R 4982 RESOLUTION NO. 4982
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE AUTHORIZING THE
ADMINISTRATIVE SERVICES DIRECTOR TO WAIVE
LATE PAYMENT PENALTIES AND INTEREST FOR
DELINQUENT TRANSIENT OCCUPANCY TAX RECEIVED
FOR STAYS DURING MARCH, APRIL AND MAY 2020
AND EXTENDING THE PAYMENT DEADLINE UNTIL
AUGUST 31, 2020
WHEREAS, a local emergency relating to the COVID-19 pandemic has been declared in
the City of Arroyo Grande; and
WHEREAS, the Centers for Disease Control and Prevention, the California Department
of Health, and San Luis Obispo County have all issued shelter in place orders to enforce
social distancing, prohibited group events, and taken other precautions to protect public
health and prevent transmission of this highly communicable virus; and
WHEREAS, the effects of the various orders and actions needed to slow the spread of
COVID-19 have resulted in significant economic effects on lodging businesses in the
City, and hotel and motel room reservations have dramatically decreased; and
WHEREAS, hotels, motels, and other lodging businesses in the City provide not only a
place for visitors to stay while in the City, but also generate additional revenue in the
form of increased sales tax dollars from visitors' purchases at local stores and
restaurants; and
WHEREAS, if hotels, motels, and other lodging businesses in the City were forced to
close permanently as a result of the decrease in room reservations, there will be at
minimum a significant delay in such businesses reopening, and there may be a
permanent reduction in the number of hotel rooms in the City, resulting in reductions in
City revenue and the elimination of an essential amenity for visitors to the City; and
WHEREAS, hotels, motels, and other lodging businesses in the City are subject to
Chapter 3.24 of the Arroyo Grande Municipal Code, which requires those businesses to
collect from their guests a 10% occupancy tax, referred to as the transient occupancy tax,
which then must be remitted to the City; and
WHEREAS,Arroyo Grande Municipal Code Section 3.24.080 provides that"Any operator
who shall fail to remit any tax imposed by the provisions of this chapter within the time
required shall pay a penalty in the amount of ten (10) percent of the tax in addition to the
amount of the tax"; and
RESOLUTION NO. 4982
PAGE 2
WHEREAS, the City Council wishes to temporarily waive penalties and interest for late
payment of currently due transient occupancy taxes due to the COVI D-19 pandemic that is
acutely and disproportionately impacting the local lodging and hotel industry.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
1. The recitals set forth herein are true, correct and incorporated herein.
2. The Administrative Services Director is authorized to waive late payment
penalties and interest imposed by Chapter 3.24 of the Arroyo Grande Municipal
Code for Transient Occupancy Tax (TOT) revenues received by lodging
establishments for March 2020, April 2020, and May 2020 transient occupancy
lodging services and to extend the payment deadline until August 31, 2020.
3. In order to qualify for the waiver of late payment penalties and interest for
March, April, and May TOT, lodging businesses must:
a. File their March, April, and May TOT returns based on standard
deadlines. Payment of TOT will be due August 31, 2020; and
b. March, April, and May filings must include payment of the Tourism
Management District and Tourism Business Improvement District
assessments.
4. Nothing herein shall relieve any person or entity of its obligation to pay and to
remit to the City amounts otherwise due pursuant to Chapter 3.24 and any late
payment penalties and interest that otherwise would have become due for
failure or refusal to pay amounts due for March, April, and May 2020 shall be
assessed and shall become due and payable to the City if the referenced TOT
payments due to the City have not been made in full by August 31, 2020.
On motion by Council Member Storton, seconded by Council Member Paulding, and on
the following roll call vote, to wit:
AYES: Council Members Storton, Paulding, George, Barneich, and Mayor Ray Russom
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 14th day of April, 2020.
RESOLUTION NO. 4982
PAGE 3
n,AT
CAREN ' •Y R I S 4M, MAYOR
ATTEST:
d41/1X
KELLYT ORE, CITY CLERK
APPROVED AS TO CONTENT:
JAMES AQ' • , CITY MANAGER
APPROVED AS TO FORM:
771(‘/*-`TIMOTHY J. CARMEL, CITY ATTORNEY
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
Resolution No. 4982 was passed and adopted at a regular meeting of the City Council
of the City of Arroyo Grande on the 14th day of April, 2020.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 16th day of
April, 2020.
�'l41/664.;<-
-
KELLY W T `� RE, CITY CLERK