Meeting Date: July 3, 2012
Prepared by: Jason Stilwell
City Council
Agenda Item Summary
Name: Public Meeting establishing the Carmel Hospitality Improvement District:
1) Consideration of Resolution declaring the City's intention to establish the Carmel Hospitality Improvement District (HID) and
2) The first reading of an Ordinance establishing the Carmel Hospitality Improvement District.
Description: As Council is aware, local hotel operators have expressed an interest in establishing a hospitality improvement district (HID) consisting of lodging establishments within the City to focus on small conferences and public relations for CarmeL Staff has prepared the necessary documentation to implement the HID, which includes a resolution of intention to form the HID and a proposed ordinance establishing the HID for first reading. Council should note that the resolution of intent is being brought back to clarify the dates of the previous resolution approved on June 12 and to allow for a longer public comment period.
Overall Cost:
City Funds: N/ A
Grant Funds: N/ A
Staff Recommendation: Adopt a Resolution declaring the City's intention to establish the Carmel Hospitality Improvement District (HID) and adopt upon first reading the Ordinance establishing the HID.
Important Considerations: The public meeting held on July 3, 2012 is required in advance of the public hearing to consider the formation of the HID that will be held on August 7, 2012, assuming the resolution of intention is passed tonight. If there is not a majority protest at the August 7 meeting, Council will hold the
second reading of the ordinance, with the ordinance taking effect on September 7, 2012. Assessments would begin to be remitted in October 2012.
Decision Record: On June 12, 2012, Council adopted Resolution 2012-35, declaring the City's intention to establish the Carmel Hospitality Improvement District (HID). That resolution will be superseded by this new resolution.
Reviewed by:
Jason Stilwell, City Administrator Date
TO: MAYOR BURNETT AND COUNCIL MEMBERS
FROM: JASON STILWELL, CITY ADMINISTRATOR
DATE: JULY 3, 2012
SUBJECT: CONSIDERATION OF A RESOLUTION DECLARING THE CITY’S INTENT TO ESTABLISH THE CARMEL HOSPITALITY IMPROVEMENT DISTRICT (HID)
RECOMMENDATION: Adopt a Resolution declaring the City’s intention to establish the Carmel Hospitality Improvement District (HID).
DISCUSSION: During the past few months, local hotel operators have expressed an interest in having the City Council establish a hospitality improvement district (HID) consisting of lodging establishments within the City to focus on small conferences and public relations for Carmel.
Council directed staff to prepare the necessary documentation to implement the HID and as such, we have prepared a resolution of intention to form the HID, with the following features:
1. The assessments would be levied on all “lodging units” as that phrase is currently defined in the municipal code with respect to the transient occupancy tax.
2. The assessments would further be imposed on non-transient occupancies in hotels. While Revenue and Taxation Code Section 7280 prohibits the application of transient occupancy tax to lodging stays of longer than 30 days, there is no such limitation in the HID law. Furthermore, the assessment under an HID is on the lodging operation, not the guest staying in the lodging operation, even though the assessment will likely be passed on to the guest by the operator.
3. There are record-keeping requirements, penalties and interest provisions, and other enforcement mechanisms drawn from similar requirements under the City’s transient occupancy ordinance.
This public meeting is required in advance of the public hearing to consider the formation of the HID. The public hearing to consider the HID formation will be set for August 7 if the resolution of intention is passed tonight. This amended resolution of intent is being brought back to Council to clarify the dates included
in the previous resolution passed on June 12 and to allow for a longer period for public comment. Assuming there is not a majority protest at the August 7 meeting, the second reading of the ordinance will take place that night, with the ordinance taking effect on September 7, 2012. Assessments will begin to be
remitted during October 2012.
FISCAL IMPACT: The total amount of assessments collected each year will vary, depending on the gross lodging revenues reported by lodging operations.
