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HomeMy WebLinkAbout11/2/2016 - STAFF REPORTS - 2.B. A LM S'04 iy V N e Cg41FORN`P CITY COUNCIL STAFF REPORT DATE: NOVEMBER 2, 2016 PUBLIC HEARING SUBJECT: PROPOSED ORDINANCE ESTABLISHING THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT, PROPOSED RESOLUTION CONFIRMING THE REPORT OF THE ADVISORY BOARD AND LEVYING THE FISCAL YEAR 2016-17 ASSESSMENT, AND THE CONDUCT PROTEST PROCEEDINGS TO THE DISTRICT FROM: David H. Ready, City Manager BY: Chief of Staff/City Clerk SUMMARY The Small Hotels of Palm Springs (SHOPS) and the Desert Gay Tourism Guild (DGTG) have requested that the City of Palm Springs establish a Tourism Business Improvement District ("the TBID"), and collect an assessment on hotels of 49 rooms or less located in the City to be used for additional marketing dedicated to small hotels. The proposed actions are the final steps in establishing the district. The City Council will conduct protest proceedings, consider an ordinance establishing the district, and a resolution confirming the report of the advisory committee and levying the 2017 assessment. RECOMMENDATION: 1. Open the public hearing, receive public testimony, and written and oral protests to the establishment of the Palm Springs Small Hotel Tourism Business Improvement District. 2. Waive reading of the text and introduce for first reading Ordinance No. "AN ORDINANCE OF THE CITY OF PALM SPRINGS, ADDING CHAPTER 5.83 TO THE PALM SPRINGS MUNICIPAL CODE, ESTABLISHING THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS DISTRICT." 3. Adopt Resolution No. , "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 ITEM NO. City Council Staff Report November 2, 2016-- Page 2 Small Hotel Tourism BID YEAR 2016-17 IN CONNECTION WITH THE PALM SPRINGS TOURISM SMALL HOTEL BUSINESS IMPROVEMENT DISTRICT." STAFF ANALYSIS: At the August 2, 2016, meeting the City Council directed the City Manager to develop a report and materials for the consideration of the creation of a Palm Springs Small Hotel Tourism Business Improvement District. At the September 7, 2016, meeting the City Council adopted Resolution No. 24086 initiating proceedings to establish the district and setting October 5, 2016, as the date to conduct the public meeting. At the October 5, 2016, public meeting the City Council adopted Resolution No. 24116, declaring its intention to establish the district, and establishing the public hearing date for November 2, 2016. The proposed actions are the final step in establishing the district which include: 1) conducting protest proceedings; 2) consider a proposed ordinance adding Chapter 5.83 to the Palm Springs Municipal Code establishing the district; and 3) adopting a resolution confirming the report of the advisory board and levying a one percent (1%) levy on occupancy revenue to fund activities that promote tourism within the district, for the benefit of those hotels paying the assessment. A TBID is a special benefit assessment district that can be established by the City Council, under existing State law', for the specific purpose of funding activities that promote tourism. Currently, 67 California Cities have TBID programs in place. This mechanism is also in place on larger hotels with an assessment to fund the Greater Palm Springs CVB (GPSCVB). The establishment of this district would have no effect on the current GPSCVB assessment. The law provides that business operators are assessed and pay the assessment to the City. Cities have utilized a percentage multiplied against daily hotel revenue as the formula for imposing the assessment. Further, this law provides cities have the express authority to make improvements and engage in business promotional activities that benefit the assessed businesses within the designated boundary area. It is noted that the assessment is made against the business operator, and not against the property itself. Therefore, the assessment is legally treated by ordinance enactment as a debt owed by the business operator to the City. The City Attorney advises that Proposition 218 rules are not applicable because the assessment is not a tax on real property, and case law has clearly held that this enabling law (Streets and Highways Code sections 36500 et seq.) is not subject to Proposition 218 restrictions. (Howard Jarvis Taxpayers Assn. v. City of San Diego (1999) 72 Cal. App. 0 230) The formation of the district is not by election of the business operators, but by majority protest procedure. After notice, any person subject to the proposed assessment may Parking and Business Improvement Area Law of 1989, Cal. Streets and Highways Code§ 36500 et seq. 02 City Council Staff Report November 2, 2016-- Page 3 Small Hotel Tourism BID protest the establishment of the TBID. Each protest is weighted by the amount of the assessment to be paid. The TBID cannot be established if a majority of the affected businesses subject to the TBID, weighted by assessment, file a timely protest. Therefore, in order for a protest to be successful, businesses representing greater than 50% of the value of the total assessment to be collected must protest the formation of the district. SHOPS and DGTG are recommending a 1% assessment on room revenue. The boundaries of the district would be citywide, but the assessments would be limited to hotels of 49 rooms or less. The assessment would be collected by the City. SHOPS and DGTC are recommending the Palm Springs Bureau of Tourism (PSBOT) administer the BID funds and promotional programs as a segregated and restricted fund. The hoteliers recommend an advisory group to determine the programs and efforts to be funded and recommend the PSBOT administer the development and implementation of the programs. The ordinance effective date would be December 16, 2016; the effective date of the first assessment would be January 1, 2017, in which the subject hotels would be responsible for the assessment. 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. SHOPS and DGTG membership includes approximately 80% of the small hotels located in the City of Palm Springs. Through a number of meetings, the two organizations have identified the formation of a TBID with a 1% assessment on room revenue as an appropriate funding source for increased marketing efforts. SHOPS and DGTG have asked that the PSBOT work with them to administer the programs funded through the assessment. This would facilitate the coordination with all existing efforts and take advantage of the staffing and infrastructure that is already in place. The City Council appointed the President and three members of the Small Hotels of Palm Springs, the President and three members of Desert Gay Tourism Guild, as the Palm Springs Small Hotel Tourism Business Improvement District Advisory Board. All Advisory Board meetings are subject to the notice and requirements of the Ralph M. Brown Act for the conduct of meetings. 