HomeMy WebLinkAboutPublic Hearing – Adopt Resolution No. 2007-63 Approving an C
Council/Agency Meeting Held:
Deferred/Continued to:
*Appr! veb ❑ Conditionally Approved ❑ Denied y ler Sign t e
Council Meeting Date: 10/1/2007 Departmen D Number: ED 07-29
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR CITY CQUNCIL MEMBERS
SUBMITTED BY: PE LOPE C LBRETH-GRAFT, DPA, CITY ADMINISTRATOR
PREPARED BY: STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC DEVELOPMENT �s
SUBJECT: Conduct Public Hearing and Adopt Resolution for Huntington Beach
Hotel/Motel Business Improvement District Annual Assessment for
Fiscal Year 2007/08
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue: On September 4, 2007, City Council approved the Resolution of Intent
No. 2007-57 to levy an assessment for the Huntington Beach Hotel/Motel Business
Improvement District for fiscal year 2007/08 and authorized the City Clerk to schedule a
public hearing. City Council will conduct the public hearing to consider adopting a resolution
to approve the annual assessment for the 2007/08 fiscal year.
Funding Source: Fund 709, Hotel/Motel Business Improvement District, account
70980101.
Recommended Action: Motion to:
1. Conduct the Public Hearing.
2. Adopt City Council 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 2007/08.
Alternative Action(s): Deny the request to approve the Resolution.
Analysis:
At the request of the Huntington Beach Conference and Visitors Bureau, the City Council
formed a Business Improvement District (BID) on August 19, 2002, including all hotels and
motels in Huntington Beach for the purpose of funding activities to promote Huntington
Beach as an overnight destination. The Board of Directors of the Huntington Beach
Conference and Visitors Bureau also serve as the BID Advisory Board.
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
Ci Clerk and ex-officio lerk of the
City Council of the City of
Huntington Beach, California
ATTACHMENT #2
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
07-1 158/13385 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 01, 2007 at 6:00 p.m., or as soon thereafter as this matter may be 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_1_.
0
REV ED ND APPROVED: INITIATED AND APPROVED:
J City Administrator Director of Economic D elopment
APPROVED AS TO FORM:
torne"
07-1158/13385 3
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 10/1/2007 DEPARTMENT ID NUMBER: ED 07-29
Each fiscal year, in order for the City to levy the BID assessment, the City Council must
conduct a public hearing before approving a Resolution confirming the Annual Report. On
September 4, 2007, the City Council approved the annual report and Resolution 2007-57. As
required by the Streets and Highway Code §36500, et seq, copies of the Resolution of
Intention, including the BID Boundary Map and assessment formula were mailed to each
business to be assessed and the Resolution of Intention was also published in the
Huntington Beach Independent.
The Huntington Beach Hotel/Motel Business Improvement District requires a 1% levy be
assessed on overnight room stays in Huntington Beach. These funds are collected as a
separate itemization with the monthly Transient Occupancy Taxes (TOT) paid to the City of
Huntington Beach.
The BID Board of Directors has proposed a budget for FY 2007/08. For purposes of
budgeting, projections of assessment revenue are directly related to anticipated TOT
revenue for a given fiscal year. The FY 2007/08 City of Huntington Beach adopted budget
includes anticipated TOT revenue of $6,500,000, which correlates to $650,000 of
assessment revenue for the BID.
However, in recent years, TOT revenue has come in higher than budgeted. For these
purposes, it is reasonable to project city-wide TOT revenue will be in excess of $6,500,000.
Hence, the Hotel/Motel BID budget has projected assessment revenue greater than the
originally anticipated $650,000. The amount of TOT revenue remitted back to the BID is
based on the actual amounts of TOT received by the City.
Strategic Plan Goal: "Create an environment that promotes tourism to increase revenues to
support community services and transform the city's economy into a destination economy."
Environmental Status: Not applicable.
Attachment(s):
NumberCity Clerk's
Page Description
1. Resolution No. 2007- 63 Approving an Annual Assessment for Fiscal Year
2007-2008 to Fund Improvements Within the Huntington Beach Hotel/Motel
Business Improvement District.
