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Home My WebLink AboutCity Council - 2007-57 RESOLUTION NO. 2007-57 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2007-2008 WITHIN THE HUNTINGTON BEACH HOTEL/MOTEL BUSINESS IMPROVEMENT DISTRICT WHEREAS, the California Legislature, in adopting the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code §36500 et seq.) found that cities are authorized to levy assessments on businesses in order to promote economic revitalization and tourism, create jobs, attract new businesses and prevent erosion of business districts; and The California Legislature found that cities are authorized to levy assessments on businesses which benefit from those improvements and activities; and A sizeable majority of the hotel and motel businesses within the City of Huntington Beach requested that the City Council commence proceedings under the Parking and Business Improvement Area Law of 1989 to establish a hotel and motel business benefit area within the City of Huntington Beach and to levy a special assessment to promote tourism and tourist related events; and The City Council formed a business improvement area, known as the Huntington Beach Hotel/Motel Business Improvement District (the "District"), by the passage of Ordinance No. 3569 on August 19, 2002. The time has come to continue the existence of the District for fiscal year 2007-2008 by levying assessments on those businesses that benefit from the activities; and The District's Advisory Board has prepared and filed with the City Clerk an "Annual Report/Operating Budget 2006-2007 Fiscal Year to Date" and "Proposed Budget for Fiscal Year 2007-2008" (collectively, "Annual Report"); and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. The City Council hereby approves the Annual Report filed by the Advisory Board in the City Clerk's office attached hereto as Exhibit A and incorporated herein by this reference, which includes a proposed budget for Fiscal Year 2007-2008 and a description of the improvements and activities to be provided for Fiscal Year 2007-2008. SECTION 2. To levy and collect assessments within the District area for Fiscal Year 2007-2008 in the amount of 1% on hotel and motel overnight room stays in hotels and motels listed in Exhibit B attached hereto and incorporated herein by this reference. SECTION 3: The type or types of improvements and activities proposed to be funded by the levy of assessments on businesses within the business improvement area are specified in 07-1158/13385 1 Resolution No. 2007-57 Exhibit C, attached hereto and incorporated herein by this reference. Further, the improvements, if any, to be acquired for the proposed business improvement area are specified in Exhibit C. SECTION 4. A public hearing shall be held before the City Council on October Ol, 2007 . at 6:00 p.m., or as soon thereafter as this matter maybe heard, in the Council Chambers of the City Hall, 2000 Main Street, Huntington Beach, California, at which time the Council will hear all interested persons for or against levying of the assessment, and the furnishing of specified types of improvements or activities. Protests may be made orally or in writing; but, if written, shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the particular protest. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. The City Council may waive any irregularity in the form or content of any written protest, and at the public hearing, may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing set forth above. If written protests are received by the owners of businesses within the District, which will pay 50% or more of the total assessments to be levied, no further proceedings to levy the proposed assessment shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvements or activity within the District, those types of improvements or activities shall be eliminated. SECTION 5. The City Clerk is hereby directed to provide notice of the public hearing by causing the this resolution of intention to be published once in a newspaper of general circulation at least seven days before the public hearing. SECTION 6. Further information regarding the proposed business improvement district may be obtained at the Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California 92648; telephone (714) 536-5542; or from the Huntington Beach Conference and Visitors' Bureau, 301 Main Street, Suite 208, Huntington Beach,CA 92648, (714)969-3492. SECTION 7. The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each business owner in this area within seven days after the Council's adoption of this resolution. 07-1158/13385 2 Resolution No. 2007-57 SECTION 8. