carmel hospitality improvement district

7/31/2019 Carmel Hospitality Improvement District

1/17

82


2/17

TO: MAYOR BURNETT AND COUNCIL MEMBERS

FROM: JASON STILWELL, CITY ADMINISTRATOR

DATE: JULY 3, 2012

SUBJECT: CONSIDERATION OF A RESOLUTION DECLARING THE

CITYS INTENT TO ESTABLISH THE CARMEL

HOSPITALITY IMPROVEMENT DISTRICT (HID)

RECOMMENDATION: Adopt a Resolution declaring the Citys 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 iscurrently defined in the municipal code with respect to the transient

occupancy tax.

2. The assessments would further be imposed on non-transient occupancies inhotels. 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 Citys 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

83


3/17

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 willvary, depending on the gross lodging revenues reported by lodging operations.

ATTACHMENTS:

1. Resolution2. Notice of adoption of resolution of intention3. Ordinance adopting the Carmel HID (First reading)

84


4/17

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, createjobs, attract new business, and enhance the business districts; and

WHEREAS, tourism is an essential contributor to the economy of the City ofCarmel-by-the-Sea, and the promotion of the Citys lodging operations will serve animportant public purpose; and

WHEREAS, the owners of the lodging operations and the Carmel Chamber ofCommerce have requested that the City Council establish such a business improvementdistrict.

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 theCarmel Chamber of Commerce, and pursuant to Section 36500 et seq. of the CaliforniaStreets 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 theboundaries of the City of Carmel-by-the-Sea.

Section 3. The types of activities proposed to be funded by the levy of assessments onbusinesses 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 levyan assessment on all lodging operations within the HID boundaries to pay for allactivities of the HID including, but not limited to, employing a lodging operationsmanager and recovery of City costs for noticing, meeting(s), and hearing(s) on this mattercommencing September 1, 2012. As used herein, the lodging operation shall mean alodging unit as defined in Section 17.70.020 of the Carmel Municipal Code, which paystransient occupancy tax to the City. The method and the basis for levying the assessmenton such lodging operations within the HID shall be as follows: An assessment will belevied against lodging operations to pay for the activities within the HID and shall bepaid at the time the lodging establishment pays transient occupancy taxes to the City.

85


5/17

Section 5. The proposed assessment is to be levied on all lodging operations within theHID boundaries based upon the formula of $1 per occupied room per night to pay for theactivities including, but not limited to, employing a lodging operations manager andrecovery of City costs for noticing, meeting(s), and hearing(s) on this matter.

Section 6. Lodging operations established after the effective date of ordinanceestablishing the HID shall not be exempt from assessment.

Section 7 Pursuant to Government Code Section 54954.6(a)(1), a public meeting to allowpublic 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 betweenOcean Ave. and 7th Avenue, Carmel-by-the-Sea, California.

Section 8. Pursuant to Government Code Section 54954.6(a)(1), a public hearing to allowpublic testimony and protests regarding the proposal to establish the HID is hereby set forAugust 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 atleast one-eighth page in a newspaper of general circulation and by a first classmailing to those interested parties who have filed a written request with thelocal agency for mailed notice of public meetings or hearing on new orincreased general taxes, the publication being no later than July 27, 2012, 11days before the public hearing.

b. Mail a complete copy of the Resolution of Intention to each and every ownerand/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 aseparate notice of the proposed assessment prepared by the City Attorney.

Section 10. At the public hearing, the testimony of all interested persons, for, or againstthe establishment of the HID, the boundaries of the HID, the area of benefit within theHID, the assessment to be levied, or the furnishing of specified types of improvements oractivities including, but not limited to, employing a lodging operations manager andrecovery of City costs for noticing, meeting(s), and hearing(s) on this matter will beheard. A protest may be made orally or in writing by an any interested person, but onlythose protests submitted by those lodging operations that would pay assessments under

the proposed HID will be counted for purposes of determining the majority protest setforth in Section 11 of this Resolution. Any written protest as to the regularity or evidenceof the proceedings shall clearly state the irregularity or defect to which the objection ismade. Written protests must be received by the City Clerk at or before the time set for thepublic hearing, and shall be submitted to the City Clerk at City Hall, located on MonteVerde St. between Ocean Ave. and 7thAvenue, Carmel-by-the-Sea, California. A writtenprotest may be withdrawn in writing at any time before the conclusion of the publichearing. A written protest must include: (i) A statement that it is a protest against the

