HomeMy WebLinkAboutAdopt Resolution No 2024-13 Declaring the City's Intention t (2) of INsro s 2000 Main Street, v Huntington Beach;CA 92648 City of Huntington Beach APPROVED 7-0 ep TY File #: 24-406 MEETING DATE: 6/4/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Eric G. Parra, Interim City Manager VIA: Jennifer Villasenor, Director of Community Development PREPARED BY: Kriss Casanova, Economic Development Manager Subject: Public Hearing to consider adoption of Resolution No. 2024-30 Modifying the Management District Plan for the Huntington Beach Tourism Business Improvement District Statement of Issue: On April 16, 2024, the City Council adopted Resolution No. 2024-13 declaring its intention to amend the Management District Plan (MDP) for the Huntington Beach Tourism Business Improvement District (HBTBID). The proposed amendment seeks to raise the HBTBID assessment rate from four percent to six percent of gross short-term lodging revenue. In line with this, Resolution No. 2024-13 set forth a public meeting and this subsequent public hearing for gathering feedback from the City's lodging businesses and the community. The public meeting was held on May 7, 2024, to receive input on the proposed amendment. Now, the City Council is requested to conduct the public hearing and consider adopting Resolution No. 2024-30 to approve the modification. Financial Impact: The proposed adjustment of the HBTBID assessment rate from four percent to six percent is projected ,to yield an additional $3 million in revenue, which will be recorded in Account No. 70900709.40500. These funds will be directed to Visit Huntington Beach on behalf of the HBTBID, for a total estimated annual pass-through revenue of approximately $10 million. Additionally, the City will receive a one percent fee of the amount collected to offset administrative expenses. Recommended Action: A) Conduct the Public Hearing; and, B) If written protests of at least 50 percent or more of the total assessments are not received, adopt Resolution No. 2024-30, "A Resolution of the City Council of the City of Huntington Beach Declaring Results of Majority Protest Proceedings and Modifying the Huntington Beach Tourism Business Improvement District (HBTBID);" and, City of Huntington Beach Page 1 of 5 Printed on 5/30/2024 powere924 LegistarTM File #: 24-406 MEETING DATE: 6/4/2024 C) Approve and Authorize the City Manager to execute the Second Amendment to the Tourism • Business Improvement District Management Agreement between the City of Huntington Beach and Visit Huntington Beach. Alternative Action(s): 1) Modify elements of the Management District Plan or Second Amendment; or 2) Do not approve the resolution if written protests of at least 50 percent or more of the total assessment are received. Analysis: Background The City of Huntington Beach, recognizing the significance of tourism to its economic vitality, established the Huntington Beach Tourism Business Improvement District (HBTBID) in 2014, replacing the previous Hotel/Motel Business Improvement District. This transition was facilitated under the California Property and Business Improvement District Law of 1994, allowing for the formation of special benefit assessment districts. The HBTBID aims to bolster tourism related activities and services through assessments collected from lodging businesses within the district. Acting as the HBTBID Owner's Association, Visit Huntington Beach (VHB) oversees the district's operations in alignment with the Management District Plan (MDP). The MDP delineates the district's boundaries, service plan, budget, and governance structure. Funds collected by the City from lodging businesses, monthly for hotels/motels and quarterly for Short-Term Rentals, are transferred to VHB for the implementation of the MDP initiatives and are subject to annual reporting to the City Council. The HBTBID, approved through June 30, 2028, currently imposes a four percent assessment on gross room rental revenue for short-term stays, separate from the City's ten percent Transient Occupancy Tax (TOT). This arrangement was revisited in 2019, wherein the assessment rate was increased from three percent to mitigate the loss of TOT funding previously allocated to the HBTBID. In response to evolving tourism trends and competitive pressure, VHB seeks to enhance its promotional efforts by increasing the assessment rate to six percent. This adjustment is estimated to yield an additional $3 million annually, which will help maintain Huntington Beach's market visibility and competitiveness. The proposed modification, subject to a public hearing and City Council approval, aligns with VHB's strategic goals and the long-term interests of lodging businesses in Huntington Beach. MDP Modification The proposed increase in the assessment rate from four percent to six percent aims to bolster VHB's budget, thereby enabling enhanced marketing and tourism promotion activities. This augmentation would commence on July 1, 2024, and continue until the conclusion of the HBTBID term in June 2028. The adjusted budget allocations prioritize Sales & Marketing (65%) and Tourism Enhancement Programs (10%), consistent with the district's strategic objectives. Budget Category Existing Proposed Sales & Marketing 72% 65% City of Huntington Beach Page 2 of 5 Printed on 5/30/2024 powere924 LegistarTM File #: 24-406 MEETING DATE: 6/4/2024 Tourism Enhancement Programs 10% Administration 19% 19% Contingency/Reserve 8% 5% City Admin Fee 1% 1% Total Budget (Approximately) \$7M $10M VHB is entrusted with promoting the iconic Surf City USA® brand and fostering year-round visitation. The attached VHB FAQ & Visitor Industry Introduction (Attachment 1) provides an overview of VHB and their strategies. It outlines their intentions to broaden destination sales and marketing programs and spearhead new tourism enhancement initiatives, all of which are underscored by key performance indicators. Their commitment extends to ensuring sustainable funding for these endeavors while upholding the City's economic interests. The proposed additional funding would be used for activities above and beyond those that are currently provided with the existing funding level as follows: • Sales & Marketing - this encompasses destination sales and marketing programs strategically tailored to key visitor markets, with a particular focus on those generating significant overnight visitation and related spending in Huntington Beach. Efforts extend to non -peak seasons and mid-week periods, aiming to maximize year-round tourism impact. • Tourism Enhancement Programs - these initiatives aim to enrich Huntington Beach's brand offerings, fostering year-round overnight visitation. By enhancing the overall brand experience, these programs aim to prolong visitor stays and cultivate repeat visits. The focus is on improving attractions and amenities to provide compelling reasons for visitors to choose and revisit Huntington Beach. If approved, the total guest charge will increase from 14 percent to 16 percent with 10 percent allocated to City TOT (current rate), and 6 percent directed towards the HBTBID. With VHB's anticipated expanded marketing efforts, a correlated increase in occupancy rates and overall visitation numbers is expected. Consequently, this is projected to positively impact the City's TOT revenue, currently budgeted at $16,580,000 or 5.8 percent of the City's total General Fund revenue for FY 2023-24. Additionally, greater occupancy rates are anticipated to generate an indirect boost in sales tax revenues derived from tourist spending. As the tourism landscape evolves, continued collaboration between the City and VHB is imperative for sustaining Huntington Beach's status as a premier tourist destination. VHB has garnered significant support from lodging businesses, representing approximately 85 percent in favor of the proposed assessment increase. VHB is now requesting the City's support for the assessment increase. HBTBID Modification Process The City Council adopted Resolution of Intention No. 2024-13 (Attachment 2) on April 16, 2024, outlining the proposed modification to the MDP and scheduling a duly noticed public hearing for June 4, 2024. In compliance with state law, a public meeting took place on May 7, 2024, preceding the public hearing, providing an opportunity for lodging businesses and the public to express their views City of Huntington Beach Page 3 of 5 Printed on 5/30/2024 power Leg star M File #: 24-406 MEETING DATE: 6/4/2024 on the proposed modification. During the public meeting, one STR owner submitted written protest (Attachment 3) while several hotel owners and community members provided their support both verbally and through written submissions. Any owner of a lodging business subject to the assessment may protest the HBTBID modification. . Such protests must be filed with the City Clerk before or during the public hearing. If protests are received from lodging business owners representing 50 percent or more of the estimated annual assessments levied, the HBTBID will not be modified, and no further steps to increase the assessment shall be taken for a period of one year. If public comments prompt adjustments, the City Council retains the authority to make changes to the MDP but cannot increase the assessment rate any further. If protests totaling 50 percent or more are not received, then the City Council, following the public hearing, may proceed with modifying the HBTBID by adopting Resolution No. 2024-30 (Attachment 4). The schedule below provides a framework for the modification process. April 16, Resolution of Upon the written request by the HBTBID Owners' 2024 Intention Association (VHB), the City Council may adopt a (ADOPTED) Resolution of Intention which states the proposed modification to the HBTBID. VHB provided a written request for the proposed modification to the City dated August 29, 2023, and the City Council adopted the Resolution of Intention on April 16, 2024. April/ Notice The City Clerk's office mailed the written notice to each May 2024 (COMPLETED) affected lodging business owner, including permitted STR operators, on April 19, 2024. Notice in the Huntington Beach Wave was published on May 23, 2024. May 7, Public Meeting Public meeting was held on May 7, 2024, to allow public 2024 (COMPLETED) comment on the modification of the HBTBID. No City Council action required. June 4, Public Hearing & City Council shall hold a public hearing, not more than 90 2024 Resolution of days after the adoption of the Resolution of Intention, on Modification the proposed HBTBID MDP modifications. If the City Council, following the public hearing, decides to modify the HBTBID, the City Council shall adopt the attached Resolution of Modification (No. 2024-30). The increase in the assessment rate would become effective July 1, 2024, or as soon thereafter as feasible. Amendment to the Management Agreement Concurrently with the MDP modification, staff recommends an amendment to the Management Agreement (Attachment 5) between the City and VHB, which outlines the responsibilities of both parties related to funding and programs. This amendment specifies Tourism Enhancement Programs City of Huntington Beach Page 4 of 5 Printed on 5/30/2024 powerey LegistarTM File #: 24-406 MEETING DATE: 6/4/2024 agreed upon by both parties and the process for determining additional projects for the remainder of the HBTBID term. VHB's funding commitment would equate to 10 percent of the assessment budget, with the City reciprocating this commitment to enhance the visitor and resident experience. Proposed initiatives encompass a spectrum of enhancements including wayfinding signage, infrastructure upgrades, public restroom enhancements, walkability improvements, connectivity and accessibility improvements, and lighting. Detailed project descriptions and budget allocations for these Tourism Enhancement Programs are outlined in Exhibit C of the amendment, earmarked for implementation from FY 2024-26 to help increase overnight stays. Environmental Status: The action to modify the MDP and amend the Management Agreement is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Tourism Enhancement Projects with the potential to result in physical changes to the environment would be evaluated in accordance with CEQA at the time a project is proposed for permits or discretionary approval. Strategic Plan Goal: Goal 1 - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth. For details, visit www.huntingtonbeachca.qov/strategicplan <http://www.huntingtonbeachca.qov/strategicplan>. Attachment(s): 1. VHB FAQ & Visitor Industry Introduction 2. Resolution of Intention (No. 2024-13) & Redline MDP 3. Protests Received as of May 30, 2024 4. Resolution of Modification (No. 2024-30) & Clean MDP 5. Second Amendment to the TBID Management Agreement (First Amendment, Original Agreement) 6. PowerPoint Presentation City of Huntington Beach Page 5 of 5 Printed on 5/30/2024 power Legistar'TM Frequently Asked Questions about Visit Huntington Beach Who is Visit Huntington Beach (VHB)? VHB, formed in 1989, is the official destination marketing organization (commonly referred to as a DM0)for Huntington Beach, California. It is a private, non-profit 501(c)(6) organization. VHB is an economic development organization that reinvests visitor-generated assessments from Huntington Beach lodging properties to create more local jobs, increase visitor spending at local businesses and increase overnight visitor stays in our local hotels. All these results lead to an increase in tax revenues for local government. Visit Huntington Beach consists of a team of dedicated staff members and board members working toward a more successful Huntington Beach. A non-membership organization, its partners consist of the City of Huntington Beach, all Huntington Beach lodging properties and visitor-serving businesses, and visitor-serving organizations in Huntington Beach. For questions regarding partnership, please view our Lartner Benefits section or contact a staff member. Visit Huntington Beach works collaboratively with many organizations within the community, but is not involved in their operations or decision-making processes. For more information on those organizations and their work, please visit their organization websites below: City of Huntington Beach • Government services; parking permits; City Council meetings; policies; public safety & law enforcement. Downtown Huntington Beach Business Improvement District • Represents over 250 downtown businesses that provide visitors with dining, shopping, and retail experiences • Surf City Nights (the only certified farmers' market in HB) • Surf City Artisan Fair Huntington Beach Chamber of Commerce • With a membership of more than 600 Huntington Beach businesses, the Chamber works to build a stronger Huntington Beach business community. What is VHB's Mission? VHB supports and advocates for the economic vitality and quality of life for our Huntington Beach community through inspirational destination marketing and brand management. What is VHB's legal organizational designation? VHB is a private, non-profit 501(c)(6) organization. It is not a department of the City of Huntington Beach. 927 Why does VHB use the trademark Surf City USA®? In 2004, Visit Huntington Beach registered the trademark Surf City USA®with the USPTO, and was officially was approved in 2007. Inspired by the nickname that was popularized by the 1963 song "Surf City" by Jan and Dean, Surf City USA®embodies the Huntington Beach brand as the quintessential Southern California beach-town, with more than a century of surf culture and history, 10 miles of wide-open beaches, consistent waves throughout the year, and the iconic Huntington Beach Pier. For those interested in licensing the Surf City USA®trademark, please contact VHB at (714) 969- 3492 or info@surfcityusa.com. Do local residents pay taxes that fund Visit Huntington Beach? No. What is the benefit of tourism to Huntington Beach residents? Combined state and local tax revenues, excluding Transient Occupancy Tax revenue, generated by visitors helped to offset the average Huntington Beach resident's tax burden by$565 per household in 2017. Tourism also supports local businesses and attracts signature events to the destination, allowing residents to enjoy a wider range of restaurants, retail, and activities close to home. Why is the Visit Huntington Beach Board of Directors asking City Council to affirm its TBID assessment increase from 4%to 6%? Visit Huntington Beach's tourism marketing budget is falling behind other competitive southern California destinations' budgets. This significantly limits Visit Huntington Beach's (VHB) ability to market and sell the Surf City USA® brand experience around the world. Over the last several years, costs have risen in areas such as advertising, creative designs, strategic partnerships for group business, and labor, making it difficult for VHB's budget to keep pace with the increased cost of doing business. Many OC and SoCal destinations also have new travel and hotel experiences that are poised to draw visitors to them and away from Huntington Beach, making it increasingly imperative to maintain our competitive position. Without an increase to VHB's sales and marketing budget, Huntington Beach will have a less visible presence compared to other tourism destinations, leading to tourists choosing to visit other destinations instead of Huntington Beach.As a result, Huntington Beach hotel occupancy and room rates will drop, impacting the hotel industry, which will also lead to drastically diminished TOT, sales tax and parking revenues to the City. Why is a strong local tourism economy important? A strong local tourism economy generates tax revenue for the City.These come in the form of 928 hotel occupancy taxes (TOT), sales taxes on goods and services purchased by tourists, and taxes on attractions and events. Visitor spending also increases the effective tax base of a community. With these tax revenues, it goes into the City's general fund, allowing local governments to provide a higher quality of services without increasing taxes for its residents. This can be reinvested into essential public services and amenities that benefit residents, such as parks, beaches, road maintenance, and emergency services. Revenue from tourism taxes also drives local economic growth, creating jobs and increasing residents' income. This stimulates spending within the community, fostering further revenue generation and potentially alleviating the need for higher taxes. If Huntington Beach loses its tourism market share to other SoCal destinations, it would weaken the local tourism economy, which would in turn reduce revenue for the city's general fund that supports various essential city services, e.g. public safety, roads and infrastructure. It is therefore essential to modify the self-assessed TBID to a higher percentage, as it will sustain a strong local tourism economy and its efforts to drive economic vitality in Huntington Beach. What do vacation rentals get out of paying into the TBID self-assessment? Under the direction of Visit Huntington Beach's Board of Directors, one of VHB's main responsibilities is to ensure the largest well of visitors flow into Huntington Beach to stay, shop, and play. Regardless of lodging choices, destination marketing is the number one deciding factor on travel decisions and it is crucial to keep the destination top of mind when travelers decide where to spend their travel budget. Visit Huntington Beach plans and deploys year-round sales & marketing programs to boost visitor numbers, room bookings and tourism spending for all lodging properties. By promoting Huntington Beach as a fun, desirable tourism destination, we entice more visitors to come and stay in the destination, whether at a hotel, short-term rental or with friends and family. A TBID modification increase would allow for bespoke vacation rental campaigns, influencer campaigns, website promotion, and "Live Like a Local" materials designed specifically to benefit STVR owners and their guests. How do you track and determine the success of VHB's programs? The Visit Huntington Beach Board of Directors' strategy includes comprehensive,full-funnel sales & marketing initiatives designed to drive a steady flow of leisure and group business throughout the year. Throughout the entire run of various programs, Visit Huntington Beach uses several data sources as well as over 50 Key Performance Indicators (KPIs)to monitor and determine the Return on Investment (ROI) performance of its Paid, Owned, Earned, and Shared channels. Why does VHB support large signature events? Research data shows that large events typically bring an increase in visitation and visitor spending to a destination during the events. By hosting special events, the tourism industry benefits from increased visitors, but also generates substantial revenue for the City as visitors spend more on accommodations, parking, dining, shopping, and entertainment during an 929 event.This influx of spending not only supports local businesses but also fuels economic growth in the community. In addition, VHB strategically partners with world-class special events that align with the destination's brand and image (for example, the US Open of Surfing)to help drive business year-round, especially during non-peak periods. Additionally, special events provide an opportunity for Huntington Beach to showcase our unique attractions, culture, and hospitality to a wider audience, spotlighting Huntington Beach to new audiences around the world that will attract future or repeat visitors. What approach does the VHB Board of Directors recommend to the City for any future initiatives to increase TOT that would have hotel industry support? The VHB Board of Directors understands that the tourism industry is part of the local economy tapestry and remains open to future City initiatives to increase its overall general fund budget. Is VHB an accredited destination marketing organization (DM0)? VHB has been fully accredited by Destinations International (DI),the world's leading trade association for DMOs, since 2012. VHB renewed its accreditation in 2022 and received the highest possible recognition for a destination organization —"Accreditation with Distinction," indicating that the organization exceeded the minimum requirements for accreditation with over 100 mandatory and voluntary standards that span a variety of performance areas. With over 200 destination organizations who have obtained DMAP recognition, fewer than 10% earn "Accreditation with Distinction". How did VHB get accredited? To become accredited, a DMO must demonstrate compliance with more than 100 performance standards in the areas of governance, strategic planning, stakeholder engagement/advocacy, finance, human resources, management and operations, technology, research and marketing intelligence, brand management, marketing, communications, sales and services, membership/partnership, visitor services, and destination development.Accreditation standards are set by an independent panel of industry veterans representing a diverse selection of destination organizations. Standards are regularly revisited and revised to reflect the evolution of best practices in the industry and accredited organizations are required to re-apply every five years. Completing the renewal process typically takes 9-12 months. What are VHB's Core Values? VHB embodies a community-focused spirit of service that is proactive and strategic. How many full-time employees does VHB currently employ? VHB currently has 17 full-time employees. Is VHB's current staffing level high or low when compared to otherDMOs and industry standards? 930 The average number of full-time employees for DMOs in VHB's annual budget category($5 — $9.9 million) is 24 FTEs (Destination Organization Performance Reporting, DI). VHB's 17.6 FTE's is 27% less than DMOs in the same budget category. Have any of VHB staff achieved higher professional certification? There are less than 400 Certified Destination Marketing Executives (CDME) in the world.Two of VHB's 17 full-time team members are CDMEs, with one additional team member who is in progress. DI's highly respected 2-3 year educational CDME program offered through Purdue University is the accounting world's equivalent of earning a C.P.A., but for DMO professionals. How is VHB funded? VHB's funding does not come from taxes paid by local residents. Funding is derived through a Tourism Business Improvement District (TBID) self-assessment paid by Huntington Beach lodging properties who collect the assessment from overnight hotel guests choosing to stay in one of Huntington Beach's 21 hotels (2,300 total available rooms). What is the Tourism Business Improvement District (TBID)? The TBID was originally formed in 2002 by Huntington Beach hotel properties and approved by City Council. All lodging properties within the TBID's boundaries (the city limits of Huntington Beach) agreed to place a self-assessment on overnight stays to help fund VHB's efforts to market and sell the destination to visitors. Currently, the TBID consists of 21 local hoteliers and 225 licensed vacation rentals. The TBID assessment is paid by visitors who stay in Huntington Beach lodging properties. TBID assessment revenues provide a more dependable, long-term, sustainable revenue source to market Surf City USA®globally without any tax burden on local residents. Huntington Beach's overnight hotel guests pay a 4% assessment fee for each occupied room/vacation rental per night during their stay. How much TBID assessment revenue is dedicated to VHB? The current TBID management district plan went into effect on February 1, 2019 with a 4% self- assessment rate for all Huntington Beach lodging properties that would be used to fund VHB's program of work. Guests staying at these properties pay this rate upon checkout. In 2019, this plan was expected to result in annual TBID revenues of$5.2 million. It also allowed the City of Huntington Beach to receive over$1 million in revenues for the general fund that were previously allocated to Visit Huntington Beach through Transient Occupancy Taxes (TOT). How much is VHB's annual revenue? In FY 2022-2023,VHB's annual revenue was approximately $7 million dollars, all paid by Huntington Beach's overnight hotel visitors. What is Transient Occupancy Tax(TOT) and how is it used? Huntington Beach's overnight lodging guests pay a 10%TOT per room per night.The City of Huntington Beach retains 100% of all TOT revenues as of February 1, 2019. (Previously, VHB had received 10% of TOT visitor tax revenues for destination marketing).These revenues support the City's general fund and help to pay for City services including police, fire, marine 931 safety, beach maintenance, parks, and libraries. Note: City governments around the country retain an average of 50% of TOT revenues,with the remainder invested in destination marketing with the city's DMO.The City of HB retains 100%. How much TOT revenue is generated each year? In FY 2022-2023,total TOT revenue collections were approximately$16 million. Since 1996, over$200 million in TOT revenues have been collected by the City. How much TOT revenue is dedicated to VHB? 0%. As of February 1, 2019, VHB does not receive any TOT funds. What does VHB do with TBID assessment dollars? TBID assessments fund vital, important VHB program of work areas, which greatly benefit our community and overall visitor experience: All metrics below is a reflection of the 2022-2023 fiscal year(July 1st-June 30th). • Overall brand marketing for Huntington Beach, Surf City USA. • Traditional advertising in key visitor markets with over 1 billion advertising impressions. • Digital and social media programs, including ownership and management of surfcityusa.com (relaunched website with new design in July 2022), with over 1.3 million annual website sessions, 2.1 million pages viewed, 109,550 Instagram followers; 84,342 Facebook fans; 15,950 Twitter followers, and 3,007 Linkedln followers; 2,052 Pinterest followers; and 914 followers to the recently created TikTok account. • Public relations, which generated 1,900 Barcelona Principles score. o The Barcelona Principles refers to the Barcelona Declaration of Research Principles, a set of seven voluntary guidelines established by the public relations (PR) industry to measure the efficiency of PR campaigns. They were the first overreaching framework for effective public relations and communications measurement. • Destination sales (conventions, meetings, groups), which last year was responsible for sourcing over 900 leads, of which over 50:000 hotel room nights were booked into local hotels. • High demand publications such as HB's official Visitors Guide, Visitor Map and Historical Walking Tour brochures. • International and domestic travel trade programs targeting leisure travelers via trade shows generating 15 in-destination familiarization tour visitors, and sales outreach to 733 tour operators and travel agents in 3 target countries. • HB Film Commission that works closely with the City's Economic Development office to help generate 111 film permits. • Surf City USA's Nighttime Ambassador Program that serves visitors and businesses on weekends and during special events year-round. • Visitor Information Kiosk at the Pier, which is open seven days a week, served over 53,000 walk-up visitors. 