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HomeMy WebLinkAbout6/7/2017 - STAFF REPORTS - 1.D. {O�p ALMS,* iy ti C V N CITY COUNCIL STAFF REPORT C4<IFOA��P DATE: June 7, 2017 Consent Calendar SUBJECT: PROPOSED RESOLUTION DECLARING ITS INTENTION TO LEVY ASSESSMENTS FUNDING THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT AND SETTING A TIME AND PLACE FOR THE PUBLIC HEARING FROM: David H. Ready, City Manager BY: Office of the City Attorney Office of the City Clerk Department of Finance and Treasury SUMMARY The City Council will consider a resolution of intention to renew the Palm Springs Small Hotel Tourism Business Improvement District, and setting the public hearing for June 21, 2017. RECOMMENDATION: 1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO LEVY ASSESSMENTS FUNDING THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT, AND SETTING A TIME AND PLACE FOR PUBLIC HEARING." 2. Direct the City Clerk to give notice as required by law. STAFF ANALYSIS: There are approximately 80 small hotels in Palm Springs with 49 rooms or less, and the small hotels believe they are at a marketing disadvantage because they do not have the same marketing infrastructure of larger, branded hotels. Most small hotels do not have international marketing budgets, global call centers, local and national sales forces, international reservation systems, global brand recognition, etc. ITEM NO. 1 'D' City Council Staff Report June 7, 2017-- Page 2 Small Hotel Tourism BID On November 16, 2016, the City Council adopted Ordinance No. 1903 establishing the Palm Springs Small Hotel Tourism Business Improvement District (TBID), and on November 2, 2016, adopted Resolution No. 24127 authorizing the levy of assessments. The TBID is a special benefit assessment district that was established by the City Council, under existing State law', for the specific purpose of funding improvements and activities to improve a specific business area and promote tourism within the area in question. The TBID assessment is not on real property, and therefore not subject to Proposition 218. This mechanism is also in place on larger hotels with an assessment to fund the Greater Palm Springs CVB (GPSCVB). The establishment and function of the TBID do not impact or pertain to the current GPSCVB assessment. A Report of the TBID Advisory Board for Fiscal Year 2017-18 (attached) has been submitted, and is on file in the Office of the City Clerk. The TBID Advisory Board is recommending the continuation of the 1% assessment on room revenue. The boundaries of the district are citywide, but the assessments would be limited to hotels of 49 rooms or less. FISCAL IMPACT: Based upon the current assessment information, the assessment will generate approximately $350,000 per year, restricted funds, for the specific purpose of the TBID. This revenue can only be used for the specific purpose of advancing the TBID's interests. The City incurred costs in establishing the TBID in Fiscal Year 2016-17, and will continue to incur costs in annually sustaining the TBID. These annual costs include mailing, hearings, notifications, related staff and research time. TBID administration includes collection, distribution, and auditing of the assessment, annual report preparation, and city staff time. All administrative staff time and costs are reimbursed from the proceeds of the assessment. The Director of Finance estimates the cost to process monthly assessment returns and payments, collection of monthly assessment returns, annual administrative costs to prepare the notices and public hearings to renew the TBID each year will be approximately $40,000 per year. Parking and Business Improvement Area Law of 1989, Cal. Streets and Highways Code § 36500 et seq. 02 City Council Staff Report June 7, 2017-- Page 3 Small Hotel Tourism BID Kathleen D. Hart, MMC Geoffrey S. Kiehl Interim Cit Clerk Director of Finance and Treasurer G/ Edward Z. Kotkin David H. Ready, Esq., City Attorney Manager Attachments: • Proposed Resolution Declaring Intent to Renew and Setting a Public Hearing • Annual TBID Report for FY 2017-18 • Proposed Public Hearing Notice • Ordinance 1903, Establishing the TBID • Resolution 24127, Levying an Assessment for Fiscal Year 2016-17 03 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO LEVY ASSESSMENTS FUNDING THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT, AND SETTING A TIME AND PLACE FOR PUBLIC HEARING WHEREAS, the City of Palm Springs is a charter city organized and existing under the laws of the State of California (the "City"), and WHEREAS, the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code sections 36500 et seq. (the "Act') authorizes the City to improve a specific business area and promote tourism within the area in question, and to impose assessments on businesses for those purposes, and WHEREAS, on November 16, 2016 the City Council of the City adopted Ordinance 1903, adding Chapter 5.83 to the Palm Springs Municipal Code, and establishing the Palm Springs Small Hotel Tourism Business Improvement District (the 'TBID"), and WHEREAS, on June 7, 2017, the Council considered and approved an annual TBID report identifying activities planned for Fiscal Year 2017-18 and consistent with the requirements of the Act. