HomeMy WebLinkAboutOrd 16481
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ORDINANCE No. 1648
ORDINANCE OF THE CITY OF BURLINGAME ESTABLISHING
THE SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT,
THE BASIS FOR AND PROCESS OF LEVY AND COLLECTION OF ASSESSMENTS
FOR THE DISTRICT, AND THE DISTRICT ADVISORY BOARD
The CITY COiTNCIL of the CITY OF BiJRL,INGAME does hereby ordain as follows:
Section 1.
(a) This ordinance is adopted pursuant to the provisions of the Pazking and Business
Improvement Area Law of 1989, as codified in California Streets and Flighways Code sections
36500 and following. On December 18, 2000, the City Council of the City of Burlingame adopted
its Resolution of Intention (Resolution No. 121-00) declaring its intention to form a parking and
business improvement area to be known as the "San Mateo County Tourism Business Improvement
District," outlining a proposed area for the District, providing a basis for levy of an annual
assessment, and requesting the consideration and consent of the County of San Mateo and various
cities in the County to the formation of the District and the levy of assessments within their
jurisdiction pursuant to Streets & Highways Code section 36521.5.
(b) Pursuant to Streets &Highways Code sections 36523 and 36523.5, copies of the
Resolution of Intention and notice pursuant to Government Code section 54954.6(c) were duly
mailed to all hotels that might be assessed pursuant to the proposed ordinance, and the Resolution
of Intention was duly published -in newspapers of general circulation within the County of San
Mateo and each of the interested cities.
(c) The Board of Supervisors ofthe County of San Mateo consented to the formation of the
District within the unincorporated portion of San Mateo County pursuant to Board of Supervisors
Resolution No. 64168.
(d) The foll
limits as follows:
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owing cities consented to the formation ofthe District within their respective city
(i) The City of Belmont pursuant to City Council Resolution No. 8916;
)
The City
of Daly City pursuant to
City Council Resolution No. 01-34;
(iii)
The City
of Foster City pursuant
to City Council Resolution No. 2001-6;
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(iv) The City of Half Moon Bay pursuant to City Council Resolution No. C-03-01;
(v) The City of Millbrae pursuant to City Council Resolution No. 00-163;
(vi) The City of Redwood City pursuant to City Council Resolution No. 14106;
(vii) The City of San Bruno pursuant to City Council Resolution No. 2001-4;
(viii) The City of San Carlos pursuant to City Council Resolution No. 2000-167;
(ix) The City of San Mateo pursuant to City Council Resolution No. 5 (2001); and
(x) The City of South San Francisco pursuant to City Council Resolution No. 156 -
as amended by action of the City Council of the City of South San Francisco on
January 24, 2001.
(e) Pursuant to the Resolution of Intention adopted by the City Council of the City of
Burlingame, the City Council held a public meeting in the Council Chambers at City Hall,
Burlingame, regarding formation ofthe proposed District and assessments pursuant to Government
Code section 54954.6(c) on January 2, 2001. Pursuant to the Resolution of Intention adopted by
the City of Burlingame, the City Council held a public hearing in the Council Chambers at City Hall,
Burlingame, regarding formation of the proposed District and assessments on January 17, 2001, and
continued it to February 5, 2001. Following the hearings, all protests, both written and oral, were
considered and were duly overruled and denied, and the City Council determined that there was
no majority protest within the meaning of Streets & Highways Code section 36523.
Section 2. Purpose. This District is formed as a parking and business improvement area
under the Business and Improvement Area Law of 1989 to provide revenue to defr
ay the costs of
services, activities, and programs promoting tourism in the District, which will benefit hotels in the
District through the promotion of scenic, recreational, cultural, hospitality, and other attractions in
the San Mateo County region, and it is not intended to supplant any other existing source of
revenues that may be directly applied by the individual cities or the County of San Mateo to
promote tourism. The specific services, activities, and programs to be provided are listed in Exhibit
B attached to this ordinance, and the services, activities, and those specific services, activities, and
programs are the only uses to which the funds generated by the assessments to be levied pursuant
to this ordinance shall be put.
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Section 3. Benefits.
(a) The public convenience and necessity mandate the District established by this ordinance.
Tourism is vital to the economy of all of San Mateo County. According to recent studies, the travel
and hospitality industry in the County generates over $3 billion in visitor spending. Spending on
accommodations alone in the County is over $500 million. This does not include spending in hotel
restaurants, stores, and associated services. The hotels in the District as defined below will benefit
from the services, activities, and programs described in Exhibit B to this ordinance to sustain and
enhance the continued outreach for visitors to the County. These efforts will help maintain the
occupancy rates for hotels in the County and increase the revenue per room, even as new hotels and
hotel rooms open for occupancy or the economy slows. Studies show that the hotel industry can
continue to utilize the County's unique location and attractions to build occupancy that is not
dependent on nearby San Francisco or the Silicon Valley.
