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Home My WebLink About07 - NB-1 - Modification to the Business Improvement - 1/6/2015CITY COUNCIL AGENDA REPORT MEETING DATE: January 6, 2015 ITEM NUMBER: NB -1 SUBJECT: MODIFICATION OF BUSINESS IMPROVEMENT AREA (BIA) TO ADD A NEW HOTEL THAT WILL BE SUBJECT TO THE BIA ASSESSMENT DATE: December 4, 2014 FROM: CITY CEO'S OFFICE PRESENTATION BY: DANIEL K. BAKER, PUBLIC AFFAIRS MANAGER FOR FURTHER INFORMATION CONTACT: DAN BAKER (714) 754-5156 RECOMMENDATION: It is recommended that the City Council: 1. Introduce for first reading Ordinance No. 15-xx, to be read by title only and waive further reading, modifying the BIA to add a new hotel that will be subject to the BIA assessment (Attachment 1). 2. Conduct a public meeting regarding the Business Improvement Area (BIA) modification to include an additional hotel into the business BIA and accept public comments regarding such proposed modification. BACKGROUND: The California Legislature adopted the Parking in Business Improvement Area Law of 1989 (Streets and Highways Code, §36500), which enables cities to impose an assessment fee on businesses within an area designated by the city. On July 5, 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 its promotion of tourism within the city. The BIA imposed an assessment on the sale of hotel and motel overnight guest room stays. This money is used for the establishment and maintenance of a local tourism and promotion council. The Costa Mesa City Council authorized the city manager to enter into an agreement with the Costa Mesa Tourism and Promotion Council to develop and administer the BIA. In 2001, the Costa Mesa Conference & Visitor Bureau (CVB) became the administrator of the BIA. In accordance with the CVB's bylaws (Attachment 2), the CVB's Board of Directors is currently comprised of 10 general managers from the 10 participating hotels, one member of the City Council, and the City Chief Executive Officer's designee. The CVB's Board of Directors is also appointed as the Advisory Board to the City Council concerning certain matters related to the BIA pursuant to Streets & Highways Code section 36530. In June of 2014, the participating hotels requested and recommended that the BIA be modified such that the BLVD Hotel, located at 2430 Newport Blvd, be included and be subject to the BIA assessment in the manner described above (Attachment 3). The BLVD Hotel has also expressed a desire in being included in the BIA and being subject to the assessment (Attachment 4). ANALYSIS: Currently, the number of properties included in the BIA assessment levy is limited to the 10 hotels that have expressed an interest in participating in the program. The proposed ordinance would modify this number by adding one additional hotel (Attachment 1). However, State law requires a very specific procedure in modifying the BIA to include an additional hotel. This is the second step of that procedure with the final step occurring at the public hearing on January 20, 2015. After this public meeting, affected businesses will also be provided an opportunity to protest the annual assessment or address any concerns regarding the BIA at the public hearing on January 20, 2015. After the public hearing, the City Council will vote to adopt or deny the ordinance concerning the proposed modification, and makes the ultimate decision as to the size of and the businesses to be included in the BIA. Once the proposed modification is approved, the assessment is collected along with the city's Transient Occupancy Tax (TOT). The hotels and motels included in the BIA are required to itemize the BIA levy as a separate assessment. The CVB staff manages the day-to- day activities and provides all services to administer the BIA. ALTERNATIVES CONSIDERED: The Council may decide to not conduct the first reading of the ordinance, as described above, and direct staff to not continue the process of modifying the BIA, which will result in the BIA not being modified as described above. FISCAL REVIEW: The annual fiscal year 2013-14 revenue for the CVB totaled approximately 2.2 million dollars. The addition of an eleventh hotel will increase revenues and allow for additional funding to promote the tourism industry in Costa Mesa. LEGAL REVIEW: Legal counsel has prepared the proposed ordinance and reviewed the documents and approved as to form. CONCLUSION: State law mandates a specific procedure to be followed in the establishment of a BIA area and the levying of an annual assessment. This is the second step of that process. The City Council will have to hold a public hearing on January 20, 2014 concerning the proposed modification and ultimately adopt an ordinance concerning the proposed modification after the public hearing. DANIEL K. BAKER Public Affairs Manager THOMAS DUARTE City Attorney THOMAS R. HATCH City CEO DISTRIBUTION: Costa Mesa Conference & Visitor Bureau ATTACHMENTS: 1 Proposed Ordinance 2 Bylaws of Costa Mesa Conference & Visitor Bureau 3 Letter from CVB concerning proposed modification 4 Letter from BLVD Hotel concerning proposed modification Attachment 1 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA MODIFYING ORDINANCE NO. 95-9, RELATING TO THE ESTABLISHMENT OF A BUSINESS IMPROVEMENT AREA FOR COSTA MESA HOTELS AND MOTELS, SUCH THAT AN ADDITIONAL BUSINESS IS SUBJECT TO SUCH BUSINESS IMPROVEMENT AREA. 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 ( "BIA"), 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, as of July 1, 2014, the BIA assessment levied against businesses subject thereto is three percent (3%) where the three percent (3%) assessment is based on the sale of overnight room stays; and WHEREAS, the 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 Annual Report for the Costa Mesa Tourism & Promotion Council Business Improvement Area, which is on file with the City Clerk's office; and WHEREAS, the type or types of activities funded by and through the levy of assessments on the businesses, as discussed above, are specified in the Annual Report for the Costa Mesa Tourism & Promotion Council Business Improvement Area, which is on file with the City Clerk's office, and as Exhibit B, attached hereto and incorporated by this reference; and WHEREAS, the City Council appointed the general managers of the hotels and motels subject to the assessment area, to serve as the advisory board as required by California Streets and Highways Code Section 36530; and WHEREAS, new hotel and motel businesses commenced after the effective date of Ordinance No. 95-9 are exempt from the levy of assessment, pursuant to Streets & Highways Code § 36531 and § 36535; and WHEREAS, the BLVD Hotel, located at 2430 Newport Blvd Costa Mesa, CA 92627, has expressed a desire to also be included in the BIA and be subject to the BIA Assessment; and WHEREAS, Streets and Highways Code Sections 36540 and 36541 permit the City Council to modify the BIA by adopting this Ordinance; and Attachment 1 WHEREAS, the Advisory Board for the BIA has recommended that the BLVD Hotel be included with the BIA and subject to the BIA Assessment; and WHEREAS, on November 18, 2014, the City Council adopted Resolution No. 14- 72, declaring its intention pursuant to Streets & Highways Code Section 36541 to modify the BIA, as discussed above; and WHEREAS, on January 6, 2015, the City Council held a duly noticed public meeting pursuant to Government Code Section 54954.6 to hear public testimony on the modification; and WHEREAS, on January 20, 2015, has held a duly noticed public hearing pursuant to Streets & Highways Code Section 36541 and Government Code Section 54954.6 to consider any protests against the modification discussed above from businesses which would be subject to the BIA Assessment; and WHEREAS, on January 20, 2015, the City Council has held a duly noticed public hearing to consider any protests against the modification discussed above from businesses which would be subject to the BIA Assessment in its Chambers located at City Hall, 77 Fair Drive, Costa Mesa, CA 92626; and WHEREAS, as a result of both the public meeting and public hearing discussed above, no majority protest against the modification discussed above was received; and WHEREAS, the time and manner of collecting the assessments is set forth in Exhibit B of the Resolution of Intent, No. 14-72 adopted by the City Council on November 18, 2014; and WHEREAS, the City Council finds that the businesses within the BIA will be benefitted by the improvements and activities funded by the BIA assessment. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The recitals set forth above are true and correct and are incorporated herein by reference. Section 2. Ordinance 95-9, and its subsequent resolutions, is hereby modified such that the businesses that are subject to the BIA Assessment shall include those listed in Exhibit A of this Ordinance. These businesses shall be subject to any amendments to this Ordinance, Ordinance 95-9, and their subsequent amendments and resolutions. Section 3. Except as provided by this Ordinance, Ordinance 95-9, their amendments and their associated resolutions, including, but not limited to, the BIA Assessment to be levied upon businesses subject thereto remain unchanged. Attachment 1 Section 4. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. Section 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. Section 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after its final passage. PASSED AND ADOPTED this _ day of , 2015. Stephen M. Mensinger, Mayor APPROVED AS TO FORM: Thomas P. Duarte, City Attorney /_1aIQM9 Brenda Green, City Clerk of the City of Costa Mesa Attachment 1 STATE OF CALIFORNIA) COUNTY OF ORANGE ) ss CITY OF COSTA MESA) I, Brenda Green, City Clerk and ex -officio clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Ordinance No. _ was introduced and considered section by section at a regular meeting of said City Council held on the day of _, 2014, and thereafter passed and adopted as a whole at a regular meeting of said City Council held on the day of , 2014, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this day of , 2014. City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa 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: Newport Country Inn & Suites, Inc. 355 Bristol Street, Suite A Costa Mesa, CA 92626 Property Owner: Newport Country Inn & Suites, Inc. 355 Bristol Street, Suite A Costa Mesa, CA 92626 Best Western Plus Newport Mesa Inn Property Address: 2642 Newport Boulevard, Costa Mesa Business Owner: James Hsuen Shang -Pu Lee 2642 Newport Boulevard, Costa Mesa, CA 92627 Property Owner: James Hsuen Shang -Pu Lee 2642 Newport Boulevard, Costa Mesa, CA 92627 BLVD Hotel Property Address: 2430 Newport Blvd., Costa Mesa, CA 92627 Business Owner: Shayamal Patel 2450 Newport BLVD Costa Mesa, CA 92627 Attachment 1 Property Owner: Hilton Costa Mesa Shayamal Patel 2450 Newport BLVD Costa Mesa, CA 92627 Property Address: 3050 Bristol Street, Costa Mesa Business Owner: Ashford Hospitality Trust 14185 Dallas Parkway, Suite 1100 Dallas, TX 75254 Property Owner: Remington Lodging & Hospitality LP 14185 Dallas Parkway, Suite 1100 Dallas, Texas 75254 Crowne Plaza Property Address: 3131 Bristol Street, Costa Mesa Business Owner: Brighton Management 1901 Main Street, Suite 150 Irvine, CA 92614 Property Owner: 3131 Bristol Property UC, LLC 2711 Centerville Road, Suite 400 Wilmington, DE 19808 Holiday Inn Express Hotel & Suites Property Address: 2070 Newport Blvd., Costa Mesa Business Owner: Property Owner: Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92667 Costa Mesa Marriott Property Address: 500 Anton Boulevard, Costa Mesa Business Owner: Marriott International 10400 Fernwood Rd. Bethesda, MD 20817 Attachment 1 Property Owner: Host Hotels & Resorts 6903 Rockledge Dr., Suite 1500 Bethesda, MD 20817 Ramada Inn & Suites Costa Mesa Property Address: 1680 Superior Ave., Costa Mesa Business Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 Property Owner: B.D. Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 Residence Inn by Marriott Property Address: 881 Baker Street, Costa Mesa Business Owner: Marriott International 10400 Fernwood Rd. Bethesda, MD 20817 Property Owner: ING Clarion Partners 2650 Cedar Springs Road, Suite 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 Attachment 1 Avenue of the Arts Wyndham Hotel Property Address: 3350 Avenue of the Arts, Costa Mesa Business Owner: Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92627 Property Owner: Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92627 Attachment Exhibit B BIA Annual Report -0 w COSTA MESA ''ITY OF THE ARTS" 575 Anton Blvd., Suite 880 Costa Mesa, CA 92626 COSTA MESA Conference and Visitor Bureau COSTA MESA ANNUAL REPORT Fiscal Year Ending June 2014 n A Part of THE OC Experience w — A EXECUTIVE COMMITTEE Mike Hall Chairman of the Board, General Manager, The Westin South Coast Plaza Susan O'Brien Moore Vice President, General Manager, Ayres Hotel & Suites Sue Cooke Treasurer, General Manager, Residence Inn by Marriott Costa Mesa Charles Haber Secretary, General Manager, Crowne Plaza DIRECTORS Naj Ekhlas General Manager, Best Western Plus, Newport Mesa Inn Kandee Anderson General Manager, Costa Mesa Marriott Rob Gauthier General Manager, Hilton Orange County/Costa Mesa Ross Stibor General Manager, Ramada Inn and Suites Tom Hatch CEO, City of Costa Mesa Gary Monahan Council Member, City of Costa Mesa Stephanie Escamilla General Manager, Holiday Inn Express Paul Sanford General Manager, Avenue of the Arts Wyndham Hotel ADVISORS Terry Dwyer President, Segerstrom Center for the Arts Werner Escher Executive Director of Domestic and International Markets, South Coast Plaza Peter Papagelis General Manager, Mastro's Steakhouse STAFF Paulette Lombardi -Fries President Lisa Janulewicz Operations Manager Linda Ta Marketing Manager Nathan Wheadon Marketing Coordinator I 3 5 6 8 10 12 18 21 22 23 25 26 27 34 36 37 39 40 43 46 47 53 55 56 57 58 TABLE OF CONTENTS About Costa Mesa Conference and Visitor Bureau Fiscal Overview _ Abundant Opportunities BIA Tourism Matters Domestic Travel Building International Momentum Better Together — Partnerships Orange County Visitors Association Financial Summary: Fiscal Year 2013/2014 * Expense Projections: Fiscal Year 2014/2015 Marketing Overview Marketing Overview: Fiscal Year 2013/2014 Website Traffic :+ Social Media Travel Costa Mesa Calendar Travel Costa Mesa Blog — Costa Mesa Monthly Email Newsletter Print Campaign 50 Reasons to Stay Campaign IPW 2013 Results Canada Sweepstakes Co -Op Campaign OC Marathon or Costa Mesa Restaurant Week'" TripAdvisor Sponsorship Page & Banner Ads SEO: Google AdWords & Bing/Yahoo Ads Public Relations / Media Highlights 3 5 6 8 10 12 18 21 22 23 25 26 27 34 36 37 39 40 43 46 47 53 55 56 57 58 OIL t 4... . All F f'r COSTA MESA The Costa Mesa Conference and Visitor Bureau is a nonprofit corporation formed in 1995 to market the city of Costa Mesa as a desirable, leisure overnight destination in Orange County. Mission Statement The Costa Mesa Conference and Visitor Bureau enhances and promotes the destination brand experience, further increasing visitor spending for industry and community economic viability, sustainability and quality of life. Vision Statement The Costa Mesa Conference and Visitor Bureau is the engaged destination marketing leader, supporting and selling the city's distinct visitor brand experiences and advocating community tourism benefits. COSTA MESA CVB ANNUAL REPORT 1 , jV - r, LL r ',. �/ 1'F, ,._gam... ,_� *• ,'yj • * K, 'rte . ;k + r_, L4 j 1 FIX yr IL i6 5 S. aa. E�::; r= �z Privileged to be the home of the best shopping, top restaurants and award-winning performances, the City of the Arts'" is establishing itself as a desirable overnight destination in Orange County. The Costa 4 Mesa Conference and Visitor Bureau (Bureau) has worked diligently to promote the city's beautiful attributes as a premier destination when visiting Southern California. We are proud of the work we have accomplished. Focusing on the consistent brand messaging using the Art of Fashion, Art of the Stage, and Art of Dining, the Bureau continues to put Costa Mesa on the map both domestically and now x ;s "1. internationally. California remains the number one travel destination in the United States, and the positive momentum we have felt over the last fiscal year in the tourism industry has been exciting. The state of California 1 set a record of more than $106 billion in tourism spending in 2012. Orange County travel impacts were at $9.4 billion in direct spending, which contributed to $232 million in local taxes and $358 million in state taxes (according to Dean Runyan and Associates, 2013). f, According to Star Data Research, hotel occupancy in the state grew 2.8% to 70.7%, and the average daily rate (ADR) was $130.45 — up 5.6% compared to 2012. Closer to home, Orange County occupancy grew 2.5% to 77.5%, and the ADR was $121.61 — an increase of 8.4% (as reported by PKF Consulting). . Participating hotels within the Bureau achieved an increase of 9.9% in occupancy, reaching 79.3% occupancy, and grew ADR to $122.60, an increase of 2.4%. - Maximizing the Bureau's budget and audience reach, we will continue to partner with Visit California (also known as the California Travel and Tourism Commission), the Orange County Visitors Association and John Wayne Airport, Orange County. Leveraging our marketing funds in co-op programs with these partners will enable us more opportunities to enhance our destination marketing efforts and increase the number of visitors to Costa Mesa. Investments into renovations of our hotels continue to enhance our portfolio of lodging choices. The Hilton has completed a renovation of its ballroom space, added a new Executive Lounge Club, and created a sophisticated tech lounge in the lobby of the hotel and a Grab -n -Go pantry. The Holiday Inn Express (HIE) is completing upgrades to its guest rooms, lobby and Sunshine breakfast room. Added amenities to the HIE include the addition of a fitness center, pool and meeting room. The Costa Mesa Marriott remodeled its fitness center, and the Crowne Plaza launched the opening _ of the Fireside Tavern as well as created a welcoming porte-cochere entrance for guests. The city also welcomed fantastic new restaurants such as Taco Maria and Greenleaf Gourmet Chopshop at the OC Mix, Seabirds Kitchen at The LAB, Fluff Ice and Jerry's Wood -Fired Dogs at Marquee CM, and — - -- H2O Sushi, Saddle Ranch Chop House and EI Corazon de Costa Mesa at the Triangle. — _ 7 The future holds many enticing opportunities to introduce Costa Mesa to both domestic and -- international travelers. The Bureau remains a creative and driven staff of four, full-time associates —4 kF dedicated to highlighting the City of the Arts- as a "must -see" destination when visiting Orange County. _ Paulette Lombardi -Fries v — - President, Costa Mesa Conference and Visitor Bureau COSTA MESA CVB ANNUAL REPORT 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 are set forth according to City of Costa Mesa Ordinance 95-9, and as follows: The BIA assessment will be used to fund the Costa Mesa Conference & Visitor Bureau. The Bureau will fund marketing efforts to promote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City. The improvements and marketing to be funded by this assessment are outlined in the annual report. Revenue A three -percent (3%) levy will be assessed against each of the 10 hotels listed in the annual report, 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. New hotel and motel businesses that are interested in participating in the BIA commenced after the effective date of the resolution of intention will be considered to join prior to the new fiscal year when the Bureau is up for renewal with the City Council. i• Avenue of the Arts Wyndham Hotel Ayers Hotel & Suites Best Western Plus Newport Mesa Inn Hilton Crowne Plaza Holiday Inn Express Hotel & Suites Marriott Ramada Inn & Suites Residence Inn by Marriott The Westin South Coast Plaza 3350 Avenue of the Arts Costa Mesa, CA 92626 325 Bristol Street Costa Mesa, CA 92626 2642 Newport Blvd. Costa Mesa, CA 92627 3050 Bristol St. Costa Mesa, CA 92626 3131 Bristol St. Costa Mesa, CA 92626 2070 Newport Blvd. Costa Mesa, CA 92627 500 Anton Blvd. Costa Mesa, CA 92626 1680 Superior Ave. Costa Mesa. CA 92627 881 Baker St. Costa Mesa, CA 92626 686 Anton Blvd. Costa Mesa, CA 92626 Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92626 Newport Country Inn & Suites, Inc. 355 Bristol St., Suite A Costa Mesa, CA 92626 James Hsuen & Shang -Pu Lee 2642 Newport Blvd. Costa Mesa, CA 92627 Ashford TRS CM LLC 14185 Dallas Parkway Suite 1100 Dallas, TX 75254 Brighton Management 1901 Main Street Suite 150 Irvine, CA 92614 Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92627 Marriott International 10400 Fernwood Rd. Bethesda, MD 20817 B.D. Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 Marriott International 10400 Fernwood Rd. Bethesda, MD 20817 Host Hotels & Resorts 6903 Rockledge Dr. Suite 1500 Bethesda, MD 20817 Rosanna Inc. 3350 Avenue of the Arts Costa Mesa, CA 92626 Newport Country Inn & Suites, Inc. 355 Bristol St., Suite A Costa Mesa, CA 92626 James Hsuen & Shang -Pu Lee 2642 Newport Blvd. Costa Mesa, CA 92627 Remington Lodging & Hospitality LP 14185 Dallas Parkway Suite 1100 Dallas, TX 75254 3131 Bristol Property UC, LLC 2711 Centerville Rd. Suite 400 Wilmington, DE 19808 Narendra B. Patel 2070 Newport Blvd. Costa Mesa, CA 92627 Host Hotels & Resorts 6903 Rockledge Dr. Suite 1500 Bethesda, MD 20817 B.D. Inns Inc./Ramada Ltd. 1680 Superior Ave. Costa Mesa, CA 92627 ING Clarion Partners 2650 Cedar Springs Rd. Suite 850 Dallas, TX 75201-1491 CJ Segerstrom & Sons c/o South Coast Plaza 686 Anton Blvd. Costa Mesa, CA 92626 6 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT t 8 COSTA MESA CVB ANNUAL REPORT The tourism industry continues to be a strong economic driver for the state of California. Visitors spend more than $106 billion annually in travel - related spending. State and local taxes accounted for $6.6 billion. According to Visit California, between June 2012 and June 2013, the leisure and hospitality industry added 69,200 jobs, a 4.3% increase. In 2012, there were 917,000 tourism - related jobs in California. According to preliminary numbers, 44.3 million visitors came to Orange County in 2013, spending $9.5 billion. The county employs 188,000 total hospitality workers. That number will continue to grow, especially since the Anaheim/Orange County Visitors Bureau announced they will receive a 200,000 -square -foot upgrade and expansion to their convention center. The city of Costa Mesa collected over $7.2 million in transient occupancy tax in fiscal year 2012-2013. It was the fourth largest tax generator of the city's general revenues. The Bureau's partner hotels employ over 925 associates. Food & Beverage 29% Air Transportation 4% Transportation & Fuel 18% Accommodations 18% Retail Sales 16% Art, Entertainment & Recreation 15% California remains the number one travel destination in the United States. Domestic leisure travel to California will outpace business travel, according to the Tourism Economics 2013 report. Over the past three years, the Bureau has been focused on leisure, transient business. The feeder markets the Bureau targeted over the past year include Los Angeles, Phoenix, Las Vegas, San Francisco, Seattle, San Diego, Palm Springs and the Inland Empire. Markets that directly fly into John Wayne Airport, Orange County, and the drive market will continue to be a priority for the Bureau. Some of our marketing outreach to this segment included banner ads, email blasts, radio, elevator communication, billboards, email newsletters and print. Annual Domestic Leisure Trips to California (Annual % Change) •r-2012 2013•14 RW 2.0% 2.3% -2015 2.6% 2016 2.7% Total 3.1% 2.2% California 3.0% 2.0% 1.8% 2.1% 2.4% 2.6% Primary Markets 5.2% 2.9% 3.2% 3.6% 3.7% 2.6% Arizona 5.2% 3.5% 3.2% 3.3% 3.5% 2.3% Nevada 6.3% 1.3% 3.0% 4.6% 4.4% 2.4% Oregon 2.6% 3.9% 2.4% 2.7% 3.4% 3.1% Washington 6.5% 3.3% 3.6% 3.2% 3.0% 2.5% Utah 4.9% 2.8% 4.1% 4.0% 3.9% 3.3% Colorado Opportunity Markets Texas 5.1% 3.1% 3.4% 3.7% 4.0% 3.1 3.5% 3.3% 3.3% 3.5% 4.1% 3.2% 4.4% 3.9% 4.4% 4.7% 5.0% 3.9% New York 1.2% 2.1% 1.8% 1.9% 3.1% 2.2% Illinois 5.1% 3.8% 3.2% 3.4% 3.5% 3.2% Rest of U.S. 1.3% 2.7% 2.1% 2.2% 2.5% 3.2% Source: Tourism Economics. Historical sources: TNS Global Note on volatility of historical data and treatment in forecast: Due to smaller sample sizes and relatively smaller visitor volumes in absolute terms, the historical data of origin markets tends to be more volatile than total visitor volumes. 10 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 11 California welcomed 15.3 million international travelers in 2013. International visitors are the state's most valuable tourists. They spend the most (2013 estimates are $22.1 billion), and their average length of stay exceeds that of the domestic traveler. A growing middle class internationally, coupled with the value of the U.S. dollar, suggests that international visitation will outpace domestic travel for some time to come. This past fiscal year, the Bureau began marketing the City of the Arts" to China, Canada and Mexico. Along with our desire to welcome these guests to our city, the Bureau has invested in translation of our website and marketing collateral to reach these international markets. Within the next few years, we will be expanding our reach to additional countries. We will leverage our marketing funds and continue to partner with the Orange County Visitors Association and Visit California. Annual International Leisure Trips to California (Annual % Change) • Total 9.1% 5.5% • 4.5% • 4.4% • 4.3% 2016 5.9% China 34.8% 36.8% 16.7% 18.6% 17.8% 16.0% Canada 6.4% 3.6% 4.0% 4.1% 4.3% 4.2% Mexico 8.5% 3.5% 4.1% 4.7% 5.3% 5.5% Australia -2.2% -0.8% 2.8% 3.9% 4.9% 5.5% United Kingdom -3.0% -1.9% 0.4% 1.7% 2.0% 2.6% India 8.7% 8.1% 8.7% 9.5% 10.0% 11.2% .Japan 5.4% 7.0% 4.3% 5.1% 5.8% 6.0% South Korea -0.5% 1.3% 3.8% 4.7% 6.1% 6.8% Germany 3.1% 1.8% 4.1% 4.3% 4.5% 4.3% France 17.0% -14.1% 0.3% 1.3% 2.0% 2.4% Scandinavia 4.5% 2.2% 0.9% 1.4% 1.8% 2.3% South America 19.9% 17.7% 8.1% 9.4% 11.1% 12.4% Rest of the World -4.9% 2.5% 4.3% 4.6% 5.6% Source: Tourism Economics. Historical sources: CIC Research, OTTI Note on volatility of historical data and treatment in forecast: Due to smaller sample sizes and relatively smaller visitor volumes in absolute terms, the historical data of origin markets tends to be more volatile than total visitor volumes. 