86


6/17

formation of the HID, the boundaries, area of benefit, annual assessment, or thefurnishing of specified types of improvements or activities including but not limited toemploying 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 operationwho is submitting the protest; (iii) the identity of the lodging operation, by street location

or assessors parcel number (APN) to which the protest is made; (iv) the number oflodging units within the lodging operation; and (v) the Original signature and legiblyprinted 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 whichthe 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 ofthe lodging operation, then the protest shall contain or be accompanied by writtenevidence 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 theowners 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 HIDshall occur. New proceedings to form the HID shall not be undertaken again for a periodof at least one (1) year from the date of the finding of the majority written protests by theCity Council. If the majority of written protests are only as to an improvement or activityproposed 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 Councilshall be authorized to form the Hospitality Improvement District and may thereafterappoint an Advisory Board for the Hospitality Improvement District. The proposedappointment process shall be by the following process:

a. Membership on the HID Advisory Board shall be limited to lodging operationowners, concessionaires representing lodging operations, or employeesholding the written consent of the lodging operation, within the HID area. Tosponsor a member on the HID Advisory Board, each lodging operation shallhave full paid its HID assessment at the time of the appointment and remainfully paid during the term of that representatives membership on the Board.

b. The HID Advisory Board shall be comprised of six (6) members. One shall bethe President of the Carmel Innkeepers Association. One shall be theExecutive Director of the Sunset Center. Two (2) members shall represent -lodging properties with conference facilities. Two (2) shall represent smallinns or bed & breakfast inns.

c. HID Advisory Board members shall serve two-year terms, with appointmentsstaggered at one-year intervals.

d. The HID Advisory Board shall be established following a nomination processfacilitated by the Chamber of Commerce. Each February, the CarmelChamber of Commerce (Chamber) shall mail a letter to each lodgingoperation located in the HID. The letter shall announce that the Chamber shallhold a meeting at City Hall for the purpose of conducting open elections forthe HID Advisory Board seats that may be vacant or are scheduled to become

87


7/17

vacant as of July 1 of that Calendar year. The letter shall further notify eachlodging operation of the Advisory Board selection process.

Section 13. It is proposed that the HID Advisory Board shall meet at least four times peryear. Each meeting shall be open and public.

Section 14. It is proposed that the City Administrator may authorize the Chamber ofCommerce, by contract, to spend HID assessment revenues on behalf of the Cityprovided each expenditure is made in accord with the HID program and budget asapproved by the City.

Section 15. It is proposed that the HID Advisory Board shall prepare and file an annualreport with the City regarding the HID. The report shall, among other things, itemizeactivities for the fiscal year, state the cost of activities, the amount of surplus or deficitrevenues carried over from a previous fiscal year, and contributions other thanassessments. 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 anannual resolution of intention to levy the assessment for that fiscal year, publish a noticeand hold a public hearing on the assessment.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-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

