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HomeMy WebLinkAboutRequest for Approval to Establish a Payment Deferral Program }� d -b City of Huntington Beach v File #: 20-1593 MEETING DATE: 5/4/2020 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Dahle Bulosan, Chief Financial Officer Subject: Request for approval to establish a Payment Deferral Program for Tourism Business Improvement District (TBID) assessments collected by the City in Response to COVID-19 - Resolution No. 2020-27 Statement of Issue: In response to the economic effects of the COVID-19 pandemic, staff is requesting approval to establish a payment deferral program for Tourism Business Improvement District (TBID) assessments covering the period of March 1, 2020, through June 30, 2020. Pursuant to the proposed program parameters, given the uncertain nature of the COVID-19 situation, the payment deferral period could be extended through September 30, 2020, unless changes are directed by the City Council. Financial Impact: Given the design of the proposed program, TBID revenues due to the City will still need to be paid in full by June 30, 2021. Of note, TBID revenues are passed through the City to Visit Huntington Beach (VisitHB). However, given the current fiscal challenges presented by the COVID-19 situation, the deferral program has been developed to provide support in a manner that does not relieve the obligation of hotels and motels to pay their requisite assessments. Recommended Action: Adopt Resolution 2020-27, "A Resolution of the City Council of the City of Huntington Beach Establishing a City Policy Regarding the Deferral of Huntington Beach Tourism Business Improvement District Assessment in Response to COVID-19," related to the establishment of a TBID payment deferral program, which has been approved by the board of VisitHB. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: On March 16, 2020, the Governor ordered the closure of all non-essential businesses in response to City of Huntington Beach Page 1 of 3 Printed on 4/30/2020 powered9q LegistarTM File #: 20-1593 MEETING DATE: 5/4/2020 the COVID-19 pandemic. The COVID-19 outbreak has caused tremendous impacts to the global and local economy. Furthermore, the Governor's "Stay at Home" order and travel restrictions have caused a devastating impact on the travel industry. Consequently, the City has had an unprecedented drop in the occupancies of its 24 hotels and motels. Some hotels have temporarily closed and furloughed their employees. It is estimated that the current occupancy rate of the hotels could be as low as 4% and may decrease even further in the coming months. In order to give relief to Huntington Beach hotels and motels, staff recommends that City Council approve a policy to defer payment of TBID assessments, in response to COVID-19, until June 30, 2021, for assessments charged and/or collected from the March 1 - June 30, 2020 period. The proposed action does not relieve the obligation of the hotels and motels to pay the assessments. On April 28, 2020, the full VisitHB board of directors unanimously passed a motion regarding deferment of TBID payments. The board agreed that: (a) HBTBID payments from HB hoteliers to the City of Huntington Beach are deferred for six months beginning with March 2020 through August 2020; (b) A repayment schedule will be worked out between the City of Huntington Beach specific to each hotel; (c) Payment in full will be made no later June 30, 2021; (d) TBID payments can be made at the discretion of each hotelier; and (e) the City of Huntington Beach will proceed to defer TBID payments for this six month period by the TBID action and upon approval by resolution of the City Council. Resolution No. 2018-84 outlines the current TBID assessment plan. Under the deferral program, the City will provide a no-interest repayment arrangement option for a period not to extend past June 30, 2021. The deferral of TBID assessments was approved by VisitHB at the Special Board of Directors Meeting held on April 28, 2020, as described above. Hotels and motels will still be required to submit monthly reports to the City of the taxes and assessments collected, as required by the City's Municipal Code 3.28.090 Transient Occupancy Tax. This deferral and option for payment plans will give temporary relief to our valued businesses during these difficult economic times. Upon additional direction of the City Council, the City Manager may extend this policy, if the COVID- 19 pandemic or its effects go past June 30, 2020. However, in no event will the deferral extend beyond assessments related to September 30, 2020. These timelines are also subject to change based on City Council direction. TBID assessments due to the City after July 31, 2020, or the extended date, will have the option to be paid monthly or as a lump sum. Environmental Status: Not applicable. Strategic Plan Goal: City of Huntington Beach Page 2 of 3 Printed on 4/30/2020 powerecQDh LegistarT'1 File #: 20-1593 MEETING DATE: 5/4/2020 Enhance and maintain high quality City services Improve Quality of Life Attachment(s): 1. Resolution No. 2020-27 related to the establishment of a TBID payment deferral program 2. Letter from Visit Huntington Beach - VisitH13 Board Approval of