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HomeMy WebLinkAbout2010-037 Yakima County Tourist Promotion Area Ordinance Modification ORDINANCE NO 2010 -37 AN ORDINANCE relating to the Tourism Promotion Area for the City of Yakima, amending Chapter 5 99 entitled "Tourism Promotion Area" of the City of Yakima Municipal Code, specifically section 5 99 060, entitled "Establishment of Yakima hotel and motel commission" and specifically amending Section 5 99 060 A and C regarding the provisions on voting members BE IT ORDAINED BY THE CITY OF YAKIMA. SECTION 1 Section 5 99 060 A and C of Chapter 5 99 entitled "Tourism Promotion Area" of the Yakima Municipal Code is amended to read as follows Chapter 5.99 TOURISM PROMOTION AREA Sections 5.99.010 Definitions 5.99.020 Establishment of tourism promotion area. 5.99.030 Establishment of tourism promotion area zones 5.99.040 Tourism promotion charge 5.99.050 Use of tourism promotion charge revenues 5.99.060 Establishment of Yakima hotel and motel commission 5.99.070 Modification or disestablishment of the tourism promotion area. 5.99.080 Administration /collection of tourism promotion charges 5.99.090 Inspection of records 5.99.100 Contract with state for administration 5.99.110 Violation — Penalties 5.99.120 Severability 5.99 010 Definitions As used in this chapter the following terms, unless the context otherwise dictates, shall have the following meanings "Agreement" means the interlocal cooperation agreement between the city of Yakima, the city of Union Gap, the city of Selah and Yakima County for the establishment of a Yakima County tourism promotion area by the city of Yakima as authorized by RCW 35 101 040(2) "Annual budget" means the Yakima County tourism promotion area budget for a fiscal year, as adopted or amended by the city council of the city of Yakima, after the receipt of a recommendation from the Yakima hotel and motel commission, identifying all estimated revenue from tourism promotion charges for the fiscal year, and providing for all proposed uses of tourism promotion charge revenue for the purpose of providing tourism promotion in Yakima County for the ensuing fiscal year "Lodging business" means business located within the Yakima County tourism promotion area that furnishes lodging taxable by the state under RCW Chapter 82.08 and that is classified as a hotel or motel with forty or more lodging units Reasonable vehicle parks and campgrounds are not included "Operator" means the operator of a lodging business, whether in the capacity of owner, general manager, lessee, sub - lessee, mortgagee in possession, licensee, designee, or any other similar capacity The "promotion of tourism and convention business" means activities and expenditures designed to increase tourism and convention business, including but not limited to, advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists to the city of Yakima, the city of Selah, the city of Union Gap, and the unincorporated areas of Yakima County "Tourism promotion charge" means the charge imposed by the city of Yakima on the furnishing of lodging by a lodging business within the Yakima County tourism promotion area for the purpose of providing for funding of the promotion of convention and tourism business, under the authority of RCW 35 101 050, in Yakima County "Yakima County tourism promotion area" means the tourism promotion area with boundaries that include the city of Yakima, the city of Selah, the city of Union Gap, and the unincorporated areas of Yakima County and which was established by the ordinance of the city council of the city of Yakima pursuant to the authority of RCW Chapter 35 101 as authorized by the resolutions of the city council of the city of Yakima, the city council of the city of Union Gap, the city council of the city of Selah, and the county commissioners of Yakima County adopting the terms of the agreement. "Yakima hotel and motel commission" means the Yakima hotel and motel commission, established by the city of Yakima, whose members are appointed by the county commissioners of Yakima County, the city council of the city of Yakima, the city council of the city of Union Gap, and the city council of the city of Selah to provide recommendations to the city council of the city of Yakima on proposed uses and projects of the Yakima County tourism promotion area "Zone" or "zones" means the distinct geographic subarea or subareas within the Yakima County tourism promotion area as established by ordinance of the city council of the city of Yakima (Ord 2004 -17 § 1 (part), 2004) 5.99 020 Establishment of tourism promotion area There is hereby established a Yakima County tourism promotion area having boundaries which include the city of Yakima, the city of Selah, the city of Union Gap, and the unincorporated area of Yakima County Provided, however, no area within Yakima County which is within the boundaries of any incorporated city or town shall be included within the boundaries of the tourism promotion area unless the city or town has entered into an agreement prior to the effective date of the ordinance codified in this chapter Distinct geographic zones are established and