Chapter 6.55 — SAN FRANCISCO PENINSULA TOURISM MARKETING DISTRICT

The City of Burlingame created the San Francisco Peninsula Tourism Marketing District (SFPTMD), for a five year life, beginning January 1, 2024, or as soon as possible thereafter, and end five years 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. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

The management district plan (plan) dated January 3, 2024 reflecting the addition of Foster City is hereby adopted and approved. (Ord. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

The activities to be provided to benefit lodging businesses in the SFPTMD 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 SFPTMD; to provide activities or improvements outside the SFPTMD; or for any purpose other than the purposes specified in this chapter, the Resolution of Intention, the Resolution of Formation, the Resolution of Modification, and the plan. Notwithstanding the foregoing, improvements and activities that must be provided outside the SFPTMD boundaries to create a specific benefit to the assessed lodging businesses may be provided, but shall be limited to marketing or signage pointing to the SFPTMD.

(a) The city council finds as follows:

(1) The activities funded by the assessment will provide a specific benefit to assessed lodging businesses within the SFPTMD 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 SFPTMD are levied solely upon the assessed lodging business, and the lodging 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 "SFPTMD Assessment" or "Tourism Assessment" as specified in the plan.

(b) The assessments levied for the SFPTMD shall be applied toward sales and marketing programs, and other improvements and activities as set forth in the plan.

(c) Assessments levied on lodging 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 gross short term sleeping room rental revenue is the best measure of benefit. (Ord. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

§ 6.55.040. (Reserved)

Bonds shall not be issued to fund the SFPTMD. (Ord. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

The established SFPTMD includes all lodging businesses, existing and in the future, located within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County, as described in the plan. (Ord. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

The annual assessment rate is one and one-half percent of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD's boundaries. Based on the benefit received, assessments will not be collected on stays of more than 30 consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews' performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

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 SFPTMD assessment is levied as long as they are used consistent with the requirements set forth herein. (Ord. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

The city of Burlingame shall be responsible for collecting the assessments on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SFPTMD. The city shall take all reasonable efforts to collect the assessments from each lodging business. (Ord. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

The council through adoption of this chapter 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 SFPTMD as defined in Streets and Highways Code Section 36612. The city council has determined that SFP shall be the SFPTMD Owners' Association. Pursuant to the plan, SFP shall create a SFPTMD Committee tasked with determining how SFPTMD funds are spent, within the designated programs in the plan, subject to final approval by the SFP Board. The SFPTMD committee shall include lodging business owners or representatives paying the SFPTMD assessment. Passage of the ordinance codified in this chapter authorizes the city council to contract with SFP to administer the SFPTMD. (Ord. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

SFP, 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 SFPTMD. (Ord. 2018 § 1, (2023); Ord. 2025, 3/4/2024)

The SFPTMD formed pursuant to this chapter 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. 2018 § 1, (2023); Ord. 2025, 3/4/2024)