932 • Welcome Center at the Huntington Beach International Surfing Museum, which is open six day a week. • Free monthly partner information meetings designed to provide HB's businesses with actionable steps to increase visitor generated expenditures for local businesses. How many total annual visitors experience Huntington Beach? The definition of a "visitor" to any destination can vary. The sometimes-quoted annual number of between 11-15 million HB visitors is loosely based on the number of estimated cars parking at HB's beach parking lots. This number includes local residents. For example, a local HB resident who has a beach pass and parks at the beach 20 times a year to catch some morning waves is included in this informal tally as 20 visitors. VHB commissions a more robust visitor research study every several years, designed to provide a deeper and more scientifically significant analysis of HB visitors. In these studies, HB visitors are defined as "anyone who lives outside of Orange County and who has visited Huntington Beach for the day or stayed there overnight." Non-Orange County resident visitors to Huntington Beach: • 2022: 2.26M • 2021: 2.11M • 2020: 1.69M • 2019: 2.78M • 2018: 2.61M • 2017: 3.5M • 2016: 3.34M • 2015: 3.22M • 2014: 3.18M Source: Lauren Schlau Consulting, Inc.; CIC Research, Inc.; Tourism Economics. May 2023. Which visitors are being targeted by VHB's integrated sales and marketing plan? Non-Orange County residents who desire overnight hotel accommodations in Huntington Beach (including Sunset Beach and all other non-resort hotel property locations) are the primary target audience of VHB's very detailed and measurable sales and marketing efforts. VHB secondarily promotes in destination shopping, dining, tour and attraction experiences to help extend length of stay, repeat visitation and day visitation. Who are these visitors? Here are some highlights from the most recent comprehensive visitor profile study: • Median age is 39 years • Household income is $105,000 • Average number of nights stayed in Orange County is 3.77. 933 • Average size of visitor group is 3 people • About three out of four visitors (75%) are day visitors • Nearly 25% have overnight accommodations in HB, with 17.5% reporting overnight hotel stays, 2.4% other paid lodging, and 5% reporting private home accommodations and a very small percentage staying in campgrounds • 69%of visitors drove to HB, 9% used ride share (Uber/Lyft), while about 21%traveled by air • On average, HB visitors spent $395 per group (or$133 per capita), per trip in Orange County Where are these visitors from? 93% are domestic US visitors with top geo markets of: • Southern California • San Francisco and the Bay area • Phoenix/Scottdale in Arizona • Dallas/ Houston/Austin in Texas • Seattle/Portland/Vancouver in the Pacific Northwest • Utah • Las Vegas in Nevada • Denver in Colorado • Chicago in Illinois 7% are international visitors with top geo markets of: • Canada • UK • Mexico • China/Japan/South Korea • Middle East • Australia What is the economic impact on the local Huntington Beach economy by non-Orange County resident visitor spending? The last economic impact study of non-Orange County residents visiting HB was completed in 2022, assessing the economic impact of 2022 visitors: • Visitor spending: $506.3 million in direct spending, averaging$1.38 million a day. • Estimated 4,146 jobs supported by visitor spending, or 1-in-25 jobs in the City. • Over$17.3 million in total projected tax revenue from visitor spending contributed to the City of Huntington Beach's general fund. Source: Lauren Schlau Consulting, Inc.; CIC Research, Inc. May 2023. 934 How can I view a copy of VHB's FY22-23 2 Annual Highlights? For more information, see VHB's FY22-23 Annual Highlights. 935 INTRODUCTION TO VISIT HUNTINGTON BEACH ( MAY 2024) , . , „,,,,.. ,......,._ . , . . ... ... _ _ . -; .. .. • .,, _ .;„ __. . .,, ,.... .. . ..„,,...•. . .. . . ., • ....in.,...tr, .„......„.„. ... . .... _ itr -1,;‘,1-- - _- - - . -1. ,,,,..-r,-...,...4.— .-: . ,:-... . A .....to " b +fit .� �,.....m ,mac,;... ., +v ,, c � _ ,� _ f zs� + It "... i , .. . »--- _ w R <sc f ' / . :. . 6 vi- iT,, i . \ .44_4._ 4. .. .... . ...44.. ....„...... ,,_ _.... --..- ...„.. _ 44.: .... _ ........-1,..- __:__ ____.__. _ _, , _____ , „,:e.„... A.,,,,..... ... „, ...... i 'li • , . ...,. .........4„.. _ . ,_ .... _ ...., _ ,.. y r .. - _ ---_ f...-'iYf APRIL 2024 VISIT HUNTINGTON BEACH ABOUT VISIT HUNTINGTON BEACH WHO ARE WE? Visit Huntington Beach (VHB) is the official Destination Management • Organization (DMO) for Huntington Beach, California. A non-profit 501(c)(6) organization, VHB promotes tourism to Huntington Beach to increase overnight stays in Huntington Beach hotels. VISIT MISSION Visit Huntington Beach supports and advocates for the economic vitality "1,0 10' and quality of life for our Huntington Beach community through 1,„L HUNTINGTON inspirational destination marketing and brand management. VISION o OUT A welcoming, beach-infused community that inspires the stoke of optimism in every visitor and resident. S y A A® VISION - IN VHB is an effective destination leader representing the combined visitor industry and community partnership in the brand development, marketing and sales of the Surf City USA® experience. • APRIL 2024 VISIT HUNTINGTON. BEACH VISIT HUNTINGTON BEACH: TRANSPARENCY AND ACCOUNTABILITY Visit Huntington Beach is fully Accredited with Distinction by Destinations International (DI), indicating that the organization exceeded '(SON Mq the minimum requirements for accreditation with over 100 mandatory and voluntary standards that span a variety of performance `�,P R,F� areas. With over 200 destination organizations around the world who have obtained DMAP recognition, fewer than 10% earn h \ P "Accreditation with Distinction". ` Z ® ACCREDITED' GI OEGANI AT1oN Our organization embodies a community-focused spirit of service that is proactive and strategic.As part of this effort,we are pleased ` i' " WITH DISTINCTION Q to provide information dedicated to transparency and accountability in our DMO operations and program of work. Ca410,'ttirioNoo4- BROWN ACT Over 10 years ago, VHB voluntarily agreed to be subject to the California Brown Act, which allows the public to attend and participate in meetings. All regular Board of Directors and committee meeting agendas are noticed at least 72 hours prior to the meeting and all meetings are open to the public, with a public comment period available at the start of each meeting. All agendas and minutes are posted on SurfCityUSA.com. FINANICAL STATEMENTS AND AUDITS Monthly financial statements are presented at each VHB Board of Directors meeting. VHB also undergoes an annual financial audit using the same audit firm as the City of Huntington Beach.The final audit report and audited annual financial statements are presented at a Spring Board of Directors meeting and sent to City staff. BOARD GOVERNANCE • VHB is governed by a Board of Directors,which provides strategic direction for the organization and supervises VHB's President &CEO. • VHB's Board meets at least quarterly throughout the year.The Executive Committee meets monthly. All meetings are open to the public. • City Council appoints two liaisons each year who attend Board meetings and receive regular updates on VHB programs. APRIL 2024 VISIT HUNTINGTON BEACH VISIT HUNTINGTON BEACH FUNDING HISTORY VISIT 0 HUNTINGTON The Huntington Beach City Council approved a BEACH Conference and 5-year agreement to give the SURF CITY USA` Visitors Bureau HBCVB 10%of the city's (HBCVB) became Transient Occupancy Tax (TOT) City Council approved the incorporated as a collections in lieu of a fixed creation-of a new Tourism In April 2021,the City of 501(c)(6) private, not- annual grant. For the first time, Business Improvement District Huntington Beach began for-profit mutual the HBCVB's funding consisted of (TBID) with a self-assessment collecting TOT and TBID benefit corporation in both Hotel/Motel BID of 3%on hotel and motel assessments from Short Term the State of California. assessments and TOT collections. overnight room stays. Vacation Rentals (STVRs). 1989 2006 2014 2021 40 S • 0 6 2002 2010 2018/2019 2023 City Council approved the City Council approved a In 2019, the TBID was VHB is preparing for a creation of a Hotel/Motel Hotel/Motel BID assessment renewed, and the City Council TBID modification, Business Improvement increase of 1%, increasing the simultaneously approved an increasing the TBID District(BID) and a self- self-assessment to 2%. assessment rate increase from assessment from assessment of 1% on hotel three percent (3%)to four 4%to 6%to remain and motel overnight room percent (4%)to mitigate the competitive. stays. loss of TOT funding that the City had previously been providing. 939 HOW ARE WE CURRENTLY FUNDED? VHB's funding does not come from taxes paid by residents, such as local property taxes paid by home and business owners. Funding is derived through a Tourism Business Improvement District (TBID) self-assessment ' .. paid by Huntington Beach hotels who collect an assessment from overnight guests choosing to stay in one of Huntington Beach's 21 hotels f z (2,368 total available rooms) or 218* short term vacation rentals (STVRs). gr . : fl Business Improvement District(BID) = 100% . �� ® Transient Occupancy Tax (TOT) = 0% • Other = <1% Tourism Business Improvement District (TBID): Huntington Beach's overnight hotel guests pay an additional 4%assessment for each occupied hotel room per night during their stay.The TBID assessment is not a tax, but a self- assessment,which the 21 local hoteliers and 218*STVRs place upon themselves for occupied rooms and is paid by overnight visitors.TBID assessment revenues provide a more dependable,long-term,sustainable revenue source to market Surf City USA°globally without any tax impact to local residents. Transient Occupancy Tax (TOT): Visit Huntington Beach receives no TOT funding. Huntington Beach hotels have contributed more than$200 million dollars in TOT for the City since 1996. *Total count subject to change APRIL 2024 VISIT HUNTINGTON BEACH VISIT HUNTINGTON BEACH HISTORICAL TOT COLLECTIONS Transient Occupancy Tax (TOT) . $18,000,000.00 Huntington Beach hotels have contributed more than $200 million dollars3sTBo in TOT for the City since 1996. $16,000,000.00 2018/19- 4%TBID $14,000,000.00 . . 2014. $12,000,000.00 --. COVID ` PANDEMIC $10,000,000.00 -2010- .....,-_,..„ - I 2%Hotel/Motel BID 2002 $8,000,000.00 1%Hotel/Motel BID $6,000,000.00 , $4,000,000.00 I ... . - ,.. vi,.. . . .. , • N .• T' . ' ‘ y.. $2 I : . , 4 •...4" ' '.. 000000.00 I I I I I I II , ** , Ci . 0) c5 c) 0) 0 0 0 0 0 0 0 0 0 .0 .N. .N. .N. .N. .N AN .N. AN. .N. •N. .1, .1, .1, .1, 2.2' e *FY 17-18 was a 9-month fiscal year to align VHB's fiscal year with the City's fiscal year(which is July 1 through June 30) **July—Nov 2023 VISIT HUNTINGTON BEACH - VHB 2023 - 2026 STRATEGIC PLAN VISIT HUNTINGTON BEACH - � > r r - ,, " t � 2023-2026 STRATEGIC PLAN ` { j VISION •OUT VISION• IN MISSION VALUES REP►UTATI• POSITION A welcoming, VHB is an effective Visit Huntington Beach VHB embodies a The Huntington Beach Huntington Beach rises above its beach-infused destination leader supports and advocates community-focused experience is competitive set destinations,offering community that representing the combined for the economic vitality spirit of service that is • Inspirational unique value to visitors seeking. inspires the stoke visitor industry and and quality of life for our proactive and strategic. • Authentic • Beach and Beyond Experience of optimism in every community partnership in Huntington Beach community • Friendly • Beachfront Hotels visitor and resident. the brand development, through inspirational • Fun • Downtown Experience marketing and sales of the destination marketing and • Accessibility Surf City USA experience. brand management. IMPERATIVES OBJECTIVES INITIATIVES Increase HB accommodation sales as measured by RevPAR by 3%YOY • Issue RFP for creative agency of record • Increase overall digital engagement by 20% • Leverage the World Cup and LA28 to expand global destination Drive Global • Increase media reach and Barcelona Principles score by 15%YOY with a brand awareness Brand Awareness focus on positive engagement • Secure year-round signature sporting and city-wide events • Increase group booked room nights by 6%YOY • Efficiently leverage brand partnerships to increase Huntington Beach's global brand awareness • Enhance partnership with the City,Downtown BID and other • Increase the length of stay 6.7%to 4 025 nights by 2026 entities to enhance the Beach&Beyond experience Enhance the • Increase visitor spend throughout HB by 12%by 2026 • Develop outreach and education to enhance customer service Destination • Achieve a 90%or greater customer sentiment score by 2026 for all visitors,including international and accessible communities Experience • Facilitate the creation of new bookable product • Improve connectivity throughout Huntington Beach • Establish a baseline Net Promoter Score and increase YOY through 2026 • Utilize VHB Board to act as tourism ambassadors • Cultivate our advocacy relationship with the City Champion the • Articulate the quality-of-life enhancements tourism brings Value of Tourism to Huntington Beach residents • Develop and implement partner and resident sentiment outreach and evaluation program • Develop and establish customer sentiment survey in Year 1 • TBID modification approved Prioritize • Improve YOY customer sentiment • Develop stakeholder engagement plan(Board,City.DBID,Ambassadors Organizational • Successful TBID modification in Year 1 and Chamber) Effectiveness • Maintain 90%and above on internal culture survey in Year 2 • Improve and maintain overall processes based on and Culture • Ensure financial accountability as measured by a successful audit,achievement culture survey results VISIT 942 of zero-sum budget,and grow reserve year over year • Develop and deploy customer satisfaction survey ir HUNTINGTON BEACH A VISIT HUNTINGTON __ BEACH SURF CITY USA MARKETING GROUP SALES VISITOR & TOURISM ADVOCACY PARTNER SERVICES ENHANCEMENTS RESEARCH MEETINGS / EVENTS PARTNER EDUCATION SERIES WAYFINDING SIGNAGE ADVOCACY TASK FORCE DIGITAL / WEBSITE CONVENTIONS EVENT INFO BOOTHS WALKING TOURS COMMUNITY OUTREACH SOCIAL MEDIA BOOKINGS & RFP VISITOR INFO KIOSK COMMUNITY EVENT PUBLIC RELATIONS PARTNER PORTAL DOWNTOWN BID, HB RESPONSES FOR HB SPONSORSHIPS CHAMBER, CITY OF HB ADVERTISING COLLECTION CRM MAINTENANCE ENGAGEMENT TRAVEL TRADE PARTNER LISTINGS SUMMER BEACH FILM COMMISSION `ONE STOP SHOP' FOR PUBLICATION DISTRIBUTION RESTROOMS PARTICIPATION ON E-NEWSLETTERS MEETING PLANNERS EVENT CALENDAR BIG BOARD INDUSTRY/LOCAL BOARDS SURF CITY USA BLOG SPORTS COMMISSION AMBASSADOR PROGRAM & COMMITTEES / ` / ` / ` / \ / , N � . I 4. 1 ► ► ► ►/ _ \ I. ID _ • I. • ► ► \ . I. I. 1l \ REPUTATION DESTINATION PERFORMANCE KPIs EARNED MEDIA Credibility Media Relations VHB's comprehensive sales & Trust marketing initiatives are Thought Leadership Influencer/Blogger Relations g Authority EARNED Social Monitoring designed to drive a steady MARCOM Familiarization Tours flow of leisure and group Influencer Marketing _ ,fid Trade Show/Sales Missions business throughout the year Experiential Marketing __ ...,f Word-Of-Mouth with a focus on the hotels' Event Marketing --- ��% . Accolades "soft season" non-peak PAID MEDIA `'} COMMUNITY period (typically November— PAIs SHAREDFe bruary).Visitor Center&Kiosk Display Advertising Social Media Ads Community Building Boosted Content Engagement Throughout the entire run of Fan Acquisition -Detractors it various programs, Visit Lead Generation -Loyalists Huntington Beach uses Sponsored Content OWNED MEDIA %. -Advocates Paid Publishing Website OWNED Brand Ambassadors several data sources as well E-Newsletters \ SHARED MEDIA % Team Surf City USA® as a blend of over 50 Key Visitor Guide Occupancy User-Generated Content Performance Indicators (KPIs) LEAD GENERATION ___ Content Marketing % Average Daily Rate Advocacy to monitor and determine Email Marketing Videos/Webinars RevPAR Affiliate MarketingDigital Display SEO/SEM the Return on Investment g• p y / � TBID(TOT)Collections Inbound Marketing Customer Stories Experience, Expertise, � Visitation PARTNERSHIPS (ROI) performance of its Contests/Quizzes/Polls Employee Stories Authoritativeness and ---' Visitor Spend -- Community Service Paid, Owned, Earned, and Visual Content Trustworthiness Jobs Co-Branding Shared channels. Audio/Podcasts Domain Authority Research APRIL 2024 VISIT HUNTINGTON BEACH DESTINATION MANAGEMENT CYCLE Destination management plays a vital role in helping organizations in the travel and tourism industry achieve their fundamental goal of building a visitor experience that delights the traveler and inspires repeat visitation; bringing economic and brand lift benefits as they stay, shop, and play. 1.VISIT -_ 2. LIVE If you built a place where people And if you built a place where people'''"want to visit,then you have built a ,,„,,, want to live,then you have built a place where people want to live. `'N place where people want to work. It Starts With A Visit That Is the The \ \1 Work of a Community From Visit,To Destination Vitality Live,To Work. Organization Wheel To Invest. fi F You Need To Keep The Wheel o \ z Turning and Manage Its a`, `Speed — 0 4. INVEST ,,,,, BrondManagement 3.WORK c And if you built a place where business Place ``�T And if you built a place where people Stewardship o and residents will invest,then you and Investment want to work,then you have built a place a; have built a place where people will Promotion and Sales where business and residents will invest. o want to visit. 8 APRIL 2024 VISIT HUNTINGTON BEACH HUNTINGTON BEACH TOURISM ECONOMY 2022 ANNUAL VISITOR PROFILE JOBS VISITATION o 55% female; 45% male SUPPORTED BY 2 • 26Mo 54% are CA residents TOURISM o 38% US residents outside of CA 4 146 VISITO S P EN II \ \ HB o 7% international $506,337,500 A YEAR o 52% say HB was the main destination of trip TOURISM ACCOUNTS FO- AVERAGINGoF o Median Age: 39 years old % $1, 387,226 A DAY o Average HHI: $l05k per annum THE TOTAL OR $57,801 AN HO U R o Average length of overnight stay: 3.77 nights EV PLOYV ENT I\ THE CITY A visitor is defined as someone "visiting Huntington Beach for the day or overnight, who resides outside the geographic boundaries of Orange County." Source:Tourism Economics,Lauren Schlau Consulting,Inc.,CIC Research,Inc. APRIL 2024 VISIT HUNTINGTON BEACH • ...s:7—,:,,' ' -ss:,..... ,,,:"..:::: ".":,:—.•,,,,,,,,, ,,,,....: , THANK YOU _.,..rvoirto",,,..t.„1„. : . . . .. _.„... .. .i, ....., ., ,. ,,„.„ „„ ."",,,,,z.,,,m..;,,..„4.0,,,__, ......... .,,,,, 014.14.1......,,,,,. .44.4,..._44r.,....„7....,,, ,..,. :_.....„..„.,,, ,,,,...:... „7- '''''77777---'4—'-nik lati _� z • x � � �<a®� .e"' ,mot«�.. ,q�,_;_ Wit..4, "^^eRr�6 � a a.» }� . —•"�- .�., ..r -�"Mpr :; mac« : .a. �, r Or APRIL 2024 �. . q VISIT HUNTINGTON BEACH RESOLUTION NO. 2024-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO MODIFY THE MANAGEMENT DISTRICT PLAN OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (HBTBID) WHEREAS, the City Council of the City of Huntington Beach initially created the Huntington Beach Tourism Business Improvement District(HBTBID) in 2014 by Resolution No. 2014-72; and WHEREAS, the City Council renewed the HBTBID in 2018 by Resolution No. 2018- 84, and adopted the current Management District Plan(MDP) of the HBTBID; and WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows cities to modify the MDP at the request of the Owners' Association; and WHEREAS, the HBTBID Owners' Association, Visit Huntington Beach, has requested modification of the MDP. NOW, THEREFORE, by the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The recitals set forth herein are true and correct. 2. The City Council declares its intention to modify the HBTBID MDP. 3. The proposed modification of the HBTBID MDP will modify the HBTBID assessment rate. The current HBTBID assessment rate is four percent(4%) of gross short-term room rental revenue. The modified assessment rate is six percent(6%) of gross short-term room rental revenue, effective July 1, 2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. 4. The time and place for a public meeting for comments on the modified HBTBID are set for May 7, 2024, at 6:00 PM, or as soon as possible thereafter as the matter may be heard, at 2000 Main Street, Huntington Beach, CA 92648. 5. The time and place for a public hearing on modification of the HBTBID MDP is set for June 4, 2024, at 6:00 PM, or as soon as possible thereafter as the matter may be heard, at 2000 Main Street, Huntington Beach, CA 92648. The City Clerk is directed to provide written notice to lodging businesses assessed within the modified HBTBID of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code §36623, no later than April 20, 2024. 6. The complete proposed, modified MDP is on file with the City Clerk and may be reviewed upon request. 948 RESOLUTION NO. 2024-13 7. At the public meeting and hearing,the testimony of all interested persons for or against the modification of the HBTBID may be received. If at the conclusion of the public hearing,there are of record written protests by the owners of the lodging businesses within the modified HBTBID that will pay more than fifty percent(50%) of the estimated total assessment of the entire HBTBID,no further proceedings to modify the HBTBID shall occur for a period of one (1)year. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of April, 202 Mayor REV ED AN PR VED: APPROVED AS TO FORM: Ca? City Manager Ci Attorney ATTEST: INITIATED AND APPROVED: (JP:SA, 9"6/- t2- City Clerk' irep or of Community Development 2 23-13464/319475 949 Res. No. 2024-13 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, 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 April 16, 2024 by the following vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, Kalmick NOES: None ABSENT: None RECUSE: None e&16114,1414d City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 950 2019-2028 VISIT HUNTINGTON BEACH • ... 't.", ... - Z .. X2 4 1 41 HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law ofOet o 1994,Streets and Highways Code section 36600 et seq. CONTENTS Contents I, OVERVIEW 2 ;--(Formatted:Font:Garamond,12 pt II, BACKGROUND 4, —"'(Formatted:Font:Garamond,12 pt III, IMPETUS TO RENEW THE HBTBID 5 " ,.'{Formatted:Font:Garamond,12 pt IV, ACCOMPLISHMENTS 7 "‘, '(Formatted:Font Garamond,12 pt V. BOUNDARY 181518181510 \, s.,(Formatted:Font:Garamond,12 pt VI, BUDGET AND SERVICES 191619191611 \\`` t Formatted:Font Garamond,12 pt •�.\),`:, Garamond, A. Annual Service Plan • 191619191611 � (Formatted:Font: 12 pt P B. Annual Budget 211923231911 \`$•, \f Formatted:Font:Garamond,12 pt 932 �;\` Y Formatted:Font Garamond,12 pt C. California Constitutional Compliance 2519_�_31911,1':,�\`, 1\`;j P26217575711615, \ Formatted:Font:Garamond,12 pt Assessment _ � � p 22 �' (Formatted:Font:Garamond,12 pt ' E. Penalties and Interest 2721_5�516 l'�`�,�;', Time and Manner for CollectingAssessments 2722.L6262217, }'•i,!`;,,(Formatted:Font:Garamond,12 pt T. ` ``+'`'',(Formatted:Font:Garamond VII, GOVERNANCE 2923-27279315 ,.,s`y,;. AA. Owners'Association 29232_727L.318, "r,';,\'''`;;(Formatted:Font Garamond,12 pt ' f Formatted:Font:Garamond � Brown Act and California Public Records Act Compliance 299327272318 jj`j,`:,'i 23272 \;:�;;,(Formatted:Font Garamond,12 pt C. Annual Report 29_� �7211 S �'';',;I Formatted:Font Garamond APPENDIX 1—LAW 302528282519 1'„`',t 936zn�' 1'MP,;'•`(Formatted:Font Garamond,12 pt i3 3 APPENDIX 2—ASSESSED BUSINESSES 41 � -o Formatted:Font:Garamond \\O';T,{Formatted:Font:Garamond,12 pt 44.y Formatted:Font:Garamond °"`,'\''\`,(Formatted:Font Garamond,12 pt l,,�;1; ;,' ' Formatted:Font:Garamond Prepared by l;°�''`'' ---- '-�i„':I,,;��Formatted:Font Garamond,12 pt Civitas �i'�4'�1(Formatted:Font Garamond,12 pt *4 111 td• \'61\ Formatted:Font:F, Garamond,12 pt C I V I •FA S "y„,Formatted:Font:Garamond I'''.(Formatted:Font:Garamond,12 pt PARTNERSHIPS•PROGRESS•PROSPERITY (800)999-7781 ';(Formatted:Font:Garamond f+(Formatted:Font:Garamond,12 pt www.civitasadvisors.com i,', 11j(Formatted:Font:Garamond W.Formatted:Font:Garamond,12 pt it Formatted:Font:Garamond,12 pt (Formatted:Font:Garamond,12 pt . 952 • I. OVERVIEW Developed by Visit Huntington Beach(VHB)and Huntington Beach lodging businesses,the renewed Huntington Beach Tourism Business Improvement District(IIBTBID)is an assessment district that will continue to provide specific benefits to payors,by funding marketing and sales promotion efforts for assessed lodging businesses. The HBTBID was formed in 2014 for a five(5)year term;assessed lodging businesses now wish to renew itsubsequently renewed it for an additional nine(9)years and five(5)months. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach,as shown on the map in Section V. