Loading...
HomeMy WebLinkAbout05-17 CC Ordinance I I I ORDINANCE NO. 05-17 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING CHAPTER 3.40 TO THE TEMECULA MUNICIPAL CODE ESTABLISHING THE TEMECULA VALLEY TOURISM BUSINESS IMPROVEMENT DISTRICT IN THE CITY OFTEMECULA THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Findinas. (a) Pursuant to the Parking and Business Area Law of 1989, California Streets and Highways Code Sections 36500 et sea. (the "Act"), on September 27, 2005, the City Council adopted Resolution No. 05-97, entitled "A Resolution of the City Council of the City of Temecula Declaring its Intention to Establish the Temecula Valley Tourism Business Improvement District, Declaring its Intention to Levy an Assessment on Lodging Businesses within Such District for Fiscal Year 2006-2007, and Fixing the Time and Place of a Public Meeting and a Public Hearing Thereon and Giving Notice Thereof' ("Resolution of Intention"). (b) The City Council caused notice of a public meeting and a public hearing concerning the proposed establishment of the Temecula Valley Tourism Business Improvement District and the proposed levy of an assessment against lodging businesses for fiscal year 2006-2007 within the proposed District to be duly mailed as provided by law. (c) A public meeting and a public hearing concerning the proposed establishment of the Temecula Valley Tourism Business Improvement District and the proposed levy of an assessment against lodging businesses within the proposed District for fiscal year 2006-2007 were held on November 8, 2005, and December 13, 2005, respectively, at the hour of 7:00 p.m. in the City Hall Council Chambers, 43200 Business Park Drive, Temecula, California 92590. (d) At the public meeting and the public hearing, the testimony of all interested persons for or against the establishment of the proposed Temecula Valley Tourism Business Improvement District, the extent of the proposed District, or the furnishing of specified types of activities within the proposed District, and regarding the levy of an assessment against lodging businesses within the proposed District for fiscal year 2006-2007 was heard and considered, and a full, fair and complete meeting and hearing were held. (e) The City Council hereby determines that there was not a majority protest within the meaning of Section 36525 of the Act. (f) In the opinion of the City Council, tourism is economically important and desired in the City, lodging businesses receive a special benefit from tourist visits that is distinct and far greater than the benefits, if any, received by other properties and businesses in the District, and the lodging businesses and property within the Temecula Valley Tourism Business Improvement District will be benefited by the activities to be funded by the assessments. The goal of such activities is to promote tourism through the attraction of more customers who will patronize the lodging businesses in the District. R:/Ords 2005/0rds 05-17 I I I (g) The City Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. The City Council herby determines, in accordance with 14 Cal. Code Regs. Section 15061(b) of the California Environmental Quality Act Guidelines ("CEQA Guidelines"), that the formation of the Temecula Valley Tourism Business Improvement District as described in this Ordinance is not a "project" within the meaning of Section 15378 of the CEQA Guidelines. and is therefore exempt from the requirements of CEQA. Pursuant to CEQA Guidelines Section 15061(d) and 15062, the City Manager is hereby directed to cause a Notice of Exemption to be prepared, executed and filed for the foregoing determination in the manner required by law. (h) Pursuant to its Resolution No.05-98, adopted on September 27, 2005, the City Council requested the Board of Supervisors of the County of Riverside to grant consent to the City forming the Temecula Valley Tourism Business Improvement District and including a portion of the unincorporated area of the County of Riverside therein. The City has withdrawn its request of the Board of Supervisors to grant its consent, thereby necessitating the modification of the boundaries of the Temecula Valley Tourism Business Improvement District to exclude territory in the unincorporated area of the County of Riverside. (i) The boundaries of the District are hereby modified from those described in the Resolution of Intention (Resolution No. 05-97) to exclude therefrom the portion of the unincorporated area of Riverside County known as Wine Country. The boundaries of the District are the boundaries of the City of Temecula, and include all lodging businesses therein. Section 2. Chapter 3.40, Temecula Valley Tourism Business Improvement District, is hereby added to the Temecula Municipal Code to read as follows: "CHAPTER 3.40 TEMECULA VALLEY TOURISM BUSINESS IMPROVEMENT DISTRICT "Section 3.40.010 Establishment of District. Pursuant to the Parking and Business Area Law of 1989, California Streets and Highways Code Sections 36500 et sea. (the "Act"), a business improvement area designated as the "Temecula Valley Tourism Business Improvement