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HomeMy WebLinkAboutOrd 16481 2 3 4 5 6 7 8 9 10 11 12 13 14 151 16 17 18 19 20 21 22 23 24 25 26 27 28 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: 2/14/2001 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; 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. 2/14/2001 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 D 24 25 26 27 28 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. 2/14/2001 (b) Assessment. "Assessment" means the levy imposed by this ordinance for the purpose 3 1 2 3 4 5 6'' 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 2/14/2001 (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 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 2/14/2001 5 2 3 4'' 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. 2/14/2001 C� I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 2/14/2001 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 2/14/2001 E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 2/14/2001 D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (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. 2/14/2001 Mateo County pursuant 10 1 2 3. 4 5 6 7 8'', 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 2/14/2001 11 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.