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HomeMy WebLinkAbout06/17/2008, C2 - FINAL ADOPTION OF ORDINANCE NO. 1517 (2008 SERIES) ADDING CHAPTER 12.42 TO THE MUNICIPAL CODE TO ES L. J council Mefi,Dw j ac,Enaa REpoRt N. CITY OF SAN LUIS OBISPO FROM: Shelly Stanwyck, Assistant City Administrative Officer Prepared By: Brigitte Elke, Principal Administrative Analyst SUBJECT: FINAL ADOPTION OF ORDINANCE NO. 1517 (2008 SERIES) ADDING CHAPTER 12.42 TO THE MUNICIPAL CODE TO ESTABLISH . A CITYWIDE TOURISM BUSINESS IMPROVEMENT DISTRICT CAO RECOMMENDATION Adopt Ordinance No. 1517 (2008 Series). DISCUSSION Based on petitions from and subsequent mediation of the City's hoteliers, City Council considered the establishment of a Tourism Business Improvement District in the City of San Luis Obispo on June 3, 2008. Since no sufficient protest was received at or before the public hearing, the Council voted five to zero to introduce an ordinance adding Chapter 12.42 to the Municipal Code. The purpose of this chapter is to establish and govern a citywide Tourism Business Improvement District (TBID) and it defines the geographical boundary, the assessment, its authorized use, and the establishment of an advisory body. Ordinance No. 1517 (2008 Series) is now ready for adoption and will become effective 30 days thereafter. As provided in §12.42.070, the levy of assessment shall commence on August 1, 2008. ATTACHMENT Ordinance No. 1517 (2008 Series) READING FILE June 3, 2008 Council Agenda Report Regarding Establishment of a TBID G:\Staft\Elke\Council Agenda Reports\TBID-Adoption of Ordinance 6-17-2008.DOC C ORDINANCE NO. 1517 (2008 Series) ATTACHMENT 1 AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO ESTABLISHING THE SAN LUIS OBISPO CITY TOURISM BUSINESS IMPROVEMENT DISTRICT (TBID), FIXING THE BOUNDARIES THEREOF, PROVIDING FOR THE LEVY OF A BUSINESS ASSESSMENT TO BE PAID BY HOTELS IN SUCH DISTRICT WHEREAS, on April 15, 2008,'the City of San Luis Obispo Council adopted Resolution No. 9972 (2008 Series) entitled, "Resolution of.the City of San Luis Obispo Declaring its Intention to Establish the San Luis Obispo Tourism Business Improvement District, to Establish the Basis for and to Levy the Assessment for the District and to Set Dates for the Public Hearing on the District and the Proposed Assessment"; and WHEREAS, as specified in such Resolution, the boundaries of the district encompass the City of San Luis Obispo, and there are no separate benefit zones within the district; and WHEREAS, said Resolution was published and copies thereof were duly mailed and posted, all as provided by state law and specified in the Resolution; and WHEREAS,pursuant to that Resolution a public meeting concerning the formation of said district was held before the City Council on May 20, 2008 at 7:00 p.m. in the City Council Chambers at City hall; and WHEREAS, also pursuant to Resolution a public hearing concerning the formation of said district was held before the City Council on June 3, 2008 at 7 p.m. in the City Council Chambers at City Hall; and WHEREAS, all written and oral protests made or filed were duly heard, and testimony for and against the proposed action was received and considered and ATTACHMENT 1 WHEREAS, the City Council determined that there was no majority protest within the meaning of Streets and Highways Code Section 36525., as written protests were not received from owners of businesses in the proposed district which would pay fifty percent(50%) or more of the assessments proposed to be levied; and WHEREAS, Protests are weighted based on the assessment proposed to be levied on each hotel. For purposes of the initial formation of the district, the proposed assessment to be levied was calculated based on the assessment rate multiplied by the most recent available data for the hotels' rental revenues; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1. Pursuant to authority granted under the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq.,the City of San Luis Obispo Tourism Business Improvement District(TBID) is hereby established in the City of San Luis Obispo as herein set forth and all hotels in the district established by this ordinance shall be subject to any amendments made hereafter to said law or to other applicable laws. SECTION 2: The City Council of the City of San Luis Obispo finds that hotels within the San Luis Obispo Tourism Business Improvement District will be benefited by the improvements and activities funded by assessments to be levied. SECTION 3. Chapter 12.42 (Tourism Business Improvement District) is hereby added to Title 12 (Streets, Sidewalks, and Public Places) of the San Luis Obispo Municipal Code to read as follows: 12.42.010. TITLE. This chapter shall be known as the"City of San Luis Obispo Tourism Business Improvement District Law." 2 ATTACHMENT 9 12.42.020. DEFINITIONS. (1) "City Council" shall