For the purpose of calculating and applying the amount of assessments owed, the following definitions shall apply:
(a) 
"The Act"
refers to the authority under which this article is enacted. The authority for a tourism improvement district is Part 6 (entitled "Parking and Business Improvement Area Law of 1989" – commencing with Section 36500) of Division 18 (entitled "Parking") of the California Streets and Highways Code.
(b) 
The "advisory board"
is appointed by the City Council, pursuant to Section 36530 of the Act, to manage the affairs of the district.
(c) 
"Billing period"
shall refer to the following fiscal quarters:
(1) 
First quarter: July, August, September;
(2) 
Second quarter: October, November, December;
(3) 
Third quarter: January, February, March; and
(4) 
Fourth quarter: April, May, June.
(d) 
"Fiscal year"
means July 1st to and including June 30th of the following year.
(Ord. 1797 § 1, 12-14-2004)
A tourism improvement district is hereby established pursuant to the Act. The boundaries of the district and the benefit zones within the district shall be as set forth on Exhibit A, which was attached to Resolution No. 7176, and is incorporated herein by reference. [Resolution No. 7176 declared the intention of the City Council to establish a tourism improvement district.] That map depicts the initial district. The district shall be known as the "Santa Clara Tourism Improvement District" (the "district"). From time to time, amendments to the boundaries of the initial district map may be made by resolution of the City Council pursuant to the provisions of Chapter 3 (entitled "Assessments" – Section 36530 et seq.) and Chapter 4 (entitled "Modification of Boundaries, Assessments, Improvements, or Activities" – Section 36540 et seq.) of the Act. Amendments to Exhibit A will contain, on the face of Exhibit A, the number of the amending resolution and date of adoption.
(Ord. 1797 § 1, 12-14-2004)
There shall be an advisory board of the district to administer the affairs of the district. Said advisory board shall be constituted of representatives of businesses within the district. Within the advisory board there shall be a president, vice-president, secretary and treasurer elected by the membership, and such other officers as deemed necessary by the advisory board. At their discretion, other officers may be appointed by the advisory board. All voting within the district regarding the election of advisory board officers and any actions regarding the normal and routine conduct of district business shall be based on one vote per assessed dollar, and said business must be current in payment of their district assessment(s) to participate in such votes.
(Ord. 1797 § 1, 12-14-2004)
All hotel properties located within the district boundaries shown on Exhibit A, as amended from time to time, shall, on Monday, February 14, 2005, commence collection of a benefit assessment from hotel guests based on the payment of one dollar ($1.00) per room per occupied night.
(Ord. 1797 § 1, 12-14-2004)
The activities to be provided to the district will be funded by the levy of the assessments. A partial listing of the types of improvements and activities proposed to be funded by the levy of assessments on businesses in the district includes, but is not limited to:
(a) 
Sponsorship of an aggressive and colorful marketing campaign developed to attract additional travelers and tourists.
(b) 
Sponsorship of aggressive marketing efforts to attract additional conventions.
(c) 
Possibly sponsor the services of a consulting firm to prepare a travel/tourism marketing study and plan for the purpose of determining where to focus marketing funds and what market(s) to target as well as what specific marketing programs might be most effective.
(d) 
Possibly sponsor print ads in Sunset, Via and other similar travel publications.
(e) 
Possibly sponsor a creative and colorful outdoor advertising campaign.
(f) 
Possibly sponsor a commercial marketing campaign to attract specific cultural groups.
(g) 
Sponsor administrative costs of program development and implementation. The City Council finds that businesses within the district will be benefited by the above-referenced activities funded by the proposed assessment, as amended from time to time.
(Ord. 1797 § 1, 12-14-2004)
No person or business shall be required to pay an assessment based on: (a) a residential use of the property within the district, or (b) a nonprofit organization as defined by Section 501(c)(3) or (c)(6) of the Internal Revenue Code (26 U.S.C.A.) located within the district. Various other businesses located within the district boundaries, but deemed not to be directly benefited from a tourism and convention stimulation program, may also be exempted.