TBID deferral 3. Municipal Code 3.28 Transient Occupancy Tax 4. Resolution No. 2018-84 Huntington Beach Tourism Business Improvement District City of Huntington Beach Page 3 of 3 Printed on 4/30/2020 powered%y LegistarTM ATTAC H M E N T # 1 RESOLUTION NO. 2020-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING CITY POLICY REGARDING THE DEFERRAL OF HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT ASSESSMENT IN RESPONSE TO COVID-19 WHEREAS, the Parking and Business Improvement Area Law of 1994, codified at Streets and Highways Code §36600 et seq. (the "Act") authorizes cities to establish property and business improvement areas for the purpose of imposing benefit assessments on property and businesses for certain purposes; and The Huntington Beach Tourism Business Improvement District (HBTBID) was established for a five (5)year term, beginning October 1, 2014 through September 30, 2019. And subsequently renewed renewed for a nine (9) and five (5) months year term, beginning February 1, 2019 through June 30, 2028. COVID-19 pandemic has cause tremendous negative impacts to the global and local economies. Many of the Huntington Beach businesses experienced significant losses of income as a result. The steep and sudden drop in revenues has made it extremely difficult for businesses to keep up with ongoing costs. Many businesses have furloughed and/or laid off employees and in some cases are at risk of going out of business. Hotels and motels have been particularly harmed by the lack of travel and tourism created by COVID-19. This deferral of assessments will give temporary relief to our valued hotels and motels during these difficult economic times. The deferral of HBTBID assessments is contingent upon written authorization and approval by the HBTBID. In response to COVID-19, the date upon which the assessments are due to the City will be temporarily extended until July 31, 2020 for assessments charged and/or collected from March 1 to June 30, 2020. This will protect the health, safety and welfare of the citizens of Huntington Beach by allowing downtown Huntington Beach businesses some temporary financial security. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. The City Council of the City of Huntington Beach adopts the following policy regarding the payment of assessment by hotels and motels within the Huntington Beach Tourism Business Improvement District: In the spirit of the Governor's Order N-28-20, the City will extend the time to pay assessment on hotels and motels within the HBTBID area until July 31, 2020,because of the hardships caused by the COVID-19 pandemic. City Council delegates to the City Manager the authority to provide a program for the repayment assessments during this time period. City RESOLUTION NO. 2020-27 Council also delegates to the City Manager the authority to extend the deferral period past July 31, 2020. In no event will the deferral extend beyond September 30, 2020. In any case,the City will provide a no-interest repayment arrangement option for a period not to extend past June 30, 2021. SECTION 2. If any action, subsection, sentence, clause or phrase of this Resolution shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Resolution, the, or other attachments thereto or fees levied by this Resolution. SECTION 3. This Resolution shall take effect immediately and apply retroactively to March 16, 2020. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 4th day of May , 2020. yor R�kTRWE AND OWED: INITIATED AND APPROVED: City Manager Chief Financial Officer APPR V D AS TO FORM: �t ity Attorney 2 20-8607/228493 Res. No. 2020-27 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, 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 May 4, 2020 by the following vote: AYES: Posey, Delgleize, Hardy, Semeta, Peterson, Carr, Brenden NOES: None ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 VISIT HUNTINGTON BEACH SURF CITY USA' April 17, 2020 The Honorable Lyn Semeta Mayor, City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Mayor Semeta, The Visit Huntington Beach (VHB) Board of Directors met yesterday (April 16, 2020) to evaluate the massive impact the COVID-19 pandemic has inflicted upon our local visitor industry. Also discussed were several recovery plan action steps. The VHB Board of Directors unanimously approved yesterday the following actions: 1. Request that the City of HB allows VHB to modify its existing Huntington Beach Tourism Business Improvement District Plan for the purpose of allowing the deferment of future TBID assessments paid to the City of Huntington Beach. 