TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Interim Finance Director
Gwen Eng, Purchasing Manager
SUBJECT:Title
Resolution No. 18-0128 Approving a Contract with the Lew Edwards Group for Consulting Services in Connection with the City's Hotel/Motel Transient Occupancy Tax (Transient Occupancy Tax) Ballot Measure in the Amount of $57,850 (Interim Finance Director Charelian).
a) ADOPT RESOLUTION NO. 18-0128
b) APPROPRIATE FUNDS
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 18-0128 approving an agreement with the Lew Edwards Group for consulting services for a Transient Occupancy Tax (TOT) rate update in the amount of $57,850; and
2. Appropriate the amount of $57,850 from the City Council Contingency for these services.
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FISCAL IMPLICATIONS:
The City Council Contingency has an available balance of $100,000 that can be used for this purpose. The total cost for these consulting services is $57,850.
BACKGROUND:
On August 21, 2018, the City Council directed staff to assess the City's current TOT rate and analyze whether an increase in the rate should be presented to the voters at the March 2019 general municipal election. Currently, the City collects approximately $5.2 million in TOT revenue each year from 12 hotels and motels through a "hotel bed tax" of 10%, which is paid by lodging guests. If that rate is adjusted between 12% - 14%, it is estimated to generate an additional $1.0 - $2.0 million for the general fund which could be used to address priorities valued by the community such as upgrading outdated public infrastructure, street maintenance, storm water, police and fire public safety, capital improvement projects, street lighting, senior services and reinvested in programs that support our business community. A TOT is not a tax on residents but on visitors who s...
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