HomeMy WebLinkAbout4.6 Renewal of the Tri-Valley Tourism Marketing DistrictSTAFF REPORT
CITY COUNCIL
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Agenda Item 4.6
DATE:February 1, 2022
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Renewal of the Tri-Valley Tourism Marketing DistrictPrepared by:Rhonda Franklin, Management Analyst II
EXECUTIVE SUMMARY:The City Council will consider renewing the City of Dublin’s participation in the Tri-Valley Tourism Marketing District and grant consent to the City of Pleasanton, the District’s lead jurisdiction, to renew the Tri-Valley Tourism Marketing District.
STAFF RECOMMENDATION:Adopt the Resolution Granting Consent to the City of Pleasanton to Renew the Tri-Valley Tourism Marketing District.
FINANCIAL IMPACT:The Tri-Valley Tourism Marketing District, if renewed, will continue working to expand and increase tourism to the city which may increase transient occupancy and sales tax revenues.
DESCRIPTION:In 2005, the City Council granted consent to the City of Pleasanton as the lead jurisdiction to form the original Tri-Valley Tourism Business Improvement District (TVTBID) for the purpose of expanding tourism in the Tri-Valley cities of Dublin, Livermore, Pleasanton, and San Ramon. The intent of creating the TVTBID was to create a revenue source which promotes and supports tourism in the Tri-Valley by marketing the area to potential visitors. In 2010, the TVTBID was renewed and expanded to include the Town of Danville. In 2015, the District was renamed to the Tri-Valley Tourism Marketing District (TVTMD). The TVTMD is a special benefit assessment district, which may be renewed pursuant to the Property and Business Improvement District Law of 1994. The Law of 1994 allows for the formation of multi-jurisdictional improvement districts, with consent of the included jurisdictions being granted to one “lead” jurisdiction. The City of Pleasanton serves as the lead jurisdiction for the TVTMD.
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Visit Tri-Valley, the organization that manages the TVTMD, has been exploring the renewal of the TVTMD as the current seven-year term is set to expire June 2022. After meeting with a subcommittee of staff and hoteliers representing each of the cities within the TVTMD, Visit Tri-Valley has prepared a Management District Plan (Attachment 3) that proposes the following components with the renewal:
The renewal includes all lodging businesses with five rooms or more located within the boundaries of the identified geographic areas as opposed to the current assessment including all lodging businesses regardless of number of rooms.
The renewal is proposed to begin on July 1, 2022 for a 10-year term as opposed to the current term of seven years.
The assessment fee will continue as a flat rate per room per night (no change from current assessment).
The renewal proposes a flat rate minimum of $3.25 per room per night, up to a maximum of $4.00 within the 10-year period as opposed to the current rate of $2.25 per room per night with a maximum of $3.00. The proposed assessment budget for the initial year of the 10-year term is anticipated to be approximately $2,166,000. Participating cities and counties receive a fee equal to 1% of the amount of the assessment collected within their jurisdiction to cover the costs of collection and administration. The Pleasanton City Council has requested consent for the City of Pleasanton to continue as the lead jurisdiction in renewing the TVTMD. On January 18, 2022, the Pleasanton City Council adopted a Resolution (Attachment 4) requesting consent from the participating cities and counties to adopt the renewed TVTMD.Adopting the Resolution (Attachment 1) will give the City of Pleasanton authority to include the City of Dublin in the renewed TVTMD. Pleasanton will follow the renewal proceedings specified in the Law of 1994, including accepting petitions, adopting a resolution declaring the intent to form the TVTMD, holding a public meeting and public hearing to allow for comments, and adopting aresolution to renew the TVTMD.
STRATEGIC PLAN INITIATIVE:None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted, and a copy of this Staff Report was sent to Visit Tri-Valley and the City of Pleasanton. In addition, extensive public outreach was conducted by Visit Tri-Valley staff and its board, including one-on-one meetings with hoteliers. In the City of Dublin, the majority of the lodging establishments have signed the petition agreeing to renew the district.