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AS FOLLOWS: 1. The City Council hereby approves the recitals above as true and correct findings, incorporates those findings herein inclusive of all defined terms, and pursuant to the Act, declares its intention to levy and collect assessments within the TBID, a citywide district limited to hotels of 49 rooms or less, for Fiscal Year 2017-18. 2. The programs funded by the TBID shall be for the promotion of the business activity of designated motel and hotels within the district. TBID activities shall include the promotion of tourism in the district, the promotion of public events that benefit motels and hotels operating in the district, the furnishing of music in any public place in the district, and activities that benefit hotel and motel businesses in the district, and possible physical improvements. 04 Resolution No. Page 2 3. No changes are proposed as to the TBID's boundaries, which are co- extensive with the City limits of the City of Palm Springs, or as to the method and basis of levying assessments as established in Ordinance 1903 for Fiscal Year 2016-17, to wit, the assessment shall be at the rate of one percent (1%) of each day's daily gross revenue of room rents received by hotels and motels subject to the assessment for Fiscal Year 2017-18, from July 1 , 2017, through June 30, 2018. New hotel and motel businesses established during Fiscal Year 2017-18 within the TBID shall not be exempt from the levy of the assessment. 4. All interested parties should refer to the annual report on file with the City Clerk of the City of Palm Springs, City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs, California 92262, prepared by the TBID Advisory Board, and presented to the City Council concurrent with this resolution, which report can also be found online at http://www.palmspringsca.gov, that contains a description of the improvements and activities to be provided for Fiscal Year 2017-18, the boundaries of the TBID, and the proposed assessments to be levied upon the businesses within and subject to assessments in the TBID for Fiscal Year 2017-18. 5. NOTICE IS HEREBY GIVEN that Wednesday, June 21 , 2017, at the hour of 6:00 p.m. or as soon thereafter as the matter may be heard, in Primrose B at the Palm Springs Convention Center, 277 N. Avenieda Caballeros, Palm Springs, California, is fixed as the time and place for the public hearing on the levy of the proposed assessments for Fiscal Year 2017-18. At the aforesaid public hearing, the testimony of any and all interested persons for or against the levying of assessments for Fiscal Year 2017-18 or the furnishing of specified types of improvements or activities in Fiscal Year 2017-18 in the TBID shall be heard and considered by the City Council. Protests against the levying of assessments for Fiscal Year 2017-18, the extent of the area of the TBID, or the furnishing of specified types of improvements or activities may be made orally or in writing by any interested person. Each written protest must be filed with the City Clerk, 3200 E. Tahquitz Canyon Way, Palm Springs, California, at or before the time fixed for the public hearing. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner 05 Resolution No. Page 3 of the business. A written protest inconsistent with this Resolution shall not be counted in determining a majority protest. 7. If written protests against the levying of assessments for Fiscal Year 2017- 18 are received from the owners of businesses in the TBID which would pay fifty percent (50%) or more of the assessments proposed to be levied, and protests are not withdrawn so as to reduce the protest to less than fifty percent (50%), then no further proceedings to levy the proposed assessment may be taken by the City Council for a period of one (1) year. If the majority protest is against the furnishing of a specified type or types of improvement or activity within the TBID, then those types of improvements or activities shall be eliminated. 8. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. Written protests shall be filed with the City Clerk at or before the time fixed for the public hearing. 