SR-10-23-2012-8BCity of City Council Report
Santa Moniea'
City Council Meeting: October 23, 2012
. Agenda Item: 8'-d
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Santa Monica Tourism Marketing District
Recommended Action
Staff recommends that the City Council:
1) Accept petitions submitted by hotels within the city to form a Tourism Marketing
District;
2) Certify the submission of petitions from more than fifty percent of the lodging
businesses to be assessed; and
3) Adopt the attached Resolution of Intention to create a Tourism Marketing District
Executive Summary
Santa Monica Convention and Visitors Bureau (CVB) is requesting the establishment of
a Tourism Marketing District (TMD). The new assessment district would be a self -
imposed and self - governed benefit assessment district designed to help fund marketing
and sales promotion efforts for Santa Monica hotels. The City has received written
request petitions from lodging businesses owners representing over 68 percent of the
assessments to be levied within the proposed district, which exceeds the statutory
requirement of 50 percent. Council approval of the attached Resolution of Intention is
required in order to initiate the process of forming the Santa Monica TMD.
Background
Santa Monica Convention and Visitors Bureau (CVB), a 501(c) (4) non - profit
corporation, has been marketing Santa Monica as a visitor destination since 1982.
The CVB's mission is to increase visitor expenditures, tourism revenues and local
employment opportunities through promotion of Santa Monica as a travel destination.
Council approved a three -year contract with the CVB to continue its work promoting and
cultivating tourism on July 13, 2010.
Tourism is a mainstay sector of the Santa Monica economy and the Transient
Occupancy Tax (TOT) has long been a significant General Fund revenue stream that
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supports basic City services and functions. In FY 2010/11, the TOT generated
approximately $36M. Over the last ten years, the TOT collected by the City has
increased at an average annual rate of eight percent (Attachment C).
The CVB is funded almost exclusively by the City. Annual allocations are included in the
City's budget, and one -time funding has been granted occasionally for special projects.
In FY 2012/13, the City allocated $2,562,744 to the CVB.
In light of constrained City budgets and the CVB's belief that additional funding is
needed to increase marketing efforts, the CVB has worked with its stakeholders to
identify the establishment of a Tourism Marketing Assessment District as a sustainable
funding source that would provide additional revenues for tourism promotion and
marketing.
Discussion
TMDs are authorized by the California Property and Business Improvement District Act
of 1994 (Streets and Highways Code §36600 et seq.) and have been used by many
cities in California to help promote their communities as tourism destinations including
nearby cities of Los Angeles, Long Beach, and West Hollywood. The proposal to
establish a TMD in Santa Monica has been developed by the CVB and the Santa
Monica hotels for the purpose of funding enhanced international marketing and sales
promotion efforts.
The chief components of the recommended establishment of a TMD as outlined in the
Santa Monica Tourism Marketing District Management District Plan are summarized as
follows:
Location: The proposed TMD would include all lodging businesses located within
the boundaries of the City of Santa Monica with an average daily room
rate of $100 and above. The boundary includes 30 qualifying lodging
businesses (Attachment D). If new qualifying hotels are developed in
Santa Monica, those businesses would be subject to the assessment.
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Services: Assessment funds would be used for marketing and sales promotions to
increase tourism and to market Santa Monica lodging businesses as
tourist, meeting, and event destinations.
Budget: The total TMD annual budget for its five -year operation is estimated to
average approximately $3,129,000 per year. SMTMD assessment funds
are intended to supplement, not supplant, existing City funding for tourism
marketing.
Cost: The assessment would be assessed at a fixed rate, per occupied room,
per night. Assessments would not be collected on stays of more than 30
consecutive days, or on stays made by contract or written agreement prior
to January 1, 2013, regardless of the date of the stay. The daily amount
charged per occupied room would be based on the businesses' average
daily rate during the previous year. Lodging businesses with an average
daily rate less than $100 would not be included in the district or assessed.
The TMD proposed assessment rates are:
Average
Assessment Per
Daily Rate
Room Night
$100 to $199.99
$2.00
$200 to $300
$3.00
Over $300
$4.00
The assessment rates may be subject to an annual increase of no more
than $0.25 per year.