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ATTACHMENTS:1) Resolution Granting Consent to the City of Pleasanton to Renew the Tri-Valley Tourism Marketing District2) Exhibit A to the Resolution – Tri-Valley Tourism Marketing District Map3) Tri-Valley Tourism Marketing District Management District Plan4) City of Pleasanton Resolution No. 22-1267
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Attachment 1
RESOLUTION NO. XX – 22
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
GRANTING CONSENT TO THE CITY OF PLEASANTON TO RENEW THE TRI-VALLEY
TOURISM MARKETING DISTRICT
WHEREAS, the City of Pleasanton created the Tri-Valley Tourism Marketing District (TVTMD)
in 2006 pursuant to the Property and Business Improvement District Law of 1994, Streets and
Highways Code section 36600 et seq., to promote tourism and the lodging businesses in the Tri-
Valley area; and
WHEREAS,the City Council of the City of Pleasanton has requested consent to renew the
TVTMD in the City of Dublin with adoption of Pleasanton City Council Resolution No. 22-1267, dated
January 18, 2022.
NOW, THEREFORE, BE IT RESOLVED by 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 Pleasanton is hereby granted consent to include the City of Dublin in
the TVTMD, as shown in Exhibit A to this Resolution, for the renewal of the TVTMD and future
renewals.
Section 3: The City Clerk is hereby directed to transmit a certified copy of this Resolution to
the City Clerk of the City of Pleasanton.
Section 4: This Resolution is effective upon its adoption.
PASSED, APPROVED AND ADOPTED this 1st day of February, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
____________________________
City Clerk
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Attachment 2
Exhibit A to the Resolution
Tri-Valley Tourism Management District Map
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2022-2032
October 19, 2021 Prepared pursuant to the Property and Business Improvement District
Law of 1994, Streets and Highways Code section 36600 et seq.
TRI-VALLEY TOURISM MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
Attachment 3
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CONTENTS
Contents
I. OVERVIEW ........................................................................................................................................ 3
II. ACCOMPLISHMENTS ..................................................................................................................... 5
III. BACKGROUND ................................................................................................................................ 6
IV. BOUNDARY ....................................................................................................................................... 7
V. ASSESSMENT BUDGET AND SERVICES ................................................................................ 8
A. Annual Service Plan ............................................................................................................ 8
Sales & Marketing ........................................................................................................................ 9
Destination Development ............................................................................................................ 9
Administration and Operations .................................................................................................. 10
Contingency & Reserve .............................................................................................................. 10
Collection Fee ............................................................................................................................ 10
B. Annual Budget .................................................................................................................. 10
C. California Constitutional Compliance .............................................................................. 11
D. Assessment ........................................................................................................................ 13
E. Penalties and Interest ........................................................................................................ 14
F. Time and Manner for Collecting Assessments ................................................................. 14
VI. GOVERNANCE ............................................................................................................................... 15
A. Owners’ Association ......................................................................................................... 15
B. Brown Act and California Public Records Act Compliance ............................................ 15
C. Annual Report ................................................................................................................... 15
APPENDIX 1 – LAW .................................................................................................................................... 16
APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 27
Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
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TVTMD Management District Plan 3
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I. OVERVIEW
Developed by Visit Tri-Valley (VTV) and lodging business owners, the Tri-Valley Tourism Marketing
District (TVTMD) is an assessment district proposed to provide specific benefits to payors, by funding
marketing and sales promotion efforts for assessed businesses. This approach has been used
successfully in other destination areas throughout the country to provide the benefit of additional
room night sales directly to payors. The TVTMD was formed in 2006 as the Tri-Valley TMD for a
five (5) year term and renewed in 2010, and again in 2015 for a seven (7) year term. VTV and Tri-
Valley area lodging businesses now wish to renew the TVTMD for a ten (10) year term. Pursuant to
Streets and Highways Code §36620.5, the City of Pleasanton will continue to act as the lead jurisdiction
for renewing the TVTMD. The City of Pleasanton will continue to receive TVTMD annual reports.
Location: The TVTMD includes all lodging businesses with five (5) rooms or more located
within the boundaries of the Town of Danville (Town), the cities of Dublin,
Livermore, and Pleasanton (Cities) and those portions of the unincorporated areas of
Contra Costa and Alameda Counties (Counties), which include the communities of
Alamo, Blackhawk, and Sunol, the portion of the counties that lies between the cities
of Pleasanton and Livermore, and that portion of Alameda County which lies
southeast of Interstate 580, as shown on the map in Section IV.