ATTACHMENTS:
1. Resolution
2. Notice of adoption of resolution of intention
3. Ordinance adopting the Carmel HID (First reading)
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DECLARING ITS INTENTION TO ESTABLISH THE CARMEL HOSPITALITY IMPROVEMENT DISTRICT
________________________________________________________________
WHEREAS, the California Streets and Highways Code Section 36500 et seq. authorizes cities to establish business improvement districts to promote tourism, create jobs, attract new business, and enhance the business districts; and
WHEREAS, tourism is an essential contributor to the economy of the City of Carmel-by-the-Sea, and the promotion of the City’s lodging operations will serve an important public purpose; and
WHEREAS, the owners of the lodging operations and the Carmel Chamber of Commerce have requested that the City Council establish such a business improvement district.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES ORDAIN AS FOLLOWS:
Section 1. The City Council, at the request of owners of lodging operations and the Carmel Chamber of Commerce, and pursuant to Section 36500 et seq. of the California Streets and Highways Code, does hereby declare its intention to establish the Carmel-by-the-Sea Hospitality Improvement District” (the “HID”).
Section 2. The geographic boundaries of the area to be included in the HID are the
boundaries of the City of Carmel-by-the-Sea.
Section 3. The types of activities proposed to be funded by the levy of assessments on
businesses in the HID are those activities that will promote the local lodging operations.
Section 4. Except where funds are otherwise available, the City Council intends to levy
an assessment on all lodging operations within the HID boundaries to pay for all
activities of the HID including, but not limited to, employing a lodging operations
manager and recovery of City costs for noticing, meeting(s), and hearing(s) on this matter
commencing September 1, 2012. As used herein, the lodging operation shall mean a
lodging unit as defined in Section 17.70.020 of the Carmel Municipal Code, which pays
transient occupancy tax to the City. The method and the basis for levying the assessment
on such lodging operations within the HID shall be as follows: An assessment will be
levied against lodging operations to pay for the activities within the HID and shall be
paid at the time the lodging establishment pays transient occupancy taxes to the City.
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Section 5. The proposed assessment is to be levied on all lodging operations within the
HID boundaries based upon the formula of $1 per occupied room per night to pay for the
activities including, but not limited to, employing a lodging operations manager and
recovery of City costs for noticing, meeting(s), and hearing(s) on this matter.
Section 6. Lodging operations established after the effective date of ordinance
establishing the HID shall not be exempt from assessment.
Section 7 Pursuant to Government Code Section 54954.6(a)(1), a public meeting to allow
public testimony regarding the proposal to establish the HID is hereby set for July 3,
2012 at 4:30 pm before the City Council at City Hall on Monte Verde Street between
Ocean Ave. and 7th Avenue, Carmel-by-the-Sea, California.
Section 8. Pursuant to Government Code Section 54954.6(a)(1), a public hearing to allow
public testimony and protests regarding the proposal to establish the HID is hereby set for
August 7, 2012 at 4:30 pm before the City Council at Carmel City Hall, on Monte Verde
Street between Ocean and Seventh Avenues, Carmel-by-the-Sea, California.
Section 9. The City Clerk is instructed to provide notice to the public hearing as follows:
a. Publish this Resolution of Intention by placing a display advertisement of at
least one-eighth page in a newspaper of general circulation and by a first class
mailing to those interested parties who have filed a written request with the
local agency for mailed notice of public meetings or hearing on new or
increased general taxes, the publication being no later than July 27, 2012, 11
days before the public hearing.
b. Mail a complete copy of the Resolution of Intention to each and every owner
and/or operator of a lodging operation in the proposed HID within seven (7)
days of the adoption of this Resolution by the City Council, along with a
separate notice of the proposed assessment prepared by the City Attorney.
Section 10. At the public hearing, the testimony of all interested persons, for, or against
the establishment of the HID, the boundaries of the HID, the area of benefit within the
HID, the assessment to be levied, or the furnishing of specified types of improvements or
activities including, but not limited to, employing a lodging operations manager and
recovery of City costs for noticing, meeting(s), and hearing(s) on this matter will be
heard. A protest may be made orally or in writing by an any interested person, but only
those protests submitted by those lodging operations that would pay assessments under
the proposed HID will be counted for purposes of determining the majority protest set
forth in Section 11 of this Resolution. Any written protest as to the regularity or evidence
of the proceedings shall clearly state the irregularity or defect to which the objection is
made. Written protests must be received by the City Clerk at or before the time set for the
public hearing, and shall be submitted to the City Clerk at City Hall, located on Monte
Verde St. between Ocean Ave. and 7thAvenue, Carmel-by-the-Sea, California. A written
protest may be withdrawn in writing at any time before the conclusion of the public
hearing. A written protest must include: (i) A statement that it is a protest against the
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formation of the HID, the boundaries, area of benefit, annual assessment, or the
furnishing of specified types of improvements or activities including but not limited to
employing a lodging operations manager or recovery of City costs for noticing,
meeting(s), and hearing(s); (ii) the name of the record owner of the lodging operation
who is submitting the protest; (iii) the identity of the lodging operation, by street location
or assessor’s parcel number (APN) to which the protest is made; (iv) the number of
lodging units within the lodging operation; and (v) the Original signature and legibly
printed name of the owner of the lodging operation who is submitting the protest.
