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HomeMy WebLinkAbout1988-03-01; City Council; 9313; Special Municipal Election Transient Occupancy Tax4B# 931 3 MTG. 3-1-fM IEPT. REc~~~~e~~u~~~l~~~~~-~~ calling the special election on June 7, 1988. SPECIAL MUNICIPAL ELECTION SETTING TEE TRANSIENT TITLE: OCCUPANCY TAX CITY MGSL Adopt Resolution No.8r-59 requesting the Board of Supervisors to consolidate the special election with the countywide election on June 7, 1988. Adopt Resolution No.,$if-(,o directing the City Attorney to prepare an impartial analysis of the proposed ordinance pertaining to the Transient Occupancy Tax. Adopt Resolution No.fr-4 / authorizing certain Council members to file a written argument regarding a City measure. Introduce Ordinance No. Ns-8 amending Chapter 3.12.030 of the Municipal Code increasing the City's Transient Occupancy Tax rate to 8%. ITEM EXPLANATION: Chapter 3.12 of the Municipal Code establishes the City's right to collect a tax on the rent paid on hotel rooms within the City. This section became effective on July 21, 1964, and has continued unchanged since that date. The present tax rate of 6% generated $1.7 million in revenue during fiscal year 1986-87 from the City's 1,656 hotel rooms. There are currently 21 hotels in Carlsbad. Transient tax revenues grew by almost 50% in 1986-87 primarily due to the renovation of the La Costa Hotel and Spa which added 160 rooms to their inventory and returned to full operations early in the year. The City Council has proposed that the existing Transient Occupancy Tax (TOT) rate of 6% be increased to 8% or 9% to help finance the demand for City services. Based on 1986-87 figures, a 2% increase in TOT rates would generate about $570,000 in additional revenue. $850,000 in revenue. Council should direct staff to pursue an 8% or 9% tax rate at the time the attached resolutions are adopted. A 3% increase would generate about The TOT is a "general tax" as defined by the state Constitution, since all revenues received from this source are used for general City purposes. An increase in a general tax requires the approval of a majority of voters casting ballots on the question in a municipal election. voter approval of such tax increases was imposed by Proposition 62, approved in June 1987.) (The requirement for The next election date available to the City Council is June 7, 1988. Documents calling the election and establishing the ballot arguments must be submitted to the county by March 11, 1988 (88 days before the election date). Documents have been prepared and may be adopted at any time before that date should Council wish to proceed. A separate report on TOT rates around San Diego County and the state is attached. In summary, the report shows that TOT rates in the county range from 6% to 8% (7 cities @ 6%, 2 cities @ 7%, 10 cities and county @ 8%), while TOT rates around the state range from 6% to 11%. A listing of representative cities is included in the report. The documents attached to this agenda bill have been drafted using the 8% transient occupancy tax as the recommended rate. 9% TOT rate before the voters, Council should adopt all resolutions and the proposed ordinance stating that the recommended rate is 9%. If Council wishes to place a A meeting was held on February 1, 1988, with representatives of the hotellmotel and tourist industry. attached report (Exhibit C2). increase because, in their opinion, it reduces their ability to compete for the tourist trade. Their comments are summarized in the Generally, this group opposed the concept of an FISCAL IMPACT: The City received $1.7 million from Transient Occupancy Taxes during fiscal year 1986-87 with a TOT rate of 6%. An increase of 2% to 3% in the TOT would bring the rate up to 8% to 9% respectively. Assuming no major down-turn in the tourist trade during future years, an increase of 2% in the TOT rate should provide an additional $570,000 or more to the City’s General Fund budget, while a 3% increase would generate about $850,000. At least one hotel operator has suggested that a TOT increase will reduce the ability of the resort hotels to compete for business with other more desirable locations. Further, this reduced ability to compete will translate to reduced occupancy at resort hotels thereby offsetting some of the effect of the rate increase. A survey of cities indicates that increased tax rates have generally not resulted in reduced occupancy or in reduced revenues for the hotel industry. EXBIBITS : 1. 