03 City Council Staff Report November 2, 2016 -- Page 4 Small Hotel Tourism BID Title 2, Cal. Code of Regulations § 18703(e)(5) effectively exempts TBID board members from substantive conflict of interest regulations as they relate to voting on board matters, such as recommending an assessment rate, which could possibly affect an economic interest they have within the boundary area. Thus, such board members sitting on the advisory board could vote on recommending an assessment rate to be applied to hotel operators without being subject to the disqualification rules contained in the Political Reform Act and the regulations promulgated by the Fair Political Practices Commission (FPPC). Notwithstanding, advisory board members would still be required to disclose economic interests on FPPC Form 700 annually, and would be required every two years to receive the State approved AB1234 ethics training. FISCAL IMPACT: Based upon the current assessment information, the assessment will generate approximately $325,000 per year, restricted funds, for the specific purpose of the TBID. For the remainder of the current fiscal year (January 1, 2017 through June 30, 2017) the estimated assessment is $205,000. The City has incurred costs to establish the TBID, including mailing, hearings, notifications, related staff and research time. Additionally, each year the TBID will incur costs to annually renew the assessment. The TBID will require collection, distribution, audit, annual report preparation, and City Staff administration. All administrative Staff time and costs may be reimbursed from the proceeds of the assessment. The Director of Finance estimated the cost to process monthly assessment returns and payments is $40,000 to $60,000 per year. In addition to the collection of monthly assessment returns, annual administrative costs to prepare the notices and public hearings to renew the TBID each year will be approximately $1,000 to $2,000. Pursuant to previous direction from the City Council, Staff has included provisions, in both the Resolution of Intention and the proposed ordinance, the administrative costs will be funded by the proceeds of the assessment. C ,OA MES THOMPSON DAVID H. READY Chief of Staff/City Clerk City Manager Attachments: Proposed Ordinance Establishing the District Proposed Resolution Levying the Assessment Advisory Board Report 04 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, ADDING CHAPTER 5.83 TO THE PALM SPRINGS MUNICIPAL CODE, ESTABLISHING THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT. City Attorney 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. 05 Ordinance No. Page 2 "Gross occupancy revenue" means the total rent received from transients by a hotel and motel business. "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. 5.83.030 - 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. 06 Ordinance No. 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. 6.83.090 - 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 gross 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. 07 Ordinance No. 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. 5.83.150 - 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. 5.83.170 - Amendments. Small Hotel and motel businesses within the District shall be subject to any amendments to the law. 08 Ordinance No. 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 16" DAY OF NOVEMBER, 2016. ROBERT MOON, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK 09 Ordinance No. 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. is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 2nd day of November, 2016, and adopted at a regular meeting of the City Council held on the 16th day of November, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 10 RESOLUTION NO. 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. _ 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 within 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. 11 Resolution No. _ Page 2 PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 2ND DAY OF NOVEMBER, 2016. DAVID H. READY, CITY MANAGER ATTEST: JAMES 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. 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: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 12 SMALL HOTEL BUSINESS IMPROVEMENT DISTRICT CITY OF PALM SPRINGS, CALIFORNIA `�M�Me 0 0 C�.w S'� 4��eOFN� REPORT OF THE ADVISORY BOARD FISCAL YEAR 2016-17 Introduction The Advisory Board to the proposed 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 proposed initial fiscal year for the TBID, commencing July 1, 2016 and ending June 30, 2017. ("Fiscal Year 2016-2017") However, because the activities will be provided and an assessment will be levied only during the period commencing January 1, 2017 and ending June 30, 2017, estimates in this report with regard to expenses and assessment proceeds relate only to that period. 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 2016-2017. (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, on behalf of the Advisory Board to the Palm Springs Small Hotel Tourism Improvement District. Received on file in the Office of the City Clerk of the City of Palm Springs. 13 Advisory Board Report Fiscal Year 2016-17 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 be established for Fiscal Year 2016-2017. There are no benefit zones within the TBID. SECTION 2: The improvements and activities to be provided for Fiscal Year 2016-2017. No improvements are proposed to be provided for Fiscal Year 2016-17. The activities listed in Exhibit 'A' to this Report are proposed to be provided annually. Because the TBID will exist only during a portion of Fiscal Year 2016-17, 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 2016-2017. The total cost of providing the activities is estimated to be $205,000.00. 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 2016-2017. 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 2016-17 the rate is recommended to be one percent (1.0%). 14 Advisory Board Report Fiscal Year 2016-17 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 Because the TBID is a newly proposed district, there is no surplus or deficit. 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 $205,000.00 for Fiscal Year 2016-2017. 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. 