12 COSTA MESA CVB ANNUAL REPORT 66.5 million trips Domestic 78% International 22% $106.4 billion in spending Domestic 61 International 39% China As Visit California notes, California is the top U.S. destination for Chinese travelers. In 2013, visitors spent an estimated $2.2 billion. Chinese visitors spend approximately $2,500 per trip, which exceeds the spending of any other traveler. Increases in disposable income and a strong currency have contributed to the Chinese desire to travel. One hundred million Chinese are expected to travel abroad by 2015. Within another 10 years, the number of Chinese travelers is estimated at 200 million. California welcomed 280 nonstop flights per month from China. The average length of stay for the Chinese traveler was 13.8 days in 2012, which has grown over 30%. The top five desired California destinations are Disneyland, Hollywood, Universal Studios, Los Angeles and beaches. According to a study Hall & Partners conducted in August 2012, 47% of people polled would like to visit Orange County and 53% would like to learn more about it. An estimated 40% of overall spending in 2012 was on shopping, followed by 21% going towards accommodations and 10% on food and beverage, according to the U.S. Department of Commerce. 0 At_ Visit to Beijing and Shanghai in October and China Familiarization Trips to Costa Mesa November, December, February 14 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 15 Canada Canadian visitors in 2012 spent $2.1 billion in California. Canada is the second-largest international market for the state, and an annual growth of more than 4% is expected through the next two years. Reasonable airfares, great weather, cultured cities and a diverse selection of dining experiences are features the Canadian traveler can experience here. According to Statistics Canada, 33.4% of Canadian visitors in 2012 came from British Columbia and 27.4% came from Alberta. The projected average length of stay in 2013 for the Canadian traveler is almost 10 days, which has grown over 11% compared to the previous year. According to the Hall and Partners study from August 2012, 35% of those polled would like to visit Orange County and 50% would like to learn more about it. Visa Vue 2012 reported that 33% of total credit card spend was on shopping. The Bureau began marketing the City of the Arts'" in the second half of this fiscal year. A sweepstakes was created with partners John Wayne Airport, Orange County, and South Coast Plaza targeting those in British Columbia. This co-op campaign launched in February 2014. The Bureau looks forward to increasing awareness to this group of travelers and will continue to do so in the upcoming fiscal year. Mexico According to Visit California, over 7 million Mexican travelers visited California in 2012. 504,000 people traveled from Mexico to California via air travel in 2012. This was a 6% increase from the previous spending of $498 million. Mexico's growing economy as well as an overall disinflation contribute to making outbound travel desirable. In 2013, there were 420 nonstop flights to California. In October 2012, Interjet introduced daily service to Mexico City and Guadalajara from John Wayne Airport, Orange County (JWA). Today, JWA has four daily nonstop flights to Mexico. The number of passengers serviced on these flights in 2013 was more than 300,000. Shopping was listed as the top spending category of a visitor's overall spend among air travelers (33%). As the Hall & Partners, August 2012 study reports, 39% of those polled would like to visit Orange County and 44% would like to learn more about it. Within the next fiscal year, the Bureau's efforts in partnership with the Orange County Visitors Association and Visit California will focus on air travelers who spend more in the state. Specifically, we will concentrate on air travel to Mexico City and Guadalajara as direct flights on Interjet and AirTran are offered into JWA. 16 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 17 Partnerships John Wayne Airport, Orange County John Wayne Airport (JWA) served more than 9.2 million passengers in 2013; the airport saw an increase of 4.2% compared to 2012. It is the only airport in Orange County that provides commercial passenger and air cargo service. With over 20 nonstop destinations, the airport welcomes both domestic and international travelers. Visitor spending greatly impacts our regional economy and helps sustain jobs. In March 2014, the airport announced its economic impact results, conducted by InterVISTAS Consulting LLC, for calendar year 2012. This study measured the direct, indirect and induced economic impacts generated by JWA in Orange, Los Angeles, Riverside and San Bernardino Counties. 2012 was the first year since 2008 with positive passenger growth, serving nearly 8.9 million passengers. 2.3 million domestic and 56,000 international visitors arrived at JWA in 2012. Domestic visitors arriving through JWA spent $1.8 billion, and international visitors spent $40.4 million. JWA has provided direct air service between Orange County and Mexico for nearly two years and during this time has served about 500,000 passengers. Today, JWA offers daily nonstop service to Cabo San Lucas, Guadalajara and Mexico City. Through the direct efforts of JWA, the Orange County Visitors Association (OCVA) and the Bureau are working on an initiative with Interjet to better understand the marketing opportunities in Mexico in relation to building awareness about Orange County and marketing to travelers visiting our destination. As the Bureau embarks on international marketing efforts, we will partner closely with JWA and OCVA to ensure the City of the ArtsT" is represented as a "must -see" destination in Orange County. JOI*1 vAAY, AIRPORT IN This past summer showcased the first tourism -related Orange County banner at the airport, displayed outside terminal B baggage claim (late August 2013). Working closely with the marketing team of OCVA and JWA, 10 cities were showcased welcoming travelers to Orange County. Throughout the year, the Bureau identifies opportunities to market our city along with other Orange County city destinations. In December 2013, JWA and the Bureau joined forces to create a one-page ad for Delta Sky highlighting shopping, the arts and dining in Costa Mesa, as well as the convenience of our neighboring airport. In addition, there was a 19 -page spread profiling Orange County as a top destination focusing on shopping, beaches, picturesque weather, outdoor adventure, amusement parks and great schools. Costa Mesa was recognized in the editorial for shopping, the arts and dining. Taking advantage of the direct flight servicing nearly 75,000 passengers to and from Vancouver, the Bureau launched our first-ever Vancouver Sweepstakes, with JWA and South Coast Plaza as our primary partners. The campaign began in February and will run through mid-May. Online marketing, social media and print ads support the sweepstakes. The winner will receive round-trip airfare to JWA, three nights accommodations at the Avenue of the Arts Wyndham Hotel, a $5,000 shopping spree at South Coast Plaza and an array of dinner and lunch certificates to Costa Mesa's top dining establishments. The Bureau will continue to partner with the airport and market to our feeder cities serviced by JWA services in an effort to drive leisure, transient weekend business to our partner hotels. Branding the City of the ArtsT" and highlighting the convenience of the airport will remain a focus. 18 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 19 FNTfR To VVIN, SNnPP/ , ►/-),5 ti r, 5PRFF AT .S00O co (ITr♦ C. OAST P/ Al A0 A4 IN P11/3 (- SM �Y 7►q, tt'R40co4G04�'fR f iN� • �'tt'=`M"COAI�mr C054 AGE GaWv rr Mp M<ry�, �Sc�F�It3'StkN,nS c%A 7 r:4 ��W Ley I 0 W� The OCVA is a destination leadership organization that represents Orange County as one of the world's premier travel destinations by providing brand marketing, information dissemination, collective industry advocacy and educational opportunities. The OCVA, which was established over 20 years ago, is the voice for the visitor industry and is the only organization that promotes the entire county. The Bureau continues to play an active role on the OCVA Board of Directors and co-chairs the Marketing Committee. In 2013, Ed Fuller was named OCVAs president and has worked diligently to make great strides in marketing Orange County. Ed is an internationally recognized hospitality industry leader. Most recently, he retired after 22 years working for Marriott International as president and managing director of international lodging. With Ed's leadership and direction, OCVA accomplished several initiatives, including the first China sales mission. He previously launched several international programs and is now planning an annual conference that brings together industry leaders and government officials. Furthermore, Ed is working with California State University, Fullerton to expand the Center for Entertainment and Tourism Communications. Leveraging international opportunities with the OCVA has been a priority for the Bureau within the last year. In 2013, the Bureau became a China Initiative Pioneer along with neighboring cities and organizations to attract and educate the Chinese about Orange County and the specific attributes of the City of the Arts". Within the last year, we have benefited from familiarization (FAM) trips, inclusion in Orange County marketing materials, presentation of city hotel packages, representation in Governor Brown's China Trade Mission, press conferences and sales calls designed to entice the Chinese visitor to stay in Orange County. Two full-time sales managers stationed in Beijing and Shanghai have been working closely with travel and tour operators to promote our destination and Orange County. As a direct result of this initiative, our hotel partners will see 900+ room nights in the upcoming months. Educating the market, selling room night packages, and developing FAM trips to Orange County are our sales managers' primary goals. The City of the Arts" is represented on the OCVAs Chinese -language website, which launched in April. Costa Mesa will also be promoted on OC WeChat, a mobile text and voice messaging social communication service developed in China with 550 million users. Additional marketing efforts, such as point-of-purchase flyers, will be distributed by wholesalers to their retail outlets during key travel dates in 2014. Leisure travelers (an estimated 80-85 million travelers) purchase trips from retailers using wholesaler packages. The Bureau participated in a major trade mission to China with OCVA in October and visited Beijing and Shanghai. Twenty-five sales calls and two press conferences were held during this mission. Within 30 days of that sales trip, the Bureau hosted its first FAM trip with 34 reps from China. Two more FAM trips followed in the months of December and February, when the Bureau hosted an additional 30+ travel decision makers along with international media. 