2. 3. 4. 5. 6. 7. Report on Transient Occupancy Tax Rates. Report on February 1, 1988 Meeting with hotellmotel and tourist representatives. Resolution No.R-J8( calling the special election on June 7, 1988. Resolution No.88-59 requesting the Board of Supervisors to consolidate the special election with the countywide election of June 7, 1988. Resolution No. #‘r-bo directing the City Attorney to prepare an impartial analysis of the proposed ordinance pertaining to the Transient Occupancy Tax. Resolution No.rr-b/ authorizing certain Council members to file written argument regarding a City measure. Ordinance No.flS- amending Chapter 3.12.030 of the Municipal Code increasing the City’s Transient Occupancy Tax rate to 8%. '. December 15, 1987 - TO : CITY MANAGER FROM : Finance Director TRANSIENT OCCUPANCY TAX I have prepared an agenda bill for Council consideration recommending the increase of the Transient Occupancy Tax (TOT) from 6% to 8%. The agenda bill explanation describes the transient tax and the process for placing the issue before the voters. Only summary information has been included in the agenda bill, although more detailed information may be called for during the process of Council review. The following sections detail some of the specific TOT data which may be useful as the Council discusses TOT issues. 1. Transient Occupancy Tax Collections During the past ten years, TOT collections have grown from $40,000 in 1977- 78 to more than $1.7 million in 1986-87, an average increase of 17% per year. Much of this growth has been created by the construction of new hotel rooms. Exact data hotel room growth is being compiled by my staff at this time . This year TOT revenue represents about 6% of the General Fund budget, whereas in 1977-78 the TOT provided 4.5% of the General Fund budget support. The City implemented the TOT ordinance in 1964 and has operated under the same rules, with only minor changes, for more than 23 years. CITY OF CARLSBAD TRANSIENT TAX COLLECTIONS - LAST TEN YEARS - VAm THOUSAND DOLLARS FISCAL YEAR -2- TRANSIENT OCCmANCY TAX 2. Transient Occupancy Tax Rate - San Diego County There are currently 19 taxing entities in San Diego County collecting Transient Occupancy Taxes. As the chart below shows, transient tax shows transient tax rates vary from 6% to 8% as follows: Tax Rates 6% 7% 8% II. of Entities 7 2 10 The trend in the county is toward setting TOT rates at the 8% level. The average tax rate in San Diego is 7.2%. County TOT Rates 6% 7% 8% Carlsbad El Cajon Lemon Grove Oceans ide Poway San Marcos Santee Coronado Chula Vista San Diego (City) Del Mar Enc ini tas Escondido Imperial Beach La Mesa National City San Diego County Solana Beach Vista 3. Transient Occupancy Tax Rates - Statewide The following data was pulled from a report compiled in early 1987 by the State of California. Of 242 cities reporting, the average TOT rate was 7.2%. When only "Resort" cities are considered, the averrage TOT rate increases to 8.6%. (The term "Resort" is admittedly not well defined. In determining which cities to include we considered the usual image such cities try to project to the tourist.) Below is a list of TOT rates. This list provided only to indicate TOT rate charged by selected cities, not to indicate average TOT rates. 4% S% 6% 7% Clovis Camarillo Barstow Beverly Hills Ripon Ski Valley Bishop Fremont Turlock chic0 Gardenia California City Manhattan Beach Carlsbad Huntington Beach Lake Elsinore Palm Desert -3- - TRANSIENT OCCUPAWCY TAX 8% ~ ~ Anaheim Crescent City Daly City Desert Hot Springs El Centro Fort Bragg I rv ine Laguna Beach Menlo Park Montebello Mountain View Newport Beach Redwood City San Clemente San Juan Capistrano San Jose South Lake Tahoe 9% 1OX 11% Palm Springs Baldwin Park Los Angeles Pasadena (9.82%) Berkley San Francisco (9.75%) Burbank Camel Fairf ield Long Beach Rancho Cucamonga Sacramento Santa Barbara 4. Impact of Tax Rate Increases A survey of cities and counties &ne by the Finance Department shows that in almost all cases where a transient tax increase has been proposed, the local hotel industry opposed the increase on the grounds that occupancy would be reduced as business seeks accommodations at a lower cost. None of the entities contacted reported such a decline in business. In fact, all surveyed governments reported continued growth in the hotel industry following the tax increase. recently supported a 1% increase in TOT rates with the condition that revenue generated