(b) In recognition of the fact that hotels of different sizes; or hotels offering different levels
of service, or hotels providing different sizes of meeting space, or different combinations of these
factors, receive different degrees of benefit from the services, activities, and programs to be
provided to promote tourism by the District, this ordinance creates different levels of assessments
among hotels, based upon the total number of sleeping rooms, the levels of service, and the amount
of meeting space. Further, the ordinance creates two benefit zones: one along San Francisco Bay
for hotels relatively near San Francisco International Airport and other meeting facilities; and
another along the Pacific Coast and the northernmost part of the County, which is more oriented
toward leisure and recreational tourists. In addition, efforts should be made in the levying of annual
assessments to factor in the prior year's County -wide occupancy rates while balancing the overall
budget needs of the District to accomplish its purposes.
Section 4. Definitions. The following definitions govern the construction of this
ordinance
and resolutions adopted pursuant to this ordinance:
(a) Advisory board. "Advisory board" means the advisory board appointed by the City
Council of the City of Burlingame pursuant to this ordinance.
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(b) Assessment. "Assessment" means the levy imposed by this ordinance for the purpose
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of providing services, activities, and programs promoting tourism in the San Mateo County region.
(c) Board of Supervisors. "Board of supervisors" means the Board of Supervisors of the
County of San Mateo.
(d) District. "District" means the San Mateo County Tourism Business Improvement
District formed by this ordinance in the geographical area designated in Exhibit A to this ordinance.
(e)
Fiscal year.
"Fiscal year" means January 1
to December
31.
(f)
Full service.
"Full service' means a hotel
that offers all
of the
following: an on-site
restaurant, meeting space, room service, bell service, and catering.
(g) Hotel. "Hotel" means any structure, or any portion of any structure, that is rented for
dwelling, lodging, or sleeping purposes on a transient basis, and includes any hotel, motel, inn,
tourist home or house, studio, bed and brealiast, lodging house, rooming house, or other similar
structure or portion thereof.
(h) Limited service. "Limited service" means a hotel that offers meeting space but does not
necessarily have an on-site restaurant, room service, or catering.
(i) Meeting space. "Meeting space" means a room or space dedicated for group and social
meetings, meals, and/or functions.
(j) Operator. "Operator" means the person who is the proprietor of the hotel, whether in
the capacity of owner, lessee, sublessee, mort
gagee in possession, licensee, or any other capacity.
Where the operator performs the operator's functions through a managing agent of any type or
character other than an employee, the managing agent shall also be deemed an operator for purposes
of this ordinance, and shall have the same duties and liabilities as the agent's principal. Compliance
with the provisions of this ordinance by either the principal or the managing agent shall, however,
be.considered to be compliance by both.
(k) Parking and Business Improvement Area Law of 1989. "Parking and Business
Improvement Area Law of 1989" means the provisions of California Streets &Highways Code
sections 36500 to 36551, as amended.
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(l) Participating agency. "Participating agency" means a city government or a county
government that has consented to the formatio
n ofthe District as provided in this resolution within
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the jurisdiction of the city or the county pursuant to Streets &Highways Code section 36521.5.
The participating agencies are the City of Belmont, City of Daly City, City of Foster City, City of
Half Moon Bay, City of Millbrae, City of Redwood City, City of San Bruno, City of San Carlos,
City of San Mateo, the City of South San Francisco, and the County of San Mateo. However, the
City of South San Francisco shall not be a participating agency until January 1, 2002.
(m) San Mateo County Hotel Council. "San Mateo County Hotel Council" means the
California non-profit mutual benefit corporation called San Mateo County Hotel Council, Inc.
(n) San Mafeo County Tourism Business Improvement District. "San Mateo County
Tourism Business Improvement District" means the San Mateo County Tourism Business
Improvement District formed by this ordinance in the geographical area designated in Exhibit A to
this ordinance.
(o) Sleeping room. "Sleeping room" means a room or suite of rooms that is rented on a
transient basis as a unit for occupancy.
(p) ,Standard service. "Standard service" means a hotel without any meeting space, and
generally does not have bell service, room service, on-site restaurant, or catering.
(q) Transient basis. "Transient basis" means the rental of a room or rooms for dwelling,
lodging, or sleeping purposes for a period ofthirty 13 0) consecutive days or less, counting port
ions
of calendar days as whole days.