District" (the "District") is hereby created and established. "Section 3.40.020 DescriDtion of District. The boundaries of the District are the boundaries of the City of Temecula and include all lodging businesses therein. For the purposes of this Chapter, the term "lodging business" means hotels, motels and bed and breakfasts as defined in Temecula Municipal Code Section 3.20.040. There are no separate benefit zones within the District. R:/Ords 2005/0rds 05-17 2 I I I "Section 3.40.030 System of Assessments. (a) Except where funds are otherwise available, an assessment is hereby levied annually against all lodging businesses within the District, existing and future, to pay for all the activities to be provided within the District, commencing with fiscal year 2006-2007. The assessment shall be in addition to any other assessments, fees, charges or taxes imposed by the City. No other businesses will be subject to the assessment. (b) The assessment shall be levied annually against all lodging businesses in the District based upon two percent (2%) of the rent charged by the operator per occupied room per night. Extended stays, defined as more than thirty (30) consecutive calendar days and those exempt persons as defined in Temecula Municipal Code Section 3.20.040, will be exempt from the levy of assessments. The assessments shall not be included in gross room rental revenue for the purpose of determining the amount of the Transient Occupancy Tax imposed pursuant to Chapter 3.20 of the Temecula Municipal Code (the "Transient Occupancy Tax") (c) New lodging 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. (d) For purposes of the levying and collecting assessments within the District, a fiscal year shall commence on March 1 st, and end on the following February 28th (or 29th); provided, however, the Council may, by resolution, designate the fiscal year as July 1 to June 30 of the following year, or any other fiscal year, subject to all applicable requirements of the Act. (e) Assessments shall be collected in monthly installments or such other installments as determined pursuant to resolution of the City Council. (f) Each operator of a lodging business shall, on or before the thirtieth (30th) day of each month, commencing in April 2006, make a return to the City's Director or Finance, or his or her designee, (the "Assessment Administrator"), on forms provided by the Assessment Administrator, of the total rents charged and received for the immediately preceding month and the amount of assessment installment owed based on such rents. At such time the full amount of the assessment installment shall be remitted to the Assessment Administrator and shall be delinquent if not paid by such date. If the thirtieth day of the month falls on a Saturday, Sunday, or City holiday, the return and payment shall be due on the first business day thereafter. Returns and payments are due immediately upon cessation of business for any reason and are delinquent thirty (30) days thereafter. Each return shall be signed under penalty of perjury by a duly authorized agent of the operator. A return or payment made by mail shall be deemed received on the date shown on a postage cancellation stamp imprinted on the envelope in which the return or payment is received, or if a return or payment is made by means other than through the United States Mail, a return or payment shall be deemed received on the date the payment is stamped "received" by the Assessment Administrator. R:/Ords 2005/0rds 05-17 3 I I I (g) Each assessment installment shall be subject to the same penalties and interest for nonpayment or fraud as are applicable to the Transient Occupancy Tax pursuant to Chapter 3.20 of the Temecula Municipal Code. (h) If any operator fails to make, within the time provided in this Chapter, any report and remittance of the assessment installment or any portion thereof required by this Chapter, the Assessment Administrator shall proceed in such manner as the Assessment Administrator deems best to obtain facts and information on which to base an estimate of the assessment installments due. As soon as the Assessment Administrator procures such facts and information as he or she is able to obtain upon which to base such estimate, the Assessment Administrator shall proceed to determine and assess against such operator the assessment installments, interest and penalties provided for by this Chapter. In case such determination is made, the Assessment Administrator shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the subject operator at his last place of business known to the Assessment Administrator. The operator may make application for a hearing in the manner set forth in Section 3.20.100 of the Temecula Municipal Code, and, in such case, the provisions of such Section 3.20.100 shall govern the application, hearing, and determination of the assessment installment, interest and penalties, if any, by the Assessment Administrator. An operator may appeal the determination of the Assessment Administrator to the City Council in the manner set forth in Section 3.20.110 of the Temecula Municipal Code and, in such case, the provisions of such Section 3.20.110 shall govern the appeal and the findings of the City Council, which findings shall be final and conclusive. (i) The amount of assessment installments, penalties and interest imposed by this Chapter shall be deemed a debt owed to the City by the operator of a lodging business. An action may be commenced in any court of competent jurisdiction in the name of the City for the amount of such debt. In addition to the assessment installments, penalties and interest, the operator shall be liable to the City for the costs of collection of the amounts due and the enforcement of this Chapter, including, without limitation, all reasonable attorney fees, staff time and other costs of collection and litigation. 