defined in Section 5.99.030 of this chapter (Ord 2004 -17 § 1 (part), 2004) 5.99 030 Establishment of tourism promotion area zones. There are hereby established three distinct geographic zones within the Yakima County tourism promotion area Zone A Zone A encompasses all geographic locations within the area of the city of Yakima defined as follows Downtown core bordered from the centerline of East "D" street to the North, the centerline of Third Street to the West, the centerline of East Spruce Street to the South and the centerline of Interstate 82 to the East. Zone B Zone B encompasses all geographic locations within the area of the incorporated limits of the city of Yakima, the city of Selah and the city of Union Gap, except the geographic locations that comprise Zone A. 2 Zone C Zone C encompasses all geographic locations outside Zones A and B, but within the unincorporated area of Yakima County (Ord 2004 -17 § 1 (part), 2004) 5.99 040 Tourism promotion charge. Effective July 1, 2004, in the zones that are established and described in Section 5.99.030 of this chapter, there shall be imposed a tourism promotion charge on the furnishing of lodging by a lodging business located in the Yakima County tourism promotion area as follows Zone A. $1 50 per room /day Zone B $0 75 per room /day Zone C $0 50 per room /day The tourism promotion charges imposed under this chapter are not a tax on the "sale of lodging" for the purposes of calculating the lodging tax limit specified in RCW 82 14 410 (Ord 2004 -17 § 1 (part), 2004) 5.99 050 Use of tourism promotion charge revenues. The revenues from the tourism promotion charges imposed by the city of Yakima within the Yakima County tourism promotion area shall be used for the following purposes only A. The funding of all activities and expenditures designed to increase tourism promotion and convention business within the Yakima County tourism promotion area as specified in the Yakima County tourism promotion area budget; B The marketing of convention and business that benefit local tourism and result in increased convention business within the Yakima County tourism promotion area, C The marketing of Yakima County to the travel industry in order to benefit local tourism and result in overnight stays within the Yakima County tourism promotion area, and D The marketing of Yakima County to recruit major sporting events in order to promote local tourism resulting in overnight stays within the Yakima County tourism promotion area (Ord 2004 -17 § 1 (part), 2004) 5.99 060 Establishment of Yakima hotel and motel commission A. The city council of the city of Yakima, pursuant to the authority of RCW 35 101 1301(1), hereby establishes an eleven member Yakima hotel and motel commission to advise the city council of the city of Yakima on the expenditure of tourism promotion charge revenues by the Yakima County tourism promotion area to fund tourism promotion in Yakima County, which shall be composed of seven voting members and four nonvoting members who shall be appointed in the manner set forth in this section B Voting members of the Yakima hotel and motel commission shall be selected by the city council of the city of Yakima, the city council of the city of Selah, and the city council of the city of Union Gap, in the manner set forth in subsections C and D of this section, from a list of nominees prepared by the Yakima Valley lodging association All nominees for voting membership on the Yakima hotel and motel commission must be operators of lodging businesses 3 within the Yakima County tourism promotion area or employed by the operator of such a lodging business C The city council of the city of Selah shall appoint one voting member to represent the city of Selah, the city council of the city of Union Gap shall appoint two voting members to represent the city of Union Gap, and the city council of the city of Yakima shall appoint four voting members to represent the city of Yakima, with two of the four voting members appointed by the city of Yakima representing qualified lodging businesses that are located in the portion of the Zone B geographical zone within the city limits of the city of Yakima D One nonvoting member of the commission shall be appointed from the members of the county commissioners of Yakima County; one nonvoting member shall be appointed from the members of the city council of the city of Yakima, one nonvoting member shall be appointed from the members of the city council of the city of Union Gap, and one nonvoting member may be appointed from the members of the city council of the city of Selah Nonvoting members of the Yakima hotel and motel commission may participate in all discussions regarding proposed activities and programs by the Yakima County tourism promotion area for the promotion and marketing of tourism in Yakima County but shall not have voting rights E The initial voting members of the Yakima hotel and motel commission shall serve staggered terms, with one member serving a one -year time, two members serving two -year terms, and two members serving three -year terms The length of the term for each individual member of the initial Yakima hotel and motel