Loading...
HomeMy WebLinkAbout13 - PH-4 - BIA Authorization - 6/7/2011CITY COUNCIL AGENDA REPORT MEETING DATE: June 7, 2011 ITEM NUMBER: SUBJECT: BUSINESS IMPROVEMENT AREA (BIA) REAUTHORIZATION DATE: JUNE 1, 2011 FROM: OFFICE OF THE CEO PRESENTATION DAN JOYCE, INTERIM PUBLIC AFFAIRS MANAGER BY: FOR FURTHER INFORMATION CONTACT: DAN JOYCE (714) 754-5667 dioyceCa_ci.costa-mesa.ca.us RECOMMENDATION: It is recommended that the City Council: 1. Hold the requisite Public Hearing; 2. Adopt the attached Resolution to levy an annual assessment for Fiscal Year 2011- 2012 for the Business Improvement Area (BIA) for hotels and motels located within the City of Costa Mesa; and 3. Authorize staff draft a Professional Service Agreement for the 2011-2012 fiscal year that will implement the conditions that are outlined in Resolution 11-19 and the bylaws between the Costa Mesa Conference and Visitor Bureau (CMCVB) and the City. BACKGROUND: As directed by the City Council, staff has proceeded with the process to re -authorize the annual assessment of the BIA for Fiscal Year 2011-2012. This assessment is imposed as a "bed tax" against overnight stays at the ten hotels that participate as members in the Costa Mesa Conference and Visitor Bureau (CMCVB). The CMCVB Board is comprised of the managers of the member hotels, a City Council Member and the CEO of the City of Costa Mesa or his designee. Authorization of the BIA will impose a three percent (3%) assessment on the cost of each night's lodging at the member hotels. The resulting levy will be used for the continuing operation of the CMCVB. At the meeting of May 17, 2011, the City Council approved and filed the Annual Report for the BIA for Fiscal Year 2010-2011, and adopted Resolution 11-19, a Resolution of Intention that included approval of the BIA budget and the setting of a Public Hearing for June 07, 2011 (see Attachment 1). The adoption of a second Resolution levying the assessment is the final step in the re -authorization of the BIA assessment. ANALYSIS: The authority to develop a Business Improvement Area is detailed in the Streets and Highways Code, Section 36500. This State law enables Costa Mesa to impose an assessment fee on businesses within an area designated by the City. All of Costa Mesa has been designated as the BIA benefit zone. Currently, the number of properties included in the BIA assessment levy is limited to the ten hotels identified in both Resolution 11-19 and the second Resolution levying the assessment to be adopted at this meeting (see Attachment 2). As a function of the renewal process all ten affected property owners have been legally noticed of the assessment, and of the public hearing that is required to provide an opportunity to "protest" the establishment of the area, the extent of the area, or the types of improvements within the area. Staff has also noticed all the hotels and motels in the City not included in the BIA to allow them the opportunity to be included as well. The City Council makes the ultimate decision as to the size of, and the properties to be included in the BIA. Once the second Resolution is adopted, the boundaries of the BIA cannot be altered during the current fiscal year. Mayer, Hoffman, McCann P.C. has completed the annual audit of the CMCVB for the fiscal year ending on June 30, 2010 as required by the bylaws in effect between the City and the CMCVB. This is included in the Annual Report submitted on May 17, 2011. ALTERNATIVES CONSIDERED: Refrain from adopting the Resolution levying the assessment (Attachment 2) FISCAL REVIEW: The recently completed audit shows the Bureau's cash equity to be $333,373 as of June 30, 2010. The CMCVB has estimated that their expenditures for the 2010-2011 fiscal year will amount to approximately $878,240.56 leaving $406,733 in unexpended funds. The unexpected funds are projects to increase the equity to $740,106 for the 2011-2012 fiscal year. Examples of CMCVB expenditures include: an advertising campaign; media relations, brochures/promotional items; administration; special promotions; and hotel niche marketing. According to the 2010/11 Annual Report, the CMCVB has a total of $1,161,974.43 in BIA revenues through April and is estimated to generate additional revenue for the months of May and June. The City receives one percent (1 %) of the BIA assessment as partial reimbursement for its collection and administrative costs. The one percent (11%) allocated to the City for reimbursement is estimated at $14,330 for the 2011-2012 fiscal year. This fee will sufficiently cover the costs incurred by the City in assisting the Bureau. In addition, the City