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Home My WebLink About00-45 - Levy Annual Assessment for FY 2000-01, Business Improvement Area Covering Certain Hotels & MotelsRESOLUTION NO. 6- 5 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2000-2001 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND PLACE OF A PUBLIC HEARING ON THE PROPOSAL. WHEREAS, the California Legislature, in adopting the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code Sections 36500 et seq.), authorized cities to levy assessments on businesses in order to promote economic revitalization and tourism, to create jobs, attract new businesses, and prevent erosion of business districts; and WHEREAS, on July 5, 1995, by Ordinance No. 95-9, the City Council adopted a Business Improvement Area, then commonly known as the Costa Mesa Tourism and Promotion Council Business Improvement Area, the purpose of which is to promote tourism to the City and to fund programs that benefit the hotel and motel businesses within the City of Costa Mesa; and WHEREAS, the City Council has voted to continue the special assessment for the Costa Mesa Conference and Visitors Bureau Business Improvement Area, previously known as the Costa Mesa Tourism and Promotion Council. Business Improvement Area, each year since its inception, including the adoption on July 6, 1999, of Resolution No. 99-47, authorizing the assessment for fiscal year 1999=2000; and WHEREAS, in January, 2000, the Costa Mesa Conference and Visitors Bureau requested, and the City Council approved, raising the assessment from one percent (1 %) to two percent (2%), which is based on the sale of overnight room stays; and WHEREAS, this Resolution of Intention will commence proceedings under the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code Section 36541) to levy the annual assessment of the Costa Mesa Conference and Visitors Bureau Business Improvement Area for the 2000-2001 fiscal year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows: Section 1. Assessment. An annual assessment for the Costa Mesa Conference and Visitors Bureau Business Improvement Area is proposed to be levied pursuant to Streets and, Highways Code Sections 36500 et seq. The proposed boundaries of the territory are the seven motels and hotels listed in Exhibit A, attached hereto and incorporated herein by this reference. The proposed amount of the annual assessment is two percent (2%), which is based on the sale of overnight room stays. New hotel and motel businesses commenced after the effective date of the ordinance levying the assessment will be exempt from the levy of assessment, pursuant to Streets and Highways Code Section 36531 and Section 36535. Section 2. Annual Report. An annual report on the Business Improvement Area has been prepared by the Board of the Costa Mesa Conference and Visitors Bureau as required by Streets and Highways Code Sections 36533 and 36534, and said report is attached hereto as Exhibit B and incorporated herein by this reference. Section 3. Types of Activities to be Funded. The proposed type or types of activities to be funded through the annual levy of assessments on businesses within the Business Improvement Area are specified in Exhibit B. Section 4. Method and Basis of Levy. The proposed method and basis of levying the assessment to allow each business owner to estimate the amount of the assessment to be levied against his or her business is set forth in Exhibit B. Section 5. Time and Place of Public Hearing. The time and place of the public hearing on the Business Improvement Area and the annual levy of assessments shall be at 6:30 p.m., July. 3, 2000, at the Costa Mesa City Hall, City Council Chambers, 77 Fair Drive, Costa Mesa, California. At the public hearing set forth above, the testimony of all interested persons for or against the annual levy of assessment for the Business Improvement Area, the extent of the area, or the furnishing of specific types of improvements or activities will be heard by the City Council. Section 6. Protests. The following rules shall apply to all protests: (a) A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. (b) Every written protest shall be filed with the City Clerk's office, Costa Mesa City Hall, Room 101, 77 Fair Drive, Post Office Box 1200, Costa Mesa, CA 92628-1200, on or before the time fixed for the public hearing as set forth above. (c) The City Council may waive any irregularity in the form or content of any written protest and at the public hearing, may correct minor defects in the proceedings. (d) A written protest may be withdrawn in writing at any time before the conclusion of the public hearing set forth above. (e) Each written protest