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 installment, 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. G) Any operator of a lodging business or other person who fails or refuses to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Assessment Administrator, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor. Any person required to make, render, sign or verify any report or claim, who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due pursuant to this Chapter is guilty of a misdemeanor. (k) The assessment is levied on each lodging business in the District and each such lodging business shall be solely responsible for paying all installments when due. Without disturbance of the foregoing, a lodging business may elect to recover some or all of the amount of the assessment from persons owing rent to the R:/Ords 2005/0rds 05-17 4 I I I lodging business. The amount to be recovered from any such person may not exceed the amount of rent owed by that person, multiplied by two percent (2%). The amount so recovered shall be separately identified or itemized on a document provided to that person. (I) It shall be the duty of every operator of a lodging business to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of the assessments due hereunder as provided in this Chapter. The Assessment Administrator shall have the authority to require the maintenance of certain records and the form of such records and shall have the right to inspect such records at all reasonable times. (m) Whenever the amount of any assessment installment, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City under this Chapter, it may be refunded provided a claim in writing therefore, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the Assessment Administrator within one (1) year of the date of payment. The claim shall be on forms furnished by the Assessment Administrator. No refund shall be paid unless the claimant established his right thereto by written records showing entitlement thereto. "Section 3.40.040. Fund. There is hereby created a special fund designated as the "Temecula Valley 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. "Section 3.40.050. Use of Revenues. The revenue derived from the levy of the assessments shall be used for marketing and promotions to increase tourism and market the Temecula Valley area as a tourist destination that benefits lodging businesses located and operating within the boundaries of the District as provided in the Resolution of Intention (Resolution No. 05-97) and shall not be used for any other purposes. The City shall retain from the Assessments an amount equal its actual expenses in setting up the District, including, without limitation, legal and staff costs, and two percent (2%) of collected Assessments for collecting the assessments and administration of the District.. "Section 3.40.060 Contract Services. The City may contract with a separate entity to administer the activities described in Section 3.40.050 above. Any entity with which the City contracts to administer such improvements and activities 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. "Section 3.40.070 Amendments. Lodging businesses within the District established by this Chapter shall be subject to any amendments to the Act." Section 3. Severabilitv. If any section, sentence, clause or phrase of this Ordinance is, for any reason, held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed and does hereby pass this Ordinance and R:/Ords 2005/0rds 05-17 5 I each section, sentence, clause and phrase hereof, irrespective of the fact that anyone or more sections, sentences, clauses, or phrases may be declared invalid or unconstitutional. Section 4. Certification. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be published or posted in the manner prescribed by law. PASSED, APPROVED AND ADOPTED this 10th day of Janua , ATTEST: I I ." STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 05-17 was duly introduced and placed upon its first reading at a meeting of the City Council on the 13th day of December, 2005, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 10th day of January, 2006 by the following vote: AYES: 5 COUNCIL MEMBERS: Comerchero, Edwards, Naggar, Washington, Roberts NOES: o o COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: o COUNCIL MEMBERS: None R:/Ords 2005/0rds 05-17 6