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales. Tourism Eenhancement Pprograms,including-Marketing&Public Relations and;Group Sales,and Visitor Services Enhancements,will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales. Budget: The total HBTBID annual assessment budget for each full year of operation is anticipated to be was approximately$5,000,000. The initial"year"of operation will bewas a partial year consisting of five(5)months,for which'the anticipated assessment budget is-was approximately $2,083,333. Beginning ApailJuly 1, 2024, or as soon as possible thereafter,due to the modified assessment rate,the total HBTBID assessment budget for each full year of operation is anticipated to be approximately S10.000,000. The initial "year" of the modified assessment rate is a partial year consisting of 0 months,for which the anticipated assessment budget is approximately S. Cost: The initial annual assessment rate is-ryas four percent(4%)of gross short-term room rental revenue. This Management District Plan (Plan)has been modified to increase the assessment rate to six percent(6%)of gross short-term room rental revenue.The modified assessment rate is effective beginning on Api1July 1, 2024, or as soon as possible thereafter,and shall continue for the duration of the HBTBID's term.Based on the benefit received,assessments will not be collected on:stays of more than thirty • (30) consecutive days;stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law.or international treaty. Collection: The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies,penalties and interest) from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed HBTBID will havehas a nine(9)year and five(5)month life,beginning February 1,2019 through June 30,2028. Once per year,beginning on the anniversary of HBTBID renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. The proposed time for implementation and HBTBID Management District Plan VISIT 2 October 9,201SMarch 27,2021,2023 HUNTINGTON BEACH SURF CITY USA' 953 completion of this Management District Plan is February 1,2019 through June 30, 2028.The modified assessment rate is set to take effect ArptilJuly 1,2024.or as soon as possible thereafter,and shall continue for the duration of the HBTBID's term.After the nine(9)year and five(5)month term,the HBTBID may be renewed for up to ten (10)years if lodging business owners support continuing the programs. Management: Visit Huntington Beach will continue to serve as the HBTBID's Owners'Association. The Owners'Association is charged with managing funds and implementing programs in accordance with this Plan,and must provide annual reports to the City Council. HBTBID Management District Plan VISIT 3 October 9,20ISMarch 27,2024,2023 HUNTINGTON 10 BEACH SURF CITY USA' 954 II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood,California in 1989. Since then,over one hundred California destinations have followed suit. In recent years,other states have begun adopting the California model—Massachusetts Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita,Kansas and Newark,New Jersey used an existing business improvement district law to form a TBID. And, some cities,like Portland,Oregon and Memphis,Tennessee have utilized their home rule powers to create TBIDs without a state law. Number of Districts Operating California's TBIDs collect- p g in ively raise over $250 300 California million annually for local 120 110113 destination marketing. With 99 10a compet-itors raising their 100 $$-d budgets, and increasing 80 61 7p rivalry for visitor dollars,it is 60 __46. important that Huntington 32 38 40 29 Beach lodging businesses 19 25 continue to invest in stable, 20 1 .4--_6 9 12 2 lodging-specific marketing 0 _M n 6d._� programs. o0 oti oa o� oro do yo tiro ti' ti� yo ,yo 19 yo 1° do ,yo TBIDs utilize the efficiencies of private sector operation in the market-based promotion of tourism districts.TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase room night sales. In California,TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government use; • TBIDs are customized to fit the needs of payors in each destination; • TBIDs allow for a wide range of services; • TBIDs are designed,created and governed by those who will pay the assessment;and • TBIDs provide a stable,long-term funding source for tourism promotion. HBTBID Management District Plan VISIT 4 October 9,20lSMarch 27,2024,2023 HUNTINGTON ti BEACH SURF CITY USA' 955 III. IMPETUS TO RENEW THE HBTBID The existing HBTBID was established in 2014 with an assessment rate of three percent (3%) on overnight lodging revenues in Huntington Beach.While the HBTBID has been successful,there is was still opportunity for growth in overnight visitation and room night sales revenue,especially during non-peak periods. CurrentlyAt the time of HBTBID renewal in 2019,the City of Huntington Beach provides provided VHB with funding from Transient Occupancy Tax revenues,equal to one percent (1%)of overnight lodging revenues in Huntington Beach,pursuant to an MOU between the City and VHB. The City and VHB intend to tenninatehave terminated the MOU and entered into a new_ is the intent of VHB to develop a long-term agreement with the City that includes the City retaining 100%of all TOT revenues. The-In the renewal of the HBTIBD,the assessment rate in the renewed HBTBID will bewas increased initially to four percent(4%)of gross short-term room rental revenue to ensure that tourism promotion funding wais not decreased during the term of the renewed HBTBID.To continue to ensure that tourism promotion funding is adequate to remain competitive with other popular destinations,this Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on :July 1, 2024, or as soon as possible thereafter, and shall continue through the duration of the HBTBID's term. There are several reasons to renew modify this P1anthe-H,BTBID. The most compelling reasons are: 1. The Need to Maintain/Increase Competitiveness, Occupancy and Overall Visitation As the number of overnight accommodations grow in Orange County, as well as in competitive California cities and counties, it is crucial that Huntington Beach maintains and increases its competitiveness,occupancy levels and visitation from targeted markets. These goals can be accomplished by increasing the HBTBID assessment rate from three four percent (34%)to fsetr-six percent(46%),which will continue to generate approximately$51(2,000,000 per each full year in dedicated HBTBID funding for improvements and activities to increase room rentals for assessed lodging businesses located within the renewed modified HBTBID. Additional HBTBID funds will continue to be used to implement new Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level: 1. Increase funding for destination sales and marketing programs,which will target key visitor markets,including markets that generate substantial overnight visitation to Huntington Beach and related visitor spending throughout the year,especially during non-peak seasons;and 2. Increase funding for the innovative HBTBID Visitor Services Enhancements program that • adds new and/or repurposed projects to Huntington Beach's current brand offerings,which will increase year around overnight visitation by improving the overall HBTBID brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. 2. An Opportunity for Increasing City Revenues As an indirect result of the renewed modified HBTBID,it is expected that as occupancy rates and overall visitation numbers increase,so too will the City's Transient Occupancy Tax revenue. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. 3. Stable Funding for Destination Marketing HBTBID Management District Plan VISIT 5 October 9,2018March 27,2024,2023 HUNTINGTON irBEACH SURF CRY USA° 956 The current HBTBID was formed pursuant to the Property and Business Improvement District Law of 1994.The law allows a district to be renewed for up to ten (10) years without the need for City Council's annual approval to continue levying the assessment. Stakeholders-hi Fee elected to renew the HBTBID for a nine (9) year five (5) month term. The renewed term will providcprovides stable funding for destination marketing,visitor services enhancements,and management through June 30, 2028 and aligns the HBTBID's fiscal year to the City's fiscal year. This tufty-will provide stable funding • for destination marketing,visitor services enhancements,and management. • Many of Huntington Beach's competitors are at or exceeding the level of funding available for destination marketing in Huntington Beach. The table below lists the funding raised by tourism Iimprovement districts for oevcral other competitoraVHB's current comparative set. Location Amount Raised Assessment Rate TOT Total Guest Rate Charge Colts Mesa $3,33A,000 34,,room revenue S% 44 I Formatted Table Laguna Beach $?948;000 2%room revenue 129',, 119., Irvine $3,100,000 2%room revenue $-^.4 4-0% Anaheim $19,530,000 2%room revenue 15% 17% S17,500,000 Mammoth Lakes S10,800,000 1%room revenue 13% 14% Newport Beach $10,500,000 3%room revenue 10% 13% Palm Springs $17,000,000 1%room revenue 14% 159/0 San Diego S41,000,000 2%room revenue 10% 12°o San Luis Obispo $10,400,000 1%room revenue 10% 11% Santa Barbara 510,700.000 2%room revenue 12% 149-0 Long Beach $6,000,000 3°e room revenue 4?"0 15°, Formatted Table Torrance $47099,000 1°;,room revenue 43% 12°:, Santa Monica $1,130,000 $1.50 $5.25 per night 1194 11%+$5.25 Oceanside $690,000 1.5%room revenue 109 11.5°.% • (Formatted Table Santa Barbara ,$,770,000 $0.75 $1.00 per night 119 ,,� n0 Newport Beach $b;430,000 3%room revenue 109:, 13% Mammoth Lake:. Dana Point ..rr L-n. a i.,Y, *As of September 201 SAugust 2023 HBTBID Management District Plan VISIT 6 October 9,201SMarch27,2024,2023 HUNTINGTON ill BEACH SURF CITY USA' 957 • IV. ACCOMPLISHMENTS (2019—2023) Assessed Lodging Business Revenue ; Formatted:Font:Garamond Assessed lodging business revenue has increased 27%since the HBTBID assessment was increased --{Formatted:Font:Garamond from 3%to 4%in 2019.Increases in assessed lodging business revenue by fiscal year are listed {Formatted:Font:Garamond below: Fiscal % Note Year Increase FY 18-19 17% Formatted:Font:Garamond FY 19-20 (23%0) (Covid hit in last quarter of fiscal —{Formatted:Font:Garamond �eax FY 20-21 (6%) �-�Formatted:Font:Garamond FY 21-22 41% —(Formatted:Font:Garamond FY 22-23 6% --(Formatted:Font:Garamond Formatted:Font:Garamond Marketing&Public Relations 2019/2020 • To adapt to the pandemic shutdowns,VHB revised its marketing mix from a more international/national blend of effort towards a more hyper local(Los Angeles/Orange County)and regional CA drive market focus. • In partnership with the City of Huntington Beach,launched OneHB Clean dam'Safe and Masks Up Stgf Citfy campaigns as part of its COVID-19 Recovery Plan. • Produced 360 virtual reality content and an Open forBusine s map as part of VHB's COVID- 19 Recovery Plan. • Participated in Virtual Trade Show:10 pre-scheduled appointments from larger agencies and groups(AAA Northeast,HelmsBriscoe)to smaller agencies(Preferred ChoiceTravel, TravelStore Pasadena)in partnership with the Hyatt Regency Huntington Beach Resort& Spa • Date a Destination:Week-long event held by Gate 7 with the major Australian travel companies in Australia(Helloworld,Flight Centre),destination reps,and virtual one-on-one meetings. • Promoted Huntington Beach during the 2019 Great PacificAirrhonu as a VIP Chalet sponsor. ---[Formatted:Space After: 0 pt 2020/2021 HBTBID Management District Plan VISIT 7 October 9,201SMarch 27,2024,2023 HUNTINGTON siBEACH SURF CITY USA' 958 • • Continued OneHB Clean&Safe and Masks Up Surf City pandemic safety campaigns. • Developed a Clean&Safe video series for each of the HB Collection properties that showcased their flexible meeting&events meeting spaces with 40%of its total square footage being outdoors and reiterated their commitment to ensuring a safe environment for their guests. • Incorporated Project Brief template to use for ideation and outlining all proposed large VHB projects. • Launched inaugural 12 Blocks of Cheer Campaign bringing together the four downtown resorts Pacific City,and Downtown Main Street for a holiday campaign promoting local shops, businesses,and events.40 participating businesses;62 events/photo ops;35 deals;3,000+ map views. • Participated in Visit California's Calling All Californians Co-op Marketing Program designed to jump start the California economy and drive responsible in-state travel.From August— November,VHB rolled out advertising on travel-focused digital platforms.Campaign generated more than 9.6M impressions,2,600 room nights with a gross booking value of 5555.9K. • Launched social media advertising campaign on Facebook and Pinterest targeting in-state travelers,complementing the Calling All Californians digital campaign.Garnered 3.2M impressions,over 82.7K video play-throughs,and over 15K clicks. • Media/PR efforts focused on garnering media coverage from hyper local outlets and influencers. • Authored 17 blogs with listicle themes (ex:Three Reasons to Travel to Huntington Beach During the Week). • Website Enhancements:Content Optimization and Navigation Architecture;SEO/SEM., Transitioned website to becoming ADA compliant. • Revamped paid social media program to align with the heavy audience shift to social media during the pandemic,leveraging the 24/7 cycle of the platforms to promote all relevant VHB marketing programs.Communities and engagement increased on Facebook and Instagram by 25%YoY. • Launched Datafy geo-location reporting dashboard tool which gains visitor and visitation insights from unique mobile device IDs that are observed while in destination. • Revised Visitor Guide with a 2020 pandemic lens and RedzrcoverYour Glow and Travel Responsibh'themes. • Secured in-market agency representation in Canada,United Kingdom/Ireland,and Mexico. 790 total travel agents across all markets trained on selling Huntington Beach as a destination.103 one-on-one trade show appointments with key international travel agents and tour operators. • Launched CA STAR Visit CA Training Tool used to train groups of travel agents and tour operators via an online course. • Brand USA Agent Training in Mexico City(200+attendees). ._-{Formatted:Font:Garamond • Familiarization Tours with Air Canada,Discover North America(UK),British Airways (UK),and Virgin Holidays(UK); -{Formatted:Font:Garamond • Updated FILM HB Landing pages.FILM HB Data:14 Film inquiries and 11 permitted shoots. • Formatted:Font:Garamond 2021/2022 f Formatted:Indent:Left: 0.5", No bullets or numbering • In February 2021,launched inaugural Show Your HB Love campaign to highlight various businesses throughout Huntington Beach. • Launched#BeHere Marketing Campaign encouraging visitation and overnight stays in an open outdoor,safer environment.The campaign's initial launch was during the summer and the HBTBID Management District Plan VISIT 8 October 9,2018March 27,2024,2023 HUNTINGTON BEACH • SURF CITY USA' 959 second BeHere 2.0 flight leveraged Huntington Beach's elongated summer weather and events that extend well into the Fall,Winter and Spring seasons providing an opportunity for a second wave of summer leisure marketing-Summer 2.0—which overlays with the destination's needs period.Campaign garnered 15.2M impressions 32K clicks,reached 2.7M households and 122 cities.The booking component of the campaign generated 2.2M impressions,and 9,200 room nights with a gross booking value of S2.4M. , • Participated in Visit California's What If Co-op Marketing Program:Launched in Spring 2021,the multi-layered campaign helped to stimulate California's tourism economy and • inspire domestic travel. • The 2021 IVSL US Open ofSuifngpresented by Shisedo Marketing Campaign spotlighted •---(Formatted:Space After: 0 pt Huntington Beach to over 15 countries around the globe.The campaign garnered 5241.1K in media value,110M social media impressions.3.41VI video plays,1.3M live video views --(Formatted:Font:Garamond 80K page views to landing page,and 1,000 pieces of media coverage media. • Promoted Huntington Beach during the 2021 PacificAirshow as a Chalet partner,hosting �--(Formatted:Font:Garamond meeting planners and select VIP clients to promote HB as a meetings and events destination. -{Formatted:Font:Garamond • Social Media program resulted in Facebook and Instagram communities increasing by 15% _ {�Formatted:Font:Garamond YoY and social media engagement levels surpassing VHB 15%benchmark increase by as Formatted:Line spacing: At least 10.5 pt much as 135%; • —1 Formatted:Font:(Default)Garamond,Font color:Black • Launched Crowdriff-visual content marketing software for travel and hospitality brands to help source,manage,and publish user-generated content and short-form video from Formatted:Font:Garamond Huntington Beach locals and visitors. • Launched a TikTok page in October 2021. • Launched a Group Sales e-newsletter targeting meeting&event planners.Built a database of over 2,900 recipients with an open rate of 19.1%. • Launched a UGC(user generated content)program encouraging locals and visitors to share their content with us for use on our social platforms and other materials.Generated 869 pieces of content. • Launched digital advertising program that sells banner ad space on heavily trafficked pages of the VHB website,as well as paid opportunities on other VHB digital platforms(social media,e-newsletter,et al). • Launched robust,content-calendar-based blog program to build more relevant,SEO-& SEM-friendly content on the VHB website.60 blogs authored. • Launched a quarterly photoshoot program developed to fill in imagery needs for all of VHB's marketing initiatives.Quarterly Sessions:Outdoor Activities around the Pier,Action Sports,Laidback Luxury,and Select Service Hotel Properties. • Partnered with four Orange County DMOs to form the Orange County Coastal Tourism Alliance in response to the Orange County Coastal oil spill.Developed a website to serve as a central communication hub for elected officials,the City,media,tourism industry and the public to share the most current information and accurate,factual updates about the spill impacts and recovery. • In January 2022.launched quarterly Visitor Intercept Surveys.The data collected over calendar year 2022 will be included as insight in the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Hosted 13 journalists and 15 influencers,including"Travel Mom"influencer Emily Kaufman.Garnered national and local coverage including Forbes Magazine,Conde Nast Traveler,JustLuxe,CNN,Fox 11 News,Brides,and Orange County Register. • Produced SuifCiyy USA®Uncovered-a 20-episode series featuring unknown or"hidden" gems within Huntington Beach.The series targeted visitors and locals encouraging them to explore. HBTBID Management District Plan 9 • a VISIT October 9,201SMarch 27,2024,2023 y HUNTINGTON • BEACH scer CITY USA' 960 • Revised Visitor Guide with the 2022 themes of Be Here and Clean&Safe and inspirin messaging sensitive to travel in a(transitioning)pandemic era. • FILM HB Data:45 Film inquiries and 63 permitted shoots. 2022/2023 • Launched#BeHere 3.0 Marketing Campaien encouraging visitation and overnight stays in an open,outdoor,safer environment.This iteration of the campaign targeted Huntington Beach lifestyle pillars of outdoors,wellness,family,active sports,dining,and shopping. Campaign garnered 22.7M impressions 46.7K clicks,outpacing performance by 47%.The booking component of the campaign generated 3,360 room nights. • In response to Board direction to amplify channels to help boost referral business to hotels for the remainder of the fiscal year,VHB extended its#BeHere Soft Season Campaign,a highly targeted media buy investment developed to generate leisure bookings,increase web traffic to SurfCitvUSA.com,and increase awareness of the destination,hotel,and resort properties. The extended campaign generated an additional 8.24M total impressions and 11,950 clicks to VI IB's campaign landing page.The campaign surpassed performance projections by 53%and is tied to 2,917 unique hotel overnight visitors who saw VHB paid media ads up to 90 days before their stay. • Launched redesigned website.Website traffic increased 7%YoY with 1.3M sessions and 2.1M Pageviews annually.Won four awards:Hermes Creative Award-Gold:DotComm- Gold Winner:Internet Advertising Competition-Best of Industry Winner;29''Annual Communicator Awards-Award of Excellence. • Updated all of VHB's SEM-and SEO-related platforms that track search engine and website • performance to be compliant with Google Analytics Version 4(GA4)platform update before the switch went live on July 1,2023. • Produced quarterly destination performance reports for the HB Collection hotel properties, customized with destination-level and hotel-level data per property. • Promoted the inaugural A Great Day in the Stoke,a surfing competition which is open to all, but also happens to be the largest gathering of black surfers.The campaign secured 48 pieces of online media stories,4 broadcast interviews,and 3 print articles with a collective reach of 29.3M. • The 2022 ISA World Surfing Games Marketing Campaign promoted Huntington Beach to over 2.1M LiveStream viewership from over 50 countries.The campaign,which received exposure in the Opening Ceremony,the competition broadcast,and Closing Ceremony and Parade,garnered 2M social media impressions,132K daily interactions on ISA event page, and media coverage reaching 22K contacts. • The 2022 WSL Vans US Open of Sung Marketing Campaign spotlighted Huntington Beach to over 743M homes in 6 regions around the globe.The campaign garnered a collective 1.3K social media posts,38M social media impressions,2M VOD views,2.9M email impressions, 2.8M live video views,195K page views to landing page,and 1,000 pieces of media coverage media.VHB also hosted LA28 organizing committee members allowing them to see first- hand HB's capabilities as a top-tier sporting event location. • Promoted Huntington Beach during the 2022 PacificAirshory as a Chalet mnier hostin to {Formatted:Font:Garamond meeting and event planners to showcase the destination as a unique place to meet.Along with Destination Analysts,produced 2022 Pacific Airshow Economic Impact Report that showed it generated a S70M total direct economic impact for Huntington Beach. • Secured the 2023 ISA World Para Sung Championships to occur in November 2023(FY 23- 24). • Updated VHB Brand Style Guides --(Formatted:Font:Garamond HBTBID Management District Plan 10 March 27,2024,2023ti VISIT HUNTINGTON • BEACH SURF cos ass' 961 • Produced Huntington Beach Tourism Summit hearing from experts in the tourism,action sports and entertainment industries,as well as economic forecasts for Huntington Beach and updates on regional infrastructure enhancements. • Designed new VHB trade show booth which debuted at IMEX 2022,a major trade show. • Produced the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Created a Major Events in HB Presentation deck highlighting all the benefits of hosting world- class sporting(and other)events in Huntington Beach. • Achieved goal of having 1,000 TikTok followers by fiscal year's end,unlocking additional backend features. • Launched KeyData Reporting Dashboard which tracks Short Term Vacation Rentals performance in the destination. • Launched Symphony Dashboard which pulls in all sources of economic,demographic, marketing,digital performance numbers into a central location for streamlined and customizable reporting. • Hosted 16 journalists and 7 influencers.Garnered national and local coverage includin• Forbes Magazine, Viator,Inside Hook,Daily Pilot,Travel Awaits, USA Today,and Orange County Register. • Hosted the California Cup Golf Invitational 2023.The 4-day long event brought together 75 international travel trade buyers and California suppliers for HB experiences,business development,and industry networking.Each year,CA Cup Invitational gives back to a local charity through funds raised from international and CA auction prizes. • VHB was the only U.S.destination invited to participate in Air Canada,the Air Canada Foundation,and CAN(Canucks Autism Network)community's inaugural Auticm Aviation Day,VHB welcomed over 50 individuals including children on the autism spectrum.The event provided an opportunity for youth on the autism spectrum(and their families)to rehearse the entire pre-flight process:the goal is to increase autism accessibility and encourage future travel. • Conducted 733 total travel agents across all markets trained on selling Huntington Beach as a destination:137 one-on-one trade show appointments with key international travel agents and tour operators;and 15 international familiarization tours. • Along with Destination Analysts,produced 2022 Pacific Airrhow Economic Impact Report. • FILM HB Data:126 Film inquiries and 111 permitted shoots _-{Formatted:Font color:Auto Formatted:Font:Garamond Sales Formatted:Indent:Left: 0.5",Space After: 0 pt, No FY 2019 to present: bullets or numbering • Conference/Meeting leads processed by VHB:2,900 • Definite contracted/booked room nights by VHB:176,055 • Economic Impact of Groups to Huntington Beach:$121 million Highlighted Group Sales Programs • Success of HB Collection Beachwides-Annual Future Proof Wealth Festival,inaugural year 2022,taking place every September with over 3,000 room nights to the destination per year within the four HB Collection Resorts and a beachfront event activation. • Participation in Intermediary Preferred programs including HelmsBriscoe ConferenceDirect,Prestige,and HPN Global which_contributed to a substantial increase in _-{Formatted:Font:Garamond lead development YOY. • Partnership with Orange County Sport Commission has generated new business opportunities for both our Select Service and Full-Service Hotel/Resort partners. HBTBID Management District Plan 11 etobeen9-2O4SMarch 27,2021,2023 VISIT lir^' HUNTINGTON BEACH SUSY CITY USA` 962 • Visitor&Partner Services Visitor Interactions(luly 1,2019—Tune 30,2023) • • Visitor Info Kiosk:51,644 • VHB Office:13,173 • Events:10,017 • Mobile Bicycle Program:391 Event Information Booths • 55 events attended • New branded equipment purchased in 2022(10x10 pop-up canopy,cafe umbrella,flags,and tablecloths) Formatted:Font:Garamond Local Pop-up Information Booths • Launched Summer of 2021 • Pacific City o Operated weekends only from 5/29/21-8/29/21 o 282 interactions • Bella Terra • o Operated weekends only from 7/10/21-9/5/21 o 215 interactions Publication Distribution • Design and produce 18 different publications,including the official Huntington Beach Visitor Guide,Visitor Maps,Downtown HB and Sunset Beach Tear Off Maps,Downtown maps in foreign languages,Nightlife Guides,Activity Guides,Historical Walking Tours,and more. • 7,500+visitor guides handed out in person • • 100,000+visitor guides distributed to local businesses • 150,000+visitor guides&rack brochures distributed to locations across the Western United [Formatted:Space After: 0 pt States Partner Services • Partner Education Series-Launched in 2021;to date the series has held 23 events(15 virtual,8 in-person)with 466 attendees. • Partner Outreach Program-Launched 2021;Partner Services staff have connected with HE businesses 946 times.Visitor Services staff have referred visitors to HB businesses 6,921 times. • CEO/Partner Newsletters-Over 50 e-newsletters have been sent since March 2020,with 1,166 newsletter contacts,a 41%average open rate(20%industry standard),and a 2.82% average click rate(2.25%industry standard). Visitor Experiences • Meet in HB Pass-Launched in 2022 for Group Meetings,this program provided deals at 13 local businesses for meeting attendees • VHB Guided Walking Tours-Launched in 2022,the Historical Downtown HB Walking Tour and the Surf History Walking Tour are led by VHB staff twice a month.Special tours HBTBID Management District Plan 12 Octo o 201SMarch 27,2024,2023 VISIT b °. HUNTINGTON BEACH SURF CITY USA' 963 are led by Chris Epting a few times a year.To date,222 tickets have been sold for the VHB led walking tours and the Chris Epting tours have sold out. • Digital Surf City USA Banal Trail-Launched in Spring 2022 as a free digital pass with a phone app,this trail provided deals at 15 breweries and distilleries across HB and garnered 566 sign-ups. • Surf City USA Barrel Trail Passport-Launched in March 2023 as a physical booklet,the new passport is sold online and in-store for S5.To date,254 passports have been sold and 2 people have completed the full trail and redeemed the grand prize,a gift card to an HB • brewery/distillery of their choice. • Surf City USA Scavenger Hunt-Launched 2023,the Scavenger Hunt is a printed map targeted to families with young children.Participants redeem their completed Scavenger Hunt for a free coloring book at the Visitor Information Kiosk.In the first two months of the program,68 participants picked up their free coloring book. • Surf City USA Snapshots-Launched in May 2023,this digital trail leads visitors and residents to the best Instagrammable photo spots in HB. • Pedego Pilot Program—Pilot program launched summer of 2022,this mobile visitor information bicycle provided visitor info along the beach path and had 391 interactions over 3 months. • xajor Visitor Information Kiosk Capital Improvements.over the last several years._____ -{Formatted:Not Highlight jFormatted:Font:Garamond Other Visitor Enhancement s m ra Pro g ���`�Formatted:Not Highlight • Team Surf City USA Volunteer Program s\i Formatted:Font:Garamond • Launched Tune 2023 1 Formatted:Indent:Left: 0.5" • 8 volunteers enrolled In the program • Wavfinding Program --{Formatted:Space After: 0 pt • Completed 90%of installation and continue to conduct ongoing maintenance for installed HB branded Wayfinding Program signage throughout Huntington Beach. The$1 million-plus comprehensive wavfinding system was created in partnership with the City of Huntington Beach after receiving community input. • • The program remains ongoing with installation of remaining signs,including gateway signs,to take place over the coming years. • Installed and maintain digital information kiosk at the HB Pier as part of the Wayfinding Program. • Summer Beach Restrooms-Provide annual financial support for temporary summer beach restrooms and additional cleaning at the HB Pier.In 2023,VI-TB covered the entire cost for the program due to City budget cuts. • Downtown Transportation-Provided financial and marketing support for the launch of the Circuit electric car program in Downtown HB. Retail Program • In 2020,VHB launched a Surf City USA®retail program to help visitors promote the brand-----(Formatted:Space After: 0 pt when they return home.Currently,the store produces 26 items for sale in-store,online,and at pop-up booths,with gross sales of$33k since inception.Sales increased 88%in the last year Pandemic recovery initiatives • Open For Business Page and Map launched in March 2020 to help residents and visitors find needed resources. HBTBID Management District Plan VISIT 13 Octobcr 9,201SMarch 27,2024,2023 HUNTINGTON BEACH SURF CITY USA' • 964 • • • • OneHB Clean&Safe Pledge Digital Trail launched in October 2020 and garnered 787 pledges from HB businesses. Advocacy&Community Support • Provide resources and knowledge to support public policy initiatives that advance brand (Formatted:Space After: 0 pt awareness and reputation of Huntington Beach • Provide annual funding support for the Downtown Nighttime Ambassador Program,which is now operated by the Downtown Business Improvement District. • VFIB supports local events with community sponsorships for programs including the Wavanakers Pier Snowflakes,4th of July Parade,Blessing of the Waves,HB Surfing Walk of Fame,Cherry Blossom Festival,Great Day in the Stoke,Surf City Splash,Bolsa Chica Wetlands Conservancy,and Amigos de Bolsa Chica. • VHB staff volunteer on local committees and Boards of Directors,including the HB Chamber of Commerce,Downtown Business Improvement District,HB Surfing Walk of Fame,and the Alzheimer's Association Walk to End Alzheimer's. • VHB staff speak annually at local schools and non-profit organizations providing information about why tourism is a viable job industry and a strong economic support for the community. • Provide annual funding support for HB International Surfing Museum • VHB staff volunteer for local events and projects,such as the City of Huntington Beach's Community Service Day,the Wavmaker's Youth Shelter Annual Gala,the Wetlands& Wildlife Care Center's Baby Shower,and Project Self Sufficiency's Thanksgiving and Holiday gift giving program. ` {Formatted:Font:Garamond Administration Formatted:Indent:Left: 0.5",Space After: 0 pt, No Awards bullets or numbering • Named one of OC Business Journal's Best Places to Work in Orange County in 2023. f.Formatted:Space After: 0 pt • Earned FiredUp!Culture's 2022 Culture Achievement Award,which was awarded to nine organizations nationally across multiple industries who scored the highest on its Team Culture Index Survey. • Earned a'With Distinction"status with VHB's 2021 DMAP(Destination Management Accreditation Program)accreditation renewal through Destinations International.The"With Distinction"status has only been awarded to less than 15 organizations globally. Operations • Created new 2023-2026 Strategic Plan,to follow the 2020-2023 Strategic Plan. .