Services: The TVTMD is designed to provide specific benefits directly to payors by increasing
awareness and demand for room night sales. Sales & marketing and destination
development programs will increase demand for overnight visits and market payors as
tourist, meeting and event destinations, thereby increasing demand for room night
sales.
Budget: The total TVTMD annual assessment budget for the initial year of its ten (10) year
operation is anticipated to be approximately $2,166,000. A similar budget is expected
to apply to subsequent years, but this budget is expected to fluctuate as room sales do,
and if the assessment rate is increased pursuant to this Plan. The budget is based on
the most recent revenue reports from 2020.
Cost: The annual assessment rate is three dollars and twenty-five cents ($3.25) of gross short-
term room rental revenue. Based on the benefit received, assessments will not be
collected on: stays of more than thirty (30) consecutive days, nor on stays by any
Federal or State of California officer or employee when on official business who makes
a claim that they are exempt, nor on stays by any officer or employee of a foreign
government who is exempt by reason of express provision of federal law or
international treaty. The annual assessment rate may be subject to an increase each
year starting in the third year, the amount of which shall be determined by the VTV
Board, as described in Section V. The total assessment rate may not exceed four dollars
($4.00).
Collection: Each City, Town and County shall be responsible for collecting the assessment on a
quarterly basis (including any delinquencies, penalties and interest) from each lodging
business located in their respective jurisdictions within the boundaries of the TVTMD.
Each City, Town and County shall take all reasonable efforts to collect the assessments
from each lodging business. On a quarterly basis, each City, Town and County shall
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TVTMD Management District Plan 4
October 19, 2021
forward the assessment collected to the City of Pleasanton, which shall forward the
assessments collected to the Owners’ Association.
Duration: The renewed TVTMD will have a ten (10) year life, beginning July 1, 2022, or as soon
as possible thereafter, and end ten (10) years from its start date. Once per year,
beginning on the anniversary of TVTMD renewal, 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 TVTMD termination. At the discretion of the
Owners’ Association, notification may be sent to lodging busines s owners by the
Owners’ Association in advance of the aforementioned thirty (30) day period.
Management: Visit Tri-Valley (VTV) shall continue to serve as the TVTMD’s Owners’ Association.
The Owners’ Association is charged with managing funds and implementing programs
in accordance with this Plan, and must provide annual reports to the Pleasanton City
Council. The Owners’ Association must provide an annual report to membership and
the City of Pleasanton.
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TVTMD Management District Plan 5
October 19, 2021
II. ACCOMPLISHMENTS
The TVTMD was initially formed in 2006 and was most recently renewed in 2015 for a seven (7) year
term. Over the course of the past seven (7) years, VTV has successfully executed hundreds of
marketing campaigns, promotions and generated leads through sales events that brought more ‘heads
in beds’ and ‘cheeks in seats’ to the region. With a current team of six (6) full time employees, VTV
has accomplished the following highlights over the past two (2) years alone:
• Certification by Destination International as a Destination Marketing Accredited Program
(DMAP);
• Recipient of the DMA West Best Idea Award 2019: Tri-Valley Ice Cream Trail;
• National Finalist for the US Travel Association Destiny Award 2019: Best DMO Website;
• Recipient of the Hermes Creative Award 2018 Gold Award: Tri-Valley Ice Cream Trail Video;
• New home of Tri-Valley Film Office;
• Delivered twelve (12) advertising campaigns annually;
• Produced the Tri-Valley Annual Visitors Guide (print and digital) and monthly
consumer/stakeholder newsletters, collateral and branded swag;
• Inaugural Taste Tri-Valley Restaurant Week;
• 123k annual referrals to business listings on www.visittrivalley.com;
• Hosted 15+ journalists / 20m media impressions annually;
• Implemented Cultural Heritage Tourism Initiative across two counties;
• International and California Public Relations representation;
• Local Recovery Campaign “ToTriValleywithLove.com” with five (5) cities;
• Created multiple visitor ‘trails’: beer, wine, caffeine, ice cream;
• Collaborated with regional partners and Booking.com for additional hotel revenues;
• Booked high profile sporting events annually with significant ROI for members (i.e.: USA
Water Polo, USA Weightlifting and USA Gymnastics);
• Trained front-line staff through “I AM TRI-VALLEY” educational platform;
• Provided free membership in California Hotel & Lodging Association for 40 hotels;
• Attended dozens of industry tradeshows with event and meeting planners for leads;
• Increased social media presence across Instagram, Facebook, Pinterest and Tiktok;
• Sponsored local events/ festivals (Scottish Games, Beer Festival, Concerts in the Park); and
• Provided essential crisis communications during pandemic and fires.