20 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 21 Fiscal Year 20132014 July $198,412.13 $202,380.37 August $210,830.39 $215,047.00 September $211,218.38 $215,442.75 October $253,470.71 $258,540.12 November $186,083.24 $189,804.90 December $192,974.49 $196,833.98 January $168,712.55 $172,086.80 February $161,849.43 $165,086.42 March $173,700.85 $177,174.87 April* $166,980.00 $170,319.60 May* $165,994.00 $169,313.88 June* $160,779.00 $163,994.58 * Projected numbers as BIA checks for these months have not been received. Fiscal Year 20142015 Total Marketing Expense $1,670,646.13 Online Marketing/ Display Ads/ Eblasts/ Familiarization Tours/Promotions/Print Advertising/ Sponsorships/Video Production/Tradeshows/ Brochures/ Hotel Marketing Fund Total Employee Expenses $411,360.22 Salaries/ Payroll Taxes/Workers Compensation/ Employee Benefits Payroll Services/ Incentives Total Administrative Expenses $168,329.90 City Collection/Accounting Audit/Mileage/Bank Charges/Dues & Subscriptions Insurance/Office Supplies/Rent/Parking/Postage/Telephone/ Travel/Meetings & Conferences Total Legal Expenses 22 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 23 COSTA MESA CVB ANNUAL REPORT 25 Fiscal Year 20132014 The Bureau continues to execute a marketing plan that encompasses a balance of branding and tactical elements geared towards increasing overnight leisure travelers. Focusing on consistent brand messaging using the Art of Fashion, Art of the Stage, and Art of Dining, the Bureau continues to work with Myriad Marketing to reach our target audience through a variety of channels. BRANDING VS. TACTICAL Brandin Tactical 43% 57% BRANDING: • Online/Digital Media • Print Media • Outdoor, Broadcast, Events • Public Relations • Social Media • SEO-Google Ad Words & Bing/Yahoo Ads TACTICAL: • 50 Reasons to Stay Campaign • Canada Sweepstakes Co -Op Campaign • Pandora Radio/Online • KJZZ Radio/Prize Campaign • Social Media • SEO-Google Ad Words & Bing/Yahoo Ads Audience Overview Traffic on Travel Costa Mesa.com continues to grow significantly as a result of strong marketing initiatives, a growing social media presence, and a heavy focus on search engine optimization (SEO). The Bureau focuses on researching top keywords and applying them to well-written and relevant content, which contributed to an increase in organic (non-paid/natural) search traffic. These efforts have resulted in an increase of 89% in total visits, from 102,006 to 192,894. Unique visitors increased 85%, from 86,579 to 160,156, year over year. Our audience is viewing more content with an average of 3 pages per visit. Total pageviews increased by 150%, from 231,301 to 577,668, and bounce rate decreased by 25%. JUL'12-FEB'13 JUL'13-FEB'14 16% ° 9% T � 1 0 A 84% 81% I New Visitor Returning Visitor Source: Google Analytics 26 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 27 Audience Demographics Over 90% of traffic to Travel Costa Mesa.com comes from the United States, with California, Arizona and Washington as the top three states. Visits from Washington significantly increased by 773% year over year from 876 to 7,644 as a result of geo-targeted print ads and key Ad Words campaigns. It is crucial we continue to use print as part of our marketing strategy to drive awareness and improve brand recognition for Costa Mesa. The Bureau has recently expanded its marketing efforts internationally into China, Canada and Mexico. China is the world's fastest-growing major economy, and California is the most desired U.S. travel destination. With an increase in nonstop flights to California, there has been an increase in visitors from Canada and Mexico over the past few years. Over 100 pages of Travel Costa Mesa.com content have been translated into Mandarin and Spanish to cater to these emerging markets. The Bureau plans to further those efforts by hosting Travel Costa Mesa.com in China and Mexico by purchasing domains. Source: Google Analytics Translated Website Pages Mandarin I r orra.rr 11 F. iF P4 . ,f � r. .• GAO■ #4 INQAN f�.06Fli �� •�tAYF.: -i..-: 4l.ta�7r i LwZ - ■ . �IL� 441Ur[s 'Cpnhnr ftLr 1lth MIL Spanish EMM H- -' 006 t h #VIII.: .L�Rr.[• _rt�Fi+Y�i+i4 y�AO JWylS['TJ, �■ �[jL - �Ljj�l�lYlLar1�� -- moo••••••-�� 'tira«,-•'waw .w aJa aJ�,alw� J �. YLiY .IY.rFrY rY.a,ia.i4 ,�Jw: a,�f �Y•�Jr��s�2.y.t ��,n �.�- 'sem J+�Y•44MYf ko� SxF+n�sGarfi Ceniei ro, LhtArLL a^%w ruw�i{�i.�a4�,r�ir�Ya1 �� w•� c � --c FJl —. —= • �wy�a r. � ,.....rt . � ti.r•. �� i w.� .r i +...r. � .err. - � :tom-* �« 28 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 29 Access by Device The mobile landscape is rapidly evolving, with more generations of smart devices available and higher consumer demand for mobile usability and responsive design. Mobile has become an increasingly important factor in how people interact online and how they are searching for content, and it will continue to increase in coming years. Mobile devices represent more than 50% of total visits to Travel CostaMesa.com. Mobile outperforms desktop, reflecting a 347% increase (18,344 to 81,914) year over year compared to an increase of desktop users by 27% (72,630 to 92,084). It is critical that we leverage the increasing demand for mobile access and continue to focus more on mobile site functionality and user experience in an effort to drive more traffic to Travel CostaMesa.com. Mobile Site rCISTA ME=S,#Y O/ rVIL pL�ssr FOLLOW US 100% 80% 60% 40 20% 0% Tablet Z .. r Desktop Source: Google Analytics Organic Traffic Organic search represents the largest amount of traffic to Travel Costa Mesa.com and continues to increase as we introduce more keywords, pages and activities to our site. Google continues to be the dominant search engine for internet users; however, traffic continues to improve for Yahoo and Bing year over year. More and more users are visiting the Bureau's site as an information resource for venues, events, attractions, deals and activities in Costa Mesa. The Bureau takes pride in creating quality content and is highly aware of our followers' interests through our social media, blogs, newsletters and site traffic analysis. Jul'12-Feb'13 6% 4% r L J Jul'13-Feb'14 6% ■ Google ■ Bing ■ Yahoo Source: Google Analytics 30 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 31 Top Viewed Pages Mobile traffic made an unprecedented jump with an increase of 1,933% from 4,174 to 84,845 year over year. The two marketing campaigns that had the most impact were 50 Reasons to Stay and Costa Mesa Restaurant Week. The 50 Reasons to Stay campaign successfully achieved over 2,600 room nights, with a 244% increase in web traffic year over year. Costa Mesa Restaurant Week traffic increased 155% from 16,935 to 43,156 year over year. Source: Google Analytics Top Viewed Pages COSTA HE5A A=F==$ = At' gt,sl15.3.;073 r. a a Join Wf for Cosa rk6 Res:etaacrt Weds 20!11 Ener MxKW prix lime menta Ordlo is ■t Costa Yrsas Lap nrtua n:s. gruura_nra InCoon kWa arqp a0g41rq up to 40k ell dWr rear pFkm duringRa wanr Wrakl You nus[ ask Tor the Corti Niel► Arifeitrirvt wnt merxr er mVw er the panicbattng rnfeur4nt5:' P4f1IClPGt1F)G R1;i1GUfO4ItS FwrLxxsk COSTA MESA C1rr OF Tiro &oro- STAY SHM COSTA MESA CITY aIt T149 ART$ - FOLLOW tic. ka— — .10 w w-wlu r- swx asa w aw wrfed v�wev - minsalre tovaW f+rt m-waa rrr� nada rr1 urge [aV¢r w,rpert. TM Clry or [na• ani^ .n..pr rw a �.ew+xw a .Hyrtl er enWat+ w[wa0. ww• w +•• vlawl erb eM increalaa tlinlp. • •San amsnran e.prxG® Oirc ram rx ndary nanprwq aNaYr sp. anal se.r mn, swop .� -: eY Swu• [wst alma' eesewrt - rer w esclws�re r-'-�`- efren N wv r00.aexl xern -w nGuvnni. lswv row ane prGp.x w SO renFer4 [p +`raY n C-Rr• araN Orli -MG ]rrry 5, Nlfa, -N IG nx-6 on ar-il-n4ny. HOTEL DEALS Experience Costa Mesa at one & our fine hoiet& 10 World -Class Oroaearay snows wtwa sort rronr O$aYi C�k mare-atoning ,F 40r11- ■t the ub urar-*w -1 Rff . 11a+1 2aF+++M-Siaaw4 fAi-++a f1t1YY -.ls a. --i issa.r gataa*y f��. 0+ -44Mr -11 �r fs JnF COSTA MESA C1rr OF Tiro &oro- STAY SHM COSTA MESA CITY aIt T149 ART$ - FOLLOW tic. ka— — .10 w w-wlu r- swx asa w aw wrfed v�wev - minsalre tovaW f+rt m-waa rrr� nada rr1 urge [aV¢r w,rpert. TM Clry or [na• ani^ .n..pr rw a �.ew+xw a .Hyrtl er enWat+ w[wa0. ww• w +•• vlawl erb eM increalaa tlinlp. • •San amsnran e.prxG® Oirc ram rx ndary nanprwq aNaYr sp. anal se.r mn, swop .� -: eY Swu• [wst alma' eesewrt - rer w esclws�re r-'-�`- efren N wv r00.aexl xern -w nGuvnni. lswv row ane prGp.x w SO renFer4 [p +`raY n C-Rr• araN Orli -MG ]rrry 5, Nlfa, -N IG nx-6 on ar-il-n4ny. HOTEL DEALS Experience Costa Mesa at one & our fine hoiet& 10 World -Class Oroaearay snows wtwa sort rronr ' •mac.-...a.�v, mare-atoning ,F $924 r.+r ear r.. nano 3� K� AVENUE wYRE51l5YEL9ATYlB6 or,ws pars wwlp" r'm .- 10 World -Class Oroaearay snows and concerts ------------------------------------------- mare-atoning ccf}vr of Pcrtcla Coffee Lae . - Free shutrtes from John Wayne Anpors 32 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 33 Social media is imperative to online marketing efforts because it helps drive brand awareness, provides a "unique" voice for the Travel Costa Mesa brand, drives visitors to the website and increases our online reputation. Engaging our visitors through social media is the evolution of communication today, as people increasingly feel the need to share their interests through an online community. The Bureau creates rich content and builds Travel Costa Mesa as a trusted "go -to" source for information. The number of social media followers has grown across each outlet. The number of social referrals, or visits to Travel Costa Mesa.com directly from social media sites, has grown substantially. Facebook referrals increased by 190% and Twitter referrals grew by 997% year over year. All social media traffic has increased through organic efforts, which leads to more loyal and engaged followers who are likely to share information with friends. Tumblr Google+ Pinterest <1% 2013 <1% 1% logger Hootsuite Tripadvisor ° 15% Yelp ------ I -- -------- Facebook 58% Twitter 12% Pinterest Blogger 1% Tripadvisor 9% y Tumblr Google+ 2014 <1% <1% Hootsuite Twitter 32 Facebook 43% Social Media Followers 34 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 35 The Travel Costa Mesa.com calendar is updated on a regular basis. In 2013-2014, the calendar page received a total of 28,114 pageviews, with 14,842 unique pageviews. The number of pageviews increased by 89% and unique pageviews increased by 39% year over year. The number of mobile users who viewed the Travel Costa Mesa.com calendar increased by nearly 600%. Calendar Of Events March 2014 2 3 4 5 9 10 11 12 16 17 18 23 24 25 30 31 19 IBAcx ■N=I 1 6 7 8 13 14 15 20 21 22 26 27 28 29 Shen Yun brings to Ilfe 5,000 years of Chlnese clvlIIzatlon through classlcaI Chlre-se -6ance ano music In an exhlIarad ng show you wlII never forget. 18th 5t. Patrick's Day Celebration & Green Festival 03.16.2014 1 Learn Mere I Love Lucy Live On Stage 03.16.2014 1 Learn More Orange County's Largest Mixer 03.19.2014 1 Learn More Patti Lu Pone 03.22.2014 1 Learn More The Travel Costa Mesa blog is updated 1-3 times per week with original content about events, food, shopping and the performing arts. Through the blog, the Bureau has been able to further establish strong partnerships within the city. The blog is important for our website ranking and SEO efforts, in addition to engaging with our visitors. Focused keywords help strengthen Google rankings for Travel Costa Mesa.com. This year, the blog received 49,957 pageviews, an increase of 78% over last year. The blog received 34,462 pageviews as a result of direct clicks from links shared via social media or the monthly newsletter. The average time spent on the blog remains the same, at 1:59 per visit. DSTA MESIO ettr OF THE Atha- STAY SHOP Costa Mesa Conference and Visitor Bureau Blog C.aaia Un > F.W a V.Mda 1.. do Y. Go— r w. Crnla Mfu 0—W GhA, Fireside Tavern of Crowne Plaza Cosfa Mesa Orange Counfy Ryrpm Mrtr, t* via, fll1y., 11, cmm Mai i�r*sja TM, *t as* Cfowne PWA Ca M *n*s Oranv Co ,,Ij afro gu*a% a warm mv" aa'w W w 1 wth * wd* sa(s— orores, gra! be" s"d co:*%ft 47 .0 u a lafti 4a N Arw ,*n u,r. cwr &aAoon Travel Costa Mesa shared a link. Posted by Costa Mesa Cvh III - March 18 I Love Lucy Lice On Stage opens tonight at Segerstrom Center For the Arts! Visit us on Twitter to learn how you can win a FREE pair of tickets For the show on Thursday, March 20! I Love Lucy& Live On Stage - www.travelcost amesa.com Witness one of the most beloved shows in TV history like you've never seen it before in I Love Luty@ Live On Stage at Segerstrom Center for the Arts. Ma... w am" 0 Q 0 "liomr Nhow'Ile gblg E-113 Fnud I Sotrle Mw Much &.,U1 Vc— Vlay Shopping rade Tswrn at Crown* Plus Costs us" orsrq& Cwnh V 5I'B.SCRIBF Lj to RSS FEED 36 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 37 !7 9 There are currently 20,665 subscribers to the Bureau's monthly email newsletter. New subscribers are added weekly through partnerships with Orange County Visitors Association, Sunset Magazine, Go-California.com, Visit California and lead generation activities such as online sweepstakes or tradeshow engagement. COSTA ES CITY CF THE ARTS' 2014 OC Marathon The OC Marathon is cn May 4, 2014. 8cok ncwr and stay the night in a participating Costa Mesa hotel and get FREE shuttle serviee to and from the race. Scott's Wedding Open house Costa b-icsa 55 Tavern+ Howl $#11m1�ry, M1�ucN {dl k • 12- ppm Enjoyappet¢ers and champagne while The trendy new howling alleyapens. you mingle with 00s top wedding tonight at The TriangIE! vendors. HOME I At 0001 U5 I PRESS BOOM I CONTACT US I S11E MAP I M�MNGS & EV�MTS COSTA MESA CVB ANNUAL REPORT 39 The Bureau used print advertisements to showcase the city of Costa Mesa as a leisure destination to travelers meeting our target demographics. The ads were geo-targeted to California, the Pacific Northwest and Southwest states. The advertisements focused on the city as a warm -weather destination, highlighting shopping, dining and theater experiences. Print advertisements received over 2.5 million impressions. Media Outlets REALSIMPLE yes, walking wo.4 PLAYBILL Print Creative ...