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HomeMy WebLinkAbout20437 - RESOLUTIONS - 8/7/2002 RESOLUTION NO 20437 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, ' CALIFORNIA, CALLING AND GIVING NOTICE OF HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE CONSOLIDATED WITH THE GENERAL STATE ELECTION TO BE HELD ON NOVEMBER 5, 2002 FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED VOTERS OF SAID CITY, MEASURES CONCERNING THE UTILITY USER TAX AND TRANSIENT OCCUPANCY TAX. WHEREAS an Initiative petition rescinding the Utility User Tax and restriction of collection and use of Transient. Occupancy Tax was filed in the Office of the City Clerk on July 19, 2002; and WHEREAS the City Clerk has verified the signatures contained therein, and has certified that the petition qualifies under provisions of the California Elections Code, to enable the City Council to adopt the measures or to submit same to a special election of the electorate of the City of Palm Springs; and WHEREAS, the City Council has determined to place said matter before the qualified voters of the City of Palm Springs; and NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, as follows: Section 1. That there shall be and there is hereby ordered a special municipal ' election, to be consolidated with the established general election date to be held November 5, 2002, for the purpose of submitting to the qualified electors of said City, the following measures, to wit: MEASURE u Shall the City Municipal Code be amended to repeal the City's 5% utility tax on users of telephone, electricity and gas services? MEASURE v Shall the City Municipal Code be amended concerning the tax currently collected on persons occupying hotel rooms so that the tax rate will vary from 10% to 12.5% based on the number of rooms in the hotel, with monies raised by the tax to be spent solely to encourage local tourism, and not for other City services? Resolution 20437 Page 2 Section 2. That the proposed measures submitted to the voters are attached as ' Exhibit A and B. Section 3. That the City Clerk is hereby directed to transmit a copy of the measures set forth in Section 1 above to the City Attorney, who shall prepare an impartial analysis of the measures in accordance with Section 9280 of the California Elections Code. Section 4. That such measures shall be designated on the ballot by a letter printed on the left margin of the square containing a description of the measure, as provided by Section 13116 of the Elections Code. In the event the measure receives a greater number of YES votes than NO votes, the measure shall be deemed supported by the voters. In the event the measure receives a greater number of NO votes than YES votes, the measure shall be deemed unsupported by the voters. Section 5. The ballots to be used at said election shall be, both as to form and matter contained therein, such as may be required by law to be used thereat. Section 6. The City Clerk of said City is hereby authorized, instructed and directed to procure and furnish, through the Registrar of Voters for the County of Riverside or other resource as necessary, any and all official ballots, notices, printed material and all supplies, equipment and paraphernalia that ' may be necessary in order to properly and lawfully conduct said election. Section 7. The polls for said election shall be open at seven o'clock a.m. on the day of said election and shall remain open continuously from said time until eight o'clock p.m. of the same day when said polls shall be closed, except as provided in Section 14401 of the Elections Code of the State of California. Section 8. In all particulars not recited in this Resolution, said election shall be held and conducted as provided by law for holding consolidated municipal elections in said City. Section 9. Notice of time and place of holding said election is hereby given and the City Clerk is hereby authorized, instructed and directed to give such further or additional notice of said election, in time, form and manner as required by law. Section 10. That the City Clerk shall reimburse said County, or other resource, for services performed when the work is completed and upon presentation to the City of a properly approved bill. Section 11. Pursuant to Section 10263 of the Elections Code of the State of California, the canvass of the Special Municipal Election to be held in said City is hereby ordered to be made by the City Clerk. ' Section 12. The City Clerk of said City shall cause to be complete the canvass of said election and shall certify the results to the City Council by December 3, 2002. Resolution 20437 Page 3 ADOPTED this 7thday of August 2002. ' AYES: Members Hodges, Mills, Oden', Reller—Spurgin and Mayor Rleindienst NOES: None ABSENT: None ATTEST: CITY OF PALM SPRINGS, CALIFORNIA B'y_ City Clerk City Man ger REVIEWED &APPROVED: Resolution 20437 Page 4 BALLOT QUESTION ' Shall the City Municipal Code be amended to repeal the City's 5% utility tax on users of telephone, electricity and gas services? EXHIBIT A Title 3, Section 3.33 Utility User Tax of the City of Palm Springs Municipal Code is added as-follows: Section 3.33 UTILITY USER TAX. 3.33.010 Provisions The City of Palm Springs shall not impose a utility user tax on the citizens