HomeMy WebLinkAboutReso 2005-046
RESOLUTION NO. 2005-046
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING FUNDS TO CONDUCT A
TRANSŒNT OCCUPANCY TAX COMPLIANCE AUDIT ON
HOTELS AND MOTELS LOCATED WITHIN THE CITY OF
CHULA VISTA
WHEREAS, the Chula Vista Police Department and Finance Department jointly
conducted two seminars aimed at educating hotel/motel owners and operators regarding
compliance with local, State and Federal laws; and
WHEREAS, in addition to an educational program, it was determined that an audit of all
hotels/motels within the City should be conducted as part of an ongoing compliance program;
and
WHEREAS, MBIA MuniServices Company (MMC) will perform a Transient Occupancy
Tax (TOT) compliance audit, which will assist the City in collecting TOT revenue and educating
hotels/motels of City ordinances; and
WHEREAS, MMC has a two-tiered approach to the TOT auditing process: I) conduct
an analysis and compliance review of each of the twenty-eight motels/hotels located in Chula
Vista and providing a detailed report identifying lodging providers who might require additional
review to determine their compliance with the City's TOT ordinance; and 2) upon identification
of those properties warranting further investigation, MMC will conduct a Lodging Provider
Audit, which may include examining records pertaining to TOT, and conducting unobtrusive
on-site collection of information on each selected property; and
WHEREAS, the total cost for the first phase of the audit process is $14,000; the total
estimated cost of the second phase of the audit may be up to an additional $ I 4,000, for a total
estimated cost of $28,000; and
WHEREAS, MMC's approach is to balance the City's need to ensure compliance while
maintaining goodwill within the lodging community with minimal interruption to compliant
businesses; and
WHEREAS, an agreement with MMC will be entered into at a later date; and
WHEREAS, the fiscal impact to the General Fund is $28,000, which may be recovered
through improved TOT revenue collection.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby appropriate $28,000 from the available balance of the General Fund for
Transient Occupancy Tax compliance auditing services on hotels and motels located within the
City of Chula Vista.
Resolution 2005-046
Page 2
Presented by
Approved as to form by
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Maria KaChadOOri~
Finance Director
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Ann Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 15th day of February, 2005, by the following vote:
AYES:
Councilmembers:
Castaneda, Davis, McCann, and Padilla
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
Rindone
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Stephen c.;!adilla, Mayor
ATTEST:
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Susan Bigelow, MMC, City erk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certifY that the foregoing
Resolution No. 2005-046 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 15th day of February, 2005.
Executed this 15th day of February, 2005.
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Susan Bigelow, MMC, City Clerk