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HomeMy WebLinkAboutResolution 2004-191 N.C.S. 10/04/2004 Resolution No.2oo4-191 N.C.S. of the City of Petaluma, California APPROVING AGREEMENT FOR COLLECTION OF ASSESSMENTS FOR SONOMA COUNTY TOURISM BUSINESS IMPROVEMENT AREA WHEREAS, the Board of Supervisors of the County of Sonoma is, or shortly will be, considering the adoption of an Ordinance establishing the Sonoma County Tourism Business Improvement Area (SCTBIA) in accordance with the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code Sections 36500, et seq.); and, WHEREAS, the SCTBIA is being formed to establish an assessment process to collect 2% assessment on all lodging establishments -with lodging rentals in excess of $350,000 annually; and, WHEREAS, the City of Petaluma City Council has approved by Resolution No. 2004- 123 N.C.S. on July 12, 2004, inclusion of the territory of the City of Petaluma within the proposed Sonoma County Tourism Business Improvement Area; and, WHEREAS, the proposed County Ordinance establishes that each jurisdiction within the County of Sonoma act as the billing and collections agent for lodging establishments within its jurisdiction; and, WHEREAS, the County Ordinance provides that an administrative fee of actual costs not to exceed 2% of the Assessment collected (first two years 2% of collections) be paid to each jurisdiction doing the billing/collections; and, WHEREAS, the City of Petaluma has agreed to process the billings and collections in accordance with the County Ordinance; and, WHEREAS, the County has provided an Administrative Agreement for Collection of Assessment for Sonoma County Tourism Business Improvement Area for each jurisdiction. Resolution No. 2004-191 N.C.S. NOW, THEREFORE, BE IT RESOLVED by the Petaluma City Council as follows: 1. The above recitals are true and correct and hereby declared to be finding of the Petaluma City Council. 2. That the Council of the City of Petaluma approves "The Administrative Agreement for Collection of Assessments for Sonoma County Tourism Business Improvement Area" as provided in "Exhibit A." 3. That the City Council authorizes the City Finance Director to execute the agreement for and on behalf of the City of Petaluma. Under the power and authority conferred upon this Council by the Charter of said City. REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to Council of the City of Petaluma at a (Regular) (Adjourned) (Special) meeting o on the .........4.`h day of ........QCxc11Z~I:................................, 20.Q4., by the following vote: •••••••••••••y••••••• Ci Attorne AYES: Mayor Glass, Healy, Vice Mayor Moynihan, O'Brien, Thompson, Torliatt NOES: None ABSENT: Harris , ATTEST: City Clerk Mayor Council File Res. No.......2004-19i ........N.GS. I~';~.I~~f~l'j:.~ ADMINISTRATIVE AGREEMENT FOR COLLECTION OF ASSESSMENTS FOR SONOMA COUNTI' TOURISM BUSINESS IMPROVEMENT AREA This Agre:;rnent for Collection of Assessments ("Agreement"), dated for convel~ience ~~OQ4, is made between the City of ("City") and the CoLUty of Sonoma ("Co~zntr"). RECITALS A. Pursuant to Ordinance # ("the BIA Ordinance"), the County has formed a Business Improvement Area ("BIA") pursuant to the Parking and Business Improvement Area Law of 1989 for the promotion of tourism in Sonoma County. Puusuant to the BIA Ordinance, a levy of two percent (2%) of rent charged by lodging operators is assessed. ("t11e-BIA assessments"} on lodging operators generating total rent greater than $350,000 in the preceding calendar year. The City has consented to the formation of the BIA and to the collection of BIA assessments from lodging operators located within. the City. B. The BIA Ordinance contemplates that the collection of BIA assessments from lodging operators within the City may be pei•forn~ed by the City pursuant to an administrative agreement wide the County. The BTA Ordinance permits the City to retain from BIA assessments the City's actual costs of collection and administration, not to exceed two percent (2%} of the BIti assessments collected. C. City has agreed to collect BIA assessments from lodging operators within its incorporated area, and City and County desire to memorialize the collection and administrative Resolution No. 2004-191 N.C.S. Page functions to be performed City as contemplated by the BI,4 Ordinance. WHEREFORE, the City and County agree as follows: AGREEMENT 1. Collection of BI_A Assessments: Pursuant to and in conformance with the terms of the BIA Ordinance, City shall collect BIA assessments from lodging operators within the incorporated area of the City. 2. Frequency of Collection. City shall collect BIA assessments from lodging operators on a quarterly basis, no later than the last day of the month following the end of a calendar quarter. City may collect BIA assessments in conjunction with City's collection of a.ny transient occupancy tax (`'TOT") imposed by City on lodging operators. 