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HomeMy WebLinkAboutTC Ord 2013-08-07ORDINANCE NO. 546 N.S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON AMENDING CHAPTER 7A OF THE TOWN MUNICIPAL CODE, REGARDING THE TIBURON TOURISM BUSINESS IMPROVEMENT DISTRICT (TTBID) WHEREAS, on August 15, 2007, the Town Council of the Town of Tiburon held a public hearing on the formation of the Parking and Business Improvement Area known as the Tiburon Tourism Business Improvement District ( "TTBID ") to levy a benefit assessment on lodging establislunents with the TTBID ("Beneficiaries "), all as set forth in Resolution No. 26- 2007 ( "Resolution of Intention ") adopted June 6, 2007; WHEREAS, the Town Council found that there was no majority protest to the TTBID proceedings and, on September 5, 2007, the Town Council adopted Chapter 7A of the Municipal Code ("Ordinance "), thereby forming the TTBID as set forth in the Resolution of Intention; and WHEREAS, the Town Council adopted Ordinance No 498, which amended the Ordinance, on April 6, 2011, after holding a noticed public hearing and finding no majority protest; and WHEREAS, beginning in 2012, the Beneficiaries requested Town officials to redirect the TTBID proceeds to create a locally- focused program, in response to which, the Town severed its contractual relationship with MCVB; and WHEREAS, the Town Council has determined to use TTBID assessments on a local program developed under the direction of the TTBID Advisory Board and subject to annual review by the Town Council; and WHEREAS, the assessments levied on businesses pursuant to this Ordinance shall, to the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses within the TTBID; WHEREAS, the Town Council held a duly noticed public hearing on the program and amendments to Chapter 7A. NOW THEREFORE, THE COUNCIL OF THE TOWN OF TIBURON HEREBY ORDAINS AS FOLLOWS: SECTION 1. Chapter 7A of Title II of the Tiburon Municipal Code is hereby amended to read as follows: Section 7A -1 Purpose. The purpose of this chapter is to establish the Tiburon Tourism Business Improvement District. Page 1 of 3 Section 7A -2 Establishment of the District. Pursuant to the Act, a business improvement district area is designated as the "Tiburon Tourism Business Improvement District" (TTBID) is hereby created and established. The TTBID's boundaries shall be the Town's incorporated limits. Section 7A -3 Amendments. All lodging establishments within the boundaries of the district established by this Ordinance shall be subject to any amendments of the Parking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Sections 36500 through 35551, inclusive. Section 7A -4 Assessment. The assessment is proposed to be levied on all lodging establishments, existing and future, within the TTBID based upon 2% of gross room rental revenue. The TTBID projected annual assessment revenues in year one total approximately $80,000. An assessment based on percentage will result in revenues that rise and fall in reflection of greater and lesser business in an overall up or down tourism market and world economy. Section 7A -5 Protests of Fonnation. All protests, both written and oral, are overruled and denied and the Town Council finds that there is not a majority protest within the meaning of Section 36523 of the Act. Section 7A -6 Annual Review of Assessments. All of the assessments imposed pursuant to this Ordinance shall be reviewed by the Council annually, based upon the annual reports prepared by the Advisory Board appointed pursuant to Sections 36530 and 36533 of the California Streets and Highways Code. Section 7A -7 Use of Assessments. No portion of the revenues from the assessments within the district shall be used to provide improvements outside of the district for any purpose other than for the purposes of the expenses, services, activities and programs specified in the Resolution of Intention to form the district, or in successor resolutions adopted by the Town Council pursuant to Sections 36534 and 36535 of the California Streets and Highways Code. Expenses services, activities and programs paid for with the assessment revenue shall provide a direct and specific benefit to the payors that is not provided to those not charged. The direct and specific benefit to payors will be increased sales of room nights provided through programs designed to directly benefit payors. To generate additional room night sales, payors will be featured on TTBID - funded websites and mobile applications, provided sales leads by TTBID funded FAM tours sales missions, featured in TTBID - funded collateral materials, including brochures and featured in other TTBID - funded programs specifically designed to increase room night sales. Those not charged shall not be included in any of these activities nor shall they receive the benefit of additional room nights. Notwithstanding the foregoing, the Town may retain up to 1 % of the annual revenues from the assessments to recoup the Town's administrative costs. Section 7A -8 Imposition of Assessment. The assessment imposed by this Ordinance is levied upon the lodging establishments within the district, and the operator of each lodging establishinent shall be solely responsible for paying all assessments when due. Notwithstanding the foregoing, in the event that the operator of a lodging establishment elects to pass on some or all of the assessment to customers of the lodging establishment, the operator of the establishment shall separately identify or itemize the assessment on any document provided to a customer. Assessments levied on the operators of lodging establishments pursuant to this Ordinance and passed on to customers are not part of a lodging establishment's gross receipts or gross revenues for any purpose, including the calculation of sales or use tax, transient occupancy tax, or income Pave 2 of 3 pursuant to any lease. However, assessments that are passed on to customers shall be included in gross receipts for purposes of income and franchise taxes. SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this chapter is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this chapter. The Town Council declares that it would have passed this chapter and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more section, sentences, clauses or phrases be declared invalid. SECTION 3. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days after the date of passage and before the expiration of fifteen (15) days after its passage a copy of the ordinance shall be published, with the names of the members voting for and against it, at least once in a newspaper of general circulation in the Town of Tiburon. THE FOREGOING ORDINANCE was introduced at a regular meeting of the Tiburon Town Council on the 17th day of July, 201' ), and was adopted at a regular meeting of the Tiburon Town Council on August 7, 2013, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS Fraser, Fredericks, Doyle, O'Donnell None Slavitz &Zu*�4-a� EMMETT O'DO ELL, MAYOR TOWN OF TIBURON ATTEST: D5M CRANE IAC I, TO CLERK Page 3 of 3