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HomeMy WebLinkAboutOrd 2025 CITY OF BURLINGAME ORDINANCE NO. 2025 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AMENDING AND RESTATING CHAPTER 6.55, "SAN FRANCISCO PENINSULA TOURISM MARKETING DISTRICT," OF TITLE 6 OF THE BURLINGAME CITY CODE MODIFYING THE SAN FRANCISCO PENINSULA TOURISM MARKETING DISTRICT; CEQA DETERMINATION: EXEMPT PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15378 AND 15061(b)(3) WHEREAS, in 2001, the San Mateo County Tourism Business Improvement District (SMCTBID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (Streets & Highways Code section 36500 et. seq.) (89 Law) by Ordinance No. 1648; and WHEREAS, the City modernized the SMCTBID by forming a new district, the San Francisco Peninsula Tourism Marketing District (“SFPTMD”) in 2023 pursuant to the Property and Business Improvement District Law of 1994 by Resolution No. 120-2023 and by adopting Ordinance No. 2018, and adopted the Management District Plan dated August 14, 2023; and WHEREAS, as part of the formation of the SFPTMD, the City Council adopted a District Management Plan (Plan) which describes the boundaries of the District, and the current Plan does not include the City of Foster City; and WHEREAS, the SFPTMD Owners’ Association, the San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Francisco Peninsula (SFP), has requested modification to the Plan to include the City of Foster City within the boundaries of the SFPTMD; and WHEREAS, the City Council of the City of Foster City granted consent to the City of Burlingame to include the City of Foster City in the SFPTMD through the adoption of Resolution No. 2023-94 on September 18, 2023; and WHEREAS, on January 16, 2024, at 7:00 PM at the City Hall, 501 Primrose Road, Burlingame, CA 94010, the Council adopted a Resolution of Intention, to modify the SFPTMD Plan, Resolution No. 002- 2024; and WHEREAS, the public meeting and public hearing to consider the modification of the SFPTMD have been properly noticed in accordance with Streets and Highways Code 36623; and WHEREAS, on February 5, 2024, at 7:00 PM at the City Hall, 501 Primrose Road, Burlingame, CA 94010, the Council held a public meeting regarding the modification of the SFPTMD, and the Council heard and received objections and protests, if any, to the modification of the SFPTMD Plan; and WHEREAS, pursuant to the Taxpayer Protection and Government Accountability Act (TPGAA), an initiative certified eligible for qualification for the November 5, 2024, general election ballot, the proposed assessment is an exempt charge as the SFPTMD is a tourism marketing district formed under the provisions of the Property and Business Improvement District Law of 1994, as set forth in the Streets and Highways Code 36600, et seq.; and WHEREAS, the amount of the proposed assessment for the entire SFPTMD will total approximately $10,432,625 in the first year. Pursuant to the TPGAA, the City has found the proposed assessment amount is reasonable given the scope of services to be provided and shall not exceed the actual cost of providing the SFPTMD services to the payors; DocuSign Envelope ID: DFC5E577-9444-4CA4-91BE-18D3099D0CA0 WHEREAS, adoption of this Ordinance does not diminish the legal effect of the adoption of the Resolution of Modification; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Amending and Restating Chapter. 6.55, "San Francisco Peninsula Tourism Marketing District," of Title 6 of the Burlingame Municipal Code. Chapter 6.55, "San Francisco Peninsula Tourism Marketing District," of Title 6 of the Burlingame Municipal Code is hereby amended and restated in its entirety to read as follows: 6.55.010. Establishment. The City of Burlingame created the San Francisco Peninsula Tourism Marketing District (SFPTMD), for a five (5) year life, beginning January 1, 2024, or as soon as possible thereafter, and end five (5) years from its start date, under the provisions of the Property and Business Improvement District Law of 1994, as set forth in the Streets and Highways Code of the state, Section 36600 et seq. 6.55.020. Management District Plan. The Management District Plan (Plan) dated January 3, 2024 reflecting the addition of Foster City is hereby adopted and approved. 6. 55.030. Activities and Improvements; Findings. The activities to be provided to benefit lodging businesses in the SFPTMD will be funded by the levy of the assessment. The revenue from the assessment levy shall not be used: to provide activities that directly benefit businesses outside the SFPTMD; to provide activities or improvements outside the SFPTMD; or for any purpose other than the purposes specified in this Ordinance, the Resolution of Intention, the Resolution of Formation, the Resolution of Modification, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the SFPTMD boundaries to create a specific benefit to the assessed lodging businesses may be provided, but shall be limited to marketing or signage pointing to the SFPTMD. 