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Chief Administrative Office and Planning and Building Department, Economic Development Division, recommending the Board approve and authorize the Chair to sign the following one-time Funding Agreements for the issuance of Transient Occupancy Tax funding during Fiscal Year 2021-22 for the reimbursement of costs associated with tourism related responses, activities, and/or equipment:
1) Agreement 5839 with Lake Valley Fire Protection District, with a term of one year and a not-to-exceed amount of $572,000;
2) Agreement 5842 with Georgetown Fire Protection District, with a term of six months and a not-to-exceed amount of $5,800; and
3) Agreement 5843 with El Dorado County Fire Protection District, with a term of six months and a not-to-exceed amount of $68,000.
FUNDING: Transient Occupancy Tax (General Fund).
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DISCUSSION / BACKGROUND
The Transient Occupancy Tax (TOT), or Hotel/Motel Occupancy Tax, is a tax imposed on the daily rental price of a room in a lodging facility, including vacation home rentals, when used by visitors staying in the unincorporated portions of El Dorado County for a period of 30 days or less. Neither the tax code nor El Dorado County Ordinances require any specific use of TOT funds; however, historically at least 51% of TOT funds have been directed toward Economic Development to offset operational expenses as well as other various tourism related expenses, including funding agreements to promote tourism and economic development.
On December 10, 2019 (File No. 19-1818, Item No. 45), the Board approved a new Budget Policy (B-16). Policy B-16, Section II, Item No. 13, state that “Transient Occupancy Tax revenue shall be directed toward the impact of tourism and economic development, with consideration for support of tourism and promotional activities within the County and for continued support for grant fund allocations to support Veteran programs within the County.”
On March 9, 2021 (File No. 21-0349, Item No. 38), the Board received a presentation regarding the proposed uses of TOT funding for the Fiscal Year 2021-22 Budget. While the majority of items that were approved following this presentation included recurring Economic Development and other County department commitments, the Board directed staff to return to the Board for consideration of other requests for TOT funding. As part of the TOT Workshop on March 30, 2021 (File No. 20-0484, Item No. 3), and in addition to other requests, the Board approved the use of TOT funds to reimburse the Lake Valley Fire Protection District, Georgetown Fire Protection District, and El Dorado County Fire Protection District for tourism-related impacts, and directed staff to negotiate funding agreements with the Fire Districts for them to receive the funding.
The purpose of the TOT funding allocated for each Fire Districts includes the following:
Lake Valley Fire Protection District - Funding to cover the costs of calls for service impacts directly related to tourism during calendar year 2020 for an amount of $222,000, and also costs to purchase a squad/quick attack fire apparatus for use responding to incidents with limited street access for an amount not-to-exceed $350,000, for a combined not-to-exceed amount of $572,000.
Georgetown Fire Protection District - Funding to cover the costs of water rescue equipment, including items such as rope, personal floatation devices, helmets, throw bags, and any other necessary items for an amount of $5,800.
El Dorado County Fire Protection District - Funding to cover the costs of calls for search and rescue directly related to tourism during calendar year 2020 for an amount of $68,000.
ALTERNATIVES
The Board may choose not to approve the proposed Funding Agreements.
PRIOR BOARD ACTION
See Discussion/Background above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office
County Counsel and Risk Management have approved the proposed Funding Agreements.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this item. Funding for these agreements, a total of $645,800, has been included in the Fiscal Year 2021/22 budget.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on two (2) original copies of each Funding Agreement.
2) The Clerk of the Board will forward one (1) fully-executed copy of each Funding Agreement to the Chief Administrative Office, Procurement and Contracts Division, for further processing.
STRATEGIC PLAN COMPONENT
Economic Development
Public Safety
CONTACT
Kyle Zimbelman, Economic and Business Relations Manager
Planning and Building Department