O 667 ORDINANCE NO. 667
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE AMENDING CHAPTER 3.46 OF
THE ARROYO GRANDE MUNICIPAL CODE RELATING ,
TO THE TOURISM BUSINESS IMPROVEMENT DISTRICT
LAW
WHEREAS, the Parking and Business Improvement Area Law of 1989, sections 36500
et seq. of the Streets and Highways Code, authorizes cities to establish business
improvement districts for several purposes, one of which is promotion of tourism; and
WHEREAS, the Arroyo Grande Tourism Business Improvement District (AGTBID) was
established in May, 2013 and incorporated into the Arroyo Grande Municipal Code
under Chapter 3.46 which provides for the imposition of an assessment on lodging
businesses; and
WHEREAS, the City also imposes a Transient Occupancy Tax and that tax includes
exemptions that are contained in Section 3.24.040 of the Arroyo Grande Municipal
Code as follows: any person as to whom, or any occupancy as to which, it is beyond the
power of the city to impose the tax provided for in this chapter; any federal and state
officer or employee when on official business; or any officer or employee of a foreign
government who is exempt by reason of an express provision of federal law or
international treaty; and
WHEREAS, since the assessment for the AGTBID is applied to occupied rooms for all
transient occupancies, it would be appropriate to have the same exemptions that apply
to the Transient Occupancy Tax applied to the AGTBID assessments; and
WHEREAS, the City has also developed regulations for vacation rentals and
homestays, and currently the definition of "lodging" subject to the AGTBID assessment
expressly excludes vacation rentals and it would be equitable and appropriate to impose
the assessment on any vacation rentals or homestays that are permitted under the new
regulations.
NOW, THEREFORE BE IT ORDAINED by the City Council of the City of Arroyo Grande
as follows:
SECTION 1. Section 3.46.050 of the Arroyo Grande Municipal Code is hereby
amended to read as follows:
"3.46.050 Levy of assessment, reporting and exemptions.
The AGTBID shall include all lodging businesses located within the
AGTBID boundaries. The assessment to be levied on all lodging businesses
within the AGTBID boundaries shall be based upon two percent of the rent
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PAGE 2
charged by the operator per occupied room per night for all transient
occupancies. The assessment shall be collected quarterly, based on two percent
of the rent charged by the operator per occupied room per night in revenues for
the previous quarter. New lodging businesses within the boundaries shall not be
exempt from the levy of assessment authorized by Section 36531 of the law.
Assessments pursuant to the AGTBID shall not be included in rent revenue for
purpose of determining the amount of the assessment. The value of extended
stays of more than thirty (30) consecutive calendar days shall be exempt from
the levy of assessment. Stays by persons who are otherwise exempt from the
imposition of a transient occupancy tax as defined in AGMC Section 3.24.040
shall be exempt from the assessment.
Each operator shall, on or before the last day of the month following the
close of each calendar quarter, or at the close of any shorter reporting period
which may be established by the director of administrative services, make a
return to the director of administrative services, on forms provided by him or her,
of the total rents charged and received and the amount of assessment collected
for transient occupancies. At the time the return is filed, the full amount of the
assessment collected shall be remitted to the director of administrative services.
The director of administrative services may establish shorter reporting periods for
any operator if he or she deems it necessary'in order to insure collection of the
assessment, and he or she may require further information in the return."
SECTION 2. The definition of "Lodging" contained in Section 3.46.020 of the Arroyo
Grande Municipal Code is hereby amended to read as follows:
"'Lodging' means any structure, or any portion of any structure, which is
occupied or intended or designed for occupancy by transients for dwelling,
lodging or sleeping purposes, and includes any hotel, motel, inn, bed and
breakfast or vacation rental, vacation room rentals or homestay that pays
transient occupancy tax. For purposes of this chapter the definition of "lodging"
shall not include RV parks"
SECTION 3. If any section, subsection, subdivision, paragraph, sentence, or clause of
this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall
not affect the validity of the remaining portion of this Ordinance or any part thereof. The
City Council hereby declares that it would have passed each section, subsection,
subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or
more section, subsection, subdivision, paragraph, sentence, or clause be declared
unconstitutional.
SECTION 4. A summary of this Ordinance shall be published in a newspaper
published and circulated in the City of Arroyo Grande at least five (5) days prior to the
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PAGE 3
City Council meeting at which the proposed Ordinance is to be adopted. A certified
copy of the full text of the proposed Ordinance shall be posted in the office of the City
Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the
names of those City Council Members voting for and against the Ordinance shall be
published again, and the City Clerk shall post a certified copy of the full text of such
adopted Ordinance.
SECTION 5. This Ordinance shall take effect thirty (30) days after its adoption.
On motion by Council Member Brown, seconded by Council Member Barneich, and by the
following roll call vote to wit:
AYES: Council Members Brown, Barneich, Guthrie, and Mayor Hill
NOES: Council Member Harmon
ABSENT: None
the foregoing Ordinance was adopted this 9th day of December, 2014.
ORDINANCE NO. loCo7
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J HILL, MAYOR
ATTEST:
KELL E ORE, CITY CLERK
APPROVED AS TO CONTENT:
,d / i
DEBBIE MALICOAT, ACTING CITY MANAGER
APPROVED AS TO FORM:
TIM THY J. CA EL, CITY ATTORNEY
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OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San
Luis Obispo, State of California, -do hereby certify under penalty of perjury, that
_ the attached Ordinance No. 667 which was introduced at a regular meeting of the
City Council on November 25, 2014; was passed and adopted at a regular
meeting of the City Council on the 9th day of December 2014; and was duly
published in accordance with State law (G.C. 40806).
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 18th
day of December 2014.
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KELL W MORE, CITY CLERK
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