2. Resolution No. 2007-57, approved September 4, 2007, Declaring the City's
Intention to Levy an Annual Assessment for Fiscal Year 2007-2008 Within the
Hotel/Motel Business Improvement District.
3. Power Point Presentation
-2- 9/18/2007 10:07 AM
ATTACHMENT # 1 '
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 5200 7
&4;4 A4A-AAA:?
If Mayo
REVIEWED AND APPROVED: INITIATED AND APPROVED:
Ciqy Administrator Director of Econo Developm nt
APP VED AS TO FORM:
Ci y Attorney 8-,o-17
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 Sun`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 Sun`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 1,060,000.00
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
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.surfci!yusa.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 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 Sun`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 Sun`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 HOTELlMOTEL BUSINESS IMPROVEMENT DISTRICT
(Administered by the Huntington Beach Conference and Visitors Bureau)
Proposed Operating Budget 2007-2008
INCOME
Carryover FY06107 $ 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 Huntin ton Beach CA 92648 841-6606 Alex Chau GM
--- -- - - - - ---
Best Westem 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 GM/Owner
--- - ---._ __.. -- -- --
Comfort Suites _ 16301 Beach Blvd Huntington Beach CA 92647 841_1812 Sachim Amin- _VP
-- - - --
-- - - Mike Azad GM
...._-..--- - -- -
Extended Stay America 5050 Sk lab West Circle Huntington Beach CA 92647 799-4887
Y
290 Monrovia Avenue Long Seach CA 90803 562-621-1910 Eda Dipasquale Sales Dir
Hilton Waterfront Beach Resort 21100 Pacific Coast Hi hwa Huntington Beach CA 92648 960-7873 J.D. - _ Shafer GM
845-8407 Roger _ Burns Sales Dir
--- - ------- ----------_
Hotel Europa --_-- _ 7561 Center Avenue#46, Huntington Beach CA 92647 895-5860 _ RaL IAmin� Manager
Hotel Huntington Beach 7667 Center Avenue Huntington Beach CA 92647 891-0123 Gil— Tuldunes iGM
-�- 908-5187 S es Dv
Howard Johnson Ex_ press Inn&Suites - r17251 Beach Blvd Huntin�cton Beach CA 92647 375-0250 -Sonn�a Patel
�GM&Sales Dir
— — — -- --- —t -- �. _ _
Huntington Suites 1727 Yorktown Avenue j Huntin ton each CA 1 92648 966 -0450 iq!n Tzahedi 16M&Sales Dir
Huntin ton Surf Inn __ _ �720 Pacific Coast Highway Huntington Beach CA : 92648 536.2444 Rihanna Phi ;GM&Sales Dir
---- -------- - - — -- - -- _ -Hyatt Regency Huntington Beach Resort&S a 21500_Pacific Coast Highway-i Huntmgton Beach i CA 92648 ;374 7291 Cheryl— Phelps __ GM
.—_._1845-4604 Kay _ Cochran - ;Sales Dir
---- ---- t — —
I _
Ocean View Motel 16196 Pacific Coast t i hwa Huntin tg on Beach CA 92649 1562-592-2700 j Pravin Patel GM
-- — - - '- - I�- -
Pacific View Inn&Suites 16220 Pacific Coast HighwayHuntington Beach _CA 92649 1562-592-4959 IVarssan 1 Shah ___ Owner
- -- - --
Starlii ht Inn — 118382 Beach Blvd Huntin ton Beach CA 92648 1848-8422 ISam 1Patel __ . GM
-r-- - - --- - - - _ - -
Sun'n Sands Motel i 102 Pacific Coast Highway i Huntington Beach CA 92648 536 2543 IJitendra liBarot IGM
` Carrie Nakaahiki Manager -
- - - - I _._
777 Motor Inn :16240 P iac f c Coast—Highway Hunting_ ton Beach----- CA- 92649 1846�5561 Victor Ali tGM
I ; �
New:Opening In September 2008: -- -
Shorebreak Hotel(Wm ..address listed 1567 Sutter St. San Francisco CA 94102�415 835-0300 ,Shawn IGracey
Resolution No. 2007-57
EXHIBIT C
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
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
ATTACHMENT #3
Huntington Beach Ho'tel/Nt6tel
Business Improvement District
(BID)
Annual Renewal for FY 2007-2008
October 1, 2007
f �
C
Background.