9. The City Clerk shall give notice of the public hearing pursuant to California Streets and Highways Code Section 36523 by causing the publishing of this Resolution of intention in a newspaper of general circulation in the City once, for at least seven days before the public hearing, and mailing of a complete copy of this Resolution by first-class mail to each business owner in the area of the TBID within seven days of the City Council's adoption of this Resolution. PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS THIS 7T" DAY OF JUNE, 2017. DAVID H. READY, Esq., Ph.D. CITY MANAGER ATTEST: KATHLEEN D. HART, MMC Interim City Clerk 06 Resolution No. Page 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, Kathleen D. Hart, Interim City Clerk of the City of Palm Springs, hereby certify that Resolution No. 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 71h day of June, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN D. HART, MMC INTERIM CITY CLERK 07 PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT "TBID" CITY OF PALM SPRINGS, CALIFORNIA N C C Tm 4UrppNP♦ -_ � L�i REPORT OF THE TBID ADVISORY BOARD FISCAL YEAR 2017-18 N W 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 2017-18, commencing July 1, 2017 and ending June 30, 2018. 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 2016-2017; (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 2017-2018. (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. Submitted by: Michael Green, President, on behalf of the TBID Advisory Board to the Office of the City Clerk on May 31 , 2017. 08 Advisory Board Report Fiscal Year 2017-18 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 2017-2018. There are no benefit zones within the TBID. SECTION 2: The improvements and activities to be provided for Fiscal Year 2017-2018. No improvements are proposed to be provided for Fiscal Year 2017-18. 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 2017-2018. The total cost of providing the activities is estimated to be $405,000. 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 2017-2018. 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 resolution of the City Council adopted pursuant to Section 36535 of the Law. For Fiscal Year 2017-2018 the rate is recommended to be one percent (1.0%). 09 Advisory Board Report Fiscal Year 2017-18 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 $40,000 in TBID revenues will be carried over from Fiscal Year 2016-2017 to Fiscal Year 2017-2018 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 will be approximately $350,000.00 for Fiscal Year 2017-2018. 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. 10 NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS INTENT TO RENEW THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its regular meeting of Wednesday, June 7, 2017. The City Council meeting begins at 6:00 p.m., in Primrose B, Palm Springs Convention Center, 277 N. Avenida Caballeros, Palm Springs, California 92262. . The purpose of public hearing is to consider renewal of the Palm Springs Small Hotel Tourism Business Improvement District, to provide business promotional activities for hotels and motels in the City of Palm Springs of 49 rooms or less, and authorizing the levy of assessments on small hotels and motels of 49 rooms or less within the district boundaries, which are the city limits of the City of Palm Springs, pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq. GEOGRAPHIC BOUNDARIES: The boundaries of the proposed Assessment District are the city limits of the City of Palm Springs, the assessment levied against small hotels and motels with 49 rooms or less in the City. PROPOSED FISCAL YEAR 2017-18 ASSESSMENT: Small hotels and motels within the city limits would pay the assessment in the amount as outlined in City Council Resolution No. Resolution of Intent. No other business shall be subject to the assessment. PROTEST PROCEDURES: Any interested party may protest the renewal of the Palm Springs Small Hotel Tourism Business Improvement District. Protest Procedures, as well as the content of any protest are outlined in City Council Resolution No. Resolution of Intent. REVIEW OF INFORMATION: The staff report, proposed ordinance, and other supporting documents regarding this matter are available for public review at Palm Springs City Hall between the hours of 8:00 a.m. and 6:00 p.m., Monday through Thursday. Please contact Office of the City Clerk at (760) 323-8204, if you would like to schedule an appointment to review these documents. COMMENT ON THIS PUBLIC HEARING: Response to this notice may be made verbally at the Public Hearing and/or in writing before the hearing. Written protests must be received at or before the time for the Public Hearing. Verbal protests at the Public