Section 5. Establishment of District. Aparking and business improvement district known
as the San Mateo County Tourism Business Improvement District is hereby established pursuant
to the Parking and Business Improvement Area Law of 1989. The boundaries of the District and
its benefit zones shall be as set fort
h in Exhibit A attached to this ordinance.
Section 6. Establishment and Basis of Assessments.
(a) All hotels in the District shall pay an annual benefi
t assessment to the District for each
fiscal year as follows:
(1) In Benefit Zone A:
(A) Hotels with full service and more than 20 sleeping rooms: Up to $360 per sleeping room
per year.
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(B) Hotels with limited service and one thousand (1,000) square feet or more of meeting
space and more than 20 sleepingrooms: Up to $180 per sleeping room per year.
(C) Hotels with limited service and meeting space of less than one thousand (1,000) square
feet of meeting space and more than 20 sleeping rooms: Up to $90 per sleeping room per year.
(D) Hotels with standard service and hotels with 20 sleeping rooms or less: Up to $54 per
sleeping room per year.
(2) In Benefit Zone B:
(A) Hotels with full service and more than 20 sleeping rooms: Up to $360 per sleeping room
per year.
(B) Hotels with limited service and one thousand (1,000) square feet or more of meeting
space and more than 20 sleeping rooms: Up to $180 per sleeping room per year.
(C) Hotels with limited service and meeting space ofless than one thousand (1,000) square
feet of meeting space and more than 20 sleeping rooms: Up to $90 per sleeping room per year.
(D) Hotels with standard service and hotels with 20 sleeping rooms or less: Up to $54 per
sleeping room per year.
(b) The initial assessment shall be determined from the number of rooms, the level of
service, and the amount of meeting space as of the
close of the public hearing on the formation of
the District, as well as the benefit zone in which the hotel is located. For subsequent years, the
number of rooms, the level of service, and the amount of meeting space of existing hotels shall be
determined as of September 1 of the year preceding the year for which the assessment is imposed.
For hotels that open for business after the determination date, the number of rooms, the level of
service, and the amount of meeting space shall be determined for their initial assessment at the time
that they open for business.
(c) The number of rooms, level of service, and amount of meeting space determined in the
City Council's annual levy of assessment shall be final
and conclusive, and binding on the hotels to
be assessed.
Section 7. Use of Assessments. All funds derived from the assessments shall be used only
for the services, activities, and programs described in Exhibit B to this ordinance.
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Section 8. Levy of Assessments. Except as to the initial assessment under this ordinance,
the advisory board shall submit its annual report to the City of Burlingame no later than October
15 of each year pursuant to Streets & Highway Code sections 36530 and 36533. The annual report
shall include a listing of hotels subject to the assessment and the number of rooms, level of service,
and meeting space in each hotel for review of the recommended assessments for the coming year.
The report shall also contain a recommendation on the assessment levels of the coming year. The
City of Burlingame will forward copies of the annual report together with a copy of that year's
resolution of intention to each participating agency so that each participating agency can review the
annual report and proposed assessments, services, activities, and programs as each agency deems
appropriate.
Section 9. Imposition of Assessments. The assessments imposed pursuant to this
ordinance are levied solely upon the operators ofthe hotels within the District, and the operator of
each hotel is solely responsible for payment of the assessments when due. The assessments levied
pursuant to this ordinance are not part of the gross receipts or gross revenues of a hotel located in
the City of Burlingame for purposes of calculating sales or use taxes or transient occupancy taxes.
Section 10. Payment and Collection of Assessments.
(a) Each participating agency shall collect the assessments due under this ordinance from
hotels within their jurisdictions on the basis that is most convenient to that agency's fiscal system,
but no less often than semiannually.
(b) Each hotel shall pay the assessment as required by the participating agency in which the
hotel is located.
Section 11. Deficiencies.
(a) When the City of Burlingame determines that an assessment is deficient as to the
payment due, the City of Burli
ngame may determine the amount of the delinquency as calculated
pursuant to this ordinance. After giving notice that a deficiency determination is proposed and an
opportunity to file a response or provide supplemental information is provided, the City may make
one or more deficiency determinations of the amount due for any reporting period based on
information in the possession of the City or any participating agency. When the operation of a hotel
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is discontinued, a deficiency determination may be made at any time thereafter as to the liability
arising out the operation of the hotel.
(b) The City of Burlingame shall give notice of a proposed deficiency determination or the
notice of deficiency determinatiori by mang a copy of the document to the operator of the hotel
at the address of the hotel on file with the participating agency in which the hotel is located. The
giving of notice is complete at the time of deposit in the United States mail with first-class postage
fully prepaid. In lieu of mailing, a notice may be served personally by delivering it to the person
apparently in charge of the hotel at the hotel or to the operator.
