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HomeMy WebLinkAboutTC Res 2018-02-07 (2) RESOLUTION NO. 06-2018 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON TO LEVY AND COLLECT ASSESSMENTS ON LODGING ESTABLISHMENTS WITHIN THE TIBURON TOURISM BUSINESS IMPROVEMENT DISTRICT TO FUND THE APPROVED DISTRICT PROGRAM WHEREAS, the Parking and Business Improvement Area Law of 1989, Section 36500 et seq., authorizes counties to establish parking and business improvement areas for the purpose of promoting tourism; and WHEREAS, the Parking and Business Improvement Area Law of 1989, Section 36500 et seq., authorizes cities to establish parking and business improvement areas for the purpose of promoting tourism; and WHEREAS, in 2007, the Town formed the Tiburon Tourism Business Improvement District ("TTBID"), to levy a one percent (I %) assessment on lodging establishments within the Town's borders; and WHEREAS, in 2010, at the request of the Town's two lodging establishments, the Lodge at Tiburon and the Water's Edge Hotel ("collectively, "Town Hotels"), the Town increased the TTBID assessment to two percent (2%) and WHEREAS, the TTBID Advisory Board ("Advisory Board") approved its annual report on January 10, 2018, which report sets forth the legally required program and budget information ("Annual Report"), which included the TTBID Program and which the Council reviewed and approved on January 17, 2018; and WHEREAS, on January 17, 2018, the Council also adopted Resolution No. 01-2018, ("Resolution of Intention"), declaring its intention to levy the TTBID Assessments, setting a public hearing on February 7, 2018 to consider any protests and directing related actions; and WHEREAS, the Town published notice of the February 7, 2018 public hearing as required by § 36534 of the Streets and Highways Code and further provided written notice to the Town Hotels; WHEREAS, the Town Council conducted the public hearing on the proposed TTBID Program and assessments on February 7, 2018 pursuant to § 36524 of the Streets and Highways Code and provided all interested parties an opportunity to be heard; and WHEREAS, the Town had not received any protests to the proposed TTBID Program and Assessments by the close of the public hearing and, having considered all public testimony, the Town Council found that there was no majority protest that would preclude the Council from Tiburon Town Council Resolution No. 06-2018 02/07/2018 Page 1 of 3 approving the TTBID program and assessments as set forth in the Resolution of Intention; and WHEREAS, the Council finds that the TTBID Program will provide a direct and specific benefit to the payors that is not provided to those not charged and that the assessments will be levied according to benefits accruing to the assess businesses to the maximum extent feasible. The direct and specific benefit to payors will be increased sales of room nights provided through programs designed to directly benefit payors. NOW, THEREFORE, BE IT RESOLVED, that the Town Council of the Town of Tiburon does hereby resolves, determines, and finds as follows: Section 1. The recitals set forth herein are true and correct. Section 2. The Town Council hereby approves the TTBID Program without modification. Section 3. The Town will levy and collect assessments within the TTBID, which is co-extensive with the corporate limits of the Town, as set forth in the Resolution of Intention. The 'Town will use the TTBID funds to finance and administer marketing programs as set forth in the Annual Report, the TTBID Program and the Resolution of Intention. Section 4. The assessment will be levied on all lodging establishments, existing and future, at a rate of 2% of gross room rental revenue. The assessment is proposed to be this percentage for the following reasons: a. An assessment based on percentage is most fair to lodging establishments because it will cost smaller, lower service level and less expensive lodging businesses less money than it will cost larger, perhaps higher service level and higher room rate lodging businesses. b. Benefits received by the assessed lodging businesses are likely to be proportional to their assessment, depending upon programs implemented. c. 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. d. An assessment based on percentage is direct, and easy to understand and calculate. Section 5. New hotels within the boundaries will not be exempt from the levy of assessment pursuant to Section 36531. Section 6. Except where funds are otherwise available, the lodging business Tiburon Town Council Resolution No. 06-2018 02/07/2018 Page 2 of 3 assessment will be levied annually to pay for all improvements and activities within the TTBID specific lodging-related and visitor services. These include, but are not limited to, Web-site construction and maintenance, including assessed hotels, providing visitor information to promote mid-week and off-season overnight lodging; management/alliances/board of directors; research; sales in target markets, general advertising and administration & personnel. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon held on February 7, 2018, by the following vote: AYES: COUNCILMEMBERS: Fraser, Fredericks, Kulik, Thier, Welner NAYS: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: JI ktR, MAYOR T OF TIBURON ATTEST: LEA STEFA I, TOWN CLERK Tiburon Town Council Resolution No. 06-2018 02/07/2018 Page 3 of 3