Chapter 16.14
CORONADO TOURISM IMPROVEMENT DISTRICT
Sections:
16.14.020 Establishment of the district.
16.14.030 Imposition of assessment.
16.14.050 Collection and reporting of assessment.
16.14.060 Penalty for delinquent payment.
16.14.080 Annual report and review of assessments.
16.14.090 Use of assessment proceeds.
16.14.100 Modification or disestablishment.
16.14.010 Intent and purpose.
This chapter shall be known as the “Coronado Tourism Improvement District.” This chapter recognizes the importance of the tourism industry to the economic well-being of the City. The purpose for the formation of the district is to provide stable revenue to defray the costs of marketing and promotions services, activities and programs that will specifically benefit the hotel businesses and the tourist-serving businesses in the district.
It is the intent of this chapter to provide a supplemental source of funding for the marketing and promotion of tourism in the district and it is not intended to supplant any other existing sources of revenue that may be used by the City for the marketing and promotion of tourism. Therefore, the City Council finds and declares that the establishment of the district will help promote the public health, morals, safety and welfare of the City, as provided in this chapter. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.020 Establishment of the district.
Pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq., (the Act) a business improvement district area designated as the Coronado Tourism Improvement District I and II (the CTID) is hereby created and established. All hotels in the district established by this chapter shall be subject to any amendments made hereafter to the Act or to other applicable laws. The boundaries of the CTID are the boundaries of the City of Coronado. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.030 Imposition of assessment.
The City Council hereby levies, imposes and orders the collection of two separate one-half percent assessments to be imposed upon certain hotels within the CTID, which shall be calculated pursuant to CMC 16.14.040. The current one-half percent levy began on July 15, 2010. The new one-half percent assessment shall begin on August 1, 2015. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.040 Levy of assessment.
The CTID will include all hotels consisting of 90 rooms or more, existing or future, within the boundaries of the CTID. The term “hotel” shall have the meaning defined in CMC 16.12.020(B). The assessments shall be levied based upon two separate one-half percent surcharges on the gross room revenues collected per occupied room per night for all transient occupancies as defined in CMC 16.12.020(C) and (D). The term “gross room revenues” shall be defined as “the total consideration received for occupancy of a room, or portion thereof, valued in money, whether received in money or otherwise, including all receipts, cash, credits, and property of any kind or nature, without any deduction therefrom whatsoever.” Gross room revenues shall exclude transient occupancy taxes, paid occupancies by exempt government employees on official business pursuant to CMC 16.12.040, and paid occupancies beyond the twenty-fifth day pursuant to CMC 16.12.020(D). New hotels consisting of 90 rooms or more within the CTID boundaries will not be exempt from the levy of assessment as authorized by Section 36531 of the California Streets and Highways Code. Pursuant to the City of Coronado’s transient occupancy tax ordinance, assessments pursuant to the CTID shall not be included in gross room rental revenue for the purpose of determining the amount of the transient occupancy tax. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.050 Collection and reporting of assessment.
A. The CTID assessments will be collected monthly by the assessed hotels based on two separate one-half percent surcharges on the gross room revenues per occupied room per night for the previous month. The amount of the CTID assessments, if passed on to each transient, shall be separately stated from the amount of the rent and other taxes charged, and each transient shall receive a receipt for payment from the operator. The payment of CTID assessments will be reported to the City in a separate remittance from regular transient occupancy taxes. The City will provide the assessed hotels the form for recording the CTID assessments. The proceeds from each separate CTID assessment will be recorded in a separate fund by the City.
B. Commencing upon the date the ordinance establishing the CTID is adopted by the City Council, a 90-day grace period will be afforded to the assessed hotels during which time the assessed hotels may waive the one-half percent surcharge on the gross room revenues for those convention or conference contracts in effect prior to the adoption of the ordinance. A summary report will be developed in consultation with the City Treasurer identifying the deferred assessment amounts during this period.
C. It shall be the duty of the assessed hotels to keep and preserve, for a period of three years, all business records as may be necessary to determine the amount of such separate assessment for which the assessed hotel is liable for payment to the City. The City shall have the right to inspect such records at all reasonable times and to apply auditing procedures necessary to determine the amount of assessment due.
D. Pursuant to CMC 16.12.220, each assessed hotel will withhold two percent from the total amount due to the City Treasurer in the same manner and for the same purpose as regards to recovering administrative costs for TOT collection. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.060 Penalty for delinquent payment.