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TVTMD Management District Plan 6
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III. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed
in West Hollywood, California in 1989. Since then, over 100 California destinations have followed
suit. In recent years, other states have begun adopting the California model – Montana, South Dakota,
Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the
process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used
an existing business improvement district law to form a TBID. And, some cities, like Portland,
Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a
state law.
California’s TMDs collectively
raise over $300 million annually
for local destination marketing.
With competitors raising their
budgets, and increasing rivalry
for visitor dollars, it is
important that Tri-Valley
lodging businesses continue to
invest in stable, lodging-specific
marketing programs.
TMDs utilize the efficiencies of
private sector operation in the
market-based promotion of tourism districts. TMDs allow lodging business owners to organize their
efforts to increase demand for room night sales. Lodging business owners within the TMD pay an
assessment and those funds are used to provide services that increase demand for room night sales.
In California, most TMDs are formed pursuant to the Property and Business Improvement District
Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a
specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds
raised are returned to the private non-profit corporation governing the district.
There are many benefits to TMDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those
who pay;
• Funds cannot be diverted to general government programs;
• They are customized to fit the needs of payors in each destination;
• They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and
• They provide a stable, long-term funding source for tourism promotion.
1 2 4 6 9 12 19 25 29 32 38 46
61 64 70 75
88 95 99 101104109110
0
20
40
60
80
100
120
19891995200020012002200320042005200620072008200920102011201220132014201520162017201820192020Number of Districts Operating in
California
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TVTMD Management District Plan 7
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IV. BOUNDARY
The proposed TVTMD includes all lodging businesses with five (5) rooms or more located within the
boundaries of the Town of Danville, the cities of Dublin, Livermore, and Pleasanton and those
portions of the unincorporated areas of Contra Costa and Alameda Counties shown on the map
below, which include the communities of Alamo, Blackhawk, and Sunol, the portion of the counties
that lies between the cities of Pleasanton and Livermore, and that portion of Alameda County which
lies southeast of Interstate 580.
As used herein the term “lodging business” means any structure, or any portion of any structure,
which is occupied or intended or designed for occupancy by transients for sleeping purposes. Lodging
business includes any hotel, apartment complex, inn, motel, studio hotel, bachelor hotel, lodging
house, or rooming house. Lodging business does not include vacation rentals.
The TVTMD’s boundaries shall remain conterminous with each participating jurisdiction’s
boundaries. Therefore, future lodging businesses annexed into the participating jurisdiction’s after
the establishment of the TVTMD shall automatically be included within the TVTMD’s boundaries
when the responsible jurisdiction’s Financial Officer issues a lodging license to that lodging business.
The TVTMD, as shown below, will initially consist of forty (40) lodging businesses. The boundaries
shall be the boundaries as noted above of each jurisdiction as may be amended from time to time. A
complete listing of lodging businesses within the TVTMD can be found in Appendix 2.
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TVTMD Management District Plan 8
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V. 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 TVTMD funds are sales & marketing and destination development programs available only
to assessed businesses.
A service plan assessment budget has been developed to deliver services that benefit the assessed
businesses. A detailed annual assessment budget will be developed and approved by VTV. The table
below illustrates the initial annual assessment budget allocations. The total initial assessment budget
is $2,166,000.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the
budget shall remain the same. However, the City and the VTV board shall have the authority to adjust
budget allocations between the categories by no more than fifteen percent (15%) 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 TVTMD, any and all assessment funds may be used for the costs of defending the
TVTMD.
