HomeMy WebLinkAboutCity Council - 2007-63 RESOLUTION NO. 2007-63
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH APPROVING AN ANNUAL ASSESSMENT
WITHIN THE HUNTINGTON BEACH HOTEL /MOTEL BUSINESS
IMPROVEMENT DISTRICT FOR FISCAL YEAR 2007-2008
WHEREAS, the Parking and Business Improvement Area Law of 1989, codified at
Streets and Highways Code § 36500 et seq. (the "Act") authorizes cities to establish parking
and business improvement areas for the purpose of imposing benefit assessments on
businesses for certain purposes; and
The City Council formed a business improvement area, the Huntington Beach Hotel /
Motel Business Improvement District (the "District"), by the passage of Ordinance 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 improvements,
The District's Advisory Board has prepared and filed with the City Clerk a report an
"Annual Report/Operating Budget 2006-2007 Fiscal Year to Date" and "Proposed Budget for
Fiscal Year 2007-2008"(collectively, "Annual Report");
On September 4, 2007 , the City Council adopted a resolution declaring
its intention to levy an annual assessment for Fiscal Year 2007-2008 as proposed by the
District's Annual Report.
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve, determine and find as follows:
SECTION 1. The City Council hereby approves and adopts 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 report 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. The City Council of the City of Huntington Beach hereby authorizes a
levy and collection of assessments within the District for fiscal year 2007-2008 as proposed
by the Annual Report. The amount of the assessment shall be 1% on overnight room stays
and is to apply to all hotels and motel businesses in Huntington Beach as shown in Exhibit B.
SECTION 3. The assessments collected will be used to fund activities to increase
overnight business stays and tourist visits to District businesses.
07-1158/13388 1
Resolution No. 2007-63
SECTION 4. This resolution shall take effect on October 1, 2007
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 1st day of October , 200_7
Mayo
REVIEWED AND APPROVED: INITIATED AND APPROVED:
C,� EPA- =mot
C y Administrator Director of Econo Developm nt
APP VED AS TO FORM:
Ci y Attorney 8-ao-11
07-1158/13388 2
Resolution No.2007-63
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 Republic/Tucson 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 USA@ 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
Resolution No.2007-63
Exhibit A
issue of the Bureau's online newsletter, "HB Pipeline," for local residents and
City officials; it was posted to the City's website.
• 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.2007-63
Exhibit A
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
Resolution No.2007-63
Huntington Beach Exhibit B
Hotel/Motel List 2007
Name Address City
Beach Inn Motel 18112 Beach Blvd Huntington Beach
Best Western Huntington Beach Inn 800 Pacific Coast Highway Huntington Beach
Best Western Regency Inn 19360 Beach Blvd Huntington Beach
Comfort Suites 16301 Beach Blvd Huntington Beach
Extended Stay America 5050 Skylab West Circle Huntington Beach
Hilton Waterfront Beach Resort 21100 Pacific Coast Highway Huntington Beach
Hotel Europa 7561 Center Avenue#46 Huntington Beach
Hotel Huntington Beach 7667 Center Avenue Huntington Beach
Howard Johnson Express Inn & Suites 17251 Beach Blvd Huntington Beach
Huntington Suites 727 Yorktown Avenue Huntington Beach
Huntington Surf Inn 720 Pacific Coast Highway Huntington Beach
Hyatt Regency Huntington Beach Resort& Spa 21500 Pacific Coast Highway Huntington Beach
Ocean View Motel 16196 Pacific Coast Highway Huntington Beach
Pacific View Inn &Suites 16220 Pacific Coast Highway Huntington Beach
Starlight Inn 18382 Beach Blvd Huntington Beach
Sun 'n Sands Motel 1102 Pacific Coast Highway Huntington Beach
777 Motor Inn 16240 Pacific Coast Highway Huntington Beach
New: Opening in September 2008:
Shorebreak Hotel (temp. address listed) 567 Sutter St. San Francisco
Res. No. 2007-63
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 1st day of October, 2007 by the
following vote:
AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
CA/Clerk and ex-officio Jerk of the
City Council of the City of
Huntington Beach, California