(Ord. 1797 § 1, 12-14-2004)
Any new business subject to the assessment established within the district shall not be required to pay an assessment for the billing period (the fiscal quarter) in which said business is initiated. The business will be considered initiated on the date of issuance of a City business license. This waiver shall not apply to an existing business that has changed ownership or location within the district. City agrees to supply the district with timely information regarding new businesses initiated within the district.
(Ord. 1797 § 1, 12-14-2004)
Santa Clara businesses located and benefited by the district shall commence submitting to the City the assessment monies collected from their guests during the initial fiscal quarter by April 14, 2005 (for the third fiscal quarter), and thereafter by the tenth business day of the month following the last day of a designated fiscal quarter [i.e., the payment for the fourth fiscal quarter ending June 30, 2005, is due by July 14, 2005]. The assessment funds and the accounting information backup for the funds shall be submitted to the City in accordance with this schedule. The City will forward to the district the funds (without interest) received from the participant businesses within thirty (30) days of the funds being submitted to the City.
(Ord. 1797 § 1, 12-14-2004)
There will be a City administrative charge. The City's administrative charge will initially be seven hundred fifty dollars ($750.00) per fiscal quarter (three thousand dollars [$3,000.00] per fiscal year) for processing the assessment submissions. In addition, the City shall be reimbursed for any of its out-of-pocket expenses (i.e., mailing, newspaper notices, etc.). The administrative charge will be reviewed annually as part of the annual report submitted by the advisory board to the City. The administrative charge and out-of-pocket reimbursement will be made quarterly as a deduction from the assessment funds the City will forward to the district quarterly.
(Ord. 1797 § 1, 12-14-2004)
Contributions to the district will be permitted on a voluntary basis. The boundary of the district shall not be modified as a result of the contribution, nor shall said contributing business be considered a member of the district for voting or other purposes. However, said business making a voluntary contribution may be entitled to participate in the programs of the district upon a finding by the advisory board that the district derives a benefit from said business' participation in the program.
(Ord. 1797 § 1, 12-14-2004)
Pursuant to provisions of Section 36533 of the Act, it shall be necessary for the advisory board to present an annual report for City Council review and approval prior to the beginning of each fiscal year, as defined hereinabove. The annual report shall be submitted by April 1st of each year commencing April 1, 2006. Among the reasons for the submission of the annual report is to comply with provisions regarding public notice and hearing prior to establishing the benefit assessments for the following fiscal year pursuant to Sections 36534 and 35535 of the Act. Submission of a district budget is one of the mandated components of the annual report.
(Ord. 1797 § 1, 12-14-2004)
Decisions regarding the expenditure of funds will be made pursuant to Chapter 3 (entitled "Assessments" – Section 36530 et seq.) and Chapter 4 (entitled "Modification of Boundaries, Assessments, Improvements, or Activities" – Section 36540 et seq.) of the Act.
(Ord. 1797 § 1, 12-14-2004)
Proceeding to disestablish the district shall be initiated by the City Council following the presentation of a petition to the City Council signed by district business owners paying fifty percent (50%) or more of the total assessments levied in the last four completed fiscal quarters. Proceedings to disestablish the district shall follow the procedures set forth in the Act. The City Council shall disestablish the district if, following the public hearing prescribed in Section 36550(b), written protests are not withdrawn as to reduce the protests below the fifty percent (50%) level. In the event of disestablishment of the district, there may be surplus funds remaining. It would be difficult to return the funds to the individual guests who had paid the assessment. Consequently, the surplus funds, if any, are to be donated to bona fide charitable, educational, civic, religious or similar tax-exempt, nonprofit organization(s). The designation of recipient organization(s) and the amount to be donated will be at the discretion of the advisory board.
(Ord. 1797 § 1, 12-14-2004)