-- Formatted:Space After: 0 pt • In 2019,relocated VHB office to ground level on 56 Street near PCH to provide better access for visitors.Created Welcome Center and Surf City USA®retail store in new office lobby. • Continue to perform annual unqualified audits. HBTBID Management District Plan VISIT 14 October 9,2018March 27,202'l,2023 HUNTINGTON BEACH • SURF CITY USA' 965 b - . increased from 2%to 3 A in 2011. Increases in assessed lodging business revenue by fiscal year arc listed below: • FY 11 15 9.2%, • FY 15 16 9.0% • FY 16 17 13.3% • FY 17 18 15.1%(Oct Jul> • Produced the destination's most successful PR activation in 2015 16,garnering national and international media exposure for the brand and numerous"best in the travel industry"awards. o Two GUINNESS WORLD RECORDS TM for"Largest surfboard"and"Most people tiding a surfboard at once." e Total media coverage: • 2,017 total placements • 500 million impressions • $9.6 million in immediate earned media value • 1,306 broadcast segments 2015 16,launched updated Surf City USA brand logo,leisure"Fonder"campaign and group "FIB Collection"campaign in 2016 17 across all marketing channels digital,print,broadcast, display,collateral,and visitor information services. •--Re-designed a national award winning;mobile centric responsive website in 2016 17, social media integration and expansion initiative and transitioned entire media marketing strategy to a robust digital based destination marketing program. The result? Qualified visitor user cessions increased 72%from 613,365 in 2011 15 to 1,112,816 in 2017 18,with soaring hotel overnight stay market demand and revenue increases(sec above hotel data). • Granted highly valued official verification on three major social media platforms (Faccbook, Twitter,Instagram). • Began coveting events and key destination location.,live on Facebook,Instagram and Twitter, adding paid social media posting in 2017 18.Results include progressive increases in followers o, o Prod cee _.ieee t e desti businesses to help their sales initiatives. • Launched Huntington Beach Welcomes You to Dream and Do campaign that includes videos and print collateral,as well as video promotion with Matador Media to reach 13 million adventure millennial travelers. 2017 18. • Generated over $27 million in earned media value and 620 million impressions across top travel publications(online,print and broadcast) from 2011 15 to present. • Received numerous national and international travel industry marketing and communications awards from the US Travel Association, HeapitalitT—Sales—afteleft b International,Visit California and the National Web Marketing Association. HBTBID Management District Plan VISIT 15 October 9,201SMarch 27,2024,2023 HUNTINGTON BEACH SURF CITY USA' 966 • Built the world's largest surfboard and an activation event that sparked$10 million in global media value,as well as produced a lasting community attraction,asset and point of pride. • Lcd community input sessions, which helped VHB in designing a million dollar plus community-wide comprehensive wayfinding system. The signs arc currently being installed throughout Huntington Beach. Salca FY 2011 15 to present: • Conference/Meeting leads processed by VHB:1,832 • Definite contracted/booked room nights by VHB:111,270 • Economic Impact of Croups to Huntington Beach:$111.39 million • Highlighted Croup Sales Programs e TLauneh of HP Cslkctio,i -1 plc h. 1. He ..B e .>, tr walkability aspect to groups that would traditional only consider a convention center. e 2016 Poschc Cars North4mc,ca is largest group ever booked into Huntington Beach with 3,700 contracted room nights at assessed businesses and Economic Impact of $1.1 million. e 20.1 c n , 1, n,,.,.,. a e ld rfi ms in cur,., r�.,e�w Huntington Beach at assessed businesses for a total of 1,100 room nights in 2019- • Service • 2016 Destinations International WOW Award for Surf City USA Ambassador Program. • 2018 Orange County Certified Tourism Ambassador(CTA)Company of the Year. b on busy evenings in downtown during Spring Break and summer. • Took over administration of Daytime Ambassador Program to provide 7 days a week roving hospitality services to guests in downtown Huntington Beach. • Expanded Surf City USA Shuttle from events only to include summer weekends. Summer weekend Coastal Loop shuttle passenger count by year: b o 2016:955 passengers • 0 2817:639 passengers 2018:1,273 passengers(with one more weekend to go) • Since 20 .f hosted 1 0 P,....n .,I format T R 1 r 1 r 1 10 L • In 2017, launched complimentary Event Information Booth service to provide visitor information to attendees at 20 events,including the Fastpitch Softball Tournament in Central Park, Surf City USA Marathon,Airshow, and AVP Championships. In 2017,launched the Surf City USA Volunteer Program to help staff Event Information Booths. • In 2017,launched the summer PCH Cleanup.This roadside cleanup focuses on the gateway 0 2017&2018:268 volunteers picked up 1,130 pounds of trash. • Developed guidelines for new Community Events Sponsorship Initiative to launch 2018 19. Administration HBTBID Management District Plan 16 Oct 0l8March 27,2024,2023 VISIT HUNTINGTON BEACH sun CITY USA" 967 • • Implcmcntcd the CRM (Customer Rclationship Management) system for bcttcr tracking of assessed business data. Academy program. • Implcmcntcd Blackbaud software for improved accounting,budgeting,and transparency. • Established a Reserve Policy consistent with industry practices. • Unqualified audits each year from 2011 15 to present. HBTBID Management District Plan VISIT 17 October 9,201SMarch 27,2024,2023 HUNTINGTON IV BEACH SURF CM tlSA' 968 • V. BOUNDARY The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Huntington Beach. Lodging business means:any structure,ox any portion of any structure which is occupied or intended or designed for.occupancy by transients for dwelling,lodging or sleeping purposes,and includes any hotel,inn,tourst home or house,motel,studio hotel bachelor hotel,lodging house,rooming house, at a fixed location,or other similar structure or portion thereof. The boundary;as-is shown.in the map below„currently includes twenty three(33}lodging businc.scs. A complete listing of lodgng businesses within the renewed HBTBID can be found in Appendix 2. ti � : 7, 'r Crstden Set` R t i ' t z F � �;° �� gym.• ", Bwilin ton P . a , :� ` 1 Beach b? ix4� p t QY I g k ; �`y ' HBTBID Management District Plan VISIT 18 O er 9, SMarch 27,2021,2023 IFHUNTINGTON BEACH SURE COY USA' 969 GARDE7ROVE FREEWAY .� E GAROEN SzROVE FREE4'Y aos �r / s r a CITY OF d{LtNTfi1C3TOi' DCACfi. • 04, OQ I' sr PACIF,C OCEAN f , VI. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged,and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HBTBID funds are marketing.sales and tourism enhancement programs available only to assessed lodging businesses. A service plan budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual budget will be developed and approved by VHB. The table below illustrates the initial annual budget allocations. The total initial full year budget was anticipated to be is$5,000,000. Fiscal year 2019 covered&the five (5) month period from February to June 2019, resulting in a lower anticipated budget for the first five(5)months of HBTBID operation. HBTBID Management District Plan A VISIT 19 October 9,2013March 27,2021,2023 HUNTINBTON ti BEACH SURF CITY USA' 970 The table below illustrates the initial annual budget allocations reflecting the modified assessment rate. Beginning ApnilJuly 1,2024. or as soon as possible thereafter, due to the modified assessment rate the total initial full year assessment budget is anticipated to be approximately S10,000,000.Fiscal year the first three(3)months following the assessment rate modification. 2024 VHB PROPOSED MODIFIED BUDGET:Annual Assessment Budget$10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2%increase in TBID assessments,VHS forecasts its budget to be approximately$10M.This amount is reflected below. AB proposedx,mramx funded byTE gssestmems must be ma,v+ed by the VMB Board MM gthemmusl budget process and mutt adhere toe000wYgwemkngt xt000,eamentemendrtures. Contingency/Reserve City Admin Fee $500,000(5%) $100,000(1%) aF„ Administration $1,900,000(19%) Sales H Marketing $5,500,000(ES%) y s .raa Tourism Enhancement �'* •y... a ,✓ Programs $1,000,000(10%) • Includes Destination Product Development(OPO)and VisitnrServices Enhancements(VSt)Programs from 2019-2024 MOP 2024 VHB PROPOSED MODIFIED BUDGET:Annual Assessment Budget$10,000,000** •oVH6's FY23-24 budget is approximately$7 million.With a 2%increase in TBID assessments,The City forecasts VHB's FY 24-25 budget to be approximately$10.4M.This amount is reflected below. All proposed pregnms funded byia10 assessments must be appmaed by the VNB Board during the annual budget prams and must adhere do ssate lawn gumming these assessment expenditures. Contingency/Reserve City Admix Fee 5520,000(5%) 5104,000(196) Adm4dstratlon t ` 1 •� $1,976,000(19%) to 's ° ° °' Sales A Marketing $6,790,000(65%) Toursm Enhancement Programs • (10%) • Includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE)Programs from 2019-2024 MOP A • HBTBID Management District Plan VISIT 20 October 9,201SMarch 27,2021,2023 HUNTINGTON irBEACH SURF CITY USA' 971 kFormatted:Left Annual Assessment Budget - $10,000,000 Contingency/ Reserve,$500,000, City Admin.Fee, 5% $100,000,1% Tourism ® yam— Enhancement Programs, Jr $1,000,000,10% Administration, e • $1,900,000,19% Sales&Marketing, $6,500,000,65% Although actual revenues will fluctuate due to market conditions,the proportional allocations of the..--- Formatted:No widow/orphan control budget shall remain the same. However, the City and the VHB Board shall have the authority to adjust budget allocations between the categories by no more thanre-allocate up to fifteen percent (15%) of the budget allocation within the budgeted categories per year and submitted through the annual reportof the total budget per year. For example, if there is increased market competition, • S150,000 from the Tourism Enhancement Programs budget may be reallocated to the Sales & Marketing budget,staving within the authorized 15%reallocation limit. In the event of unforeseeable emergencies or unavoidable catastrophes that interrupt the expected course of business,by agreement of both the VHB Board and the City Manager(pr his/her designee),the City and VHB shall have the -{Formatted:Not Highlight authority to adjust budget categories by more than fifteen percent (15%) of the budget allocation Formatted:Not Highlight within the budgeted categories.For example,in the event of a pandemic resulting in an unprecedented decline in tourism,S3,000,000 from the Sales&Marketing budget may be reallocated to the Tourism Enhancement Programs budget to address unforeseen circumstances, exceeding 15% as allowed under the exceptional circumstances.At least annually,VHB will meet with the City Manager and or Formatted:Not Highlight designated staff to review accomplishments and funding priorities for the following year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the HBTBID,any and all assessment funds may be used for the costs of defending the HBTBID. Each budget category includes all costs related to providing that service,in accordance with Generally Accepted Accounting Procedures (GAAP).For example,the Tourism Enhanccmcnt ProgramsSales &Market in budget includes the cost of staff time dedicated to overseeing and implementing the tourism enhancementsales and marketing programs.Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget.The costs of an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the VHB on an'as-needed basis. Tourism Enhanccmcnt ProgramaSales&Marketing b ..sessee lodgi g b,.si.-.esses thrte._„l, the impleme.nta.:o.-. e f two sub progra..,.,s: sale.. _nd.na..k„ti g HBTBID Management District Plan Ot 21 March 27,2024,2023 tit VISITUN HT11dGTOFI BEACH SUPS CITY USA° 972 c .c n�,a;cth,g Formatted:Indent:Left: 0" The sales and marketing program will promote assessed lodging'businesses as tourist,meeting,and event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses,and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: {Formatted:Font:Garamond —Increased advertising and promotional programs in print.online.social media,and television ''f Formatted:Normal targeted at potential visitors to drive overnight visitation and room sales. • ker. .-i.ased advtising.grid pram a ra.,tiaal pr ,ns in p$nt,erilir�.,social media,and tcl,. i to t.dg,ced': - l Formatted:Font:Garamond Formatted:List Paragraph,Indent:Left: -0.25",Bulleted- • Level:1+Aligned at: 0.25"+Indent at: 0.5" • Website enhancements and updates; Formatted:List Paragraph,Bulleted+Level:1+Aligned a Pates; 0.25"+Indent at: 0.5" •— Formatted:Font:Garamond • Strategic advertising and marketing agency support; ',� .. {Formatted:Font:Garamond • Contract with third party marketing and sales partners; ` {Formatted:List Paragraph,Bulleted+Level:1+Aligned a • Public relations,sales blitzes,missions,and calls; l 0.25"+Indent at: 0.5",Widow/Orphan control • Familiarization tours targeting key decision makers; ` Formatted:List Paragraph,Bulleted+Level:1+Aligned a • Preparation and production of collateral promotional materials such as visitor guides, 0.25"+Indent at: 0.5" brochures,flyers,and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists, leisure visitors, and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors;and • Cooperation with local agencies and film commission programs that attract overnight visitors. Tourism Enhancement Programs {Formatted:Font:Garamond,Bold,Not Highlight The Tourism Enhancement Program(TEP),will enhance the brand image and visitor experience while '1,Formatted:Normal, No bullets or numbering in destination, providing a benefit for guests of assessed lodging businesses by encouraging an t`\ Formatted:Font:Garamond,Not Highlight increased length of stay and appealing to target niche markets based on demographic and current Formatted:Font:Garamond,Not Highlight travel data.An incidental benefit also improves the resident experience throughout the year. , Formatted:Font:Garamond,Not Highlight • •-\ Formatted:Font:Garamond,Not Highlight I'isitor Services Enhancements ff The Visitor Services Enhancements (VSE) programTEP will provide funding for programs and t Formatted:Font:Garamond initiatives in destinations in accordance with VHB's current strategic plan.VHB will work with the '`.'f Formatted:Normal, No bullets or numbering City Manager and designated city staff to identify and prioritize any key public-private programs and l Formatted:Indent:Left: 0" initiatives, as detailed in the Management Agreement with the City and VHB, to be funded and implemented followingijeet-te-a.pproval of the VHB budget by the VHB Board of Directors and approval of the City budget by City Council.based on criteria to be developed by VHB and reviewed and approved with the City.The focus for the VSE TEP program will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach. VSE TEP maviaaay include the following programs which are designed to drive increased overnight visitation and room sales to assessed lodging businesses: • a Support of a long-term ambassador nd -.y—program with trained staff that*— Formatted:Font:Garamond Formatted:List Paragraph,Bulleted+Level:1+Aligned a supplement the current level of police presence to improve the overall destination experience 0.25"+Indent at: 0.5' HBTBID Management District Plan 22 Oc� OhMarch 27,2024,2023 44, VISIT IFHUNTINGTON BEACH SURF CITY USA' 973 and encourage overnight visitation or a fulltimc dedicated police officer to ensure tourism sa€et;; • Welcome center, event-based visitor information booths, and visitor information kiosk improvements including new current technology-driven visitor information enhancements; • Support of Signature Events that provide a proven positive economic impact and extend Surf City USA's brand reach,including programs and events that lead up to the LA28 Olympic games; • Support of other community events and programs that uphold the authenticity of the Surf Formatted:Font:Garamond City USA experience and create a greater sense of community for residents; • Team Surf City USA Volunteer Program to help community members become experienced event volunteers: • Pedestrian improvements linking the hotels and Downtown; Formatted: No bullets or numbering • Brand-centric visitor services training program for both public and private sector staff;and , -f Formatted:Font:Garamond • A—Support of a Ttrolley or transportation program connecting hotels to downtown Formatted:List Paragraph,Bulleted+Level:1+Aligned a Huntington Beach,The Pier,or other attractions:and 0.25"+Indent at: 0.5" • Development of activities and/or products designed to keep visitors in the destination for an increased duration of time,including Historical Walking Tours,Scavenger Hunt,Barrel Trail, - Surf City USA Snapshots,and other activities. rniche Formatted:Not Highlight • Additional future TEP programs may include destination product development programs to.., '`f Formatted:Font:Garamond provide support for public-private capital improvement projects in partnership with the City of ^.,'[Formatted:Normal Huntington Beach.If such a project is proposed,VHB will work collaboratively with the City Manager Formatted: No bullets or numbering and Public Works.Such projects,which are all aimed to attract overnight visitors,may include: — r{Formatted:Font:Garamond Formatted:List Paragraph,Bulleted+Level:2+Aligned a Surf City US.1 Destiri,ztiorr Product Dcrclopn,eut 0.25"+Indent at: 0.5" The Destination Product Development(DPD)program will provide funding to assist in the Formatted:List Paragraph,Left,Indent:Left: 0", building or financing of well vetted capital improvement projects which attract Overnight Widow/Orphan control visitors to assessed businesses.The program costs may be allocated up to ten percent [Formatted:List Paragraph,Left,Indent:Left: 0" {10.0°/e)of the annual budget. Working collaboratively-with the City Manager,VHB will develop specific DPD funding criteria and an award process.The City working with VHB, shall have equal input to make recommendations to the VHB Board for final project approval.Both the funding and awarding criteria will be developed in collaboration with the City Manager's office and other key community stakeholder groups.These DPD projects may include: • improvement projects in partnership vith the City of Huntington Beach.If a new project is proposed,VHB will work collaboratively with the City Manager and Public Works in accordance with the TBID Management Agreement terms.Such projects may include: • Additional wayfinding signage system enhancements including gateways and parking signage; .—Pedestrian improvements linking the beachfront hotels, Pacific City, Main Street, and 5th Street; Comprehensive and integrated wayfinding signage system enhancements including cignage to parking decks and lots; l Formatted:Font:Garamond • —_ Formatted:List Paragraph,Left,Bulleted+Level:2+ •--Art and cultural improvements, such as a public art trail; Aligned at: 0.25"+Indent at: 0.5",Widow/Orphan control overnight visitors; .[Formatted:Font:Garamond • Formatted:List Paragraph,Bulleted+Level:2+Aligned a 0.25"+Indent at: 0.5" • Gateway enhancements including on Pacific Coast Highway,,to attract overnight visitors; -(Formatted:Font:Garamond HBTBID Management District Plan 23 Oct March 27,2021,2023 VISIT tiHUNTNTINGTON BEACH stir CITY USA' 974 •—Bicycle and surfboard storage improvements: • • enhancements to wetlands experiences which attract overnight visitors, such as the Bolsa`- {Formatted:Font:Garamond Chica Ecological Reserve and the Huntington Beach Wetlands(between Newland Street and Formatted:List Paragraph,Bulleted+Level:1+Aligned a the Santa Ana River)that expose visitors to the value of the vital ecosystems; 0.25"+Indent at: 0.5" • Improvements to existing parks and sports facilities utilized by overnight visitors; • Safe and fun entertainment complex for young teens and adults utilized by overnight visitors; • Live music venue which attracts overnight visitors; • Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year round and attract overnight visitors; • Partnership with the City on mutually agreed upon projects that promote overnight visitor stays to Huntington Beach. Examples may include:Improvements to pier plaza,existing parks and sports facilities,Huntington Beach International Surfing Museum, the Surfing Walk of Fame, and creation of a new live music venue, and/or entertainment complex;Huntington Beach International Surfing Museum,and summer beach restroom porter cleaning assistance; • Destination product development research and.,master planning, and design of approved i-"{Formatted:Font:Garamond destination product development projects ands - {Formatted:Font:Garamond {Formatted:Font:Garamond —Infrastructure improvements that enhance Huntington Beach's competitive position to attract Formatted:List Paragraph,Bulleted+Level:1+Aligned a desirable special events year-round (e.g., improvements to beach restrooms, parking 0.25"+Indent at: 0.5" structures/lots, lighting, and summer beach restroom porter cleaning),Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year round, and attract additional overnight visitors from niche emerging markets,for example the cycling,physically disabled,and neurodivergent markets;and • Improvements to the City's downtown parking deck that make the overnight visitor experience more desirable. • Administration The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. Contingency/Reserve The budget includes a contingency line item to account for uncollected assessments,if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration,or renewal costs at the discretion of the VHB Board. Policies relating to contributions to the reserve fund,the target amount of the reserve fund,and expenditure of monies from the reserve fund shall be set by the VHB Board. City Administration Fee The City of Huntington Beach shall retain a fee equal to one percent(1%)of the amount of assessment collected to cover its costs of collection and administration.- B. Annual Budget The total nine(9)year and five(5)month improvement and service plan budget is-was projected at approximately $5,000,000 annually, or $47,083,333 cumulatively through 2028. Beginning on Apsi1Tuly 1, 2024, or as soon as possible thereafter, due to the modified assessment rate, the total HBTBID Management District Plan $4, VISIT 24 October 9,201SMarch 27,2024,2023 HUNTINGTON 111, BEACH SURF COY GSA• 975 HBTBID assessment budget for each subsequent full year of operation is projected to be approximately S10,000,000, or approximately $71,901,015 cumulatively through 2028. The initial "year" of the modified assessment rate is a partial year consisting of 0 months, for which the anticipated assessment budget is approximately S. This amount may fluctuate as sales and revenue increase or decrease at assessed lodging businesses,but is not expected to change significantly over the term. C. California Constitutional Compliance The HBTBID assessment is not a property-based assessment subject to the requirements of Proposition 218.Courts have found Proposition 218 limited the term`assessments'to levies on real . property.1 Rather, the HBTBID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the HBTBID, a "specific benefit" and a "specific government service."Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, "a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged,and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."2 The activities and improvements in this Plan are designed to provide targeted benefits directly to assessed lodging businesses,and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general,or parcels of land,but rather to serve the specific lodging businesses within the HBTBID.The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HBTBID, and are narrowly tailored. HBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in HBTBID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. The assessment imposed by this HBTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the HBTBID assessment,with tourism enhancement programs promoting lodging businesses paying the HBTBID assessment.The tourism enhancement programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the tourism enhancement programs that specifically benefit the assessed lodging businesses,the administration and contingency/reserve programs also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the HBTBID,in providing specific benefits to payors,may produce incidental benefits to non-paying businesses,the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that,"A specific benefit is not excluded from classification 1 Jarvis v. the City of San Diego 72 Cal App.4th 230 2 Cal.Const.art XIII C§ 1(e)(1) HBTBID Management District Plan VISIT 25 October 9,2013March 27,2021,2023 HUNTINGTON BEACH SURF CITY USA' 976 as a`specific benefit'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor."3 2. Specific Government Service The assessment may also be utilized to provide,"a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product."4 The legislature has recognized that marketing and promotions services like those to be provided by the HBTBID are government services within the meaning of Proposition 265. Further,the legislature has determined that "a specific government service is not excluded from classification as a `specific government service'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor."6 3. Reasonable Cost HBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VHB,and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from HBTBID-funded activities,be featured in lodging-specific advertising campaigns,and benefit from other HBTBID-funded programs. Non-assessed lodging businesses will not receive these,nor any other,HBTBID-funded services and benefits. The HBTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however,possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-HBTBID funds. HBTBID funds shall only be spent to benefit the assessed businesses,and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. D. Assessment The initial annual assessment rate is-was four percent(4%)of gross short-term room rental revenue. This Plan has been modified to increase the assessment rate to six percent(6%) of gross short-term room rental revenue.The modified assessment rate is effective beginning on Apinluly 1,2024,or as soon as possible thereafter,and shall remain in effect until the end of the HBTBID's term.