HomeMy WebLinkAboutResolution No. 14-C770
RESOLUTION NO. 14-C77
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, CALLING FOR THE PLACEMENT OF A GENERAL
TAX MEASURE TO BE HELD AT THE MARCH 3, 2015 GENERAL
MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED
VOTERS OF A PROPOSED ORDINANCE AMENDING THE CITY'S
TRANSIENT OCCUPANCY (ROOM) TAX BY INCREASING THE RATE
FROM 7.5% TO 10%, AND ADDRESSING ONLINE TRAVEL
COMPANY AND OTHER THIRD PARTY BOOKINGS, AND MAKING
VARIOUS CONFORMING CHANGES.
WHEREAS, pursuant to Section 9222 of the California Elections Code, the City Council
has authority to place propositions on the ballot to be considered at a Municipal Election; and
WHEREAS, pursuant to Article IV of Chapter 70 of the Azusa Municipal Code (A.M.C.
§§70-156 through 70-169), the City currently imposes a Transient Occupancy Tax (Room) Tax
("TOT") at the rate of seven and one-half percent (7.5%) upon guests of hotels and other
transient accommodations within the City; and
WHEREAS, the City Council desires to amend the Azusa Municipal Code to increase
the rate of the TOT from seven and one-half percent (7.5%) to ten percent (10%); and
WHEREAS, the City Council desires to amend the Azusa Municipal Code to allow for
the imposition and collection of the TOT on the full rent charged to a guest for hotel occupancy,
whether the occupancy is booked directly by the guest, through the guest's employer or agent, or
through online travel companies which enable guests to purchase occupancy via the Internet, or
by similar electronic means; and
WHEREAS, the TOT is a general tax the proceeds of which are deposited into the City's
general fund. The general fund pays for essential City services such as police protection, fire and
paramedic services, street operations and maintenance, library services, parks and recreation
services and general municipal services to the public; and
WHEREAS, on November 6, 1996, the voters of the State of California approved
Proposition 218 (California Constitution, Article XIIIC), an amendment to the State Constitution
which requires that all general taxes which are imposed, extended or increased must be
submitted to the electorate and approved by a majority vote of the qualified electors voting in the
election; and
WHEREAS, the amendments proposed in the attached ordinance which increase the rate
of the TOT constitute a tax "increase" subject to Proposition 218; and
WHEREAS, the amendments proposed in the attached ordinance which apply the TOT
rate to the total rent charged to a guest for occupancy in a hotel (including any retail markup and
other charges imposed through purchase of occupancy through an employer, agent or on-line
travel company) may also be characterized as an "increase" in the TOT under Proposition 218;
and
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WHEREAS, pursuant to Proposition 218 (California Constitution Article XIIIC, §2(b)),
any election for the approval of an increase to a general tax must be consolidated with a regularly
scheduled general election for members of the governing body of the local government; and
WHEREAS, pursuant to the Azusa Municipal Code, §2-1(a), the City's regular
municipal elections for the election of officers are held on the first Tuesday after the first
Monday in March of each odd -numbered year. Therefore, the next regularly scheduled General
Municipal Election for the election of members of the City Council will be held on Tuesday,
March 3, 2015; and
WHEREAS, the City Council desires to submit to the voters at the March 3, 2015
General Municipal Election one ballot proposition, entitled:
"Shall an ordinance amending the Azusa Municipal Code be adopted to increase
the rate of the Transient Occupancy (Room) Tax from 7.5% to 10%, and to apply
the Tax to all rent charged by hotel operators, including online travel companies,
for the transient occupancy of any hotel room, to help maintain general City
services such as police and fire protection, street operations and maintenance, and
library, parks and recreation services?"
WHEREAS, pursuant to Government Code §53724 ("Proposition 62"), a two-thirds
(2/3) vote of the City Council is required to place the Measure on the March 3, 2015 ballot.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. Findings. The City Council finds that all of the preceding recitals are true
and correct and are hereby incorporated and adopted as findings and determinations by the City
Council as if fully set forth herein.
SECTION 2. By adoption of Resolution No. 14-C68 on October 6, 2014, the City
Council has called and given notice of a General Municipal Election to be held on Tuesday,
March 3, 2015 in the City of Azusa, County of Los Angeles, for the election of the Mayor for a
term of two years, and two members of the City Council for a term of four years.
