HomeMy WebLinkAbout2005-11-15; City Council; 18344; Tourism Business Improvement District CTBIDI 8
AB# 18,344
MTG. 11/1!5/Z005
DEPT. CLK
CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT (CTBID)
RECOMMENDED ACTION:
Adopt Ordinance No. NS-778 establishing the Carlsbad Tourism Business Improvement
District, fixing the boundaries thereof, providing for the levy of a business assessment to be
paid by hotel businesses in such District and establishing an advisory board.
ITEM EXPLANATION:
Ordinance No. NS-778 was introduced and first read at the City Council meeting held on
November 8, 2005. The second reading allows the City Council to adopt the ordinance,
which would then become effective in thirty days. The City Clerk will have the ordinance
published within fifteen days, if adopted.
FISCAL IMPACT:
See Agenda Bill No. 18,336 on file with the City Clerk.
EXHIBIT:
1. Ordinance No. NS-778.
DEPARTMENT CONTACT: Sheila Cobian (760) 434-2927, scobi@ci,carlsbad.ca.us
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
EXHIBIT 1
ORDINANCE NO. NS-778
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA ENACTING CHAPTER 3.37 OF THE CARLSBAD MUNICIPAL CODE
ESTABLISHING THE CARLSBAD TOURISM BUSINESS IMPROVEMENT DISTRICT
(CTBID), FIXING THE BOUNDARIES THEREOF, PROVIDING FOR THE LEVY OF A
BUSINESS ASSESSMENT TO BE PAID BY HOTEL BUSINESSES IN SUCH
DISTRICT AND ESTABLISHING AN ADVISORY BOARD
The City Council of the City of Carlsbad does ordain as follows:
SECTION 1. That Title 3 of the Carlsbad Municipal Code is hereby
amended by the addition of Chapter 3.37, that shall be known as the Carlsbad Tourism
Business Improvement District Ordinance of the City of Carlsbad to read as follows:
“CHAPTER 3.37
CARLSBAD TOURISM
BUS I N ESS IMPROVEMENT DISTRICT”
3.37.010 Definitions
3.37.020 Procedure And Findings
3.37.030 Establishing the Carlsbad Tourism and Business
3.37.040 Boundaries
3.37.050 Levy And Collection Of Assessments
3.37.060 Ordering The Collection Of Assessments
3.37.070 Use Of Proceeds From Assessments
3.37.080 Penalty For Non-Payment Of Assessment
3.37.090 Assessments To Be Used Within The District
3.37.100 Advisory Board
3.37.1 10 Severability
Improvement District
3.37.010 DEFINITIONS.
“Hotel” shall have the meaning defined in section 3.12.020(1) of the
Carlsbad Municipal Code.
3.37.020 PROCEDURE AND FINDINGS
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
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
Streets and Highways Code) (the “law”).
(a) On September 13, 2005, the City Council of the City of
Carlsbad adopted Resolution No. 2005-281 entitled, “A Resolution of Intention of the
City Council of the City of Carlsbad, California, Declaring the Intention of the City
Council to Establish the Carlsbad Tourism Business Improvement District (CTBID),
Fixing the Time and Place of a Public Meeting and Public Hearing Thereon and
Giving Notice Thereof”.
(b) Said Resolution No. 2005-281 was published and copies
thereof were duly mailed and posted, all as provided by said law and said Resolution
NO. 2005-281.
(c) Pursuant to said Resolution No. 2005-281, a public meeting
concerning the formation of said district was held before the City Council of the City of
Carlsbad on October 11, 2005 at 6:OO p.m. in the Council Chambers of the City Hall of
the City of Carlsbad.
(d) Pursuant to said Resolution No. 2005-281, a public hearing
concerning the formation of said district was held before the City Council of the City of
Carlsbad on November 8, 2005 at 6:OO p.m. in the Council Chambers of the City Hall of
the City of Carlsbad.
(e) All written and oral protests made or filed were duly heard,
evidence for and against the proposed action was received, a full, fair and complete
hearing was granted and held.
(9 The City Council determined that there was no majority protest
within the meaning of Section 36525 of the law.
(9) That following such hearing, the City Council hereby finds that
the hotel businesses lying within the district herein created, in the opinion of the City
Council, will be benefited by the expenditures of funds raised by the assessment or
charges proposed to be levied hereunder.
Ill
Ill
3
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
3.37.030 ESTABLISHING THE CARLSBAD TOURISM AND BUSINESS
IM PROVEM E NT DISTRICT
That pursuant to said law, the Carlsbad Tourism Business Improvement
District (CTBID) is hereby established in the City of Carlsbad as herein set forth and that
all hotel businesses in the district established by this ordinance shall be subject to any
amendments made hereafter to said law or to other applicable laws.