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 4th day of September , 200 7 0 TED ND APPROVED: INITIATED AND APPROVED: City Administrator Director of Economic D elopment APPROVED AS TO FORM: ity Attorne -b"� 07-1 1 58/1 3385 J Resolution No. 2007-57 Exhibit "A" HUNTINGTON BEACH HOTEL/MOTEL BUSINESS IMPROVEMENT DISTRICT (Administered by the Huntington Beach Conference and Visitors Bureau) Annual Report/Operating Budget 2007=2008 Fiscal Year The Huntington Beach Conference and Visitors Bureau continued to escalate its scope of activities and effectiveness as a destination management agency during 2006/07. As the official advisory board for the Huntington Beach Hotel/Motel Business Improvement District which receives an assessment of one percent on all hotel/motel room purchases within the city that are under 30 days in duration, the following highlights/programs would not have been possible without B.I.D. funding: • Continued dramatic evolution of the www.surfcityusa.com website with a new redesign to reflect a more upscale feel that is consistent with the Bureau's signature Surf City USA@ brand identity. Introduced an on-line hotel booking engine to close sales. To capture email addresses for future communications, introduced monthly on-line contests and ongoing newsletter sign-up capabilities. • The Bureau's advertising campaign continued with placements in 2007 California Visitors Guide, 2007 Southern California-Los Vegas Tour Book(AAA), Arizona Highroads (AAA), Las Vegas Life, Westways (AAA) and Spring and Summer Vacation Guides of the Arizona RepubliclTucson Citizen. In addition, the Bureau captured a front page position in an April 29 insert of the Orange County Tourism Council (OCTC) that appeared in the Arizona Republic, Las Vegas Review, Sacramento Bee and Tucson Citizen, and participated in an OCTC cooperative ad that appeared in April's National Geographic Explorer. • Continued in house public relations efforts with the issue of press releases over the year and the biggest P.R. coup in years —the placement of cover story about Huntington Beach lifeguards in Westways July/August edition with an equivalent advertising value of$218,400. Continued involvement in the California Travel & Tourism Commission's media receptions in Los Angeles, New York and San Francisco. Hosted press trip for international media representatives attending Pow Wow in Anaheim and participated in FAM Tour for travel writers hosted by the Hyatt Regency Huntington Beach and the oceanfront. Developed upscale, email based newsletter for distribution to key editor contacts. • Produced the Bureau's fourth rack "lure" brochure for distribution in 1,925 outlets in drive markets across the western U.S., Orange County and San Diego. • Expanded Surf City USA@ brand into three Huntington Beach sporting events: Surf City USAO Albackore@ Sportfishing Gear Spring Surf Slam; Surf City USA@ Marathon and Surf City USA@ Longboard Pro-Am. • Created three issues of the first destination email newsletter ever developed for Huntington Beach and distributed it to 10,883 people who registered to receive more information on the www.surfcityusa.com website. In addition, created one issue of the Bureau's online newsletter, "HB Pipeline," for local residents and City officials; it was posted to the City's website. Resolution No. 2007-57 Exhibit "A" • Negotiated and contracted with Dean Runyan & Associates to provide the first official estimate of the economic impact of tourism in Huntington Beach, piggybacking on official estimates for the California Travel and Tourism Commission in order to obtain a highly cost effective and credible assessment. • The Surf City USA® brand continued its explosive growth with the retention of Trademarks International as its new licensing agent. Introduced new licensed products including apparel, soft drinks, and a new burgundy-colored version of the popular Surf City USA Beach Cruiser by Felt Bicycles. • Hosted Dean Torrence of the original Jan & Dean musical duo to take stage during the last night of the Pow Wow trade show in Anaheim on April 25 and represent Huntington Beach at the largest gathering of international tour operators and travel agents in the world. • Successfully responded to challenges from the U.S. Patent & Trademark Office and registered five additional Surf City USA trademarks (for a total of eight registered marks). Updated Brand Signature Styleguide to regulate use of Mark. • Upgraded and refurbished the Visitor Information Kiosk in Pier Plaza in an upscale Tiki design to match Duke's Huntington Beach, operating the facility from May 26-28 and June 2- September 2. The Bureau simultaneously continued efforts to build a permanent facility in Pier Plaza. • In response to a lawsuit filed against its trademarked Surf City USA brand, the Bureau provided a robust defense for which Chubb Group of