of Costa Mesa and the Bureau have formed a "Strategic Alliance" (Attachment 3) for the upcoming year. The Bureau will increase their financial support to provide funding for activities which are mutually beneficial to both organizations and E to provide marketing support to assist with branding the City in an effort to increase room nights for out-of-town guests seeking hotel accommodations. Funds include (Attachment 4) $40,000 Website re -design. The Bureau has requested creative approval for the layout and design for their specific web page on the City's newly created website. $40,000 Sponsorship and support for local community events which promote community goodwill and may increase overnight stays for out-of-town guest seeking hotel accommodations. $4,000 To market and promote of the Costa Mesa Tennis Center and the Costa Mesa Country Club. $50,000 Reimbursement for staff time and expenses to attract more special events into the city. The Board will consider and vote on each request made prior to receiving any charges for staff time as it relates to special events that can be marketed to out-of-town guests. $20,000 For promotional items and marketing materials which are mutually beneficial to the City and the CMCVB. This budget item was requested by City Council to be placed back into the budget. $10,000 To financial assist the Sister City Student Exchange program. This budget item was requested by City Council to be placed back into the budget. Staff will work with the CMCVB on a second Sister City for the 2012-2013 fiscal year. $5,000 To fund the training and uniforms for a civilian Special Event Squad. This squad will be used for security and traffic control for future upcoming special events. LEGAL REVIEW: The Parking and Business Improvement Area Law of 1989 requires the adoption of the attached second Resolution reviewed and approved by the City Attorney's Office. CONCLUSION: The adoption of the attached Resolution is the final step required to authorize the BIA assessment for the 2011-2012 Fiscal Year. The BIA assessment and CMCVB annual report must be reviewed and approved each fiscal year by the City Council in order to continue the CMCVB's operations. 3 THOMAS R. HATCH Chief Executive Officer COLLEEN O'DONOGHUE Assistant Finance Director DANJOYCE Interim Public Affairs Manager TOM DUARTE City Attorney ATTACHMENTS: 1 Resolution of Intention 11-19 2 Resolution Levying Assessment 11- 3 Strategic Alliance Report 4 Strategic Alliance Budget n ATTACHMENT 1 RESOLUTION NO. 11-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2011-2012 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON PROPOSAL. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the California Legislature in adopting the Parking and Business Improvement Area Law of 1989 (Streets & Highways Code § 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, commonly known as the Costa Mesa Tourism & Promotion Business Improvement Area, the purpose of which is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel businesses within the City of Costa Mesa; and WHEREAS, the City Council appointed the general managers of the ten hotels subject to the assessment area, to serve as the advisory board as required by California Streets and Highways Code Section 36530; and WHEREAS, said advisory board is known as the Costa Mesa Conference and Visitor Bureau (the "CMCVB"); and WHEREAS, the City Council has voted to continue the special assessment for the BIA each year since its inception, and it has been levied upon the ten hotel and motel businesses listed on Exhibit A, attached hereto and incorporated herein by this reference; and WHEREAS, in January 2000, the City Council approved an increase in the assessment, raising the assessment from one percent (I%) to two percent (2%). The two percent (2%) assessment is based on the sale of overnight room stays; and WHEREAS, in November 2010, the City Council approved an increase in the assessment, raising the assessment from two percent (2%) to three percent (3%). .The three ATTACHMENT 1 percent (3%) assessment 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 & Highways Code § 36541) to levy the annual assessment of the Costa Mesa Tourism & Promotion Council Business Improvement Area for the 2010-2011 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 Tourism & Promotion Council Business Improvement Area is proposed to be levied pursuant to Streets & Highways Code § 36500 et seq. The proposed boundaries of the territory are the ten motels and hotels listed in Exhibit A, attached hereto and incorporated herein by this reference. The proposed amount of the