be earmarked for use by the local Convention and Visitors Bureau. In the case of Palm Springs, the hotel industry February 2, 1988 TO : CITY MANAGER FROM: Finance Director TRANSIENT OCCUPANCY TAX INCREASE--MEETING WITH HOTEL OWNERS On February 1, 1988, I held a meeting with the owners of several hotels operating within Carlsbad. The purpose of the meeting was to hear the concerns of the owners relating to the proposed transient tax increase. The following people attended this meeting: Bob Hale - Pelican Cove Arnie Dumbrow - Ocean Manor Paul Graham - LaCosta Hotel & Spa Tony Howard-Jones - Beachview Terrace & Beachview Lodge Craig Sieverson - Convention & Visitors Bureau Representatives of the press (Written comments were received from Pea Soup Andersen's) The comments received at this meeting are summarized below. These comments are expressed, as much as possible, in the same manner as they were at the meeting. No conscious effort has been made to edit or modify any comment. 1. Carlsbad is not considered a destination resort. That is, people do not generally come to Carlsbad in large numbers to take advantage of the activities we have to offer. Therefore, the hotel industry must compete with other locations by being more competitive in other areas, such as price. An increase in the TOT decreases the hotel owners' ability to be competitive in price, thereby decreasing the attractiveness of Carlsbad lodging. 2. On a large scale, the resort customers consider bottom line when selecting a location for a conference or business meeting. Factors such as airfare, meals, travel time, room rates and transient taxes are summed up to determine the total cost for any major conference. An increase of 2% in cost will directly affect this total cost and will reduce the local resorts' ability to compete on a national basis. occupancy are not available. Estimates of the possible negative affect on 3. Since Carlsbad is not a destination resort, some of the business we receive is seen as spill over from San Diego. If Carlsbad's hotel tax rate is out of line with other communities in the area, a portion of tourist trade will be lost to less expensive areas. 4. A 2% increase in the TOT will not seriously affect the freeway trade. Individuals who are traveling through Carlsbad who elect to stay overnight at one of the freeway hotels should not be seriously affected by this tax increase. -2- 5. 6. 7. 8. 9. The number of hotel rooms in San Diego County will double in the next 10 years (14,000 more rooms). This will intensify the competition for the tourist dollar. A higher TOT rate in Carlsbad will decrease the ability of the Carlsbad based tourist industry to compete. The Tourist industry of Carlsbad contributes to the overall health of the Carlsbad economy. Local hotels and motels provide housing for the tourist who eats at local restaurants and shop at the mall and local shops. themselves employ thousands of people and use the services of many local businesses to support their operations. Damage to the tourist industry will be seen in other support industries as reduced business. The hotels The City Council should consider deferring a TOT increase until the future of the Carlsbad hotel industry can be properly assessed. Many of the hotel operators report flat or decreasing occupancy. An increase in taxes at this time would only serve to aggravate this situation. The Council should not consider increasing taxes when business is down. If the City needs tax revenue to operate, other alternatives should be considered. It is not fair to single out the hotel industry for a tax increase. If the City must raise taxes, a 1% increase in the TOT rate should be the maximum considered. 10. Any tax increase could be structured to be implemented over a staggered time period, i.e., 112% per year. 11. Any tax increase should take effect all at once. Staggering the increase over time is more difficult for the hotel owner to deal with in planning. 12. The Convention & Visitors Bureau is taking a neutral position on the tax increase. There was not total agreement on all points, however, the group was fairly well united on the issues related to reduced ability to compete for and attract business and the possible negative effects of such an increase on the tourist trade in Carlsbad. Written comments were received from Mr. Chuck White of Pea Soup Andersen's prior to the meeting. In his letter, Mr. White expressed support of a TOT increase if the proceeds were used to support tourism in the City. If, however, the City plans to put all proceeds into the general fund he feels that the tax may be sufficient to cause tourists to seek lodging elsewhere. A copy of this letter is attached. -3- A conversation with a representative of the California Hotel and Motel Association provided the following comments: 1. The Association opposes any tax increase that goes into the general fund. Tax increases that provide funding for a Convention & Visitors Bureau have been supported. 