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 VTV on an as- needed basis.
Sales & Marketing,
$1,407,900 , 65%
Destination
Development,
$216,600 , 10%
Administration,
$389,880 , 18%
Collection Fee,
$43,320 , 2%
Contingency/Renewal,
$108,300 , 5%
Initial Annual Assessment Budget -
$2,166,000
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TVTMD Management District Plan 9
October 19, 2021
Sales & Marketing
A sales, marketing, and communications program will promote assessed lodging businesses as a
leisure, meeting, and event destinations. The sales, marketing, and communications program will have
a central theme of promoting the Tri-Valley area as a desirable place for overnight visits. The program
will have the goal of increasing overnight visitation and room night sales at assessed lodging
businesses, and may include, but is not limited to, the following activities:
• Internet marketing efforts to increase awareness and optimize internet presence to drive
overnight visitation and room sales to assessed lodging businesses; Print ads in magazines and
newspapers, television ads, and radio ads targeted at potential visitors to drive overnight
visitation and room sales to assessed lodging businesses;
• Building the Tri-Valley branding and local destination marketing to attract overnight visitation
to assessed businesses and the TVTMD;
• Attendance of trade shows to promote assessed lodging businesses;
• Sales blitzes or sponsorships for assessed lodging businesses;
• Familiarization tours of assessed lodging businesses;
• Preparation and production of collateral promotional materials such as brochures, guides,
flyers and maps featuring assessed lodging businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed
lodging businesses;
• Lead generation activities designed to attract tourists and group events to assessed lodging
businesses;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion
efforts for assessed lodging businesses;
• Education of hospitality staff on service and safety (related to alcohol and food) designed to
create a visitor experience that will bring repeat visits to assessed lodging businesses;
• Education of lodging business management and the Owners’ Association on marketing
strategies best suited to meet assessed lodging businesses’ needs; and
• Efforts supporting the Tri-Valley Film Office.
Destination Development
The Destination Development program will provide funding to assist in the building or financing of
well-vetted capital improvement projects or programs which attract overnight visitors to assessed
businesses. These projects may include, but is not limited to, the following activities:
• Comprehensive and integrated wayfinding signage system enhancements including signage
to parking decks and lots;
• Art and cultural projects or programs, to attract overnight visitors;
• Gateway enhancements to attract overnight visitors;
• Improvements to existing parks and facilities utilized by overnight visitors;
• Safe and fun entertainment complex for young teens and adults utilized by overnight
visitors;
• Live music venue which attracts overnight visitors;
• Infrastructure improvements that enhance Tri-Valley’s competitive position to attract
desirable special events year-round and attract overnight visitors;
• Destination product development research and master planning;
• Advocacy programs, memberships and partnerships dedicated to provide unified
communication, engagement and leadership;
• Welcome center and kiosk development and brand-centric visitor services training program
for both public and private sector staff; and
• Infrastructure improvements that enhance Tri-Valley’s competitive position to attract
desirable special events year-round and attract overnight visitors.
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TVTMD Management District Plan 10
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Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing
costs, office costs, and other general administrative costs such as insurance, legal and accounting fees.
Contingency & Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. 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 VTV Board. 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 VTV Board. Contingency/reserve funds may be spent on District programs
or administrative and renewal costs in such proportions as determined by the VTV Board. The reserve
fund may be used for the costs of renewing the TVTMD.
Collection Fee
The Town of Danville, the cities of Dublin, Livermore, and Pleasanton, and the counties of Alameda
and Contra Costa shall each be paid a fee equal to one percent (1%) of the amount of assessment
collected within their jurisdiction to cover their costs of collection and administration. The City of
Pleasanton shall be paid a fee equal to one percent (1%) of the amount of assessment collected in
within its jurisdiction, plus one percent (1%) of the total assessment collected from all jurisdictions,
to cover its costs of collection and administration.
B. Annual Budget
The total ten (10) year improvement and service plan budget is projected at approximately $2,166,000
annually, or $29,546,246 through 2032 if the maximum assessment rates are adopted. A similar budget
is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and
if the assessment rate is increased. The budget is based on the most recent revenue reports from 2020.
