CC Resolution 2006-066RESOLUTION NO. 2006-066
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LA QUINTA, CALIFORNIA, ORDERING
THE SUBMISSION TO THE QUALIFIED ELECTORS
OF THE CITY A CERTAIN MEASURE VALIDATING,
RE-ENACTING AND APPROVING THE CITY'S
TRANSIENT OCCUPANCY TAX RATE AND THE
DEFINITION OF GROUP HOTELS, AT THE
GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 7, 2006, AS CALLED AND
CONSOLIDATED BY RESOLUTION NOS. 2006-043
AND 2006-044 AND DIRECTING THE CITY
ATTORNEY TO PREPARE AN IMPARTIAL
ANALYSIS OF THE MEASURE
WHEREAS, a General Municipal Election on Tuesday, November 7, 2006 has
been called by Resolution No. 2006-043, and whereas the City also requested that
the Board of Supervisors of the County of Riverside consolidate such election with
the Statewide General Election to be held the same date pursuant to Resolution
No. 2006-044; and
WHEREAS, the City Council also desires to submit to the voters at the
November 7, 2006 General Municipal Election a question relating to Transient
Occupancy Tax pursuant to Government Code sections 53723, 53724 and Elections
Code section 9222.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the. City of
La Quinta, California, as follows:
SECTION 1: The validation and re-enactment or approval of certain
provisions of the City's Transient Occupancy Tax are hereby proposed pursuant to
Government Code Section 53724(a) in the form and at the rates stated in
Ordinance No. 428, which is attached hereto as Exhibit "A" and incorporated
herein by this reference. The type of tax, the rate of the tax, and the method of its
collection are stated in Ordinance No. 428. This proposal shall be presented to the
voters of the City at the November 7, 2006 General Municipal Election.
SECTION 2: That the City Council, pursuant to its right and authority, does
order submitted to the voters at the General Municipal Election on November 7, 2006
the following question:
Resolution No. 2006-066
Re-enactment of Transient Occupancy Tax
Adopted: July 5, 2006
Page 2
Shall Ordinance No. 428 be adopted to validate, YES
re-enact, and approve the existing transient
occupancy tax rate of 11 % for group hotels and
10% for all other hotels, as such rates are
established by the first sentence of Municipal NO
Code Section 3.24.030 and as 'group hotels are
defined in Municipal Code Section 3.24.020.1,
which provisions were passed in September of
1992 in Ordinance No. 211 ?
SECTION 3: That the complete text of the proposed measure (Ordinance
No. 428) submitted to the voters is attached as Exhibit "A."
SECTION 4: That the polls for the election shall be open at 7:00 a.m. of the
day of the election and shall remain open continuously from that time until 8:00 p.m.
of the same day when the polls shall be closed, except as provided in Section 14401
of the Elections Code of the State of California.
SECTION 5: That in all particulars not recited in this Resolution, the election
shall be held and conducted as provided by law for holding municipal elections.
SECTION 6: That notice of the time and place of holding the election is given
and the City Clerk is authorized, instructed and directed to give further or additional
notice of the election, in time, form and manner as required by law.
SECTION 7: Pursuant, to Elections Code Section 9280, the City Council hereby
directs the City Clerk to transmit a copy of the measure to the City Attorney. The
City Attorney shall prepare an impartial analysis of the measure, not to exceed 500
words in length, showing the effect of the measure on the existing law and the
operation of the measure, and transmit such impartial analysis to the City Clerk within
ten (10) days of the adoption of this Resolution.
SECTION 8: That the City Clerk shall certify to the passage and adoption of
this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
City Council held on this 5th day of July, 2006, by the following vote to wit:
Resolution No. 2006-066
Re-enactment of Transient Occupancy Tax
Adopted: July 5, 2006
Page 3
AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DON AD LPH, lWayor
City of La Quinta, California
ATTEST:
JUN EEK, MMC, City Clerk
City of La Quinta, California
(City Seat)
APPROVED AS TO FORM:
M. KAjlAERlr;TE- JrENSON, C' torney
Ci of La Quinta, California
EXHIBIT "A"
ORDINANCE NO. 428
AN ORDINANCE OF THE CITY OF LA QUINTA, CALIFORNIA,
VALIDATING, RE-ENACTING AND APPROVING THE CITY'S
TRANSIENT OCCUPANCY TAX RATE AND THE DEFINITION OF
GROUP HOTELS
THE PEOPLE OF THE CITY OF LA QU1NTA, CALIFORNIA, DO ORDAIN AS
FOLLOWS:
SECTION 1. Findings. The People of the City of La Quints, California, find
as follows:
(a) In September of 1992, the La Quinta City Council adopted
Ordinance No. 211. Section 1 of Ordinance No. 211 amended the first sentence of
Municipal Code Section 3.24.030 to increase the rate of the Transient Occupancy
Tax to 11 % from 10% for certain group hotels and to maintain the established
Transient Occupancy Tax at 10% for all other hotels. Section 2 of Ordinance
No. 211 amended Section 3.24.020 (the definitional section of the Transient
Occupancy Tax Ordinance) to add Subsection I, which is a definition for "Group
Hotels." No other provisions in Municipal Code Sections 3.24.020, 3.24.030 or in
Municipal Code Chapter 3.24 (the City's Transient Occupancy Tax Ordinance) were
amended by Ordinance No. 211.