88


8/17

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 meetingat 4:30 p.m. on July 3, 2012 at City Hall located on Monte Verde Street between OceanAvenue 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 hereinafterreferred to as the Carmel-by-the-Sea Hospitality Improvement District (HID), at therequest of lodging operators and the Carmel Chamber of Commerce, and pursuant toSection 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 HIDboundaries to pay for all activities of the HID, commencing September 7, 2012. As usedherein, the lodging operation shall mean a lodging unit as defined in Section 17.70.020 ofthe Carmel-by-the-Sea Municipal Code. The method and basis for levying theassessment on such lodging operations within the HID shall be as follows: Anassessment will be levied against lodging operations to pay for the activities within theHID and shall be paid at the time the lodging establishment pays transient occupancy taxto the City of Carmel-by-the-Sea. The proposed assessment is to be levied on all lodgingoperations within the HID boundaries based upon the formula of $1 per occupiedroom/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 oragainst the establishment of the HID, the boundaries of the HID, the area of benefitwithin the HID, the annual assessment to be levied, or the furnishings of specified typesof improvements or activities including, but not limited to, employing a lodgingoperations 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 protestmay be made orally or in writing by any interested person, but only those protestssubmitted by those lodging operations that would pay the assessments under the proposedHID will be counted for the purpose of determining a majority protest. Oral protests maybe received at the hearing. Protests also may be submitted by mail or in person (by 5:00p.m. on Monday, August 6, 2012), to the City Clerk at Carmel City Hall, located onMonte Verde Street between Ocean and 7th Avenues, Carmel, California 93921. If, atthe conclusion of the public hearing, written protests are received from the owners oflodging operations in the proposed area which will pay 50 percent or more of theassessments proposed to be levied and protests are not withdrawn so as to reduce theprotests to less than that 50 percent, the HID will not be established and cannot bereconsidered for a period of one year. A written protest must include (i) A statement that

89


9/17

it is a protest against the formation of the HID, the boundaries, the area of benefit, annualassessment, or the furnishing of specified types of activities or improvements includingbut not limited to employing a lodging operations manager or recovery of City costs fornoticing, meeting(s), and hearing(s); (ii) the name of the record owner of the lodgingoperation who is submitting the protest; (iii) the identity of the lodging operation, by

street location or assessors parcel number (APN) to which the protest is made; (iv) thenumber of lodging units within the lodging operation; and (v) the original signature andlegibly 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 ofspecified types of improvements or activities including, but not limited to, employing alodging operations manager or recovery of City costs for noticing, meeting(s) andhearing(s) on this matter, please contact City Clerk Heidi Burch at City Hall, Carmel-by-the-Sea, located on Monte Verde Street between Ocean Avenue and Seventh Avenue, bymail at PO Box CC, Carmel, California 93921, by phone at (831) 620-2000, or by e-mail

[email protected].

90
mailto:[email protected]:[email protected]:[email protected]:[email protected]


10/17

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-Seadeclaring its Intention to Establish the Carmel Hospitality Improvement District;

WHEREAS, Resolution No. 2012-XX was published and copies thereof wereduly mailed and posted as required by the applicable provisions of the CaliforniaGovernment and Streets and Highways Codes; and

WHEREAS, pursuant to Resolution No. 2012-XX, a public meeting concerningthe 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 testimonyconcerning the proposed district was received and considered; and

WHEREAS, the City Council determined that there was no majority protestwithin the meaning of Streets and Highways Code Section 36525, as written protestswere 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 leviedon each lodging operation. For purposes of determining the applicable majority protestfigure for the initial formation of the district, the proposed assessment to be levied wascalculated based on the assessment rate multiplied by the most recent available data forthe lodging operations gross lodging revenues as reported to the City during fiscal year2010-11.

91


11/17

NOW, THEREFORE, BE IT RESOLVEDTHAT THE CITY COUNCIL OF THECITY 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 tobe 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 OFCARMEL-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

92


12/17

EXHIBIT A

CMC ______ Establishing the Carmel Hospitality Improvement District

Section 1. Pursuant to Streets and Highways Code Sections 36500 et seq. and anysubsequent amendments, the City of Carmel-by-the-Sea Hospitality Improvement Districtis hereby established in the City of Carmel-by-the-Sea and all lodging operations in theHID 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 lodgingoperations within the HID will be benefited by the activities funded by assessments to belevied.

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 ImprovementDistrict Law.