The amount of the assessment, if passed on to each guest, would be
disclosed in advance and separately stated from the amount of rent
charged and any other applicable taxes, and each transient would receive
a receipt for payment from the business. The assessment would be
described as the "Tourism Marketing District Assessment" or "TMD
Assessment" on the guest's documentation.
Formation: TMD formation requires submittal of petitions from lodging businesses
representing more than 50 percent of the total annual assessment,
followed by a City Council hearing and an opportunity for a written protest.
If Council approves the Resolution of Intention, lodging business owners
would receive notice of the public hearing by mail. If there is a majority
written protest, the TMD may not be formed.
Duration: The proposed TMD would have a five -year term beginning
January 1, 2013 and ending December 31, 2017. Once per year on the
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anniversary date of the formation of the district, there would be a 30 -day
period in which business owners paying more than 50 percent of the
assessment may protest and terminate the district.
Collection: The City would be responsible for collecting the assessment on a monthly
basis (including any delinquencies, penalties, and interest) from each
lodging business located in the boundaries of the TMD. The City would
forward the assessments on a quarterly basis (less an administrative fee)
to the CVB.
Governance: The CVB board would serve as the Owners' Association for the TMD.
The CVB would form a new standing advisory committee, to be known as
the "TMD hotel committee." The TMD hotel committee would have
between four and nine members, of which at least four would be
representatives of assessed lodging businesses. The TMD hotel
committee would be responsible for making recommendations to the CVB
board regarding TMD funds and programs.
The Management District Plan states that after the TMD is formed, the TMD hotel
committee could research the feasibility of expanding the TMD to include businesses
other than hotels. Any such modification would require an amendment to the proposed
Management Plan, as well as new public hearing and resolution adoption proceedings
before the City Council.
Commission Action
The SMTMD Management Plan was approved by the CVB Board of Directors at its
August 8, 2012, meeting.
Next Steps
If Council adopts the attached Resolution of Intention, a Notice of Public Hearing,
scheduled for November 13, would be posted and mailed to all Santa Monica lodging
business owners who would be subject to the special assessment. A final public
hearing would be scheduled for December 11, 2012, where a Resolution of Formation
would be considered by Council. Affected business owners would have a 45 -day period
prior to consideration of the Resolution of Formation to protest the formation of the
district. To be considered, protests would need to be submitted in writing and presented
to the City Clerk on or before the public hearing date. If the TMD is formed, collection of
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assessments would begin on January 1, 2013.
A services agreement between the City and CVB to manage the TMD on behalf of the
businesses would be needed. Authorization for such agreement would be sought on
December 11, 2012. The State's Property and Business Improvement District law
requires every special assessment district to submit annual reports to the governing city
showing proposed activities and budget for each fiscal year.
Financial Impacts & Budget Actions
There is no fiscal impact related to adoption of the Resolution of Intention. If the TMD is
eventually established, it is expected to provide financial benefits to the City, primarily in
the form of increased TOT and sales tax revenues.
Prepared by: Elana Buegoff, Sr. Development Analyst
Approved:
Andy Agle, Director
Housing and Economic Development
Forwarded to Council:
Rod Gould
City Manager
Attachments:
A. Santa Monica Tourism Marketing District Management District Plan
B. Resolution of Intention
C. Historical Transient Occupancy Tax Revenues
D. Qualifying Lodging Establishments in Santa Monica, 2012
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Attachment A
SANTA MONICA O TOURISM , R E
DISTRICT
Formed pursuant to the Property and Business ImprovementDistrictAct of1994
(Streets and Highways Code 536600 et seq.)
Submitted to the
Santa Monica Convention and Visitors Bureau
September 6, 2012
by
cIVITAs
PARTNERSHIPS.
PROGRESS. PROSPERITY
P ,.. -.
INTRODUCTION AND OVERVIEW
Developed by Santa Monica hotels and the Santa Monica Convention and Visitors Bureau, the Santa
Monica Tourism Marketing District (SIVITIVID) is a benefit assessment district proposed to help
fund marketing and sales promotion efforts for certain Santa Monica lodging businesses. This
approach has been used successfully in other destination areas throughout the country to improve
room night sales for lodging businesses.