2. VHB and the City of Huntington Beach will work on the exact end period for all future TBID deferments and related repayment schedule, which the Huntington Beach City Council will consider at their Monday, May 4, 2020 regularly scheduled meeting. Thank you, Mayor Semeta, for your continued support of our community's vital visitor industry. Sincerely, Kelly Miller President & CEO Visit Huntington Beach Cc: City of Huntington Beach City Council Members Oliver Chi, City Manager Michael Gates, City Attorney Michael Vigliotta,Assistant City Attorney Robin Estanislau, City Clerk VHB Board of Directors 155 5th Street,Suite 111, Huntington Beach,CA 92648 •714.969.3492 .www.SurfCityUSA.com 95 ATTACHMENT #3 4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX Huntington Beach Charter and Codes Up Previous Next Plain Collapse Search Print No Frames MUNICIPAL CODE Title 3 REVENUE AND FINANCE Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX 3.28.010 Purpose The City Council of the City of Huntington Beach hereby declares that this chapter,which shall be known as the Uniform Transient Occupancy Tax, is adopted to provide a tax on the rent charged in a hotel by the operator of said hotel. (1068- 7/64, 2015-11/75) 3.28.020 Definitions Except where the context otherwise requires,the definitions given in this section govern the construction of this chapter: "Hotel"means any structure, or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn,tourist home or house, motel, studio hotel,bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club,mobile home or house trailer at a fixed location, or other similar structure or portion thereof. "Occupancy"means the use or possession or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. "Operator"means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his or her functions through managing agent of any type or character other than an employee,the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however,be considered to be compliance by both. "Person"means any individual, firm,partnership,joint venture, association, social club, fraternal organization,joint stock company, corporation, estate, trust,business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. "Rent"means the consideration charged, whether or not received, for the occupancy of space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. "Transient"means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient,uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered. (1068- 7/64) 3.28.030 Tax Imposed For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax on the rent charged by the operator at a rate equal to the current, combined state and local use tax rate. Said rate shall be declared by the City Council by resolution from time to time. Said tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the City Treasurer may require that such tax be paid directly to the City Treasurer. (1068-7/64, 1590-8/70, 2015-11/75, Res. 5859-5/88) 96 www.gcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-3-3_28&showAl1=1&frames=on 1/5 4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX 3.28.040 Exemptions No tax shall be imposed upon: A. Any person as to whom, or any occupancy as to which it is beyond the power of the City to impose the tax herein provided; B. Any federal or State of California officer or employee when on official business; C. Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the City Treasurer. (1068-7/64, 2015-11/75) 3.28.050 Operator's Duties Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of the rent charged, and each transient shall receive a receipt for payment from the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly,that the tax or any part thereof will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, if added, any part will be refunded except in the manner hereinafter provided. (1068- 7/64, 2015-11/75) 3.28.060 Register Every owner, keeper or proprietor of any lodging house,rooming house, motel or hotel shall keep a register wherein he or she shall require all guests, roomers or lodgers to inscribe their names upon their procuring lodging of a room or accommodations. Said register shall also show the day of the month and year when said name was inscribed, and the room occupied, or to be occupied by said lodger, or roomer or guest in such lodging house, rooming house, motel or hotel. Said register shall be kept in a conspicuous place in said lodging house,rooming house, motel or hotel, and shall at all times be open to inspection by any peace officer of the State of California. (1226-7/66, 2015-11/75) 3.28.070 Guests Must Register Before any lodging for hire to any person(s) in any lodging house, or before renting any room to any person(s)in any rooming house, or before furnishing any accommodations to any guest(s) at any motel or hotel,the proprietor,manager or owner thereof shall require the person(s)to whom such lodgings are furnished, or room is rented, or accommodations furnished, to inscribe his or her or their name(s) in such register kept for that purpose as hereinabove provided, and shall set opposite said name(s)the time when said name(s)was/were so inscribed,the room occupied by such lodger(s), roomer(s), or guest(s), and the license number and description of the vehicle said lodger(s),roomer(s) or guest(s)drove. (1226-7/66, 2015-11/75) 3.28.080 Registration Within 30 days after the effective date of the ordinance codified in this chapter, or within 30 days after commencing business,whichever is later, each operator of any hotel renting occupancy to transients shall register said hotel with the Finance Director and obtain from him or her a"Transient Occupancy Registration Certificate"to be at all times posted in a conspicuous place on the premises. Said certificate shall, among other things, state the following: A. The name of the operator; B. The address of the hotel; C. The date upon which the certificate was issued. D. "This Transient Occupancy Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of Chapter 3.28 by registering with the Finance Director for the purpose of colleccting from www.qcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-3-3_28&showAl1=1&frames=on 2/5 4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX transients the Transient Occupancy Tax and remitting said tax to the City Treasurer. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner,nor to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit." (1068-7/64, 3751-I1/06) 3.28.090 Reporting and Remitting Each operator shall file a report each month on forms provided by the Finance Director of the total rents charged and received and the amount of tax collected for transient occupancies for the preceding month. The full amount of tax collected shall be remitted to the City Treasurer. Said tax collected by each operator during a calendar month, is due and payable and must be received by the City by the last business day of the first month following and shall be delinquent and subject to the penalties noted in Section 3.28.100 of this chapter on the first day of the second month following. Said .......................... report shall be filed at the same time the tax is remitted. Returns are due and payable and delinquent immediately upon cessation of business for any reason. All taxes collected by operators pursuant to this chapter shall be held in trust for the account of the City until payment is made to the City Treasurer. (1068-7/64, 2098-9/76, 3751-11/06) 3.28.100 Penalties and Interest The following shall give rise to penalties and interest: A. Original Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the tax in addition to the amount of the tax. B. Continued Delinquency. Any operator who fails to meet any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10% of the amount of the tax in addition to the amount of the tax and the 10%penalty first imposed. C. Fraud. If the Finance Director determines that the non-payment of any remittance due under this chapter is due to fraud, a penalty of 25% of the amount of the tax shall be added thereto in addition to the penalties stated in subsections A and B of this section. D. Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by this chapter shall pay interest at the rate of one-half of one percent per month, or fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid. E. Penalties Merged With Tax. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the tax herein required to be paid. (1068-7/64, 3751-11/06) 3.28.110 Failure to Collect and Report Tax—Determination of Tax by Finance Director If any operator shall fail or refuse to collect said tax and to make,within the time provided in this chapter, any report and remittance of said tax or any portion thereof required by this chapter, the Finance Director shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the Finance Director shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made,the Finance Director shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail,postage prepaid, addressed to the operator so assessed at his or her last known place of address. Such operator may within 10 days after the serving or mailing of such notice make application in writing to the Finance Director for a hearing on the amount assessed. If application by the operator for a hearing is not made within the time prescribed,the tax, interest and penalties, if any, determined by the Finance Director shall become final and conclusive and immediately due and payable to the City Treasurer. If such application is made,the Finance Director shall give not less than five days written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. At such hearing,the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the Finance Director shall detennine 98 www.gcode.us/codes/hunti ngton beach/view.ph p?topic=mu nicipal_code-3-3_28&showAl1=1&frames=on 3/5 4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX the proper tax to be remitted and shall thereafter give written notice to the person and in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable to the City Treasurer after 15 days unless an appeal is taken as provided in Section 3.28.120. (1068-7/64, 2015-11/75, .......................... 3751-11/06) 3.28.120 Appeal Any operator aggrieved by any decision of the Finance Director with respect to the amount of such tax, interest and penalties,if any,may appeal to the City Council by filing a notice of appeal with the City Clerk within 15 days of the serving or mailing of the determination of tax due. The Council shall fix a time and place for hearing such appeal, and the City Clerk shall give notice in writing to such operator at his or her last known place of address. The findings of the Council shall be final and conclusive and shall be served upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the City or an officer thereof to prevent or enjoin the collection of taxes sought to be collected pursuant to this chapter and payment of all tax, interest and penalties shall be required as a condition precedent to seeking judicial review of any tax liability. (1068-7/74, 2015-11/75, 3751-11/06, 3841-11/09) 3.28.130 Records