-Based on the benefit received,assessments will not be collected on:stays of more than thirty(30)consecutive days;stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. The term"gross room rental revenue"as used herein means: the consideration charged,whether or not received,for the occupancy of space in a lodging business valued in money,whether to be received in money,goods,labor or otherwise,including all receipts,cash,credits and property and services of any kind or nature,without any deduction therefrom whatsoever. Gross room rental revenue shall 3 Government Code§53758(a) 4 Cal.Const.art XIII C§ 1(e)(2) 5 Government Code§53758(b) 6 Government Code§53758(b) HBTBID Management District Plan VISIT 26 October 9,201SMarch 27,2024,2023 rAaHUNTINGTON BEACH SURF COY USA' 977 not include any federal,state or local taxes collected,including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However,the assessed lodging business may,at its discretion,pass the assessment on to transients. The amount of assessment,if passed on to each transient,shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes,and each transient shall receive a receipt for payment from the business. If the HBTBID assessment is identified separately it shall be disclosed as the "HBTBID Assessment." As an alternative, the disclosure may include the amount of the HBTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act,Government Code§13995 et seq.and shall be disclosed as the"Tourism Assessment." The assessment is imposed solely upon,and is the sole obligation of the assessed lodging business • even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest The HBTBID shall reimburse the City of Huntington Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent HBTBID assessment are sought to be recovered in the same collection action by the City,the HBTBID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying. 1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent(10%)of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency: Any lodging business that fails to meet any delinquent remittance on or before a period of thirty(30) days following the date on which the remittance first became delinquent shall pay a second penalty of ten percent(10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent(10%)penalty first imposed. 3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud,a penalty of twenty-five percent(25%)of the amount of the assessment shall be added thereto in addition to the penalties stated in subparagraphs 1 and 2 of this subsection E. 4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent(0.5%)per month, or fraction thereof,on the amount of the assessment,exclusive of penalties,form the date on which the remittance first became delinquent until paid. 5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid. 6. City not Responsible for Uncollected Amounts: The City shall not be responsible for uncollected amounts. F. Time and Manner for Collecting Assessments The HBTBID assessment will be implemented beginning February 1,2019 and will continue for nine(9)years and five(5)months through June 30,2028. The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to VHB. HBTBID Management District Plan Al., VISIT 27 October 9,2018March 27,2024,2023HUNTIN6Tpll IF BEACH SURF CITY USA' 978 HBTBID Management District Plan 4 VISIT 28 Oco�7-20'18March 27,2024,2023 irHUNTINGTON BEACH SURF CITY USR' 979 VII. GOVERNANCE A. Owners'Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code§36651,to identify the body that shall implement the proposed program, which shall be the Owners'Association of the HBTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visit Huntington Beach will continue to serve as the Owners'Association for the HBTBID,upon execution of a renewed contract between the City and VHB. B. Brown Act and California Public Records Act Compliance An Owners'Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.The Owners' Association is,however,subject to government regulations relating to transparency,namely the Ralph M.Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners'Association acts as a legislative body under the Ralph M.Brown Act(Government Code§54950 et seq.). Thus,meetings of the VHB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners'Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly,the Owners'Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The VHB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code§36650(see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. HBTBID Management District Plan 29 Octela March 27,2024,2023 VISIT irHUNTINGTON BEACH SURF CITY USA' 980 APPENDIX 1—LAW ***THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT*** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18.PARKING PART 7.PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1.General Provisions ARTICLE 1.Declarations 36600.Citation of part This part shall be known and may be cited as the"Property and Business Improvement District Law of 1994." 36601.Legislative findings and declarations;Legislative guidance The Legislature finds and declares all of the following: (a)Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities,services,and activities in the business districts. (b)It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs,attract new businesses,and prevent the erosion of the business districts. (c)It is of particular local benefit to allow business districts to fund business related improvements, maintenance,and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d)Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city,even if property, businesses,or persons not assessed receive incidental or collateral effects that benefit them. (e)Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1)Crime reduction.A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2)Job creation. (3)Business attraction. (4)Business retention. (5)Economic growth. (6)New investments. (f)With the dissolution of redevelopment agencies throughout the state,property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities,and create a clean and safe environment. (g)Since the enactment of this act,the people of California have adopted Proposition 218,which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities,expenditures,and assessments by property-based districts.Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h)The act amending this section is intended to provide the Legislature's guidance with regard to this act,its interaction with the provisions of Article XIII D of the Constitution,and the determination of special benefits in property-based districts. (1)The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act,which discourages the use of assessments to fund needed improvements,maintenance, and activities in property-based districts,contributing to blight and other underutilization of property. (2)Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore,for special benefits to exist as a separate and distinct category from general benefits,the I .BTBID Management District Plan 30 Oc� ber 9,2018March 27,2021,2023 VISIT H0�1TIPdGTON ir BEACH SURF CITY USA' 981 incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3)It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments,and the manner in which special benefits should be determined. 36602.Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts,to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603.Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part.A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation,Limitation and Majority Protest Act of 1931(Division 4(commencing with Section 2800)). 36603.5.Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604.Severability This part is intended to be construed liberally and,if any provision is held invalid,the remaining provisions shall remain in full force and effect.Assessments levied under this part are not special taxes. ARTICLE 2.Definitions 36606."Activities" "Activities"means,but is not limited to,all of the following that benefit businesses or real property in the district: (a)Promotion of public events. (b)Furnishing of music in any public place. (c)Promotion of tourism within the district. (d)Marketing and economic development,including retail retention and recruitment. (e)Providing security,sanitation,graffiti removal,street and sidewalk cleaning,and other municipal services supplemental to those normally provided by the municipality. (f)Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5."Assessment" "Assessment"means a levy for the purpose of acquiring,constructing,installing,or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607."Business" HBTBID Management District Plan 31 VISIT October 9,2018March 27,2021,2023 '` HUNTINGTON if BEACH surf CITY USA° 982 "Business"means all types of businesses and includes financial institutions and professions. 36608."City" "City"means a city,county,city and county,or an agency or entity created pursuant to Article 1(commencing with Section 6500)of Chapter 5 of Division 7 of Title 1 of the Government Code,the public member agencies of which includes only cities,counties,or a city and county,or the State of California. 36609."City council" "City council"means the city council of a city or the board of supervisors of a county,or the agency,commission,or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4."Clerk" "Clerk"means the clerk of the legislative body. 36609.5."General benefit" "General benefit"means,for purposes of a property-based district,any benefit that is not a"special benefit"as defined in Section 36615.5. 36610."Improvement" "Improvement"means the acquisition,construction,installation,or maintenance of any tangible property with an estimated useful life of five years or more including,but not limited to,the following: (a)Parking facilities. (b)Benches,booths,kiosks,display cases,pedestrian shelters and signs. (c)Trash receptacles and public restrooms. (d)Lighting and heating facilities. (e)Decorations. (f)Parks. (g)Fountains. (h)Planting areas. (i)Closing,opening,widening,or narrowing of existing streets. (j)Facilities or equipment,or both,to enhance security of persons and property within the district. (k)Ramps,sidewalks,plazas,and pedestrian malls. (1)Rehabilitation or removal of existing structures. 36611."Management district plan";"Plan" "Management district plan"or"plan"means a proposal as defined in Section 36622. 36612."Owners'association" "Owners'association"means a private nonprofit entity that is under contract with a city to administer or implement improvements,maintenance,and activities specified in the management district plan.An owners'association may be an existing nonprofit entity or a newly formed nonprofit entity.An owners'association is a private entity and may not be considered a public entity for any purpose,nor may its board members or staff be considered to be public officials for any purpose.Notwithstanding this section,an owners'association shall comply with the Ralph M.Brown Act (Chapter 9(commencing with Section 54950)of Part 1 of Division 2 of Title 5 of the Government Code),at all times when matters within the subject matter of the district are heard,discussed,or deliberated,and with the California Public Records Act(Chapter 3.5(commencing with Section 6250)of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. "Property" "Property"means real property situated within a district. HBTBID Management District Plan 32 October n 201QM arch 27,2021,2023 VISIT iHUNTINGTON f BEACH SURF ens USA. 983 36614.5."Property and business improvement district";"District" "Property and business improvement district,"or"district,"means a property and business improvement district established pursuant to this part. 36614.6."Property-based assessment" "Property-based assessment"means any assessment made pursuant to this part upon real property. 36614.7."Property-based district" "Property-based district"means any district in which a city levies a property-based assessment. 36615."Property owner";"Business owner";"Owner" "Property owner"means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council."Business owner"means any person recognized by the city as the owner of the business."Owner"means either a business owner or a property owner.The city council has no obligation to obtain other information as to the ownership of land or businesses,and its determination of ownership shall be final and conclusive for the purposes of this part.Wherever this part requires the signature of the property owner,the signature of the authorized agent of the property owner shall be sufficient.Wherever this part requires the signature of the business owner,the signature of the authorized agent of the business owner shall be sufficient. 36615.5."Special benefit" "Special benefit"means,for purposes of a property-based district,a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements,maintenance,or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed.Special benefit excludes general enhancement of property value. 36616."Tenant" "Tenant"means an occupant pursuant to a lease of commercial space or a dwelling unit,other than an owner. ARTICLE 3.Prior Law ' 36617.Alternate method of financing certain improvements and activities;Effect on other provisions This part provides an alternative method of financing certain improvements and activities.The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)of this division)is valid and effective and is unaffected by this part. CHAPTER 2.Establishment 36620.Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5.Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city.A city may not form a district within the unincorporated territory of a county without the consent of the board HBTBID Management District Plan z VISIT 33 October 9,201SMarch 27,2024,2023 HUNTINGT06 t BEACH SURF'CITY USA' 984 of supervisors of that county.A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621.Initiation of proceedings;Petition of property or business owners in proposed district (a)Upon the submission of a written petition,signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied,the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed t o be levied,shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b)The petition of property or business owners required under subdivision(a)shall include a summary of the management district plan.That summary shall include all of the following: (1)A map showing the boundaries of the district. (2)Information specifying where the complete management district plan can be obtained. (3)Information specifying that the complete management district plan shall be furnished upon request. (c)The resolution of intention described in subdivision(a)shall contain all of the following: (1)A brief description of the proposed improvements,maintenance,and activities,the amount of the proposed assessment,a statement as to whether the assessment will be levied on property or businesses within the district,a statement as to whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities,and the location and extent of the proposed district. • (2)A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments,which shall be consistent with the requirements of Section 36623. 36622.Contents of management district plan The management district plan shall include,but is not limited to,all of the following: (a)If the assessment will be levied on property,a map of the district in sufficient detail to locate each parcel of property and,if businesses are to be assessed,each business within the district.If the assessment will be levied on businesses,a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries.If the assessment will be levied on property and businesses,a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b)The name of the proposed district. (c)A description of the boundaries of the district,including the boundaries of benefit zones,proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk.The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part.This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including,but not limited to,the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)).This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part.This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d)The improvements,maintenance,and activities proposed for each year of operation of the district and the maximum cost thereof.If the improvements,maintenance,and activities proposed for each year of operation are the same,a description of the first year's proposed improvements,maintenance,and activities and a statement that the same improvements,maintenance,and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. HBTBID Management District Plan 34 Octobe ,281 r 9 -BMarch 27,2024,2023 VISIT HUNTINGTON BEACH SUPS coy USA' 985 (e)The total annual amount proposed to be expended for improvements,maintenance,or activities,and debt service in each year of operation of the district.If the assessment is levied on businesses,this amount may be estimated based upon the assessment rate.If the total annual amount proposed to be expended in each year of operation of the district is not significantly different,the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f)The proposed source or sources of financing,including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business.The plan also shall state whether bonds will be issued to finance improvements. (g)The time and manner of collecting the assessments. (h)The specific number of years in which assessments will be levied.In a new district,the maximum number of years shall be five.Upon renewal,a district shall have a term not to exceed 10 years.Notwithstanding these limitations,a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds.The management district plan may set forth specific increases in assessments for each year of operation of the district. (i)The proposed time for implementation and completion of the management district plan. (j)Any proposed rules and regulations to be applicable to the district. (k) (1)A list of the properties or businesses to be assessed,including the assessor's parcel numbers for properties to be assessed,and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses,in proportion to the benefit • received by the property or business,to defray the cost thereof. (2)In a property-based district,the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement,the maintenance and operation expenses of a public improvement,or the cost of the activities.An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel.Only special benefits are assessable,and a property-based district shall separate the general benefits,if any,from the special benefits conferred on a parcel.Parcels within a property-based district that are owned or used by any city,public agency,the State of California,or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.The value of any incidental,secondary,or collateral effects that arise from the improvements,maintenance,or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (1)In a property-based district,the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m)In a property-based district,the total amount of general benefits,if any. (n)In a property-based district,a detailed engineer's report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o)Any other item or matter required to be incorporated therein by the city council. 36623.Procedure to levy assessment (a)If a city council proposes to levy a new or increased property assessment,the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b)If a city council proposes to levy a new or increased business assessment,the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code,except that notice shall be mailed to the owners of the businesses proposed to be assessed.A protest may be made orally or in writing by any interested person.Every written protest shall be filed with the clerk at or before the time fixed for the public hearing.The city council may waive any irregularity in the form or content of any written protest.A written protest may be withdrawn in writing at any time before the conclusion of the public hearing.Each • written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and,if a person subscribing is not shown on the official records of the city as the owner of the business,the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative.A written protest that does not comply with this section shall not be counted in determining a majority protest.If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay HBTBID Management District Plan VISIT 35 October 9,201SMarch 27,2021,2023 * HUNTINGTON IF BEACH SURF CITY USA' 986 • 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent,no further proceedings to levy the proposed assessment against such businesses,as contained in the resolution of intention,shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c)If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment,the notice and protest and hearing procedure for the property assessment shall comply with subdivision(a),and the notice and protest and hearing procedure for the business assessment shall comply with subdivision(b).If a majority protest is received from either the property or business owners,that respective portion of the assessment shall not be levied.The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624.Changes to proposed assessments At the conclusion of the public hearing to establish the district,the city council may adopt,revise,change,reduce,or modify the proposed assessment or the type or types of improvements,maintenance,and activities to be funded with the revenues from the assessments.Proposed assessments may only be revised by reducing any or all of them.At the public hearing,the city council may only make changes in,to,or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance,and activities.Any modifications,revisions,reductions,or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625.Resolution of formation (a)If the city council,following the public hearing,decides to establish a proposed property and business improvement district,the city council shall adopt a resolution of formation that shall include,but is not limited to,all of the following: (1)A brief description of the proposed improvements,maintenance,and activities,the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses,or both within the district,a statement on whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities and the location and extent of the proposed district. (2)The number,date of adoption,and title of the resolution of intention. (3)The time and place where the public hearing was held concerning the establishment of the district. (4)A determination regarding any protests received.The city shall not establish the district or levy assessments if a majority protest was received. (5)A statement that the properties,businesses,or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6)A statement that the improvements,maintenance,and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments.The revenue from the levy of assessments within a district shall not be used to provide improvements,maintenance,or activities outside the district or for any purpose other than the purposes specified in the resolution of intention,as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided,but shall be limited to marketing or signage pointing to the district. (7)A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements,maintenance,and activities funded by the proposed assessments,and,for a property-based district,that property within the district will receive a special benefit. (8)In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b)The adoption of the resolution of formation and,if required,recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. HBTBID Management District Plan 36 March 27,2024,2023 VISIT t, HUNTINGTON BEACH suer CITY USA' 987 36626.Resolution establishing district If the city council,following the public hearing,desires to establish the proposed property and business improvement district,and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment,the city council shall adopt a resolution establishing the district.The resolution shall contain all of the information specified in Section 36625. 36627.Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626,the clerk shall record a notice and an assessment diagram pursuant to Section 3114.No other provision of Division 4.5(commencing with Section 3100)applies to an assessment district created pursuant to this part. 36628.Establishment of separate benefit zones within district;Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone.If the assessment is to be levied on businesses,the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business,or on each category of business within each zone. 36628.5.Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners,or a combination of the two,pursuant to this part.The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements,maintenance,and activities,provided that any property- based assessment conforms with the requirements set forth in paragraph(2)of subdivision(k)of Section 36622. 36629.Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment,modification,or disestablishment of a property and business improvement district apply to the establishment,modification,or disestablishment of benefit zones or categories of business.The city council shall,to establish,modify,or disestablish a benefit zone or category of business,follow the procedure to establish,modify,or disestablish a property and business improvement district. 36630.Expiration of district;Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision(h)of Section 36622,a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3.Assessments 36631.Time and manner of collection of assessments;Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment.Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax,and may provide for the same lien priority and penalties for delinquent payment.All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632.Assessments to be based on estimated benefit;Classification of real property and businesses;Exclusion of residential and agricultural property (a)The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district.The city council may HBTBID Management District Plan e, 37 Oet be•° "'8March 27,2021,2023 VISIT HUNTINGTON if BEACH SURF CITY USA' 988 classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b)Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c)Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments,and shall not be subject to any assessment pursuant to this part. 36633.Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626.Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment 36634.Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635.Request to modify management district plan The owners'association may,at any time,request that the city council modify the management district plan.Any modification of the management district plan shall be made pursuant to this chapter. 36636.Modification of plan by resolution after public hearing;Adoption of resolution of intention (a)Upon the written request of the owners'association,the city council may modify the management district plan after conducting one public hearing on the proposed modifications.The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications.If the modification includes the levy of a new or increased assessment,the city council shall comply with Section 36623.Notice of all other public hearings pursuant to this section shall comply with both of the following: (1)The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2)A complete copy of the resolution of intention shall be mailed by first class mail,at least 10 days before the public hearing,to each business owner or property owner affected by the proposed modification. (b)The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section.The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637.Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5(commencing with Section 3100),in a manner consistent with the provisions of Section 36627. CHAPTER 3.5.Financing 36640.Bonds authorized;Procedure;Restriction on reduction or termination of assessments (a)The city council may,by resolution,determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625,if the resolution of formation adopted pursuant to that section provides for the issuance of bonds,under the Improvement Bond Act of 1915(Division 10(commencing with Section 8500)) HBTBID Management District Plan 38 Octobc March 27,2024,2023if VISIT HUNTINGTON BEACH • SURF CITY USA' 989 or in conjunction with Marks-Roos Local Bond Pooling Act of 1985(Article 4(commencing with Section 6584)of Chapter 5 of Division 7 of Title 1 of the Government Code).Either act,as the case may be,shall govern the proceedings relating to the issuance of bonds,although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b)The resolution adopted pursuant to subdivision(a)shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625,set forth the estimated cost of those improvements,specify the number of annual installments and the fiscal years during which they are to be collected.The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c)Notwithstanding any other provision of this part,assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4.Governance 36650.Report by owners'association;Approval or modification by city council (a)The owners'association shall cause to be prepared a report for each fiscal year,except the first year,for which assessments are to be levied and collected to pay the costs of the improvements,maintenance,and activities described in the report.The owners' association's first report shall be due after the first year of operation of the district.The report may propose changes,including,but not limited to,the boundaries of the property and business improvement district or any benefit zones within the district,the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business,if a classification is used. (b)The report shall be filed with the clerk and shall refer to the property and business improvement district by name,specify the fiscal year to which the report applies,arid,with respect to that fiscal year,shall contain all of the following information: (1)Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2)The improvements,maintenance,and activities to be provided for that fiscal year. (3)An estimate of the cost of providing the improvements,maintenance,and activities for that fiscal year. (4)The method and basis of levying the assessment in sufficient detail to allow each real property or business owner,as appropriate,to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5)The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6)The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c)The city council may approve the report as filed by the owners'association or may modify any particular contained in the report and approve it as modified.Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651.Designation of owners'association to provide improvements,maintenance,and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements,maintenance,and activities described in the management district plan.If the management district plan designates an owners'association,the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5.Renewal 36660.Renewal of district;Transfer or refund of remaining revenues;District term limit HBTBID Management District Plan 39 ^eo 94018March 27,202'l,2023 b VISIT irNUNTINGTON BEACH SURF CITY USA' 990 (a)Any district previously established whose term has expired,or will expire,may be renewed by following the procedures for establishment as provided in this chapter. (b)Upon renewal,any remaining revenues derived from the levy of assessments,or any revenues derived from the sale of assets acquired with the revenues,shall be transferred to the renewed district.If the renewed district includes additional parcels or businesses not included in the prior district,the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district.If the renewed district does not include parcels or businesses included in the prior district,the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c)Upon renewal,a district shall have a term not to exceed 10 years,or,if the district is authorized to issue bonds,until the maximum maturity of those bonds.There is no requirement that the boundaries,assessments, improvements,or activities of a renewed district be the same as the original or prior district. CHAPTER 6.Disestablishment 36670.Circumstances permitting disestablishment of district;Procedure (a)Any district established or extended pursuant to the provisions of this part,where there is no indebtedness, outstanding and unpaid,incurred to accomplish any of the purposes of the district,may be disestablished by• resolution by the city council in either of the following circumstances: (1)If the city council finds there has been misappropriation of funds,malfeasance,or a violation of law in connection with the management of the district,it shall notice a hearing on disestablishment. (2)During the operation of the district,there shall be a 30-day period each year in which assessees may request disestablishment of the district.The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days.The next such 30-day period shall begin two years after the date of the establishment of the district.Each successive year of operation of the district shall have such a 30-day period.Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied,the city council shall pass a resolution of intention to disestablish the district.The city council shall notice a hearing on disestablishment. (b)The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section.The resolution shall state the reason for the disestablishment,shall state the time and place of the public hearing,and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district.The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district,as appropriate.The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners.The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund;Use of outstanding revenue collected after disestablishment of district (a)Upon the disestablishment or expiration without renewal of a district,any remaining revenues,after all outstanding debts are paid,derived from the levy of assessments,or derived from the sale of assets acquired with the revenues,or from bond reserve or construction funds,shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires.All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b)If the disestablishment occurs before an assessment is levied for the fiscal year,the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. HBTBID Management District Plan VISIT 40 October 9,201SMarch 27,2024,2023 HUNTINGTON IFBEACH SURE CITY USA' 991 A(Formatted Table r /A Formatted r //f Formatted r / f//,(Formatted r APPENDIX 2—ASSESSED BUSINESSES' %/( j t Formatted r Business Name I Identification Address,City,State,ZIP .1 ;i Formatted r Number j/, Formatted F. Hyatt Regency Huntington Beach Resort 21500 Pacific Coast Hwy,Huntington Beach,CA 92648 ; // Formatted r &Spa , ,, Formatted r The Waterfront Beach Resort,a Hilton 21100 Pacific Coast Hwy,Huntington Beach,CA 92648 I ; Formatted r Hotel - Formatted r Fasea Hotel&Spa777 Motor Inn 21080 Pacific Coast Hwy,Huntington Beach,CA 9264846240,/ , Formatted r Pacific Coast Hwy.,Huntington Bench,CA 92619 /, Formatted r •Kimpton Shorebreak ResortBench Inn 500 Pacific Coast Hwy,Huntington Beach,CA 9264818112 Beach Formatted M•at-el Blvd.,Huntington Bench,CA 92618 ,/. Formatted r •The Hotel Huntington BeachBest Western 7667 Center Ave,Huntington Beach,CA 9264716912 Pacific,•% __._..- -__ -- — _ Formatted r Harbour Inn&Suites Coast Hwy.,Sunset Beach,CA 90742 SpringHill Suites by MarriottBcst Western 7872 Edinger Ave,Huntington Beach,CA 9264719360 Beach%'-,Formatted r Surf City Blvd.,Huntington Beach,CA 92618 FormattedF. Comfort Inn&Suites Huntington 16301 Beach Blvd,Huntington Beach,CA 9264716301 Beach,/-- Formatted r BeachComfort Suitcs Huntington Beach Blvd.,Huntington Bench,CA 92617 / Formatted r Extended Stay AmericaExtcndcd Stay 5050 Skylab Rd,Huntington Beach,CA 926475050 Skylab Rd.., Formatted E America Huntington Bench,CA 92617 .- Formatted r Huntington SuitesHotcl Europa 7 971 Yorktown Ave,Huntington Beach,CA 926487561 Center'.__. Formatted F. #16,Huntington Bench,CA 92617 - Formatted Best Western Surf CityHuntington Beach- •19360 Beach Blvd,Huntington Beach,CA 92648800 Pacific Coast.._Formatted F. Jan Hwy.,Huntington Beach,CA 92648 Formatted Huntington Beach InnHuntington Suites 800 Pacific Coast Hwy,Huntington Beach,CA 926487971 - F. Yorktown Ave.,Huntington Beach,CA 92618 — FormattedF. r. Travelodge Ocean Frontlluntington Surf 17205 Pacific Coast Hwy.Sunset Beach,CA 90742720 Pacific .—.— Formatted Jaw Coast Hwy.,Huntington Bench,CA 92618 Formatted r Beach Inn MotelHyatt Regency 18112 Beach Blvd,Huntington Beach,CA 9264821500 Pacific;— Formatted r Huntington Bmch Resort and Spa Coast Hwy.,Huntington Bench,CA 92618 Formatted r Starlight InnKimpton Shorebreak Hotel 18382 Beach Blvd,Huntington Beach,CA 92648500 Pacific Coast— Formatted r Hwy.,Huntington Bench,CA 92618 Formatted r 777 Motor InnOcenn Surf Inn&Suites --116240 Pacific Coast Hwy,Huntington Beach,CA 9264916555`__. Formatted — r. Pacific Coast Hwy.,Sunset Beach,CA 90712 •Oceanview MotelOceaOceanvi ce""^+^'""^*el 16196 Pacific Coast Hwy,Huntington Beach,CA 926491619E Formatted r .. • .. Formatted r • Pacific Coast Hwy.,Huntington Beach,CA 92619 F. Best Western Harbour Inn&SuitesPace6912 Pacific Coast Hwy,Sunset Beach,CA 9074221080 Pacific Formatted a 1 Hotel&Spa Coast Hwy.,Huntington B och,CA 92648 _-- Formatted F. Ocean Surf Inn&SuitesQuality-Inn 16555 Pacific Coast Hwy,Sunset Beach,CA 9074217251 S. ' Formatted T. Suites Huntington Bench Bench Blvd.,Huntington Beach,CA 92617 Formatted _E Surf City InnS^^^^hill Suites by Marrio tt 16220 Pacific Coast Hwy,Huntington Beach,CA 926497872 Formatted r Edinger Ave.,Huntington Ben _ch,CA 92617 `�" Formatted r Huntington Surf InnS`, R, 720 Pacific Coast Hwy,Huntington Beach,CA 9264818382 Beach, Formatted Blvd.,Huntington Bench,CA 92618 r Formatted r Hotel EuropaSun n Sands Inn •7561 Center Ave,Huntington Beach,CA 926471102 Pacific Coast Formatted F. Hwy.,Huntington Beach,CA 92618 E. STR-2021-0158 7771 Ellis Avenue Huntington Beach CA 92648 ., \ Formatted F. STR-2021-0174 529 Lake Street,Huntington Beach CA 92648 Formatted Formatted r HBTBID Management District Plan ' VISIT 41 'tFormatted r October 9,2018March 27,2024,2023 HUNTINGTON IIBEACH SURF CITY USA' 992 Business Name/Identification , Address,City,State,ZIP —- Formatted Table Number - . n STR-2021-0060 9151 Adams Avenue Huntington Beach CA 92646 •—-- Formatted:Left STR-2021-0165 4542 Prelude Drive Huntington Beach CA 92649 •-----,: Formatted:Left STR-2022-0016 5922 Donlyn Drive Huntington Beach CA 92649 •----- Formatted:Left STR-2022-0033 207 11th Street,Huntington Beach CA 92648 •----- Formatted:Left STR-2022-0028 8462 Modale Drive Huntington Beach CA 92646 .-- Formatted:Left STR-2021-0155 112 8th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0036 16811 14th Street#1 Sunset Beach CA 90742 •------ Formatted:Left STR-2022-0053 16511 23rd Street#1 Sunset Beach CA 90742 • Formatted:Left STR-2021-0164 714 Oceanhill Drive Huntington Beach CA 92648 •-- Formatted:Left STR-2022-0035 912 Main Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0032 17162 Elm Lane,Huntington Beach CA 92647 Formatted:Left STR-2022-0039 16752 16th Street#1 Sunset Beach CA 90742 • — Formatted:Left STR-2021-0136 16571 S Pacific Avenue Sunset Beach CA 90742 •- --- Formatted:Left STR-2021-0166 2300 Delaware Street#1 Huntington Beach CA 92648 • Formatted:Left STR-2021-0152 231 1st Street#7 Huntington Beach CA 92648 •--- Formatted:Left STr-2022-0051 16651 S Pacific Avenue#1 Sunset Beach CA 90742 •--- Formatted:Left STR-2021-0091 16761 Bayview Drive Sunset Beach CA 90742 `---- Formatted:Left STR-2022-0056 17116 4th Street#2 Sunset Beach CA 90742 •-- -°- Formatted:Left STR-2022-0077 17029 S Pacific Avenue Sunset Beach CA 90742 - Formatted:Left STR-2022-0083 8101 Ellis Avenue Huntington Beach CA 92646 •------- Formatted:Left STR-2023-0049 20632 Goshawk Lane Huntington Beach CA 92646 •- -- Formatted:Left STR-2022-0049 16917 Park Avenue#2 Sunset Beach CA 90742 `----- Formatted:Left STR-2022-0073 8312 Snowbird Drive Huntington Beach CA 92646 `-- -- Formatted:Left STR-2022-0021 16385 S Pacific Avenue Sunset Beach CA 90742 `----- Formatted:Left STR-2022-0012 20731 Spindrift Lane Huntington Beach CA 92646 ` Formatted:Left STR-2022-0086 18091 Newland Street Huntington Beach CA 92646 •-- --- Formatted:Left STR-2022-0087 212 6th Street,Huntington Beach CA 92648 '- -- Formatted:Left STR-2022-0031 216 16th Street,Huntington Beach CA 92648 `- --- Formatted:Left STR-2022-0075 726 14th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0085 1106 Huntington Street Huntington Beach CA 92648 Formatted:Left STR-2022-0095 115 Huntington Street Huntington Beach CA 92648 Formatted:Left STR-2021-0169 17201 Sims Lane Huntington Beach CA 92649 Formatted:Left STR-2021-0146 16772 Pacific Coast Highway Sunset Beach CA 90742 Formatted:Left STR-2021-0133 610 Main Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0099 225 2"d Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0003 403 10th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0105 9192 Paddock Circle Huntington Beach CA 92646 Formatted:Left STR-2022-0100 19961 Estuary Lane Huntington Beach CA 92646 Formatted:Left STR-2022-0107 301 16th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0013 221 6th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0081 609 Lake Street,Huntington Beach CA 92648 t Formatted:Left STR-2022-0106 16591 Lucia Lane Huntington Beach CA 92647 - Formatted:Left STR-2022-0109 16841 S Pacific Avenue Sunset Beach CA 90742 ' Formatted:Left HBTBID Management District Plan ,�+ VISIT 42 October-9; RMarch 27,2024,2023 HUNTINGTON ill BEACH SURF CITY USA' 993 Business Name/Identification ' Address,City,State,ZIP •---- Formatted Table Number STR-2021-0040 4671 Los Patos Avenue Huntington Beach CA 92649 •---.. Formatted:Left STR-2022-0102 17891 Caledonia Circle Huntington Beach CA 92647 '---- Formatted:Left c STR-2023-0062 16421 S Pacific Avenue Sunset Beach CA 90742 •---- Formatted:Left STR-2023-0091 8331 Varas Circle Huntington Beach CA 92646 •---- Formatted:Left STR-2022-0117 6871 Oxford Drive Huntington Beach CA 92647 •—- Formatted:Left STR-2022-0122 520 9m Street,Huntington Beach CA 92648 • — Formatted:Left STR-2022-0082 60418th Street,Huntington Beach CA 92648 '------ Formatted:Left STR-2022-0126 1003 California Street#B Huntington Beach CA 92648 • Formatted:Left STR-2023-0092 16742 Bavview Drive Sunset Beach CA 90742 Formatted:Left STR-2023-0106 16361 S Pacific Avenue Sunset Beach CA 90742 -- Formatted:Left STR-2022-0004 306 14th Street,Huntington Beach CA 92648 ` Formatted:Left STR-2023-0110 16778 Pacific Coast Highway#A Sunset Beach CA 90742 •--— Formatted:Left STR-2023-0109 8231 Munster Drive Huntington Beach CA 92646 '---- Formatted:Left STR-2023-0098 5231 Meadowlark Drive Huntington Beach CA 92649 '--- Formatted:Left STR-2022-0124 6822 Sylvia Drive Huntington Beach CA 92647 -- Formatted:Left STR-2023-0118 16756 Pacific Coast Highway Sunset Beach CA 90742 — Formatted:Left STR-2021-0008 7561 Danube Drive Huntington Beach CA 92647 • Formatted:Left STR-2023-0116 16855 S Pacific Avenue#1 Sunset Beach CA 90742 •---- Formatted:Left STR-2023-0043 8261 Munster Drive Huntington Beach CA 92646 Formatted:Left STR-2022-0116 15311 Yorkshire Lane Huntington Beach CA 92647 Formatted:Left STR-2023-0095 512 14th Street,Huntington Beach CA 92648 '--- Formatted:Left STR-2023-0102 603 21st Street,Huntington Beach CA 92648 '-- -`Formatted:Left STR-2022-0110 6062 Kelsey,Circle Huntington Beach CA 92647 Formatted:Left STR-2022-0127 214 Goldenwest Street Huntington Beach CA 92648 •- Formatted:Left STR-2022-0071 17312 Lee Circle Huntington Beach CA 92647 '-- Formatted:Left STR-2021-0171 305 California Street#B Huntington Beach CA 92648 • Formatted:Left STR-2022-0118 15971 Wicklow Lane Huntington Beach CA 92647 ' Formatted:Left STR-2022-0084 5381 Kenilworth Drive Huntington Beach CA 92649 Formatted:Left STR-2023-0124 16575 5 Pacific Avenue#1 Sunset Beach CA 90742 Formatted:Left STR-2022-0134 19132 Stingray Lane Huntington Beach CA 92646 Formatted:Left STR-2022-0097 841 Frankfort Avenue Huntington Beach CA 92648 Formatted:Left STR-2022-0144 17151 Granada Lane Huntington Beach CA 92647 Formatted:Left STR-2021-0175 7651 Clay Avenue Huntington Beach CA 92648 Formatted:Left STR-2023-0117 6045 Summerdale Drive Huntington Beach CA 92647 - Formatted:Left STR-2022-0108 210 7th Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0089 17020 Edgewater Lane Huntington Beach CA 92649 `' Formatted:Left STR-2022-0094 16778 Bayview Drive#A Sunset Beach CA 90742 Formatted:Left STR-2023-0134 9302 Candlewood Drive Huntington Beach CA 92646 -- Formatted:Left STR-2022-0139 7562 Washington Drive Huntington Beach CA 92647 ` Formatted:Left STR-2023-0142 411 14th Street#C Huntington Beach CA 92648 Formatted:Left STR-2022-0140 17220 Courtney Lane Huntington Beach CA 92649 - Formatted:Left STR-2023-0127 16541 S Pacific Avenue Sunset Beach CA 90742 Formatted:Left STR-2023-0147 218 19th Street#B Huntington Beach CA 92648 •- - Formatted:Left HBTBID Management District Plan 4.- VISIT 43 October 9,2018March 27,2021,2023 HUNTINGTON if BEACH SURF cm'USA° 994 Business Name/Identification, Address,City;State,ZIP , ----- Formatted Table Number' STR-2023-0151 307 7th Street#C Huntington Beach CA 92648 ---- Formatted:Left STR-2023-0150 221 Chicago Avenue Huntington Beach CA 92648 '- -- Formatted:Left STR-2022-0119 4642 Minuet Drive Huntington Beach CA 92649 '-- Formatted:Left STR-2023-0133 20681 Chaucer Lane Huntington Beach CA 92646 4.---- Formatted:Left STR-2022-0005 • 409%6th Street,Huntington Beach CA 92648 '- - Formatted:Left STR-2023-0160 1508 Olive Avenue#A Huntington Beach CA 92648 — Formatted:Left STR-2022-0067 2212"d-Street,Huntington Beach CA 92648 - Formatted:Left ' STR-2022-0152 5131 Dovewood Drive Huntington Beach CA 92649 - Formatted:Left STR-2023-0112 16391 S Pacific Avenue#1 Sunset Beach CA 90742 Formatted:Left STR-2021-0151 427 Lake Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0111 5601 Rogers Drive Huntington Beach CA 92649 '--- Formatted:Left STR-2022-0088 426 Goldenwest Street Huntington Beach CA 92648 ' Formatted:Left STR-2022-0154 119 6th Street,Huntington Beach CA 92648 - Formatted:Left STR-2021-0112 - 14895 Sunnycrest Lane Huntington Beach CA 92647 ' Formatted:Left STR-2022-0158 17312 Norcon Circle Huntington Beach CA 92649 '-- Formatted:Left _ STR-2023-0187 323 19th Street#1 Huntington Beach CA 92648 '--- Formatted:Left STR-2023-0164 407 Alabama Street Huntington Beach CA 92648 '---- Formatted:Left STR-2023-0189 235 1st Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0163 1910 Alsuna Lane Huntington Beach CA 92648 ' Formatted:Left STR-2023-0193 16962 9th St 1,Sunset Beach CA 90742 . Formatted:Left STR-2023-0211 17012 N Pacific Ave Sunset Beach CA 90742 ' - Formatted:Left STR-2023-0198 17016 7th St,Sunset Beach CA 90742 '--- Formatted:Left STR-2022-0165 8142 Sterling Drive Huntington Beach CA 92646 - Formatted:Left STR-2022-0164 19142 Stingray Lane Huntington Beach CA 92646 ` - - Formatted:Left STR-2023-0196 1316 Alabama Street Huntington Beach CA 92648 " Formatted:Left STR-2022-0054 216 10th Street,Huntington Beach CA 92648 '- Formatted:Left STR-2022-0159 222 Chicago Avenue#B Huntington Beach CA 92648 '-- - Formatted:Left STr-2022-0150 9692 Durham Drive Huntington Beach CA 92646 "---------Formatted:Left STR-2022-0066 406 7th Street,Huntington Beach CA 92648 --- Formatted:Left STR-2022-0175 632 Indianapolis Avenue Huntington Beach CA 92648 '- Formatted:Left STR-2022-0168 16772 Broadway#4 Huntington Beach CA 92649 Formatted:Left STR-2022-0146 19821 Bushard Street Huntington Beach CA 92646 Formatted:Left STR-2022-0169 1411 Delaware Street#1 Huntington Beach CA 92648 ----- Formatted:Left STR-2022-0161 1915 Delaware Street Huntington Beach CA 92648 Formatted:Left STR-2023-0008 228 Chicago Avenue#1 Huntington Beach CA 92648 Formatted:Left STR-2022-0170 16561 Tiber Lane Huntington Beach CA 92647 -- Formatted:Left STR-2023-0011 3854 Humboldt Drive Huntington Beach CA 92649 ' - Formatted:Left STR-2022-0176 2015 California Street Huntington Beach CA 92648 Formatted:Left STR-2022-0157 8841 Jarrett Circle Huntington Beach CA 92647 Formatted:Left STR-2022-0166 14582 Aspen Circle Huntington Beach CA 92647 - Formatted:Left STR-2023-0010 1107 Lake Street Huntington Beach CA 92648 Formatted:Left STR-2022-0113 16681 Landau Lane Huntington Beach CA 92647 Formatted:Left STR-2022-0173 6421 Sligo Circle Huntington Beach CA 92647 Formatted:Left HBTBID Management District Plan VISIT 44 October 9,20JSMarch 27,202'l,2023 HUNTINGTON itBEACH SURF CITY USA' 995 Business Name/Identification, Address,City,,State,_ZIP, Formatted Table Number STR-2023-0023 215 Huntington Street#A Huntington Beach CA 92648 •----. Formatted:Left STR-2023-0018 636 Indianapolis Avenue Huntington Beach CA 92648 •----- Formatted:Left STR-2022-0172 18276 Lisa Lane,Huntington Beach CA 92646 •-- Formatted:Left STR-2022-0155 5782 Spa Drive,Huntington Beach CA 92647 •--- Formatted:Left STR-2023-0014 7651 Rhone Lane Huntington Beach CA 92647 •--- Formatted:Left STR-2023-0046 113 6th Street,Huntington Beach CA 92648 • Formatted:Left STR-2023-0016 210 6th Street,Huntington Beach CA 92648 •— Formatted:Left STR-2021-0123 447 Lake Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0026 946 11th Street,Huntington Beach CA 92648 • — Formatted:Left STR-2021-0172 6421 Jasmine Drive Huntington Beach CA 92648 • Formatted:Left STR-2023-0060 215 Portland Avenue Huntington Beach CA 92648 • - Formatted:Left STR-2023-0054 610 11th Street,Huntington Beach CA 92648 • Formatted:Left STR-2023-0058 222 18th Street#A Huntington Beach CA 92648 •-- Formatted:Left STR-2021-0103 16525 S Pacific Avenue Sunset Beach CA 90742 •— Formatted:Left STR-2023-0039 743 13th Street,Huntington Beach CA 92648 '- Formatted:Left STR-2023-0040 6661 Wrenfield Drive Huntington Beach CA 92647 Formatted:Left STR-2023-0021 117 6th Street,Huntington Beach CA 92648 • Formatted:Left STR-2023-0047 8252 Michael Drive Huntington Beach CA 92647 ----Formatted:Left STR-2023-0029 218 18th Street#B Huntington Beach CA 92648 Formatted:Left STR-2023-0057 17882 Aldrich Drive#102 Huntington Beach CA 92647 • Formatted:Left STR-2023-0041 21891 Seacrest Lane Huntington Beach CA 92646 ' - Formatted:Left STR-2023-0033 20441 Regal Circle Huntington Beach CA 92646 Formatted:Left STR-2023-0036 213 17th Street#A Huntington Beach CA 92648 " Formatted:Left STR-2023-0078 14892 Quill Circle Huntington Beach CA 92647 •- Formatted:Left STR-2023-0103 8371 Friesland Drive Huntington Beach CA 92647 ' Formatted:Left STR-2023-0076 6921 Tucana Drive Huntington Beach CA 92647 '— —- Formatted:Left STR-2023-0051 510 Alabama Street Huntington Beach CA 92648 • Formatted:Left STR-2023-0056 2102 Pacific Coast Highway Huntington Beach CA 92648 ^- Formatted:Left STR-2023-0034 8131 Terry Drive Huntington Beach CA 92647 Formatted:Left STR-2022-0174 8192 Falmouth Drive Huntington Beach CA 92646 - Formatted:Left STR-2023-0075 16141 Malaga Lane#A Huntington Beach CA 926474. —• Formatted:Left STR-2023-0108 404 11th Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0125 16605 S Pacific Avenue Sunset Beach CA 90742 4-' Formatted:Left STR-2023-0111 10051 Cutty Sark Drive Huntington Beach CA 92646 '' Formatted:Left STR-2023-0055 16892 Baruna Lane Huntington Beach CA 92649 Formatted:Left STR-2023-0144 16782 Heritage Lane Huntington Beach CA 92647 • Formatted:Left STR-2023-0061 601 7th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0041 1020 Pacific Coast Highway#B Huntington Beach CA 92648---___ Formatted:Left STR-2023-0020 414 8th Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0184 20282 Colonial Circle Huntington Beach CA 92646 Formatted:Left STR-2023-0181 20662 Goshawk Lane Huntington Beach CA 92646 Formatted:Left STR-2023-0196 1316 Alabama Street 1 Huntington Beach CA 92648 Formatted:Left STR-2023-0188 19621 Occidental Lane Huntington Beach CA 92646 Formatted:Left HBTBID Management District Plan 45 March 27,2024,2023 VISIT lifHUNTEiTIHGTON BEACH SURF CITY USA' 996 Business Name/Identification a Address,City,State,ZIP'_ Formatted Table Number . STR-2023-0094 9632 Peppertree Drive Huntington Beach CA 92646 • -- Formatted:Left STR-2023-0210 111 7th Street,Huntington Beach CA 92648 •-----.Formatted:Left STR-2023-0218 201 Huntington Street 201 Huntington Beach CA 92648 •---- Formatted:Left STR-2023-0182 17052 Greentree Lane Huntington Beach CA 92649 •—- Formatted:Left STR-2023-0204 17622 Prescott Lane Huntington Beach CA 92647 Formatted:Left STR-2023-0217 15432 Shasta Lane Huntington Beach CA 92647 Formatted:Left STR-2023-0170 17082 5th Street 2 Sunset Beach CA 90742 Formatted:Left STR-2023-0213 10401 Monitor Drive Huntington Beach CA 92646 Formatted:Left STR-2023-0222 17165 S Pacific Avenue Sunset Beach CA 90742 ' Formatted:Left STR-2023-0180 16612 Graham Place Huntington Beach CA 92649 Formatted:Left STR-2024-0004 6701 Walton Drive Huntington Beach CA 92647 • Formatted:Left STR-2024-0008 21252 Banff Lane Huntington Beach CA 92646 '— Formatted:Left STR-2023-0165 610 17th Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0202 17026 7th Street,Sunset Beach CA 90742 ' Formatted:Left STR-2023-0136 16721 Phelps Lane Huntington Beach CA 92649 — Formatted:Left STR-2024-0003 119 9th Street,Huntington Beach CA 92648 ' Formatted:Left STR-2023-0178 510 9th Street,Huntington Beach CA 92648 ' Formatted:Left STR-2024-0014 17155 S Pacific Avenue Sunset Beach CA 90742 ---- Formatted:Left STR-2023-0149 16791 Bayview Drive Sunset Beach CA 90742 ' Formatted:Left STR-2023-0066 9971 Kings Canyon Drive Huntington Beach CA 92646 Formatted:Left STR-2023-0186 124 Main Street 303 Huntington Beach CA 92648 - Formatted:Left STR-2024-0015 8021 Mermaid Circle Huntington Beach CA 92646 '---- Formatted:Left STR-2024-0025 115 7th Street,Huntington Beach CA 92648 -- - Formatted:Left STR-2024-0032 516 Huntington Street Huntington Beach CA 92648 '--- Formatted:Left *As of September 2018March 20242023 [Formatted:Not Highlight **The list was developed with the most reliable information provided;however,the list may contain discrepancies.This list shall include any future to-be opened lodging businesses.Any lodging business that may have been missed in this list,but is still within the boundaries of the HBTBID,shall also be subject to assessment. • HBTBID Management District Plan VISIT 46 October 9,201SMarch 27,2024,2023 HUNTINGTON 0 BEACH SUS CITY USA` 997 April 25, 2024 To City of Huntington Beach STR Department: • My name is Julie Nguyen STR-2023-0108, residing at 404 11th St. I protest against the HBTGBID new proprosal to increase from 4%to 6%of gross short-term roon rental. Thank you for taking my protest into consideration. Sincerely, Julie Nguyen • 998 RESOLUTION NO. 2024-30 • A RESOLUTION OF THE CITY"COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS AND` MODIFYING THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (HBTBID) WHEREAS,the City Council of the City.of Huntington Beach(City) created the HBTBID in 2014 by Resolution No. 2014-72; and The City renewed the HBTBID. in 2018 by Resolution No. 2018-84, and adopted the current Management District Plan(MDP) of the HBTBID; and The Property and Business Improvement District Law of 1994(Streets and Highways Code §36600 et. seq.) authorizes the City to modify the MDP at the request of the Owners' Association; and The HBTBID Owners' Association, Visit Huntington Beach, has requested modification of the MDP; and A modified MDP has been prepared; and Lodging business owners who will pay more than fifty percent (50%) of the proposed assessment, as weighted according to the amount of the assessment to be paid by the petitioner, within the boundaries of the HBTBID have petitioned the City Council to modify the HBTBID; and Included with the petitions was the modified MDP summary that describes the modified - assessment to be levied on all lodging businesses, existing and in future, available for public occupancy within the HBTBID to pay for tourism enhancement programs, marketing & public relations, group sales, and other improvements and activities set forth in the MDP; and The assessed lodging businesses within the HBTBID will receive a specific benefit from the activities and improvements set forth in the MDP; and On April 16, 2024, at 6:00 p.m at the.Council Chambers, located at 2000 Main Street, Huntington Beach, CA 92648,the City Council adopted a Resolution of Intention,Resolution No. 2024-13; and The public meeting and public hearing to consider the modification of the HBTBID have been properly noticed in accordance with Stteets and Highways Code §36623; and On May 7, 2024, at 6:00 p.m.at the Council Chambers, located at 2000 Main Street, Huntington Beach, CA 92648,the City Council held,a public meeting regarding the modification of the HBTBID, and the City Council heard and received objections and protests, if any, to the modification of the HBTBID MDP; and 24-14552/342354 RESOLUTION NO. 2024-30 On June 4, 2024, at 6:00 p.m. at the Council Chambers,,located at 2000 Main Street, Huntington Beach, CA 92648, the City Council held a public hearing regarding the modification of the HBTBID, and the City Council heard and received all objections and protests, if any,to the modifications of the HBTBID MDP; and The City Clerk has determined.that there was no majority,protest. A majority protest is defined as written protests received from owners of businesses in the modifed HBTBID which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests are weighted based on the assessment proposed to be levied on each lodging business; and The City bears the burden of proving by a preponderance of the evidence that an assessment imposed for a specific benefit or specific government service is not a tax, that the amount is no more than necessary to cover the costs to the City in providing the specific benefit or specific government service, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the specific benefits or specific government services received by the payor. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: 1. _ The recitals set forth herein are adopted by the City Council as findings and they are true and correct. 2. The City Council hereby modifies the HBTBID MDP as memorialized in the SECOND AMENDMENT TO THE TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT(SECOND AMENDMENT).The modification of the HBTBID MDP will increase the assessment rate from percent(4%) of gross short-term room rental revenue to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1, 2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. The SECOND AMENDMENT contains additional minor changes. 3. The MDP presented at the final public hearing of the modification of the HBTBID held pursuant to the Property and Business Improvement District Law of 1994 is hereby adopted and approved as memorialized in the SECOND AMENDMENT and any attached exhibits. 4. The HBTBID modified pursuant to this Resolution will 'be subject to any amendments to the Property and Business Improvement District Law of 1994 (California Streets and Highways Code §36600 et. seq.). 5. The City Clerk, or-his or her designee, is directed to take all necessary actions to complete the modification of the HBTBID and to levy the assessments. 6. This Resolution shall take effect immediately upon its adoption by the City Council. 2 RESOLUTION NO. 2024-30 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the ' ' day of_ jytn,.QJ , 2024. `4i REVIEWED AND APPROVED: P . 1 Mayor. • INITIATED AND APPROVED: ity Manager N)/ Direc or f Community Development APPROVED AS ORM: ity ttorney 3 RESOLUTION NO. 2024-30 Exhibit A—Modified Management District Plan(Approved June 4, 2024) 4 PESO /Vd.-Z021/-SD k-Xfh 1T 'A 2019-2028 y : AVISIT HUNTINGTON BEACH SURF CITY USA° .,. mT. .- _ .�'+�/� ...�.. �y...- - .. ; \_ .. � 'ate= �'ww•Q....W.yd'i., •w._ - HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law of a re )? 1994, Streets and Highways Code section 36600 et seq. Contents I. OVERVIEW 2 II. BACKGROUND 4 III. IMPETUS TO RENEW THE HBTBID 5 IV. ACCOMPLISHMENTS 7 V. BOUNDARY 15 VI. BUDGET AND SERVICES 16 A. Annual Service Plan 16 B. Annual Budget 19 C. California Constitutional Compliance 19 D. Assessment 21 E. Penalties and Interest 21 F. Time and Manner for Collecting Assessments 22 VII. GOVERNANCE 22 A. Owners'Association 22 B. Brown Act and California Public Records Act Compliance 23 C. Annual Report 23 APPENDIX 1 —LAW 24 APPENDIX 2—ASSESSED BUSINESSES 35 Prepared by Civitas ♦ • ♦ CIVITAS PARTNERSHIPS•PROGRESS•PROSPERITY (800)999-7781 www.civitasadvisors.com I. OVERVIEW Developed by Visit Huntington Beach(VHB)and Huntington Beach lodging businesses,the renewed Huntington Beach Tourism Business Improvement District (HBTBID) is an assessment district that will continue to provide specific benefits to payors,by funding marketing and sales promotion efforts for assessed lodging businesses. The HBTBID was formed in 2014 for a five (5) year term;assessed lodging businesses subsequently renewed it for an additional nine (9) years and five (5) months. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach,as shown on the map in Section V. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales. Tourism Enhancement Programs,Marketing&Public Relations and Group Sales will increase overnight tourism and market payors as tourist,meeting and event destinations,thereby increasing room night sales. Budget: The total HBTBID annual assessment budget for each full year of operation was approximately$5,000,000. The initial"year" of operation was a partial year consisting of five (5) months, for which the assessment budget was approximately $2,083,333. Beginning July 1,2024,or as soon as possible thereafter,due to the modified assessment rate,the total HBTBID assessment budget for each full year of operation is anticipated to be approximately$10,000,000. Cost: The initial annual assessment rate was four percent (4%) of gross short-term room rental revenue. This Management District Plan (Plan) has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue.The modified assessment rate is effective beginning on July 1,2024,or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days;stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. Collection: The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed HBTBID has a nine(9) year and five(5) month life,beginning February 1, 2019 through June 30, 2028. Once per year, beginning on the anniversary of HBTBID renewal,there is a thirty(30)day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. The proposed time for implementation and completion of this Plan is February 1, 2019 through June 30, 2028. The modified assessment rate is set to take effect July 1,2024,or as soon as possible thereafter,and shall continue for the duration of the HBTBID's term.After the nine (9) year and five (5) month term, the HBTBID may be renewed for up to ten (10)years if lodging business owners support continuing the programs. HBTBID Management District Plan A VISIT 2 March 27,2024 H U N T I N G T O N irBEACH SURF CITY USA Management: Visit Huntington Beach will continue to serve as the HBTBID's Owners'Association. The Owners'Association is charged with managing funds and implementing programs in accordance with this Plan,and must provide annual reports to the City Council. HBTBID Management District Plan A VISIT 3 March 27,2024 HUNTINGTON BEACH SURF CITY USA II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over one hundred California destinations have followed suit. In recent years,other states have begun adopting the California model—Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita,Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities,like Portland, Oregon and Memphis,Tennessee have utilized their home rule powers to create TBIDs without a state law. California's TBIDs collectively Number of Districts Operating in raise over$300 million annually for California local destination marketing. With 120 110113 competitors raising their budgets, 99104 and increasing rivalry for visitor 100 88 dollars, it is important that 80 70 Huntington Beach lodging 60 61 111 businesses continue to invest in 40 29 32 38 46 stable, lodging-specific marketing 19 25 programs. 20 1 9 12 12III I TBIDs utilize the efficiencies of c�� oo° o°� o o o o oti oti� private sector operation in the ti ti ti market-based promotion of tourism districts. TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase room night sales. In California, TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government use; • TBIDs are customized to fit the needs of payors in each destination; • TBIDs allow for a wide range of services; • TBIDs are designed,created and governed by those who will pay the assessment;and • TBIDs provide a stable,long-term funding source for tourism promotion. HBTBID Management District Plan A VISIT 4 March 27,2024 HUNTINGTON BEACH SURF CITY USA III. IMPETUS TO RENEW THE HBTBID The existing HBTBID was established in 2014 with an assessment rate of three percent (3%) on overnight lodging revenues in Huntington Beach.While the HBTBID has been successful,there was still opportunity for growth in overnight visitation and room night sales revenue, especially during non-peak periods. At the time of HBTBID renewal in 2019,the City of Huntington Beach provided VHB with funding from Transient Occupancy Tax revenues,equal to one percent(1%) of overnight lodging revenues in Huntington Beach, pursuant to an MOU between the City and VHB. The City and VHB have terminated the MOU and entered into a new long-term agreement with the City that includes the City retaining 100%of all TOT revenues. In the renewal of the HBTIBD,the assessment rate was increased initially to four percent (4%) of gross short-term room rental revenue to ensure that tourism promotion funding was not decreased during the term of the renewed HBTBID. To continue to ensure that tourism promotion funding is adequate to remain competitive with other popular destinations, this Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue.The modified assessment rate is effective beginning on July 1,2024, or as soon as possible thereafter, and shall continue through the duration of the HBTBID's term. There are several reasons to modify this Plan. The most compelling reasons are: 1. The Need to Maintain/Increase Competitiveness, Occupancy and Overall Visitation As the number of overnight accommodations grow in Orange County, as well as in competitive California cities and counties, it is crucial that Huntington Beach maintains and increases its competitiveness,occupancy levels and visitation from targeted markets. These goals can be accomplished by increasing the HBTBID assessment rate from four percent(4%) to six percent (6%), which will generate approximately $10,000,000 per each full year in dedicated HBTBID funding for improvements and activities to increase room rentals for assessed lodging businesses located within the modified HBTBID. Additional HBTBID funds will continue to be used to implement new Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level: 1. Increase funding for destination sales and marketing programs, which will target key visitor markets,including markets that generate substantial overnight visitation to Huntington Beach and related visitor spending throughout the year,especially during non-peak seasons;and 2. Increase funding for the innovative HBTBID Visitor Services Enhancements program that adds new and/or repurposed projects to Huntington Beach's current brand offerings,which will increase year around overnight visitation by improving the overall HBTBID brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. 2. An Opportunity for Increasing City Revenues As an indirect result of the modified HBTBID, it is expected that as occupancy rates and overall visitation numbers increase, so too will the City's Transient Occupancy Tax revenue. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. 3. Stable Funding for Destination Marketing HBTBID Management District Plan A VISIT 5 March 27,2024 HUNTINGTON BEACH SURF CITY USA The current HBTBID was formed pursuant to the Property and Business Improvement District Law of 1994. The law allows a district to be renewed for up to ten (10) years without the need for City Council's annual approval to continue levying the assessment. Stakeholders elected to renew the HBTBID for a nine (9) year five (5) month term. The renewed term provides stable funding for destination marketing, visitor services enhancements, and management through June 30, 2028 and aligns the HBTBID's fiscal year to the City's fiscal year. This will provide stable funding for destination marketing,visitor services enhancements,and management. Many of Huntington Beach's competitors are at or exceeding the level of funding available for destination marketing in Huntington Beach. The table below lists the funding raised by tourism improvement districts for VHB's current comparative set. Location Amount Raised Assessment Rate TOT Total Guest Rate Charge Anaheim $17,500,000 2%room revenue 15% 17% Mammoth Lakes $10,800,000 1%room revenue 13% 14% Newport Beach $10,500,000 3%room revenue 10% 13% Palm Springs $17,000,000 1%room revenue 14% 15% San Diego $41,000,000 2%room revenue 10% 12% San Luis Obispo $10,400,000 1%room revenue 10% 11% Santa Barbara $10,700,000 2%room revenue 12% 14% *As of August 2023 HBTBID Management District Plan A VISIT 6 March 27,2024 HUNTINGTON BEACH SURF CITY USA IV. ACCOMPLISHMENTS (2019 — 2023) Assessed Lodging Business Revenue Assessed lodging business revenue has increased 27% since the HBTBID assessment was increased from 3% to 4%in 2019. Increases in assessed lodging business revenue by fiscal year are listed below: Fiscal % Note Year Increase FY 18-19 17% FY 19-20 (23%) (Covid hit in last quarter of fiscal year) FY 20-21 (6%) FY 21-22 41% FY 22-23 6% Marketing& Public Relations 2019/2020 • To adapt to the pandemic shutdowns,VHB revised its marketing mix from a more international/national blend of effort towards a more hyper local (Los Angeles/Orange County) and regional CA drive market focus. • In partnership with the City of Huntington Beach,launched OneHB Clean &Safe and Masks Up Surf City campaigns as part of its COVID-19 Recovery Plan. • Produced 360 virtual reality content and an Open for Business map as part of VHB's COVID- 19 Recovery Plan. • Participated in Virtual Trade Show: 10 pre-scheduled appointments from larger agencies and groups (AAA Northeast,HelmsBriscoe) to smaller agencies (Preferred ChoiceTravel, TravelStore Pasadena) in partnership with the Hyatt Regency Huntington Beach Resort& Spa • Date a Destination:Week-long event held by Gate 7 with the major Australian travel companies in Australia (Helloworld,Flight Centre),destination reps,and virtual one-on-one meetings. • Promoted Huntington Beach during the 2019 Great PacificAirshow as a VIP Chalet sponsor. 2020/2021 • Continued OneHB Clean&Safe and Masks Up Surf City pandemic safety campaigns. • Developed a Clean &Safe video series for each of the HB Collection properties that showcased their flexible meeting&events meeting spaces with 40% of its total square footage being outdoors and reiterated their commitment to ensuring a safe environment for their guests. • Incorporated Project Brief template to use for ideation and outlining all proposed large VHB projects. • Launched inaugural 12 Blocks of Cheer Campaign bringing together the four downtown resorts, Pacific City,and Downtown Main Street for a holiday campaign promoting local shops, businesses,and events. 40 participating businesses; 62 events/photo ops;35 deals;3,000+ map views. • Participated in Visit California's CallingAll Californians Co-op Marketing Program designed to jump start the California economy and drive responsible in-state travel. From August— November,VHB rolled out advertising on travel-focused digital platforms. Campaign HBTBID Management District Plan A VISIT 7 March 27,2024 HUNTINGTON BEACH SURF CITY U:A generated more than 9.6M impressions,2,600 room nights with a gross booking value of $555.9K. • Launched social media advertising campaign on Facebook and Pinterest targeting in-state travelers,complementing the Calling All Californians digital campaign. Garnered 3.2M impressions,over 82.7K video play-throughs,and over 15K clicks. • Media/PR efforts focused on garnering media coverage from hyper local outlets and influencers. • Authored 17 blogs with listicle themes (ex:Three Reasons to Travel to Huntington Beach During the Week). • Website Enhancements: Content Optimization and Navigation Architecture;SEO/SEM; Transitioned website to becoming ADA compliant. • Revamped paid social media program to align with the heavy audience shift to social media during the pandemic,leveraging the 24/7 cycle of the platforms to promote all relevant VHB marketing programs. Communities and engagement increased on Facebook and Instagram by 25%YoY. • Launched Datafy geo-location reporting dashboard tool which gains visitor and visitation insights from unique mobile device IDs that are observed while in destination. • Revised Visitor Guide with a 2020 pandemic lens and Rediscover Your Glow and Travel Responsibly themes. • Secured in-market agency representation in Canada,United Kingdom/Ireland,and Mexico. 790 total travel agents across all markets trained on selling Huntington Beach as a destination. 103 one-on-one trade show appointments with key international travel agents and tour operators. • Launched CA STAR Visit CA Training Tool used to train groups of travel agents and tour operators via an online course. • Brand USA Agent Training in Mexico City(200+ attendees). • Familiarization Tours with Air Canada,Discover North America (UK),British Airways (UK),and Virgin Holidays (UK). • Updated FILM HB Landing pages. FILM HB Data: 14 Film inquiries and 11 permitted shoots. 2021/2022 • In February 2021,launched inaugural Show Your HB Love campaign to highlight various businesses throughout Huntington Beach. • Launched #BeHere Marketing Campaign encouraging visitation and overnight stays in an open, outdoor,safer environment. The campaign's initial launch was during the summer and the second BeHere 2.0 flight leveraged Huntington Beach's elongated summer weather and events that extend well into the Fall,Winter and Spring seasons providing an opportunity for a second wave of summer leisure marketing-Summer 2.0—which overlays with the destination's needs period. Campaign garnered 15.2M impressions 32K clicks,reached 2.7M households and 122 cities.The booking component of the campaign generated 2.2M impressions,and 9,200 room nights with a gross booking value of$2.4M. • Participated in Visit California's What If Co-op Marketing Program: Launched in Spring 2021,the multi-layered campaign helped to stimulate California's tourism economy and inspire domestic travel. • The 2021 WSL US Open of Sung presented by Shisedo Marketing Campaign spotlighted Huntington Beach to over 15 countries around the globe.The campaign garnered$241.1K in media value, 110M social media impressions,3.4M video plays, 1.3M live video views, 80K page views to landing page,and 1,000 pieces of media coverage media. HBTBID Management District Plan A VISIT 8 March27,2024 HUNTINGTON BEACH SURF CITY USA • Promoted Huntington Beach during the 2021 PacificAirshow as a Chalet partner,hosting meeting planners and select VIP clients to promote HB as a meetings and events destination. • Social Media program resulted in Facebook and Instagram communities increasing by 15% YoY,and social media engagement levels surpassing VHB 15% benchmark increase by as much as 135%. • Launched Crowdriff-visual content marketing software for travel and hospitality brands to help source,manage,and publish user-generated content and short-form video from Huntington Beach locals and visitors. • Launched a TikTok page in October 2021. • Launched a Group Sales e-newsletter targeting meeting&event planners. Built a database of over 2,900 recipients with an open rate of 19.1%. • Launched a UGC (user generated content) program encouraging locals and visitors to share their content with us for use on our social platforms and other materials. Generated 869 pieces of content. • Launched digital advertising program that sells banner ad space on heavily trafficked pages of the VHB website,as well as paid opportunities on other VHB digital platforms (social media,e-newsletter, et al). • Launched robust,content-calendar-based blog program to build more relevant,SEO-& SEM-friendly content on the VHB website. 60 blogs authored. • Launched a quarterly photoshoot program developed to fill in imagery needs for all of VHB's marketing initiatives. Quarterly Sessions: Outdoor Activities around the Pier,Action Sports,Laidback Luxury,and Select Service Hotel Properties. • Partnered with four Orange County DMOs to form the Orange County Coastal Tourism Alliance in response to the Orange County Coastal oil spill.Developed a website to serve as a central communication hub for elected officials,the City,media,tourism industry and the public to share the most current information and accurate, factual updates about the spill impacts and recovery. • In January 2022,launched quarterly Visitor Intercept Surveys.The data collected over calendar year 2022 will be included as insight in the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Hosted 13 journalists and 15 influencers,including"Travel Mom"influencer Emily Kaufman. Garnered national and local coverage including Forbes Magazine,Conde Nast Traveler,JustLuxe,CNN,Fox 11 News,Brides,and Orange County Register. • Produced Surf City USA® Uncovered-a 20-episode series featuring unknown or"hidden" gems within Huntington Beach.The series targeted visitors and locals encouraging them to explore. • Revised Visitor Guide with the 2022 themes of Be Here and Clean &Safe and inspiring messaging sensitive to travel in a (transitioning) pandemic era. • FILM HB Data: 45 Film inquiries and 63 permitted shoots. 2022/2023 • Launched #BeHere 3.0 Marketing Campaign encouraging visitation and overnight stays in an open,outdoor,safer environment.This iteration of the campaign targeted Huntington Beach lifestyle pillars of outdoors,wellness, family,active sports,dining,and shopping. Campaign garnered 22.7M impressions 46.7K clicks,outpacing performance by 47%.The booking component of the campaign generated 3,360 room nights. • In response to Board direction to amplify channels to help boost referral business to hotels for the remainder of the fiscal year,VHB extended its #BeHere Soft Season Campaign,a highly targeted media buy investment developed to generate leisure bookings,increase web traffic to SurfCityUSA.com,and increase awareness of the destination,hotel,and resort properties. HBTBID Management District Plan A VISIT 9 March 27,2024 HUNTINGTON BEACH SURF CITY USA The extended campaign generated an additional 8.24M total impressions and 11,950 clicks to VHB's campaign landing page.The campaign surpassed performance projections by 53%and is tied to 2,917 unique hotel overnight visitors who saw VHB paid media ads up to 90 days before their stay. • Launched redesigned website.Website traffic increased 7%YoY with 1.3M sessions and 2.1M Pageviews annually.Won four awards: Hermes Creative Award - Gold;DotComm- Gold Winner;Internet Advertising Competition-Best of Industry Winner;29thAnnual Communicator Awards -Award of Excellence. • Updated all of VHB's SEM-and SEO-related platforms that track search engine and website performance to be compliant with Google Analytics Version 4(GA4) platform update before the switch went live on July 1,2023. • Produced quarterly destination performance reports for the HB Collection hotel properties, customized with destination-level and hotel-level data per property. • Promoted the inaugural A Great Day in the Stoke,a surfing competition which is open to all, but also happens to be the largest gathering of black surfers.The campaign secured 48 pieces of online media stories,4 broadcast interviews,and 3 print articles with a collective reach of 29.3M. • The 2022 ISA World Sung Games Marketing Campaign promoted Huntington Beach to over 2.1M LiveStream viewership from over 50 countries.The campaign,which received exposure in the Opening Ceremony,the competition broadcast,and Closing Ceremony and Parade,garnered 2M social media impressions, 132K daily interactions on ISA event page, and media coverage reaching 22K contacts. • The 2022 WSL Vans US Open of Sung Marketing Campaign spotlighted Huntington Beach to over 743M homes in 6 regions around the globe.The campaign garnered a collective 1.3K social media posts,38M social media impressions,2M VOD views,2.9M email impressions, 2.8M live video views, 195K page views to landing page,and 1,000 pieces of media coverage media.VHB also hosted LA28 organizing committee members allowing them to see first- hand HB's capabilities as a top-tier sporting event location. • Promoted Huntington Beach during the 2022 Pac#iicAirshow as a Chalet partner,hosting top meeting and event planners to showcase the destination as a unique place to meet.Along with Destination Analysts,produced 2022 PacificAirshow Economic Impact Report that showed it generated a$70M total direct economic impact for Huntington Beach. • Secured the 2023 ISA World Para Su ling Championships to occur in November 2023 (FY 23- 24). • Updated VHB Brand Style Guide. • Produced Huntington Beach Tourism Summit hearing from experts in the tourism,action sports, and entertainment industries,as well as economic forecasts for Huntington Beach and updates on regional infrastructure enhancements. • Designed new VHB trade show booth which debuted at IMEX 2022,a major trade show. • Produced the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Created a Major Events in HB Presentation deck highlighting all the benefits of hosting world- class sporting(and other) events in Huntington Beach. • Achieved goal of having 1,000 TikTok followers by fiscal year's end,unlocking additional backend features. • Launched KeyData Reporting Dashboard which tracks Short Term Vacation Rentals performance in the destination. • Launched Symphony Dashboard which pulls in all sources of economic,demographic, marketing,digital performance numbers into a central location for streamlined and customizable reporting. HBTBID Management District Plan A VISIT 10 March27,2024 HUNTINGTON irBEACH SURF CITY USA • Hosted 16 journalists and 7 influencers. Garnered national and local coverage including Forbes Magazine, Viator,Inside Hook, Daily Pilot, Travel Awaits, USA Today, and Orange County Register. • Hosted the California Cup Golf Invitational 2023.The 4-day long event brought