Each written protest shall contain a written description of the lodging operation in which
the person subscribing the protest is interested sufficient to identify the lodging operation.
If the person subscribing is not shown on the official records of the City as the owner of
the lodging operation, then the protest shall contain or be accompanied by written
evidence that the person is the owner of the lodging operation.
Section 11. If at the conclusion of the public hearing, there are written protests by the
owners of the lodging operations within the HID that would pay fifty percent (50%) or
more of the total assessments of the entire HID, no further proceedings to create the HID
shall occur. New proceedings to form the HID shall not be undertaken again for a period
of at least one (1) year from the date of the finding of the majority written protests by the
City Council. If the majority of written protests are only as to an improvement or activity
proposed then that type of improvement or activity shall not be included in the HID.
Section 12. Upon determination that a majority protest does not exist, the City Council
shall be authorized to form the Hospitality Improvement District and may thereafter
appoint an Advisory Board for the Hospitality Improvement District. The proposed
appointment process shall be by the following process:
a. Membership on the HID Advisory Board shall be limited to lodging operation
owners, concessionaires representing lodging operations, or employees
holding the written consent of the lodging operation, within the HID area. To
sponsor a member on the HID Advisory Board, each lodging operation shall
have full paid its HID assessment at the time of the appointment and remain
fully paid during the term of that representative’s membership on the Board.
b. The HID Advisory Board shall be comprised of six (6) members. One shall be
the President of the Carmel Innkeepers Association. One shall be the
Executive Director of the Sunset Center. Two (2) members shall represent -
lodging properties with conference facilities. Two (2) shall represent small
inns or bed & breakfast inns.
c. HID Advisory Board members shall serve two-year terms, with appointments
staggered at one-year intervals.
d. The HID Advisory Board shall be established following a nomination process
facilitated by the Chamber of Commerce. Each February, the Carmel
Chamber of Commerce (Chamber) shall mail a letter to each lodging
operation located in the HID. The letter shall announce that the Chamber shall
hold a meeting at City Hall for the purpose of conducting open elections for
the HID Advisory Board seats that may be vacant or are scheduled to become
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vacant as of July 1 of that Calendar year. The letter shall further notify each
lodging operation of the Advisory Board selection process.
Section 13. It is proposed that the HID Advisory Board shall meet at least four times per
year. Each meeting shall be open and public.
Section 14. It is proposed that the City Administrator may authorize the Chamber of
Commerce, by contract, to spend HID assessment revenues on behalf of the City
provided each expenditure is made in accord with the HID program and budget as
approved by the City.
Section 15. It is proposed that the HID Advisory Board shall prepare and file an annual
report with the City regarding the HID. The report shall, among other things, itemize
activities for the fiscal year, state the cost of activities, the amount of surplus or deficit
revenues carried over from a previous fiscal year, and contributions other than
assessments. The report shall meet the requirements of California Streets and Highways
Code section 36533.
Section 16. It is proposed that after approving the annual report, the City shall adopt an
annual resolution of intention to levy the assessment for that fiscal year, publish a notice
and hold a public hearing on the assessment.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMELBY-
THE-SEA this 3rd day of July 2012 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED:
_______________________
JASON BURNETT, MAYOR
ATTEST:
____________________________
Heidi Burch, City Clerk
AMENDED NOTICE OF INTENT TO ESTABLISH A LODGING BUSINESS IMPROVEMENT DISTRICT
The City Council of the City of CARMEL-BY-THE-SEA shall conduct a public meeting at 4:30 p.m. on July 3, 2012 at City Hall located on Monte Verde Street between Ocean Avenue and 7th Street, Carmel, California and a public hearing at 4:30 p.m. on August 7, 2012, to consider establishing a Lodging Business Improvement District hereinafter referred to as the Carmel-by-the-Sea Hospitality Improvement District (HID), at the request of lodging operators and the Carmel Chamber of Commerce, and pursuant to Section 36500 et seq. of the California Streets and Highways Code.
