r10722City Council Meeting December 11, 2012 Santa Monica, California
RESOLUTION NUMBER 10722 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA DECLARING RESULTS OF
MAJORITY PROTEST PROCEEDINGS AND ESTABLISHING THE
SANTA MONICA TOURISM MARKETING DISTRICT
WHEREAS, the Property and Business Improvement District 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, upon petition by a weighted majority of the
lodging business owners located within the boundaries of the district; 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, lodging business owners who will pay more than 50% of
the proposed assessment, as weighted according to the amount of the
assessment to be paid by the petitioner, within the proposed boundaries of the
Santa Monica Tourism Marketing District (SMTMD), have petitioned the City
Council to establish the SMTMD; and
WHEREAS, included with the executed petitions was a Management District
Plan summary that describes the proposed assessment to be levied on lodging
businesses within the SMTMD to pay for sales promotion and marketing activities, and
other activities set forth in the Management District Plan; and
WHEREAS, the lodging businesses that will be subject to an assessment under
the SMTMD will be benefited by the activities set forth in the Management District Plan,
a copy of which is on file with the City Clerk; and
WHEREAS, on October 23, 2012, at 1685 Main Street, Santa Monica, CA 90401,
the City Council adopted Resolution No. 10708 (CCS) declaring its intention to establish
the SMTMD and fixing a time and place of a public meeting and a public hearing
thereon and giving notice thereof; and
WHEREAS, the public meeting and public hearing to consider the establishment
of the SMTMD have been properly noticed in accordance with Streets and Highways
Code Section 36623; and
WHEREAS, on November 13, 2012, at 1685 Main Street, Santa Monica, CA
90401, the City Council held a public meeting to hear testimony on the establishment of
the SMTMD and the levy of assessments, and the City Council heard and received
objections and protests, if any, to the proposed establishment of the SMTMD and levy
of assessments; and
WHEREAS, on December 11, 2012, at 1685 Main Street, Santa Monica, CA
90401, the City Council held a public hearing to establish the SMTMD, and the City
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Council heard and received all objections and protests, if any, to the establishment of
the SMTMD and the levy of assessments; and
WHEREAS, at the conclusion of the public hearing, the City Clerk determined
that there was no majority protest. A majority protest is defined as written protests
received from owners of the lodging businesses within the proposed district which would
pay 50% or more of the estimated total assessment of the entire SMTMD. Protests are
weighted based on the assessment proposed to be levied on each lodging business;
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 Santa Monica Tourism Marketing District (SMTMD) is hereby
established for a five -year term.
SECTION 3. 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 4. Assessments levied on lodging businesses pursuant to this
Resolution shall be levied on the basis of benefit. Because the services provided
through the SMTMD are intended to increase room night sales, an assessment based
on room night sales is the best measure of benefit.
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SECTION 5. 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 are not included in the SMTMD or assessed.
Assessment rates are as follows:
Average Assessment Per
Daily 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
S200-S300
Over $300
1
$
2.00
$ 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
SECTION 6. The amount of the assessment, if passed on by the lodging
business to each transient, shall be separately stated from the amount of rent charged
and any other applicable taxes or fees, and each transient shall receive a receipt for
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payment from the business. The assessment shall be described as the "Tourism
Marketing District Assessment" or "TMD Assessment" on the transient's documentation.
SECTION 7. The estimated total assessments for the entire SMTMD is
approximately $3,129,031.49 in year one.
SECTION 8. The assessments levied for the SMTMD shall be applied towards
sales, promotions, and marketing programs to market Santa Monica lodging businesses
as tourist, meeting and event destinations, and other activities as set forth in the
Management District Plan. Any 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 set forth in this Resolution and the Management
District Plan.
SECTION 9. The revenue from the levy of the assessments on lodging
businesses within the SMTMD may not be used to provide for activities or
improvements outside the SMTMD or for any purpose other than those specified in
Resolution No. 10708 (CCS), the Management District Plan, and this Resolution.
SECTION 10. The activities set forth in the Management District Plan will be
funded by the levy of an assessment on lodging businesses within the SMTMD as
described in the Management District Plan that is on file with the City Clerk.
SECTION 11. The SMTMD assessments will be collected at the same time and
in the same manner as are transient occupancy taxes, and in accordance with Streets
and Highways Code Section 36631.
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SECTION 12. Bonds will not be issued to fund the SMTMD.
SECTION 13. The Santa Monica Convention and Visitors Bureau shall be the
Owners Association pursuant to Streets and Highways Code Section 36614.5.
SECTION 14. The Santa Monica Convention and Visitors Bureau, pursuant to
Streets and Highways Code Section 36650, 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 activities described in the report. The first report shall
be due after the first year of operation of the SMTMD.
SECTION 15. The SMTMD established pursuant to this Resolution will be
subject to any amendments to the Property and Business Improvement District Law of
1994, Streets and Highways Code Section 36600 et seq.
SECTION 16. The City Clerk, or his or her designee, is directed to take all
necessary actions to complete the establishment of the SMTMD and levy the
assessments.
SECTION 17. 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:
MOUTR
City
EXHIBIT A: Map of SMTMD
a
EXHIBIT A
SANTA MONICA TOURISM MARKETING DISTRICT MAP
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City of
Santamonica
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Adopted and approved this 11th day of December, 2012.
Pam O'Connor, Mayor
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10722 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 11th day of December, 2012, by the following vote:
AYES: Councilmembers: Davis, Holbrook, McKeown, Vazquez, Winterer
Mayor Pro Tern O'Day, Mayor O'Connor
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST:
Sarah P. Gorman, City Clerk