(c) The operator of a hotel against which a deficiency determination is made may petition
the City for redetermination within thirty (30) days after the service of the notice of deficiency
determination. If such a petition is not filed with the City Manager within this thirty -day period, the
deficiency determination shall become final.
(d) A petition for redetermination shall be in writing state the specific grounds on which it
is based, and be supported by applicable records and declarations under penalty of perjury that the
information is true and complete. If a petition for redetermination is filed, the City shall reconsider
the deficiency determination and may meet with the petitioner or hold a hearing on the petition. The
City shall issue a written decision on the petition and serve the decision on the petitioner in the same
way that a notice of deficiency determination is served.
(e) If the petitioner is dissatisfied with the decision on the petition
for redetermination, the
petitioner may file an appeal to the City Council within thirt
y (30) days of the service of the
decision. The appeal shall be filed with the City Clerk, be in writing describing what portion of the
decision the petitioner is appealing, and accompanied by an appeal fee of $250. The City Council
will set the matter for public hearing within thirty (30) days of receipt of the appeal. The decision
of the City Council on the appeal shall be final.
Section 12. Delinquencies. If an assessment is not paid at the time set for payment
to
pursuant
this ordinance, the operator shall pay a penalty of five percent (5%) in addition to the
payment one for each thirt
y (30) day period in which the payment is not made. If payment is not
made within one hundred and twenty (120) days ofthe date that payment was initially due pursuant
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to this ordinance, the operator shall pay interest of one percent per month or fraction thereof on the
amount of the payment due, exclusive of penalties, but in addition to any penalties that may be due.
Every penalty imposed and interest as it accrues under the provisions of this section shall become
part of the assessment required to be paid under this ordinance.
Section 13. Remedies. In addition to any other remedies that maybe available to the City
ofBurlingame or the participating agencies, if any amount due to be paid under this ordinance is not
paid, the City ofBurlingame may bring an action in the Superior Court of San Mateo County to
collect the amounts due.
Section 14. Advisory Board.
(a) An advisory board of seventeen (17) members is established to advise the City of
Burlingame on the conduct ofthe District, including the level of assessments to be levied each year,
the services, activities, and programs to be conducted by the District, and the progress of the
District in meeting its purpose and goals. The City Council shall appoint the advisory board from
a list of nominees submitted by the San Mateo Hotel Council. To be eligible to serve on the
advisory board, a person shall be an owner or manager of a hotel or a property occupied by a hotel
or an owner or manager of a company or business located in San Mateo County that is directly
related to tourism in San Mateo County. The board shall consist of persons from the following
geographicalareas:
(1) Four (4) owners or managers of hotels or owners of property
occupied by a hotel in the
City ofBurlingame; and
(2) Two (2) owners or managers of hotels or owners ofproperty occupied by a hotel in the
City of San Mateo; and
(3) Two (2) owners or managers of hotels or owners ofproperty occupied by a hotel in the
City of Millbrae; and
(4) One (1) owner or manager of a hotel or owner ofproperty occupied by a hotel in the
City of Foster City; and
(5) One (1) owner or manager of a hotel or owner ofproperty occupied by a hotel in the
City of Half Moon Bay; and
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(5) One (1) owner or manager of a hotel or owner of property occupied by a hotel in the
City of Half Moon Bay; and
(6) In total, three (3) owners or managers of hotels or owners of property occupied by
hotels in the Cities of Belmont, Daly City, Redwood City, San Bruno, San Carlos, and the
unincorporated area of San Mateo County; and
(7) Four (4) owners or managers of companies or businesses located in San Mateo County
and directly related to tourism in San Mateo County.
(b) On January 1, 2002, the membership on the advisory board shall be increased to
nineteen (19) by the addition of two (2) owners or managers of hotels or owners of property
occupied by a hotel in the City of South San Francisco; and
(c) Terms of membership on the advisory board shall be three (3) years and until their
successors are appointed and qualified. However, the initial members of the advisory board shall
be staggered terms, with five (5) members serving a one-year term, six (6) members serving a two-
year term, and six (6) members serving a three-year term. Initial terms under this section shall be
run from May 1, 2001. The initial length of term for each member shall be chosen by lot at the
first advisory board meeting. As to the two (2) members representing the City of South San
Francisco, one shall serve an initial length of term to May 1, 2003, and the other an initial length
of term to May 1, 2004; the initial length of term for each such South San Francisco member shall
be chosen by lot at the first advisory board meeting in the year 2002.