It shall be the duty of every operator liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Finance Director shall have the right to inspect at all reasonable times. (1068-7/64, 3751-11/06) 3.28.140 Refunds The following shall warrant a refund: A. Whenever the amount of any tax, has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City Treasurer under this chapter, it may be refunded as provided in this section. B. The City Treasurer may refund any tax that has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the City Treasurer under this chapter,provided that no refund shall be paid under the provisions of the section unless the claimant or his or her guardian, conservator, executor or administrator has submitted a written claim, under penalty of perjury,to the City Clerk within one year of the overpayment or erroneous or illegal collection of said tax. Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto.Nothing herein shall permit the filing of a refund claim on behalf of a class or group of taxpayers. Where the amount of any individual refund claim is in excess of$5,000.00, City Council approval shall be required. C. It is the intent of the City that the one-year written claim requirement of this section be given retroactive effect; provided, however, that any claims which arose prior to the enactment of the one-year claims period of this section, and which are not otherwise barred by a then-applicable statute of limitations or claims procedure,must be filed with the City Clerk as provided in subsection B of this section within 90 days following the effective date of the ordinance codified in this section. D. The City Treasurer, or the City Council where the claim is in excess of$5,000.00 and the City Treasurer has approved the claim, shall act upon the refund claim within 45 days of the initial receipt of the refund claim. Said decision shall be final. If the Treasurer/City Council fails or refuses to act on a refund claim within the 45-day period,the claim shall be deemed to have been rejected by the City Treasurer/City Council on the 45th day. The treasurer shall give notice of the action in a form which substantially complies with that set forth in Government ..................................... Code Section 913. ................ E. The filing of a written claim is a prerequisite to any suit thereon. Any action brought against the City pursuant to this section shall be subject to the provisions of Government Code Sections 945.6 and 946. (1068-7/64, 2015- ...................................................... 11/75, 3751-11/06) 99 www.gcode.us/codes/huntingtonbeach/view.php?topic=municipaf_code-3-3_28&showAl1=1&frames=on 4/5 4/11/2020 Chapter 3.28 UNIFORM TRANSIENT OCCUPANCY TAX 3.28.150 Actions to Collect Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the City. Any such tax collected by an operator which has not been paid to the City shall be deemed a debt owed by the operator to the City. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City of Huntington Beach for the recovery of such amount. (1068-7/64, 2015- 11/75) 3.28.160 Failure to Register Any operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Finance Director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor.Any person required to make,render, sign or verify any report or claim or who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor. (1068-7/64, 2015- 11/75, 3751-11/06) 3.28 170 Credit for Transient Occupancy Taxes Paid to Huntington Beach Redevelopment Agency _ _._ Any person or persons subject to the transient occupancy tax under this chapter shall be entitled to a credit against the payment of such taxes due in the amount of any transient occupancy taxes due from that person or persons to the Huntington Beach Redevelopment Agency pursuant to Ordinance No. 2, adopted by the Agency on July 1, 2002, which affects any persons occupying a room or rooms in any hotels, inns,tourist homes or houses, motels, or other lodging within the Main-Pier Redevelopment sub-area of the Huntington Beach Redevelopment Project. (See Ordinance No. 3559 for additional information regarding termination, or amendment, or modification of§ 3.28.170.) (2974-12/88, 3558-7/02, .......................... 3559-7/02) View the mobile version. 100 www.qcode.us/codes/huntingtonbeach/view.php?topic=municipal_code-3-3_28&showAl1=1&frames=on 5/5 ATTACHMENT #4 RESOLUTION NO. 2018-84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS AND RENEWING THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (HBTBID) WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and Highways Code §36600 et. seq.)authorizes the City to renew business improvement districts upon petition by a weighted majority of the business owners located within the boundaries of the district; and WHEREAS, lodging business owners who will pay more than fifty percent (50%) of the renewed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the HBTBID have petitioned the City Council to renew the HBTBID; and WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the renewed assessment to be levied on lodging businesses within the HBTBID to pay for tourism enhancement programs, and other improvements and activities set forth in the Plan; and WHEREAS, the assessed