If the maximum annual assessment increases are adopted by the Owners’ Association upon approval
from the Pleasanton City Council, the annual budget will increase as illustrated in the table below. The
annual assessment rate may be subject to an increase each year starting in the third year, the amount
of which shall be determined by the VTV Board. The total assessment rate may not exceed four dollars
($4.00).
The assessment rate shall be three dollars and twenty-five cents ($3.25) in the first year of the renewal,
and increases may be implemented in later years at the discretion of the Owners’ Association . The
table below demonstrates the maximum with the assumption that the rates will be increased to the
maximum possible rate of four dollars ($4.00) in year three; as it is a required disclosure, it is not the
anticipated course of action. Alternate courses of action may be taken in regards to implementing the
assessment rate increase other than what is demonstrated in the chart below, within the parameters of
this Management District Plan. Additionally, a three percent (3%) annual increase in the total budget
is shown, to account for estimated increased room night sales as a result of TVTMD efforts. This
three percent (3%) annual increase is a conservative estimate based on the effects of similarly sized
TMD budgets.
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TVTMD Management District Plan 11
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Estimated Annual Budget If Maximum Assessment Rates
Are Adopted
Year
Sales &
Marketing
Destination
Development Administration Collection Fee Contingency/
Renewal Total
2022/23 $1,407,900 $216,600 $389,880 $43,320 $108,300 $2,166,000
2023/24 $1,450,137 $223,098 $401,576 $44,620 $111,549 $2,230,980
2024/25 $1,838,327 $282,820 $509,075 $56,564 $141,410 $2,828,196
2025/26 $1,893,477 $291,304 $524,347 $58,261 $145,652 $2,913,042
2026/27 $1,950,281 $300,043 $540,078 $60,009 $150,022 $3,000,433
2027/28 $2,008,790 $309,045 $556,280 $61,809 $154,522 $3,090,446
2028/29 $2,069,053 $318,316 $572,969 $63,663 $159,158 $3,183,159
2029/30 $2,131,125 $327,865 $590,158 $65,573 $163,933 $3,278,654
2030/31 $2,195,059 $337,701 $607,862 $67,540 $168,851 $3,377,014
2031/32 $2,260,911 $347,832 $626,098 $69,566 $173,916 $3,478,324
Total $19,205,060 $2,954,625 $5,318,324 $590,925 $1,477,312 $29,546,246
The table below demonstrates the annual improvement and service plan budget with the assumption
that the rates will not be increased during the TVTMD’s ten (10) year term. Additionally, a three
percent (3%) annual increase in the total budget is shown, to account for estimated increased room
night sales as a result of TVTMD efforts.
Estimated Annual Budget If Maximum Assessment Rates
Are Not Adopted
Year Sales &
Marketing
Destination
Development
Administration Collection Fee Contingency
/Renewal
Total
2022/23 $1,407,900 $216,600 $389,880 $43,320 $108,300 $2,166,000
2023/24 $1,450,137 $223,098 $401,576 $44,620 $111,549 $2,230,980
2024/25 $1,493,641 $229,791 $413,624 $45,958 $114,895 $2,297,909
2025/26 $1,538,450 $236,685 $426,032 $47,337 $118,342 $2,366,847
2026/27 $1,584,604 $243,785 $438,813 $48,757 $121,893 $2,437,852
2027/28 $1,632,142 $251,099 $451,978 $50,220 $125,549 $2,510,988
2028/29 $1,681,106 $258,632 $465,537 $51,726 $129,316 $2,586,317
2029/30 $1,731,539 $266,391 $479,503 $53,278 $133,195 $2,663,907
2030/31 $1,783,486 $274,382 $493,888 $54,876 $137,191 $2,743,824
2031/32 $1,836,990 $282,614 $508,705 $56,523 $141,307 $2,826,139
Total $16,139,996 $2,483,076 $4,469,537 $496,615 $1,241,538 $24,830,763
C. California Constitutional Compliance
The TVTMD 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 TVTMD 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.