Location: The proposed SIVITIVID includes all lodging businesses located within the boundaries
of the City of Santa Monica with an average daily rate of $100 and above.
Services: Marketing and sales promotions to increase tourism and to market assessed Santa
Monica lodging businesses as tourist, meeting and event destinations.
Budget: The total assessment collected in year one is anticipated to be approximately
$3,129,031.49. The assessment funds are intended to supplement, not supplant,
existing funding for marketing programs.
Cost: The assessment is a fixed amount per occupied room per night. Based on the
benefit received, assessments will not be collected on stays of more than thirty (30)
consecutive days, nor on stays which are pursuant to contracts or written agreements
which were executed prior to January 1, 2013, regardless of the date of the stay. The
amount charged per occupied room per night is based on the businesses' average
daily rate, based on the previous year's performance. Lodging businesses with an
average daily rate less than $100 will not be included in the district or assessed.
Assessment rates are:
Average Daily Assessment Per
Rate Room Per Night
$100-$200 $2,00
$200 -$300 $3.00
Over $300 $4.00
Assessment rates may be subject to an annual increase of no more than $0.25 per
year. The maximum assessment rate for each category each year is:
Year
$100-$200
$200-$300
Over $300
1
$
l2.00
$ 3.00
$
4.00
2
$
2.25
$ 3.25
$
4.25
3
$
2.50
$ 3.50
$
'4.50
4
$
2.75
$ 3.75
$
4.75
5
$
3.00
$ 4.00
$
5.00
Santa Monica Tourism Marketing District Management District Plan Page 2
II. WHY A TOURISM MARKETING DISTRICT FOR SANTA
MONICA?
There are several reasons why now is the right time to form a T10ID in Santa Monica; the most
compelling reasons are below
Z Stable Fundingfor Tourism Promotion
The SMI'MD will provide a stable source of funding for consistent tourism promotion
efforts in partnership with the City of Santa Monica. The SMTMD funds are intended to
supplement, not supplant, existing funding for marketing programs. Should existing levels
of funding for marketing programs be reduced, it is the intention of lodging businesses to
petition to disestablish the SMIAID.
2. An Opportunity for Increasing City Tax Revenues
As lodging business occupancy, rates, and revenue per available room (RcvPar) increase, so
too will the City's TOT revenue. An increase in visitors from the target audience will also
produce an increase in sales tax revenues from overall tourist spending. This represents a
substantial return to the City.
3. Remain Competitive by GrowingMasket Share of Visitors
The funding will ensure that more adequate financing exists for the investment required to
help target and increase the number of overnight visitors consuming rooms at assessed
hotels. It will allow further implementation of strategies and programs in currently producing
markets and building emerging international markets.
Santa Monica Tourism Marketing District Management District Plan Page 4
IV. BOUNDARY
The S1NiTNM will include lodging businesses with an ADR of $$100 or more, existing and in the
future, available for public occupancy within the boundaries of the City of Santa Afonica. Lodging
businesses whose ADR increases to $$100 will be assessed upon determination of the increase;
likewise, lodging businesses whose ADR decreases to below $100 will not be assessed upon
determination of the decrease. ADR figures shall be updated annually.
The boundary currently includes 31 lodging businesses. Please see the map below. A complete
fisting of lodging businesses within the proposed SIVITIv1D can be found on Appendix 2 of this Plan.
After the TNID is formed, the TNID hotel committee intends to research the feasibility of expanding
the TNID to include businesses other than hotels.
City of
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Santa Monica Tourism Marketing District Management District Plan Page 6
district - funded activities, be featured in advertising campaigns, and benefit from other district funded
services. Non- assessed lodging businesses will not receive these and any other district- funded services.
C. Time and Manner for Collecting Assessments
The SMTMD assessment will be implemented beginning January 1, 2013 and will continue for five
years through December 31, 2017. The City of Santa Monica will be responsible for collecting the
assessment (including any delinquencies, penalties and interest) on a monthly basis, at the same time
and in the same manner as transient occupancy taxes are collected, from each lodging business
located in the boundaries of the SIvlTMD. The City shall take all reasonable efforts to collect the
assessments from each lodging business. The City of Santa Monica shall forward the assessments on
a quarterly or monthly basis to the Santa Monica Convention and Visitors Bureau (SNICVB) which
will have the responsibility of managing TMID programs as provided in this Management District
Plan.
