HomeMy WebLinkAbout24918RESOLUTION NO. 24918
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, CONFIRMING THE
REPORT OF THE PALM SPRINGS SMALL HOTEL
TOURISM BUSINESS IMPROVEMENT DISTRICT
ADVISORY BOARD AND LEVYING AN ASSESSMENT FOR
FISCAL YEAR 2021-22 IN CONNECTION WITH THE PALM
SPRINGS SMALL HOTEL TOURISM BUSINESS
IMPROVEMENT DISTRICT
WHEREAS, Ordinance No. 1907 of the City of Palm Springs has established the
Palm Springs Tourism Small Hotel Business Improvement District ("the District") pursuant
to Streets and Highways Code sections 36500 et seq.; and
WHEREAS, the Palm Springs Tourism Small Hotel Business Improvement District
Advisory Board serving as advisory board with respect to the District, prepared and filed
with the City Clerk a report with regard to the District's activities and finances for fiscal
year 2021-22; and
WHEREAS, the City Council has reviewed the advisory board's report, and
declared its intention to levy an assessment against hotel and motel businesses of 49
rooms or less located within the District; and
WHEREAS, on June 24, 2021, the City Council held a noticed public hearing at
which the testimony of all interested persons regarding the levy of the assessment for
fiscal year 2021-22 were heard and considered.
NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, AS FOLLOWS:
SECTION 1. The true and correct recitals above are incorporated by this reference
herein as the factual basis for this Resolution.
SECTION 2. Following notice duly given pursuant to law, the City Council has held
a full and fair public hearing regarding the levy and collection of an assessment within the
District for fiscal year 2021-22. All interested persons were afforded the opportunity to
hear and to be heard regarding protests and objections to the levy and collection of the
assessment for fiscal year 2021-22. The City Council finds that there was no majority
protest within the meaning of the law. All protests and objections to the levy and collection
of the assessment and any and all protests and objections are hereby overruled by the
City Council.
SECTION 3. The City Council hereby finally confirms the report of the Advisory
Board.
Resolution No. 24918
Page 2
SECTION 4. The adoption of this Resolution constitutes the levy of the
assessment for fiscal year 2021-22. The rate of the assessment for fiscal year 2021-22
is 1.00% (one percent) of each day's gross occupancy revenue as defined in the
assessment district ordinance.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS THIS 24th DAY OF JUNE, 2021.
JUSTI CLIFTON, CbY MANAGER
ATWEST:
ONY J.
LERK
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 24918 is a full, true, and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on June 24, 2021, by the following
vote:
AYES: Councilmembers Garner, Kors, Woods, Mayor Pro Tem Middleton, and
Mayor Holstege
NOES: None
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Springs, California, this day of poi, j ,-ZoL
Axffhony J. Mia, MT#6;-may Clerk
City of Palm Springs, California
Resolution No. 24918
Page 3
EXHIBIT A
Resolution No. 24918
Page 4
PALM SPRINGS SMALL HOTEL
TOURISM BUSINESS IMPROVEMENT DISTRICT
"TBID"
CITY OF PALM SPRINGS, CALIFORNIA
REPORT OF THE TBID ADVISORY BOARD
FISCAL YEAR 2021-2022
Introduction
The Advisory Board of the Palm Springs Small Hotel Business Improvement
District (the "TBID"), has caused this report to be prepared pursuant to Section 36533 of
the Parking and Business Improvement Law of 1989 (Section 36500 and following of the
California Streets and Highways Code) (the "Law").
This report is for the TBID for Fiscal Year 2021-2022, commencing July 1, 2021
and ending June 30, 2022.
As required by the Law, this report contains the following information:
(1) Any proposed changes in the boundaries of the TBID or in any benefit zones
within the TBID;
(2) The improvements and activities to be provided for Fiscal Year 2021-2022;
(3) An estimate of the cost of providing the improvements and the activities for that
fiscal year;
(4) 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 Fiscal Year 2021-2022.
(5) The amount of any surplus or deficit revenues to be carried over from a previous
fiscal year; and
(6) The amount of any contributions to be made from sources other than
assessments levied pursuant to the Law.
Resolution No. 24918
Page 5
Advisory Board Report Fiscal Year 2021-22
Page 2
SECTION 1: Proposed changes in the boundaries of the TBID or in any benefit
zones within the TBID.
The boundaries of the TBID are the City Limits of the City of Palm Springs.
These boundaries will continue for Fiscal Year 2021-2022. There are no benefit zones
within the TBID.
SECTION 2: The improvements and activities to be provided for Fiscal Year
2021-2022.
No improvements are proposed to be provided for Fiscal Year 2021-2022. The
activities listed in Exhibit 'A' to this Report are proposed to be provided annually. Not all
of these activities may be provided during that Fiscal Year, though work may be done on
any or all of the activities during the Fiscal Year.
SECTION 3: An estimate of the cost of providing the improvements and the
activities for Fiscal Year 2021-2022.