Hearing will also be counted. A majority protest of the businesses representing fifty percent (50%) or more of the total proposed assessments to be levied lI will defeat the renewal of the Palm Springs Small Hotel Tourism Business Improvement District. Written comments can be made to the City Council by email at Citv.Clerk(a)palmspringsca.gov or by mail or hand delivery to: Kathleen D. Hart, MMC Interim City Clerk City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed in court may be limited to raising only those issues raised at the public hearing, described in this notice, or in written correspondence delivered to the City Clerk at, or prior, to the public hearing. [Cal. Gov. Code Section 65009(b)(2)]. An opportunity will be given at said public hearing for all interested persons to be heard. Questions regarding the public hearing may be directed to Geoffrey S. Kiehl, Director of Finance and Treasurer, (760) 323-8221. Si necesita ayuda con esta carta, porfavor (lame a la Ciudad de Palm Springs y puede hablar con Felipe Primera telefono (760) 323-8253 x 8742. Kathleen D. Hart, MMC Interim City Clerk 12 Addendum "A" Activities, Programs and Services Projected Budget To be Funded by Palm Springs Small Hotel TBID Fiscal Year 2017-2018 Advertising& Direct Marketing Ad Media, PPC, Social Media $ 190,000 Ad Production $ 5,000 Agency fees $ 30,000 Photography $ 10,000 Print Collateral/Printing $ 7,500 Website development/Programming $ 20,000 Public Relations Fams and Missions $ 18,000 PR $ 24,000 Media monitoring/Hootsuite $ 12,650 Promotions and Events $ 10,000 Office supplies, Postage, Etc. $ 3,500 Research $ 10,000 Administration $ 50,000 Costs collecting the Assessment as reimbursed to the City of Palm Springs. Total $ 390,650 13 Addendum "B Activities, Programs and Services Projected Spendin€ of the Palm Springs Small Hotel TBID Fiscal Year 2016-2017 Advertising& Direct Marketing Ad Media, PPC, Social Media $ 40,000 Ad Production $ 3,500 Agency fees $ 12,000 Photography $ 5,000 Print Collateral/Printing $ 5,000 Website development/Programming $ 18,000 Contract Writers $ 15,000 Public Relations Fams and Missions $ 25,000 PR Media monitoring/Hootsuite $ 1,380 Promotions and Events $ 25,000 Office supplies, Postage, Etc. $ 2,000 Research $ 10,000 Administration $ 35,000 Costs of establishing the District and collecting the Assessment as reimbursed to the City of Palm Springs. Total Projected Spending 2016-2017 $ 196,880 14 ORDINANCE NO. 1903 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 5.83 TO THE PALM SPRINGS MUNICIPAL CODE, ESTABLISHING THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT. City Attomey Summary This ordinance adds Chapter 5.83 to the Palm Springs Municipal Code and establishes the Palm Springs Small Hotel Tourism Business District. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS AS FOLLOWS: SECTION 1. Chapter 5.83, titled "Establishment of the Palm Springs Small Hotel Tourism Business Improvement District", is hereby added to Title 5 "Business Regulations" of the Municipal Code to read as follows: Chapter 5.83 Establishment of the Palm Springs Small Hotel Tourism Business Improvement District 5.83.010 —Chapter title. This chapter shall be known as the "Palm Springs Small Hotel Tourism Business Improvement District." 5.83.020 - Definitions. For the purposes of this chapter, the following definitions shall apply: "Assessment" means the assessment authorized by this chapter. "Authorized activities" means the activities authorized to be provided in connection with the District, as set forth in this chapter. "District" means the Palm Springs tourism business improvement district established by this chapter. "Fiscal year" means the period beginning July 1 of each calendar year and ending June 30 of the following calendar year, except that the fiscal year ending June 30, 2017 shall begin on the later of the effective date of this chapter or January 1, 2017. "Gross occupancy revenue" means the total rent received from transients by a hotel and motel business. 15 Ordinance No. 1903 Page 2 "Hotel and motel business" means any operator of a hotel other than an operator of a hotel that is owned by a nonprofit corporation and operated as an adjunct to a charitable or educational activity. "Law" means the Parking and Business improvement Area Law of 1989, being Sections 36500 et seq. of the California Streets and Highways Code. 