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r-10987Attachment C City Council Meeting: August 23, 2016 Santa Monica, California RESOLUTION NUMBER ocl C6_1- (CCS) City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA DECLARING ITS INTENTION TO RENEW THE SANiA MONICA TOURISM MARKETING DISTRICT (SM IMD) AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEAVING 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 2.33.020 authorizes the City Council to elect to use the procedures set forth in Streets and Highways Code Section 36600 et seq. in forming and renewing an assessment district in the City; and WHEREAS, upon petition by a weighted majority of lodging businesses located within the boundaries of the assessment district, and following a public hearing, on December 11, 2012, the City Council adopted Resolution No. 10722 (CCS) establishing the Santa Monica Tourism Marketing District (the "SMI MD"); and WHEREAS, the SM IMD was established for a five-year term, from January 1, 2013, through December 31, 2017; and 1 WHEREAS, Santa Monica Travel And Tourism (SM ii ), lodging business owners, members of the business community, and representatives from the City of Santa Monica have met to consider rene+Jval of the SMTMD; and UVHEREAS, the Santa Monica Convention and Visitors Bureau and lodging business owners have drafted a Management District: Flan which sets forth the proposed boundaries of the SMTMD, a service plan and budged., and a proposed means of governance; and WHEREAS, on August 23, 2016, 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 renew the SMTMD for'the purpose of continuing to fund 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 50% of *the assessment proposed in the Management District Man have signed and submitted petitions in support of the renewal of the Santa Monica Tourism Marketing District (SMTMD). The City Council accepts the petitions as filed and adopts this Resolution of Intention to renew the SMTMD and to levy an assessment on all lodging 2 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. SECTION 4. The City Council declares its intention 'to renew the SMTMD and to levy and collect assessments on all lodging businesses located within the SNUMD boundaries with an average daily rate of $100 and above, pursuam 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: 3 Average Assessment Per Daily Rate Room Per Alight 100-$200 $3.25 200-$300 $4.25 Over $300 $5.2.5 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 2016 3.25 4.25 5.25 2016-19 3.50 4.50 5.50 2019-20 3.75 4.75 5.75 2020-21 4.00 5.00 6.00 2021-22 4.25 5.25 6.25 2022-23 4.50 5.50 6.50 2023-24 4.75 5.75 6.75 2024-25 5.00 6.00 7.00 2025-26 5.25 6.25 7.25 2026-27 5.50 6.50 7.50 ihe initial "year' is January 1, 2018, through June 30, 2018 SECTION 6. The assess) agents levied for'the SMTM© 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 Flan. Funds remaining at the end of any year may be used in subsequent years in which SM T MO assessments are levied as long as they are used consistent with the requirements of this Resolution and the Management District Flan. SECTION 9. The SMTNI® will have a nine and one-half year term unless renewed pursuant to Streets and Highways Code Section 36660. 4 SECTION 10. Bonds will not be issued. SECTION 11. Ihe'time and place for the public meeting to hear testimony on renewal of the SMTMD and the levy of assessments are sector October 25, 2010, a+: 6:30 p.m., or as soon thereafter as the matter may be heard, at the Council Chambers located at 1635 Main Street, Santa Monica, CA 90401. SECTION '12. The tirne and place for the public hearing to renernJ the SMT11110 and levy assessments are set for Novernber U, 2016 al 6:30 p.rn., or as soon thereafter as the matter may be heard, at the Council Chambers located at 1635 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 renewal of the SMTM® 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 SMT MMS that will pay 50% or more of the estimated total assessment of the entire SM T M®, no further proceedings to renew the SM iMID and levy the proposed assessment against such businesses as contained in this Resolution of Intention shall occur for a period of one year. 5 SECTION 14. The complete Management Dis'trici flan is on filewith the City Cleric and may be reviewed upon request. SECTION 16. The City Cleric shall certHy'to (he adop'Jon of this Resoluton, and i:hencefo ch and 'thereaiier'the same shall by in Full'Ecrce and e'iieci:. APPROVED AS TO FORM: MARS IIA .JO S MC U e al City At orney E?CI IBII t1: Map of SMT Mid 6 EXHIBIT A SANTA MONICA TOURISM MARKETING DISTRICT MAP City of i Santa monlea Faif 1 o a< oo r If if If lf 1 if if if j Biuif If 0 Adopted and approved this 23rd day of August, 2016. I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Resolution No, 10987 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 23rd day of August, 2016, by the following vote: AYES: Councilmembers McKeown, Davis, hlimmelrich, O'Day, O'Connor, Mayor Pro Tem Winterer, Mayor Vazquez NOES: None ABSENT: None ATTEST: o`P "ti , A a(kdo iI&Av-0) Denise Anderson -Warren, City Clerk