• BID Formed 2002 to promote Huntington Beach
as an overnight destination
• September 4, 2007 - Intention to Levy Assessment
for Huntington Beach Hotel/Motel BID for 2007-
2008 and Scheduled Public Hearing (Resolution
No. 2007-57)
1
Huntington Beach Hotels/Motels
• Beach Inn Motel • Huntington Beach Hostel
• Best Western Huntington • Huntington Suites
Beach Inn • Huntington Surf Inn
• Best Western Regency Inn • Hyatt Regency H.B. Spa
• Comfort Suites &Resort
• Extended Stay America • Ocean View Motel
• Hilton Waterfront Beach • Pacific View Inn& Suites
Resort • Starlight Inn
• Hotel Europa • Sun"N Sands Motel
• Hotel Huntington Beach • 777 Motor Inn
• Howard Johnson Express • Shorebreak Hotel
Inn & Suites
Current Status
• Copies of Resolution and assessment formula
were sent to each business to be assessed
• Assessment is 1% levy on overnight room stays
in Huntington Beach
• Proposed Budget Approved by BID/CVB Board
of Directors in September 2007
• Proposed FY 2007 Budget of$1,050,000
a
2
.Process
• State BID law requires City Council to conduct a protest hearing to
consider all protests against the establishment of the BID.
• If written protests are received from affected business owners of 50%
or more of assessments,no further proceedings to consider the Business
Improvement District can be considered for one year.
• At the conclusion of the protest/public hearing,the City Council may
reduce or modify the proposed assessment or types of activities to be
funded with assessment revenues.
• The City Council has the option of not renewing the Business Improvement
District.
Recommended Action
City Council Actions
• Conduct Public Hearing
• Consider Resolution to Approve Annual
Assessment for FY 2007-2008
3
RCA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Conduct Public Hearing and Adopt Resolution for
Hotel/Motel Business Improvement District 2007/08
COUNCIL MEETING DATE: October 1, 2007
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached
Not Applicable ❑
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Applicable
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not A licable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑
Not Applicable
Bonds (If applicable) Attached ❑
Not Applicable
Staff Report (If applicable) Attached ❑
Not Ap licable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Applicable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
` EXPLANATION F.OR MISSING;ATTACHMENT$,
r
REVIEWED . RETURNED_ FORWARDED'
Administrative Staff )
Deputy City Administrator Initial
City Administrator Initial
City Clerk ( )
EXPLANATION:FOWRETU.RN OF.ITEM:
(Below Only)
f� L 6
RCA Author: Iamb/runzel
CITY OF HUNTINGTON BEACH
PUBLIC NOTICE
PUBLIC HEARING FOR THE HOTEL/MOTEL
BUSINESS IMPROVEMENT DISTRICT RENEWAL
NOTICE IS HEREBY GIVEN THAT the City Council will hold its Public Hearing on the 2007-08 renewal of the
Huntington Beach Hotel/Motel Business Improvement District at its meeting scheduled on October 1,2007 at 6:00
PM or soon thereafter at the Huntington Beach Civic Center,2000 Main Street,Council Chambers as required by
the Parking and Business Improvement Area Law of 1989 as approved by City Council in Resolution No 2007-57 as
re-printed below:
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 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 1, 2007, at 6:00 p.m.,
or as soon thereafter as this matter may be 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
07-1158/Public Notice Hotel-Motel Intention Reso(3) 1
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.
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 fourth day of September,2007.
Copies of the exhibits referenced above may be made available upon request by calling Carol Runzel, Senior
Administrative Analyst at(714)536-5224 or through the City's website at: http://www.surfcity-
hb.org/Govemment/Agendas/sep04O7.cfm.
