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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