ORDINANCE NO. ___________
AN ORDINANCE OF THE CITY OF PACIFICA AMENDING SECTION 3-7.03 (TAX IMPOSED) WITHIN CHAPTER 7 (TRANSIENT OCCUPANCY TAX) OF TITLE 3 (FINANCE) OF THE PACIFICA MUNICIPAL CODE TO UPDATE THE CITY’S TRANSIENT OCCUPANCY (HOTEL/LODGING) TAX BY INCREASING TO FIFTEEN PERCENT (15%) WHEREAS, Title 3, Chapter 7 of the City of Pacifica Municipal Code, establishes the City’s Transient Occupancy Tax (TOT) regulations which require that each “transient” who occupies a “hotel”, as those terms are defined in section 3-7.02(b), must pay the TOT rate of twelve percent (12%) for the privilege of occupying the hotel; and
WHEREAS, Article XIII C, section 2(b) of the California Constitution requires that any general tax, such as the TOT, must be approved by a majority vote of the voters voting on the issue; and
WHEREAS, Article XIII C, section 2(b) of the California Constitution requires that an election by the voters to approve a general tax must be consolidated with a statewide general election at which members of the City Council will be elected; and WHEREAS, November 5, 2024 is the date of the statewide general election at which members of the City Council will be elected; and
WHEREAS, the City of Pacifica provides excellent community services and maintains a strong quality of life for local residents; and
WHEREAS, Pacifica’s parks, beaches, coastline, trails and recreation opportunities are what makes the City unique, but as erosion, pollution and flooding increase, this measure will allow us to protect these resources for current and future generations to enjoy; and WHEREAS, this measure will reduce the impact on local taxpayers so local residents do not shoulder the cost and visitors and tourists also contribute to the services they utilize; and WHEREAS, this measure will provide funding to address community identified priorities such as police, fire and 911 emergency response services, street and pothole repair, youth and senior programs, adapting to sea-level rise and keeping trash off of the beaches; and WHEREAS, the proposed measure will include accountability requirements such as annual financial audits; and
WHEREAS, the City Council believes that it is in the best interests of the City to submit the proposed 3% upward adjustment to the TOT to the voters of City.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF PACIFICA DO ORDAIN AS FOLLOWS:
Section 1. Amendment. Section 3-7.03 (Tax Imposed) within Chapter 7, (Transient Occupancy Tax) of Title 3, (Revenue) of the Pacifica Municipal Code is hereby amended by repealing and replacing it in its entirety to read as follows:
“Sec. 3-7.03. - Tax imposed.
For the privilege of occupancy in any hotel, each transient shall be subject to and shall pay a tax in the amount of fifteen percent (15%) of the rent charged by the operator. Such tax shall constitute a debt owed by the transient to the City, which debt shall be 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 occupy space in the hotel. 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 2. Audits Proceeds resulting from the TOT shall be deposited into the City’s general fund and become subject to the same audit requirements as other general fund revenues. Any auditor’s report shall include an accounting of the revenues received from the TOT and shall be presented to the City Council annually and made available for public review.
Section 3. Compliance with CEQA. The City Council finds and determines that this ordinance is not a “Project” as defined under Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.
Section 4. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.
Section 5. Passage. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance by the City Council of the City of Pacifica, California, and cause the same to be published in accordance with State law.
Section 6. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Pacifica voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that
election by resolution. The levying and collection of the TOT shall be as specified in Chapter 7 within Title 3 of the Pacifica Municipal Code.
PASSED AND ADOPTED by the voters of the City of Pacifica this November 5, 2024. ***
It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on ___________ by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
____________________________
Sue Vaterlaus, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________ Sarah Coffey, City Clerk Michelle Marchetta Kenyon, City Attorney