The purpose of the HID is to levy an assessment on all lodging operations within the HID boundaries to pay for all activities of the HID, commencing September 7, 2012. As used
herein, the lodging operation shall mean a lodging unit as defined in Section 17.70.020 of
the Carmel-by-the-Sea Municipal Code. The method and basis for levying the
assessment on such lodging operations within the HID shall be as follows: An
assessment will be levied against lodging operations to pay for the activities within the
HID and shall be paid at the time the lodging establishment pays transient occupancy tax
to the City of Carmel-by-the-Sea. The proposed assessment is to be levied on all lodging
operations within the HID boundaries based upon the formula of $1 per occupied
room/unit night. It is anticipated that the City of Carmel-by-the-Sea will receive
$220,000 annually.
The City Council will receive oral and written testimony of all interested persons, for or
against the establishment of the HID, the boundaries of the HID, the area of benefit
within the HID, the annual assessment to be levied, or the furnishings of specified types
of improvements or activities including, but not limited to, employing a lodging
operations manager or recovery of reasonable costs by the City of public meeting(s),
public hearing(s), and notice required at the August 7, 2012 public hearing. A protest
may be made orally or in writing by any interested person, but only those protests
submitted by those lodging operations that would pay the assessments under the proposed
HID will be counted for the purpose of determining a majority protest. Oral protests may
be received at the hearing. Protests also may be submitted by mail or in person (by 5:00
p.m. on Monday, August 6, 2012), to the City Clerk at Carmel City Hall, located on
Monte Verde Street between Ocean and 7th Avenues, Carmel, California 93921. If, at
the conclusion of the public hearing, written protests are received from the owners of
lodging operations in the proposed area which will pay 50 percent or more of the
assessments proposed to be levied and protests are not withdrawn so as to reduce the
protests to less than that 50 percent, the HID will not be established and cannot be
reconsidered for a period of one year. A written protest must include (i) A statement that
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it is a protest against the formation of the HID, the boundaries, the area of benefit, annual
assessment, or the furnishing of specified types of activities or improvements including
but not limited to employing a lodging operations manager or recovery of City costs for
noticing, meeting(s), and hearing(s); (ii) the name of the record owner of the lodging
operation who is submitting the protest; (iii) the identity of the lodging operation, by
street location or assessor’s parcel number (APN) to which the protest is made; (iv) the
number of lodging units within the lodging operation; and (v) the original signature and
legibly printed name of the owner of the lodging operation who is submitting the protest.
If you would like additional information regarding the formation of the proposed HID,
boundaries, the area of benefit, proposed rate of assessment, or the furnishings of
specified types of improvements or activities including, but not limited to, employing a
lodging operations manager or recovery of City costs for noticing, meeting(s) and
hearing(s) on this matter, please contact City Clerk Heidi Burch at City Hall, Carmel-bythe-
Sea, located on Monte Verde Street between Ocean Avenue and Seventh Avenue, by
mail at PO Box CC, Carmel, California 93921, by phone at (831) 620-2000, or by e-mail
at hburch@ci.carmel.ca.us.
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CITY COUNCIL
CITY OF CARMEL-BY-THE-SEA
ORDINANCE 2012-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA ESTABLISHING THE CARMEL HOSPITALITY
IMPROVEMENT DISTRICT
WHEREAS, on July 3, 2012, the Carmel City Council adopted Resolution No.
2012-XX entitled, “A Resolution of the City Council of the City of Carmel-by-the-Sea
declaring its Intention to Establish the Carmel Hospitality Improvement District”;
WHEREAS, Resolution No. 2012-XX was published and copies thereof were
duly mailed and posted as required by the applicable provisions of the California
Government and Streets and Highways Codes; and
WHEREAS, pursuant to Resolution No. 2012-XX, a public meeting concerning
the formation of said district was held before the City Council on July 3, 2012; and
WHEREAS, all written and oral protests were duly heard, and testimony
concerning the proposed district was received and considered; and
WHEREAS, the City Council determined that there was no majority protest
within the meaning of Streets and Highways Code Section 36525, as written protests
were not received from owners businesses in the proposed district which would pay fifty
(50%) or more of the assessments proposed to be levied; and
WHEREAS, protests are weighted based on the assessment proposed to be levied
on each lodging operation. For purposes of determining the applicable majority protest
figure for the initial formation of the district, the proposed assessment to be levied was
calculated based on the assessment rate multiplied by the most recent available data for
the lodging operations gross lodging revenues as reported to the City during fiscal year
2010-11.