2. The Association feels that California is generally being priced out of the tourist market by the transient tax hikes. Tax rates will soon be so high that the tourist will go elsewhere rather than pay our tax rates. 3. Carlsbad's 6% tax rate is so low that an increase to 8% could hardly be considered unreasonable. The major concern is that once a tax is increased the local government will continue increasing rates up to 10% and 12%. These comments have been provided in the spirit that the City Council should hear both sides of the argument. The prior staff report provides the City's position on mmt attachment - __ . . . . . .. . ... .>__ _. . - . . ... -"I.- --- . .. . - .. HAP-PEA PEA-WE C RESTAURANTS. Corporate Headquarters: 850 PALOMAR AIRPORT RD CARLSBAD CALIFORNIA 92008 Telephone (6 1 9) 93 1 -0966 "Splitting Peas for Split Pea Soup" Jan- 27, 1988 James F. Elliott Finance Director City of Carlsbad 1200 Elm Avenue Carlsbad, CA 92008-1989 RE: Transient Occupancy Tax Increase Dear Mr. Elliott: I am writing in response to your letter dated January 22, 1988 to Peter Barrett of the Pea Soup Andersen organization. longer with Pea Soup Andersen's and I have assumed all of his former responsibilities. Peter Barrett is no We at Pea Soup Andersen's are very interested in assisting the City of Carlsbad in any way possible. Regarding the Transient Occupancy Tax, if the city's plans were to use the additional tax to encourage tourism into the Carlsbad arear I would be highly in favor of it. the revenue is going into the general funds and will not in any way contribute to the promotion of the Carlsbad area then I think that it is a tax that could very well cause travelers to go on to San Diego or other comnunities where the occupancy tax is not as high. Since An 8% to 9% occupancy tax is very high for an area such as Carlsbad that is not yet a natural designation resort area. If the city and various service industries work together in the next few years, it is conceivable that Car.lsbad could be enhanced as a destination for travelers and therefore additional taxes could reasonably be collected. I do feel, however, once again, that to institute a much higher tax at this time would not be in the best interests of the entire Carlsbad area and the amount of revenue generated would not offset the additional problems that would be caused to both the city and the hotel and restaurant operators. If you have any questions regarding this matter or if I can be of any service in the future, please contact me. Yours truly, Chuck White President and Chief Executive Officer ! SHALL ORDINANCE NO. NS-8 BE ADOPTED AMENDING CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY .. i YES ----- 2 3 4 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 88-58 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, CALLING, ORDERING, PROVIDING FOR AND GIVING NOTICE OF THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY, THE 7TH DAY OF JUNE, 1988, FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED VOTERS OF SAID CITY AN ORDINANCE RELATING TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE FROM 6% TO 8%. WHEREAS, the City Council of the City of Carlsbad desires to submit to the qualified voters of said City a proposed Ordinance to increase the transient occupancy tax rate from 6% to m; and WHEREAS, City Council of the City of Carlsbad is authorized to submit such Ordinance to the qualified voters; NOW, THEREFORE, be it resolved that the City Council of the City of Carl sbad, Cal i fornia, does hereby declare and determine and order as follows: SECTION 1. That the above recitations are true and correct. SECTION 2. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Carlsbad, California, on Tuesday, June 7, 1988, a Special Municipal Election for the purpose of presenting an Ordinance as hereinafter set forth relating to the transient occupancy tax. SECTION 3. That the Ordinance to be submitted to the qualified voters shall be as set forth in Exhibit A attached hereto and made a part hereof. SECTION 4. That said City Council, pursuant to its right and authority to I 1 .2 3 4 5 6 7 I a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2: 2E 27 2€ SECTIQN 4. That the ballots to be used at the election shall be in form and content as required by law. SECTION 5. That the City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter, supplies and equipment that may be necessary in order to properly and lawfully conduct the el ect i on. SECTION 6. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continually from that time until eight o’clock p.m. of the same day when the polls shall be closed, except as provided in Section 14301 of the Elections Code of the State of California. SECTION 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law. SECTION 8. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of said election, in time, form and manner as required by law. SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. 1 2 3 4 5 6 7 8 9 10 If 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ad j ourned PASSER, APPROVED AND ADOPTED at a/ Regular Meeting of the City Council of the City of Carlsbad on the lothday of March , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ATTEST : &*) ah%- (SEAL) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 25 24 25 26 27 28 AN OR0 NA ORDINANCE NO. NS-8 ICE OF THE CITY OF CARLSBAD, EXHIBIT "A" TO RESOLUTION NO. 88-58 L I FORNIA, AMENDING TITLE 3, CHAPTER 3.12 OF .THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT OF SECTIONS 3.12.030 TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE TO 8%. The People of the City of Carlsbad do ordain as follows: SECTION 1: That Title 3, Chapter 3.12 of the Carlsbad Municipal Code is amended by the amendment of Section 3.12.030 to read as follows: "3.12.030 ImDosition--Amount--Where Dayable. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eight percent of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of - the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax administrator may require that such tax shall be paid directly to the tax administrator." SECTION 2: The City Council may amend this ordinance from time to time to add exceptions, or adjust the rate, or application of tax, or make such other changes as they determine to be necessary provided the rate of tax to be imposed by this ordinance shall not be increased. SECTION 3: In accordance with Section 4013 of the Elections Code of the State of California, this Ordinance shall be considered as adopted upon the date that the vote is declared by the City Council and shall go into effect ten (IO) days after that date. I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED by the People of the City of Carlsbad at an election held on the 7th day of June, 1988. CLAUDE A. LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) APPROVED AS TO FORM: VINCENT F. BIONDO, JR., City Attorney ' '. 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 88-59 A RESOLUTION REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO TO CONSOLIDATE A SPECIAL MUNICIPAL ELECTION TO BE HELD IN THE CITY OF CARLSBAD ON TUESDAY, JUNE 7, 1988, WITH THE STATEWIDE PRIMARY ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 23302 OF THE ELECTIONS CODE. WHEREAS, the City Council of the City of Carlsbad called a Special Municipal Election to be held on June 7, 1988; WHEREAS, the City Council is submitting to the voters the question relating to increasing the transient occupancy tax rate from 6% to 8%; and WHEREAS, Section 439.1 of the Administrative Code of the County of San Diego authorizes the Registrar of Voters of the County of San Diego to render specified services relating to the conduct of an election to any City which has by resolution requested the Board of Supervisors to permit the Registrar to render the services, subject to requirements set forth in that section; and WHEREAS, the City of Carlsbad called an election to be held on the same day in the same territory or in territory that is in part the same; WHEREAS, pursuant to Part 2.5 (commencing with 23300), Division 14 of the Elections Code, the Board of Supervisors has authority to consol idate pub1 ic district, city, county or other political subdivision elections with each other and with a statewide election to be held on the same day; NOW, THEREFORE, BE IT RESOLVED, that pursuant to the above-cited provisions, the Board of Supervisors of the County of San Diego is hereby requested to permit the Registrar of Voters to perform and render all services and proceedings incidental to, and connected with, the conduct of the subject election of the City of Carlsbad, with cooperation and assistance of the City Clerk of the City of Carlsbad, such services to include, but not to be limited to the following activities as are appropriate to the subject election: 1 .2 3 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1. furnish a tabulation of the number of registered voters in each precinct. 