annual assessment is three percent (3%). The three percent (3%) assessment 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 & Highways Code § 36531 and § 36535. Section 2. Annual Report. An annual report on the Business Improvement Area has been prepared by the Costa Mesa Conference & Visitor Bureau, acting as the advisory board as required by Streets & Highways Code § 36533 and § 36534. Said report is on file in the City Clerk's Office. Section 3. Types of Activities To Be Funded. The proposed type or types of activities to be funded by and through the annual levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council Business Improvement Area are specified in the referenced annual report. Section 4. Reporting and Remitting to the City of Costa Mesa Finance Department. Each hotel/motel owner shall separate the Business Improvement Assessment from the Transient Occupancy Tax on guest billing statements. The specific term "Business Improvement Assessment" shall be included on the billing to identify the assessment amount. The hotel/motel owner shall collect and subsequently remit the assessment to the City Finance Department at the same time and manner as the Transient Occupancy Tax. A ATTACHMENT 1 ten percent (10%) penalty and half percent (.5%) interest will be assessed on late remittances. Section 5. 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 the Costa Mesa Conference & Visitor Bureau's annual report relative to the Business Improvement Area. Section 6. 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 7:00 p.m., June 7, 2011, 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 7. 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, California 92626-1200, at 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) 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 fifty percent (50%), no further proceedings on the proposal to continue the business improvement area assessment, as specified by this resolution of intention, shall be taken by the City Council for a period of one year from the date of the filing of a majority protest. BE IT FURTHER RESOLVED THAT the City Council of the City of Costa Mesa, ATTACHMENT 1 California, does hereby adopt the annual report by the Costa Mesa Conference & Visitor Bureau acting as the advisory board on the business improvement area (referenced report on file in the City Clerk's Office), and this Resolution of Intention as set forth herein, and Exhibit "A" which is attached hereto and incorporated by this reference. PASSED AND ADOPTED this 17th day of May, 2011. ATTEST: C::� 4� 14� JLKe Folcik, City Clerk Gary Monah n, Mayor APPROVED AS TO FORM: Tom Dua , C ty Attorney ATTACHMENT 1 EXHIBIT A The Business Improvement Area ("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 assessment. The following businesses will be included in the BIA that is established pursuant to Streets & Highways Code § 36500 et seq., the businesses commonly known as: Ayres Country 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 92626 Property Owner: Homes by Ayres 355 Bristol Street, Suite A Costa Mesa, CA 92626 Best Western Newaort Mesa Inn Property Address: 2642 Newport Boulevard, Costa Mesa Business Owner: Somes Hsuen Shang -Pu Lee 2642 Newport Boulevard, Costa Mesa, CA 92627 Hilton Orange County/Costa Mesa Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Ashford Hospitality Trust 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Hotel Hanford Property Address: 3131 Bristol Street, Costa Mesa Business Owner: Hanford Hotels Property Owner: Hanford Hotels 4 Corporate Drive, Suite 102 Newport Beach, CA 92660 Holiday Inn Express Hotel and Suites, Costa Mesa Property Address: 2070 Newport Blvd., Costa Mesa Business Owner: Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Costa Mesa Marriott Property Address: 500 Anton Boulevard, Costa Mesa Business Owner: J.W. Marriott, Jr. Property Owner: Host Hotels & Resorts 6903 Rockledge Dr., Suite 1500 Bethesda, JD 20817 Property Address: 1680 Superior Ave., Costa Mesa Business Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 ATTACHMENT 1 2 Residence Inn, Costa Mesa Property Address: 881 Baker Street, Costa Mesa Business Owner: Residence Inn by Marriott 1 Marriott Way Washington, D.C. 02258 Property Owner: ING Clarion Partners 2650 Cedar Springs Road, Ste 850 Dallas, TX 75201-1491 The Westin South Coast Plaza Hotel Property Address: 686 Anton Boulevard, Costa Mesa Business Owner: Host Hotels & Resorts 6903 Rockledge Dr., Suite 1500 Bethesda, JD 20817 Property Owner: CJ Segerstrom & Sons c/o South Coast Plaza 686 Anton Boulevard Costa Mesa, CA 92626 Wyndham Hotel Property