>..C_F .%V....,.�.......�.._, COIAMESA VISIT TRAVE 0STAMISA.COMMMO - v_ 40 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 41 V The Bureau continued the successful 50 Reasons to Stay online tactical campaign to drive overnight stays to Costa Mesa. Online banner advertisements and specialized email blasts featured this gift card offer, with a call to action driving online visitors to a landing page on Travel CostaMesa.com. The campaign targeted leisure travelers, including the LGBT market, in California, Arizona, Nevada, Oregon and Washington. The campaign ran during the summer and holiday timeframes. Banner ads, radio, billboards, in -elevator video, email and print were used to promote this package. Over 2,600 room nights were booked with this promotion. Media Outlets 100HIS AdRolb Vizona. F BayArmIVe S raup Expedia tripad i ar� azerttral Palm prings Lik HrdiTM Fma . r��npRh jFRBjrX Go(._),S1ie AdVordsUng ,ids rL4 a *CBS capthe T AGANNEYIr.UHFa14Y OUTDOOR COSTA MESA CVB ANNUAL REPORT 43 Creative Fa+.�o�1�Fravei + #ir r G i wr wr r x..wr fift- ay � o om y �iucw a.ur.e •] M�nri -- � W..r rte. roar �4c■ru w1�rr�r I i .�4 Creative 44 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 45 Highlighted successes as a result of attending the IPW tradeshow in 2013 were: • $20k in booked room night revenue • 6 -page spread in Food and Travel, Mexico, highlighting the City of the ArtsT" as a destination to the discerning Mexican luxury traveler COSTA MESA Quality is Tntr.rnatinnal T)"tination In an initiative to expand marketing efforts to the Canadian marketplace, the Bureau partnered with John Wayne Airport, Orange County (JWA) and South Coast Plaza to launch an online campaign targeted to Vancouver and the greater British Columbia area in the spring of 2014. The campaign landing page www.traveIcostamesa.com/freegetaway launched in February 2014 and was developed in both English and Mandarin. The Bureau targeted Vancouver not only for its nonstop flights to JWA, but also because the area has one of the largest populations of Chinese residents in Canada. We chose to place a print campaign in Sing Tao Daily because it is the largest and best-known Chinese language newspaper in Vancouver. The online and print advertisements showcased a sweepstakes offer to win a trip to Costa Mesa. The package includes a $5,000 shopping spree at South Coast Plaza, accommodations, dining, and round-trip airfare to JWA. Press releases were issued from the Bureau and JWA to key media and bloggers. Targeted ads with Facebook and Twitter will continue through May. Media Outlets 0-ON19 ra Expedia- SING 100 00ILY Wk,, I- 6..k mks. 0 o tripadvisorm NATIONAL*POST THEV"COUVERSUN Vancouver The Province - magazine 46 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 47 Creative English Version - i 4 COSTA ME51� c, Ty or "m A. • ,STAY �� SAT _ PLAY Hotel Peals Interactive Map Photos Videos [clog ® Share • 0 M O WINA500 SHOPPING SPREE + Ra u W ovq Ia AIR + 3-M iG IATs ACCO MMp OATION + Much. MU C H M O RE It— � Free Get Away ENTER FOR A CHANCE TO WIN A TRULY ONE -OF -A -KIND, ALL INCLUSIVE TRIP .0 SUNNY COS.A MESA, CALIFORNIA oil &A I PLUS • Roundtrip airFare for two from Vancouver (YVR) to Orange County's john Wayne Airport r • Y (SNA on Westlet 1 hour appointment wRh a 3 -nights accommodation at South CoastPlaza Stylist the AAA Four-Olamond Aven ue of t he Arts Wyndham + En Iran ce to the ACCESS VIP Hotel, including Su Re Featuring a del icaled complimentary hreakfast at - ierg e' complim en Lary the hotels Si a Trumpet refreshments, package restaurant check. Wi-Fi, and more 2 tickets to ashow at 0?STA MESA + Cpm p lim en Lary valet p a, kin g Segerstrom Center for the ,,,,,, Arts, based on shows + GIFt hag including the VIP shed ule and availability Costa Mesa offers —Itl- Passport,5w[h Coast Plaza's 5300 gn card ford in ner at lass fashion at South Coast Plaza( a palette oF—d- exdusive offers booklet, and Mast. Steakhouse ng P—l. mantes at Leather Luggage Tag S100 giR card fore@her Sepers Tom Centerforthe A xqu site din ing and .. breakfast, lunch, or din ner at ndless relaxat wn at an Old Vine Cafe tionaI selection of hotels. The Crty of the Arts"" • SHO certi ate for lunch with sets the stag fvr the .in pairings OR SSSO for ltimate So lhern Calftm is dinner with wine at a�reat—centrally kxated pairings t minutes From beaches, Taco Maria Oh a ge �la td, sort and Wayne Airport. SS Mandarin Version 000 At 02111MERM11Eti#ENMYORENCOSTA MESk CALIFORKLA r. l � uaw. tti<� rn■*■ • Mw��w C� t.n. •>,ra�r L sr■ TTM • .�. 66u�ryr �y,e ' 4 .�ii•�F y;Yr i 4 ra,T yK--,A t•urriu irrullrt ws.�a. re.rwa f Creative COSTA MESA LITE OF 731E I.RT5- 1! - t 4 RgAil 111148016XAP lmil tl adnr.OdnlF r.a�Y l eta -■r■-rceu s#r�4s •lR �r9Oi -■#� Wil rctwFt•wwrar r■■■■ rtrlall COST, MESA CPTY Ot TH1 i1111tl' a P61 Costa Mesa, CA uTrdvelCostaMesa Feb 27 To our Canadian friends in SBC - win a FREE trip to lrCostaMesa+a $5000 SouthCoastPlaaa shopping spree 1LCostaMesa5000 owi.1ilu4vG4 Expand *k Reply t:3 Retweet * Fa4flrlte ••-Aare 48 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 49 Creative TIVAOUVERSUN 'nurtJ� l...f■..Il.».... ICr-rC crdc r., V]LLLrLLLLL.. _ _ h �� .... X5000 �Xmm M'm F.a7r Asa .YLP ILS xal.sallo aa.. �;.T; onlLr Y'•i � : 9ral zw- 3R1' /F� VJlI•S � �w. 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J._arro .w�♦aa rrr+Lo-wr#+ar ar 17� .Q -r .`_ _ .lrX.L ir.LT}rr-rte r r.alLr�W+.r .sr.-� _ .... •• ._ � � ,< SIH —' ICr-rC crdc x fl - h �� rr'!l'ra ae,•r r zw- r .Lar I- rarara-wn ,. .+ra -- -awai all .. :.+ter■■ WOMEN ' TJ R. 1Y■ �� -- L.. - aaual aas'ra..e,Et1rE � 1 -�!i' Ri1P JFA - t �}+4'xiJx SIr coslAxrxi a P ra ■x pit}■ Tepma■ h■■i wh Comm Nara L• � i Yf.w IML .- L NO John Wayne Airport, Orange County - Marketing & Public Relations 7-a I NEWS ROOM ktrt mv' F NEWS RELEASES ? ►..V xl GPxr E Sct�it. ar.1�.T,.rL i'Lveh k7, gyp.-< E Mae.. G,.el WIN IMMj.•M1MU'aVk TMV YOR TWO VM JL WOW %NWAENG SPREE: E E'r' ax Jahn Wavm Ajfp ''r mows geic M Co& mtbLa a*kderr m WP r 4raVe Ca%w p > r...q'l #ATJTA JIdfJ4 J31f. - ]eM Wayrr! AJ -p1 r Pa+r ddLa Co1ca Hem Carle:ea'oe d V.11cur XIL•._.-4 PLOA, So- 1-L1. ar.larM1 Sglya'n GLT rrr.deL. F -Lr r {pr . pLyrtn'ILa wi.• wr wll . 4rLLN3,,a v -y Or0'yC 27G1La4Y. Ern.*} —11 ba 4o tWq want M4y T. 74A! Yrgr1 ri!!.t9r"!.rrir"S7l.ii'.n.:'1!'TSSSi!'.y■'J ■l a'4ar .�Y ..w I,..r... w.r.... SHOPPING SPREE a'. fLL 'Ka'aJR! .'�G4JTx¢■N rr.JLpa_.L � . -..r . [3t'rfJl tl7 N+H hf MYAiahylJCarLTehl�lY.1' �'Llr. ■ . john Wayne Airport. Orange County Is an Factbwk. T. innrsr:l viih John b1'q.na 141rygrl i}vr.yr +A'."Ir. }L]n Lc Ear r.a haA k.d.S. john Wayne Airport. Orange Cown,w !x,■ly Lr. JrSn .� . .. I..'.L.LL ArraR^.' tLo.Yr•.r..mGr■.tiLirorU4-1 IWrt%MI MiW+..o-rga fynrfyi onJxc. ��tp,. P w qay M � .',..� t�!.r...L.. l R 12.$36 M161 S+abrL i.pa *h M-r+S[v'I �nm %w rj • ; - 50 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 51 _ V #r A 4 .'a A, It 2Q1 ht1lf V10ii CL0ta_ M t_ ail 16 t� OF IJ The Bureau continues to be a sponsor of the OC Marathon, an annual Orange County event with over 14,000 participants. All 10 of our hotels host runners overnight for this marathon. Within the last three years, more than 1,600 room nights were booked as a result of the race. In 2014, the Bureau will offer complimentary shuttle transportation to and from the race for those guests spending the night in our partner hotels. This will be the third year that the Bureau has offered this shuttle service. Tht! Costa Mesa Conference and Visitor Bureau is Pleased to provide comp!lrrtentary rare day shuttles" Lo and from the tate for participants with confirmed reservation, hookers through this website, anty at a Costa Mesa Hotel listed below. ofXCI1SIVFOFFERFORPARTICIPATING The Costa Mesa Hotels will provide wrist bands to, COSTA MESA HOTELS ONLY shuttle rransportaTion for up to 2 guest; per booked roam Shuttle schedule will be provided upon cneck in - There will be ONE departure time to the start line of each race, There will be se%v(al pick up times from the finlsh line of the race back to your hotel. To reserve your spot on the shuttle you must: a) First, reserve a room at a participating CIC Marathon Costa RM hotel fisted below and b) complete the shuttle sign-up form no later than April 2S, 2614. IF you do not complete the shuttle sign-up form, you will not receive a wrist band for shuttle transportation and you will need to make your own Arrangements. Click Here to Take Survey Hi Looking for a place to stay during our 10th Anniversary Event weekend? the OC Marathon has partnered with preferred event hotels In Newport Beach and Costa Mesa hotels to offer a Special Rate for those requesting the "OC Marathon" room block. This is an opportunity be welcomed as a marathon guest, enjoy amenities tailored specifically to your needs during the OC Marathon weekend and to stay with fellow runners. Make sure you mention OC MARATHON 2014 when you rewire your room. Official Headquarter Hotels Hilton Orange County/Costa Mesa 'Official Finish Linc Hoter Comphmertary, a -r conditioned roach shutfle ser,. start and back from the finish. Rates starting at $1 l4.00S1n0,uJQbl. Start Lone' 5.90 miles 114n4sh tine, 1.85 M+ks Mention '0CMARATH0N 2014' for b esT P"cing: 3w W00 street Costa Me%A. CA. SOO.A45-8667 COSTA MESA CVB ANNUAL REPORT 53 fi TI f� The City of the Arts" showcased the marketing pillar, the Art of Dining, through Costa Mesa Restaurant Week" (CMRW). A total of 40 restaurants participated in CMRW 2013. The kickoff party was at Noguchi Garden, and Orange Coast Magazine was the media sponsor. This private event raised over $18,000 for Someone Cares Soup Kitchen. CMRW was advertised through various mediums such as print ads, buses and bus stop ads, online, email blasts and social media. COSTA MESA 11:1N RESTAURANT WEEK August 16-23. 2013 Crgvy spiucGiul IUnc r1 unu uinrrer mcity viwrs at top Costa Mesa restaurants tV 4 T CostaM eso Restaura ntweek.org COSTA MESA H Ito 110' =,i : .,i . 5,•EE� August 16- 23. 201 COSTA MESA CVB ANNUAL REPORT 55 In 2011, the Bureau purchased the Costa Mesa sponsorship page on TripAdvisor. Users who search for Costa Mesa are directed to our destination page. The sponsorship page includes information about the city, as well as photos and links to Travel Costa Mesa.com. We continue to own and maintain our page. Geo -targeted online banners ran for the 50 Reasons to Stay campaign and the Canada sweepstakes campaign throughout the year. �tf�ildV}I4! Co•vtr+urara.• )" LOG" a um - K - ].q ART • -•rt we FsFNT, } T : _, r C�,1 Nw_ Costa Mesa Vacations Top-rated hotels in Costa Mesa EGO Tr wt cost, MO" _. vait tv wobsdv a 19arC us 4^ maal daarsosa su MUM pser 7rwrt Cart AMsa Sa•c:POWal ar Cstrn Upp W m 3 3 Q% ors =idles J liCii iC/ M ..� ✓.MIM L � A14 HoWs Beat Vow �,�.L 111 I B�,slr.w. Family / !sA �r� Cr••n Mae: -.x Vacation rentals from S1451night Thr WwJ +"sy to atsr r, Coats Ma" VM 34 m U k. VW n to sun to "&W aw 1W yau. 6" au O044 U06 -M notal. . Top-rated restaurants and attractions Restaivarns harsGtlpx 100%a a 6Marhouaa •Com Mesa LYY "M. 1%f[{. n.a Orinos County Pab.�k� Artr �wnlr ww .•a f1r. �� IY[ye Japs"" RMtMMrha l b" Lnarnnl Irm- � rl.OMN ®iYarsye 06d VIM Cob Aans na•„�rRa bc..�.o al l9 �:•r,'m Travel Costa Mesa: Events way - SaCo Farmrra' Man[K Seca Calo"" {t•L.MI C Iff Owlw Fwh�irq IoeaJ tam assn Funs rd rr�� eaw A7rrty, hisah Wnp.ds, Irvah �...,wrL end Pwnry ♦�a4�aa.• THE ART OF THE WEEKEND COSTAMESA Costa Rosa weather ..��nn1i�1• Google AdWords & Bing/Yahoo Ads SEO has seen a significant increase in figures compared to the same period last fiscal year. We achieved approximately four times the number of clicks this year as compared to last year, and the number of impressions increased by over two million. The average click -through rate nearly tripled, while the average cost per click decreased. Several SEO campaigns include: • 50 Reasons to Stay tactical campaigns • Costa Mesa Restaurant Week campaign • Costa Mesa hotel stays during marathons — OC Marathon and Surf City Marathon • Canada Sweepstakes campaign • General branding campaign 3 NIGHTS ACCOMMODATON ItJ WINCOSTA MESASOUTHE Costa Mesa, CA i� 1� Concerts, gallerys, amazing exhibitions. Learn More! n r-u:sA, �y.r •t �.