D. Penalties and Interest
If any business shall fail or refuse to remit to the City the assessment due on or before the last day of
the month in which the assessment becomes due, there shall be added to the assessment a penalty of
ten percent (10 %) of the amount of the assessment. If the assessment remains delinquent and
unpaid thereafter for a period of thirty days, there shall be an additional penalty of ten percent
(10 %).
E. Service Plan Budget Summary
A summary of the annual service plan budget for the SMTM D is provided on the following pages.
The total five year improvement and service plan budget is projected at approximately $3,129,031.49
annually, or $15,645,157.43 through December 31, 2017.
F. Annual Service Plan
A service plan budget has been developed to deliver services throughout the District. An amoral
service plan and budget will be developed and approved by the SMCVB Board. Please see the
budget below.
Santa Monica Tourism Marketing District
Annual Budget, Years One through Five
Category Percent of Dollar
Budget Amount
Sales and Maxkcting
85%
$2,659,676.76
Administration
10%
$312,903.15
Contingency/Renewal
5%
$156,451.57
Total Annual Budget
100%
$3,129,031.49
Sales and Marketing
A sales and marketing program will promote Santa Monica lodging businesses as tourist and meeting
destinations. The sales and marketing program will have a central theme of promoting Santa
Monica as a desirable place to visit overnight, and may include the following activities
Internet marketing efforts to increase awareness and optimize internet presence;
Santa Monica Tout-ism Marketing District Management District Plan Page 8
VI. GOVERNANCE
A. Owners' Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to
Streets and Highways Code §36651, to identify the body that shall implement the proposed
program, which shall be the Owners' Association of the TNID as defined in Streets and Highways
Code §36614.5. The Santa Monica Convention and Visitors Bureau (Bureau) will serve as the
Owners' Association for the TMD.
The Bureau shall form a new standing advisory committee, to be known as the "TIAD hotel
committee." The TIvID hotel committee shall have between 4 and 9 members, of which at least
four will be representatives of assessed lodging businesses. The TME, hotel committee shall be
responsible for making recommendations to the SMCVB board regarding TMD funds and
programs.
Annually, the Bureau shall hold a joint SNICVB board and TIvID hotel committee meeting which
will be open to the public. The purpose of the annual meeting will be mutual approval of the
budget and programs for TMD funds for the upcoming fiscal year.
B. Brown Act and California Public Records Act Compliance
The Owners' Association is subject to government regulations relating to transparency, namely the
Ralph M. Brown Act and the California Public Records Act, designed to promote public
accountability. The Owners' Association of a TMD is considered a legislative body under the Ralph
M. Brown Act (Government Code 554950 ct seq.). Thus, meetings of the Bureau's board to the
extent TMD business is conducted, and meetings of the TMD committee where a majority of the
members of the board are present, must be held in compliance with the public notice and other
requirements of the Brown Act. The Owner's Association is also subject to the record keeping and
disclosure requirements of the California Public Records Act.
C. Annual Report
The Bureau's board shall provide an annual report at the end of each fiscal year of operation to the
City Council pursuant to Streets and Highways Code X36650 (see Appendix 1).
Santa Monica Tourism Marketing District Management District Plan Page 10
§ 36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances
providing for a different method of levying assessments for similar or additional purposes from
those set forth in this part. A property and business improvement district created pursuant to this
part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation
and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
§ 36603.5. Part prevails over conflicting provisions
Any provision in this part that conflicts with any other provision of law shall prevail over the
other provision of law.
§ 36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the
remaining provisions shall remain in full force and effect. Assessments levied under this part are
not special taxes.
§ 36605. [Section repealed 2001.]
§ 36606. "Assessment"
"Assessment" means a levy for the purpose of acquiring, constructing, installing, or
maintaining improvements and promoting activities which will benefit the properties or
businesses located within a property and business improvement district.
§ 36607. "Business"
"Business" means all types of businesses and includes financial institutions and professions.