shall contain a description of the business in which the person subscribing the protest is interested, sufficient to identify the business, and if a person subscribing is not shown on the official records of the City of Costa Mesa as the owner of the business, thle protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest that does not comply with this paragraph shall not be counted in determining a majority protest. (f) If written protests are received from the owners of businesses in the proposed Business Improvement Area which will pay fifty percent (50%) or more of the assessments to be levied and protests are not withdrawn so as to reduce the protests to less than the fifth percent (50%), no further proceedings on the proposal to modify the Business Improvement Area assessment, as specified by this Resolution of Intention, shall be taken by the City Council for a period of one (1) year from the date of the filing of a majority protest. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Costa Mesa, California, does hereby adopt the annual report by the Costa Mesa Conference and Visitors Bureau on the Business Improvement Area, and this Resolution of as set forth herein, and Exhibits A and B attached hereto and incorporated by this reference. PASSED AND ADOPTED this 5th day of June, 2000. ATTEST: T ` Deputy City Cl k of the City of Costa Mesa STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) Gt-%, I L Mayor of the Cit of Costa Mesa APPROVED AS TO FORM CITY ATTORNEY. . I, MARY T. ELLIOTT, Deputy City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Resolution No. DO _ 4S' was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on the 5th day of June, 2000, by the following roll call vote: AYES: 016NAHRIJ� Coc),4n), :�rZ56,J� �arn�Rs� 6�i tLo� NOES: N o N, ABSENT: A)iv Ne IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 6th day of June, 2000. T. Deputy Citylerk and ex -officio Clerk of the City Cou cil of the City of Costa Mesa L:U:t Exhibit "B" consists of the annual report submitted by the Costa Mesa Convention & Visitor Bureau (also referenced in the staff report as Attachment "B"). CostaMesa The Best Of Southern California. May 25, 2000 City of Costa Mesa 77 Fair Drive Costa Mesa, California 92627-6520 Dear Council Members: In accordance with the provisions of the Business Improvement Area (BIA) we submit for your approval the Annual Report of the. Costa Mesa Conference & Visitor Bureau (CMCVB) previously known as the Costa Mesa Tourism & Promotion Council, now in its fifth year of operation. The Costa Mesa CVB was established to increase awareness of Costa Mesa as a visitor destination with the goal of increasing awareness, hotel occupancy, travel spending, tax revenues and further contributing to the growth of the local economy. This past year with the help of PKF, a consultant specializing in the hospitality industry, the Tourism Council analyzed previous goals and objectives and began the transformation from a tourism council into a Conference and Visitor Bureau. The Bureau "team" includes the seven hotel General Managers, two paid individuals managing the day to day operations and the creation of marketing materials, Pittman & Associates implementing public relations and advertising placement and. Lamas Accounting managing the financial details. A sub -group includes the hotel Marketing Directors who submit marketing ideas to the CVB Board of Directors for inclusion in the marketing and media campaigns. The seven General Managers in conjunction with Mayor Gary Monahan and Allan Roeder, City Manager have met regularly, without compensation, to further the image and economic development of Costa Mesa as a destination. The required contents of the Annual Report are detailed in Section 36533 of the Streets and Highway code. The format is as follows: • Any proposed changes in the boundaries of the Business Improvement Area or in any benefit zones within the area. The Advisory Board recommends that the entire city continue to be included in the benefit zone. Further, the Advisory Board recommends that.the number of properties included in the boundaries remain the same. If additional properties Page 1 of 8 +0,.,ft.Wd"A The BIA benefit zone encompasses the entire City of Costa Mesa boundaries. It is anticipated that the entire City, including businesses and residents, will benefit from increased revenues generated by the activities financed by the BIA. The following businesses will be included in the business improvement area that is established pursuant to Streets & Highways Code § 36500 et seq., the businesses commonly known as: 1. Countryside Inn & Suites Property Address: 325 and 345 Bristol Street, Costa Mesa Business