2. Establish voting precincts, secure locations for polling places, secure the services of election officers for each precinct as required by law, and furnish a list of precincts, polling places and election officers for filling in the office of the City Clerk of the City of Carlsbad. 3. Prepare and furnish to the election officers necessary elect supplies for the conduct of the election. 4. Cause to be printed the requisite number of sample ballots, offic ballots, polling place slips, rosters, tally sheets and other necessary forms 5. Furnish and address the envelopes necessary to mail sample ballots the registered.voters of the City of Carlsbad. on a1 to 6. mailing, and cause the same to be mailed, as required by law. Insert the sample ballots and other printed matter into envelopes for 7. Assemble the election material and supplies into ballot bags and make necessary arrangements for their delivery to the various precincts. 8. 9, Distribute absent voter ballots as required by law. Receive the returns of the elections and supplies. 10. Sort and assemble the election material and supplies in preparation for the canvassing of the returns of the election. 11. Canvass the returns of the elections, including the absent voters ballots. 12. Furnish a tabulation of the number of votes given in each precinct. 13. Make all arrangements and take the necessary steps to pay the members of the precinct boards, the polling place rentals, the persons returning the ballot bags, and to pay all other costs of the election incurred as the result of services performed for the City of Carlsbad and pay for the election 1 2 3 4 5 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 I 26 officials the amounts prescribed by the Board of Supervisors of the County of San Diego. BE IT FURTHER RESOLVED that pursuant to the requirements of the laws of the State of California relating to General Law Cities within said State, the election of the qualified electors of the City of Carlsbad was called for the purpose of submitting to the voters an ordinance relating to the Transient Occupancy Tax. BE IT FURTHER RESOLVED that the Board of Supervisors of the County of San Diego is hereby requested to consolidate this election with the other elections to be held on the same day, in the same territory, or in territory that is in part the same. BE IT FURTHER RESOLVED that if this consolidation is ordered, then pursuant to Section 23306 of the Elections Code (a) the election shall be held in all respects as if there were only one election; (b) only one form of ballot shall be used; and (c) the Registrar of Voters of the County of San Diego shall canvass the returns of the subject election as part of the canvass of the returns of the election or elections consolidated hereby. BE IT FURTHER RESOLVED that if this consolidation is ordered, then pursuant to Section 23305 of the Elections Code, within the territories affected by this order of consolidation, the election precincts, polling places, voting booths and polling hours shall, in every case be the same, and there shall be only one set of election officers in each of the precincts. BE IT FURTHER RESOLVED that the County of San Diego shall be reimbursed in full for the services performed by the Registrar of Voters for the City of Carl sbad upon presentation of bill therefor. BE IT FURTHER RESOLVED AND ORDERED that the City Clerk of the City of Carlsbad is hereby directed to deliver forthwith certified copies of this 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 resolution _to the Clerk of the Board of Supervisors of the County of San Diego and to the Registrar of Voters of the County of San Diego. Adjourned PASSED, APPROVED AND ADOPTED at d Regular Meeting of the City Council of the City of Carlsbad on the 10th day of March , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ABSENT: None ATTEST: &?2%-4- 2.R- ALETHA L. RAUTENKRANZ, City Clerk ) (SEAL) 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 