'Transient occupancy tax" means the tax imposed by the City as established in the Municipal Code. 6.83.030 -District established/Cost Reimbursement Owing to the City. (A) A parking and business improvement area designated as the "Palm Springs Small Hotel Tourism Business Improvement District" (referred to as "Assessment District", or "District") is hereby created and established pursuant to the law. (B) The Assessment District shall reimburse the City of Palm Springs for any and all costs the City has, or will, incur in establishing and otherwise assisting in the administration of the District. Accordingly, such costs shall be deemed a debt of the District which such debt shall be repaid promptly from any District revenue. 5.83.040 - Boundaries. The boundaries of the Assessment District are the City limits of the City of Palm Springs. 5.83.050 -Activities. The following activities are authorized to be provided in connection with the District: (i) the promotion of tourism within the District; (ii) the promotion of public events which benefit hotel and motel businesses operating in the District; (ii) furnishing of music in any public place in the District; and (iv) activities which benefit hotel and motel businesses located and operating in the District. The primary purpose of these activities is to promote tourism within the District. 5.83.060 -Assessment. Except where funds are otherwise available, an assessment shall be levied annually to pay for all authorized activities within the District. The assessment shall be in addition to any other assessments, fees, charges or taxes imposed by the City. i6 Ordinance No. 1903 Page 3 5.83.070 -Assessment—Businesses subject to assessment. The assessment will be levied against small hotel with 49 rooms or less in the City. No other business shall be subject to the assessment. 5.83.080 -Assessment—New businesses. Small hotel and motel businesses as defined herein 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. 5.83.090 -Assessment—Basis and rate. The assessment will be calculated as a percentage of each day's gross occupancy revenue. The rate of the assessment effective in any fiscal year shall be set by resolution of the City Council, pursuant to California Streets and Highway Code Section 36535. 5.83.100 -Assessment—Collection. The assessment calculated based on any day's grosk occupancy revenues shall be paid to the City no later than the date on which the small hotel and motel business is required to remit to the City the transient occupancy tax collected by the hotel and motel business on that day. 5.83.110 -Assessment—Penalties and interest Any small hotel and motel business failing to timely make payment to the City of the assessment shall be subject to the same penalties and interest thereon as set forth in this Code for failure to timely remit to the City transient occupancy tax payments collected by the hotel and motel business. 5.83.120 -Assessment--Debt to City. The amount of assessment, penalty and interest imposed by the provisions of this chapter shall be deemed a debt to the City. An action may be commenced in any court of competent jurisdiction in the name of the City for the amount of such debt. The conviction and punishment of any person for failure to comply with the provisions of this chapter shall not relieve such person from paying any assessment, penalty or interest due and unpaid at the time of such conviction nor shall payment prevent prosecution of a violation of any of the provisions of this chapter. All remedies shall be cumulative, and the use of one or more remedies by the City to enforce this chapter shall not bar the use of any other remedy. 17 Ordinance No. 1903 Page 4 5.83.130 -Assessment—Election to recover from transient. The assessment is levied upon each hotel and motel business subject to the assessment, and each such business shall be solely responsible for paying all assessments when due. Without disturbance of the foregoing, a hotel or motel business may elect to recover some or all of the amount of the assessment from transients owning rent to the hotel or motel business. The amount to be recovered from any transient may not exceed the amount of rent owed by that transient to the hotel and motel business, multiplied by the then effective rate of the assessment. The amount recovered shall be identified or itemized (separately or in conjunction with the amount of transient occupancy tax owned by that transient) on a document provided to the transient. Assessments levied on hotel and motel businesses pursuant to this chapter and recovered from transients pursuant to this section are not considered "rent" for the purposes of Section 4.44.020 of this code. 5.83.140 -Special fund. There is created a special fund designated as "Palm Springs Small Hotel Tourism Business Improvement District Fund" into which all revenue derived from assessments levied pursuant to this chapter shall be placed, and such funds shall be used only for the purposes specified in this chapter. This fund shall be subject to an annual independent audit. 