lodging businesses within the HBTBID will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on October 15, 2018 at 6:00 PM at 2000 Main Street, Huntington Beach, CA 92684, the City Council adopted a Resolution of Intention, Resolution No. 2018-59; and WHEREAS, the public meeting and public hearing to consider the renewment of the HBTBID have been properly noticed in accordance with Streets and Highways Code §36623; and WHEREAS, on November 19, 2018 at 6:00 PM at 2000 Main Street, Huntington Beach, CA 92684, the City Council held a public meeting regarding the renewal of the HBTBID, and the City Council heard and received objections and protests, if any, to the renewal of the HBTBID and the levy of the renewed assessment; and WHEREAS, on December 17, 2018 at 6:00 PM at 2000 Main Street, Huntington Beach, CA 92684, the City Council held a public hearing regarding the renewal of the HBTBID, and the City Council heard and received all objections and protests, if any, to the renewal of the,HBTBID and the levy of the renewed assessment; and WHEREAS, 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 renewed HBTBID which would pay fifty percent (50%) or more of the assessments renewed to be levied. Protests are weighted based on the assessment renewed to be levied on each lodging business; and 101 RESOLUTION NO. 2018-84 WHEREAS, the City bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary to cover the costs to the City in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor. 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 HBTBID is hereby renewed for a nine (9) and five (5) months year term, beginning February 1, 2019 through June 30, 2028. 3. The Plan dated October 9, 2018 is hereby adopted and approved. 4. The activities to be provided to benefit businesses in the HBTBID 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 HBTBID; to provide activities or improvements outside the HBTBID; or for any purpose other than the purposes specified in this Resolution, the Resolution of Intention, and the Plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the HBTBID boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the HBTBID. 5. The City Council finds as follows: a) 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. 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 HBTBID are levied solely upon the assessed business, 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 2 18-6918/193095 102 RESOLUTION NO. 2018-84 communications from the business owner as the "HBTBID Assessment" or "Tourism Assessment" as specified in the Plan. 6. The assessments levied for the HBTBID shall be applied towards tourism enhancement programs to market Huntington Beach lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the Plan. 7. Assessments levied on lodging businesses pursuant to this resolution shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on room rentals is the best measure of benefit. 8. The assessments for the entire HBTBID will total approximately $5,000,000 annually. The initial `year' of operation will be a partial year consisting of five (5) months, for which the anticipated budget is $2,083,333. 9. Bonds shall not be issued to fund the HBTBID. 10. The HBTBID shall include all lodging business located within the boundaries of the City of Huntington Beach. A boundary map is attached hereto and incorporated herein by reference. 11. The assessments shall be used for the purposes set forth above and any funds remaining at the end of any year may be used in subsequent years in which the HBTBID assessment is levied as long as they are used consistent with the requirements set forth herein. 12. The assessments to fund the activities and improvements for the HBTBID will be collected by the City on a monthly basis, and in accordance with Streets and Highways Code §36631. 13. The City Council, through adoption of this Resolution and the Plan, has the right pursuant to Streets and Highways Code §36651, to identify the body that shall implement the renewed program, which shall be the Owners' Association of the HBTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visit Huntington Beach shall be the HBTBID Owners' Association. 14. Visit Huntington Beach, 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 HBTBID. 15. The HBTBID renewed 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.). 16. The City Clerk, or his or her designee, is directed to take all necessary actions to complete the renewal of the HBTBID and to levy the assessments. 3 1 8-69 1 8/193095 103 RESOLUTION NO. 2018-84 17. 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 the 17th day of December , 2018. Mayor REVIEWED AND APPROVED: INITIATED AND APPROVED: City ana er Deputy Direct of Economic Development ;APPROVED AS O FORM: ' Attorney MN 4 18-6918/193095 104 RESOLUTION NO. 2018-84 Boundary Map GARDEN,GROVE FREEW GARDEN ROVE FREE L 4 ~ CITY OF HUNTINGTON BEACH I Q Q I w 1 � A�� U CIO `sT � ti r PACIFIC OCEAN 105 Res. No. 2018-84 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, 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 December 17, 2018 by the following vote: AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy NOES: None ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 106