Any hotel that fails to remit any assessment imposed by this chapter within the time required shall pay a penalty of 10 percent of the assessment amount in addition to the assessment. Any additional collection costs incurred by the City or collection agent acting on behalf of the City shall be added to the assessment amount due. Such additional costs may include, but are not limited to, attorney fees, court costs, agent fees, and servicing fees. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.070 Advisory board.
A. The City Council shall appoint an Advisory Board pursuant to Section 36530 of the California Streets and Highways Code in order to make recommendations to the City Council on the expenditure of revenues derived from the levy of each separate assessment, on proposed improvements and activities, and on the method and basis of levying each separate assessment. The Advisory Board exists for the duration of the CTID. If the CTID is disestablished for any reason, the Advisory Board shall also be dissolved unless the City Council directs otherwise. The Advisory Board will elect a Chairperson and Vice-Chairperson. The members of the Advisory Board shall be considered as non-paid volunteers. The Advisory Board shall meet no less than bi-monthly and shall be subject to the Ralph M. Brown Act (California Government Code Section 54950 et seq.). The Advisory Board shall keep records in compliance with the California Public Records Act, California Government Code Section 6250 et seq.
B. The CTID Advisory Board shall consist of nine members including a representative and alternate from the Hotel del Coronado, Glorietta Bay Inn, Loews Coronado Bay Resort, and Coronado Island Marriott Resort and Spa; a board representative and alternate from the Coronado Chamber of Commerce, Coronado MainStreet, Ltd., Coronado Historical Association/Visitor Center, and two at-large representatives. The City Council hereby makes a finding that CMC 2.30.030 does not apply with regard to representatives from the assessed hotels who serve on the Advisory Board. The representatives from the four assessed hotels and three community organizations will serve as standing members. The at-large members will serve a fixed term of three years in accordance with the City’s Ordinance No. 1546, provided the district is not disestablished before the passage of three years. Vacancies of at-large members will be filled in accordance with the Coronado Municipal Code. Each member of the Advisory Board will have equal voting weight on all matters before the Board. All Board decisions necessary to implement the annual report shall require four members of a quorum of the Board. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.080 Annual report and review of assessments.
The Advisory Board shall prepare an annual report for each separate one-half percent assessment in accordance with the requirements of Sections 36530 and 36533 of the California Streets and Highways Code. Upon approval of the annual report for each separate assessment, the City Council shall follow the procedures set forth in Section 36534 of the California Streets and Highways Code for the conduct of a public hearing on the assessments for the fiscal year referred to in the annual report. If written protests are received from hotels in the district paying 50 percent or more for each or either annual assessment, no further proceedings to continue the levy of assessments shall take place. The protests shall be weighted based upon the annual assessment for the prior year by each hotel. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.090 Use of assessment proceeds.
The Advisory Board shall prepare an annual report for each separate one-half percent assessment, specifying the expenses, services, activities, and programs to be funded by the assessment. Upon the City Council’s approval of the annual report, no portion of the revenues from the assessments within the district shall be used for any purpose other than for the purposes specified in the annual report, as approved by the City Council, or as modified by the City Council pursuant to compliance with Sections 36534 and 36535 of the California Streets and Highways Code. No portion of the revenues from the assessments within the district shall be used for activities outside of the district. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)
16.14.100 Modification or disestablishment.
The City Council, by ordinance, may modify the provisions of this chapter and may disestablish the CTID or parts of the CTID, after adopting a resolution of intention to such effect. Such resolution shall describe the proposed change or changes, or indicate that it is proposed to disestablish the CTID, and shall state the time and place of a hearing to be held by the City Council to consider the proposed action. If the operators of hotels that pay 50 percent or more for each or either assessment in the district file a petition with the City Clerk of the City of Coronado requesting the City Council to adopt a resolution of intention to modify or disestablish the district, the City Council shall adopt such resolution and act upon it as required by law. Signatures on such petition shall be those of a duly authorized representative of the operators of hotels in the CTID. In the event the resolution proposes to modify any of the provisions of this chapter, including changes in the existing assessments or in the existing boundaries of the district, such proceedings shall terminate if written protest is made by the operators of hotels that pay 50 percent or more of the assessments in the district. (Ord. 2050 § 1, 2015; Ord. 2013 § 1, 2010)