RESOLUTION NO. CC-2307-068
RBTMD FORMATION
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RESOLUTION NO. CC-2307-068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO
BEACH, CALIFORNIA, DECLARING RESULTS OF MAJORITY
PROTEST PROCEEDINGS AND RENEWING THE REDONDO BEACH
TOURISM MARKETING DISTRICT (RBTMD)
WHEREAS, the City of Redondo Beach (City) created the RBTMD in 2018 by Resolution No. CC-1808-053; and
WHEREAS, the RBTMD was created for a five (5) year term which ends on August 31, 2023; and
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to renew business improvement districts for the purposes of promoting tourism; and
WHEREAS, lodging 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 RBTMD have petitioned the City Council to renew the RBTMD; and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary that describes the proposed assessment to be levied on lodging businesses within the RBTMD to pay for sales and marketing programs, and other improvements and activities set forth in the Plan; and
WHEREAS, the assessed lodging businesses within the RBTMD will receive a specific benefit from the activities and improvements set forth in the Plan; and WHEREAS, on May 16, 2023, at 6:00 PM at the Council Chambers located at 415 Diamond Street, Redondo Beach, CA 90277, the City Council adopted a Resolution of Intention, Resolution No. CC-2305-046; and
WHEREAS, the public meeting and public hearing to consider the renewal of the RBTMD have been properly noticed in accordance with Streets and Highways Code §36623; and
WHEREAS, on June 20, 2023, at 6:00 PM at the Council Chambers located at 415 Diamond Street, Redondo Beach, CA 90277, the City Council held a public meeting regarding the renewal of the RBTMD, and the City Council heard and received objections and protests, if any, to the renewal of the RBTMD and the levy of the proposed assessment; and
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RBTMD FORMATION
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WHEREAS, on July 18, 2023, at 6:00 PM at the Council Chambers located at 415 Diamond Street, Redondo Beach, CA 90277, the City Council held a public hearing regarding the renewal of the RBTMD, and the City Council heard and received all objections and protests, if any, to the renewal of the RBTMD 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 lodging businesses in the renewed RBTMD 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 lodging 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, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The recitals set forth herein are true and correct.
SECTION 2. The RBTMD is hereby renewed for a ten (10) year term, beginning September 1, 2023, or as soon as possible thereafter, and shall end ten (10) years from its start date, unless renewed pursuant to Streets and Highways Code §36660.
SECTION 3. The Plan dated April 20, 2023 is hereby adopted and approved.
SECTION 4. The activities to be provided to benefit lodging businesses, comprised of twenty (20) rooms or more, in the RBTMD 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 RBTMD; to provide activities or improvements outside the RBTMD; 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 RBTMD boundaries to create a specific benefit to the assessed lodging businesses may be provided, but shall be limited to marketing or signage pointing to the RBTMD.
SECTION 5. The City Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed lodging businesses within the RBTMD that is not provided to those not paying the assessment.
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RBTMD FORMATION
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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 RBTMD 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 “RBTMD Assessment” or “Tourism Assessment” as specified in the Plan.
SECTION 6. The assessments levied for the RBTMD shall be applied towards sales and marketing programs to market Redondo Beach lodging businesses as tourist, meeting and event destinations, and other improvements and activities as set forth in the Plan.
SECTION 7. Assessments levied on lodging 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.
SECTION 8. The assessments for the entire RBTMD will total approximately $700,000 in year one (1).
SECTION 9. Bonds shall not be issued to fund the RBTMD.
SECTION 10. The RBTMD shall include all lodging businesses with twenty (20) rooms or more, existing and in the future, available for public occupancy within the boundaries of the City of Redondo Beach. A boundary map is attached hereto and incorporated herein by reference.
SECTION 11. 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 RBTMD assessment is levied as long as they are used consistent with the requirements set forth herein.
SECTION 12. The assessments to fund the activities and improvements for the RBTMD will be collected by the City on a monthly basis (including any delinquencies, penalties and interest), and in accordance with Streets and Highways Code §36631.
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SECTION 13. 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 RBTMD as defined in Streets and Highways Code §36612. The City Council has determined that the Redondo Beach Travel & Tourism (RBTT) shall continue to be the RBTMD Owners’ Association.
SECTION 14. RBTT, 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 improvements and activities described in the report. The first report shall be due after the first year of operation of the renewed RBTMD.
SECTION 15. The RBTMD renewed 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.).
SECTION 16. The City Clerk, or their designee, pursuant to California Streets and Highways Code §36625, is directed to adopt this resolution..
SECTION 17. This Resolution shall take effect immediately upon its adoption by the City Council.
PASSED, APPROVED AND ADOPTED this 18th day of July 2023.
William C. Brand, Mayor
APPROVED AS TO FORM: ATTEST:
Michael W. Webb, City Attorney Eleanor Manzano, CMC, City Clerk RESOLUTION NO. CC-2307-068
RBTMD FORMATION
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF REDONDO BEACH )
I, Eleanor Manzano, City Clerk of the City of Redondo Beach, California, do hereby certify that Resolution No. CC-2307-068 was passed and adopted by the City Council of the City of Redondo Beach, California, at a regular meeting of said City Council held on the 18 th
day of July, 2023 and thereafter signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Eleanor Manzano, CMC
City Clerk
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RBTMD FORMATION
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EXHIBIT A
District Boundaries