Owner: Bruce Ayres 1817 Westminster Avenue Newport Beach, Ca. 92660 Donald Ayres, Jr. 506 Vio Lido Nord Newport Beach, CA 92658 Property Owner: Homes by Ayres 355 Bristol Street, Suite A Costa Mesa, CA 92626 2. Doubletree Hotel Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Promus Hotel Corporation 755 Crossover Lane Memphis, Tennessee 38117 3. Holiday Inn Property Address: Business Owner: Property Owner: 4. Marriott Suites 3131 Bristol Street, Costa Mesa Hanford Hotels, L.L.C. Abbot. B. Lipsky c/o Hanford Hotels, L.L.C. 4 Corporate Plaza, Suite 102 Newport Beach, CA 92660 Property Address: 500 Anton Boulevard, Costa Mesa Business Owner: J.W. Marriott, Jr. Property Owner: Marriott Suites, Ltd. N 1 Marriott Way Washington, D.C. 02258 Residence Inn by Marriott Property Address: 881 Baker Street, Costa Mesa Business Owner: Residence Inn by Marriott 1 Marriott Way Washington, D.C. 02258 Property Owner: Marriott Residence Inn Ltd., Partnership 10400 Fernwood Road Bethesda, Maryland 20817 Westin South Coast Plaza Hotel Property Address: 668 Anton Boulevard, Costa Mesa Business Owner: South Coast Westin Property Owner: Secon Properties c/o South Coast Plaza Hotel 668 Anton Boulevard Costa Mesa, CA 92626 7. Wyndham Garden Hotel Property Address: 3350 Avenue of the Arts, Costa Mesa Business Owner: Amgreen Heritage Hotel Partners Ltd. 31200 Via Colimas, Suite 202 Westlake Village, CA 91362 wish to participate, they are invited to attend meetings the year before assessment, be in good standing with the City of Costa Mesa and meet certain AAA quality standards. • The improvements and activities to be provided for the Fiscal Year. The Advisory Board recommends that the 2% assessment levy on the sale of hotel overnight guest room stays continue to be used to fund similar tourism activities for the hotels. During the fifth year, the Costa Mesa Conference & Visitor Bureau focused on generating business for the hotels while increasing awareness of Costa Mesa as a leisure travel destination. The Bureau has accomplished or is in progress of implementing the following projects and programs: Marketing Materials Created a marketing "package" that includes a destination brochure, rack card, dining brochure, and 2000 activities/events brochure. These were distributed to travel writers, hotels, the City of Costa Mesa, inquiries and meetings/conventions booked in the hotels. Calendar of Events A quarterly calendar providing comprehensive information on community activities, arts, cultural events, and hotel promotions. The calendar was sent to more than 200 travel editors across the country, travel agents, to inquiries generated by advertising, CVB hotels, Costa Mesa Chamber of Commerce and to other local venues as requested. Web Site (www.costamesa-ca.com) We continue to explore opportunities for additional hyper links to other related sites. The web site address is included on all advertising and marketing materials. In 1999 the website recorded 4000 sessions with more sessions in spring and summer correlating with our advertising campaign. The site has been modified to provide additional emphasis on special activities and promotions, such as "Beat the Heat" and "Shop Like the Dickens" in addition to the quarterly Calendar of Events. Logo The logo and tag line ("Costa Mesa. The Best Of Southern California.") have been incorporated into marketing brochures, advertisements, promotional items and other collateral materials. Telephone/Business Reply Inquiries The 800# Hotline -Answer Network received more than 2025 telephone inquiries in 1999 as a result of advertisements and other promotions. Answer Network responds to all Page 2 of 8 telephone inquiries followed by sending a cover letter, brochure and calendar of events, in addition to serving as a fulfillment house for reader service cards generated by magazine and newspaper advertising. Business Reply Inquiries (more than 10,000 inquires domestically and internationally) from advertising in Sunset, Travel & Leisure, Westways, Meetings in the West, Los Times Magazine, Los Angeles Times Vacation Lodging, Conde Nast and California Travel publications are input into a database that enables the hotels and the Bureau to develop and implement future direct mail promotions to targeted audiences. Advertising During Fiscal Year 1999/2000 the Bureau implemented an aggressive advertising campaign with more than 20 million exposures targeting markets (Los Angeles, Phoenix/Tucson, Palm Springs, Las Vegas and San Francisco) that could potentially generate weekend, summer and holiday room business. The campaign positioned Costa Mesa as "The Best Of Southern California," reinforcing Costa Mesa as a highly desirable location