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