�,Kr Learn Mora COSTA MCSq CALIFORNIrA 56 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 57 The Bureau continues to seek new PR opportunities in an effort to share newsworthy content about Costa Mesa. Examples of some of the press releases developed are: • Avenue of the Arts Wyndham Hotel Awarded Coveted AAA Four -Diamond Award • Costa Mesa Hosts China FAM Trip • Canada Co -Op Sweepstakes • Costa Mesa Welcomes New Marketing Manager In May, we will participate in the KJZZ Travel & Adventure Expo in Phoenix and Visit California's San Francisco Media Event. These events allow us the opportunity to reach qualified, targeted consumers as well as media professionals to expand our media database. C91.5 r KJZZCCK Ir 0_)S'7A MESA . err c*TIRE a■I L- SLAY SHOP E A!.M,_ IL H. PRESS RELEASES 11 7rwwll• d9MM.4w T" M" a"a,Ti-1 i�w r" m Gw W9 or w wtl Y W,.'r 4>•.ru;%c ^9+Jr.AM, a'JA &P ' -":q +Ql. LYJ:35 411'Jai•5+O r8_1 mels. W:a l{`R. Do" llVrm r =e>0.+ t8e"f +res+, we, -caw ww +wsrr. wJ.+te• 4srrr a,y+.s v r.rt rr,1 rr.'a.r..rr wSnr ar.r¢'+1 r.m,m .0 rta�r .�_aJJ.I,]Qy+a .i1�•, %CllI F�eSY rQrl 043?+ -1 •TY• MWCIJl 10 edA,Vr GLEN.. aLalrrlr p&.fj,.n 15 ULii -'.5v frxra try,rl. � aYFfrrery rwh iw A ENUE MR ]Lbccilt Rr1_J'J• Ar[w Le a TJ.e arts rfTMMl.r. 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X14 M1 a.4Jlr lyl tw.rY uft.4 rrY rsr,✓r. rW Ja1ry �r1M IY.d-•. wa-... F ft LISP YW'.'Jr9,"".••. 1Y►9yM b.LRYd r•NG N Irn-+a wW rr+ t i4Crri PCPr'+r a,�.4an�I,*. r te +»,1 t P -W efr.4 rase iY.11Y�.4 s 4aYi `u I� MiMrMds r.YJ.•w Mr► See. •-h.ril.+rtrr,rl Yly California Shays: C vaYJr.Vraa mmpl , C`hiL.rr,r 1"r Crr r wr F'cr>t afrrarimJr 11 d M1 FO .x.Jlfi.rrrwrYM.r.r irrw..�.n +K.�r+rr � n �� •wrrL ,.F.r,. ,.Mr�/'t r� s.rlY Ya>Wi sYltir.lY►m.r-A�rr�Y.r^rtrd .rn�.rY. � riruV-wryi.5'�IYIT++ar�.rioY.LW.r. I+�ru Fc.0 rrrtl e r.rrr:.a �.� r... � aW .aro •ee �� 1JaE,cJ.'/a'YY�'lYmv . a+rY �r'�rti,Yr.f rm �rrr.'r•uor.�-r.�F.f ��r.Y-r r.r.�, rr•-rte.+r s.1F r �. �rl��.'w•�•�w I,+Msi4 �..r I�..�.�r..rr. � yL� r+.r. HY lYsr ra o.orm.� .wrYW �r.� 47lrQDr1.. P. - $M_40" MWJJl}Ne •rtsaLL1} TRAVEL .YSR iorri: y...._.. -,ter- w..a � wr .»�-. �.�W�rr r.•.r., ..�-. ra,.r. TraveI deals: Costa Mesa, San JiDSe, Northern Lights • Jp Ll =,,r 0-&. h"LE,%r1l-Aill11kw¢a.m.1d hr.iiWo i!r .t-1AOWU.Y," Tq4 li.kelff 046W pwbr rt tlw{gs..1{ iMETYwrffftds Ws OLslat Il A aoxLar NM 4F '. w it F..a oWT"a-Fa * 6fteY Mtkr vlr.F. M" rel tl S" a►rrlr.I.rr W. p. Ltw rads N4 -i-n brag♦ .14 wO ik.%brft, rwMrnilgp�l lnTi.lrr" .. Ilur..� -1 16 . H 1 at 1-klq Tg xK u.. Irpmll AI 17. X33 PIAR4- w,. Yom, Vann w -eai.�a,r.,nrr• m'.1 n LLa.IA& LLLM\'Ls IIwnL.AcabxYLulra• L Frymrgr.4 � rl�- f r.n#FFa.ILf �rrrrlrs r._ts 4.,r� lar.r, r.r�rr►rrurtktlr...orro,wxl .+a4 rJ.vr By Randy Economy Master Chef Carlos Garcia has been on a roll lately, and is gWddy establishing himself as a tally gifted "culinary magicians" here in Southern California. ® Garcia, a native of the Pico Rivera area, has once again created dining KuppuN Ara magic in the exclusive enclave of Costa Mesa by revamping "The Silver Trumpet" Restaurant, located in the always tong Wyndam Hotel located at 3:3qu Avenue of the Arts, near the Segerstrom Center for the Performing Am. o.e4..e k.bi i •,p14� Before cable networks like the Bravo network eves dreamed up "rop Chef," Chef Carlos Garcia was in the trenches teaching the craft to local high jmrBYYwIJ..Y1 school students in the Cerritos, Artesia, Norwalk area through a culinary arts program be created when he oversaw "Grille 91" at the Cerritos Sheraton Hotel which coincidentally is located just feet away from another upscale + performing arts center. C1 Garcia's has the flare and dedcatton in attracting and training some of the hest and brightest new chefs, and staff members surrounding him at all times. ■ I Fa 58 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 59 — A. Wq pkn of 'In,••.. n.+M1n.r,jr�� the ..Lrrr,lrrrc i • .. H.mrq ,L ra....narly, J. rnarl,m. L'nrw rrlrry, th. rwrt ara.rr.n.,. 11F1 1. nn mon rA,- ble mpnrdurinR C.. LmJ�••+u=•.n.,im.we FLEWS MEDIA GROUP .. k. Inr.I 1•><p•'r� 1f u . rcrurA; ennul,4 to P.F�..�e•rr w:iF ......w ira r lr.l .a .'pnifironl reform .rM Lr.e ,nun eoFlQJ r•L•el'•[a'✓•,..Rtip41 �uFp^n�r' r4a.pr. L38OOEf0..r..a La. •r'eb. � YYwRIA QR=Q e.l �! E8� !lam 1!!I!!1 fLLafl@ YrR DINING. Master Chef Carlos Garda Hits High Note in Revamping'Silver Trumpet' in Costa Mesa Ayres Suites P0F1Be Mesa gyres n otels.comlN ewpart Bea[ h 0 Enjoy a Boutique Luxury Hizel w1 Free are dt t. 9aok Now & Sore! • ®+2-0 Wheat 7' g,rl 2 .x.Jlfi.rrrwrYM.r.r irrw..�.n +K.�r+rr � n �� •wrrL ,.F.r,. ,.Mr�/'t r� s.rlY Ya>Wi sYltir.lY►m.r-A�rr�Y.r^rtrd .rn�.rY. � riruV-wryi.5'�IYIT++ar�.rioY.LW.r. I+�ru Fc.0 rrrtl e r.rrr:.a �.� r... � aW .aro •ee �� 1JaE,cJ.'/a'YY�'lYmv . a+rY �r'�rti,Yr.f rm �rrr.'r•uor.�-r.�F.f ��r.Y-r r.r.�, rr•-rte.+r s.1F r �. �rl��.'w•�•�w I,+Msi4 �..r I�..�.�r..rr. � yL� r+.r. HY lYsr ra o.orm.� .wrYW �r.� 47lrQDr1.. P. - $M_40" MWJJl}Ne •rtsaLL1} TRAVEL .YSR iorri: y...._.. -,ter- w..a � wr .»�-. �.�W�rr r.•.r., ..�-. ra,.r. TraveI deals: Costa Mesa, San JiDSe, Northern Lights • Jp Ll =,,r 0-&. h"LE,%r1l-Aill11kw¢a.m.1d hr.iiWo i!r .t-1AOWU.Y," Tq4 li.kelff 046W pwbr rt tlw{gs..1{ iMETYwrffftds Ws OLslat Il A aoxLar NM 4F '. w it F..a oWT"a-Fa * 6fteY Mtkr vlr.F. M" rel tl S" a►rrlr.I.rr W. p. Ltw rads N4 -i-n brag♦ .14 wO ik.%brft, rwMrnilgp�l lnTi.lrr" .. Ilur..� -1 16 . H 1 at 1-klq Tg xK u.. Irpmll AI 17. X33 PIAR4- w,. Yom, Vann w -eai.�a,r.,nrr• m'.1 n LLa.IA& LLLM\'Ls IIwnL.AcabxYLulra• L Frymrgr.4 � rl�- f r.n#FFa.ILf �rrrrlrs r._ts 4.,r� lar.r, r.r�rr►rrurtktlr...orro,wxl .+a4 rJ.vr By Randy Economy Master Chef Carlos Garcia has been on a roll lately, and is gWddy establishing himself as a tally gifted "culinary magicians" here in Southern California. ® Garcia, a native of the Pico Rivera area, has once again created dining KuppuN Ara magic in the exclusive enclave of Costa Mesa by revamping "The Silver Trumpet" Restaurant, located in the always tong Wyndam Hotel located at 3:3qu Avenue of the Arts, near the Segerstrom Center for the Performing Am. o.e4..e k.bi i •,p14� Before cable networks like the Bravo network eves dreamed up "rop Chef," Chef Carlos Garcia was in the trenches teaching the craft to local high jmrBYYwIJ..Y1 school students in the Cerritos, Artesia, Norwalk area through a culinary arts program be created when he oversaw "Grille 91" at the Cerritos Sheraton Hotel which coincidentally is located just feet away from another upscale + performing arts center. C1 Garcia's has the flare and dedcatton in attracting and training some of the hest and brightest new chefs, and staff members surrounding him at all times. ■ I Fa 58 COSTA MESA CVB ANNUAL REPORT COSTA MESA CVB ANNUAL REPORT 59 t a Al�v Ar 'e AM& b6 � Ln -h�m. _ A I " Y ` I 6L a Al�v Ar 'e AM& b6 Attachment 2 Bylaws of Costa Mesa Conference & Visitor Bureau A California Nonprofit Mutual Benefit Corporation ARTICLE I NAME AND PRINCIPAL OFFICE The name of the corporation is Costa Mesa Conference & Visitor Bureau ("CVB"). The principal office for the transaction of the affairs and activities of this corporation shall be located in the City of Costa Mesa. The Board of Directors may change the location of the principal office. ARTICLE II PURPOSE The purpose of this corporation shall be to promote tourism for the general benefit of businesses, hotels and motels in the City of Costa Mesa, California. ARTICLE III LIMITATIONS Section 1: Assets. This Corporation is not organized, nor shall it be operated, for pecuniary gain or profit, and it does not contemplate the distribution of gains, profits or dividends of its members and is organized solely for nonprofit purposes. No part of the profits or net income of this Corporation shall ever inure to the benefit of any Director, officer or member thereof, or to any individual. Upon the dissolution or winding up of the Corporation, after payment of, or provision for payment of, all debts and liabilities of this Corporation, the remaining assets shall be distributed to a nonprofit fund, foundation or corporation which has been formed to provide benefits or services for Costa Mesa tourism businesses and which has established its tax-exempt status under §501(c) of the Internal Revenue Code. If no such corporation as described above is in existence at the time of dissolution, then the remaining assets shall be distributed to a nonprofit fund, foundation or corporation, which has established its tax-exempt status under §501(c) of the Internal Revenue Code. Section 2: Construction. Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the California Nonprofit Mutual Benefit Corporation Law shall govern the construction of these Bylaws. Without limiting the generality of the preceding sentence, the masculine gender includes feminine and neuter, the singular includes the plural, the plural includes the singular, and the term "person" includes both a legal entity and a natural person. Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 ARTICLE IV MEMBERS Section 1: Definitions. This corporation shall have no members within the meaning of the California Nonprofit Corporation Law, pursuant to Corporation Code §7332(a) as may be amended or re -codified from time to time. As used herein, the term members shall refer to Directors. The Board may, in its discretion, admit individuals to one or more classes of nonvoting members; the class or classes shall have such rights and obligations as the board finds appropriate. ARTICLE V DIRECTORS Section 1: Number. The corporation shall have no less than nine (9) and no more than fifteen (15) Directors. The precise number of Directors for any given year shall be set by resolution of the board and equal to the number of businesses assessed in the Costa Mesa Tourism & Promotion Business Improvement Area ("BIA") plus two. Each Director shall have one vote. A reduction in the number of Directors shall not result in removal of any Director before his or her term of office expires. Section 2: Tenure. Each Director of the corporation shall serve for a term of five (5) years. Section 3: Criteria. The Board shall be composed as follows: A. Two Directors shall be representatives of the City of Costa Mesa: 1. One shall be a city employee designated by the city's chief executive officer; and 2. One shall be a city council member. If the council member declines the appointment, the representative shall instead be a city employee designated by the city's chief executive officer. B. The remaining directors shall be the general managers of each lodging business assessed by the BIA. C. Directors shall not be allowed to designate alternates. Section 4: Annual Election. Directors shall be elected by the Board. Election of Directors shall take place at the annual meeting of the corporation. Procedures for election of Directors shall be determined by the Board of Directors. Section 5: Powers. Subject to the provisions and limitations of the California Nonprofit Mutual Benefit Corporation law, the provisions of the BIA, and any other applicable laws, and subject to any limitations of the Articles of Incorporation and these Bylaws, the corporation's activities and affairs shall be managed, and all corporate powers shall be exercised by, or under the direction of, the Board. 2 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 Section 6: Specific Powers. Without prejudice to the general powers set forth in Article V, Section 6 of these Bylaws, but subject to the same limitations, the Board shall have the power to do the following: A. Appoint and remove, at the pleasure of the Board, all corporate officers, agents, and employees; prescribe powers and duties for them as are consistent with the law, the Articles of Incorporation, and these Bylaws; fix their compensation; and require from them security for faithful service. B. Change the principal office or the principal business office in the City of Costa Mesa from one location to another; cause the corporation to be qualified to conduct its activities in any other state, territory, dependency, or country; conduct its activities in or outside California; and designate a place in the City of Costa Mesa for holding any meeting of members. C. Borrow money and incur indebtedness on the corporation's behalf and cause to be executed and delivered for the corporation's purposes, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations, and other evidence of debt and securities. Section 7: Occurrence of Vacancies. A vacancy or vacancies on the Board shall occur in the event of- A. £ A. The death, removal or resignation of any Director; or B. The declaration by resolution of the Board of a vacancy in the office of a Director who has been convicted of a felony, declared of unsound mind by a court order, or found by final order or judgment of any court to have breached a duty arising under Corporations Code §7238, the BIA, or other applicable laws; or C. An increase in the authorized number of Directors; or D. A Board member no longer being authorized to represent the business or City they were selected to represent; or E. The failure of an election to elect the number of Directors required to be elected in that election. Section 8: Filling Vacancies. Vacancies on the Board may be filled by approval of the