15 Attachment "A" Activities, Programs and Services Projected Budget To be Funded by Palm Springs Small Hotel Tourism Business Improvement District Fiscal Year 2016-2017 Public Relations 30% Participate in press events. Issue press releases. Create and host familiarization events for press and media. Attend press missions. Promotions 25% Create and host familiarization events for travel agents, tour operators, other travel buyers and other selected attendees as targeted. Create and produce special events. Support and sponsor existing events targeted at small hotels. Develop and implement programs to educate the community and region regarding small hotel availability and products. Direct Marketing 1S% Identify and participate in consumer and travel buyer tradeshows. Produce and distribute direct mail collateral. Produce and distribute collateral through other channels. Produce e- mail blast campaigns. Produce and distribute newsletters and other messaging. Advertising 30% Develop a cohesive brand and resources consistent with the City's tourism brand specific to the small hotel product. Resources to include brand template,photography, video, ad copy and other resources as necessary. Using Print, Digital and Social Media, identify partners to help create the most awareness for the small hotels in different ad media programs. Place ad media buys based on targeted strategies. Leverage value of current web presence from visitpalmsprings.com and coordinate all efforts with Bureau of Tourism. Research S% Conduct research to include market analysis, brand awareness, visitor feed-back, etc. Research will be used to identify strengths and weaknesses, opportunities in order to develop strategies for targeted efforts and to track performance of activities. Administration Costs related to the cost of establishing the District and collecting the Assessment as reimbursed to the City of Palm Springs. Total S 205,000.00 I 16 CITY OF PALM SPRINGS PUBLIC NOTIFICATION Date: November 2, 2016 Subject: Tourism Business Improvement District (T-BID) Small Hotels 49 Rooms or Less AFFIDAVIT OF PUBLICATION I, Kathleen D. Hart, MMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was published in the Desert Sun on October 13, 2016. 1 declare under penalty of perjury that the foregoing is true and correct. \Wn Kathleen D. Hart, MMC Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Kathleen D. Hart, MMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on October 12, 2016. 1 declare under penalty of perjury that the foregoing is true and correct. Kathleen D. Hart, MMC Chief Deputy City Clerk AFFIDAVIT OF MAILING 1, Kathleen D. Hart, MMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was mailed to each and every person on the attached list on October 11, 2016, in a sealed envelope, with postage prepaid, and depositing same in the U.S. Mail at Palm Springs, California. (81 notices) I declare under penalty of perjury that the foregoing is true and correct. 1 Kathleen D. Hart, MMC Chief Deputy City Clerk 17 11 a Ib Item alb TOT#01100001 TOT#09800003 TOT#20000002 RAMON BAUTISTA JROD INVESTMENTS LLC AVANCE HOTEL INTL LLC AMIN CASA DESTINATIONS ANDALUSIAN COURT AVANCE HOTEL INTERNATIONAL PO BOX 1586 417 BELLA CARA WAY, 2145 E TAHQUITZ CANYON WAY, SOUTH PASADENA, CA 91031 PALM SPRINGS, CA 92264 #4-124 PALM SPRINGS, CA 92262 TOT# 14400002 TOT# 15100000 TOT#05950001 ALLIES ENTERPRISES LLC HARPER„ IAN VRM, Inc(CHRIS A MILLER) CALLA LILY INN CHAPS INN COYOTE INN 350 S BELARDO RD, 312 CAMINO MONTE VISTA, 234 S PATENCIO, PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 TOT#08000002 TOT#25430000 TOT#08500000 MARTHA STEPHEN TIM SPRY JJM &MPM ENTERPRISES LLC DESERT FLOWER PROPERTIES LLC EL CID HACIENDA AT WARM SANDS,THE PO BOX 5630, 1775 E PALM CANYON DR, STE 110- P O BOX 1645, PALM SPRINGS, CA 92263 238 PALM SPRINGS, CA 92263 PALM SPRINGS, CA 92264 TOT#00800001 TOT#13000000 TOT#25410000 BEATTY(PARTNER), RALPH DONNA NEFF (P) THOMAS ARTHEA HERMANN 1996 T HORIZON MOBILE VILLAGE IRON TREE INN LAS PALMAS LLC PO BOX 2308, 1600 CALLE PALO FIERRO, 441 N STANLEY AVE, LAGUNA HILLS, CA 92654 PALM SPRINGS, CA 92264 SANTA BARBARA, CA 93105 TOT#07400001 TOT# 10210001 TOT# 17250000 LITTLE PARADISE HOTEL LLC CAPTAINS BOUNTY INC MARTINEZ, JORGE LITTLE PARADISE HOTEL OLD RANCH INN ORANGE TREE LODGE 528 E CEDAR AVE,#202 220 S PATENCIO RD, 975 E CAMINO PAROCELA, BURBANK, CA 91501 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92264 TOT#24900001 TOT#20900000 TOT#16200002 KEVIN MILLER KATHURIA(MEMBER), Y SE SE WORLDWIDE INC ORBIT IN HOTEL PALM SPRINGS INN PALM SPRINGS RENDEZVOUS 562 W ARENAS, 2525 N PALM CYN DR, 1420 N INDIAN CANYON DRIVE, PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 TOT#05100003 TOT#03900004 TOT#05900000 SANTONY INVESTMENTS LLC PURA VIDA RESORTS INC MONTANA(PRESIDENT), RUBY Z POSH PALM SPRINGS PURA VIDA RUBY MONTANA'S CORAL SANDS INN 530 E MEL AVE, 1775 E PALM CANYON DR 110, 210 W STEVENS RD, PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92264-1623 PALM SPRINGS, CA 92262 TOT#20150000 TOT#24750002 TOT#20200000 CEBRA, GEORGE MARINA ANGELA ROSSI SPUNT, HERB SAKURA JAPANESE BED& SAN GIULIANO SANDALWOOD HOTEUAPT BREAKFAST PO BOX 1054, 27943 SECO CANYON ROAD, 1677 N VIA MIRALESTE, CARDIFF BY THE SEA, CA 92007 SANTA CLARITA, CA 91350 PALM SPRINGS, CA 92262 TOT#21400001 TOT#25420000 TOT#23750000 M.A.O.R.I LLC DAVID ANDERSON GREEN„ MICHAEL C THE STARDUST HOTEL THE WESLEY PALM SPRINGS TRIANGLE INN PO BOX 1473, 711 S RIVERSIDE DR, 555 SAN LORENZO RD, RANCHO MIRAGE, CA 92270 PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264 TOT#00600000 TOT# 14900000 TOT#00300005 RAYMOND, JEANNINE M.(TRUST) CONRAD(PRESIDENT), TRACY CENTURY HOTEL GROUP, LLC VILLA ROSA INN WILLOWS HISTORIC PALM SPRINGS CENTURY PALM SPRINGS 1577 S INDIAN TR, 1850 SMOKE TREEE LN, 598 S GRENFALL RD, PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264 TOT#18500000 TOT#15700000 TOT#00500000 VAN MEETEREN, RONALD SOFONIO, LAWRENCE VERLENGIA, ERMINIA A PLACE IN THE SUN ADRIATIC HOTEL APTS,THE ALOHA HOTEL 754 SAN LORENZO RD, 2300 N PALM CANYON DR, 796 S PALO VERDE AVE, PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92264 TOT#16600002 TOT#00900000 TOT#12700003 G&W LEE INVESTMENT CORP PAPAZIAN, JACK AND TAMARA FRANK CORLEY ANDREAS HOTEL&SPA APACHE LODGE AVANTI HOTEL LLC 227 N INDIAN CYN DR, C/O CASA CODY, 354 E STEVENS ROAD, PALM SPRINGS, CA 92262 175 S. CAHUILLA ROAD PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 TOT#21500001 TOT#03400000 TOT#03800000 BEARFOOT INN INC SPLINT, HERB FRANK TYSEN BEARFOOT INN CARLTON HOTEUAPT CASA CODY HOTEL 888 N INDIAN CANYON DR, 27943 SECO CANYON ROAD, 175 S CAHUILLA RD, PALM SPRINGS, CA 92262 SANTA CLARITA, CA 91350 PALM SPRINGS, CA 92262 TOT# 17600000 TOT# 11700000 TOT#22400001 CASITAS LAQUITA LLC BLAU, CRAIG COLTS LODGE LLC CASITAS LAQUITA CHASE HOTEL AT PALM SPRINGS COLTS LODGE LLC P.O. BOX 4450, 200 W ARENAS RD, 1673 S CALLE ROLPH, PALM SPRINGS, CA 92263 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 TOT#20450001 TOT#06800002 TOT#07500000 MARTINI MADNESS LLC DESERT HILLS PARTNERS PARADISE INC DEL MARCOS HOTEL DESERT HILLS DESERT PARADISE RESORT HOTEL 225 W BARISTO RD, 601 W ARENAS ROAD, 615 WARM SANDS DR, PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92264 TOT#24500001 TOT#09250001 