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NOW, THEREFORE, BE IT RESOLVEDTHAT THE CITY COUNCIL OF THE
CITY OF CARMEL-BY-THE-SEA does hereby resolve to:
Establish the Carmel Hospitality Improvement District as set forth in Exhibit “A”.
Severability. If any part of this ordinance, even as small as a word or phrase, is found to
be unenforceable such finding shall not affect the enforceability of any other part.
Effective Date. This ordinance shall become effective September 7, 2012
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA this ____day of _____2012 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS
SIGNED,
________________________
JASON BURNETT, MAYOR
ATTEST:
_____________________
Heidi Burch, City Clerk
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EXHIBIT “A”
CMC ______ Establishing the Carmel Hospitality Improvement District
Section 1. Pursuant to Streets and Highways Code Sections 36500 et seq. and any
subsequent amendments, the City of Carmel-by-the-Sea Hospitality Improvement District
is hereby established in the City of Carmel-by-the-Sea and all lodging operations in the
HID established by this ordinance shall be subject to assessment as set forth herein.
Section 2. The City Council of the City of Carmel-by-the-Sea finds that lodging
operations within the HID will be benefited by the activities funded by assessments to be
levied.
Section 3. Chapter ____(Carmel Hospitality Improvement District) is hereby added to
Title __________ of the Carmel-by-the-Sea Municipal Code to read as follows:
Title
This chapter shall be known as the “City of Carmel-by-the-Sea Hospitality Improvement
District Law.”
A. “City Council” shall mean the City Council of the City of Carmel-by-the-Sea
B. “Advisory Board” shall mean the Carmel Hospitality Improvement District board
established by the Resolution of Intention to oversee the HID.
C. District or “HID” shall mean the Carmel-by-the-Sea Hospitality Improvement
District created by this chapter and as delineated in Section ____.
D. “Gross lodging revenue” shall mean the rent charged by the operator per occupied
room per night for all occupancies, plus any other non-optional ancillary charges
imposed on occupants of occupied rooms including but not limited to resort fees,
housekeeping gratuities and utility surcharges. Notwithstanding the foregoing
sentence, occupancies by federal government employees on government business
for 30 consecutive days or less shall not be included in gross lodging revenues.
Assessments levied pursuant to the District shall not be included in gross room
rental revenue for the purpose of determining the amount of the transient
occupancy tax under Chapter Three of the Carmel-by-the-Sea Municipal Code.
E. “Lodging operation” shall mean a lodging unit, as defined in Section 17.70.020 of
the Carmel-by-the-Sea Municipal Code, which pays transient occupancy tax to
the City.
F. “Law” shall mean the Parking and Business Improvement Area Law of 1989,
California Streets and Highways Code Sections 36500 et seq., as amended.
G. “Operator” shall mean the person who is the proprietor of the hotel, whether in
the capacity of owner, lessee, sublessee, mortgagee in possession, licensee or any
other capacity. Where the operator performs its functions through a managing
agent of any type or character other than an employee, the managing agent shall
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also be deemed an operator for the purposes of this and shall have the same duties
and liabilities as his/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.
Authorized Uses.
The purpose of forming the HID as a business improvement area under the Law is
to provide revenue to defray the costs of services, activities and programs promoting
tourism that will benefit the operators of lodging operations in the HID through the
promotion of lodging operations and the City of Carmel-by-the-Sea for small conferences
and groups. It is the intent of this chapter to provide a supplemental source of funding for
the promotion of group business in the HID and it is not intended to supplant any other
existing sources of revenue that may be used by the City of Carmel-by-the-Sea for the
promotion of tourism. The specific services, activities and programs to be provided by
the HID are as follows:
A. The general promotion of tourism with the HID shall include costs of programs
and physical improvements as specified in the business plan to be adopted
annually;
B. The marketing of conference, group, and vacation business that benefits local
tourism and the local lodging industry in the district;
C. The marketing of the HID to the travel industry in order to benefit local tourism
and the local lodging industry in the district.