commission shall be chosen by lot at the first meeting of the commission Thereafter, all voting members subsequently appointed to the Yakima hotel and motel commission shall serve for three -year terms F All of the revenues from tourism promotion charges collected by the city council of the city of Yakima from lodging businesses within the jurisdiction of the unincorporated area of Yakima County, the city of Yakima, the city of Union Gap, and the city of Selah shall be allocated by the city council of the city of Yakima in accordance with the annual budget for the Yakima County tourism promotion area The Yakima hotel and motel commission shall make a recommendation to the city council of the city of Yakima on all annual budgets, however, the city council of the city of Yakima shall have the ultimate authority to set and approve all annual budgets (Ord 2004 -17 § 1 (part), 2004) 5.99 070 Modification or disestablishment of the tourism promotion area. A. The city council of the city of Yakima, by appropriate action, may modify the provisions of the ordinance codified in this chapter or provide for the disestablishment of the Yakima County tourism promotion area, after adopting a resolution of intention to such effect. Such resolution of intention shall describe the change or changes proposed, or indicate that it is the intention to disestablish the Yakima County tourism promotion area, and shall state the time and place of a public hearing to be held by the city council of the city of Yakima to consider the proposed action B If the operators of lodging businesses which paid over forty percent of the tourism promotion charges imposed within the Yakima County tourism promotion area during the preceding calendar year file a petition with the city council of the city of Yakima or the Yakima hotel and motel commission requesting that the city council of the city of Yakima adopt a resolution of intention to modify or disestablish the Yakima County tourism promotion area, the city council of the city of Yakima shall adopt such resolution and act upon it as required by law 4 Signatures on such petition shall be those of a duly authorized representative of the operators of lodging businesses in the Yakima County tourism promotion area In the event of failure on the part of the city council of the city of Yakima to honor this request, the participating local governments reserve the right to withdraw from this agreement upon three months notice to the other participating local governments Provided, however, the effective date of any modification or withdrawal shall be coordinated with the Washington State Department of Revenue in conjunction with its responsibility to administer the tourism promotion charges imposed pursuant to this chapter C In the event a resolution under subsection A or B of this section proposes disestablishment of the Yakima County tourism promotion area, the city council of the city of Yakima by ordinance shall disestablish the Yakima County tourism promotion area, unless at such hearing, protest against disestablishment is made by the operators of lodging businesses paying over fifty percent of the tourism promotion charges in the Yakima County Tourism promotion area (Ord 2004 -17 § 1 (part), 2004) 5.99 080 Administration /collection of tourism promotion charges. The tourism promotion charges imposed under this chapter shall be administered by the Washington State Department of Revenue and shall be collected by lodging businesses from persons taxable by the state under RCW Chapter 82 08 The provisions of RCW Chapter 82 32 apply to the tourism promotion charges imposed under this chapter The tourism promotion charges collected by the Washington State Department of Revenue shall be deposited by the department in the local tourism promotion account created and maintained by the state treasurer All receipts from the tourism promotion charges imposed hereunder must be deposited into this account. Expenditures from the account may only be used for tourism promotion resulting in overnight stays in the tourism promotion area lodging businesses The state treasurer shall distribute the money in the account on a monthly basis to the city of Yakima. (Ord 2004 -17 § 1 (part), 2004) 5.99 090 Inspection of records. All lodging businesses subject to the collection of the tourism promotion charges, as set forth in this chapter, and the city council of the city of Yakima consent to the inspection of such records as are deemed necessary by the Washington State Department of Revenue pursuant to applicable statues, rules or regulations (Ord 2004 -17 § 1 (part), 2004) 5.99 100 Contract with state for administration The mayor of the city of Yakima, or a majority of the city council of the city of Yakima, is authorized to enter into contract(s), at other than an open meeting, with the Washington State Department of Revenue for the administration of the charge imposed pursuant to this chapter (Ord 2004 -17 § 1 (part), 2004) 5.99 110 Violation — Penalties. Any person, firm or corporation who fails or refuses to collect the charge as required under the terms of this chapter with the intent to violate the provisions of