TOT#09900000 WEISS (PRESIDENT), RICHARD CLUB PALM SPRINGS LLC BURGER,JAMES G EAST CANYON HOTEL&SPA EL MIRASOL VILLAS EL PRADO 288 E CAMINO MONTE VISTA, 525 WARM SANDS DRIVE, 1020 N INDIAN CANYON DR, PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92262 TOT# 19300001 TOT# 13100001 TOT#11000001 MARK D HUNTER PURDY UNLIMITED INC JON JACKSON ESCAPE RESORTS INC HOTEL CALIFORNIA INNDULGE RESORT INC 641 E SAN LORENZO RD, 424 E PALM CANYON DR, 601 GRENFALL RD, PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264 TOT#13700003 TOT#19900001 TOT#02600002 STEVE HERMANN HOTELS LLC STABINS, KENNETH P KIKI MEI INC UHORIZON RESORT&SPA LA DOLCE VITA RESORT LA MAISON HOTEL 1482 EAST VALLEY ROAD,#775 PO BOX 5831 1600 E PALM CANYON DR, SANTA BARBARA, CA 93108 PALM SPRINGS, CA 92263 PALM SPRINGS, CA 92264 TOT#12600001 TOT#20300002 TOT#10600005 CASTANEDA, FELIPE PACIFICA HOST HOTELS LLC TIM CHAPMAN LOS ARBOLES HOTEL MOVIE COLONY HOTEL PALM SPRINGS WELLNESS RETREAT 784 N INDIAN CANYON DR, 726 N INDIAN CANYON DRIVE, PO BOX 383, PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92262 TOT#25350001 TOT# 15600002 TOT#23300000 O'TL LLC RESORTS PALM SPRINGS LLC WAHOO CAL HOTELS LLC RESIDENZA SAN LORENZO SANTIAGO RESORT THE HIDEAWAY 588 E SAN LORENZO ROAD, 650 E SAN LORENZO ROAD, WAHOO CAL HOTELS LLC , PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264 2314 NW SAVIER PORTLAND, OR 97210 TOT#16400001 TOT#04200001 TOT# 19150006 GAK HOSPITALITY INC AEK CAPITAL MANAGEMENT LLC NO VACANCY TONIGHT LLC THE MONKEY TREE HOTEL THE PALM SPRINGS HOTEL THE SPARROWS LODGE 2388 E RACQUET CLUB ROAD, 13207 WEDDINGTON ST, 1330 E PALM CANYON Dr, PALM SPRINGS, CA 92262 SHERMAN OAKS, CA 91401-6841 PALM SPRINGS, CA 92264 TOT#01200000 TOT#02800001 TOT#11300002 GOMEZ„ RICARDO O'CARROLL,JOHN P ASCENSION TREATMENT CENTER,LLC TORTUGA DEL SOL TWIN PALMS RESORT Z-HELIOS HOTEL 715 E SAN LORENZO RD, TWIN PALMS RESORT 3 BELMONT, PALM SPRINGS, CA 92264 1930 S CAMINO REAL NEWPORT BEACH, CA 92660-6732 PALM SPRINGS, CA 92264 TOT# 18400001 TOT#10850002 TOT#25400000 ALCAZAR PALM SPRINGS LLC ALL WORLDS RESORT INC PALM GROVE GROUP LLC ALCAZAR ALL WORLDS RESORT ARRIVE HOTEL 622 N PALM CANYON DR, 526 WARM SANDS DR, 1551 N PALM CANON DR, PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92262 TOT# 13500001 TOT# 12300000 TOT#22800001 HOTEL LLC, CANYON CLUB WERBY(PRESIDENT), DON ELIZABETH YOUNG CANYON CLUB HOTEL LLC DESERT LODGE DESERT SUN RESORT 960 N PALM CANYON DRIVE, 1177 S PALM CANYON DR, 1533 CHAPARRAL RD, PALM SPRINGS, CA 92262 PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92262 TOT#10200002 TOT#22300001 TOT# 13250001 ALL WORLDS RESORTS LLC DHARMENDRA PATEL MAKAR KORAKIA PENSIONE LLC INN EXILE KNIGHTS INN PALM SPRINGS KORAKIA PENSIONE 526 S WARM SANDS DRIVE, 1450 S PALM CANYON DR, ATTN' PAULETTE PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264 257 S PATENCIO PALM SPRINGS, CA 92262 TOT#12900000 TOT#03700000 TOT#21000001 HABER, MELVYN PATEL, BMARATKUMAR PB CONSTRUCTION SERVICES LLC MELVYNS AND THE INGLESIDE INN MUSICLAND HOTEL SKYLARK HOTEL 200 W RAMON RD 1342 S PALM CYN DR 1466 N PALM CANYON DR PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92264 PALM SPRINGS, CA 92262 TOT#24800002 TOT#25100000 TOT#25150001 DAVID B SHAHRIARI (CEO) MELLEN, ROBERT E MOHSEN AGHAZADEH VILLA ROYALE INN&EUROPA VISTA GRANDE VILLA WARM SANDS VILLAS 1620 S INDIAN TRL 574 WARM SANDS DR PO BOX 2122 PALM SPRINGS, CA 92264 Palm Springs, CA 92264 LA JOLLA, CA 92038 NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS ESTABLISHMENT OF 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 November 2, 2016. The City Council meeting begins at 6:00 p.m., in the Council Chamber at Palm Springs City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs. The purpose of the November 2, 2016, public hearing is to consider an Ordinance, pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq., establishing 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. 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 ASSESSMENT: Small hotels and motels within the city limits would pay the assessment in the amount as outlined in Section 6 of City Council Resolution No. 24115, Resolution of Intent. No other business shall be subject to the assessment. PROTEST PROCEDURES: Any interested party may protest the formation of the Palm Springs Small Hotel Tourism Business Improvement District. Protest Procedures, as well as the content of any protest are outlined in Section 9 of City Council Resolution No. 24115, 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 the City Clerks Department 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 can 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 18 will defeat the formation 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.go or by mail or hand delivery to: JAMES THOMPSON, CITY CLERK City of Palm Springs 3200 E. Tahquitz Canyon Way P.O. Box 2743 Palm Springs, CA 92262 Any challenge of the proposed in court may be limited to raising only those issues raised at the public meeting or 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 meeting and public hearing for all interested persons to be heard. Questions regarding the public meeting and the public hearing may be directed to James Thompson, City Clerk at (760) 323-8204. Si necesita ayuda con esta carta, porfavor [lame a la Ciudad de Palm Springs y puede hablar con Ariana Muniz te[efono (760) 323-8229. MES THOMPSON, CITY CLERK 1.9 RESOLUTION NO. 24115 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH THE PALM SPRINGS SMALL HOTEL TOURISM BUSINESS IMPROVEMENT DISTRICT TO LEVY ASSESSMENTS WITHIN THE DISTRICT AND SETTING A TIME AND PLACE FOR HEARING OBJECTIONS THERETO. WHEREAS, the City of Palm Springs is a charter city organized and existing under the laws of the State of California; and WHEREAS, the City Council desires to establish an tourism business assessment district pursuant to the provisions of Streets and Highways Code sections 36500 et seq. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AS FOLLOWS: 1. The City Council hereby declares its intention to establish a business improvement assessment district area to be called the "Palm Springs Small Hotel Tourism Business Improvement District" (hereinafter "Assessment District") pursuant to Streets and Highways Code Section 36500 et seq. 2. The proposed programs and activities of -the district shall be for the promotion of the business activity of these designated motel and hotels. The activities 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. 3. The location of the Assessment District is the City boundaries of the City of Palm Springs. 