Oceanside Municipal Code Ch. 24A Oceanside Tourism Marketing District

Footnotes:

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Editor's note— Ord. No. 24-OR0029-1, § 1, adopted Feb. 28, 2024, set out provisions intended for use as §§ 24A.010—24A.110. In order to preserve the style of this Code, and at the editor's discretion, these provisions have been included as 24A.1—24A.11.

The City of Oceanside hereby renews the Oceanside Tourism Marketing District (OTMD), for a nine (9) year and three (3) month life, beginning April 1, 2025, or as soon as possible thereafter, and ending nine (9) years and three (3) months from its start date, under the provisions of the Property and Business Improvement District Law of 1994, as set forth in the Streets and Highways Code of the state, Section 36600 et seq.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

The management district plan (plan) dated November 14, 2023 is hereby adopted and approved.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

(a) The activities to be provided to benefit businesses in the OTMD 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 OTMD; to provide activities or improvements outside the OTMD; or for any purpose other than the purposes specified in this chapter, the resolution of intention, the resolution of formation, and the plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the OTMD boundaries to create a specific benefit to the assessed businesses may be provided, but shall be limited to marketing or signage pointing to the OTMD.

(b) The council finds as follows:

(1) The activities funded by the assessment will provide a specific benefit to assessed businesses within the OTMD that is not provided to those not paying the assessment.

(2) 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.

(3) 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.

(4) Assessments imposed pursuant to the OTMD 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 or customer, that portion shall be specifically called out and identified for the transient or customer in any and all communications from the business owner as the "OTMD assessment" or "tourism assessment" as specified in the plan.

(c) The assessments levied for the OTMD shall be applied toward marketing and sales promotion efforts, and other improvements and activities as set forth in the plan.

(d) Assessments levied on lodging businesses and vacation rental businesses pursuant to this chapter shall be levied on the basis of benefit. Because the services provided are intended to increase room rentals, an assessment based on short term sleeping room rental revenue is the best measure of benefit.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

The assessments for the entire OTMD will total approximately three million six hundred dollars ($3,600,000.00) in the first full fiscal year (July 1, 2025—June 30, 2026). The initial "year" of operations will be a partial year consisting of three (3) months, with an anticipated assessment budget of nine hundred fifty thousand dollars ($950,000.00).

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

Bonds shall not be issued to fund the OTMD.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

The renewed OTMD includes all lodging businesses and vacation rental businesses, existing and in the future, available for public occupancy within the boundaries of the City of Oceanside as described in the management district plan.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

(a) The annual assessment rate for lodging businesses is two and one-half of one (2.5) percent of gross short-term sleeping room rental revenue. The annual assessment rate for vacation rental businesses is one and one-half of one (1.5) percent of gross short-term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on domestic or international government employees on government business. For stays longer than thirty (30) days there shall be no assessment for the thirty-first day or any day thereafter. Stays by owners of vacation rental businesses in their own vacation rental business shall not be subject to the assessment.

(b) The assessments shall be used for the purposes set forth herein and any funds remaining at the end of any year may be used in subsequent years in which the OTMD assessment is levied as long as they are used consistent with the requirements set forth herein.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

The City of Oceanside will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, interest, and overdue charges) from each lodging business and vacation rental business located in the boundaries of the OTMD. The city shall take all reasonable efforts to collect the assessments from each lodging business and vacation rental business.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

The council through adoption of the ordinance from which this chapter is derived and the plan, has the right pursuant to Streets and Highways Code Section 36651, to identify the body that shall implement the proposed program, which shall be the owners' association of the OTMD as defined in Streets and Highways Code Section 36612. The city council has determined that the Visit Oceanside shall continue to be the OTMD owners' association. Passage of the ordinance from which this chapter is derived authorizes the city council to contract with Visit Oceanside to administer the OTMD.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

Visit Oceanside, pursuant to Streets and Highways Code Section 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 improvement and activities described in the report. The first report shall be due after the first year of operation of the renewed OTMD.

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)

The OTMD renewed pursuant to the ordinance from which this chapter is derived shall be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code Section 36600 et. seq.).

(Ord. No. 24-OR0029-1, § 1, 2-28-2024)