HomeMy WebLinkAboutReso 28-21 Re-establishing MBTBID FY 21-22RESOLUTION NO. 28-21
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
DECLARING RESULTS OF MAJORITY PROTEST
PROCEEDINGS AND ESTABLISHING THE
MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID)
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the Property and Business Improvement District Law of 1994 (Streets and
Highways Code §§36600 et. seq.) authorizes the City to establish business improvement districts
upon petition by a weighted majority of the business owners located within the boundaries of the
district; and
WHEREAS, lodging business and vacation rental business owners who will pay more than
fifty percent (50%) of the proposed assessment, as weighted according to the amount of the
assessment to be paid by the petitioner, within the boundaries of the Morro Bay Tounsm Business
Improvement District (MBTBID) have petitioned the City Council to establish the MBTBID; and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary
that describes the proposed assessment to be levied on lodging businesses and vacation rental
businesses within the MBTBID to pay for sales, marketing, and communications programs and
other improvements and activities set forth in the Plan; and
WHEREAS, the assessed businesses within the MBTBID will receive a specific benefit
from the activities and improvements set forth in the Plan; and
WHEREAS, on April 13, 2021 at 5:30 PM via teleconference pursuant to Section 3 of
Executive Order N-29-20, issued by Governor Newsom on March 17, 2020, the City Council
adopted a Resolution of Intention Resolution No. 16-21; and
WHEREAS, the public meeting and public hearing to consider the establishment of the
MBTBID have been properly noticed in accordance with Streets and Highways Code §36623; and
WHEREAS, on April 27, 2021 at 5:30 PM via teleconference pursuant to Section 3 of
Executive Order N-29-20, issued by Governor Newsom on March 17, 2020, the City Council held
a public meeting regarding the establishment of the MBTBID, and the City Council heard and
received objections and protests, if any, to the establishment of the MBTBID and the levy of the
proposed assessment; and
WHEREAS, on June 8, 2021 at 5:30 PM, via teleconference pursuant to Section 3 of
Executive Order N-29-20, issued by Governor Newsom on March 17, 2020, the City Council held
a public hearing regarding the establishment of the MBTBID, and the City Council heard and
received all objections and protests, if any, to the establishment of the MBTBID and the levy of
the proposed assessment; and
WHEREAS, the City Clerk has determined that there was no majority protest. A majority
protest is defined as written protests received from owners of businesses in the proposed MBTBID
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which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests
are weighted based on the assessment proposed to be levied on each assessed business; and
WHEREAS, the City bears the burden of proving by a preponderance of the evidence that
an assessment imposed for a specific benefit or specific government service is not a tax, that the
amount is no more than necessary to cover the costs to the City in providing the specific benefit
or specific government service, and that the manner in which those costs are allocated to a payor
bear a fair or reasonable relationship to the specific benefits or specific government services
received by the payor.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California,
as Follows:
1. The recitals set forth herein are adopted by the City Council as findings and they
are true and correct.
2. The MBTBID is hereby established for a five (5) years year term, beginning July 1,
2021 through June 30 2026.
3. The Plan dated March 3, 2021 is hereby adopted and approved.
4. The activities to be provided to benefit businesses in the MBTBID will be funded
by the levy of the assessment The revenue from the assessment levy shall not be used: to
provide activities that directly benefit businesses outside the MBTBID; to provide activities or
improvements outside the MBTBID; or for any purpose other than the purposes specified in this
Resolution, the Resolution of Intention, and the Plan. Notwithstanding the foregoing,
improvements and activities that must be provided outside the MBTBID boundaries to create a
specific benefit to the assessed businesses may be provided but shall be limited to marketing or
signage pointing to the MBTBID
5. The City Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed
businesses within the MBTBID that is not provided to those not paying the assessment.
b) The assessment is a charge imposed for a specific benefit conferred or privilege
granted directly to the payor that is not provided to those not charged, and which does not
exceed the reasonable costs to the local government of conferring the benefit or granting
the privilege.
c) The assessment is a charge imposed for a specific government service or product
provided directly to the payor that is not provided to those not charged, and which does
not exceed the reasonable costs to the local government of providing the service or
product.
d) Assessments imposed pursuant to the MBTBID are levied solely upon the
assessed business, and the business owner is solely responsible for payment of the
assessment when due If the owner chooses to collect any portion of the assessment from
a transient that portion shall be specifically called out and identified for the transient in
any and all communications from the business owner as the "MBTBID Assessment' or
"Tourism Assessment" as specified in the Plan.
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6. The assessments levied for the MBTBID shall be applied towards sales, marketing,
and communications programs to market assessed Morro Bay lodging businesses and vacation
rental businesses as tourist, meeting and event destinations, and other improvements and
activities as set forth in the Plan.
7. Assessments levied on lodging businesses and vacation rental businesses
pursuant to this resolution shall be levied on the basis of benefit. Because the services provided
are intended to increase room rentals, an assessment based on room rentals is the best measure
of benefit
8. The annual assessment rate is three percent (3%) of gross short-term room rental
revenue. Based on the benefit received, assessments will not be collected on stays of more than
thirty (30) consecutive days. Assessments will not be collected on any officer or employee of a
foreign government who is exempt by reason of express provision of federal law or international
treaty
9. The assessments for the entire MBTBID will total approximately $991,000 in year
one (1).
10. Bonds shall not be issued to fund the MBTBID.
11. The MBTBID shall include all lodging business and vacation rental businesses,
existing and in the future, within the boundanes of the City of Morro Bay. A boundary map is
attached hereto and incorporated herein by reference.
12. The assessments shall be used for the purposes set forth above and any funds
remaining at the end of any year may be used in subsequent years in which the MBTBID
assessment is levied as long as they are used consistent with the requirements set forth herein.
13. The assessments to fund the activities and improvements for the MBTBID will be
collected by the City on a monthly basis, and in accordance with Streets and Highways Code
§36631.
14. The City Council, through adoption of this Resolution and the Plan, has the right
pursuant to Streets and Highways Code §36651, to identify the body that shall implement the
proposed program which shall be the Owners' Association of the MBTBID as defined in Streets
and Highways Code §36612. The City Council has determined that Visit Morro Bay shall be the
MBTBID Owners' Association.
15. Visit Morro Bay, pursuant to Streets and Highways Code §36650, shall cause .to
be prepared a report for each fiscal year, except the first year, for which assessments are to be
levied and collected to pay the costs of the improvement and activities described in the report.
The first report shall be due after the first year of operation of the MBTBID.
16 The MBTBID established pursuant to this resolution will be subject to any
amendments to the Property and Business Improvement District Law of 1994 (California Streets
and Highways Code §§36600 et. seq.).
17. The City Clerk, or his or her designee, is directed to take all necessary actions to
complete the establishment of the MBTBID and to levy the assessments.
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18. This Resolution shall take effect immediately upon its adoption by the City Council.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 8th day of June 2021, by the following vote:
AYES* Headding, Addis, Davis, Heller
NOES* None
ABSENT: Barton
ABSTAIN: None
ATTEST:
ana Swanson, City Clerk
Clerk
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John eaayor
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