r10708Attachment B
City Council Meeting: October 23, 2012 Santa Monica, California
RESOLUTION NUMBER 10708 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA DECLARING ITS INTENTION TO
ESTABLISH THE SANTA MONICA TOURISM MARKETING DISTRICT (SMTMD)
AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING
AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF
WHEREAS, the Property and Business Improvement Law of 1994, Streets and
Highways Code Section 36600 et seq., authorizes cities and counties to establish
property and business improvement districts for the purposes of promoting tourism; and
WHEREAS, Santa Monica Municipal Code Section 2.38.020 authorizes the City
Council to elect to use the procedures set forth in Streets and Highways Code Section
36600 et seq. in forming an assessment district in the City; and
WHEREAS, the Santa Monica Convention and Visitors Bureau, lodging business
owners, members of the business community, and representatives from the City of
Santa Monica have met to consider the formation of the Santa Monica Tourism
Marketing District (SMTMD); and
WHEREAS, the Santa Monica Convention and Visitors Bureau and lodging
business owners have drafted a Management District Plan which sets forth the
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proposed boundary of the SMTMD, a service plan and budget, and a proposed means
of governance; and
WHEREAS, on October 23, 2012, a majority of the lodging business owners that
will be subject to an assessment under the SMTMD have presented executed petitions
to the City Council to establish the SMTMD for the purpose of funding activities through
assessments as described and set forth in the Management District Plan, a copy of
which is on file with the City Clerk and presented at this meeting;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The above recitals are true and correct, and the City Council so
finds and determines.
SECTION 2. The City Council finds that the lodging businesses that will pay
more than fifty percent (50 %) of the assessment proposed in the Management District
Plan have signed and submitted petitions in support of the formation of the Santa
Monica Tourism Marketing District (SMTMD). The City Council accepts the petitions as
filed and adopts this Resolution of Intention to establish the SMTMD and to levy an
assessment on all lodging businesses located within the SMTMD boundaries with an
average daily rate of $100 and above, in accordance with the Property and Business
Improvement District Law of 1994.
SECTION 3. The City Council finds that the Management District Plan satisfies
all requirements of Streets and Highways Code Section 36622.
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SECTION 4. The City Council declares its intention to establish the SMTMD and
to levy and collect assessments on all lodging businesses located within the SMTMD
boundaries with an average daily rate of $100 and above, pursuant to the Property and
Business Improvement District Law of 1994.
SECTION 5. The boundaries of the SMTMD shall be the boundaries of the City
of Santa Monica, as shown on the map attached to and incorporated in this Resolution
as Exhibit A.
SECTION 6. The name of the assessment district shall be the Santa Monica
Tourism Marketing District (SMTMD).
SECTION 7. 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
30 consecutive days, nor on stays which are pursuant to contracts or other written
agreements that 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 business's
average daily rate based on previous year's performance. Lodging businesses with an
average daily rate of less than $100 will not be included in the assessment district or
assessed. Assessment rates are:
Average Assessment Per
Laity Rate Room Per Night
$100-$200
$2.00
$200-$300
$3.00
Over $300
$4:00
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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
$
2.00
$ 3.00 -
$
4:00
2
$
2.25
$ 3.25
$
4.25
3
$
2.50
$ 3.50 rr
$
4:50
4
$
2.75
$ 3.75
$
4.75
5
$
3.00
$ 4.00
$
5.00
SECTION 8. The assessments levied for the SMTMD shall be applied toward
sales promotion and marketing programs to market Santa Monica lodging businesses
as tourist, meeting and event destinations, as set forth in the Management District Plan.
Funds remaining at the end of any year may be used in subsequent years in which
SMTMD assessments are levied as long as they are used consistent with the
requirements of this Resolution and the Management District Plan.
SECTION 9. The SMTMD will have a five -year term unless renewed pursuant to
Streets and Highways Code Section 36660.
SECTION 10. Bonds will not be issued.
SECTION 11. The time and place for the public meeting to hear testimony on
establishment of the SMTMD and the levy of assessments are set for November 13,
2012, at 6:30 p.m., or as soon thereafter as the matter may be heard, at the Council
Chambers located at 1685 Main Street, Santa Monica, CA 90401,
SECTION 12. The time and place for the public hearing to establish the SMTMD
and levy assessments are set for December 11, 2012, at 6:30 p.m., or as soon
thereafter as the matter may be heard, at the Council Chambers located at 1685 Main
Street, Santa Monica, CA 90401. The City Clerk is directed to provide written notice to
the lodging businesses subject to assessment of the date and time of the hearing and to
provide that notice as required by Streets and Highways Code Section 36623.
SECTION 13. At the public hearing the testimony of all interested persons for or
against the establishment of the SMTMD may be received. If at the conclusion of the
public hearing, there are of record written protests by the owners of the lodging
businesses within the proposed SMTMD that will pay fifty percent (50 %) or more of the
estimated total assessment of the entire SMTMD, no further proceedings to establish
the SMTMD and levy the proposed assessment against such businesses as contained
in this Resolution of Intention shall occur for a period of one year.
SECTION 14. The complete Management District Plan is on file with the City
Clerk and may be reviewed upon request.
SECTION 15. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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Adopted and approved this 23`d day of October, 2012.
Ric and Bloom, Mayor
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10708 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 23`d day of October, 2012, by the following vote:
AYES: Councilmembers: Holbrook, O'Connor, McKeown, shriver
Mayor Pro Tem Davis, Mayor Bloom
NOES: Councilmembers: None
ABSENT: Councilmembers: O'Day
ATTEST:
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Sarah P. Gorman, City Clerk