A. City Council shall mean the City Council of the City of Carmel-by-the-SeaB. 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 chargesimposed on occupants of occupied rooms including but not limited to resort fees,housekeeping gratuities and utility surcharges. Notwithstanding the foregoingsentence, occupancies by federal government employees on government businessfor 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 roomrental revenue for the purpose of determining the amount of the transientoccupancy 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 ofthe Carmel-by-the-Sea Municipal Code, which pays transient occupancy tax tothe 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 inthe capacity of owner, lessee, sublessee, mortgagee in possession, licensee or anyother capacity. Where the operator performs its functions through a managingagent of any type or character other than an employee, the managing agent shall

93


13/17

also be deemed an operator for the purposes of this and shall have the same dutiesand liabilities as his/her principal. Compliance with the provisions of this chapterby either the principal or the managing agent shall however be considered to becompliance by both.

Authorized Uses.The purpose of forming the HID as a business improvement area under the Law isto provide revenue to defray the costs of services, activities and programs promotingtourism that will benefit the operators of lodging operations in the HID through thepromotion of lodging operations and the City of Carmel-by-the-Sea for small conferencesand groups. It is the intent of this chapter to provide a supplemental source of funding forthe promotion of group business in the HID and it is not intended to supplant any otherexisting sources of revenue that may be used by the City of Carmel-by-the-Sea for thepromotion of tourism. The specific services, activities and programs to be provided bythe HID are as follows:

A.

The general promotion of tourism with the HID shall include costs of programsand physical improvements as specified in the business plan to be adoptedannually;

B. The marketing of conference, group, and vacation business that benefits localtourism and the local lodging industry in the district;

C. The marketing of the HID to the travel industry in order to benefit local tourismand 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 assessmentshall be levied against all lodging operations, existing and future, within theboundaries of the business improvement district with the city of Carmel-by-the-Sea. The assessment shall be collected bimonthly, based on the gross lodgingrevenues for the previous two months. New lodging operations within theboundaries shall not be exempt from the levy of assessment.

94


14/17

B. Each operator shall, on or before the last day of the month following the close ofeach calendar month, or at the close of any longer period which may beestablished by the City Administrator, make a return to the City Administrator, onforms provided by him/her, of the total gross lodging revenues charged andreceived for occupancies in the lodging operation. The return shall be made

whether or not gross lodging revenues have been charged during the month. Atthe time the return is filed, the full amount of the assessment shall be remitted tothe City Administrator. The City Administrator may establish shorter reportingperiods for a lodging operation if he/she deems it necessary in order to insurecollection of the assessment and he/she may require further information in thereturn.

C. If any operator shall fail or refuse to make, within the time provided in thischapter, any report and remittance of said assessment or any portion thereofrequired by this chapter, the City Administrator shall proceed in such manner ashe/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 procuresuch facts and information as he/she is able to obtain upon which to base theassessment imposed by this chapter and payable by any operator who has failed orrefused to make such report and remittance he/she shall proceed to determine andassess against such operator the assessment, interest, and penalties provided forby this chapter. In case such determination is made, the City Administrator shallgive a notice of the amount so assessed by serving notice personally or bydepositing it in the United States mail, postage prepaid, addressed to the operatorso assessed at his/her last known place of address.

D. Such operator may within ten days after the serving or mailing of such noticemake application in writing to the City Administrator for a hearing on the amountassessed. If application by the operator for a hearing is not made within the timeprescribed, the assessment, interest and penalties, if any, determined by the CityAdministrator shall become final and conclusive and immediately due andpayable. If such application is made, the City Administrator shall give not lessthan five days written notice in the manner prescribed herein to the operator toshow cause at a time and place fixed in said notice why said amount specifiedtherein should not be fixed for such assessment, interest and penalties. At suchhearing, the operator may appear and offer evidence why such specifiedassessment, interest, and penalties should not be so fixed. After such hearing theCity Administrator shall determine the proper assessment to be remitted and shallthereafter give written notice to the person in the manner prescribed to be remittedand shall thereafter give written notice to the person in the manner prescribedherein of such determination and the amount of such assessment, interest andpenalties.