Address: 3350 Avenue of the Arts, Costa Mesa Business Owner: Rosanna Inc. 3350 Avenue of the Arts, Costa Mesa Property Owner: Rosanna Inc. 3350 Avenue of the Arts, Costa Mesa ATTACHMENT 1 3 ATTACHMENT 1 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that foregoing Resolution No. 11-19 was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 17th day of May, 2011, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: MONAHAN, RIGHEIMER, LEECE, MENSINGER NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: BEVER IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 18th day of May, 2011. (SEAL) 0 QaA2 —4��elo JUL FOLCIK, CITY CLERK ATTACHMENT 2 RESOLUTION NO 11. -xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2011-2012 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON PROPOSAL. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the California Legislature in adopting the Parking and Business Improvement Area Law of 1989 (Streets & Highways Code § 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, commonly known as the Costa Mesa Tourism & Promotion Business Improvement Area, the purpose of which is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel businesses within the City of Costa Mesa; and WHEREAS, the City Council appointed the general managers of the ten hotels subject to the assessment area, to serve as the advisory board as required by California Streets and Highways Code Section 36530; and WHEREAS, said advisory board is known as the Costa Mesa Conference and Visitor Bureau (the "CMCVB"); and WHEREAS, the City Council has voted to continue the special assessment for the BIA each year since its inception, and it has been levied upon the ten hotel and motel businesses listed on Exhibit A, attached hereto and incorporated herein by this reference; and WHEREAS, in January 2000, the City Council approved an increase in the assessment, raising the assessment from one percent (1%) to two percent (2%). The two percent (2%) assessment is based on the sale of overnight room stays; and WHEREAS, in November 2010, the City Council approved an increase in the assessment, raising the assessment from two percent (2%) to three percent (3%). The three percent (3%) assessment is based on the sale of overnight room stays; and WHEREAS, on May 17, 2011, the City Council adopted Resolution No. 11-xx, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2011-2012 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND PLACE OF A PUBLIC HEARING ON PROPOSAL"; and WHEREAS, at its meeting on May 17, 2011, the City Council of the City of Costa Mesa approved the 2010-2011 Annual Report of the Costa Mesa Conference & Visitor Bureau submitted on May 17, 2011, and such report, which is on file in the City Clerk's Office and incorporated herein by this reference, has been considered at the public hearing before this Resolution was adopted; and WHEREAS, on June 07, 2011, in the Council Chambers of City Hall, 77 Fair Drive, Costa Mesa, California, a public hearing was held concerning the annual assessment for the business improvement area and no protests of the proposed assessment were filed or presented. WHEREAS, this Resolution of Intention will commence proceedings under the Parking and Business Improvement Area Law of 1989 (Streets & Highways Code § 36541) to levy the annual assessment of the Costa Mesa Tourism & Promotion Council Business Improvement Area for the 2010-2011 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 Tourism & Promotion Council Business Improvement Area is proposed to be levied pursuant to Streets & Highways Code § 36500 et seq. The proposed boundaries of the territory are the ten motels and hotels listed in Exhibit A, attached hereto and incorporated herein by this reference. The proposed amount of the annual assessment is three percent (3%). The three percent (3%) assessment 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 & Highways Code § 36531 and § 36535. Section 2. Annual Report. An annual report on the Business Improvement Area has been prepared by the Costa Mesa Conference & Visitor Bureau, acting as the advisory board as required by Streets & Highways Code § 36533 and § 36534. Said report is on file in the City Clerk's Office. Section 3. Types of Activities To Be Funded. The proposed type or types of activities to be funded by and through the annual levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council Business Improvement Area are specified in the referenced annual report. Section 4. Reporting and Remitting to the City of Costa Mesa Finance Department. Each hotel/motel owner shall separate the Business Improvement Assessment from the Transient Occupancy Tax on guest billing statements. The specific term "Business Improvement Assessment" shall be included on the billing to identify the assessment amount. The hotel/motel owner shall collect and subsequently remit the assessment to the City Finance Department at the same time and manner as the Transient Occupancy Tax. A ten percent (10%) penalty and half percent (.5%) interest will be assessed on late remittances. Section 5. 