§ 36608. "City"
"City" means a city, county, city and county, or an agency or entity created pursuant to
Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title I of the
Government Code, the public member agencies of which includes only cities, counties, or a city
and county.
Santa Monica Tourism Marketing District Management District Plan Page 12
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment.
(e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
municipal services supplemental to those normally provided by the municipality.
(f) Activities which benefit businesses and real property located in the district.
§ 36614. "Management district plan "; "Plan"
"Management district plan" or "plan" means a proposal as defined in Section 36622.
§ 36614.5. "Owners' association"
"Owners' association" means a private nonprofit entity that is under contract with a city to
administer or implement activities and improvements specified in the management district plan.
An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity.
An owners' association is a private entity and may not be considered a public entity for any
propose, nor may its board members or staff be considered to be public officials for any purpose.
Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act
(Chapter 9 (commencing with Section 54950) of Part I of Division 2 of Title 5 of the
Government Code), at all times when matters within the subject matter of the district are heard,
discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code), for all documents relating
to activities of the district.
§ 36615. "Property owner "; "Owner"
"Property owner" or "owner" means any person shown as the owner of land on the last
equalized assessment roll or otherwise known to be the owner of land by the city council. The
city council has no obligation to obtain other information as to the ownership of land, and its
determination of ownership shall be final and conclusive for the purposes of this part. Wherever
this subdivision requires the signature of the property owner, the signature of the authorized
agent of the property owner shall be sufficient.
§ 36616. "Tenant"
"Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit,
other than an owner.
Santa Monica Tourism Marketing District Management District Plan Page 14
the exterior boundaries of the proposed district. The descriptions and statements do not need to
be detailed and shall be sufficient if they enable an owner to generally identify the nature and
extent of the improvements and activities and the location and extent of the proposed district.
(2) A time and place for a public hearing on the establishment of the property and business
improvement district and the levy of assessments, which shall be consistent with the
requirements of Section 36623.
§ 36622. Contents of management district plan
The management district plan shall contain all of the following:
(a) A map of the district in sufficient detail to locate each parcel of property and, if
businesses are to be assessed, each business within the district.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones,
proposed for establishment or extension in a manner sufficient to identify the affected lands and
businesses included. The boundaries of a proposed property assessment district shall not overlap
with the boundaries of another existing property assessment district created pursuant to this part.
This part does not prohibit the boundaries of a district created pursuant to this part to overlap
with other assessment districts established pursuant to other provisions of law, including, but not
limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with
Section 36500)). This part does not prohibit the boundaries of a business assessment district
created pursuant to this part to overlap with another business assessment district created pursuant
to this part. This part does not prohibit the boundaries of a business assessment district created
pursuant to this part to overlap with a property assessment district created pursuant to this part.
(d) The improvements and activities proposed for each year of operation of the district and
the maximum cost thereof.
(e) The total annual amount proposed to be expended for improvements, maintenance and
operations, and debt service in each year of operation of the district.
(f) The proposed source or sources of financing, including the proposed method and basis of
levying the assessment in sufficient detail to allow each property or business owner to calculate
the amount of the assessment to be levied against his or her property or business, The plan also
shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. hi a new district, the
maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed
10 years. Notwithstanding these limitations, a district created pursuant to this part to finance
capital improvements with bonds may levy assessments until the maximum maturity of the
bonds. The management district plan may set forth specific increases in assessments for each
year of operation of the district.
(i) The proposed time for implementation and completion of the management district plan.
0) Any proposed rules and regulations to be applicable to the district.
Santa Monica Tourism Marketing District Management District Plan Page 16
§ 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish the proposed
property and business improvement district, the city council shall adopt a resolution of formation
that shall contain all of the following:
(1) A brief description of the proposed activities and improvements, the amount of the
proposed assessment, a statement as to whether the assessment will be levied on property or
businesses within the district, a statement about whether bonds will be issued, and a description
of the exterior boundaries of the proposed district. The descriptions and statements do not need
to be detailed and shall be sufficient if they enable an owner to generally identify the nature and
extent of the improvements and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention.