(b) As adopted in Section 1 of Ordinance No. 211, the first sentence
of Municipal Code Section 3.24.030 was amended to read: "For the privilege of
occupancy in any Group Hotel or Hotel, each transient is subject to, and shall pay a
tax in the amount of eleven (1 1) percent of the rent charged by the operator or
otherwise payable by the transient for Group Hotels and ten percent (10%) for all
other Hotel occupancy." As adopted in Section 2 of Ordinance No. 211,
Subsection I of Municipal Code Section 3.24.020 was added to read: "'Group
Hotel' means any Hotel which has each of the following characteristics: (i) one
hundred twenty-five (125) or more rooms; (ii) group meeting space to
accommodate fifty (50) or more people; (iii) an on -site sales effort that solicits
and/or serves group meetings."
(c) In 1986, the State's voters approved Proposition 62 to require
voter approval of local general taxes. The City Council did not seek voter approval
of Ordinance No. 211 because a number of appeals courts, including the court
which ruled in the case of the City of Woodlake v. Logan, had previously decided
that Proposition 62's requirement that general taxes be submitted to a referendum
violated the California Constitution and was therefore unenforceable. On December
14, 1995, the California Supreme Court disapproved the Woodlake decision in the
case of Santa Clara County Local Transportation Authority v. Guardino.
Subsequently, that Court decided Howard Jarvis Taxpayers Association v. City of
La Habra, which further suggested that the. City should seek voter approval of
certain provisions in. Ordinance No. 211. The City Council thereafter has proposed
this Ordinance to the voters to validate, re-enact and approve the first sentence in
Municipal Code Section 3.24.030, as amended by Ordinance No. 211, and
Section 2 of Ordinance No. 211, which added Subsection I to Section 3.24.020 of
the Municipal Code.
SECTION 2. Validation and Re -Enactment of Certain Provisions in Existing
Ordinance. The first sentence in Municipal Code Section 3.24.030, as amended by
Ordinance No. 211, and Subsection I of Municipal Code Section 3.24.020, as
added by Section 2 of Ordinance No. 211, are hereby validated and re-enacted or
approved: The full text of these provisions is contained in Section 1, Finding "(b)"
above.
SECTION 3. Intent. The intent of Section 2 of this Ordinance is to authorize
the continued collection of the Transient Occupancy Tax at the rates established in
Ordinance No. 211's amendment to the first sentence of Municipal Code
Section 3.24.030, to validate the adoption of that tax rate, to validate taxes
previously collected pursuant to Municipal Code Section 3.24.030, and to re-enact
the first sentence in Municipal Code Section 3.24.030, as amended by Ordinance
No. 211, to authorize the future collection of the tax at the rates established in
such sentence. It is the further intent of Section 2 of this Ordinance to validate
and re-enact Subsection I of Municipal Code Section 3.24.020, as added by
Section 2 of Ordinance No. 211.
SECTION 4: Effect of this Ordinance. Other than the first sentence of
Municipal Code Section 3.24.030 and Subsection I of Municipal Code
Section 3.24.020, this Ordinance does not affect any other provisions in Municipal
Code Chapter No. 3.24. The method of collection of Transient Occupancy Tax is
as set forth in the Municipal Code Chapter 3.24.
SECTION 5: Severability. If any section, subsection, sentence, clause
phrase or portion of this Ordinance, or any section, subsection, sentence, clause
phrase or portion of Ordinance No. 211 that are validated or re-enacted by this
Ordinance, is for any reason, held to be invalid or unenforceable by a court of
competent jurisdiction, then the remaining portions of this Ordinance and Ordinance
No. 211 shall nonetheless remain in full force and effect. The People of the City of
La Quinta, California, hereby declare that they would have adopted each section,
subsection, sentence, clause, phrase, or portion of this Ordinance, and each
section, subsection, sentence, clause phrase or portion of Ordinance No. 211 that
are validated or re-enacted by this Ordinance, irrespective of the fact that any one
or more sections, subsections, sentences, clauses, phrases, or portions of this
Ordinance, and Ordinance No. 211 that are validated or re-enacted by \ this
Ordinance, be declared invalid or unenforceable.
SECTION 6. Effective Date. This Ordinance shall go into effect ten (10)
days after the date on which the election results are declared by the City Council.
SECTION 7. Codification. Upon the Effective Date of this Ordinance, the
City Clerk, in consultation with the City Attorney, is hereby authorized and directed
to codify this Ordinance in the City's Municipal Code.
SECTION 8. Execution. The Mayor is hereby authorized to attest to the
adoption of this Ordinance by the voters of the City of La Quinta by signing where
indicated below.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED, and
ADOPTED by the People of the City of La Quinta, California, voting on the 71h day
of November, 2006.
DON ADOLPH, Mayor
City of La Quinta, California
APPROVED AS TO FORM:
M. KATHERINE JENSON, City Attorney
City of La Quinta, California