or businesses in the City of Palm Springs. No utility user tax, or any other similar tax, fee or other monetary assessment upon utilities, may be assessed or levied upon any person or business within the City of Palm Springs, unless such tax, fee or assessment has been approved by the City of Palm Springs electorate. The term "utility user tax" shall include, but is not limited to, a rate or consumption tax on users of electricity, cogenerated electricity, gas, telecommunications, water, television (irrespective of means of transmission), refuse collection or sewer service. ' Sections 3.32.030, 3.32.040, 3.32.050, 3.32.060 are rescinded. (Text of Measure submitted by initiative petition) Resol-ution 20437 Page 5 BALLOT QUESTION Shall the City Municipal Code be amended concerning the tax currently collected on ' persons occupying hotel rooms so that the tax rate will vary from 10% to 12.5% based on the number of rooms in the hotel with monies raised by the tax to be spent solely to encourage local tourism and not for other City services? EXHIBIT B Title 3, Section 3.24 Transient Occupancy Tax of the City of Palm Springs Municipal Code is amended as follows: Section 3.24 TRANSIENT OCCUPANCY TAX. 3,24.030 Tax imposed. (a) For the privilege of occupancy in any hotel with no more than forty-nine (49) rooms, each transient is subject to, and shall pay a tax in the amount of ten percent (10%) of the rent charged by the operator or otherwise payable by the transient. Insofar as the transient is concerned, said tax constitutes a debt owed by the transient to the city which is extinguished only by payment to the operator or to the city. For purposes of this section, the rent deemed payable on account of time-share occupancy by a transient shall be the rental value of the unit or room(s) which accommodated such occupancy, which rental value shall be computed by determining the pro rata share of the total purchase price of the time- ' share right or entitlement (whether or not involving an estate or any ownership in real property), which share is allocable to the period of transient occupancy currently involved, and adding thereto the total applicable operating costs including, but not limited to, the applicable real and personal property taxes, plus the total amount of any and all fees, assessments, charges and expenses (not including the previously referred to taxes) charged by the operator as attributable to the time- share occupancy of the transient by whatever name such fees, assessments, charges or expenses may be denominated, whether "occupying fee," "maintenance or operations charge," "per diem fee," "management fee" or like name or otherwise. In making the computation referred to above of the pro rata share of the total purchase price, in any case wherein the time-share right or entitlement is in perpetuity or for life or otherwise not for a definite or,ascertainable term, such pro ration shall be made upon an assumed term of forty (40) years. The tax assessed and collected pursuant to this, section shall be subject to all of the provisions of Section 3.24.310. (b) In addition to the tax imposed by Section 3.24.030(a), for the privilege of occupancy in any hotel with at least fifty (50) rooms, but no more than one hundred twenty-four (124) 'rooms, each transient is subject to and shall pay an additional tax in the amount of one and one-half percent (1.5%) of the rent charged by the operator. The additional tax imposed ' by this section shall be administered and collected in the same manner, and is subject to all of the same definitions, exemptions, rules and regulations as the tax imposed by Section 3.24.030(a). Resolution 20437 Page 6 (c) In addition to the taxes imposed by Sections 3.24.030(a) and 3.24.030(b), for the privilege of occupancy in any hotel with at least one hundred ' twenty-five (125) or more rooms, each transient is subject to and shall pay an additional tax in the amount of one percent (1%) of the rent charged by the operator. The additional tax imposed by this section shall be administered and collected in the same manner, and is subject to all of the same definitions, exemptions, rules, and regulations as the tax imposed by Section 3.24.030(a). (d) For purposes of this section, "rooms" shall include, but not be limited to, any lot, parcel, space, unit, room or any other similar type of accommodation. Section 3.24,038 3.24.038 Credit for payments of tax imposed by community redevelopment agency. (a) Pursuant to Section 7280.5 of the California Revenue and Taxation Code, a community redevelopment agency is authorized to levy a transient occupancy tax for its purposes if such transient occupancy taxes are by ordinance credited against the city's transient occupancy taxes. Any person subject to the transient occupancy tax under this section is entitled to credit the amount of transient occupancy taxes due to the community redevelopment agency of the city pursuant to Revenue and Taxation Code Section 7280.5 against the payment of taxes otherwise due under this chapter. Upon the effective date of an ordinance passed by the community redevelopment agency of the city, the amount of any tax due pursuant to said ordinance by any transient occupying a hotel subject to such ordinance, and collected and