Chapter 12.42


12.42.010    Title.

12.42.020    Definitions.

12.42.030    Authorized uses.

12.42.040    Boundaries.

12.42.050    Levy of assessment and exemptions.

12.42.060    Annual review of assessment.

12.42.070    Imposition of assessment.

12.42.080    Use of revenue.

12.42.090    Delinquency, penalty, and interest.

12.42.100    Advisory body.

12.42.110    Modification or disestablishment.

12.42.010 Title.

This chapter shall be known as the city of San Luis Obispo tourism business improvement district law. (Ord. 1517 § 3 (part), 2008)

12.42.020 Definitions.

“City advisory body” shall mean the advisory body appointed by the city council, pursuant to this chapter.

“City council” shall mean the city of San Luis Obispo city council.

“District” shall mean the city of San Luis Obispo tourism business improvement district (or “TBID”) created by this chapter and as delineated in Section 12.42.040.

“Hotel” shall mean any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, motel, bed and breakfast, or vacation home and pays transient occupancy tax. For purposes of this chapter the definition of “hotel” shall not include RV parks.

“Law” shall mean the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 et seq., as amended.

“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 also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his 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.

“Transient” means any person who exercises occupancy or who is entitled to occupancy, by reason of concession, permit, right of access, license, or other agreement for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. (Ord. 1517 § 3 (part), 2008)

12.42.030 Authorized uses.

The ordinance codified in this chapter is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination. It is the intent of this chapter to provide a supplemental source of funding for the promotion of tourism in the district and it is not intended to supplant any other existing sources of revenues which may be used by the city of San Luis Obispo for the promotion of tourism. The specific services, activities and programs to be provided by the district are as follows:

A. The general promotion of tourism within the district is to include costs as specified in the business plan to be adopted annually by the city council.

B. The marketing of the district to the travel industry in order to benefit local tourism and the local hotel industry in the district. (Ord. 1517 § 3 (part), 2008)

12.42.040 Boundaries.

The boundaries of the TBID shall be the boundaries of the city of San Luis Obispo. (Ord. 1517 § 3 (part), 2008)

12.42.050 Levy of assessment and exemptions.

The TBID shall include all hotels located within the TBID boundaries. The assessment shall be levied on all hotels, existing and future, within the city of San Luis Obispo based upon two percent of the paid gross rent charged by the operator per night for all transient occupancies. The assessment shall be collected monthly, based on two percent of the gross rent charged by the operator per night in revenues for the previous month. New hotels within the boundaries shall not be exempt from the levy of assessment authorized by Section 36531 of the law. Assessments pursuant to the TBID shall not be included in gross room rental revenue for the purpose of determining the amount of the transient occupancy tax. The value of rooms for extended stays of more than thirty consecutive calendar days shall be exempt from the levy of assessment. (Ord. 1517 § 3 (part), 2008)

12.42.060 Annual review of assessment.

All of the assessments imposed pursuant to this chapter shall be reviewed by the city council annually, based upon the annual report prepared by the advisory body appointed pursuant to this chapter and Sections 36530 and 36533 of the law. After approval of the annual report the city council shall follow the hearing process as outlined in Section 36534 of the law. At the public hearing the city council shall hear and consider all protests. If written protests are received from hotel businesses in the district paying fifty percent or more of the 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 business. (Ord. 1517 § 3 (part), 2008)

12.42.070 Imposition of assessment.

The city council hereby levies and imposes and orders the collection of an additional assessment to be imposed upon hotels in the district described above, which shall be calculated pursuant to Section 12.42.050. Such levy shall begin on October 1, 2008. (Ord. 1520 § 1, 2008)

12.42.080 Use of revenue.

The improvements and activities to be provided by the TBID will be funded by the levy of the assessments. The revenue from the levy of assessments within the TBID shall not be used to provide improvements or activities outside the TBID or for any purpose other than the purposes specified in the resolution of intention. All funds shall be expended consistent with the purposes of this act. Funds remaining at the end of any TBID term may be used in subsequent years in which TBID assessments are levied as long as they are used consistent with the requirements of this section. The city council shall consider recommendations made by the city advisory body created by Section 12.42.100 as to the use of assessment revenue. (Ord. 1517 § 3 (part), 2008)

12.42.090 Delinquency, penalty, and interest.

Any hotel that fails to remit any assessment imposed by this chapter within the time required shall pay a penalty in accordance with the policies, regulations, and ordinances of the city of San Luis Obispo. Any and all remedies available to the city of San Luis Obispo for nonpayment of assessments or taxes shall be applicable in the event of nonpayment of an assessment under this chapter. (Ord. 1517 § 3 (part), 2008)

12.42.100 Advisory body.

An advisory body comprised of seven members is hereby created to carry out the functions of an advisory board under Section 36530 of the law. Said advisory body shall be referred to as the tourism business improvement district board or TBID board. The members of the TBID board shall be appointed following the city’s recruitment guidelines for advisory bodies. All applicants and members must be operators of hotels within the district, or employed by the operator of such a hotel. The length of the term for each individual member of the TBID board shall follow the guidelines of all city advisory bodies and is limited to eight subsequent years. Members of the TBID board shall serve in good standing; failure to pay assessments levied under this chapter or to pay transient occupancy taxes to the city constitutes loss of good standing and shall result in removal from the TBID board. Members of the TBID board shall serve at the pleasure of the city council and may be removed by the city council at any time. If a member no longer represents the lodging establishment for which he or she was selected to the TBID board, his or her seat will be vacated and a new member will be appointed. The TBID 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 required by Section 36533 of the law. The annual report shall be submitted to the city council no later than ninety days before the new budget year. The city council shall ensure that the TBID board has timely access to all public information regarding collection, disbursement, and uses of the funds collected under the terms of this chapter. (Ord. 1536 § 2, 2009)

12.42.110 Modification or disestablishment.

The city council, by ordinance, may modify the provisions of this chapter and may disestablish the district or parts of the district, 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 area, 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 which pay fifty percent or more of the assessments in the district file a petition with the clerk of the city of San Luis Obispo 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 district. 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 protest is made by the operators of hotels which pay fifty percent or more of the assessments in the district, or in the district as it is proposed to be enlarged.

In the event the resolution proposes disestablishment of the district, the city council shall disestablish the district; unless at such hearing, protest against disestablishment is made by the operators of hotels paying fifty percent or more of the assessments in the district. (Ord. 1517 § 3 (part), 2008)