Insurance Companies paid all associated expenses. The Bureau selected the law firm of Gordon & Reece, led by noted trademark litigator Rich Sybert, to handle the complaint. It helped to develop a wide variety of complicated and detailed legal documents including proposed settlement agreements; four different requests to move the jury trial from Northern California; an answer to the Plaintiff's Amended Complaint and a Counterclaim; an early disclosure of documents and witnesses (including thousands of pages of evidence and background documents); Bureau interrogatories and responses to interrogatories filed by Floatsam; and early neutral evaluation (ENE) statements, including attendance an ENE hearing in Palo Alto, CA on July 12 that was positive for the Bureau and brand. • To better manage cash flow and provide greater financial stability in the event of inadvertent delays in the receipt of funding from the City in future years, the Bureau created a yearend BID cash reserve of approximately $250,000. Note_ The boundaries of the improvement and benefit areas within the Hotel/Motel Improvement District (which includes the City of Huntington Beach in its entirety) will not change during the upcoming fiscal year. The Shorebreak Hotel is anticipated to open within the Improvement District during the Fall of 2008. Resolution No. 2007-57 Exhibit "B" HUNTINGTON BEACH HOTEUMOTEL BUSINESS IMPROVEMENT DISTRICT (Administered by the Huntington Beach Conference and Visitors Bureau) Proposed Operating Budget 2007-2008 INCOME Carryover FY06/07 $ 250,000.00 Projected Assessment 800,000.00 TOTAL $1.050.000.00 EXPENSE Carryover FY07/08 $ 270,000.00 Personnel 40,000.00 Marketing/Promotion 700,000.00 Legal Expenses 40,000.00 TOTAL 1,050,000.00 Resolution No. 2007-57, Exhibit "B" Hotel/Motel GM List 2007 Beach Inn Motel 18112 Beach Blvd Huntington Beach CA 92648 841-6606 Alex Chau GM Best Western Huntington Beach Inn 800 Pacific Coast Highway Huntington Beach CA 92648 536-7500 Michelle Kelly GM Best Western Regency Inn_ 19360 Beach Blvd }Huntington Beach CA 92648 962-4244 Ted Chen iGM/Owner - Comfort Suites 16301 Beach Blvd Huntington Beach CA 47 841-1812 Sachim �Amin I 926 VP - - - 47 - -- Mike Azad GM Extended Stay America 5050 Skylab West Circle Huntington Beach CAI 92647 799-4887 Sam Gupta AGM 290 Monrovia Avenue Long Beach CA 90803 562-621-1910 Eda -tDipasquale Sales Dir Hilton Waterfront Beach Resort 21100 Pacific Coast Highway Huntington Beach CA 92648 960-7873 J.D.g Shafer _ ;GM _- _ -- - Bu - - 845-8407 Rer rns Sales Dir Hotel tington Europa _ }7561 Center Avenue#46 Hun Beach t�CA : 92647 895-5860 - 'Rat_- (Amin IManager - - - -- -- - - r- Hotel Huntington Beach 7667 Center Avenue Huntington Beach CA 1 92647 1891-0123 Gil - Tu-dunes GM - - - - - - 908-5187 __ _ Sales Dir - - Blvd -- -- - Howard Johnson Express Inn&Suites T17251 Beach - I Huntington Beach CA 92647 1375-0250 Sonja jPatel ]GM&Sales Dir Huntington Suites ;727 Yorktown Avenue Huntington Beach CA 92648 1969-0450 Song Zahedi iGM&Sales Dir -- - —T --- - - - - - - - - Huntington Surf Inn -_ 1720 Pacific Coast Highway Huntington Beach MCA 92648 ,536-2444 Rihana Phi GM&Sales Dir -- Y --g--- -- ---- 845 4--- --- �Ka-- - -- Y p Highway Huntington - -_h 374-7291 Che I Phelps GM H att Regency Huntington Beach Resort&Spa 21500 Pacific Coast Hi hwa _untm ton Beach : - y (Cochran Sales Dir Ocean View Motel 16196 Pacific Coast Highway Huntington Beach CA 92649 1562 592 2700 �Pravin Patel GM - -- --- -- ^ ---9 i -� -- 59 -- - -- 1 - - HighwayShah Owner Pacific View Inn&Suites �16220 Pacific Coast Huntin ton Beach CA 92649 562-592-4959 Varssan 1 Starlight Inn 18382 Beach Blvd Huntington Beach CA 92648 848 8422 Sam" Patel M - - - - -- - T.-- , ...- --- - -I -_ -J - -- Carrie Nakaahiki Manager - ---- -- - Sun n Sands Motel 1102 Pacific Coast HighwayI Huntington Bea ch CA 92648 536 2543 IJitendra Barot otor Inn :16240 aP cific Coast Highway Huntington Beach CA 92649 846 5561 777M Victor Ali IGM - - --- t -- i - -- _. -- j- --- - - - - - - - New:Openll!nq in September 2008 Shorebreak Hotel(temp.address listed �567 Sutter St. iSan Francisco )CA 94102,415-835-0300 Shawn �,Gracey tiGM Resolution No. 2007-57 EXHIBIT C HUNTINGTON BEACH HOTEL/MOTEL BUSINESS IMPROVEMENT DISTRICT (Administered by the Huntington Beach Conference and Visitors Bureau) Proposed Operating Budget 2007-2008 INCOME Carryover FY06/07 $ 250,000.00 Projected Assessment 800,000.00 TOTAL 1.050.000.00 EXPENSE Carryover FY07/08 $ 270,000.00 Personnel 40,000.00 Marketing/Promotion 700,000.00 Legal Expenses 40,000.00 TOTAL $1,050,000.00 Res. No. 2007-57 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 4th day of September, 2007 by the following vote: AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California