4. Except where funds are otherwise available, an assessment will be levied annually to pay for all improvements and activities within the district area. 5. It is the intention of the City Council that the Assessment District shall be responsible for reimbursing 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 Assessment District. Accordingly such city costs shall be deemed a debt of the Assessment District which such debt shall be paid from revenue received by the Assessment District. 6. The method and basis of levying the assessment will be an assessment calculated as a percentage of each day's daily gross revenue from room rents. The assessment shall be annually as set by resolution of the City Council. It is proposed 20 Resolution No. 24115 Page 2 that the initial assessment shall be at the rate of 1% of each day's daily gross revenue of room rents received by hotels and motels subject to the assessment. Only hotels and motels of 49 rooms or less shall be subject to assessment. 7. Pursuant to section 36531, new hotel and motel businesses described above shall not be exempt from the levy of the assessment. 8. A public hearing concerning the proposed establishment of the Palm Springs Small Hotel Tourism Business Improvement District and the levy of a proposed 1% assessment on hotel and motels of 49 rooms or less shall be held by the City Council on Wednesday, November 2, 2015, at 6:00 p.m., or as soon thereafter as the matter can be heard, in the Council chambers of the City of Palm Springs located at 32400 E. Tahquitz Canyon Way, Palm Springs, California. 9. Any interested person may give testimony at the public hearing concerning the following: whether the proposed Assessment District should be established; extent of the boundary area; the furnishing of specified types of promotion activities, or improvements. A protest may be made orally or in writing. If written protests are received from the owners of businesses in the proposed area which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, then no further proceedings shall be taken to form the district for a period of one year. If a majority protest is only against the furnishing of a specified type or types of activities with the district, those types of activities must be eliminated. 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 clerk at or before the time fixed for hearing. Each written protest shall contain a description of the business in which the person the protestor 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 of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. 10. The City Clerk shall give notice of the public hearing by causing this resolution to be published once in a newspaper of general circulation in the City in the manner prescribed by Government Code Section 54954.6. 21 Resolution No. 24115 Page 3 PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 5TH DAY OF OCTOBER, 2016. f DAVID H. READY, CIT AGER ATTEST: MES 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. 24115 is a full, true and correct cop , and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on 5` day of October, 2016, by the following vote: AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, and Mayor Moon. NOES: None. ABSENT: Mayor Pro Tem Mills. ABSTAIN: None. MES THOMPSON, CITY CLERK City of Palm Springs, California 22 Palm Springs City Council 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 city.clerk@palmspringsca.gov VIA EMAIL November 1, 2016 Re:Concerns about creation of Small Hotels BID To Whom It May Concern: We are writing to express our reservations about the creation of the Palm Springs Small Hotel Tourism Business Improvement District (the "Small Hotels BID") on behalf of Palm Grove Group LLC,owner of the 32-room ARRIVE hotel in Palm Springs that will be subject to Small Hotels BID assessment. While we support the idea of exploring programs that could enhance the legacy of small hotels in Palm Springs and provide common benefit to these dynamic and diverse properties,we have numerous concerns about the motivations,structure and efficiency of the Small Hotels BID as proposed. And while some seem quick to brush off the potential negative impact on guests from an incremental 1% assessment on room charges,we do not take any extra costs to our customers lightly. We have three general concerns with the proposed Small Hotels BID: 1. The proposed BID does not have clear aims. Small hotels in Palm Springs are as diverse as they are plentiful, spanning the whole gamut of service levels, market segments, price categories,styles, and target audiences. It is challenging to think of any common elements shared by the city's small hotels besides their size. As such, it is difficult to understand how funds raised by the Small Hotels BID could be spent to the common benefit and promotion of such a large and diverse group of properties.To wit,the proponents of the BID have not provided any concrete recommendations,suggestions or ideas as to what a successful program would achieve, let alone what it might actually look like. ��a �b Naa% ulntn\ %AVA\ It is putting the proverbial cart before the horse by significantly taxing the guests of small hotel properties without having any specific ideas, let alone an actionable plan,for how that money could be spent to anyone's benefit. 2. The proposed BID may not provide common benefit to subject properties. The Staff Reports presented at the October 5, 2016,City Council meeting and again for the November 2, 2016, meeting overstate the representation of Small Hotels of Palm Springs ("SHoPS") and Desert Gay Tourism Guild ("DGTG") among small hotel properties in Palm Springs.These groups do not ubiquitously speak for or represent the city's small hotels. However,the proposal for the Small Hotels BID essentially puts authority over the revenue in the hands of these two private groups.The advisory board that will administer the BID's funds consists exclusively of members from these groups. This raises concerns about whether these funds will truly be used for the common benefit of all small hotels or just the members of SHoPS and DGTG.This concern is especially poignant in light of the diversity of small hotels in Palm Springs, as noted above.And it is not in the city's interest to enable private trade groups to use public funds in a coercive manner to drive membership. It would be unwise and unfair to tax all hotels for the promotion and benefit of private trade groups that only represent a fraction of those businesses. 