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 the Costa Mesa Conference & Visitor Bureau's annual report relative to the Business Improvement Area. Section 6. 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 7:00 p.m., June 7, 2011, 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 7. 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, California 92626-1200, at 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) 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 fifty percent (50%), no further proceedings on the proposal to continue the business improvement area assessment, as specified by this resolution of intention, shall be taken by the City Council for a period of one year from the date of the filing of a majority protest. BE IT FURTHER RESOLVED THAT the City Council of the City of Costa Mesa, California, does hereby adopt the annual report by the Costa Mesa Conference & Visitor Bureau acting as the advisory board on the business improvement area (referenced report on file in the City Clerk's Office), and this Resolution of Intention as set forth herein, and Exhibit "A" which is attached hereto and incorporated by this reference. PASSED, APPROVED, AND ADOPTED this 17th day of May, 2011. ATTEST: Julie Folcik, City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF COSTA MESA ) ss Gary Monahan, Mayor APPROVED AS TO FORM: Tom Duarte, City Attorney I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 11- and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 17th th day of May, 2011, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this day of May, 2011. JULIE FOLCIK, CITY CLERK (SEAL) FXHIRIT A The Business Improvement Area ("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 assessment. The following businesses will be included in the BIA that is established pursuant to Streets & Highways Code § 36500 et seq., the businesses commonly known as: Ayres Country 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 92626 Property Owner: Homes by Ayres 355 Bristol Street, Suite A Costa Mesa, CA 92626 Best Western Newport Mesa Inn Property Address: 2642 Newport Boulevard, Costa Mesa Business Owner: Somes Hsuen Shang -Pu Lee 2642 Newport Boulevard, Costa Mesa, CA 92627 Hilton Oranae Countv/Costa Mesa Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Ashford Hospitality Trust 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Hotel Hanford Property Address: 3131 Bristol Street, Costa Mesa Business Owner: Hanford Hotels Property Owner: Hanford Hotels 4 Corporate Drive, Suite 102 Newport Beach, CA 92660 Holidav Inn Exaress Hotel and Suites. Costa Mesa Property Address: 2070 Newport Blvd., Costa Mesa Business Owner: Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Costa Mesa Marriott Property Address: 500 Anton Boulevard, Costa Mesa Business Owner: J.W. Marriott, Jr. Property Owner: Marriott Suites, Ltd. 1 Marriott Way Washington, D.C. 02258 M---.4- I -- Property - Property Address: 1680 Superior Ave., Costa Mesa Business Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 Residence Inn. Costa Mesa 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, MD 20817 The Westin South Coast Plaza Hotel Property Address: 686 Anton Boulevard, Costa Mesa Business Owner: Host Hotels & Resorts 6903 Rockledge Dr., Suite 1500 Bethesda, JD 20817 Property Owner: CJ Segerstrom & Sons c/o South Coast Plaza 686 Anton Boulevard Costa Mesa, CA 92626 Wyndham Hotel Property Address: 3350 Avenue of the Arts, Costa Mesa Business Owner: Rosanna Inc. 4100 MacArthur Blvd., Suite 200 Newport Beach, CA 92660 FYHIRIT R The BIA assessment will be used to fund the Costa Mesa Conference & Visitor Bureau (CMCVB). The CMCVB will fund activities to promote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City. The specific improvements and activities to be funded by this assessment are outlined in the CMCVB's 2010-2011 Annual Report, which is attached as Exhibit C. Revenue A three percent (3%) levy will be assessed against each of the ten hotels listed in Exhibit A, based on the net revenue from the sale of overnight room stays. Business owners shall pay the assessment to the Costa Mesa City Finance Department