Speaker numbers apply only to this recording.
Note: The agenda and transcript indicate the meeting occurred on September 22, 2026, but the provided meeting date is September 29, 2026. This summary uses the latter date as instructed.
The Half Moon Bay City Council held a special meeting to hear an appeal by Marriott International, Inc. (operator of the Ritz-Carlton Half Moon Bay) contesting the Tax Administrator's final determination of delinquent Transient Occupancy Taxes (TOT), penalties, and interest totaling $2,129,685. The appeal challenged charges for group cancellation fees, resort fees, miscellaneous fees, all penalties, and additional interest accrued due to a delay in the city’s response. After staff presentations and appellant testimony, the council voted 5-0 to deny the appeal except for waiving $190,872 in additional interest, upholding the original determination of $2,164,112.
Staff and HDL representatives presented the audit findings covering calendar years 2021–2024, identifying four categories: group cancellation fees ($737,909 TOT due), miscellaneous fees ($69,000), food and beverage packages (conceded by appellant), and resort fees. They argued that the city’s broad definition of “rent” (all receipts without deduction) covers these charges, and that a prior 2015–2017 audit had already flagged resort fees. Staff recommended upholding the full determination except for $190,872 in additional interest accrued during the city’s delayed response (November 2025 to August 2026).
Councilmembers questioned whether the ordinance clearly covers cancellation fees and resort fees, noting the broad language intentionally covers various fees. HDL confirmed that 99% of their client jurisdictions use similar broad definitions, and that group cancellation fees are commonly considered taxable. The appellant’s reference to Los Angeles’ Proposition TC was not deemed directly applicable because it was a distinct ordinance change.
The September 22nd, 2026, City Council special meeting. Since this is a special meeting, we will not have public forum this evening. We will only be discussing the agendized item. As a reminder, we have Spanish interpretation services available in person and via Zoom. And uh staff provides this information in Spanish for the audience. All right. Nicholas, would you like to come forward? Sure, thank you. Thank you, Madam Mayor. Honorable City Council members, uh, Mr. Chiriser, Mrs. Bazano, Ms. Rodriguez, all city staff and members of the public, members of public. Seleccion interpretacion, luego selecciona el idioma espanhol, y por ultimo a click and done or listo. Muchas gracias. Thank you. Gracias. So unfortunately, um, Vice Mayor Penrose is not able to attend in person tonight due to illness. The Vice Mayor has notified us that she will be attending remotely for just cause due to this issue. City Attorney Denise Bizzano has confirmed that the Vice Mayor may do so under the Just Cause provisions of the Brown Act under AB 2302, provided a quorum of the council attends in person, and we do have that, and the vice mayor attends via audio and video technology. And during this meeting, uh Vice Mayor Penrose, you will need to leave your video on. There is no one in the room with me. I can. I would now like to advise the council that any votes taken during the teleconference portion of this meeting must be taken by roll call. And could I please have a roll call for the meeting now? Councilmember Brownstone. Here. Councilmember Johnson. Here. Councilmember Nagingast. Vice Mayor Penrose. Here. Mayor Reddick. Here. We have a quorum. Okay. So the next item on the agenda is the appeal of tax administrators determination of delinquent transient occupancy taxes. One Miramani's Point Road, Half Moon Bay, California Marriott International, Inc. So at this time I'm going to ask if any council members have had any ex parte communications with uh any party involved in this appeal. And I'll start with uh Councilmember Neggengast.