offering a variety of amenities. The advertising campaign used one color and four color ads with the tagline "Between the Tides and the Rides," further reinforced Costa Mesa's proximity to Southern California's pristine beaches and the central location to major attractions such as Disneyland, Knott's Berry Farm and Legoland. Advertising continues to provide measurable results through telephone calls, business reply cards, and business booked at the hotels. In partnership with the Orange County Performing Arts Center and South Coast Repertory, a 90 -second movie trailer was condensed into a 30 -second spot that will be used for cable television advertising in Southern California and Arizona markets. Consumer/General Magazines America West Airlines In-flight Magazine California Visitor Guide Conde Nast Traveler Sunset Travel & Leisure Consumer/City Magazines Los Angeles Magazine Phoenix Magazine Western Association News Page 3 of 8 Corporate/Travel Magazines Meetings in the West Business Facilities Orange County Business Journal Newspapers Los Angeles Times Travel Section North County Times San Francisco Chronicle Phoenix Republic Gazette Palm Springs Desert Sun Fresno Bee Bakersfield News San Bernardino News Tucson Star Citizen Other Media California Visitors Guide "Where" Orange County Map South Coast Metro PocketBook Anaheim/Orange County Visitors Guide California Holidays (United Kingdom) World Travel Guide (Europe) Museum Los Angles Meeting Planners International Directory Public Relations Press releases and press kits highlighting Costa Mesa as a leisure travel destination have been generated on a regular basis. Stories on Costa Mesa have been printed in several magazines and newspapers. "Beat the Heat Promotion" (May -September) The "Beat the Heat" summer campaign was targeted to potential travelers from Phoenix, Tucson, Palm Springs, Las Vegas and Los Angeles via airline and travel magazines as well as Sunday newspaper travel sections. "Shop Like the Dickens" Holiday Promotion This traditional holiday promotion was designed to encourage overnight stays and increase holiday shopping. The promotion included a complimentary, holiday gift filled with shopping and dinning offers and was advertised in Sunset Magazine, Los Angeles Magazine, Los Angeles Times, Palm Springs Desert Sun and the San Francisco Chronicle. Page 4 of 8 UPG Sports The Costa Mesa CVB is participating as a sponsor (two year commitment) with UPG Sports Tournaments held at venues in Irvine and Costa Mesa from May through July 1999. All seven CVB hotels offer special UPG rates and room blocks over this time period. Direct Mail Program A direct mail program has been implemented during the summer months utilizing the four-color "Between the Tide and the Rides" ad and reproduced as a postcard. Total quantity 20,000. Mailings of 2,500-5,000 were sent during the summer with a variety of special summer and "Beat the Heat" hotel rates. Trade Shows Costa Mesa CVB attended California Travel Mart in San Jose and POW WOW in Dallas meeting with national and international tour operators sharing a booth with South Coast Plaza. Partnerships Partnerships have been strengthened with Orange County Tourism Council and Orange County Tourism Consortium in addition to working cooperati•" --ly with Newport Beach, Huntington Beach, Laguna Beach, and Anaheim Convention & Visitor Bureaus. In September as a group we supported Coastal Clean Up Day by contributing dollars and personnel in the clean up effort. Marketing Committee The Marketing Committee (the sales and marketing directors) meets monthly in addition to representatives from the Orange County Performing Arts Center, South Coast Repertory, South Coast Plaza, Costa Mesa Fair & Exposition Center and Metro Pointe. This committee oversees the development of short and long-term strategic marketing and advertising programs and work together on special promotions, events and packages. • An Estimate of the cost of providing the activities for the fiscal year. The estimated amount of the assessment to be levied against the businesses for the fiscal year. The amount of surplus or deficit or revenue carried from the previous fiscal year. Page 5 of 8 The Advisory Board has prepared the following Financial Summary detailing the actual revenues and expenses for 1999/00 and proposed fiscal year 2000/2001. Revenues Projected YR5 Actual YRS Projected YR6 Revenues for 1999/2000 were projected to remain the same as the previous year. Revenues for 2000/2001 are projected to remain the same until January 2001 when the Anaheim Convention Center has completed their expansion and hosts larger conventions that displace business from the Anaheim area to Costa Mesa