3. The proposed program is inefficient in its design. According to the Staff Report, it is estimated that nearly 20%of the revenue generated by the Small Hotels BID will be used to reimburse the city for its overhead in collecting and administering the BID's funds and oversight. This overhead will do nothing directly to promote or otherwise benefit small hotels.This also does not account for the overhead or general costs that will be incurred from the Palm Springs Bureau of Tourism to actually implement any BID programs or events. The net result will be too little of the money collected actually being spent on activities that directly benefit small hotels.There are other, more efficient ways that small hotels could pool funds into common marketing programs and event planning. Additionally,there is little definition for how decision-making around BID funds will work.The proposal calls for a rather large advisory board without providing insight on how such a large body will function or be managed. And related to our concerns above, there is little oversight defined to ensure that the funds are not spent to benefit only those properties with direct ties to the advisory board. From the little information that has actually been made publicly available,we conclude the creation of the Small Hotels BID is premature and demands further research, discussion and depth. Sincerely, Ezra Callahan Co-Owner Palm Grove Group LLC Kathie Hart From: David Ready Sent: Wednesday, November 02, 2016 11:13 AM To: Jay Thompson; Kathie Hart Subject: FW:Written testimony re:Small Hotels BID Attachments: Written Protest against Small Hotels BID-11-1-16.pdf FYI - From the Arrive Hotel regarding the TBID item on the agenda this evening. Thanks, David r�i �gpLM ip' O 3 DAVID H. READY, Esq., Ph.D., CITY MANAGER City of Palm Springs Tel: (760) 322-8350 3200 E. Tahquitz Canyon Way Fax: (760)323-8207 Palm Springs, CA 92262 TDD: (760)864-9527 www.palmsprincisca.gov David.Readvapalmspringsca.gov From: ezra.callahan(a)gmail.com [ma Ito:ezra.caIlahan(cbgmail.com] On Behalf Of Ezra Callahan Sent: Wednesday, November 02, 2016 10:55 AM To: David Ready Subject: Written testimony re: Small Hotels BID Hi David, I sent the attached letter to the city clerk to be included as written testimony for tonight's public hearing on the Small Hotels BID that's on the agenda. I wanted to be sure you saw this as well, as we have strong reservations about how this BID has come together and how it will be enacted and managed moving forward. We have been speaking with other notable small hotels in Palm Springs who share similar sentiments. Unfortunately, we were unable to organize a concerted response in such a short period of time, but I believe you will be see additional comment from them in the very near future. We are particularly concerned about the fact that the advisory board for the BID consists exclusively on SHOPS and DGTG members. These groups do not separately or collectively represent the breadth of small hotels in Palm Springs, especially given that many of the most prominent small hotels in town are not involved with them. It must be ensured that the BID's funds are not directed by these two private trade groups towards initiatives that exclusively or primarily benefit their own members or which have any type of coercive effect towards promoting membership in these two groups. Our conversations with the proponents of the BID suggest they have no concrete plans or ideas for how they can actually achieve the stated goal of promoting small hotels. We do not even subscribe to the premise that small hotels are not properly represented by the city and valley's existing tourism efforts or that they require separate, directed marketing efforts. t We will be monitoring the BID's activities closely moving forward, as we have a hard time stomaching our guests paying an extra 1% for such vaguely defined ends. We certainly hope the city will keep a critical eye on the BID so as to avoid renewing the tax if it is not providing concrete value to anyone. I'd be happy to jump on a call or meet up the next time I'm out there if you'd like to discuss further. Thanks, Ezra 'I 213.304.6020 ezra Parrivehotels.oom 2 Cindy Berardi From: El Mirasol Villas <elmirasolvillasps@gmail.com> Sent: Wednesday, November 02, 2016 9:57 AM To: CityClerk Subject: Palm Springs Small Hotel TBID Hello James, I met you yesterday at the Palm Springs Small Hotel Tourism Business Improvement District Advisory Board Meeting. As I may not be able to be in attendance tonight, November 2, 2016, at the City Council Meeting, I wanted to cast my approval vote to the levy and collection of the 1% assessment for fiscal year 2016/2017. Thank you in advance. Paul Pressman - (DGTG Treasurer) El Mirasol Villas 525 Warm Sands Drive Palm Springs, CA 92264 Phone: 760-327-5913 Email: info(a)elmirasol.com www.elmirasol.com i Jay Thompson From: Mark Hunter <Mark@EscapePalmSprings.com> Sent: Wednesday, November 02, 2016 1:44 PM To: CityClerk Cc: Jay Thompson Subject: Written Testimony in support of the Small Hotel Tourism Business Improvement District Dear Mr. Thompson, Please accept my written testimony to present to the City Council in support of the creation of the Small Hotel Tourism Business Improvement District. As the owner of an affected business, Escape Resort, I feel the implementation will be beneficial to my business, and the city as a whole. Additionally, as we all know, successful businesses create jobs as well as tax revenue. The additional tax on our tourist base is a small downside to the benefits I believe will come from the properly utilized funds. However, I do strongly caution any further increases in this or any other taxes we are asking our tourist to bear. Out of state tourist are frequently caught off guard by the higher taxes in California, and I hear the comments on a regular basis. Thank you for your time and consideration. Best, Mark Mark Hunter Escape Resorts Inc 641 E San Lorenzo Rd. Palm Springs, CA 92264 760.325.5269 Mark@EscapePaImSprings.com t Jay Thompson From: David Shahriari <davids@villaroyale.com> Sent: Wednesday, November 02, 2016 3:07 PM To: Jay Thompson Subject: TBID For Small Hotels Dear Jay; Please include this email in tonight's council agenda as a STRING SUPPORT of The SHOPS Board of Directors and their 22 hotels member for the "Palm Springs Small Hotels Tourism Business Improvement District". Thank you and all the councilmen and councilwoman along with honorable mayor Moon for your attention and support. David Shahriari SHoPS President. 