The total cost of providing the activities is estimated to be $ 528,772.00. The budget
for providing the activities is set forth in Exhibit 'A' to this Report.
SECTION 4: 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 Fiscal Year 2021-2022.
Except where otherwise defined in this Report, all capitalized terms shall have the
meanings set forth in the Palm Springs Municipal Code. Additionally, the following terms
shall have the following meanings:
A. "Gross Occupancy Revenue" means the total Rent received from
Transients by a Hotel and Motel Business.
B. "Hotel and Motel Business" means any Operator of a Hotel.
C. "Transient Occupancy Tax" means the tax imposed by the City in the
Municipal Code.
The Assessment will be levied against each Hotel and Motel Business in the City
consisting of 49 rooms or less. No other business shall be subject to the Assessment.
The Assessment will be calculated as a percentage of each day's Gross
Occupancy Revenue. The rate of the Assessment will be set annually by resolutionof
the City Council adopted pursuant to Section 36535 of the Law. For Fiscal Year
2021-2022 the rate is recommended to be one percent (1.0%).
Resolution No. 24918
Page 6
Advisory Board Report Fiscal Year 2021-22
Page 3
The Assessment calculated based on each day's Gross Occupancy Revenues
shall be paid to the City no later than the date on which the Hotel and Motel Business is
required, pursuant to the Palm Springs Municipal Code, to remit to the City the Transient
Occupancy Tax collected by the Hotel and Motel Business on that day.
New Hotel and Motel Businesses established in the District after the beginning of
any fiscal year shall not be exempt from the levy of the assessment for that fiscal year but
shall instead be subject to the assessment.
SECTION 5: The amount of any surplus or deficit revenues to be carried over
from a previous fiscal year
It is projected that $ 8,772.00 in TBID revenues will be carried over from Fiscal
Year 2020-2021 to Fiscal Year 2021-2022 to fund activities of the TBID.
SECTION 6: The amount of any contributions to be made from sources other than
assessments levied pursuant to the Law.
Assessment Proceeds were estimated to be approximately $196,356.00 for Fiscal
Year 2020-2021. There are no contributions expected from other funding sources.
Assessment proceeds will be spent only on activities authorized in the resolutions of the
City Council of the City of Palm Springs establishing the TBID and/or levying the
assessments.
Submitted by: Michael Green, President, on behalf of the TBID Advisory Board to
the Office of the City Clerk on May 12, 2021.
Resolution No. 24918
Page 7 Addendum "A"
Activities, Programs and Services Projected Budget
To be Funded by
Palm Springs Small Hotel TBID
Fiscal Year 2021-22
Carry -Over from 2020-2021 $ 8,772.00
Estimated collections for 2021-2022 $ 520,000.00
Total Estimated Budget (2021-2022) $ 528,772.00
Advertising and Direct Marketing
Ad Media
$ 150,000.00
PPC
$
50,000.00
Social Media
$
25,000.00
Ad Production
$
5,000.00
Agency Fees
$
36,000.00
Video Production
$
25,000.00
Photography
$
20,000.00
Print Collateral/Printing
$
5,000.00
Website Development/Programming
$
25,000.00
Public Relations
Fams and Missions $ 30,000.00
PR Agency Fees $ 36,000.00
Media Monitoring $. 15,000.00
Promotions and Events $ 30,000.00
Office Supplies/Postage $ 2,500.00
Research $ 25,000.00
Administration $ 45,634.00
Costs of collecting and administering the assessment
(reimbursed to the city of Palm Springs)
Total Projected Spending for 2021-2022 (Budgeted) $ 525,134.00
Fund Balance $ 3,638.00
Resolution No. 24918
Page 8 Addendum "B"
Activities, Programs and Services Projected Spending
of the
Palm Springs Small Hotel TBID
Fiscal Year 2020-2021
Advertising and Direct Marketing
Ad Media
$ 110,000.00
PPC
$
50,000.00
Social Media
$
24,000.00
Ad Production
$
5,000.00
Agency Fees
$
36,000.00
Video Production
$
20,000.00
Photography
$
10,000.00
Print Collateral/Printing
$
5,000.00
Website Development/Programming
$
20,000.00
Public Relations
Fams and Missions $ 20,000.00
PR Agency Fees $ 36,000.00
Media Monitoring $. 10,000.00
Promotions and Events $ 20,000.00
Office Supplies/Postage $ 2,000.00
Research $ 20,000.00
Administration $ 45,000.00
Costs of collecting and administering the assessment
(reimbursed to the city of Palm Springs)
Total Projected Spending for 2020-2021 (Budgeted) $ 433,000.00
Carry-over from Fiscal Year 2019-2020 (Actual) $ 245,416.00
Projected Assessment Collections for 2020-2021 (Per City Projection) $ 196,356.00
Projected Carry-over (Based on Projected Assessment Collections) $ 8,772.00