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;
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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;
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(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
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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
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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
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(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
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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
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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
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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
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•
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
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ILMEMBERS