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
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TVTMD Management District Plan 12
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Two of these exceptions apply to the TVTMD, 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
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 TVTMD. The activities described
in this Plan are specifically targeted to increase demand for room night sales for assessed lodging
businesses within the boundaries of the TVTMD, and are narrowly tailored. TVTMD funds will be
used exclusively to provide the specific benefit of increased demand for room night sales directly to
the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in
TVTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for
from assessment revenues are business services constituting and providing specific benefits to the
assessed businesses.
The assessment imposed by this TVTMD 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 demand for room night sales. The specific benefit of an increase in demand for room
night sales for assessed lodging businesses will be provided only to lodging businesses paying the
district assessment, with marketing & sales and destination development programs promoting lodging
businesses paying the TVTMD assessment. The marketing & sales and destination development
programs will be designed to increase room night sales at each assessed lodging businesses. Because
they are necessary to provide the marketing & sales and destination development programs that
specifically benefit the assessed lodging businesses, the administration and contingency services also
provide the specific benefit of increased demand for room night sales to the assessed lodging
businesses.
Although the TVTMD, 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 TVTMD 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
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)
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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
TVTMD 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
will be managed by the VTV, and reports submitted on an annual basis to the City. Only assessed
lodging businesses will be featured in marketing materials, receive sales leads generated from TVTMD-
funded activities, be featured in advertising campaigns, and benefit from other TVTMD-funded
services. Non-assessed lodging businesses will not receive these, nor any other, TVTMD-funded
services and benefits.
The TVTMD-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
lodging businesses receive incremental room nights, that portion of the promotion or program
generating those room nights shall be paid with non-TVTMD funds. TVTMD 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 room nights for non-assessed businesses.
D. Assessment
The annual assessment rate is three dollars and twenty-five cents ($3.25) of gross short-term room
rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than
thirty (30) consecutive days, nor on stays by any Federal or State of California officer or employee
when on official business who makes a claim that they are exempt, nor on stays by any officer or
employee of a foreign government who is exempt by reason of express provision of federal law or
international treaty. The annual assessment rate may be subject to an increase each year starting in
the third year, the amount of which shall be determined by the VTV Board, as described in Section
V. The total assessment rate may not exceed four dollars ($4.00).
The term “gross room rental revenue” as used herein means: the consideration charged, whether or
not received, for the occupancy of space in a lodging business valued in money, whether to be received
in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of
any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not
include any federal, state or local taxes collected, including but not limited to transient occupancy
taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the
assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of
assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the
amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for
payment from the business. If the TVTMD assessment is identified separately it shall be disclosed as
the “TVTMD Assessment.” As an alternative, the disclosure may include the amount of the TVTMD
assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing
Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The
assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if
it is passed on to transients. The assessment shall not be considered revenue for any purpose,
including calculation of transient occupancy taxes.
6 Government Code § 53758(b)
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Bonds may be issued.
E. Penalties and Interest
The TVTMD shall reimburse the Cities, Town and Counties for any costs associated with collecting
unpaid assessments. If sums in excess of the delinquent TVTMD assessment are sought to be
recovered in the same collection action by the City, the TVTMD 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. Any business which fails to pay any assessment within the time required shall pay a penalty
of ten percent (10%) of the amount of the assessment in addition to the amount of the
assessment.
2. Any business which fails to remit any delinquent assessment on or before a period of 30
days following the date on which the assessment first became delinquent shall pay a second
delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the
amount of the assessment and the ten percent (10%) penalty first imposed.
3. If it is determined that the nonpayment of any assessment 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 above.
4. In addition to the penalties imposed, any business which fails to remit any assessment 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 assessment
first became delinquent until paid.
5. Every penalty imposed and such interest as accrues shall become a part of the assessment
required to be paid.
F. Time and Manner for Collecting Assessments
The TVTMD assessment will be implemented beginning beginning July 1, 2022, or as soon as possible
thereafter, and end ten (10) years from its start date. Each City, Town and County will be responsible
for collecting the assessment on a quarterly basis (including any delinquencies, penalties and interest)
from each lodging business located in the boundaries of the TVTMD. Each City Town and County
shall take all reasonable efforts to collect the assessments from each lodging business. On a quarterly
basis, each City, Town and County shall forward the assessment collected to the City of Pleasanton.