the ordinance codified in this chapter or to gain some advantage or benefit, either directly or indirectly, and any guest who refuses to pay any charge due under this chapter, shall be guilty of a misdemeanor, and upon conviction thereof, shall be punished by imprisonment in the county jail for a maximum term 5 fixed by the court of not more than ninety days, or by a fine in the amount fixed by the court of not more than one thousand dollars or by both such imprisonment and fine Provided, however, the penalty provided for under the terms of this section shall be in addition to any other provisions provided for by law (Ord 2004 -17 § 1 (part), 2004) 5.99 120 Severability If any part or provision of the ordinance codified in this chapter, or its application to any person or circumstance is held invalid, it is the intent of the city council of the city of Yakima that the remainder of this chapter, or its application of the provisions to other persons or circumstances is not affected (Ord 2004- 17 § 1 (part), 2004) SECTION 2. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this ordinance SECTION 3 This ordinance shall not be in full force and effect until 30 days after its passage, approval, and publication as provided by law and by the City Charter AND approval is received from the Washington State Department of Revenue as required by YMC 5 99 070(B) PASSED BY THE CITY COUNCIL, signed and approved this 21 day of September, 2010 4h . j Micah Ca Mayor ATTEST i City Clerk Ordinance No 2010 -37 Publication Date September 24, 2010 Effective Date October 24, 2010 (and authorization of Washington State Department of Revenue) 6 ,.STATE a� 07 r.' 'L 1 STATE OF WASHINGTON DEPARTMENT OF REVENUE October 7, 2010 John Cooper Yakima Valley Visitors and Convention Bureau 10 North 8 Street - Yakima, WA 98901 RE Ordinance No. 2010 -37 Dear Mr Cooper, Please consider this confirmation that the Department of Revenue has received Ordinance 2010 -37 relating to the Yakima Valley Hotel /Motel Commission. If there are questions regarding this, please feel free to call. Sincerely, Andy Van Gerpen Department of Revenue (360) 902 -7172 Taxpayer Account Administration Division PO Box 47476 • Olympia, Washington 98504 -7476 0 • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No d For Meeting Of September 21, 2010 ITEM TITLE Public hearing and consideration of modification to the Yakima County Tourist Promotion Area Ordinance by adding two additional voting members appointed by the Yakima Hotel Motel Commission from lodging properties located in Zone B within the City of Yakima, and setting the time and place for a public hearing to be held for that purpose SUBMITTED BY Jeff Cutter, City Attorney CONTACT PERSON /TELEPHONE Jeff Cutter, 575 -6030 SUMMARY EXPLANATION A petition was presented by representatives of the Yakima County Tourism Promotion Area who pay more than forty percent of the Tourism Promotion Area charges The petition requests that Ordinance No 2004 -17, presently included in the Yakima Municipal Code at YMC 5 99, be modified to increase the voting membership of the 0 Yakima Hotel and Motel Commission from five to seven members, with the two additional voting members to be appointed from qualified lodging properties located within Zone B of the Tourism Promotion Area This petition request was reviewed and discussed by the City Council on August 17, 2010 and staff was directed to bring forward a Resolution of Intent to modify the Tourism Promotion Area ordinance and to set the time and place for a public hearing to consider said amendment in accord with the provisions of the ordinance Resolution No R- 2010 -102 was adopted by Council at the September 7, 2010 business meeting Attached is an amended Tourism Promotion Area ordinance reflecting the requested change in the ordinance, for consideration following the public hearing If the Council approves the ordinance modification after the public hearing, the modification will not become effective until the State Department of Revenue has been advised of the modification and the effective date coordinated with Revenue, also as required by the underlying ordinance Resolution _Ordinance X Contract _Other(Specify) Contract Mail to (name and address) Phone Funding Source ��� APPROVED FOR SUBMITTAL. \ 1 y Manager STAFF RECOMMENDATION Set a public hearing to consider authorizing the modification of the Tourism Promotion Ordinance 40 BOARD /COMMISSION /COMMITTEE RECOMMENDATION The Council Nominating Committee favors the requested change COUNCIL ACTION 12/01/2010 09:48 5095756252 YVVCB PAGE 02 , , 41$ ' 7Ar !, es STATE OF WASHINGTON DEPARTMENT OF REVENUE October 7, 2010 John Cooper Yakima Valley Visitors and Convention Bureau 10 North 8 Street Yakima, WA 98901 RE: Ordinance No. 2010 -37 Dear Mr. Cooper, Please consider this confirmation that the Department of Revenue has received Ordinance 2010 -37 relating to the Yakima Valley Hotel /Motel Commission. If there are questions regarding this, please feel free to call. Sincerely, Andy Van Gerpen Department of Revenue (360) 902 -7172 Taxpayer Account Administration Division PO Box 47476 0 Olympia, Washington 98509 -7476 041519P14 ILO