Board, or if the number of Directors then in office is less than a quorum, by either: A. The unanimous written consent of the Directors then in office; or B. The affirmative vote of a majority of Directors then in office at a meeting held according to the notice provisions of these Bylaws and the Ralph M. Brown Act; or C. A sole remaining Director. Section 9: Resignation of Directors. Any Director may resign by giving written notice to the chair of the Board, if any, or to the president or the secretary of the Board. The resignation shall be effective when the notice is given unless it specifies a later time for the resignation to become effective. If a Directors' resignation is effective at a later time, the Board may elect a successor to take office as of the date when the resignation becomes effective. Section 10: Removal of Directors. Any Director may be removed, with cause, by the vote of the majority of the members of the entire Board of Directors at a special meeting called for that 3 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 purpose, or at a regular meeting, provided that notice of that meeting and of the removal question are given as provided in Article VI. Section 11: Compensation and Reimbursement. Directors shall serve as volunteers and shall not be compensated. Directors may be reimbursed for expenses, as the Board may establish by resolution to be just and reasonable to the corporation at the time that the resolution is adopted. Section 12: Advisors. The Board may, in its discretion, invite individuals to serve as Advisors to the Board. Advisors shall be invited to Board meetings in the same manner as are Directors, but shall not be Directors. ARTICLE VI MEETINGS Section 1: Annual Meeting. The annual meeting of the corporation shall be held once per year, at such time and on such date as the Board may fix from time to time. At the annual meeting, Directors shall be elected and other business may be transacted, subject to the provisions of these Bylaws. Notice of the annual meeting shall be posted at least seventy-two hours prior to the meeting in a publicly accessible location, in accordance with the requirements of the Ralph M. Brown Act. Each notice shall state the general business to be transacted, and the day, time and place of the meeting. Section 2: Board of Directors Regular Meetings. The Board shall meet not less than every - other -month on dates agreed upon by the Board. Notice of regular meetings shall be posted at least seventy-two hours prior to the meeting in a publicly accessible location, in accordance with the requirements of the Ralph M. Brown Act. Each such notice shall state the general business to be transacted, and the day, time and place of the meeting. Business may be transacted at any regular meeting of the Board in accordance with the requirements of the Ralph M. Brown Act. Section 3: Board of Directors Special Meetings. Special meetings of the Board may be called by the Chairperson of the Board or any three Directors. Notice of special meetings shall be given to each Director stating the time, place, and business to be discussed at least twenty-four hours before the time of the meeting specified in the notice. Notice shall be delivered to the Board personally or by any other means pursuant to Government Code §54956. Notice shall also be posted at least twenty-four hours prior to the meeting in a publicly accessible location in accordance with the requirements of the Ralph M. Brown Act. Section 4: Notice of Meetings. Notice of all meetings will be given in accordance with the provisions of the Ralph M. Brown Act, Government Code §54950 et. seq. The noticing provisions in these Bylaws shall be subject to any amendments of the Ralph M. Brown Act. Section 5: Place of Meetings. All meetings of the corporation shall be held at such location in the City of Costa Mesa as may be determined by the Board. Section 6: Telephonic Appearance. Teleconferencing, as authorized by §54953 of the Ralph M. Brown Act may be used for all purposes in connection with meetings. All votes taken during a teleconferenced meeting shall be by roll call. If teleconferencing is used, the Board shall post 4 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 the agenda at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the Board. Each teleconference location shall be identified in the notice and agenda of the meeting, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the Board shall participate from locations with the boundaries of the City of Costa Mesa. The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to §54954.3 at each teleconference location. Section 7: Quorum. At any meeting of the Board, a majority of the members of the Board shall constitute a quorum. If less than a quorum is present at a meeting, a majority of the Directors present may adjourn the meeting from time to time without further notice other than announcement at the meeting, until a quorum shall be present. There shall be no voting by proxies or voting by absentia. ARTICLE VII OFFICERS Section 1: Offices Held. The officers of the corporation shall be a Chairperson, a Vice President, a Secretary, a Treasurer, and such other officers as the Board may from time to time designate. All officers shall be members in good standing of the Board. Any number of offices may be held by the same person. The officers of the Corporation shall also serve on the executive committee of the corporation. Section 2: Election of Officers. The officers of this corporation shall be chosen every other year by the Board and shall serve at the pleasure of the Board, subject to the rights of any officer under any employment contract. Section 3: Term. All officers shall be elected for a term of two (2) years or until their successors are elected and qualified. Section 4: Removal of Officers. Without prejudice to the rights of any officer under an employment contract, the Board may remove any officer with or without cause. Section 5: Resignation of Officers. Any officer may resign at any time by giving written notice to the Board. The resignation shall take effect on the date the notice is received or at any later time specified in the notice. Unless otherwise specified in the notice, the resignation need not be accepted to be effective. Any resignation shall be without prejudice to any rights of the corporation under any contract to which the officer is a party. Section 6: Vacancies in Office. A vacancy in any office because of death, resignation, removal, disqualification, or any other cause shall be filled in the manner prescribed by these Bylaws for normal appointments to that office. However, vacancies need not be filled on an annual basis. Section 7: Responsibilities of Chairperson. The Chairperson shall preside at all meetings and have such other powers and duties as the Board or these Bylaws may require. 5 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 Section 8: Responsibilities of Vice President. The Vice President shall assume the duties of the Chairperson in his or her absence and shall have such other powers and duties as the Board or these Bylaws may require. Section 8: Responsibilities of Secretary. The Secretary of the corporation shall have the following responsibilities: A. The Secretary shall keep or cause to be kept, at the corporation's principal office or such other place as the Board may direct, a book of minutes of all meetings, proceedings, and actions of the Board, of committees of the Board, and of any members' meetings. The minutes of meetings shall include the time and place that the meeting was held; whether the meeting was annual, general, or special, and if special, how authorized; the notice given; and the names of persons present at Board and committee meetings. B. The Secretary shall keep or cause to be kept, at the corporation's principal office, a copy of the Articles of Incorporation and Bylaws, as amended to date. C. The Secretary shall keep or cause to be kept, at the corporation's principal office or at a place determined by resolution of the Board, a record of the corporation's members, showing each member's name, address, business represented, and class of membership. D. The Secretary shall give, or cause to be given, notice of all meetings that these Bylaws require to be given. The Secretary shall keep the corporate seal, if any, in safe custody and shall have such other powers and perform such other duties as the Board or the Bylaws may require. E. The Secretary shall maintain, or cause to be maintained, the corporation's records in accordance with the requirements of the California Public Records Act, Government Code §6250 et seq. Section 9: Responsibilities of Treasurer. The Treasurer of the corporation shall have the following responsibilities: A. The Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and correct books and accounts of the corporation's properties and transactions. The Treasurer shall send or cause to be given to the Directors such financial statements and reports as are required to be given by law, by these Bylaws, by the BIA, or by the Board. The books of account shall be open to inspection by any Director at all reasonable times. B. The Treasurer shall deposit, or cause to be deposited, all money and other valuables in the name and to the credit of the corporation with such depositories as the Board may designate; shall disburse the corporation's funds as the Board may order; shall render to the President and the Board, when requested, an account of all transactions as Treasurer and of the financial condition of the corporation; and have such other powers and perform such other duties as the Board or these Bylaws may require. C. The Treasurer shall review monthly financial reports prepared by CVB staff. Section 10: Contracts with Directors. No Director of this corporation nor any other corporation, firm, association, or other entity in which one or more of this corporation's 6 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 Directors are Directors or have a material financial interest, shall be interested, directly or indirectly, in any contract or other transaction with this corporation unless: A. The material facts as to the transaction and such Director's interest are fully disclosed or known to the members and such contract or transaction is approved by the members in good faith, with any membership owned by any interested Director not being entitled to vote thereon; or B. The material facts regarding such Director's financial interest in such contract or transaction or regarding such common Directorship, officership, or financial interest are fully disclosed in good faith and are noted in the minutes or are known to all Board members before consideration by the Board of such contract or transaction, and such contract of transaction is authorized in good faith by a majority of the Board by a vote sufficient for that purpose without counting the vote of the interested Director. Section 11: Loans. The corporation shall not loan any money or property to, or guarantee the obligation of, any Director or officer of the corporation. The corporation may advance money to a Director or officer for reasonable business expenses, provided that the Director or officer is entitled to reimbursement. ARTICLE VIII COMMITTEES Section 1: Establishment. The Board, by resolution adopted by a majority of the Directors then in office, may create one or more committees, each consisting of two or more Directors, to serve at the pleasure of the Board. Appointments to committees of the Board shall be by majority vote of the Directors then in office. The Board may appoint one or more Directors as alternate members of such committee, who may replace any absent member at any meeting. Any such committee shall have all the authority of the Board, to the extent provided in the Board resolution, except that no committee may do the following: A. Fill vacancies on the Board or any committee of the Board; B. Fix compensation of the Directors for serving on the Board or any committee; C. Amend or repeal Bylaws or adopt new Bylaws; D. Amend or repeal any resolution of the Board that by its express terms is not so amendable or repealable; E. Create any other committees of the Board or appoint the members of committees of the Board; or F. Expend corporate funds to support a nominee for Director if more people have been nominated for Director than can be elected; or G. With respect to any assets held in charitable trust, approve any contract or transaction between this corporation and one or more of its Directors or between this corporation and an entity in which one or more of its Directors have a material financial interest, subject to the approval provisions of Corporations Code §5233(d)(3). Section 2: Executive Committee. Pursuant to Article VII of these Bylaws, the Board shall appoint two or more Directors of the corporation, including