3. Registration. City shall require each lodging operator within its incorporated area to provide such information as City shall deem necessary to collect BIA assessments. Information previously provided by a lodging operator to a City in connection with TOT collections may be used by the City for this plupose. 4. Remittance and Reporting to County. City shall remit BIA assessments collected from lodging operators, less any administrative fee permitted by the BIA Ordinance and this Agreement, to the Sonoma County Tax Collector within 15 business days of collection. City's remittance of fees shall be accompanied by report showing, at a minimtun, the name of each lodging operator, the gross rent reported by each lodging operator during the quarter, the amount of any exemptions claimed by each lodging operator, the BIA assessments collected from each lodging operator, the amount of adminstrative fee withheld by the City, and the total net BIA assessment remitted to the Sonoma County Tax Collector by the City. Resolution No. 2004-191 N.C.S. Page 4 s. Delinquency and Collection. If a lodging operator fails to report and remit BIA assessments when due, City shall assess and determine delinquencies, penalties, and interest, and take such actions as are necessary with respect to the assessment and determination of delinquencies, penalties, and interest as are required and provided in sections 33-8 and 33-9 of the BIA Ordinance. 6. CooUeration with County. 111 the event a lodging operator appeals any assessment. by the City pursuant to section 33-10 of the BIA Ordinance, or in the event the County institutes legal action to collect ally delinquent assessments, penalties, or interest owed by a lodging operator within the City pursuant to section 33-11 of the BIA Ordinance, the City shall cooperate with the Coluity in connection wit11 such proceedings by providing documentation and witnesses reasonably necessary to the conduct of such proceedings. 7, Records aid Inspection. City shall retain all records relating to its collection of BIA assessments ,and its performance Linder this Agreement for aperiod of tlu-ee years, and shall allour. County to inspect and copy such records upon County's reasonable request. If City performs an audit of any lodging operator to determine whether the lodging operator has complied with the City's TOT ordinance or the BIA Ordinance, City shall provide a copy of such audit to County upon request..Nothing in this Agreement shall prohibit the County from conducting an independent audit of lodging operators within the City for purpose of determining compliance with the BIA Ordinance. 8. Documentation of Eli ibility for Exemption. By January 31, 2005, City shall provide County with a list of all lodging operators within the City's incorporated area and the rent collected b}~ each lodging operator during calendar year 2004, for the purpose of determining whether each lodging operator is subject to assessment under section 33-5(a) of the BIA Ordinance. Resolution No. 2004-191 N.C.S. Page 5 9. Compensation. City may deduct from BIA assessments remitted to County under this Agreement the City's actual costs of collecting BIA assessments al7d administering this Agreement, up to a maximum of two percent (2%) of the BIA assessments collected by the City. Notwithstanding the foregoing, for the first two years the BIA exists, the City may deduct two percent (2%) of BIA assessments collected. 10. Term; Termination. The term of this Agreement shall commence on the date it is executed by both County and City, and shall continue tuZtil December 31, ?006. Notwithstanding the foregoing, this Agreement shall continue for additional one-year calendar year terms unless City or County notifies the other party of its intent to terminate the Agreement at the end of the calendar year. Such notice must be given no later than sixty (60) days before the end of the calendar year for termination to be effective. This Agreement shall also terminate. 90 days after (a) the effective date of any modification to the BIA that excludes the City from the boundaries of the BIA or (b) the effective date of any disestablishment of the BIA pursuant to section 33-17 of the BIA Ordinance. 11. Amendments. This Agreement may be amended only by a writing executed by both City and County. 12. This agreement may be amended by the City aiid the County in writing, signed by both the City and the County. 7. Termination Resolution No. 2004-19} N.C.S. Page C l?ither party may terminate this agreement upon ninety days written notice to the other p~y• Term The terns of this agreement shall be for one year commencing ,and shall be automatically extended for additional one year periods subject to termination as provided in paragraph 7. 9. Notices and Payments All notices and payments to the parties shall be addressed as follows: City: County: Treasurer-Tax Collector County of Sonoma Post Office Box 3879 Santa-Rosa,..CA 9540? City of County of Sonoma By By Finance Director Treasurer-Tax Collector Date Date Resolution No. 2004-191 N.C.S. Page 7