1 Jay Thompson From: La Maison Hotel <info@lamaisonpalmsprings.com> Sent: Wednesday, November 02, 2016 4:42 PM To: Jay Thompson Subject: Tourism Business Improvement District Dear Mr. Jay Thompson, I would like to take this opportunity mention that I am in favour of the 1% assessment to be collected from small hotels in Palm Springs JBID). As an owner of a small hotel in Palm Springs, I know that we are in need of a marketing and advertising budget to promote our many small boutique hotels. Thank you. Cornelia Schuster Owner/Operator La Maison Hotel Palm Springs www.lamaisonpaimsprings.com 1-855-699-1600 760-325-1600 i RECEIVED IT Y OF PALM SPRING 2116 NOY -2 PM 4: 59 JAMES THOMF'� Palm Springs City Council CITY CLERK 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 city.clerk@paImspringsca.gov VIA EMAIL November 1, 2016 Re:Concerns about creation of Small Hotels BID To Whom It May Concern: We at L'Horizon Resort and Spa are writing to express our reservations about the creation of the Palm Springs Small Hotel Tourism Business Improvement District(the "Small Hotels BID") on behalf of Steve Hermann Hotels LLC, owner of the 25-room L'Horizon Resort and Spa in Palm Springs that will be subject to Small Hotels BID assessment. While we support the idea of exploring programs that could enhance the legacy of small hotels in Palm Springs and provide common benefit to these dynamic and diverse properties,we have numerous concerns about the motivations, structure and efficiency of the Small Hotels BID as proposed. And while some seem quick to brush off the potential negative impact on guests from an incremental 1%assessment on room charges,we do not take any extra costs to our customers lightly. We have three general concerns with the proposed Small Hotels BID: 1. The proposed BID does not have clear aims. Small hotels in Palm Springs are as diverse as they are plentiful, spanning the whole gamut of service levels, market segments, price categories,styles,and target audiences. It is challenging to think of any common elements shared by the city's small hotels besides their size. As such, it is difficult to understand how funds raised by the Small Hotels BID could be spent to the common benefit and promotion of such a large and diverse group of properties. Not to mention,we prefer to do our own marketing and brand representation.To be a Conde Nast#2 Best Hotel in the United States, it took countless resources and funds to build our brand reputation,which will be diluted by lumping us together and given no oversight as to how our brand is portrayed. To wit, the proponents of the BID have not provided any concrete recommendations, suggestions or ideas as to what a successful program would achieve, let alone what it might actually look like. It is putting the proverbial cart before the horse by significantly taxing the guests of small hotel properties without having any specific ideas, let alone an actionable plan, for how that money could be spent to anyone's benefit. 2. The proposed BID may not provide common benefit to subject properties. The Staff Reports presented at the October 5, 2016, City Council meeting and again for the November 2, 2016, meeting overstate the representation of Small Hotels of Palm Springs ("SHoPS")and Desert Gay Tourism Guild ("DGTG")among small hotel properties in Palm Springs.These groups do not ubiquitously speak for or represent the city's small hotels, not to mention us and Arrive as well as other Brand Centric hotels only differ from the larger hotels in room size,the two groups that represent, are more indicative representations of specific groups and shop keepers,they do not speak for us. However,the proposal forthe Small Hotels BID essentially puts authority over the revenue in the hands of these two private groups.The advisory board that will administer the BID's funds consists exclusively of members from these groups. This raises concerns about whether these funds will truly be used for the common benefit of all small hotels or just the members of SHoPS and DGTG.This concern is especially poignant in light of the diversity of small hotels in Palm Springs, as noted above.And it is not in the city's interest to enable private trade groups to use public funds in a coercive manner to drive membership. It would be unwise and unfair to tax all hotels for the promotion and benefit of private trade groups that only represent a fraction of those businesses. 3. The proposed program is inefficient in its design. According to the Staff Report, it is estimated that nearly 20%of the revenue generated by the Small Hotels BID will be used to reimburse the city for its overhead in collecting and administering the BID's funds and oversight.This overhead will do nothing directly to promote or otherwise benefit small hotels.This also does not account for the overhead or general costs that will be incurred from the Palm Springs Bureau of Tourism to actually implement any BID programs or events. The net result will be too little of the money collected actually being spent on activities that directly benefit small hotels.There are other, more efficient ways that small hotels could pool funds into common marketing programs and event planning. Additionally,there is little definition for how decision-making around BID funds will work.The proposal calls for a rather large advisory board without providing insight on how such a large body will function or be managed.And related to our concerns above, there is little oversight defined to ensure that the funds are not spent to benefit only those properties with direct ties to the advisory board. From the little information that has actually been made publicly available, we conclude the creation of the Small Hotels BID is premature and demands further research, discussion and depth. Sincerely, Jordan Fife DOD Partner Steve Hermann Hotels Small Hotels TBID Protest Proceeding City of Palm Springs WEIGHTED Weighted PERCENTAGE Protest Protest Permits• Name of Hotel OF TOTAL TOT Vote=1 Vote CATEGORY A-1 to 10 ROOMS 1. 300005 CENTURY PALM SPRINGS 0.8454% 0.0000% 2. 600000 VILLA ROSA INN 0.2145% 0.0000% 3. 800001 HORIZON MOBILE VILLAGE 0.0654% 0.0000% 4. 1100001 AMIN CASA DESTINATIONS 0.1309% 0.0000% 5. 3900004 PURA VIDA 0.7191% 0.0000% 6. 5100003 POSH PALM SPRINGS 0.5498% 0.0000% 7. 5900000 RUBY MONTANA'S CORAL SANDS INN 0.3223% 0.0000% 8. 5950001 COYOTEINN 0.7111% 0.0000% 9. 6900002 LAS PALMAS 0.3740% 0.0000% 10. 7400001 LITTLE PARADISE HOTEL 1.5501% 0,0000% 11. 8000002 DESERT FLOWER PROPERTIES 1.4780% 0.0000% 12. 8500000 HACIENDA AT WARM SANDS 1.8953% 0.0000% 13. 9800003 ANDALUSIAN COURT 1.1021% 0.0000% 14. 10210001 OLD RANCH INN 0.7823% 0.0000% 15. 13000000 IRON TREE INN 0.2001% 0.0000% 16. 14400002 CALLA LILY INN 0.3742% 0.0000% 17. 14900000 WILLOWS HISTORIC PALM SPRINGS 2.0319% 0.0000% 18. 15100000 CHAPS INN 0.4336% 0.0000% 19. 16200002 PALM SPRINGS RENDEZVOUS 1,1440% 0.0000% 20. 17250000 ORANGE TREE LODGE 0.1657% 0.0000% 21. 20000002 AVANCE HOTEL INTERNATIONAL 0.4921% 0.0000% 22. 20150000 SAKURA JAPAN BED AND BREAKFAST 0,0350% 0.0000% 23. 20200000 SANDALWOOD HOTEL/APT 0.4449% 0.0000% 24. 20900000 PALM SPRINGS INN 0.3831% 0.0000% 25. 21400001 THE STARDUST HOTEL 0.3817% 0.0000% 26. 23750000 TRIANGLE INN 0.5641% 0.0000% 27. 24750002 SAN GIULIANO 1.6555% 0.0000% 28. 24900001 ORBIT IN HOTEL 1.3671% 0.0000% 29. 25420000 THE WESLEY PALM SPRINGS 0.4449% 0.0000% 30. 25430000 ELCID 0.7111% 0.0000% TOTAL FOR CATEGORY 16.4810% ______________________. CATEGORY B-11 to 25 ROOMS 1. 500000 ALOHA HOTEL 0.2438% 0.0000% 2. 900000 APACHE LODGE 1.0142% 0.0000% 3. 1200000 TORTUGA DEL SOL 0.5822% 0.0000% 4. 2600002 LA MAISON HOTEL 1.4005% 0.0000% 5. 