1 . The City Council finds as follows: a. The activities funded by the assessment will provide a specific benefit to assessed lodging businesses within the SFPTMD that is not provided to those not paying the assessment. b. The assessment is a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege. c. The assessment is a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product. d. Assessments imposed pursuant to the SFPTMD are levied solely upon the assessed lodging business, and the lodging business owner is solely responsible for payment of the assessment when due. If the owner chooses to collect any portion of the assessment from a transient or customer, that portion shall be specifically called out and identified for the transient or customer in any and all communications from the business owner as the "SFPTMD Assessment" or "Tourism Assessment" as specified in the Plan. DocuSign Envelope ID: DFC5E577-9444-4CA4-91BE-18D3099D0CA0 2. The assessments levied for the SFPTMD shall be applied toward sales and marketing programs, and other improvements and activities as set forth in the Plan. 3. Assessments levied on lodging businesses pursuant to this Ordinance shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on gross short term sleeping room rental revenue is the best measure of benefit. 6.55.040. Reserved. 6.55.050. Bonds. Bonds shall not be issued to fund the SFPTMD. 6.55.060. Boundaries. The established SFPTMD includes all lodging businesses, existing and in the future, located within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County, as described in the Plan. 6.55.070. Assessments. The annual assessment rate is one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD's boundaries. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews' performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. The assessments shall be used for the purposes set forth herein and any funds remaining at the end of any year may be used in subsequent years in which the SFPTMD assessment is levied as long as they are used consistent with the requirements set forth herein. 6.55.080. Collections. The City of Burlingame shall be responsible for collecting the assessments on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SFPTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business. 6.55.090. Owners' Association. The Council through adoption of this Ordinance and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners' Association of the SFPTMD as defined in Streets and Highways Code §36612. The City Council has determined that SFP shall be the SFPTMD Owners' Association. Pursuant to the Plan, SFP shall create a SFPTMD Committee tasked with determining how SFPTMD funds are spent, within the designated programs in the Plan, subject to final approval by the SFP Board. The SFPTMD Committee shall include lodging business owners or representatives paying the SFPTMD assessment. DocuSign Envelope ID: DFC5E577-9444-4CA4-91BE-18D3099D0CA0 Passage of this Ordinance authorizes the City Council to contract with SFP to administer the SFPTMD. 6.55.100. Annual Report. SFP, pursuant to Streets and Highways Code §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 improvement and activities described in the report. The first report shall be due after the first year of operation of the SFPTMD. 6.55.110. Amendments to Enabling Legislation. The SFPTMD formed pursuant to this Ordinance shall be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.). Section 2. Severability. If any section, subsection, sentence, clause or phrase or word of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The Council of the City of Burlingame declares that it would have passed and adopted this Ordinance and each and all provisions irrespective of the fact that any one or more of said provisions may be declared invalid or unconstitutional without regard to any such decision or preemptive legislation. Section 3. CEQA Determination. The City Council finds and determines this Ordinance is not a project within the meaning of section 15378 of the CEQA Guidelines because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061 (b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment. Section 4. Effective Date. This Ordinance of the City of Burlingame shall be effective thirty (30) days after its passage, this Ordinance or a summary thereof, as provided in Government Code Section 36933, shall be published at least once in a newspaper of general circulation published and circulated in the City of Burlingame, along with the names of the Council voting for and against its passage. Section 5. Publication. The City Clerk is directed to publish this Ordinance in a manner as required by law. Section 6. Codification. Section 1 of this Ordinance shall be codified in the Burlingame Municipal Code. Sections 2, 3, 4, 5, and 6 shall not be so codified. DocuSign Envelope ID: DFC5E577-9444-4CA4-91BE-18D3099D0CA0 INTRODUCED by the Council of the City of Burlingame on the 5th of February, 2024, and PASSED and APPROVED on the 4th of March, 2024 by the following roll call vote: AYES: COUNCIL MEMBERS: BEACH, BROWNRIGG, COLSON, ORTIZ, STEVENSON NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE ABSTAINING: COUNCIL MEMBERS: NONE SO ORDERED: ATTEST: _________________________________ _______________________________ Meaghan Hassel-Shearer, CITY CLERK Donna Colson, MAYOR DocuSign Envelope ID: DFC5E577-9444-4CA4-91BE-18D3099D0CA0