mean the City of San Luis Obispo City Council. (2) "City Advisory Body"shall mean the Advisory Body appointed by the City Council, pursuant to this chapter. (3) "District' shall mean the City of San Luis Obispo Tourism Business Improvement District (or"TBID") created by this chapter and as delineated in Section 12.42.040. (4) "Hotel' shall mean any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, motel,bed and breakfast, or vacation home and pays Transient Occupancy Tax. For purposes of this chapter the definition of"hotel' shall not include RV Parks. (5) "Law" shall mean the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq., as amended. (6)"Operator"shall mean the person who is the proprietor of the hotel, whether in the capacity of owner, lessee, sublessee,mortgagee in possession, licensee or any other capacity. Where the operator performs its functions through a managing agent of any type or character other than an employee,the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his principal. Compliance with the provisions of this chapter by either the principal of the managing agent shall, however, be considered to be compliance by both. (7)"Transient'means any person who exercises occupancy or who is entitled to occupancy,by reason of concession, permit, right of access, license, or other agreement for a period of thirty(30) consecutive calendar days or less, counting portions of calendar days as full days. 12.42.030. AUTHORIZED USES. This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business 3 C2 - �/ ATTACHMENT 9 Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination. It is the intent of this chapter to provide a supplemental source of funding for the promotion of tourism in the district and it is not intended to supplant any other existing sources of revenues which may be used by the City of San Luis Obispo for the promotion of tourism. The specific services, activities and programs to be provided by the district are as follows: A. The general promotion of tourism within the district is to include costs as specified in the business plan to be adopted annually by the City Council; B. The marketing of the district to the travel industry in order to benefit local tourism and the local hotel industry in the district. 12.42.040. BOUNDARIES. The boundaries of the TBID shall be the boundaries of the City of San Luis Obispo. 12.42.050. LEVY OF ASSESSMENT AND EXEMPTIONS. The TBID shall include all hotels located within the TBID boundaries. The assessment shall be levied on all hotels , existing and future,within the City of San Luis Obispo based upon two percent (2%) of the paid gross rent charged by the operator per night for all transient occupancies. The assessment shall be collected monthly,based on two percent(2%) of the gross rent charged by the operator per night in revenues for the previous month. New hotels within the boundaries shall not be exempt from the levy of assessment authorized by Section 36531 of the law. Assessments pursuant to the TBID shall not be included in gross room rental revenue for purpose of determining the amount of the transient occupancy tax. The value of rooms for extended stays of more than thirty(30) consecutive calendar days shall be exempt from the levy of assessment. 4 1 _- MACHMENT 1 12.42.060. ANNUAL REVIEW OF ASSESSMENT. All of the assessments imposed pursuant to this chapter shall be reviewed by the City Council annually, based upon the annual report prepared by the Advisory Body appointed pursuant to this chapter and Sections 36530 and 36533 of the law. After approval of the annual report the City Council shall follow the hearing process as outlined in Section 36534 of the law. At the public hearing the City Council shall hear and consider all protests. If written protests are received from hotel businesses in the district paying fifty percent (50%)percent or more of the annual assessment, no further proceedings to continue the levy of assessments shall take place. The protests shall be weighted based upon the annual assessment for the prior year by each hotel business. 12.42.070. IMPOSITION OF ASSESSMENT. The City Council hereby levies and imposes and orders the collection of an additional assessment to be imposed upon hotels in the district described above, which shall be calculated pursuant to Section 12.42.050 above. Such levy shall begin on August 1, 2008. 12.42.080. USE OF REVENUE. The improvements and activities to be provided by the TBID will be funded by the levy of the assessments. The revenue from the levy of assessments within the TBID shall not be used to provide improvements or activities outside the TBID or for any purpose other than the purposes specified in the resolution of intention. All funds shall be expended consistent with the purposes of this act. Funds remaining at the end of any TBID term may be used in subsequent year in which TBID assessments are levied as long as they are used consistent with the requirements of this Section. The City Council shall consider recommendations made by the City Advisory Body created by Section 12.42.100 of this chapter as to the use of assessment revenue. 