HomeMy WebLinkAbout2019-06-11 - RESOLUTIONS - DECLARING ITS INTENTION TO LEVY ANNUAL ASMTS FOR F (2)RESOLUTION NO. 19-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, DECLARING ITS INTENTION TO
LEVY ANNUAL ASSESSMENTS FOR FISCAL YEAR 2019-20 WITHIN
THE SANTA CLARITA TOURISM MARKETING DISTRICT
WHEREAS, the City of Santa Clarita (City) is a general law City organized and existing
under the laws of the State of California; and
WHEREAS, the Parking and Business Improvement Area Law of 1989 (Section 36500 et
seq. of the Streets and Highways Code of the State of California) authorizes the City to levy
assessments on businesses within a parking and business improvement area, which is in addition
to any assessments, fees, charges, or taxes imposed in the City and to use such proceeds for the
benefit of businesses within such parking and business improvement area pursuant to said
Parking and Business Improvement Area Law of 1989 (1989 BID Law); and
WHEREAS, the City Council of the City on May 25, 2010, pursuant to Ordinance No.
10-4 established the Tourism Marketing District (TMD) and a Hotel Tourism Marketing Benefit
Zone (Benefit Zone); and
WHEREAS, pursuant to Section 36533 of the 1989 BID Law, the Advisory Board for the
TMD has caused a report (Annual Report) to be prepared and filed with the City Clerk, which
describes the improvements and activities for which assessments are to be levied and collected
for Fiscal Year (FY) 2019-20, and this Annual Report has been presented to the City Council for
review and approval; and
WHEREAS, the City Council intends to levy and collect assessments within the Benefit
Zone of the TMD for FY 2019-20 and by this resolution fixes a time and place for a public
hearing to be held by the City Council on the levy of the annual assessment for FY 2019-20
pursuant to Section 36535 of the 1989 BID Law.
NOW THEREFORE, the City Council of the City of Santa Clarita, California, does
hereby resolve as follows:
SECTION 1. Recitals: The above recitals are all true and correct.
SECTION 2. Declaration of Intention: Pursuant to the 1989 BID Law, the City Council
hereby declares its intention to levy and collect assessments on businesses within the Benefit
Zone of the TMD for FY 2019-20, which commences July 1, 2019, to pay for the improvements,
services and activities authorized by Ordinance No. 10-4 and described in the Annual Report
filed with the City Clerk.
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SECTION 3. Boundaries: For FY 2019-20, the boundaries of the TMD that includes all
of the real property within the City and the Benefit Zone, which is inclusive of the hotels now
operating in the City and identified and attached hereto as Exhibit A, shall be unchanged from
the boundaries established by Ordinance No. 10-4.
SECTION 4. Exemption of Newly Established Business: The City Council proposes to
annually levy assessments against all businesses in the Benefit Zone in accordance with the
proposed system of assessments as set forth on Exhibit B, and as such has determined that the
assessments on newly established hotels shall commence immediately upon the first day of
operation and after the public hearing for inclusion of such property.
SECTION 5. Use of Assessment Revenues: That the proposed uses of the revenues
derived from charges levied against businesses in the Benefit Zone for FY 2019-20 generally
include, but are not limited to, the following:
a) Promoting the identity of Santa Clarita through financial support of key regional and
national events that support tourism and result in an economic impact; and
b) Developing and implementing a destination marketing strategy and promotions
targeting potential hotel guests; and
c) Developing and undertaking an advertising and public relations program focusing on
the business and leisure travel trade; and
d) Subsidization of high-quality, high -economic impact events; and
e) Annual operation expenses including but not limited to annual district administration
functions and expenses, printing, postage, and meetings; and
f) Support and funding of the Summer Trolley program; and
g) Attendance at key meeting and consumer trade shows.
SECTION 6. Method of Assessment: In addition to any assessments, fees, charges, or
taxes imposed otherwise in the City, the City Council proposes to levy assessments against
businesses in the Benefit Zone in FY 2019-20 for the purpose of funding the programs, activities,
and services that will promote the City and hotels as a tourist destination. A description of the
proposed system of assessments is set forth on Exhibit B, attached hereto and incorporated
herein by this reference.
SECTION 7. Annual Report: The City Council hereby approves the Annual Report for
FY 2019-20 as submitted to the City Clerk or as amended herein by City Council direction. Said
Annual Report as submitted or amended provides a full and sufficient description of the
improvements, services, and activities to be funded by the assessments for FY 2019-20; the
boundaries of the TMD and the Benefit Zone within the TMD, and the proposed assessments to
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be levied upon the businesses within the TMD for that fiscal year. Said report as submitted or
amended is by reference made part of this resolution.