SECTION 3. Submission of Measure. Pursuant to Government Code, §53724 and any
other applicable requirements of the laws of the State of California relating to general law cities,
the City Council, by a two-thirds (2/3) supermajority vote, hereby orders the ordinance attached
hereto as Exhibit "A" and by this reference incorporated herein and made an operative part
hereof, to be submitted to the voters of the City at the General Municipal Election to be held on
Tuesday, March 3, 2015.
SECTION 4. The ballot proposition shall be presented and printed upon the ballot
submitted to the voters in the manner and form set forth in this Section 4. On the ballot to be
submitted to the qualified voters at the City General Municipal Election to be held on Tuesday,
March 3, 2015, in addition to any :other matters required by law, there shall be printed
substantially the following:
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"Shall an ordinance amending the Azusa YES
Municipal Code be adopted to increase the
rate of the Transient Occupancy (Room) Tax
from 7.5% to 10%, and to apply the Tax to
all rent charged by hotel operators, including
online travel companies, for the transient
occupancy of any hotel room, to help
maintain general City services such as police
and fire protection, street operations and
maintenance, and library, parks and
recreation services?"
NO
SECTION 5. Conduct of Election. The City Clerk is authorized, instructed and
directed to procure and furnish any and all official ballots, printed matter and all supplies,
equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the
election. In all particulars not recited in this Resolution, the election shall be held and conducted
as provided by law for holding municipal elections.
SECTION 6. Notice of Election. Notice of the time and place of holding the election is
hereby given, and the City Clerk is authorized, instructed and directed to give further or
additional notice of the election, in time, form and manner as required by law.
SECTION 7. Impartial Analysis. Pursuant to California Elections Code §9280, the
City Council hereby directs the City Clerk to transmit a copy of the measure as set forth herein to
the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to
exceed 500 words in length, showing the effect of the measure on the existing law and the
operation of the measure, and transmit such impartial analysis to the City Clerk within fourteen
(14) days following the adoption of this Resolution. The impartial analysis shall include a
statement, indicating whether the Measure was placed on the ballot by a petition signed by the
requisite number of voters or by the City Council. In the event the entire text of the Measure is
not printed on the ballot, or in the voter information portion of the sample ballot, there shall be
printed immediately below the impartial analysis, in no less thanl0-font type, the following:
"The above statement is an impartial analysis of Ordinance or Measure " If you desire a
copy of the ordinance or measure, please call the election official's office at (insert phone
number) and a copy will be mailed at no cost to you."
SECTION 8. Certification. The City Clerk shall certify to the adoption of this
Resolution.
SECTION 9. Filing with County. The City Clerk shall, not later than the 88th day
prior to the General Municipal Election to be held on Tuesday, March 3, 2015, file with the
Board of Supervisors and the County Clerk — Registrar of Voters of the County of Los Angeles,
State of California, a certified copy of this Resolution.
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SECTION 10. Public Examination. Pursuant to California Elections Code §9295, this
measure will be available for public examination for no fewer than ten (10) calendar days prior
to being submitted for printing in the sample ballot. The examination period will end on the day
that is seventy-five (75) days prior to the date set for the election. The Clerk shall post notice in
the Clerk's office of the specific dates that the examination period will run.
PASSED, APPROVED and ADOPTED this 17`h day of November, 2014.
Xoeph Romero Rochhaa
Mayor
ATTEST:
/, 4/ �9� .��C�?
Jftffef LaOWnce Cornejo, .Lr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 14-C77 was duly adopted by
the City Council of the City of Azusa at a regular meeting thereof, held on the 17`h day of
November, 2014, by the following vote of Council:
AYES: COUNCILMEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ctL ence Corneomej o
jo, r.,
qff,,
City Clerk
APPROVED AS TO FORM:
Ma o A. Martinez
Bes Best & Krieger LP
City Attorney
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Exhibit "A"
ORDINANCE NO, 14-05
MEASURE"A"
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AN ORDINANCE OF THE PEOPLE OF THE CITY OF AZUSA AMENDING
THE CITY'S TRANSIENT OCCUPANCY (ROOM) TAX CODE BY
INCREASING THE RATE FROM 7.5% TO 10%, AND ADDRESSING
ONLINE TRAVEL COMPANY AND OTHER THIRD PARTY BOOKINGS,
AND MAKING VARIOUS CONFORMING CHANGES.