Boundaries
The boundaries of the HID shall be the boundaries of the City of Carmel-by-the-
Sea.
Levy of assessment and exemptions.
A. The HID shall include all lodging operations located within the HID boundaries.
Beginning on the effective date of the ordinance adopting the HID, the assessment
shall be levied against all lodging operations, existing and future, within the
boundaries of the business improvement district with the city of Carmel-by-the-
Sea. The assessment shall be collected bimonthly, based on the gross lodging
revenues for the previous two months. New lodging operations within the
boundaries shall not be exempt from the levy of assessment.
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B. Each operator shall, on or before the last day of the month following the close of
each calendar month, or at the close of any longer period which may be
established by the City Administrator, make a return to the City Administrator, on
forms provided by him/her, of the total gross lodging revenues charged and
received for occupancies in the lodging operation. The return shall be made
whether or not gross lodging revenues have been charged during the month. At
the time the return is filed, the full amount of the assessment shall be remitted to
the City Administrator. The City Administrator may establish shorter reporting
periods for a lodging operation if he/she deems it necessary in order to insure
collection of the assessment and he/she may require further information in the
return.
C. If any operator shall fail or refuse to make, within the time provided in this
chapter, any report and remittance of said assessment or any portion thereof
required by this chapter, the City Administrator shall proceed in such manner as
he/she may deem best to obtain facts and information on which to base his/her
estimate of the assessments due. As soon as the City Administrator shall procure
such facts and information as he/she is able to obtain upon which to base the
assessment imposed by this chapter and payable by any operator who has failed or
refused to make such report and remittance he/she shall proceed to determine and
assess against such operator the assessment, interest, and penalties provided for
by this chapter. In case such determination is made, the City Administrator shall
give a notice of the amount so assessed by serving notice personally or by
depositing it in the United States mail, postage prepaid, addressed to the operator
so assessed at his/her last known place of address.
D. Such operator may within ten days after the serving or mailing of such notice
make application in writing to the City Administrator for a hearing on the amount
assessed. If application by the operator for a hearing is not made within the time
prescribed, the assessment, interest and penalties, if any, determined by the City
Administrator shall become final and conclusive and immediately due and
payable. If such application is made, the City Administrator 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 assessment, interest and penalties. At such
hearing, the operator may appear and offer evidence why such specified
assessment, interest, and penalties should not be so fixed. After such hearing the
City Administrator shall determine the proper assessment to be remitted and shall
thereafter give written notice to the person in the manner prescribed to be remitted
and shall thereafter give written notice to the person in the manner prescribed
herein of such determination and the amount of such assessment, interest and
penalties.
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E. It shall be the duty of every operator liable for the collection and payment to the
city of an assessment levied 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
assessment as he may have been liable for the collection of and payment to the
city, which records the City Administrator shall have the right to inspect at all
reasonable times. To conduct such inspections, the City Administrator may utilize
the services of City employees or of outside firms or persons such as certified
public accountants or auditors, each of whom shall possess full city authority to
conduct said inspections.
Annual review of assessment
All of the assessments imposed pursuant to this chapter shall be reviewed by the
Carmel City Council annually in April of each year, based upon the annual report
prepared by the Advisory Board. The Advisory Board shall complete its report not later
than the last day of March each year. After approval of the annual report, the Carmel City
Council shall conduct a public hearing to levy assessment for the ensuing fiscal year. If at
the conclusion of the public hearing, there are written protests by the owners of the
lodging operations within the HID that would pay fifty percent (50%) or more of the total
assessments of the entire HID, there will be no assessed levy in the ensuing fiscal year.
Imposition of initial assessment.
The Carmel City Council hereby levies and imposes and orders the collection of
the initial assessment to be imposed upon lodging operations in the HID described above,
which shall be calculated based upon $1 per occupied room per night. Such levy shall
begin on the effective date of the ordinance adopting the HID.