SECTION 8. Public Hearing: A public hearing concerning the FY 2019-20 levy of annual
assessments for the TMD Benefit Zone will be held on June 25, 2019, at 6:00 p.m., or as soon
thereafter as the matter can be heard at the City Council's regularly held meeting, located at
23920 Valencia Boulevard, Santa Clarita. At the public hearing, written and oral protests may be
presented to the City Council. The form and manner of protests shall comply with Sections
36524 and 36525 of the 1989 BID Law, which generally establish that if written protests are
received from the owners of businesses that will pay 50 percent or more of the assessments to be
levied and protests are not withdrawn so as to reduce the protests to less than that 50 percent, no
further proceedings to levy the proposed assessment shall be taken for a period of one year from
the date of the finding of a majority protest by the City Council. If the majority protest is only
against the furnishing of a specified type or types of improvement or activity, those types of
improvements or activities shall be eliminated. Every written protest shall be filed with the Clerk
at or before the time fixed for the public hearing. The City Council may waive any irregularity in
the form or content of any written protest and at the public hearing may correct minor defects in
the proceedings. A written protest may be withdrawn in writing at any time before the conclusion
of the public hearing.
SECTION 9. Notice of Hearing: Pursuant to Section 36534 of the 1989 BID Law, the City
Clerk is hereby directed to give notice of the public hearing by causing the resolution of intention
to be published once in a newspaper of general circulation in the City not less than seven days
before the public hearing scheduled for June 25, 2019.
PASSED, APPROVED, AND ADOPTED this 11`h day of June 2019.
VA /
ATTEST:
CITY CLERK
GATE-._ Ov
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the. City of Santa Clarita, do hereby certify that the foregoing
Resolution No. 19-25 was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the I It" day of June 2019, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
Kellar, Weste, Miranda, Smyth, McLean
None
None
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C lYll`&OW11911
Exhibit A
SANTA CLARITA
TOURISM MARKETING DISTRICT
HOTEL TOURISM MARKETING BENEFIT ZONE
Hotels in Fiscal Year 2019-20
The following is a list of hotels now operating, or proposed to operate, in the Tourism Marketing
District, and specifically the Hotel Tourism Marketing Benefit Zone for Fiscal Year 2019-20.
Best Western Valencia Inn
27413 Wayne Mills Place
Santa Clarita, CA
Holiday Inn Express
27513 Wayne Mills Place
Santa Clarita, CA
Courtyard by Marriott
28523 Westinghouse Place
Santa Clarita, CA
Embassy Suites
28508 Westinghouse Place
Santa Clarita, CA
Hyatt Regency Valencia
24500 Town Center Drive
Santa Clarita, CA
(Assessor #--2861071010)
(Assessor #--2861071008)
(Assessor #--2866034080)
(Assessor #--2866034097)
(Assessor #--2861062020)
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Exhibit B
SANTA CLARITA
TOURISM MARKETING DISTRICT
HOTEL TOURISM MARKETING BENEFIT ZONE
Proposed System of Assessment (Methodology)
The proposed system of assessments is designed to generate revenue from hotels in the City to
provide a method of funding public programs and activities that will promote the City and hotels
as a tourist destination. The City's hotels comprise the Benefit Zone and are the only business
proposed to be assessed. An annual assessment is to be levied against hotels based on the
benefits they derive from the program of activities. Businesses located outside the Benefit Zone
(i.e., all non -hotel businesses) would not be assessed as they derive only, at most, an indirect
benefit from the program of activities.
Any modification to the Benefit Zone or program of activities for which the assessments are
proposed to be levied would be subject to notification of all businesses within the Area and a
public hearing before the City Council. At such public hearing, the City Council shall hear all
protests and receive evidence, including written protests, for and against such modification.
Each business in the Benefit Zone shall pay a charge of two percent of total room rents charged
and received from transient hotel guests who do not make the hotel their principal place of
residence.
Once the system of charges is established, it cannot be changed without written notice to all
businesses in the Area and a public hearing held by the City Council. At such public hearing, the
City Council shall hear all protests and receive evidence, including written protests, for and
against such changes.
Charges will be collected by the City of Santa Clarita, with the funds being remitted to a special
fund of the City for expenditure in accordance with its adopted annual budget as presented by the
Advisory Committee appointed by the City Council.
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