on a monthly basis. A penalty and interest shall be assessed on late payments. Note: New hotel and motel businesses commenced after the effective date of this Resolution will be exempt from the levy of assessment. ATTACHMENT 3 201 1-2012 Strategic Alliance -100� GostaMesa The Bmt Of Southem California, rama. 10m.f. &�� History In 1995, the City Council adopted Ordinance No. 95-9 to establish a Business Improvement Area (BIA) for the purpose of assisting the Hotel and Motel Industry in their promotion of tourism within the City and activities that are mutually beneficial to the City of Costa Mesa. The BIA imposed a one percent (1%) assessment on the sale of hotel and motel overnight guest room stays. This money was to be used for the establishment and maintenance of a local tourism and promotion council. The Costa Mesa City Council authorized the City Manager to contract with the Costa Mesa Tourism and Promotion Council to develop and administer the BIA. The Council later became the Costa Mesa Conference and Visitor Bureau. The Bureau's Board of Directors is comprised of the ten (10) general managers of the participating hotels, a representative from the City Council, and the City Manager or his designee. • In January of 2000, the participating hotels requested, and the City Council approved an increase in the assessment from one percent (1%) to two percent (2%). • In November of 2010, the participating hotels requested and City Council approved an increase in the assessment from two percent (2%) to three present (3%). New rate was approved and effective in January 1, 2011. • The BIA agreement and continuous of the 3% assessment goes to City Council in June for approval. • In the past, the City was allocated between $10,000 - $25,000 for promotional items, marketing and for special events. Our goal is to maintain the quality of life for residents, employees, businesses and visitors to the City of Costa Mesa through the safe, cost effective, delivery of diverse cultural programming, community events, and recreational programming. The results of these efforts will reaffirm that the City of Costa Mesa is a prime location to live, work and play. 2 Marketing Plan The marketing plan includes an advertising campaign, as well as recommendations for positive public relations efforts, including exploration of local promotional possibilities and special events. Objectives: A. Assist with marketing, community relations and creating awareness for existing special events to increase attendance and weekend hotel occupancy. B. Develop and secure high quality events for the community and increase hotel occupancy. C. Improve the perception of the City of Costa Mesa and its assets including hotels, parks, recreational facilities, shopping, and the arts. Web Site The current City's web site was developed "in-house" 3 years ago. In order to keep up with rapidly changing design elements and the growing need for electronic services, a complete redesign and restructure of the web site are required. The goal of the City's web site is to serve as a public communication tool, provide access to public services, as well as provide a wealth of easily accessible information for citizens, visitors, businesses, prospective businesses, and government agencies. We are requesting funds to assist our goal in revamping our web site. In 2009, CVB agreed to fund $25,000 for web site improvements. We are requesting to reinstate the $25,000 commitment to our web site development. Promotion Items In the past, the CVB has provided funds to purchase logo items including bags, shirts, hats and pens. Those items were used at community events to increase the branding for the city and for "goodwill". It is the opinion of several city council members that more promotional items should be produced and that more branding apparel is needed. These materials would have both the City of Costa Mesa and the Costa Mesa Conference and Visitor's Bureau logos. Items include hats and shirts for special events, branded EZ Tent and table top, banners, giveaway items and marketing materials. 