12.42.090. DELINQUENCY.PENALTY, AND INTEREST. Any hotel that fails to remit any assessment imposed by this ordinance within the time required shall 5 ATTACHMENT 9 pay a penalty in accordance with the policies,regulations, and ordinances of the City of San Luis Obispo. Any and all remedies available to the City of San Luis Obispo for non payment of assessments or taxes shall be applicable in the event of non payment of an assessment under this chapter. 12.42.100 ADVISORY BODY. An advisory body comprised of five (5) members is hereby created to carry out the functions of an advisory board under Section 36530 of the law. Said advisory body shall be referred to as the Tourism Business Improvement District Board or TBID Board. The members of the TBID Board shall be appointed following the City's recruitment guidelines for Advisory Bodies. All applicants and members must be operators of hotels within the district, or employed by the operator of such a hotel. The length of the tern for each individual member of the TBID Board shall follow the guidelines of all City Advisory Bodies and is limited to eight (8) subsequent years. Members of the TBID Board shall serve at the pleasure of the City Council and may be removed by the City Council at any time. If a member no longer represent the lodging establishment for which he or she was selected to the TBID Board, his or her seat will be vacated and a new member will be appointed. The TBID Board shall review the implementation of this chapter, the implementation of programs and activities funded through this chapter, and advise the City Council on the amount of the district's assessments and on the services,programs, and activities to be funded by the Assessments, and shall perform such other duties as required by the law, including preparing the Annual Report required by Section.36533 of the law. The Annual Report shall be submitted to the City Council no later than 90 days before the new budget year. The City Council shall ensure that the TBID Board has timely access to all public information regarding collection, disbursement, and uses of the funds collected under the terms of this ordinance 12.42.110 MODIFICATION OR DISESTABLISHMENT. The City Council,by ordinance, may modify the provisions of this chapter and may disestablish the - ATTACHMENT I district or parts of the district, after adopting a resolution of intention to such effect. Such resolution shall describe the proposed change or changes, or indicate that it is proposed to disestablish the area, and shall state the time and place of a hearing to be held by the City Council to consider the proposed action. If the operators of hotels which pay fifty percent (50%) or more of the assessments in the district file a petition with the Clerk of the City of San Luis Obispo to adopt a resolution of intention to modify or disestablish the district, the City Council shall adopt such resolution and act upon it as required by law. Signatures on such petition shall be those of a duly authorized representative of the operators of hotels in the district. In the event the resolution proposes to modify any of the provisions of this chapter, including changes in the existing assessments or in the existing boundaries of the district, such proceedings shall terminate if protest is made by the operators of hotels which pay fifty percent (50%) or more of the assessments in the district, or in the district as it is proposed to be enlarged. In the event the resolution proposes disestablishment of the district, the City Council shall disestablish the district; unless at such hearing,protest against disestablishment is made by the operators of hotels paying fifty percent (50%) or more of the assessments in the district. SECTION 4. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause and phrase hereof, irrespective of the fact that anyone or more of the sections, subsections, sentences, clauses or phrases hereof be declared invalid or unconstitutional. SECTION 5. A summary of this ordinance,together with the names of Council members voting for and against it, shall be published at least five(5) days prior to its final adoption, in The Tribune, a newspaper published and circulated in the City of San Luis 7 C�—d ATTACHMENT I Obispo. This ordinance shall go into effect at the expiration of thirty(30) days after its final adoption. INTRODUCED on the day of 2008, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the day of 2008, on the following roll call vote: AYES: NOES: ABSENT: Mayor David F. Romero ATTEST: Audrey Hooper, City Clerk APPROVED AS TO FORM: nath . Lowell, City Attorney 8 �z- �