and surrounding areas. (Anaheim currently has 580 conventions and trade shows booked for future years brining in an estimated 3,498,000attendees.) Budget Expense Projections for fiscal 2000/2001 (See attached Marketing Plan for details) Page 6 of 8 1999/2000 1999/20000 2000/2001 Beginning Balance $ 112,963.00 $ 104,628.00 July $ 36, 530.00 $ 45, 913.00 $ 91,800-00 August $ 52,539.00 $ 44,831.00 $ 89,600.00 September $ 32,721.00 $ 40,896.00 $ 81,700.00 October $ 49,263.00 $ 43,001.00 $ 86,000.00 November $ 47,637.00 $ 44,682.00. $ 89,300.00 December $ 34,500.00 $ 35,100.00 $ 64,200.00 January $ 39,832.00 $ 39,653.00 $ 79,400.00 February $ 36,832.00 $ 43,010.00 $ 73,600.00 March $ 46,664.00 $101,252.00 $ 99,200.00 April $ 35,000.00 $ 35,000.00 $ 70,000.00 May $ 42,000.00 $ 42,000.00 $ 84,000.00 June $ 37,000.00 $ 37,000.00 $ 74,000.00 Total Revenue (Revenues do not $ 605,472.00 $ 656,966.00 $ 982,800.00 include interest.) Revenues for 1999/2000 were projected to remain the same as the previous year. Revenues for 2000/2001 are projected to remain the same until January 2001 when the Anaheim Convention Center has completed their expansion and hosts larger conventions that displace business from the Anaheim area to Costa Mesa and surrounding areas. (Anaheim currently has 580 conventions and trade shows booked for future years brining in an estimated 3,498,000attendees.) Budget Expense Projections for fiscal 2000/2001 (See attached Marketing Plan for details) Page 6 of 8 Expenses Projected YR6 Advertising Campaign $412,837.00 Media Relations & Fam Tours $44,100.00 Brochures/Promotional items $95,300.00 Trade Shows $16,800.00 Administration/General $251,867.00 Special Promotions $125,896.00 Contingency Fund $36,000.00 Total Expenses $982,800.00 Advertising Campaign The advertising campaign continues to aggressively focus on generating awareness thus driving room business for the hotels on weekends, during the summer ("Beat the Heat" campaign) and during holidays ("Shop Like The Dickens" campaign). The campaign reinforces Costa Mesa as a leisure travel destination as well as a corporate meeting destination with easy accessibility that is centrally located to the coast and major attractions. This expense includes design, production, buying space in print publications and electronic media, and other expenses associated with the advertising campaign. Estimated Expense $412,837 • Media Relations & Familiarization Trips We will continue to develop awareness and reinforce the Costa Mesa destination through press releases to regional and national publications, familiarization trips for travel press, meeting planners and group tour operators. Estimated Expense $44,100 • Marketing Materials Brochures, rack cards, calendar of events, CD Rom, Internet site and other marketing materials will reflect "Costa Mesa. The Best Of Southern California" and distributed to inquiries, travel agents, tour operators, conference attendees, trade shows and meeting planners. Estimated Expense $81,800 • Promotional Items Page 7 of 8 Paper Cubes, CD Rom leather holders, Keys to the City, Polo Shirts and other promotional items with the logo are available to further promote the Costa Mesa destination. Estimated Expense $13,500 • Trade Shows The Costa Mesa CVB will attend several trade shows focusing on international tour operators, corporate meeting planners and travel managers. Estimated Expense $16,800 • Administrative & General Expenses Answer Network will continue to answer the 800# and act as a distribution facility. This category includes employee expenses, accounting fees, postage, insurance, consultant, city collection fee and administrative expenses. Estimated Expenses $251,867 Special Promotions/Sponsorships Special promotions include "A Gift from Us -to You," expens.;s associated with attracting UPG Sports Groups, Coastal Clean Up, Orange County Tourism Service Awards and Jazz Festival in addition to dollars allocated for each hotel's niche marketing needs. Estimated Expenses $125,896 • Contingency Fund Beginning in March 2000, $3000 per month will be allocated for the Contingency Fund to provide funds for any unexpected expenses or a decrease in revenues. Estimated Expense $36,000 The Advisory Board supports and enthusiastically works as a team toward the success of the Costa Mesa Conference & Visitor Bureau. Advisory members Gary Monahan and Allan Roeder continue to contribute their ideas and perspectives to the overall marketing efforts. We appreciate the opportunity provided by the Costa Mesa City Council to continue the support of the Costa Mesa CVB. R e Ily, v Joe Bann, General Manager, Doubletree Hotel President, Costa Mesa Conference & Visitor Bureau Page 8 of 8