may be
an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not
be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials
for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times
when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code),
for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district.
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36614.5. “Property and business improvement district”; “District”
“Property and business improvement district,” or “district,” means a property and business improvement district
established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property.
36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment.
36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise
known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the
owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation
to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final
and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the
signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature
of the business owner, the signature of the authorized agent of the business owner shall be sufficient.
36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above
general benefits conferred on real property located in a district or to the public at large. Special benefit includes
incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts
even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general
enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions
This part provides an alternative method of financing certain improvements and activities. The provisions of this part
shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or
activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking
and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and
effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district
A property and business improvement district may be established as provided in this chapter.
36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of
that city. A city may not form a district within the unincorporated territory of a county without the consent of the board
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of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without
the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district
(a) Upon the submission of a written petition, signed by the property or business owners in the proposed
district who will pay more than 50 percent of the assessments proposed to be levied, the city council may
initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.
The amount of assessment attributable to property or a business owned by the same property or business
owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be
included in determining whether the petition is signed by property or business owners who will pay more
than 50 percent of the total amount of assessments proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a summary of
the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained.
(3) Information specifying that the complete management district plan shall be furnished upon
request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of
the proposed assessment, a statement as to whether the assessment will be levied on property or
businesses within the district, a statement as to whether bonds will be issued, and a description of
the exterior boundaries of the proposed district, which may be made by reference to any plan or map
that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be
sufficient if they enable an owner to generally identify the nature and extent of the improvements,
maintenance, and activities, and the location and extent of the proposed district.
(2) A time and place for a public hearing on the establishment of the property and business
improvement district and the levy of assessments, which shall be consistent with the requirements
of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel
of property and, if businesses are to be assessed, each business within the district. If the assessment will be
levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner
to reasonably determine whether a business is located within the district boundaries. If the assessment will
be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property
and to allow a business owner to reasonably determine whether a business is located within the district
boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for
establishment or extension in a manner sufficient to identify the affected property and businesses included,
which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a
proposed property assessment district shall not overlap with the boundaries of another existing property
assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created
pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law,
including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing
with Section 36500)). This part does not prohibit the boundaries of a business assessment district created
pursuant to this part to overlap with another business assessment district created pursuant to this part. This
part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap
with a property assessment district created pursuant to this part.
(d) The improvements, maintenance, and activities proposed for each year of operation of the district and the
maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation
are the same, a description of the first year’s proposed improvements, maintenance, and activities and a
statement that the same improvements, maintenance, and activities are proposed for subsequent years shall
satisfy the requirements of this subdivision.
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(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt
service in each year of operation of the district. If the assessment is levied on businesses, this amount may
be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year
of operation of the district is not significantly different, the amount proposed to be expended in the initial
year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this
subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the
assessment in sufficient detail to allow each property or business owner to calculate the amount of the
assessment to be levied against his or her property or business. The plan also shall state whether bonds will
be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number
of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding
these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy
assessments until the maximum maturity of the bonds. The management district plan may set forth specific
increases in assessments for each year of operation of the district.
(i) The proposed time for implementation and completion of the management district plan.
(j) Any proposed rules and regulations to be applicable to the district.
(k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for
properties to be assessed, and a statement of the method or methods by which the expenses of a
district will be imposed upon benefited real property or businesses, in proportion to the benefit
received by the property or business, to defray the cost thereof.
(2) In a property-based district, the proportionate special benefit derived by each identified parcel
shall be determined exclusively in relationship to the entirety of the capital cost of a public
improvement, the maintenance and operation expenses of a public improvement, or the cost of the
activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the
proportional special benefit conferred on that parcel. Only special benefits are assessable, and a
property-based district shall separate the general benefits, if any, from the special benefits conferred
on a parcel. Parcels within a property-based district that are owned or used by any city, public
agency, the State of California, or the United States shall not be exempt from assessment unless the
governmental entity can demonstrate by clear and convincing evidence that those publicly owned
parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects
that arise from the improvements, maintenance, or activities of a property-based district and that
benefit property or persons not assessed shall not be deducted from the entirety of the cost of any
special benefit or affect the proportionate special benefit derived by each identified parcel.