95


15/17

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 ofthree years, all records as may be necessary to determine the amount of suchassessment 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 allreasonable times. To conduct such inspections, the City Administrator may utilizethe services of City employees or of outside firms or persons such as certifiedpublic accountants or auditors, each of whom shall possess full city authority toconduct said inspections.

Annual review of assessment

All of the assessments imposed pursuant to this chapter shall be reviewed by theCarmel City Council annually in April of each year, based upon the annual reportprepared by the Advisory Board. The Advisory Board shall complete its report not laterthan 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 atthe conclusion of the public hearing, there are written protests by the owners of thelodging operations within the HID that would pay fifty percent (50%) or more of the totalassessments 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 ofthe 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 shallbegin 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 theassessments. The total revenue from the levy of assessments with the HID shall not beused to provide improvement or activities outside the HID or for any purpose other thanthe purpose specified in the resolution of intention. The proceeds of the assessment shallbe spent to administer marketing and visitor programs to promote the City of Carmel as atourism 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 insubsequent years in which HID assessments are levied as long as they are used consistentwith the requirement of this Section. The Carmel City Council shall considerrecommendations made by the Advisory Board as to the use of assessment revenues.

96


16/17

Delinquency, penalty and interest

A. Any lodging operation that fails to remit any assessment imposed by thisordinance within the time required shall pay a penalty of ten (10%) percent of theassessment 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 dateon which the remittance first became delinquent shall pay a second delinquencypenalty of ten percent of the amount of the assessment in addition to the amountof the assessment and the ten percent penalty first imposed.

B. In addition to the penalties imposed in this chapter, any operator who fails toremit any assessment 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 assessment,exclusive of penalties, from the date on which the remittance first becamedelinquent until paid. Any and all remedies available to the City of Carmel-by-the-Sea for other non-payment of assessments shall be applicable in the event ofnon-payment of an assessment under this chapter. Any penalty and interest fees

collected from a lodging operation due to delinquency shall be remitted to theCity 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 beliable to an action brought in the name of the city for the recovery of suchamount.

Advisory board.

The Advisory Board shall review the implementation of this chapter, theimplementation of programs and activities funded through this chapter, and advise theCity Council on the amount of the districts assessments and on the services, programs,and activities to be funded by the assessments, and shall perform such other duties asrequired by the Law, including preparing the Annual Report. The Annual Report shall besubmitted to the City Council no later than the last day of March each year. The CityCouncil shall ensure that the Advisory Board has timely access to all public informationregarding collection, disbursement, and uses of the funds collected under the terms of thisordinance.

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, andafter adoption of an ordinance in compliance with the Law.

97


17/17

Criminal penalties

In addition to the civil penalties and action set forth in this chapter for failing tocomply with the provisions of this chapter, the following criminal sanctions may beutilized 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 ainfraction and shall be punishable therefore by a fine of not more than fivehundred dollars per occurrence.

B. Any operator or other person who fails or refuses to furnish on time any returnrequired to be made, or who fails or refuses to furnish a supplemental return orother data required by the City Administrator, or who renders a false or fraudulentreturn or claim, is guilty of an infraction, and is punishable as set out in thissection.

C. Any person required to make, render, sign, or certify any report or claim whomakes 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 ofan infraction and is punishable as set out in this section.

Section 5.

This ordinance shall not be interpreted in any manner to conflict with controllingprovisions of state law, including, without limitation, the Constitution of the State ofCalifornia. If any section, subsection or clause of this ordinance shall be deemed to beunconstitutional or otherwise invalid, the validity of the remaining sections subsectionsand clauses shall not be affected thereby. If this ordinance, or any section, subsection orclause of this ordinance shall be deemed unconstitutional or invalid as applied to aparticular appeal, the validity of this ordinance and its sections, subsections and clausesin 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, shallenter the same in the book of original ordinances of the City and shall make a minute ofthe passage and adoption thereof in the records of the meeting at which the same ispassed and adopted. Before the expiration of 30 days after passage of this ordinance, theCity Clerk shall cause the same to be posted in three public places with in the City ofCarmel-by-the-Sea.

98

carmel hospitality improvement district

Documents