(3) The time and place where the public hearing was held concerning the establishment of
the district.
(4) A determination regarding any protests received. The city shall not establish the district
or levy assessments if a majority protest was received.
(5) A statement that the properties or businesses in the district established by the resolution
shall be subject to any amendments to this part.
(6) A statement that the improvements and activities to be provided in the district will be
funded by the levy of the assessments. The revenue from the levy of assessments within a district
shall not be used to provide improvements or activities outside the district or for any purpose
other than the purposes specified in the resolution of intention, as modified by the city council at
the hearing concerning establishment of the district.
(7) A finding that the property or businesses within the area of the property and business
improvement district will be benefited by the improvements and activities funded by the
assessments proposed to be levied.
(b) The adoption of the resolution of formation and recordation of the notice and map
pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years
referred to in the management district plan.
§ 36626. Resolution establishing district
If the city council, following the public hearing, desires to establish the proposed property
and business improvement district, and the city council has not made changes pursuant to
Section 36624, or has made changes that do not substantially change the proposed assessment,
the city council shall adopt a resolution establishing the district. The resolution shall contain all
of the information specified in paragraphs (1) to (8), inclusive, of subdivision (b) of Section
36625, but need not contain information about the preliminary resolution if none has been
adopted.
Santa Monica Tourism Marketing District Management District Plan Page 18
§ 36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to
subdivision (h) of Section 36622, a new management district plan may be created and a new
district established pursuant to this part.
§ 36631. Time and manner of collection of assessments; Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in
the manner set forth by the city council in the resolution establishing the management district
plan described in Section 36622. Assessments levied on real property may be collected at the
same time and in the same manner as for the ad valorem property tax, and may provide for the
same lien priority and penalties for delinquent payment. All delinquent payments for assessments
levied pursuant to this part shall be charged interest and penalties.
§ 36632. Assessments to be based on estimated benefit; Classification of real property and
businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis
of the estimated benefit to the real property within the property and business improvement
district. The city council may classify properties for purposes of determining the benefit to
property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the
estimated benefit to the businesses within the property and business improvement district. The
city council may classify businesses for purposes of determining the benefit to the businesses of
the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are
conclusively presumed not to benefit from the improvements and service funded through these
assessments, and shall not be subject to any assessment pursuant to this part.
§ 36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in any action or
proceeding unless the action or proceeding is commenced within 30 days after the resolution
levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment
in an action or proceeding shall be perfected within 30 days after the entry of judgment.
§ 36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city
services that would continue after a property and business improvement district has been formed.
Santa Monica Tourism Marketing District Management District Plan Page 20
relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be
modified by the city council as necessary to accommodate assessments levied upon business
pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed
improvements specified in the resolution of formation adopted pursuant to Section 36625, set
forth the estimated cost of those improvements, specify the number of annual installments and
the fiscal years during which they are to be collected. The amount of debt service to retire the
bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30
years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal
and interest on any bond issued pursuant to this section shall not be reduced or terminated if
doing so would interfere with the timely retirement of the debt.
§ 36641. [Section repealed 2001.]
§ 36642. [Section repealed 2001.]
§ 36643. [Section repealed 2001.]
§ 36650. Report by owners' association; Approval or modification by city council
(a) The owners' association shall cause to be prepared a report for each fiscal year, except the
first year, for which assessments are to be levied and collected to pay the costs of the
improvements and activities described in the report. The owners' association's first report shall be
due after the first year of operation of the district. The report may propose changes, including,
but not limited to, the boundaries of the property and business improvement district or any
benefit zones within the district, the basis and method of levying the assessments, and any
changes in the classification of property, including any categories of business, if a classification
is used.
(b) The report shall be filed with the cleric and shall refer to the property and business
improvement district by name, specify the fiscal year to which the report applies, and, with
respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement
district or in any benefit zones or classification of property or businesses within the district.
(2) The improvements and activities to be provided for that fiscal year.
(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 real
property or business owner, as appropriate, to estimate the amount of the assessment to be levied
against his or her property or business for that fiscal year.
(5) The amount of any surplus or deficit revenues to be carried over from a previous fiscal
year.