(l) In a property-based district, the total amount of all special benefits to be conferred upon the properties
located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any.
(n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer
certified by the State of California supporting all assessments contemplated by the management district plan.
(o) Any other item or matter required to be incorporated therein by the city council.
36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and
hearing procedure shall comply with Section 53753 of the Government Code.
(b) If a city council proposes to levy a new or increased business assessment, the notice and protest and
hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be
mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing
by any interested person. 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. A
written protest may be withdrawn in writing at any time before the conclusion of the public hearing. 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 or the authorized representative. A written protest that
does not comply with this section shall not be counted in determining a majority protest. If written protests
are received from the owners or authorized representatives of businesses in the proposed district that will pay
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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 50 percent, no further proceedings to levy the proposed assessment against such
businesses, 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.
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property
assessment and a new or increased business assessment, the notice and protest and hearing procedure for the
property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for
the business assessment shall comply with subdivision (b). If a majority protest is received from either the
property or business owners, that respective portion of the assessment shall not be levied. The remaining
portion of the assessment may be levied unless the improvement or other special benefit was proposed to be
funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or
modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with
the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the
public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and
business improvement district that will exclude territory that will not benefit from the proposed improvements,
maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district
shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business
improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited
to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of
the proposed assessment, a statement as to whether the assessment will be levied on property,
businesses, or both within the district, a statement on whether bonds will be issued, and a description
of the exterior boundaries of the proposed district, which may be made by reference to any plan or
map that is on file with the clerk. The descriptions and statements need not be detailed and shall be
sufficient if they enable an owner to generally identify the nature and extent of the improvements,
maintenance, and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention.
(3) The time and place where the public hearing was held concerning the establishment of the
district.
(4) A determination regarding any protests received. The city shall not establish the district or levy
assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established
by the resolution shall be subject to any amendments to this part.
(6) A statement that the improvements, maintenance, and activities to be conferred on businesses
and properties in the district will be funded by the levy of the assessments. The revenue from the
levy of assessments within a district shall not be used to provide improvements, maintenance, or
activities outside the district 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 district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the
district boundaries to create a special or specific benefit to the assessed parcels or businesses may
be provided, but shall be limited to marketing or signage pointing to the district.
(7) A finding that the property or businesses within the area of the property and business
improvement district will be benefited by the improvements, maintenance, and activities funded by
the proposed assessments, and, for a property-based district, that property within the district will
receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the
properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant
to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the
management district plan.
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36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the
clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5
(commencing with Section 3100) applies to an assessment district created pursuant to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district 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. If the assessment is to be levied on businesses, the city council may also define
categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to
be provided within the district and may impose a different assessment or rate of assessment on each category of
business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to
this part. The city council shall structure the assessments in whatever manner it determines corresponds with the
distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property-
based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business
improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of
business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the
procedure to establish, modify, or disestablish a property and business improvement district.
36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section
36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments
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 resolution levying the assessment. Assessments levied on real property may be collected at the
same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and
penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged
interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion
of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated
benefit to the real property within the property and business improvement district. The city council may
classify properties for purposes of determining the benefit to property of the improvements and activities
provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit
to the businesses within the property and business improvement district. The city council may classify
businesses for purposes of determining the benefit to the businesses of the improvements and activities
provided pursuant to this part.
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(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively
presumed not to benefit from the improvements and service funded through these assessments, and shall not
be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action
or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section
36626. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of
judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would continue
after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any
modification of the management district plan shall be made pursuant to this chapter.
36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention
(a) Upon the written request of the owners’ association, the city council may modify the management district
plan after conducting one public hearing on the proposed modifications. The city council may modify the
improvements and activities to be funded with the revenue derived from the levy of the assessments by
adopting a resolution determining to make the modifications after holding a public hearing on the proposed
modifications. If the modification includes the levy of a new or increased assessment, the city council shall
comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with
both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city
once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days
before the public hearing, to each business owner or property owner affected by the proposed
modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification
prior to the public hearing required by this section. The public hearing shall be held not more than
90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to
Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the
estimated cost of some or all of the proposed improvements described in the resolution of formation adopted
pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the
issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500))
or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section
6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall
govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915
may be modified by the city council as necessary to accommodate assessments levied upon business pursuant
to this part.