2800001 TWIN PALMS RESORT 0.1989% 0.0000% 6. 3400000 CARLTON HOTEL/APT(long-term) 0.0000% 0.0000% 7. 3800000 CASA CODY HOTEL 1.0515% 0.0000% 8. 4200001 THE PALM SPRINGS HOTEL 2.1979% 0.0000% 9. 6800002 DESERT HILLS 1.2954% 0.0000% 10. 7500000 DESERT PARADISE RESORT HOTEL 1.1109% 0.0000% 11. 9250001 EL MIRASOL VILLAS 0.9095% 0.0000% 12. 9900000 EL PRADO 0.5152% 0.0000% 13. 10600005 PALM SPRINGS WELLNESS RETREAT 0.0379% 0.0000% 14. 11000001 INNDULGE RESORT INC 3.5202% 0.0000% 15. 11300002 HELIOS HOTEL 0.4909% 0.0000% 16. 11700000 CHASE HOTEL AT PALM SPRINGS 1.7078% 0.0000% 17. 12600001 LOS ARBOLES HOTEL 1.1312% 0.0000% 18. 12700003 AVANTI HOTEL 0.6335% 0.0000% 19. 13100001 HOTEL CALIFORNIA 1.5727% 0.0000% Small Hotels BID Protest Proceeding(11-02-2016)(final) I I f o2, 11/2/2019;9;11 PM :r'rE-_ Z.(3 Y 071"c Small Hotels TBID Protest Proceeding City of Palm Springs WEIGHTED Weighted PERCENTAGE Protest Protest Permit# Name of Hotel OF TOTAL TOT Vote=1 Vote 20. 13700003 L'HORIZON RESORT&SPA 5.8134% 1 5.8134% 21. 15600002 SANTIAGO RESORT 2.1627% 0.0000% 22. 15700000 ADRIATIC HOTEL/APTS 0.9843% 0.0000% 23. 16400001 THE MONKEY TREE 1.2067% 0,0000% 24. 16600002 ANDREAS HOTEL&SPA 2.9036% 0.0000% 25. 17600000 CASITAS LAQUITA 0.6458% 0,0000% 26. 18500000 A PLACE IN THE SUN 1.1864% 0.0000% 27. 19150006 THE SPARROWS LODGE 4.7367% 0.0000% 28. 19300001 ESCAPE RESORTS INC 1.0939% 0.0000% 29. 19900001 LA DOLCE VITA RESORT 1.5833% 0.0000% 30, 20300002 MOVIE COLONY HOTEL LLC 1.7154% 0,0000% 31, 20450001 DEL MARCOS HOTEL 2.1669% 0,0000% 32. 21500001 BEARFOOT INN 0.6737% 0.0000% 33. 22400001 COLTS LODGE LLC 0.8755% 0.0000% 34. 23300000 THE HIDEAWAY 1.2476% 0.0000% 35. 24500001 EAST CANYON HOTEL&SPA 12289% 0.0000% 36. 25350001 RESIDENZA SAN LORENZO 0.5763% 0.0000% TOTAL FOR CATEGORY 50.4152% CATEGORY C-26 to 49 TSOUr 1. 3700000 MUSICLAND HOTEL 1.0313% 0.0000% 2. 10200002 INN EXILE 1.1285% 0.0000% 3. 10850002 ALL WORLDS RESORT 2.3341% 0.0000% 4. 12300000 DESERT LODGE 0.8048% 0.0000% S. 12900000 MELVYNS AND THE INGLESIDE INN 2.5145% 0.0000% 6. 13250001 KORAKIA PENSIONE 5.5670% 0.0000% 7. 13500001 CANYON CLUB HOTEL LLC 1.8671% 0.0000% 8. 18400001 ALCAZAR 3.7407% 0.0000% 9. 21000001 SKYLARK HOTEL 1.2799% 0.0000% 10. 22300001 KNIGHTS INN PALM SPRINGS 1.0918% 0.0000% 11. 22800001 DESERT SUN RESORT 3.4753% 0.0000% 12. 24800002 VILLA ROYALE INN&EUROPA 1.2636% 0.0000% 13. 25100000 VISTA GRANDE VILLA 2.5164% 0.0000% 14. 25150001 WARM SANDS VILLAS 0.9161% 0.0000% 15. 25400000 ARRIVE HOTEL 3,5726% 1 3.5726% TOTAL FOR CATEGORY 33,1038% Total Protest% 81 TOTALREPORT 100.0000% 9.3860% Small Hotels BID Protest Proceeding(11-02-2016)(final) 11/2/2016;9:11 PM The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs, CA 92262 REG�►V ED 760-778-4578/Fax 760-778-4731 CITY OF P A LH SPRING 5 State Of California ss: te,cc, l i AM 9t 00 County of Riverside JA Ct? CLERK@�u Y Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0001653446 1 am over the age of 18 years old, a citizen of the United States and not a party to, or have interest in this matter.I hereby certify that the attached advertisement appeared in said newspaper(set in type not smaller than non pariel)in each and entire issue of said newspaper and not in any supplement thereof I No 147E NOT;, oP FU8uc HEgliiNG'CITY COUNCIL CITY OF PALM SPRINGS On the f0110W1ng dates,t0 wit: ESTABUSHMENTOFTHE PALM SPRING NOTICE IS HERETOURISM BUSINESS IMPROVEMENT DSATLLLIOTEL' Newspaper: The Desert Sun 2016.CalifoThe�,ill hold a pubic,ryoenng lot I oseci11 o the'c�ty of.Palm i6 nogg n y, pp Faln, riry until med log begins at 6:00 g mee ing of November2, The SPnngs G Hall,3200 E Tahquih Can o p m""In the Council Chamber at 10/13/2016 nanope,�pursuant ithoe`the Parkign3a;2016 pubic(sear na is8to copside�:aiiOrd,-` Palm IanStreets and;Highways'CedeuS�tjonl 36$00 test A[ea law'of 0989,; P gs Smalj)Rote tTounsm+BUsiness a4•'establlshing.the business promote actml6ss (ties for,lidtels and moteh n the C imirt, to'Provjtle mo[els of oms and authorjzmq the levy of assessrhents of Palm S dogs its of the CI A Hass within the district boundarie on smallhotets and I acknowledge that I am a principal clerk of the GEOG ri of Palm Spnngs, s,which are the city lim- Oiffii RAPHIC BOUN�pRIEY The,boundaries of i ''tt are the frty limits of the,Fi of Palm 5 the, proposed,assessment printer of The Desert Sun, printed and against small hotels andmotels wlthAg':ooms orJ srio she[iry ssessmedf.levied published weekly in the City of Palm Springs, Pay tPl,,Oa asssse ant Nin Lie amount as outlt outlined .Sect,anrIn th W q�Coimits uncil Resod- COUntyOfRiverside, State of California.The assess asNo.sessment- oflntent:No other business shappe subject iothe Desert Sun was adjudicated a Newspaper of at SSTirPROCrEall as t ate Any Interested party may Prot ert the formation-. - t ),Tows Business lmpruvemem-Distrid Protest.of the general circulation on March 24, 1988 by the CduncilaRespluti, o 74 a RoT in oPr�lnt ar outlined m 1 lion 19 of City Superior COUR Of the County Of Riverside, RWPEW 9 INFORMATIpH. The staff report, proposed ord,nanS5e, and other sail ortiru documents regarding this matter are available far publiq review.at. State of California Case No. 191236. va m S❑rings 4rylHall Between thehdurs of 8:00 a.m.and 6 p through Thursday. P/eases—on t the o Clerks co p rn•a ogda if you would like t0 schedule an app RY bePartmant at,(760)323-8,207'COMNIENi ON THIS PUBLIC HEABINGi�Response to this noted tan be rs vet- Ve4 r at the Public Hearing and/orjrl}yriting before then noea,t,c rbal protesis atmthe PutilriccHeay 9 wil ar before the time for.ttte Public Healing.an the,mslnesses re r g y ercent also be counted,,A majority protert9 assess en,to beP es levied fift-yy- (( )or more bf the I declare under penalty of perjury that the Hotel oath levied will de. a{tile;}ormat on total proposed P y p I ry Written�o'mmehts ten gFiinoyx psejStDistrict ?f She Palm Spdnfis Small foregoing is true and correct. Executed on springsw.govorbymailorha6d"ilrverytoCogO'cRby° agatoy.Crer`ki' 1, .. this 13th day BER, 2016 in Palm J4E.$TH MPSON,,CIry CLERK �r 3200 Ef,Palm Springs Springs, Ca' nia. ngBoxCanyonway ": Bok2743 Any challenge of the pro o PP In, rings,CA 92262 sues raised at t e ubp p yed"inu may bd limked to[ais,gy ugqlyy tF)ose is- h P c meebn9 or The pubic heanng descr bed inThis n or m wntte'n corresponijen2e dellverxtl to the GTy Clerk at-or pnor`to the Plce, he heapring.[Cal Ga Code SeNoi�`,65009(b)(2) ub-. interested upgeity Wd6 ben at gaid public meebny'ent}p bit heaein' io.all - the able ppat7 nos 9rr[. Questions regarding the abbe 9 g20� 9may be ElCgctedLyto tames7hompso,�. Cierlh6ij2� . :NSi nec¢s(ta eyuda con esta yrta yyUNavor Its q la iudad�de Pal AMES THD r Son Anana 1NPfIiz�lefono(760)323 8229 .Tl6AdA9s�Y.`_ m�..rso�'ary ttERK fished.10/13/2016;' rant �ktrn aV 11�a F1e