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HomeMy WebLinkAbout86-5 - Adding Section 3.28 Establishing A Visitor's Service Fee• ORDINANCE NO. 86 -5 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADDING SECTION 3.28 ESTABLISHING A VISITOR'S SERVICE FEE. The City Council of the City of Newport Beach does hereby ordain as follows: Section 1: Section 3.28 is added to the Newport Beach Municipal Code as follows: Section 3.28.005 Findings and Purpose. The City Council finds and declares as follows: (A) The natural, recreational and cultural resources of Newport Beach make it a popular destination for • business travellers and vacationers; (B) Visitor serving businesses, such as hotels, restaurants and retail shops, comprise a large segment of the economy of the City of Newport Beach; � -1- Sections: Section 3.28.005 Findings and Purpose. Section 3.28.010 Definitions. Section 3.28.015 Visitor Services. Section 3.28.020 Service Fee. Section 3.28.025 Use of Service Fee. Section 3.28.030 Responsibility of the • Section 3.28.035 Operator. Exemptions. Section 3.28.040 Reporting and Remitting. Section 3.28.045 Penalties and Interest. Section 3.28.050 Records. Section 3.28.055 Assessment Procedures. Section 3.28.060 Appeal. Section 3.28.065 Notice. Section 3.28.070 Fee Declared a Debt - Action to Collect. Section 3.28.075 Penalty for Violations. Section 3.28.005 Findings and Purpose. The City Council finds and declares as follows: (A) The natural, recreational and cultural resources of Newport Beach make it a popular destination for • business travellers and vacationers; (B) Visitor serving businesses, such as hotels, restaurants and retail shops, comprise a large segment of the economy of the City of Newport Beach; � -1- (C) The existing visitor serving businesses • within Newport Beach are subject to increased competition due to the construction of numerous hotels and restaurants in cities near Newport Beach; (D) To maintain the economic viability of the existing visitors serving businesses it is necessary to provide those visitors with information about the resources and businesses available to serve their needs, and to encourage persons to visit Newport Beach during the off - season; (E) Businesses that provide lodging for visitors will play a key role in dispensing information to visitors and the guests of hotels, motels and inns will be the principal beneficiary of the program; (F) The program for providing services to visitors and encouraging others to visit Newport Beach should be funded by fees charged to the guests of hotels and motels; (G) A program for providing services to visitors and inform potential visitors of the advantages of Newport Beach is likely to generate additional transient occupancy tax and sales tax revenues that can be used by the City to provide services and make improvements that will benefit residents and visitors alike; (H) The visitor service fee required by this ordinance is equivalent to the costs incurred by the City in providing services and is representative of the benefit to those visiting Newport Beach. Section 3.28.010 Definitions. Except where the context otherwise requires, the definitions given in this section shall govern the construction of this chapters Person. The term "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 group. Hotel. The term "hotel" shall mean any -2- structure, or any portion of any structure, which is occupied or intended or designed for occupancy by guests for dwelling, lodging or sleeping purposes, tourist home or house, motel, lodging house, rooming house, dormitory, public or private clu at a fixed location, or other thereof. and includes any hotel, inn, studio hotel, bachelor hotel, apartment house, rental unit, b, mobile home or house trailer similar structure or portion Occupancy. The term "occupancy" shall mean the use or possession, or the right to use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. Guest. The term "guest" shall mean 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 thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a guest until the period of thirty (30) days has expired, unless • there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. Rent. The term "rent" shall mean the consideration charged, whether or not received, for the occupancy of 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. Operator. The term "operator" shall mean the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his 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 the 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. Section 3.28.015. Visitor Services. The City, or an entity under contract to the City, shall develop, plan, carry -3- out and supervise a program to serve the needs of visitors to, and promote tourism in, the City of Newport Beach. The City, or • the entity retained by the City, in implementing this plan shall, at a minimum: (A) Employ, and provide suitable quarters for, competent personnel to carry out the services described above; (B) Prepare and distribute information, by way of brochures, publications, guides, direct mail and the media that informs visitors, and prospective visitors, of the resources of Newport Beach and the businesses available to serve their needs; (C) Develop and implement marketing programs with an emphasis on increasing business and visitor trade during the off -peak season (October through May). Section 3.28.020. Service Fee. Each guest shall pay a fee of 1% of the rent charged by the operator as consideration for, and to defray the cost of, the services • provided by City. The fee constitutes a debt owed by the guest to the City which is extinguished only by payment to the operator or directly to the City. The guest shall pay the fee 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 fee shall be paid with each installment. Any unpaid fee shall be due upon the guest's termination of tenancy. Section 3.28.025. Use of Service Fee. Funds received by the City pursuant to this chapter shall be used solely for the purposes described in Section 3.28.015. All fees received pursuant to this chapter shall be deposited into a special account designated the "Visitor's Service Fee Fund." Section 3.28.030. Responsibility of the Opera- tor. Each operator shall collect the fee imposed by this chapter to the same extent, and at the same time, as rent is collected from each guest. The fee shall be separately stated from the • amount of the rent charged, and each guest shall receive a receipt for payment from the operator. imposed upon: Section 3.28.035. Exemptions. No fee shall be -4- (A) Any person as to whom, or any occupancy as • to which, it is beyond the power of the City to impose the fee required by this chapter. (B) Any federal or State of California officer or employee when on official business. (C) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. 