The City of Pleasanton shall forward the assessments collected to the Owners’ Association.
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VI. GOVERNANCE
A. Owners’ Association
The Pleasanton City Council, 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 TVTMD as defined in Streets and
Highways Code §36612. The Pleasanton City Council has determined that Visit Tri-Valley will
continue to serve as the Owners’ Association for the TVTMD.
More than one-half of the members of the Visit Tri-Valley Board of Directors shall be representatives
of assessed lodging businesses.
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 VTV board and certain committees
must be held in compliance with the public notice and other requireme nts 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 VTV 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 2021 SUPPLEMENT ***
(ALL 2020 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 i n 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 owner s’ 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 deli berated, 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 par t 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 benef it 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 in clude 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 activ ities, 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 impr ovements,
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 consis tent 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 t he 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 propos ed 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. Notwi thstanding
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 Gover nment 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 b e 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 protest s
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 percen t, 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 rema ining
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 ado pt, 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 forma tion 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 prope rty,
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, maintena nce, 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 b usiness 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 a nd
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 th e 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
36625. 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 consis tent 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). E ither 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 dist rict.
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 h earing
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
HOTEL/MOTEL NAME Address City Zip
Best Western Sycamore Inn 803 Camino Ramon Danville 94526
Aloft 4075 Grafton St. Dublin 94568
Extended Stay America 4500 Dublin Blvd Dublin 94568
Holiday Inn 6680 Regional St Dublin 94568
Hyatt Place 4950 Hacienda Dr Dublin 94568
La Quinta Inn & Suites 6275 Dublin Blvd Dublin 94568
America's Best Value Inn 1421 First St Livermore 94550
Del Valle Lodge 3979 First St Livermore 94551
Extended Stay America 2380 Nissen Dr Livermore 94550
Motel 6 4673 Lassen Rd Livermore 94550
Sands Motel 3787 First St Livermore 94551
Springtown Inn 933 Bluebell Dr Livermore 94550
Studio Inn 1321 Portola Ave Livermore 94551
Home2 Suites 2625 Constitution Dr. Livermore 94551
Residence Inn 5200 Wolf House Drive Livermore 94588
Best Western Plus Vineyard Inn 7600 Southfront Rd Livermore 94551
Courtyard by Marriott 2929 Constitution Dr Livermore 94551
The Good Hotel 720 Las Flores Rd Livermore 94551
Hampton Inn 2850 Constitution Dr Livermore 94551
Hawthorn Suites by Wyndham 1700 N. Livermore Ave Livermore 94551
Hilton Garden Inn 2801 Constitution Dr Livermore 94551
Holiday Inn Express Hotel & Suites 3000 Constitution Dr Livermore 94551
Homewood Suites by Hilton 5400 Wolf House Dr. Livermore 94551
La Quinta Inn 7700 Southfront Rd Livermore 94551
Purple Orchid Wine Country Resort & Spa 4549 Cross Rd Livermore 94550
Quality Inn & Suites 5959 Preston Ave Livermore 94551
SenS Extended-Stay Residence Inn 1000 Airway Blvd Livermore 94551
Best Western Pleasanton Inn 5375 Owens Ct Pleasanton 94588
Extended Stay America Deluxe 4555 Chabot Dr Pleasanton 94588
Motel 6 5102 Hopyard Road Pleasanton 94588
The Rose Hotel 807 Main St Pleasanton 94566
Tri-Valley Inn & Suites 2025 Santa Rita Rd Pleasanton 94566
Courtyard by Marriott 5059 Hopyard Rd Pleasanton 94588
Doubletree by Hilton Pleasanton at the Club 7050 Johnson Dr Pleasanton 94588
Four Points by Sheraton 5115 Hopyard Rd Pleasanton 94588
Hyatt House 4545 Chabot Dr Pleasanton 94588
Larkspur Landing Hotel 5535 Johnson Dr Pleasanton 94588
Marriott Pleasanton 11950 Dublin Canyon Rd Pleasanton 94588
Residence Inn by Marriott 11920 Dublin Canyon Rd Pleasanton 94588
AC Marriott 5990 Stoneridge Mall Rd Pleasanton 94588
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