(NOTE: additions are highlighted in bold italics and deletions are highlighted in strikeout)
THE PEOPLE OF THE CITY OF AZUSA, CALIFORNIA DO HEREBY ORDAIN AS
FOLLOWS:
SECTION 1. Section 70-157 of Article IV of Chapter 70 of the Azusa Municipal Code
is hereby amended to read as follows:
"See. 70-157. Definitions.
The following words, terms and phrases, when used in this article, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a different
meaning:
Block Reservation means an arrangement whereby a person reserves, whether on an
exclusive or non-exclusive basis, a room or block/group of rooms for a defined period of time
under a written or oral agreement with an operator, intending for such room(s) to be occupied
by that person's employees or agents on an intermittent, periodic or "as needed" basis during
that defined period of time.
Hotel means 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, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming
house, apartment house, dormitory, public or private club, mobile home or house trailer at a
fixed location, or other similar structure or portion thereof.
Occupancy means the use or possession, or the right to the use or possession of any room
or rooms or portion thereof (whether or not the person entitled to the use or possession actually
uses or possesses such room or rooms or portion thereon, in any hotel for dwelling, lodging or
sleeping purposes. The use or possession or right to use or possess any room or any suite of
connecting rooms as office space, banquet or private dining rooms, or exhibits, sample or
display space shall not be considered "occupancy" within the meaning of this definition unless
the person exercising occupancy uses or possesses, or has the right to use or possess all or any
portion of such room or suite of rooms for dwelling, lodging or sleeping purposes.
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Online Travel Company shall mean any person, whether operating for profit or not for
profit, which enables transients to purchase occupancy in a hotel via the Internet, or by
similar electronic means.
Operator means a person who is proprietor of the hotel or any other person who has the
right to rent rooms within the hotel, whether in the capacity of owner, lessee, sublessee,
mortgagee in possession, licensee, seller, reseller, or any other capacity. Where the operator
performs his functions through a managing agent or booking agent of any type or character,
other than an employee (including, but not limited to, an online travel company), the managing
agent or booking agent shall also be deemed an operator for the purposes of this Part and shall
have the same duties and liabilities as his principal. Full Ccompliance with the provisions of this
Part by either the principal or the managing agent or booking agent shall, however, be
considered to be compliance by both.
"Person" shall mean any individual, firm, partnership, joint venture, association,
social club, fraternal organization, joint stock company, corporation, estate, trust, business
trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.
Rent means the total consideration charged to the transient, (including but not limited
to, room rates, service charges, parking fees, purchase price, advance registration, block or
group reservation charges, assessments, retail markup, commission, processing fees,
cancellation charges, attrition fees, or online booking fees), whether or not received, for the
occupancy e€ space in a hotel valued in money, whether to be received in money, goods, labor or
otherwise, including all receipts, cash, credits and property and services of any kind or nature,
without any deduction therefrom whatsoever. Nothing in this definition shall be construed to
mean that rent is charged directly or indirectly for occupancy in a hotel when a room is
provided to the transient as a compliment for the operator and where no consideration is
charged to or received from any other person. Further, bona fide charges for food and
beverages which are subject to tax under the California Sales and Use Tax Law (Revenue and
Taxation Code Sections 6001 et. sem.) shall not be deemed rent subject to the tax imposed by
this Part.
Tax Administrator means the city elerle Director of Finance, or his or her designee.
Transient means any person who exercises occupancy or is entitled to occupancy by
reason of concession, permit, right of access, license or other agreement for a period of 30
consecutive calendar days or less, counting portions of calendar days as full days. The following
rules shall apply to this definition:
A. Any such person so occupying space or entitled to occupy a room in a hotel shall
be deemed to be a transient until the period of (30) calendar days has expired unless nen
agreement in writing between the operator and the oee"ant providing far a
a , ee paney E)r paymefit for fnere than 30 eenseeutive days has been made in In the
event a person exercises or is entitled to occupancy for a continuous and uninterrupted period
of longer than 30 calendar days, he or she shall be deemed a transient and subject to the tax
for only the first 30 calendar days of occupancy and shall cease being a transient and the tax
shall not apply on the 31st calendar day of occupancy and following. However, any break or
interruption in occupancy shall start a new 30 day period subject to the tax.