6.83.160 -Use of revenues. Revenues from the levy of the assessment may be used only for authorized activities, and shall not be used for activities outside of the District. 5.83.160 -Contracting of funds. The City may contract with a separate public or private agency to administer the authorized activities. Any agency that holds funds in trust for purposes related to the contract shall, at no expense to the City, provide an annual independent audit report by a certified public accountant of these funds. The audit may be funded from assessment proceeds as part of the general administration of the District. At all times the City shall reserve full rights of accounting of these funds. 6.83.170 -Amendments. Small Hotel and motel businesses within the District shall be subject to any amendments to the law. 5.83.180 -Recordkeeping and inspections. It shall be the duty of every hotel and motel business to keep all records as may be necessary to determine the amount of assessment due hereunder and shall 18 Ordinance No. 1903 Page 5 5.83.180 - Recordkeeping and inspections. It shall be the duty of every hotel and motel business to keep all records as may be necessary to determine the amount of assessment due hereunder and shall preserve the same for a period of 4 years. The tax administrator shall have the right to inspect such records at all reasonable times. The Director of Finance shall determine the mode and method of recordkeeping required to assist the tax administrator to perform the duties required of him under this section. Any audit which must be performed to secure compliance with the terms of this section is to be performed in the City. If for any reason the audit cannot be performed in the City, the hotel and motel business shall reimburse the City for the actual cost of all transportation, lodging, meals, travel time and other incidental costs reasonably incurred by the City in conducting the audit. SECTION 2. In the event any term or provision of this Ordinance is to any extent invalid or incapable of being enforced, such term or provision shall be excluded to the extent such invalidity, illegality, or unenforceability and all other terms and provisions shall remain in full force and effect. SECTION 3. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect thirty (30)days after passage. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 16th DAY OF NOVEMBER, 2 ROBE T MOON, MAYOR ATTEST: AMES THOMPSON, CITY CLERK i9 Ordinance No. 1903 Page 6 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 1903 is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 2"d day of November, 2016, and adopted at a regular meeting of the City Council held on the 16t' day of November, 2016, by the following vote: AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, Mayor Moon. NOES: None. ABSENT: Mayor Pro Tern Mills. ABSTAIN: None. CES THOMPSON, CITY CLERK ity of Palm Springs, California 1Z/0I1zo 20 RESOLUTION NO. 24127 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CONFIRMING THE REPORT OF THE ADVISORY COMMITTEE AND LEVYING AN ASSESSMENT FOR FISCAL YEAR 2016-17 IN CONNECTION WITH THE PALM SPRINGS TOURISM SMALL HOTEL BUSINESS IMPROVEMENT DISTRICT. WHEREAS, Ordinance No. 1903 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 2016-17; and Whereas, the City Council has reviewed the advisory board's report, and declared its intention to levy an assessment against hotel and motel business of 49 rooms or less located wlthln the District; and Whereas, on November 2, 2016, 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 2016-17 were heard and considered. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, AS FOLLOWS: SECTION 1. 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 2016-17. 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 2016-17. 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 2. The City Council hereby finally confirms the report of the Advisory Committee. SECTION 3. The adoption of this Resolution constitutes the levy of the assessment for fiscal year 2016-17. The rate of the assessment for fiscal year 2016-17 is 1.00% (one percent) of each day's gross occupancy revenue as defined in the assessment district ordinance. 21 Resolution No. 24127 Page 2 PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 2No DAY OF NOVEMBER, 2016. 1-6 ,DAVID H. READY, C NAGER ATTEST: AMES THOMPSON, CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 24127 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 the 2n0 day of November, 2016, by the following vote: AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, and Mayor Moon. NOES: None. ABSENT: Mayor Pro Tern Mills. ABSTAIN: None. J ES THOMPSON, CITY CLERK ity of Palm Springs, California �Zz/zcr� I 22