07-1158/Public Notice Hotel-Motel Intention Reso(3) 2
Huntington Beach Independent has been adjudged a newspaper of general CITY OF HUNTINGTON BEACH
circulation in Huntington Beach and Orange County by Decree of the Superior PUBLIC NOTICE
Court of Orange County,State of California,under date of Aug.24, 1994,case PUBLIC HEARING FOR THE HOTEL/MOTEL
A50479. BUSINESS IMPROVEMENT DISTRICT RENEWAL
NOTICE IS`.HEREBY GIVEN THAT the City Council:will hold its Public
Hearing on''the 2007-08 renewal of the Huntington Beach Hotel/Motel
Business Improvement District at its meeting scheduled on October 1,
PROOF OF 2007 at 6:00 PM or soon thereafter at the Huntington Beach Civic Center,
2000 Main Street, Council Chambers as.required by the Parking and
Business Improvement Area Law of 1989 as approved by City Council in
PUBLICATION Resolution No 2007-57 as re-printed below:
' - 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
�y
FOR FISCAL YEAR 2007-2008 WITHIN THE HUNTINGTON
STATE OF CALIFORNIA ) WHEREAS,
HOTEL/MOTEL BUSINESS IMPROVEMENT DISTRICT
S,the California Legislature,in adopting the Parking and Business
Improvement Area Law of 1989 (Streets and Highways Code §36500 et
SS. seq.) found that cities are authorized to levy assessments on businesses
in order to promote economic revitalization and tourism, create jobs,
COUNTY OF ORANGE ) 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
am the Citizen of the United States and a Huntington.Beach requested that the City Council commence proceedings
under the Parking and Business Improvement Area Law of 1989 to establish
resident of the County aforesaid; I am over hotel' and-motel business benefit area within the City of Huntington
Beach and to levy a special assessment.to promote tourism and tourist
the age of eighteen years, and not a party related events;and
The City Council formed a business'improvement area,'known as the
to or interested in the below entitled matter. Huntington Beach,Hotel/Motel Business Improvement District (the "Dis-
trict"); by the passage of Ordinance No. 3569 on August 19, 2002. The
am a principal clerk of the HUNTINGTON time has come to continue the existence of the District for fiscal year
2007-2008 by levying assessments on those businesses that benefit,from
BEACH INDEPENDENT, a newspaper of the activities;and
The District's Advisory Board has prepared and filed.with the City Clerk
general circulation, printed and published in an Annual Report/Operating Budget 2006-2007 Fiscal Year to Date" and
"Proposed Budget for Fiscal Year 2007-2008" (collectively,- "Annual
the City of Huntington Beach, County of Report");and
NOW,-THEREFORE, BE IT RESOLVED that the City Council of the City of
Orange, State of California, and the Huntington Beach does hereby resolve as follows:
SECTION 1.The City Council hereby approves the Annual Report filed by
attached Notice is a.true and complete copy the Advisory Board in the City Clerk's office attached hereto as Exhibit
A and incorporated herein by this reference, which includes a proposed i
as was printed and published on the budget for Fiscal.Year 2007-2008 and a description'of the improvements
and activities to be provided for Fiscal Year 2007-2008.
following date(s). 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 3e 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 Exhibit C, attached hereto and
'ncorporated herein by this reference. Further,:the improvements, if any,
to be;acquired for the proposed business improvement area are specified
in Exhibit C.
SEPTEMBER Z O ZOO 7 SECTION 4. A public hearing shall be held before the City Council on
i October.1, 2007, at 6:00 p.m., or as soon thereafter as this matter may
be 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 im the proceedings. A
declare under penalty ofperjury, that the written protest may be withdrawn in writing at any time before the
p Y conclusion of the public hearing set forth above. If written protests are
fore going is true and correct. received by the owners of businesses within the District, which will pay
g g 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
Executed on SEPTEMBER 20 ZOO 7 improvements or activities shall be eliminated.
a SECTION 5. The City Clerk is hereby directed to provide notice of the
at Huntin ton Beach California ; public hearing by causing the this resolution of intention to be published
g , once in a newspaper of general circulation at least seven days before
the ublic hearing.
SECTION 6. Further information regarding the proposed business im-
rovement 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.
I SECTION 7. The City Clerk shall mail a complete copy of this resolution
Signature of intention by first-class mail to each business owner in this area within
seven days after the Council's adoption of this resolution. i
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 fourth day of September;
2007.,
opies of the exhibits referenced above may be made available upon
request by calling Carol Runnel, Senior Administrative Analyst at (714)',
536-5224 or through the City's website at: http://www.surfcity-hb.org/i
Government/Agendas/sep0407:cfm. `
Published Huntington Beach Independent September 20,2007' 093-8531,