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B. In determining whether a person is a transient, uninterrupted periods of time
extending both prior and subsequent to the effective date of this Part may be considered.
C. Any person who exercises or is entitled to occupancy for a period of 30
consecutive calendar days or less shall be deemed to be a transient for that period, regardless
of whether the reservation andlor payment for occupancy is made directly by the person
exercising or entitled to occupancy or by another person. The intent is to tax the person
exercising occupancy or having the entitlement to occupancy of a hotel room.
D. In the case of a block reservation, a person's employee or agent shall be deemed
a transient if that employee or agent exercises or is entitled to occupancy of a room for a
period of 30 consecutive calendar days or less, regardless of the duration of any block
reservation agreement. By way of example, if a corporation enters into a one-year block
reservation agreement with an operator and one of the corporation's employees occupies a
room for 30 calendar days, the employee shall be deemed a transient whose occupancy is
subject to the tax, notwithstanding the fact that the block reservation agreement has a
duration longer than 30 calendar days."
SECTION 2. Section 70-158 of Article IV of Chapter 70 of the Azusa Municipal Code is
hereby amended to read as follows:
"See. 70-158. Rate, payment.
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax
in the amount of 7-,4 10 percent of the rent charged by the operator. This tax constitutes a debt
owed by the transient to the City which is extinguished only by payment to the operator or to the
City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the
rent is paid in installments, a proportionate share of the tax shall be paid with each installment.
The unpaid tax shall be due upon the transient's ceasing to aeoupy space :n the hotel occupancy.
If for any reason the tax due is not paid to the operator of the hotel, the Tax Administrator may
require that such tax shall be paid directly to the Tax Administrator.
SECTION 3. Section 70-159 of Article IV of Chapter 70 of the Azusa Municipal Code is
hereby amended to read as follows:
"See. 70-159. Exemptions.
(a) No tax levied under this article shall be imposed upon the following:
(1) Any person as to whom, or any occupancy as to which it is beyond the power of the City to
impose the tax.
(2) Any federal or State of California officer or employee when occupying a room while on official
government business. For purposes of this section, students, non-employee supporters and
volunteers of California public universities and colleges shall not be deemed to be officers or
employees of the State of California.
(3) Any officer or employee of a foreign government who is exempt by reason of express provision
of federal law or international treaty.
(b) No exemption shall be granted except upon a claim therefor made at the time rent
is collected and under penalty of perjury upon a form prescribed by the Tax
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(1)
(2)
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Administrator. Any federal or State of California officer or employee when on
official government business claiming such an exemption shall provide to the
operator as conclusive evidence that his or her occupancy is for the official
business of his or her employer.
Travel orders from his or her government employer; or a government warrant issued by his or
her employer to pay for the occupancy; or a government credit card issued by his or her
employer to pay for the occupancy; and
proof of his or her governmental employment as an employee or officer as described in
paragraph (1) of this subsection (b), and proof, consistent with these provisions, that his or her
occupancy is for the official business of his or her governmental employer.
It shall be the duty of an operator to keep and maintain for a period of three (3) years written
documentation in support of each exemption granted under this Section."
SECTION 4. Effective Date. Pursuant to California Constitution Article XIIIC §(2)(b)
and California Elections Code §9217, if a majority of the qualified voters voting in the election
on Measure "A" vote in favor of the adoption of such measure, this ordinance shall be deemed
valid and binding and shall be considered as adopted upon the date that the vote is declared by
the City Council, and shall go into effect ten (10) days after that date.
SECTION 5. Severability. If any section, sentence, clause or phrase of this ordinance
is for any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining provisions of this
ordinance. The People of the City of Azusa hereby declare that they would have adopted this
ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any
one or more section, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
SECTION 6. Certification/Summary. Following the City Clerk's certification that the
citizens of Azusa have approved this Ordinance, the Mayor shall sign this Ordinance and the
City Clerk shall cause the same to be entered in the book of original ordinances of said City; and
shall cause the same, or a summary thereof, to be published as required by law.
Adopted by the People of the City of Azusa on the 3rd day of March, 2015.
Joseph Romero Rocha
Mayor
ATTEST:
Jeffrey Lawrence Comejo, Jr.
City Clerk
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APPROVED AS TO FORM:
Marco A. Martinez
City Attorney