3 Special Events The City of Costa Mesa recognizes that special events serve an important role in the city, including building a sense of community, expressing the city's cultural and artistic diversity, as well as entertaining and educating. Each year the City of Costa Mesa commits its resources through staff time, facilities and equipment resources to provide support to these events. With events like Barrett Jackson and the OC Marathon, as the number and size of events grow, it is necessary to provide event organizers with a consistent process and a central liaison to better coordinate efforts related to event management and overall support. This position will work towards securing addition events to the City of Costa Mesa that will increase weekend occupancy. A special position has been added to the new marketing and communications division within the City Manager's/CEO office. This position has been provisionally filled by Dan Joyce, a seasoned professional with over 20 years of marketing, promotions and special event experience. Dan's resume is attached for your review. This position will work towards securing addition events to the City of Costa Mesa that may increase weekend occupancy. Schedule of Events -2011 Costa Mesa Community Run Barrett Jackson (including banner program, marketing campaign, community relations campaign and movie night) OC Marathon Costa Mesa City Golf Championship Lion's Club Fish Fry July 4t" All American Boys Choir Celebration Woodbridge Invitational USTA Southwest Regional Tennis Event Winter Soccer Tournament Westside Street Jam -Pending Vaudeville Concert and Street Fair -Pending • Further partnering with many local events and fundraisers. 11 Potential Events -2012 July 4t" Community Concert and Fireworks Spectacular o One Kid and one Adult bands o 8000 spectators at the Pacific Amphitheater o Live Simulcast from PBS o Community Booths and Fair Amgen Tour The city has been selected to submit a bid for a 2012 tour stop. The event features the top cyclist in America during an 8 day tour. The event averages 50,000 in attendance and is a nationally televised event. In 2010, the City of Modesto reported that over 1000 rooms were booked by spectators, athletes, and media and support staff. Please see attach documents for the City of Modesto local organizing committee. Special Event Volunteer Squad To attract additional special events to Costa Mesa, a special civilian event "squad" will be created in 2011. The squad will be trained in special event management including traffic control, emergency procedures and communications. The training will be conducted by Costa Mesa PD. We are requesting funds for training materials and branded uniforms. Advertising Campaign The City of Costa Mesa has two top notch recreational facilities; Costa Mesa Golf Course and Costa Mesa Tennis Center. These facilities are not being promoted to their full potential through the CVB network. We are requesting funds to create a marketing and advertising campaign to increase weekend tourist to use these facilities. Sister City Program The Sister City Agreement is part of the program of the Sister City Project, which aims to build "goodwill and friendship between the two cities and in the earnest hope for deeper understanding between the nations of Australia 5 and the United States of America. " A non-profit, community benefit association, the Sister City Project is comprised of individuals and organizations dedicated to cultural enrichment, business opportunities, and government interaction between the communities of Wyndham and Costa Mesa. The project supports programs that mutually benefit and inform, enhance, and encourage interaction between citizens, businesses, and city leaders from both communities. The project involves a variety of members that make up the dynamic communities of Wyndham and Costa Mesa. The program is creating goodwill ambassadors that are promoting Costa Mesa through international relations. Our goal is to continue to use this program to promote Costa Mesa as a tourist destination. R ATTACHMENT 4 EcEff-M, a a CM Golf Course $1,000.00 $2,000.00 CM Tennis Center $1,000.00 $2,000.00 Total $2,000.00.]: ,$4;000.00 Redesign/Special Sections $25,000.00 $40,000.00 Special CVB Pale Total' 000.0011:1::.$40;000.00.; Special Event Volunteer Promo items Marketing Materials $10,000.00 $0.00 $10,000.00 $0.00 $5,000.00 Total $20;000:00 ` $0:00 EcEff-M, a a CM Golf Course $1,000.00 $2,000.00 CM Tennis Center $1,000.00 $2,000.00 Total $2,000.00.]: ,$4;000.00 Redesign/Special Sections $25,000.00 $40,000.00 Special CVB Pale Total' 000.0011:1::.$40;000.00.; Special Event Volunteer �"MMOIM'$147,OOD.QQ $134;000 00 $5,000.00 $0.00 Squad �5a;000.00 ;. _. Total 5 000 00 -:, .$0:00: , $401;000.00 3;000-00L> nexpenses fi30.,00fl �}0. Per hour and $50,000.00 $50,000.00 $25;000 a0: Total _ $50,00000._.1. $50,000' 00' $2C);00C),00 :. _ _. _ _ 51a,0aJ 00 $5.000 00 Special Events $25,000.00 $40,000.00:$0.C0 Total::$25000.00 $40;000:00 w ai Sister City Program $10,000.00 $0.00 a�� ��� �AULOI Start u for July 4th 2012 p .. y - $10,000.00 $0.00 Regdeste'dcQ Total: $20,000:00 $0:00 - .. �"MMOIM'$147,OOD.QQ $134;000 00