(d) Vacan
cies on the advisory board shall be filled by appointment by the City Council of
the City of Burlingame upon nomination by the San Mateo County Hotel Council. Vacan
Section 15.
cies
occur upon
resignation of the member or
when the member is
no longer an owner or manager of
a hotel or property
occupied by a hotel or
of a tourist -related
company or business, whichever is
applicable,
in the geographical area from
which the member
was appointed.
Advisory board under the Political Reform Act (California Code of
Regulations, title 2, section 18707.4). The members of the advisory board are appointed to
represent and further the interests of the hotel and tourism industry in San
to this ordinance.
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Mateo County pursuant
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of South San Francisco shall have until September 30, 2001, to determine whether it wishes to
withdraw its consent to be a participating agency under this ordinance. If the City of South San
Francisco does not withdraw its consent by that time, then it shall become a participating agency
and its hotels shall be assessed pursuant to this ordinance, and it shall have representative
membership on the advisory board.
Section 17. This ordinance shall be published as required by law.
` May r
I, ANN T. MiJSSO, City Clerk of the City of Burlingame, do hereby certify that the
foregoing ordinance was introduced at a regular meeting of the City Council held on the 5th day
ofFebruarv, 2001, and adopted thereafter at a regular meeting of the City Council held on the 20"
day of February, 2001, by the following vote:
AYES: COUNCILMEMBERS: COFFEY, GALLIGAN, JANNEY, UMAHONY, SPINELLI
NOES: COUNCILMEMBUD
ABSENT: COUNCILMEMBERS: NONE
D:\wp51\Files\HotelBid\ordinencafmal.ord.wpd
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EXHIBIT A
DESCRIPTION OF BOUNDARIES OF
SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT
DISTRICT IN GENERAL
The San Mateo County Tourism Business Improvement District shall encompass all of the
incorporated and unincorporated areas in the County of San Mateo, but shall specifically exclude
all incorporated areas and any hotels located within the incorporated areas of the city or town
limits of the following cities and towns:
Town of Atherton
City of Brisbane
Town of Colina
City of East Palo Alto
Town of Hillsborough
City of Menlo Park
City of Pacifica
Town of Portola Valley
Town of Woodside
ZONES WITHIN THE DISTRICT
Zone A
Zone A shall encompass all of the area of the District except that area located within Zone B as
described below.
Zone B
Zone B shall encompass:
1) All of the area of the District that is located south of the City of Pacifica city limits and
west of State Highway 35; and
2) All of the area within the City of Daly City an
d within all
unincorporated areas
immediately
adjacent
to,
or surrounded by,
the city limits
of the City of Daly City.
EXHIBIT B
ACTIVITIES, PROGRAMS AND SERVICES TO BE FUNDED BY THE
SAN MATEO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT
1. Increased Generation of Group Leads
a. Additional Sales Staff. Increase the Bureau's sales staff from two full -times sales
representatives to
six (6) or more.
i. One sales
representative to
be located
on the East Coast to represent the
Bureau in
the Washington,
D.C. area;
ii. One sales
representative to
be located
in Sacramento;
iii. One sales
representative to
be located
in Southern California to represent
the Bureau
in the Los Angeles Area;
iV, Three sales representatives
in-house.
2. Marketing Program for Meetings and Tourism
a. Invest in extensive Web advertising, creating links from key travel sites;
b. Host annual receptions in Sacramento;
c. Add a cooperative advertising manager an
d create additional cooperative
advertising pieces;
d. Participate in additional trade shows of interest to member hotel properties;
e. Enhance/update trade show booth decor and marketing materials;
£ Increase memberships in organizations/attendance at meetings with key, potential
target visitors;
g. Enhance advertising in publications/web programs aimed at meeting planners;
h. Create specialty guides/promotional pieces aimed at target market segments (e.g.
golf);
i. Conduct familiarization trips for meeting planners, film/ad/catalogue producers
and travel writers;
j. Use a part-time film commissioner to proactively recruit production crews to the
area;
k. Create additional collateral and marketing materials;
1. Add a part-time publications manager to write specialty pieces and articles for
distribution;
m. Add state -of the art software designed for convention and visitor bureaus;
nI Enhance web site;
3. Program to Extend Stays
a. Create collateral/promotional materials to encourage extended stays;
b. Add a part-time manager of meeting services to create special packages/offers,
marketing plans to encourage extended stays.
4. Consumer Reservations Program/Market to Travel Industry
a. Create an on-line reservations system for travelers;
b. Dedicate one new sales representative's time to the transient market;
C, Develop an alliance with tour operators;
d. Create an awareness of the Bureau on the part of international travelers;
e. Have key brochures translated into German and Korean.