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HomeMy WebLinkAboutCity Council - 2014-72 RESOLUTION NO. 2014 - 72 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS AND ESTABLISHING THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and Highways Code §36600 et. seq.) as well as the Huntington Beach Charter authorizes the City to establish business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and Lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the Huntington Beach Tourism Business Improvement District ("HBTBID") have petitioned the City Council to establish the HBTBID; and Included with the petitions was a Management District Plan summary that describes the proposed assessment to be levied on lodging businesses within the HBTBID that will be used to pay for sales promotion and marketing activities and other improvements and activities set forth in a Management District Plan; and The assessed lodging businesses within the HBTBID will be specifically benefited by the activities and improvements described in the Management District Plan; and On July 21, 2014 at 6:00 PM at 2000 Main Street, Huntington Beach, CA 92648, the City Council adopted a Resolution of Intention, A Resolution of the City of Huntington Beach Declaring its Intention to Establish the Huntington Beach Tourism Business Improvement District (HBTBID) and Fixing the Time and Place of a Public Meeting and a Public Hearing Thereon and Giving Notice Thereof Resolution No. 2014-43; and The public meeting and public hearing to consider the establishment of the HBTBID have been properly noticed in accordance with Streets and Highways Code §36623; and On August 18, 2014 at 6:00 PM at 2000 Main Street, Huntington Beach, CA 92648, the City Council held a public meeting regarding the establishment of the HBTBID, and the City Council heard and received objections and protests, if any, to the establishment of the HBTBID and the levy of the proposed assessment; and On September 15, 2014 at 6:00 PM at 2000 Main Street, Huntington Beach, CA 92648, the City Council held a public hearing regarding the establishment of the HBTBID, and the City Council heard and received all objections and protests, if any, to the establishment of the HBTBID and the levy of the proposed assessment; and r 14-4313/112515 Resolution No. 2014-72 The City Clerk has determined that there was no majority protest. A majority protest is defined as written protests received from owners of businesses in the proposed district which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: 1. The recitals set forth herein are adopted by the City Council as findings and they are true and correct. 2. The Huntington Beach Tourism Business Improvement District is hereby established for a term not to exceed five (5) years, beginning October 1, 2014 through September 30, 2019. At the end of five years, the District may expire or be renewed pursuant to Streets and Highways Code section 36660. 3. The activities to be provided to benefit businesses in the district 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 district; to provide activities or improvements outside the HBTBID; for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, and the Management District Plan. 4. The activities funded by the assessment will provide a specific benefit to assessed businesses within the HBTBID that is not provided to those not paying the assessment. 5. 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 City of providing the benefit or granting the privilege. 6. The assessment is a charge imposed for a specific City 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 City of providing the service or product. 7. Assessments are levied solely upon business located within the district, and the 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, that portion shall be specifically called out and identified for the transient in any and all communications from the business owner as the HBTBID Assessment. 8. The assessments shall be used for sales, promotions and marketing programs to market Huntington Beach lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the Management District Plan. 9. Assessments levied on lodging businesses pursuant to this resolution shall be levied on the basis of benefit to the respective business. Because the services provided are intended to increase room rental revenue, the assessment will be based on room rental revenue. Room night revenue is an appropriate measure of the proportionate benefit to each business because it reflects the degree of benefit each business will receive relative to the District's 14-4313/112515 Resolution No. 2014-72 services. For instance, a smaller business with fewer rooms and a lower room rate will benefit from the programs, but will experience a smaller increase in the actual dollar amount of revenue than a larger business with a higher room rate. 10. The assessments for the District will total approximately $2,400,000 in year one. 11. Bonds shall not be issued to fund the HBTBID. 12. The HBTBID shall include all lodging business located within the boundaries of the city of Huntington Beach. A boundary map is attached hereto as Exhibit A and incorporated herein by reference. 13. Any funds remaining at the end of any year may be carried forward and used in subsequent years in which the HBTBID assessment is levied. Any carryover funds must be used to fund activities and improvements as set forth in this resolution, the management district plan as exist or as amended. 14. The assessments will be collected at the same time and a similar manner as the City collects its transient occupancy taxes. 15. It is the intent of the City that Visit Huntington Beach be the Owners' Association as described in state law upon the execution of a contract to administer the funds and implement the activities and improvements specified herein and in the Management District Plan. 16. As part of its statutory and contractual duties, Visit Huntington Beach, will 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 district and shall be filed with the Clerk on or before July 15of 2015 and each year thereafter. In the event the report is not timely filed or does not provide information in accordance with the in the 1994 Law, the Management District Plan, the Resolution of Intention, this Resolution and the contract between the City and the Owners' Association, the City may designate another non profit or the City to be the Owners' Association upon 60 days written notice to the Owners' Association and an opportunity to remedy any deficiencies in the report. 17. The HBTBID established pursuant to this resolution will be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.). 18. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the establishment of the HBTBID. 19. City Council, pursuant to its charter authority, may take any actions for which procedures do not exist in State Law, or not specifically preempted by State law with regard to this Business Improvement District including modifying this resolution, the Management District 14-4313/112515 Resolution NO. 2014-72 Plan or any portion thereof. City shall follow all petition, notice, and hearing requirements set forth by State Law related to modification. 20. The Management District Plan on file with the City Clerk dated September 8, 2014 is hereby approved. 21. This Resolution shall take effect immediately upon its adoption by the City Council. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on September 15 , 2014. ay,1 APPROVED AS TO FORM: City Attorney REVIEWED AND APPROVED: INITIATED AND APPROVED: City gXadfor Deputy DirectoOlEcohomic Development 14-4313/112515 Resolution No. 2014-72 Exhibit A Boundary Map GARDE GROVEFREEW GARDEN ROVE FREEW Y CITY OF HUNTINGTON BEACH 0 Q 0 m ABC v ' C' w C' m 0,9 0/X ,9y 144313/112515 Res. No. 2014-72 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on September 15, 2014 by the following vote: AYES: Katapodis, Hardy, Shaw, Harper, Boardman, Sullivan, Carchio NOES: None ABSENT: None ABSTAIN: None n City Cork and ex-officio erk of the City Council of the City of Huntington Beach, California