Use of revenue
The activities to be provided by the HID will be funded by the levy of the
assessments. The total revenue from the levy of assessments with the HID shall not be
used to provide improvement or activities outside the HID or for any purpose other than
the purpose specified in the resolution of intention. The proceeds of the assessment shall
be spent to administer marketing and visitor programs to promote the City of Carmel as a
tourism destination. All funds shall be expended consistent with the purpose of the Law.
HID assessment revenues remaining at the end of any fiscal year may be use in
subsequent years in which HID assessments are levied as long as they are used consistent
with the requirement of this Section. The Carmel City Council shall consider
recommendations made by the Advisory Board as to the use of assessment revenues.
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Delinquency, penalty and interest
A. Any lodging operation that fails to remit any assessment imposed by this
ordinance within the time required shall pay a penalty of ten (10%) percent of the
assessment amount in addition to the assessment. Any operator who fails to remit
any delinquent remittance on or before a period of thirty days following the date
on which the remittance first became delinquent shall pay a second delinquency
penalty of ten percent of the amount of the assessment in addition to the amount
of the assessment and the ten percent penalty first imposed.
B. In addition to the penalties imposed in this chapter, any operator who fails to
remit any assessment imposed by this chapter shall pay interest at the rate of onehalf
of one percent per month or fraction thereof on the amount of the assessment,
exclusive of penalties, from the date on which the remittance first became
delinquent until paid. Any and all remedies available to the City of Carmel-bythe-
Sea for other non-payment of assessments shall be applicable in the event of
non-payment of an assessment under this chapter. Any penalty and interest fees
collected from a lodging operation due to delinquency shall be remitted to the
City of Carmel-by-the-Sea for any lawful purpose.
C. Any assessment required to be paid by any lodging operation under the provisions
of this chapter shall be deemed a debt owed by the lodging operation to the city.
Any person owing money to the city under provisions of this chapter shall be
liable to an action brought in the name of the city for the recovery of such
amount.
Advisory board.
The Advisory Board shall review the implementation of this chapter, the
implementation of programs and activities funded through this chapter, and advise the
City Council on the amount of the district’s assessments and on the services, programs,
and activities to be funded by the assessments, and shall perform such other duties as
required by the Law, including preparing the Annual Report. The Annual Report shall be
submitted to the City Council no later than the last day of March each year. The City
Council shall ensure that the Advisory Board has timely access to all public information
regarding collection, disbursement, and uses of the funds collected under the terms of this
ordinance.
Modification or disestablishment.
The City Council may modify the provisions of this chapter or may disestablish
the HID or parts of the HID after adopting a resolution of intention to such effect, and
after adoption of an ordinance in compliance with the Law.
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Criminal penalties
In addition to the civil penalties and action set forth in this chapter for failing to
comply with the provisions of this chapter, the following criminal sanctions may be
utilized at the discretion of the city, either together with or completely separate from the
civil remedies:
A. Any person violating any of the provisions of this chapter shall be guilty of a
infraction and shall be punishable therefore by a fine of not more than five
hundred dollars per occurrence.
B. Any operator or other person who fails or refuses to furnish on time any return
required to be made, or who fails or refuses to furnish a supplemental return or
other data required by the City Administrator, or who renders a false or fraudulent
return or claim, is guilty of an infraction, and is punishable as set out in this
section.
C. Any person required to make, render, sign, or certify any report or claim who
makes any false or fraudulent report or claim with the intent to defeat or evade the
determination of any amount due required by this chapter to be made, is guilty of
an infraction and is punishable as set out in this section.
Section 5.
This ordinance shall not be interpreted in any manner to conflict with controlling
provisions of state law, including, without limitation, the Constitution of the State of
California. If any section, subsection or clause of this ordinance shall be deemed to be
unconstitutional or otherwise invalid, the validity of the remaining sections subsections
and clauses shall not be affected thereby. If this ordinance, or any section, subsection or
clause of this ordinance shall be deemed unconstitutional or invalid as applied to a
particular appeal, the validity of this ordinance and its sections, subsections and clauses
in regards to other contracts, shall not be affected.
Section 6.
This ordinance shall become effective on September 7, 2012.
Section 7.
The City Clerk shall certify to the passage and adoption of this Ordinance, shall enter the same in the book of original ordinances of the City and shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted. Before the expiration of 30 days after passage of this ordinance, the City Clerk shall cause the same to be posted in three public places with in the City of
Carmel-by-the-Sea.
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