Santa Monica Tourism Marketing District Management District Plan Page 22
after the date of establishment of the district and shall continue for 30 days. The next such 30-
day period shall begin two years after the date of the establishment of the district. Each
successive year of operation of the district shall have such a 30 -day period. Upon the written
petition of the owners of real property or of businesses in the area who pay 50 percent or more of
the assessments levied, the city council shall pass a resolution of intention to disestablish the
district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to
the public hearing required by this section. The resolution shall state the reason for the
disestablishment, shall state the time and place of the public hearing, and shall contain a proposal
to dispose of any assets acquired with the revenues of the assessments levied within the property
and business improvement district. The notice of the hearing on disestablishment required by this
section shall be given by mail to the property owner of each parcel or to the owner of each
business subject to assessment in the district, as appropriate. The city shall conduct the public
hearing not less than 30 days after mailing the notice to the property or business owners. The
public hearing shall be held not more than 60 days after the adoption of the resolution of
intention.
§ 36671. Refund of remaining revenues upon disestablishment of district; Calculation of
refund; Use of outstanding revenue collected after disestablishment of district
(a) Upon the disestablishment of a district, any remaining revenues, after all outstanding
debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired
with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of
the property or businesses then located and operating within the district in which assessments
were levied by applying the same method and basis that was used to calculate the assessments
levied in the fiscal year in which the district is disestablished. All outstanding assessment
revenue collected after disestablishment shall be spent on improvements and activities specified
in the management district plan.
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the
method and basis that was used to calculate the assessments levied in the immediate prior fiscal
year shall be used to calculate the amount of any refund.
Santa Monica Tourism Marketing District Management District Plan Page 24
Attachment C
Santa Monica
Historical Transient Occupancy Tax Revenues
Fiscal Year
Revenues
2001 -2002
$16,348,300
2002 -2003
$17,058,700
2003 -2004
$19,850,000
2004 -2005*
$23,419,100
2005 -2006
$29,209,200
2006 -2007
$31,892,400
2007 -2008
$34,969,100
2008 -2009
$31,265,200
2009 -2010
$29,803,600
2010 -2011
CAAG **
$32,747,300
8.00
*TOT rate was increased in mid 2004/05 from 12% to 14%
** Compound Average Annual Growth
Attachment D
Qualifying Lodging Establishments in Santa Monica, 2012
BUSINESS NAME
STREET ADDRESS
The Ambrose
1255 20th St
Bayside
2001 Ocean Ave
Best Western PLUS Gateway Hotel
1920 Santa Monica Blvd
Cal Mar Hotel Suites
220 California Ave
Comfort Inn Santa Monica
2815 Santa Monica Blvd
Days Inn Santa Monica
3007 Santa Monica Blvd
Doubletree Suites by Hilton
1707 Fourth St
The Embassy Hotel Apartments
1001 Third St
Fairmont Miramar Hotel & Bungalows
101 Wilshire Blvd
Holiday Inn Santa Monica at the Pier
120 Colorado Ave
Holiday Motel
1102 Pico Blvd
Hotel California
1670 Ocean Ave
Hotel Carmel
201 Broadway
Hotel Casa Del Mar
1910 Ocean Way
Hotel Shangri -La
1301 Ocean Ave
Huntley Santa Monica Beach
1111 Second St
JW Marriott Santa Monica Le Merigot
1740 Ocean Ave
Loews Santa Monica Beach Hotel
1700 Ocean Ave
Ocean Lodge
1667 Ocean Ave
Ocean View Hotel
1447 Ocean Ave
Oceana Beach Club Hotel
849 Ocean Ave
Santa Monica Pico Travelodge
3102 Pico Blvd
Rest Haven
815 Grant Street
Santa Monica Motel
2102 Lincoln Blvd.
Sea Shore Motel
2637 Main St
Seaview Hotel
1760 Ocean Ave
Sheraton Delfina Santa Monica
530 W. Pico Blvd
Shore Hotel
1515 Ocean Ave
Shutters on the Beach
One Pico Blvd
The Georgian Hotel
1415 Ocean Ave
Viceroy Santa Monica
1819 Ocean Ave
Reference Resolution
No. 10708 (CCS).