the officers, to serve as the executive committee of the Board. The executive committee, unless limited by a resolution of the Board, 7 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 shall have and may exercise all the authority of the Board in the management of the business and affairs of the corporation between meetings of the Board; provided, however, that the executive committee shall not have the authority of the Board in reference to those matters enumerated in Article VII. All actions of the executive committee shall be reported to and ratified by the Board at the next duly scheduled Board meeting. The President may call special meetings of the Executive Committee. Section 3: Meetings and Actions of Committees. Meetings and actions of committees shall be governed by, held, and taken under the provisions of these Bylaws concerning meetings and other Board actions, except that the time for general meetings of committees and calling of special meetings of committees may be set either by Board resolution, or if none, by resolution of the committee. Notice of committee meetings will be given in accordance with the provisions of the Ralph M. Brown Act. Minutes of each meeting shall be kept and shall be filed with the corporate records, and in accordance with the provisions of the California Public Records Act. The Board may adopt rules for governance of any committee as long as the rules are consistent with these Bylaws. If the Board has not adopted rules, the committee may do so. ARTICLE IX INDEMNIFICATION AND INSURANCE Section 1: Indemnification. A. To the fullest extent permitted by law, this corporation shall indemnify its Directors and officers, and may indemnify employees and other persons described in the Corporations Code, including persons formerly occupying such positions, against all expenses, judgments, fines, settlements and other amounts actually and reasonably incurred by them in connection with any "proceeding," as that term is used in the Corporations Code, and including an action by or in the right of the corporation, by reason of the fact that the person is or was a person described in the Corporations Code. "Expenses," as used in these Bylaws, shall have the same meaning as in the Corporations Code. B. On written request to the Board by any person seeking indemnification under the Corporations Code, the Board shall promptly decide under that code whether the applicable standard of conduct set forth has been met, and if so the Board shall authorize indemnification. C. To the fullest extent permitted by law and except as otherwise determined by the Board in a specific instance, expenses incurred by a person seeking indemnification under these Bylaws in defending any proceeding covered by these Bylaws shall be advanced by the corporation before final disposition of the proceeding, on receipt by the corporation of an undertaking by or on behalf of that person that the advance will be repaid unless it is ultimately found that the person is entitled to be indemnified by the corporation for those expenses. Section 2: Insurance. This corporation shall have the right, and shall use its best efforts, to purchase and maintain insurance to the full extent permitted by law on behalf of its officers, Directors, employees and other agents, to cover any liability asserted against or incurred by any 8 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 officer, Director, employee, or agent in such capacity or arising from the officer's, Director's, employee's, or agent's status as such. ARTICLE X RECORDS Section 1: Maintenance. This corporation shall keep all of the following records, either in written form or in any other form capable of being converted into clearly legible tangible form or in any combination of the two: A. Adequate and correct books and records of account; B. Minutes of the proceedings of its members, Board and committees; and C. A record of each member's name, address, and class of membership. Section 2: Inspection by Directors. Every Director shall have the absolute right, at any reasonable time, to inspect the corporation's books, records, and documents of every kind, and to inspect the physical properties of the corporation. The inspection may be made in person or by the Director's agent or attorney. The right of inspection includes the right to copy and make extracts of books, records, and documents of every kind. Section 3: Articles and Bylaws. This corporation shall keep, at its principal office, the original or a copy of the Articles of Incorporation and Bylaws, as amended to the current date, that shall be open to inspection at all reasonable times during office hours. Section 4: Annual Reports. The Secretary of the corporation shall prepare and submit, or cause to be prepared and submitted, the following annual reports. The Secretary shall keep, or cause to be kept, copies of all annual reports with the corporation's records. The two annual reports may be combined into one all-inclusive document. A. BIA Annual Report. The BIA annual report will be prepared and submitted in accordance with the provisions of Streets and Highways Code §36533. B. CVB Annual Report. The CVB annual report shall be prepared within 120 days after the end of the corporation's fiscal year. This section shall not apply if the corporation receives less than $10,000 in gross revenues or receipts during the fiscal year. The report shall contain the following information in appropriate detail: 1. A balance sheet as of the end of the fiscal year, an income statement, and statement of cashflows for the fiscal year, accompanied by an independent accountant's report, or if none, by the certificate of an authorized officer of the corporation that they were prepared without audit from the corporation's books and records; 2. A statement of the place where the names and addresses of current members are located; and 3. Any other information required by these Bylaws or the Board. Section 5: Annual Statement. As part of the annual report to all members, or as a separate document if no annual report is issued, the corporation shall annually prepare and mail, deliver or send by electronic transmission to its Directors a statement of any transaction or 9 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 indemnification of the kinds in subparagraph B below within 120 days after the end of the corporation's fiscal year. A. The statement shall include: 1. A brief description of the transaction; 2. The names of interested persons involved and their relationship to the corporation; 3. The nature of interested persons in the transaction; 4. The amount of the interested persons' interest, except that in a partnership in which such person is a partner, only the partnership interest need be stated. B. Transactions included in the statement shall be those transactions: 1. To which the corporation or its subsidiary was a party; 2. Which involved more than $50,000 or was one of a number of such transactions with the same person involving, in the aggregate, more than $50,000; and 3. In which either of the following interested persons had a direct or indirect material financial interested (a mere common Directorship is not a material financial interest): a. Any Director or officer of the corporation; b. Any holder of more than 10 percent of the voting power of the corporation. ARTICLE XI OPERATIONS AND ADMINISTRATION Section 1: Fiscal Year. The fiscal year of the corporation shall begin on July 1 and end on June 30 of each year. Section 2: President. The Board shall employ a President of the corporation. The President shall: A. Serve as the executive officer of the corporation; B. Be charged with the general supervision and management of the corporation's affairs and staff; C. Advise the Board of Directors; D. Attend all meetings of the Board and executive committee; E. Serve as an ex -officio member of all committees; F. Have the authority to counter -sign checks; and G. Act as the corporation's agent for service of process. Section 3: Funds. All funds of the corporation shall be deposited in such banks, trust companies, or other reliable depositories as the Board from time to time may determine. All checks, drafts, endorsements, notes and evidence of indebtedness of the corporation shall be signed by such officers or agents of the corporation and in such manner as the Board may determine from time to time. Endorsements for deposits to the credit of the corporation shall be made in such manner as the Board may determine from time to time. 10 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 Attachment 2 Section 4: Contracts. The Chairperson, President or any other officer or agent specifically authorized by the Board may, in the name of and on behalf of the corporation, enter into those contracts or execute and deliver those instruments that are specifically authorized by the Board. Without the express and specific authorization of the Board, no officer or agent may enter into any contract or execution or deliver any instrument in the name of or on behalf of the corporation. Section 5: Brown Act Compliance. To the extent that Government Code §54952(c) shall require the corporation to be subject to the open meeting requirements of the Ralph M. Brown Act, then the Board will comply with the provisions of Government Code §54950 through and including §54961. To the extent that any provisions of these Bylaws are inconsistent with the Ralph M. Brown Act, the provisions of said Act shall prevail. In the event the corporation does not meet the requirements of Government Code §54952(c), then the Board will not endeavor to meet the requirements of the Brown Act. ARTICLE XII AMENDMENT Except as otherwise provided herein, and subject to the power of Directors to amend or repeal the Bylaws, these Bylaws may be altered, amended or repealed and new Bylaws may be adopted by an affirmative vote of a majority of the Directors present at any regular or special meeting, a quorum being assembled, provided that written notice of such meeting, setting forth in detail the proposed revision(s) and explanation(s) therefore, be given not less than 7 days prior to such meeting. CERTIFICATE OF SECRETARY I, Robert Spoto, certify as follows: 1. I am the duly elected and acting Secretary of Costa Mesa Conference & Visitor Bureau, a California Nonprofit Mutual Benefit Corporation; 2. That these Bylaws, consisting of 11 pages, inclusive, are the Bylaws of the corporation as adopted by the Board of Directors on 2012; 3. That these Bylaws have not been amended or modified since that date. Robert Spoto, Secretary 11 Bylaws of Costa Mesa Conference & Visitor Bureau April 2012 COSTA MES/ June 6, 2014 Costa Mesa City Council 77 Fair Drive Costa Mesa, CA 92626 Dear Costa Mesa City Council Members, The Costa Mesa Conference and Visitor Bureau Board of Directors has endorsed the BLVD Hotel at 2430 Newport Boulevard to become a partner with the BIA. On June 5t", the Board voted unanimously to welcome the BLVD as a participating hotel. Ms. Jennifer Ixta, General Manager, Mr. Collin Diaz, Director of Public Relations, and Tiana Nakanishi, Director of Sales and Marketing for the BLVD Hotel gave a 15 minute presentation showcasing their renovation, amenities and informed the Board about their ownership group and desire to grow their new branded hotel here in the City of the ArtsTM, Costa Mesa. We look forward to the BLVD Hotel joining the portfolio of hotels the Bureau represents and will work closely with their team to ensure a close partnership. Warm regards, Paulette Lombardi -Fries President, Costa Mesa Conference and Visitor Bureau travel costa mesa.com Costa Mesa Conference & Visitor Bureau 1 575 Anton Blvd., Suite 880 1 Costa Mesa, California 92626 1 Ph: 714.786.8585 1 Fax: 714.668.9350 Dan, On behalf of the BLVD Hotels' family, and the BLVD Hotel in Costa Mesa, I wanted to thank you for sending us the invitation to join the CVB — BIA. Please find this letter as our statement of intent to proceed with the process. If I understand correctly, we will need to partake in the June 3rd meeting, to declare our candidacy to the current Board of Directors. I've advised my team of this and we are prepared to do so. Please let me know what, if anything, we will need to present or display at this meeting. Additionally, if there are any other elements ahead of this date that we need to complete, let me know so that I may get started on those as well. Again, please accept this letter as our intent to join the Parking & Business Improvement Area Board of Directors moving forward. Should you have any questions, comments or suggestions, please don't hesitate to reach me by email, pr(d�blvdhotels. com, or phone, 949-682-9804. Thank you, f Colin Diaz Director of Public Relations The BL D Hotel Page 1 of 1 2430 Newport Blvd., Costa Mesa, CA 92627 T: (949) 631-7840 M: (949) 682-8604 F: (949) 548-3720