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 Finance Director. Section 3.28.040. Reporting and Remitting. On or before the last day of the month following the close of each calendar quarter, or such different reporting period as may be established by the Finance Director, each operator shall make • return to the Finance Director, on forms provided by the City, of the total rents charged and received, and the amount of the fees collected during the preceding three (3) months, together with such information as may be required by the Finance Director. The full amount of the fee collected shall be remitted to the Finance Director at the time the return is filed. A return must be filed, and payment of all fees must be made, within thirty (30) days from the date any hotel ceases operation. All fees collected by operators pursuant to this chapter shall be held in trust for the account of the City until payment is made to the Finance Director. Section 3.28.045. Penalties and Interest. (A) Original Delinquency. Any operator who fails to remit any fee imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the fee, this in addition to the amount of the fee. • (B) Continued Delinquency. Any operator who fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten -5- percent (10 %) of the amount of the fee in addition to the amount of the fee and the ten percent (10 %) penalty first imposed. • (C) Fraud. If the Finance Director determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty -five percent (25 %) of the amount of the fee shall be added thereto in addition to the penalties imposed by Subparagraphs A and B. (D) Interest. In addition to the penalties imposed, any operator who fails to remit any fee imposed by this chapter shall pay interest on the full amount of the fees unremitted, exclusive of penalties at the rate of one -half of one percent (1/2 %) per month for each month or portion of a month that the fee is delinquent from the date on which the fee first became delinquent. The interest shall be computed on a monthly basis and shall not be subject to proration for any portion of a month. (E) Penalties Merged with Fee. Every penalty imposed and such interest as accrues under the provisions of this • section shall become a part of the fee herein required to be paid. Section 3.28.050. Records. It shall be the duty of every operator to keep and preserve, for a period of three (3) years, all records necessary to determine the amount of such fee the operator should have collected and paid. The Finance Director shall have the right to inspect the records during business hours. Section 3.28.055. Assessment Procedures. The Finance Director shall investigate any failure or refusal of any operator to collect the fee, or make any report or remittance of the fee, required by this chapter. The Finance Director, after investigation, shall determine, and assess against the operator, the fees, interest and penalties provided by this chapter. Notice of the determination shall be given to the operator by the Finance Director. The operator may request a hearing before the is Finance Director by filing a written application within ten (10) days from the date of notice of the determination. The decision of the Finance Director shall be final if the operator fails to file a timely application for hearing. If the operator has requested a hearing, the Finance Director shall give the operator -6- Section 3.28.060. Appeal. Any operator aggrieved by a decision of the Finance Director with respect to the amount of fee, interest or penalties assessed may appeal to the City Council by filing a notice of appeal with the City Clerk within fifteen (15) days after notice of the decision of the Finance Director. The City Clerk shall fix the time and place for hearing and give notice to the Finance Director and the operator. The City Council may preside over the appeal, or may appoint a hearing officer to take evidence and submit proposed findings and recommendations to the City Council. The City Council shall render a final decision within thirty (30) days after the hearing, and any amount found to be due shall be payable within ten (10) days after service of notice of the • decision. Section 3.28.065. Notice. Any notice required to be given pursuant to this chapter, shall be deemed given if personally served on the operator or the operator's representative, or if deposited in the United States mail, first class postage prepaid, and addressed to the operator at the address shown on the transient occupancy registration certificate. Section 3.28.070. Fee Declared a Debt - Action to Collect. Any fee collected by an operator pursuant to this chapter which has not been paid to the City shall be deemed a debt owed by the operator to the City and the operator shall be liable in an action brought in the name of the City of Newport Beach for the recovery of the unremitted fees. Section 3.28.075. Penalty for Violations. Any • operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Finance Director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is -7- notice of the time and place of the hearing. The Finance Director shall consider all evidence, written or oral, offered by • the operator at the hearing and give notice of the proper amount of the fees, interest and the decision on penalties within thirty (30) days after the hearing. The amount determined to be due shall be payable fifteen (15) days after the notice of decision unless the operator appeals to the City Council. Section 3.28.060. Appeal. Any operator aggrieved by a decision of the Finance Director with respect to the amount of fee, interest or penalties assessed may appeal to the City Council by filing a notice of appeal with the City Clerk within fifteen (15) days after notice of the decision of the Finance Director. The City Clerk shall fix the time and place for hearing and give notice to the Finance Director and the operator. The City Council may preside over the appeal, or may appoint a hearing officer to take evidence and submit proposed findings and recommendations to the City Council. The City Council shall render a final decision within thirty (30) days after the hearing, and any amount found to be due shall be payable within ten (10) days after service of notice of the • decision. Section 3.28.065. Notice. Any notice required to be given pursuant to this chapter, shall be deemed given if personally served on the operator or the operator's representative, or if deposited in the United States mail, first class postage prepaid, and addressed to the operator at the address shown on the transient occupancy registration certificate. Section 3.28.070. Fee Declared a Debt - Action to Collect. Any fee collected by an operator pursuant to this chapter which has not been paid to the City shall be deemed a debt owed by the operator to the City and the operator shall be liable in an action brought in the name of the City of Newport Beach for the recovery of the unremitted fees. Section 3.28.075. Penalty for Violations. Any • operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Finance Director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is -7- • punishable as provided in Section 1,04.010 of this Code. Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to be made, is guilty of a misdemeanor and is punishable as aforesaid. Section 2: The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within fifteen (15) days after its adoption. The Ordinance shall become effective on the 11th day of March , 1987. Section 3: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 26th day of January, 1987 , and adopted on the 9th day of February , 1987, by the following vote, to -wit: ATTEST: AYES, COUNCILMEMBERS Cox, Maurer, Plummer, Turner NOES, COUNCILMEMBERS Hart, Sansone, Strauss ABSENT -8- ILMEMBERS