remitted to the community redevelopment agency of the city, levying a transient occupancy tax pursuant to Part 1.7 of Division 2 of the Revenue and Taxation Code, shall be credited against any transient occupancy tax otherwise due by the transient under Section 3.24.030. (b) In the event that the community redevelopment agency of the city adopts an ordinance pursuant to Revenue and Taxation Code Section 7280.5 imposing a transient occupancy tax, such ordinance shall be codified in the Palm Springs Municipal Code as Section 3.24.039, to provide ready access to such ordinance for all persons reviewing this chapter of the Palm Springs Municipal Code. Section 3.24.039(a) 3.24.039 Tax imposed—Community redevelopment agency. (a) There is imposed by the community redevelopment agency of the city of Palm Springs upon those hotels identified in subsection (c) of this section, a transient occupancy tax in the amount of twelve and one-half ' percent (12.5%) of the rent charged by the operator. The tax imposed by this section shall be administered and collected in the same manner, and is subject to all the same definitions, exemptions, rules and regulations as the taxes imposed by Section 3.24.030. Resolution 20437 Page 7 (b) In addition to all other administrative mechanisms provided for in this chapter, the community redevelopment agency of the city of Palm Springs may enter into an agreement with any operator subject to the tax ' imposed under this section for collection and administration of the tax so imposed. (c) The hotels subject to the tax imposed by this section are the following: 1) The Spa Resort Casino. 2) Canyon Park Resort and Spa, but only if the community redevelopment agency enters into a disposition and development agreement or owner participation agreement relating to development to occur under the Canyon Park Resort and Spa specific plan and such hotel is actually constructed and operated. 3) Any other hotel made subject to the provisions herein by ordinance or resolution of the community redevelopment agency. (d) Proceeds from the taxes imposed hereunder may be used for the payment of principal and interest on any bond, may be used to pay any obligation of the community redevelopment agency under any owner participation agreement or other agreement, including any owner participation agreement or other agreement with the owner, or successors in interest of any owner, of any interest in real property located in a project area, or of the hotels listed in subsection (c) of this section, may be the subject of collateral for any pledge, may be the subject of any covenant, may be applied to any special fund, may be the subject of any pledge of revenues, may be the subject of any contractual obligation or may be applied to any other redevelopment purpose as may be authorized or permitted under the community redevelopment law. (e) No tax imposed by this section shall be effective unless the tax so imposed may be credited against the amount of transient occupancy taxes otherwise imposed by the city of Palm Springs. Section 3.24.310 3.24.310 Use of proceeds—Restricted'. The net proceeds from any tax imposed herein shall be placed in a restricted special fund to be known as the Community Promotion Fund, and shall only be used for the advertising, marketing, publicity and promotion of the City of Palm Springs; for the acquisition, construction, expansion, improvement, maintenance and operating costs, debt retirement, and all other expenses of the Palm Springs Convention Center; for the acquisition, construction, expansion, improvement, maintenance and operating costs, debt retirement, and all other expenses of any public sports, entertainment or recreational facility, course or !park within the city; for the acquisition, construction, expansion, improvement, maintenance and operating costs, ' debt retirement, and all other expenses of providing reasonable and convenient parking within the city; for the acquisition, construction, expansion, improvement, maintenance and operating costs, debt retirement, and all other expenses of any public library within the city; for support of the Palm Springs Desert Resorts Convention & Visitors Bureau; for support of Resolution 20437 Page 8 the Palm Springs Bureau of Tourism; for support of senior, youth and other beneficial community programs and facilities within the city; for hotel, resort ' and golf course development agreements; for support of public art programs within the city; for special events which take place within the city; and for all other reasonable efforts and expenses to encourage local tourism and for no other purpose. Section 3.24.311 The city may not collect a transient occupancy tax (TOT), or any other similar tax for the privilege of occupancy, for its own general fund, or any other purpose, except as authorized in Section 3.24.310. Section 3,24.312 The city may not borrow funds held in the Community Promotion Fund for use by any other department or program of the city, except as authorized in Section 3.24.310, or except in the case of a declared emergency pursuant to Section 3(c) of Article XIIIB of the California Constitution. Sections 3.24.035, 3.24.036, 3.24.037, 3.24.037(a), 3.24.300 are rescinded. (Text of Measure submitted by initiative petition) 1