le 19 2c 21 22 22 24 2E 2e 27 2e SHALL ORDINANCE NO. NS-8 BE ADOPTED AMENDING CHAPTER 3.12 OF TAX RATE FROM 6% TO 8%. THE CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY RESOLUTION NO. 88-60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE PROPOSED ORDINANCE PERTAINING TO TRANSIENT OCCUPANCY TAX YES NO ----- WHEREAS, a Special Municipal Election is to be held in the City of Carlsbad, on June 7, 1988, at which there will be submitted to the qualified voters of said City, the following Proposition, to wit: WHEREAS, the City Council desires to have an impartial analysis prepared showing the effect of the Ordinance on existing law and the operation of the Ordinance; NOW, THEREFORE, BE IT RESOLVED, DECLARED, DETERMINED AND ORDERED by the City Council of the City of Carlsbad as follows: SECTION 1. Pursuant to the provisions of Section 5011 of the Elections Code of the State of California, this City Council does direct the City Attorney to prepare an impartial analysis of the Ordinance. SECTION 2. The impartial analysis shall not exceed 500 words in length. 1 2 2 4 F Y E 7 9 7.0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ad j ourned PASSER, APPROVED AND ADOPTED at a/Regular Meeting of the City Council of the City of Carlsbad on the 10th day of March , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ATTEST: adzL ALETHA L . RAU<NK&Z: (SEAL) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 20 SHALL ORDINANCE NO. NS-8 BE ADOPTED AMENDING CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY RESOLUTION NO. 88-61 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING CERTAIN OF ITS MEMBERS TO FILE A WRITTEN ARGUMENT REGARDING A CITY MEASURE WHEREAS, a Special Municipal Election is to be held in the City of YES ----- Carlsbad, California, on June 7, 1988, at which there will be submitted to the voters the following measure: SECTION 1. That the above recitations are true and correct. SECTION 2. That The City Council authorizes Claude Lewis Ann Kulchin Mark Pettine John Mamaux Eric Larson to file a written argument regarding the City measure set forth in the recitals hereof in accordance with Article 4, Chapter 3, Division 5 of the Elections Code of the State of California, and to change the argument until and including the date fixed by the City Clerk after which no arguments for or against said City measure may be submitted to the City Clerk. 1 2 3 4 5 6 7 a 9 10 11 12 I. 3 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Adjourned PASSED, APPROVED AND ADOPTED at a/ Regular Meeting of the City Council of the City of Carlsbad on the lOthday of March , 1988, by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES: None ATTEST: (SEAL) I .- 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 1E 19 2c 21 22 2: 24 2: 2E 27 2E ORDINANCE NO. NS - 8 AN ORDINANCE OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 3, CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT OF SECTIONS 3.12.030 TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE TO 8%. The People of the City of Carlsbad do ordain as follows: SECTION 1: That Title 3, Chapter 3.12 of the Carlsbad Municipal Code is amended by the amendment of Section 3.12.030 to read as follows: "3.12.030 ImDosition--Amount--Where Dayable. For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of eight percent of the rent charged by the operator. Such tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax administrator may require that such tax shall be paid directly to the tax administrator." SECTION 2: The City Council may amend this ordinance from time to time to add exceptions, or adjust the rate, or application of tax, or make such other changes as they determine to be necessary provided the rate of tax to be imposed by this ordinance shall not be increased. SECTION 3: In accordance with Section 4013 of the Elections Code of the State of California, this Ordinance shall be considered as adopted upon the date that the vote is declared by the City Council and shall go into effect ten (10) days after that date. 1 2 4 5 6 7 8 9 13 14 15 16 17 24 2f 2E 2E INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 10th day of March , 1988, and thereafter PASSED AND ADOPTED at a regular meeting of said City Council held on the 22nd day of March , 1988 by the following vote, to wit: AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson NOES : None ABSENT: None Approved as to Form and Legality ATTEST: City Clerk KAREN R. KUNDTZ, Deputy City Clerk (SEAL)