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(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements
specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of
those improvements, specify the number of annual installments and the fiscal years during which they are to
be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated
to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on
any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with
the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for
which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and
activities described in the report. The owners’ association’s first report shall be due after the first year of
operation of the district. The report may propose changes, including, but not limited to, the boundaries of the
property and business improvement district or any benefit zones within the district, the basis and method of
levying the assessments, and any changes in the classification of property, including any categories of
business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district
by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain
all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in
any benefit zones or classification of property or businesses within the district.
(2) The improvements, maintenance, and activities to be provided for that fiscal year.
(3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal
year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property
or business owner, as appropriate, to estimate the amount of the assessment to be levied against his
or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal
year.
(6) The estimated 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 owners’ association or may modify any particular
contained in the report and approve it as modified. Any modification shall be made pursuant to Sections
36635 and 36636.
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,
including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities
The management district plan may, but is not required to, state that an owners’ association will provide the
improvements, maintenance, and activities described in the management district plan. If the management district plan
designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by following
the procedures for establishment as provided in this chapter.
(b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived
from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed
district includes additional parcels or businesses not included in the prior district, the remaining revenues
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shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not
include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels
shall be refunded to the owners of these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue
bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments,
improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness,
outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by
resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of
law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees
may request disestablishment of the district. The first such period shall begin one year after the date
of establishment of the district and shall continue for 30 days. The next such 30-day period shall
begin two years after the date of the establishment of the district. Each successive year of operation
of the district shall have such a 30-day period. Upon the written petition of the owners or authorized
representatives of real property or the owners or authorized representatives of businesses in the
district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution
of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing
required by this section. The resolution shall state the reason for the disestablishment, shall state the time and
place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues
of the assessments levied within the property and business improvement district. The notice of the hearing
on disestablishment required by this section shall be given by mail to the property owner of each parcel or to
the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the
public hearing not less than 30 days after mailing the notice to the property or business owners. The public
hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district;
Calculation of refund; Use of outstanding revenue collected after disestablishment of district
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all
outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired
with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property
or businesses then located and operating within the district in which assessments were levied by applying the
same method and basis that was used to calculate the assessments levied in the fiscal year in which the district
is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be
spent on improvements and activities specified in the management district plan.
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that
was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the
amount of any refund.
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APPENDIX 2 – ASSESSED BUSINESSES
3 Steves Winery Jackson Cellars / Mitchell Katz
Arroyo Cellars Las Positas Vineyards
Beck Family Vineyards Leisure Street Winery
Bent Creek Winery Longevity Wines
Big White House, LLC Madison Vineyards
BoaVentura de Caires Winery McGrail Vineyards and Winery
Bodegas Aguirre Murrietas Well
Caddis Winery Nella Terra Cellars
Cedar Mountain Winery Nottingham Cellars
Charles R Vineyards Occasio Winery
Chateau Bellevue Odiesa Wine Company
Chouinard Vineyards Omega Road Winery
Concannon Vineyards Page Mill Winery
Crooked Vine/Stoney Ridge Pat Paulsen Vineyards
Cuda Ridge Wines Retzlaff Vineyards
Dante Robere Vineyards Ricigliano LLC
Darcie Kent Vineyards LLC Rios-Lovell Winery
Del Sole Winery, LLC Rodrigue Molyneaux Winery
Del Valle Winery Rosa Fierro Cellars
Eagle Ridge Vineyard
Ehrenberg Cellars Steven Kent Winery
Elliston Tenuta Vineyard
Enoteca Five Tesla Vinters
Favalora Vineyards The Lineage Collection
Fenestra Winery Vintagio Wines
Garre' Vineyard and Winery Wente Family Estates Westover Vineyards
Iron Palm Winery Wood Family Vineyards
* The list was developed with the most reliable information provided; however, the list may contain
discrepancies. This list shall include any future to-be opened businesses. Any business that may have
been missed in this list, but is still within the boundaries of the LVWHD, shall also be subject to
assessment.
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