carmel hospitality improvement district 12-01-2015

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179

CITY OF CARMEL BY THE SEA

AGENDA BILL

TO:

Honorable Mayor and Members

of

the City Council

Mike Calhoun, Interim City Administrator

FROM: Sharon Friedrichsen, Director of Budget and Contracts

AB 1070

December 1 2015

Consent Calendar

SUBJECT: Public Meeting on Establishing the Carmel Hospitality Improvement District; Adoption

of Resolution Declaring City Intention to Disestablish the Carmel Hospitality

Improvement District and First Reading of an Ordinance Disestablishing the

Carmel Hospitality Improvement District

AMOUNT OF EXPENDITURE N/A

AMOUNT BUDGETED N/A

APPROPRIATION REQUIRED N/A

RECOMMENDATION

1. Hold a public meeting on the establishment

of the Carmel Hospitality Improvement District.

2 . Adopt a Resolution Declaring the City's Intention to Disestablish the Carmel Hospitality Improvement

District.

3. Introduce the first reading of an Ordinance Disestablishing the Carmel Hospitality Improvement

District.

SUMMARY

On November 2, 2015, the Council adopted a Resolution declaring the City's intention to establish the

Carmel Hospitality Improvement (CHID) , which will be formed under the Property and Business

Improvement District Law of 1994. This action initiated a sequence of procedural requirements

necessary to move forward in forming the new District. One such requirement is to hold a public

meeting to hear testimony on establishing the CHID and levying assessments, with a public hearing on

this topic also scheduled for January 5 2016. Under the 1994 Act CHID, lodging establishments would

be assessed 1 of gross short-term (stays less than 31 days) room rental revenue to be used for sales

promotion and marketing programs to market assessed lodging businesses in Carmel as tourist,

meeting and event destinations.

s

a parallel process to the formation of the 1994 Act CHID, actions will also need to occur to

disestablish the existing hospitality improvement district, which was created in 2012 under the Parking

and Business Improvement Area Law of 1989. It is recommended that Council adopt the resolution of

intention to disestablish the 1989 Act Carmel-by-the-Sea Hospitality Improvement District and hold the

first reading of an ordinance disestablishing the District. Pending the outcome of the protest hearing on



180

January

5

2016, the current, or 1989 Act, District would cease to exist on February 29, 2016 and the

new, or 1994 Act, CHID would become effective on March

1

2016.

Timeline of Process:

November

3:

December 1:

December

1:

December

1:

January 5:

January 5:

February 29:

March 1:

Council adopts resolution of intention to form new CHID

Council holds new CHID public meeting

Council adopts resolution

of

intent to disestablished old CHID

Council conducts first reading of disestablishment ordinance

Council holds public hearing on new CHID; I f no majority protest at the close of

public hearing Council adopts new CHID resolution of formation

Council conducts second reading of disestablishment ordinance

Old CHID ceases to exist

New CHID is effective

PRIOR CITY COUNCIL ACTION

Council approved Resolution 2015-096 Declaring the City s Intention to Establish the Carmel Hospitality

Improvement District on November

2

2015.

ATTACHMENTS

1. Resolution Declaring City s Intention

to

Disestablish the Carmel Hospitality Improvement District

2. Ordinance Disestablishing the Carmel Hospitality Improvement District {First Reading)

l LtL--

Date _ ~ ~ ~

Mike Calhoun, Interim City dministrator



181

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

RESOLUTION 2015-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA DECLARING ITS INTENTION TO

DISESTABLISH THE CARMEL HOSPITALITY IMPROVEMENT DISTRICT

WHEREAS, on August 7, 2012, the City Council adopted Ordinance 2012-05

establishing the Carmel Hospitality Improvement District (herein called District ) ; and

WHEREAS, the Parking and Business Improvement Area Law of 1989 (herein

called 89 Law ), Streets and Highways Code §36500

et

seq., allows the City Council to

disestablish the District; and

WHEREAS, the Council now intends to disestablish the District.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA DOES ORDAIN AS FOLLOWS:

1 The recitals set forth herein are true and correct.

2. The City Council declares its intention to disestablish the Carmel Hospitality

Improvement District.

3 The time and place for a public hearing on the disestablishment

of

the District

is set for January 5, 2016 at 4:3 p.m. or as soon thereafter as the matter may be

heard at the Council Chambers located at City Hall on the Eastside

of

Monte

Verde between Ocean and Seventh Avenues, Carmel-by-the-Sea , CA, 93921.

4. The City Council intends to disestablish the District concurrently with forming a

new hospitality improvement district under the Property and Business

Improvement District Law of 1994, Streets and Highways Code §36600 et seq.

The proposed new district will contain the same businesses, therefore the City

Council proposes transferring any remaining revenue to the new district, to be

used for marketing and promotions efforts that benefit those businesses which

paid the assessment.

5

The City Clerk is directed to provide notice of the public hearing in accordance

with Streets and Highways Code §36523.

6 This resolution shall take effective immediately upon its adoption by City

Council.



182

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

THE-SEA this 1st day of December 2 15 by the following roll call vote :

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

JASON BURNETT MAYOR

ATTEST:

City Clerk



183

CITY OF CARMEL BY-THE-SEA

CITY COUNCIL

ORDINANCE 2015-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA DISESTABLISHING THE CARMEL HOSPITALITY

IMPROVEMENT DISTRICT

WHEREAS, on August 7 2012, the City Council adopted Ordinance 2012-05

establishing the Carmel Hospitality Improvement District; and

WHEREAS, the Parking and Business Improvement Area Law of 1989, Streets

and Highways Code §36500 et seq . allows the City Council to disestablish the District.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

DOES ORDAIN AS FOLLOWS:

SECTION 1. AUTHORITY.

This ordinance is adopted pursuant to the Parking and Business Improvement

Area Law of 1989 , Streets and Highways Code §36500 et seq. and Resolution 2015 _

adopted by the City Council on December 1, 2015 entitled a Resolution of the City

Council of

the City of Carmel-by-the-Sea Declaring its Intention to Disestablish the

Carmel Hospitality Improvement District. Such resolution was published and mailed as

provided by law and a public hearing was held by the City Council at is regular meeting

on January 5

2016,

at

which time all persons desiring to be heard and all objections

made or filed were fully heard. The City Council duly concluded the hearing on January

5 2016.

SECTION II. AREA ESTABLISHED.

The City Council finds and determines that the public convenience and necessity

require disestablishment

of

the Carmel Hospitality Improvement District for reasons

given in the Resolution of Intention.

Pursuant to §36550 of the Parking and Business Improvement Law of 1989, the

Carmel Hospitality Improvement District is hereby disestablished.

SECTION Ill. EFFECTIVE DATE.

This Ordinance shall take effect on February 29, 2016.

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

THE-SEA this 1srday of December 2015 by the following roll call vote:



184

YES:

COUNCIL MEMBERS:

NOES:

COUNCIL

MEMBERS

:

BSENT

:

COUNCIL MEMBERS:

JASON BURNETT

M YOR

TTEST

:

City Clerk

carmel hospitality improvement district 12-01-2015

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