3.37.040 BO U N DARl ES
The boundaries of the CTBID shall be the boundaries of the City of
Carlsbad as shown on the attached map (Exhibit A).
3.37.050 LEVY AND COLLECTION OF ASSESSMENTS
The CTBID will include all hotel businesses located within the CTBID
boundaries. The assessment shall be levied on all hotel businesses, existing and
future, within the City of Carlsbad based upon a flat fee of $1.00 per occupied room per
night for all transient occupancies as defined in section 3.12.020(7) of the Carlsbad
Municipal Code. The amount of the assessment shall be separately stated from the
amount of the rent and other taxes charged, and each transient shall receive a receipt
for payment from the operator. The assessment will be collected monthly, based on
$1.00 per occupied room per night in revenues for the previous month. New hotel
businesses within the boundaries will not be exempt from the levy of assessment
authorized by Section 36531. Assessments pursuant to the CTBID shall not be
included in gross room rental revenue for purpose of determining the amount of the
transient occupancy tax. No assessment shall be imposed upon occupancies of any
federal or State of California officer or employee when on official business nor on
occupancies of any officer or employee of a foreign government who is exempt by
reason of express provision of federal law or international treaty.
Ill
Ill
Ill
4
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
3.37.060 ORDERING THE COLLECTION OF ASSESSMENTS
The City Council hereby levies and imposes and orders the collection of
an additional assessment to be imposed upon persons occupying hotel business
premises in the proposed district described above, which shall be calculated pursuant to
Section 3.37.050 above. Such levy shall begin on January I , 2006.
3.37.070 USE OF PROCEEDS FROM ASSESSMENTS
That the proceeds of the additional hotel business assessment shall be
spent to administer marketing and visitor programs to promote the City of Carlsbad as a
tourism visitor destination and to fund projects, programs, and activities,including
appropriate administrative charges, that benefit hotels within the boundaries of the
district. Funds remaining at the end of any CTBID term may be used in subsequent
years in which CTBID assessments are levied as long as they are used consistent with
the requirements of this Section. The City Council of the City of Carlsbad shall consider
recommendations as to the use of said revenue made by the Advisory Board created by
Section 3.37.1 00 of this ordinance.
3.37.080 PENALTY FOR NON-PAYMENT OF ASSESSMENT
Any hotel business that fails to remit any assessment imposed by this
ordinance within the time required shall pay a penalty of 10% of the amount of the
assessment in addition to the amount of the assessment. Any hotel business that fails
to remit any delinquent remittance on or before a period of thirty (30) days following the
date on which the remittance first became delinquent shall pay a second delinquency
penalty of 10% of the amount of the assessment and the 10% penalty first imposed. In
addition to the penalties imposed, any hotel business that fails to remit any assessment
imposed by this ordinance shall pay interest at the rate of one and one-half of 1.5% per
month or fraction thereof on the amount of the assessment, exclusive of penalties, from
the date on which the remittance first became delinquent until paid.
Iff
Iff
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
3.37.090 ASSESSMENTS TO BE USED WITHIN THE DISTRICT
The improvements and activities to be provided in the CTBID will be
funded by the levy of the assessments. The revenue from the levy of assessments
within the CTBID shall not be used to provide improvements or activities outside the
CTBID or for any purpose other than the purposes specified in the resolution of
intention.
3.37.100 ADVISORY BOARD
The Advisory Board for the district is hereby appointed pursuant to Section
36530 of the law. The initial members and the powers and duties of the Advisory Board
shall be set forth in a separate resolution adopted by City Council. It shall be the
purpose of the Advisory Board to make recommendations to the City Council on
expenditures for the programs and activities of the CTBID, to make recommendations
for its annual budget to be approved by the City Council, and to provide end of year
financial reports of the CTBID operations as required by the City Council. The powers
and duties of the Advisory board shall be specified by resolution of the City Council.
The City Attorney shall serve as the general counsel of the Advisory Board.
3.37.1 IO SEVERABILITY
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 any one or more of the sections, subsections, sentences,
clauses or phrases hereof be declared invalid or unconstitutional.”
EFFECTIVE DATE: This ordinance shall be effective thirty days after its
adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to
6
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
be published at least once in a publication of general circulation in the City of Carlsbad
within fifteen days after its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad
City Council on the 8th day of November2005, and thereafter.
PASSED AND ADOPTED at a regular meeting of the City Council of the
City of Carlsbad on the 15th day of / 2005, by the following vote, to November
wit:
AYES: Council Members Lewis, Hall, Kulchin, Packard
NOES: None
ABSENT: Sigafoose
APPROVED AS TO FORM AND LEGALITY
ATTEST:
Ill
Ill
Ill
Ill
Ill
Ill
Ill
Ill
Ill
Ill
7