together 75 international travel trade buyers and California suppliers for HB experiences,business development,and industry networking. Each year,CA Cup Invitational gives back to a local charity through funds raised from international and CA auction prizes. • VHB was the only U.S. destination invited to participate in Air Canada,the Air Canada Foundation,and CAN (Canucks Autism Network) community's inaugural Autism Aviation Day,VHB welcomed over 50 individuals including children on the autism spectrum.The event provided an opportunity for youth on the autism spectrum (and their families) to rehearse the entire pre-flight process;the goal is to increase autism accessibility and encourage future travel. • Conducted 733 total travel agents across all markets trained on selling Huntington Beach as a destination; 137 one-on-one trade show appointments with key international travel agents and tour operators;and 15 international familiarization tours. • Along with Destination Analysts,produced 2022 Pacific Airshow Economic Impact Report. • FILM HB Data: 126 Film inquiries and 111 permitted shoots. Sales FY 2019 to present: • Conference/Meeting leads processed by VHB: 2,900 • Definite contracted/booked room nights by VHB: 176,055 • Economic Impact of Groups to Huntington Beach: $121 million Highlighted Group Sales Programs • Success of HB Collection Beachwides—Annual Future Proof Wealth Festival,inaugural year 2022,taking place every September with over 3,000 room nights to the destination per year within the four HB Collection Resorts and a beachfront event activation. • Participation in Intermediary Preferred programs including HelmsBriscoe, ConferenceDirect,Prestige,and HPN Global which contributed to a substantial increase in lead development YOY. • Partnership with Orange County Sport Commission has generated new business opportunities for both our Select Service and Full-Service Hotel/Resort partners. Visitor& Partner Services Visitor Interactions (July 1.2019—June 30.2023) • Visitor Info Kiosk: 51,644 • VHB Office: 13,173 • Events: 10,017 • Mobile Bicycle Program: 391 Event Information Booths • 55 events attended • New branded equipment purchased in 2022 (10x10 pop-up canopy,cafe umbrella, flags,and tablecloths) HBTBID Management District Plan VISIT 11 March 27,2024 HUNTINGTON BEACH SURF CITY USA Local Pop-up Information Booths • Launched Summer of 2021 • Pacific City o Operated weekends only from 5/29/21-8/29/21 o 282 interactions • Bella Terra o Operated weekends only from 7/10/21-9/5/21 o 215 interactions Publication Distribution • Design and produce 18 different publications,including the official Huntington Beach Visitor Guide,Visitor Maps,Downtown HB and Sunset Beach Tear Off Maps,Downtown maps in foreign languages,Nightlife Guides,Activity Guides,Historical Walking Tours,and more. • 7,500+visitor guides handed out in person • 100,000+visitor guides distributed to local businesses • 150,000+visitor guides &rack brochures distributed to locations across the Western United States Partner Services • Partner Education Series -Launched in 2021;to date the series has held 23 events (15 virtual, 8 in-person) with 466 attendees. • Partner Outreach Program-Launched 2021;Partner Services staff have connected with HB businesses 946 times.Visitor Services staff have referred visitors to HB businesses 6,921 times. • CEO/Partner Newsletters -Over 50 e-newsletters have been sent since March 2020,with 1,166 newsletter contacts,a 41%average open rate (20%industry standard),and a 2.82% average click rate (2.25%industry standard). Visitor Experiences • Meet in HB Pass -Launched in 2022 for Group Meetings,this program provided deals at 13 local businesses for meeting attendees • VHB Guided Walking Tours -Launched in 2022, the Historical Downtown HB Walking Tour and the Surf History Walking Tour are led by VHB staff twice a month. Special tours are led by Chris Epting a few times a year.To date,222 tickets have been sold for the VHB led walking tours and the Chris Epting tours have sold out. • Digital Surf City USA Barrel Trail-Launched in Spring 2022 as a free digital pass with a phone app,this trail provided deals at 15 breweries and distilleries across HB and garnered 566 sign-ups. • Surf City USA Barrel Trail Passport-Launched in March 2023 as a physical booklet,the new passport is sold online and in-store for$5. To date,254 passports have been sold and 2 people have completed the full trail and redeemed the grand prize,a gift card to an HB brewery/distillery of their choice. • Surf City USA Scavenger Hunt-Launched 2023,the Scavenger Hunt is a printed map targeted to families with young children.Participants redeem their completed Scavenger Hunt for a free coloring book at the Visitor Information Kiosk. In the first two months of the program, 68 participants picked up their free coloring book. HBTBID Management District Plan A VISIT 12 March 27,2024 HUNTINGTON BEACH SURF CITY USA • Surf City USA Snapshots -Launched in May 2023,this digital trail leads visitors and residents to the best Instagrammable photo spots in HB. • Pedego Pilot Program—Pilot program launched summer of 2022,this mobile visitor information bicycle provided visitor info along the beach path and had 391 interactions over 3 months. • Major Visitor Information Kiosk Capital Improvements over the last several years. Other Visitor Enhancement Programs • Team Surf City USA Volunteer Program • Launched June 2023 • 8 volunteers enrolled in the program • Wayfinding Program • Completed 90% of installation and continue to conduct ongoing maintenance for installed HB branded Wayfinding Program signage throughout Huntington Beach. The $1 million-plus comprehensive wayfinding system was created in partnership with the City of Huntington Beach after receiving community input. • The program remains ongoing with installation of remaining signs,induding gateway signs, to take place over the coming years. • Installed and maintain digital information kiosk at the HB Pier as part of the Wayfinding Program. • Summer Beach Restrooms -Provide annual financial support for temporary summer beach restrooms and additional cleaning at the HB Pier. In 2023,VHB covered the entire cost for the program due to City budget cuts. • Downtown Transportation-Provided financial and marketing support for the launch of the Circuit electric car program in Downtown HB. Retail Program • In 2020,VHB launched a Surf City USA®retail program to help visitors promote the brand when they return home. Currently,the store produces 26 items for sale in-store,online,and at pop-up booths,with gross sales of$33k since inception. Sales increased 88%in the last year. Pandemic recovery initiatives • Open For Business Page and Map launched in March 2020 to help residents and visitors find needed resources. • OneHB Clean&Safe Pledge Digital Trail launched in October 2020 and garnered 787 pledges from HB businesses. Advocacy& Community Support • Provide resources and knowledge to support public policy initiatives that advance brand awareness and reputation of Huntington Beach • Provide annual funding support for the Downtown Nighttime Ambassador Program,which is now operated by the Downtown Business Improvement District. • VHB supports local events with community sponsorships for programs including the Waymakers Pier Snowflakes,4th of July Parade,Blessing of the Waves,HB Surfing Walk of Fame,Cherry Blossom Festival,Great Day in the Stoke,Surf City Splash,Bolsa Chica Wetlands Conservancy,and Amigos de Bolsa Chica. HBTBID Management District Plan A VISIT 13 March 27,2024 HUNTINGTON BEACH SURF CITY USA • VHB staff volunteer on local committees and Boards of Directors,including the HB Chamber of Commerce,Downtown Business Improvement District,HB Surfing Walk of Fame,and the Alzheimer's Association Walk to End Alzheimer's. • VHB staff speak annually at local schools and non-profit organizations providing information about why tourism is a viable job industry and a strong economic support for the community. • Provide annual funding support for HB International Surfing Museum • VHB staff volunteer for local events and projects,such as the City of Huntington Beach's Community Service Day,the Waymaker's Youth Shelter Annual Gala,the Wetlands & Wildlife Care Center's Baby Shower,and Project Self Sufficiency's Thanksgiving and Holiday gift giving program. Administration Awards • Named one of OC Business Journal's Best Places to Work in Orange County in 2023. • Earned FiredUp! Culture's 2022 Culture Achievement Award,which was awarded to nine organizations nationally across multiple industries who scored the highest on its Team Culture Index Survey. • Earned a'With Distinction" status with VHB's 2021 DMAP (Destination Management Accreditation Program) accreditation renewal through Destinations International.The'With Distinction" status has only been awarded to less than 15 organizations globally. Operations • Created new 2023-2026 Strategic Plan,to follow the 2020-2023 Strategic Plan. • In 2019,relocated VHB office to ground level on 5`h Street near PCH to provide better access for visitors. Created Welcome Center and Surf City USA®retail store in new office lobby. • Continue to perform annual unqualified audits. HBTBID Management District Plan A VISIT 14 March 27,2024 HUNTINGTON irBEACH SURF CITY USA V. BOUNDARY The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Huntington Beach. Lodging business means: any structure,or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling,lodging or sleeping purposes,and includes any hotel,inn,tourist home or house,motel,studio hotel,bachelor hotel,lodging house,rooming house, at a fixed location,or other similar structure or portion thereof. The boundary is shown in the map below.A complete listing of lodging businesses within the renewed HBTBID can be found in Appendix 2. x,t i 3r:wh Ua:r '� �Carry C.4smuas9n , 41,,P4' ; j i 1- , : NE 1 un e . on Famewm Vdkv a%rey — ' B., ,\.."; . \A, L ''\\ - ---, di I III 0 - stouffor ,,,, ....... lif HBTBID Management District Plan A VISIT I March 27,2024 H U N T I N GTO N tiBEACH SURF CITY USA VI. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HBTBID funds are marketing, sales and tourism enhancement programs available only to assessed lodging businesses. A service plan budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual budget will be developed and approved by VHB. The total initial full year budget was anticipated to be $5,000,000. Fiscal year 2019 covered the five (5) month period from February to June 2019, resulting in a lower anticipated budget for the first five (5) months of HBTBID operation. The table below illustrates the initial annual budget allocations reflecting the modified assessment rate. Beginning July 1,2024,or as soon as possible thereafter,due to the modified assessment rate,the total initial full year assessment budget is anticipated to be approximately$10,000,000. 2024 VHB PROPOSED MODIFIED BUDGET:Annual Assessment Budget$10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2%increase in TBID assessments,VHB forecasts its budget to be approximately$10M.This amount is reflected below. All proposed programs funded by TBID assessments must be approved by the VH8 Board dunng the annual budget process and must adhere to state laws governing these assessment eapeMiturs. Contingency/Reserve aty Admin Fee 5500,000(5%) $100,000(1%) Administration $1,900,000(19%) Sow&Marlonting ... .. SUOSAIM Tourism Enhancement :$ ' Programs $1,000,000(10%) • Includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE)Programs from 2019-2024 MOP Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the VHB Board shall have the authority to re- allocate up to fifteen percent (15%) of the budget allocation within the budgeted categories per year and submitted through the annual report. For example, if there is increased market competition, $150,000 from the Tourism Enhancement Programs budget may be reallocated to the Sales & Marketing budget,staying within the authorized 15D/o reallocation limit. In the event of unforeseeable emergencies or unavoidable catastrophes that interrupt the expected course of business,by agreement of both the VHB Board and the City Manager(or his/her designee),the City and VHB shall have the authority to adjust budget categories by more than fifteen percent (15%) of the budget allocation within the budgeted categories.For example,in the event of a pandemic resulting in an unprecedented decline in tourism,$3,000,000 from the Sales &Marketing budget may be reallocated to the Tourism Enhancement Programs budget to address unforeseen circumstances, exceeding 15% as allowed under the exceptional circumstances. At least annually, VHB will meet with the City Manager or designated staff to review accomplishments and funding priorities for the following year. A description of the proposed improvements and activities for the initial year of operation is below. The HBTBID Management District Plan A VISIT 16 March 27,2024 HUNTINGTON irBEACH SURF CITY USA same activities are proposed for subsequent years. In the event of a legal challenge against the HBTBID,any and all assessment funds may be used for the costs of defending the HBTBID. Each budget category includes all costs related to providing that service,in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the Sales &Marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing programs. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories,as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the VHB on an as-needed basis. Sales &Marketing The sales and marketing program will promote assessed lodging businesses as tourist,meeting,and event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses,and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: • Increased advertising and promotional programs in print, online, social media,and television targeted at potential visitors to drive overnight visitation and room sales; • Website enhancements and updates; • Strategic advertising and marketing agency support; • Contract with third party marketing and sales partners; • Public relations,sales blitzes,missions,and calls; • Familiarization tours targeting key decision makers; • Preparation and production of collateral promotional materials such as visitor guides, brochures, flyers,and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists, leisure visitors, and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors;and • Cooperation with local agencies and film commission programs that attract overnight visitors. Tourism Enhancement Programs The Tourism Enhancement Program(1'l P)will enhance the brand image and visitor experience while in destination, providing a benefit for guests of assessed lodging businesses by encouraging an increased length of stay and appealing to target niche markets based on demographic and current travel data.An incidental benefit also improves the resident experience throughout the year. The 1'l P will provide funding for programs and initiatives in destination in accordance with VHB's current strategic plan.VHB will work with the City Manager and designated city staff to identify and prioritize any key public-private programs and initiatives, as detailed in the Management Agreement with the City and VHB,to be funded and implemented following approval of the VHB budget by the VHB Board of Directors and approval of the City budget by City Council.The focus for the TEP will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach. TEP may include the following programs which are designed to drive increased overnight visitation and room sales to assessed lodging businesses: HBTBID Management District Plan A VISIT 17 March27,2024 HUNTINGTON BEACH SURF CITY USA • Support of a long-term ambassador program with trained staff that supplement the current level of police presence to improve the overall destination experience and encourage overnight visitation; • Welcome center, event-based visitor information booths, and visitor information kiosk improvements including current technology-driven visitor information enhancements; • Support of Signature Events that provide a proven positive economic impact and extend Surf City USA's brand reach, including programs and events that lead up to the LA28 Olympic games; • Support of other community events and programs that uphold the authenticity of the Surf City USA experience and create a greater sense of community for residents; • Team Surf City USA Volunteer Program to help community members become experienced event volunteers; • Brand-centric visitor services training program for both public and private sector staff; • Support of a trolley or transportation program connecting hotels to downtown Huntington Beach,The Pier,or other attractions;and • Development of activities and/or products designed to keep visitors in the destination for an increased duration of time,including Historical Walking Tours, Scavenger Hunt,Barrel Trail, Surf City USA Snapshots,and other activities. Additional future TEP programs may include destination product development programs to provide support for public-private capital improvement projects in partnership with the City of Huntington Beach.If such a project is proposed,VHB will work collaboratively with the City Manager and Public Works. Such projects,which are all aimed to attract overnight visitors,may include: • Additional wayfinding signage system enhancements including gateways and parking signage; • Pedestrian improvements linking the beachfront hotels,Pacific City,Main Street,and 5th Street; • Art and cultural improvements,such as a public art trail; • Gateway enhancements including on Pacific Coast Highway,to attract overnight visitors; • Bicycle and surfboard storage improvements; • Enhancements to wetlands experiences which attract overnight visitors, such as the Bolsa Chica Ecological Reserve and the Huntington Beach Wetlands (between Newland Street and the Santa Ana River) that expose visitors to the value of the vital ecosystems; • Partnership with the City on mutually agreed upon projects that promote overnight visitor stays to Huntington Beach. Examples may include:Improvements to pier plaza,existing parks and sports facilities, Huntington Beach International Surfing Museum, the Surfing Walk of Fame,and creation of a new live music venue,and/or entertainment complex; • Destination product development research, master planning, and design of approved destination product development projects and; • Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year-round (e.g., improvements to beach restrooms, parking structures/lots,lighting,and summer beach restroom porter cleaning). Administration The administration and operations portion of the budget shall be utilised for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. HBTBID Management District Plan A VISIT 18 March 27,2024 HUNTINGTON BEACH SURF CITY USA Contingency/Reserve The budget includes a contingency line item to account for uncollected assessments,if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration,or renewal costs at the discretion of the VHB Board. Policies relating to contributions to the reserve fund,the target amount of the reserve fund,and expenditure of monies from the reserve fund shall be set by the VHB Board. City Administration Fee The City of Huntington Beach shall retain a fee equal to one percent(1%)of the amount of assessment collected to cover its costs of collection and administration. B. Annual Budget The total nine (9) year and five (5) month improvement and service plan budget was projected at approximately$5,000,000 annually, or$47,083,333 cumulatively through 2028. Beginning on July 1, 2024, or as soon as possible thereafter, due to the modified assessment rate, the total HBTBID assessment budget for each subsequent full year of operation is projected to be approximately $10,000,000,or approximately$71,901,015 cumulatively through 2028.This amount may fluctuate as sales and revenue increase or decrease at assessed lodging businesses, but is not expected to change significantly over the term. C. California Constitutional Compliance The HBTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term `assessments' to levies on real property.1 Rather, the HBTBID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the HBTBID, a "specific benefit" and a "specific government service."Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, "a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."2 The activities and improvements in this Plan are designed to provide targeted benefits directly to assessed lodging businesses,and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general,or parcels of land,but rather to serve the specific lodging businesses within the HBTBID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HBTBID, and are narrowly tailored. HBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in HBTBID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. 1 Jarvis v. the City of San Diego 72 Cal App.4th 230 2 Cal. Const. art XIII C § 1(e)(1) HBTBID Management District Plan A VISIT 19 March 27,2024 HUNTINGTON BEACH SURF CITY USA The assessment imposed by this HBTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the HBTBID assessment,with tourism enhancement programs promoting lodging businesses paying the HBTBID assessment. The tourism enhancement programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the tourism enhancement programs that specifically benefit the assessed lodging businesses, the administration and contingency/reserve programs also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the HBTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses,the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that,"A specific benefit is not excluded from classification as a`specific benefit'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor."3 2. Specific Government Service The assessment may also be utilized to provide, "a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product."4 The legislature has recognized that marketing and promotions services like those to be provided by the HBTBID are government services within the meaning of Proposition 265. Further,the legislature has determined that "a specific government service is not excluded from classification as a `specific government service' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor."6 3. Reasonable Cost HBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VHB, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from HBTBID-funded activities, be featured in lodging-specific advertising campaigns, and benefit from other HBTBID-funded programs. Non-assessed lodging businesses will not receive these, nor any other,HBTBID-funded services and benefits. The HBTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-HBTBID funds. HBTBID funds shall only be spent to benefit the assessed businesses,and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. 3 Government Code § 53758(a) 4 Cal. Const. art XIII C § 1(e)(2) 5 Government Code § 53758(b) 6 Government Code § 53758(b) HBTBID Management District Plan A VISIT 20 March 27,2024 HUNTINGTON BEACH SURF CITY USA D. Assessment The initial annual assessment rate was four percent (4%) of gross short-term room rental revenue. This Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1,2024, or as soon as possible thereafter, and shall remain in effect until the end of the HBTBID's term. Based on the benefit received,assessments will not be collected on: stays of more than thirty(30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. The term "gross room rental revenue" as used herein means: the consideration charged,whether or not received,for the occupancy of space in a lodging business valued in money,whether to be received in money,goods,labor or otherwise,including all receipts,cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal,state or local taxes collected,including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However,the assessed lodging business may,at its discretion,pass the assessment on to transients. The amount of assessment,if passed on to each transient,shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the HBTBID assessment is identified separately it shall be disclosed as the "HBTBID Assessment." As an alternative, the disclosure may include the amount of the HBTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act,Government Code 13995 et seq.and shall be disclosed as the"Tourism Assessment." The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest The HBTBID shall reimburse the City of Huntington Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent HBTBID assessment are sought to be recovered in the same collection action by the City,the HBTBID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency: Any lodging business that fails to meet any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent(10%) penalty first imposed. 3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subparagraphs 1 and 2 of this subsection E. 4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent(0.5%) per month, HBTBID Management District Plan A VISIT 21 March27,2024 HUNTINGTON BEACH SURF CITY USA or fraction thereof, on the amount of the assessment,exdusive of penalties, form the date on which the remittance first became delinquent until paid. 5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid. 6. City not Responsible for Uncollected Amounts: The City shall not be responsible for uncollected amounts. F. Time and Manner for Collecting Assessments The HBTBID assessment will be implemented beginning February 1,2019 and will continue for nine (9) years and five(5)months through June 30,2028. The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to VHB. VII. GOVERNANCE A. Owners' Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651,to identify the body that shall implement the proposed program, which shall be the Owners' Association of the HBTBID as defined in Streets and Highways Code HBTBID Management District Plan A VISIT 22 March27,2024 HUNTINGTON BEACH SURF CITY USA §36612. The City Council has determined that Visit Huntington Beach will continue to serve as the Owners' Association for the HBTBID, upon execution of a renewed contract between the City and VHB. B. Brown Act and California Public Records Act Compliance An Owners'Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.The Owners' Association is,however,subject to government regulations relating to transparency,namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners'Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus,meetings of the VHB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners'Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners'Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The VHB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code§36650 (see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or dassification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. HBTBID Management District Plan A VISIT 23 March 27,2024 H U N T I N G T O N BEACH SURF CITY USA APPENDIX 1— LAW ***THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT*** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18.PARKING PART 7.PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1.General Provisions ARTICLE 1.Declarations 36600.Citation of part This part shall be known and may be cited as the"Property and Business Improvement District Law of 1994." 36601.Legislative findings and declarations;Legislative guidance The Legislature finds and declares all of the following: (a)Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities,services,and activities in the business districts. (b)It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs,attract new businesses,and prevent the erosion of the business districts. (c)It is of particular local benefit to allow business districts to fund business related improvements, maintenance,and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d)Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city,even if property, businesses,or persons not assessed receive incidental or collateral effects that benefit them. (e)Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1)Crime reduction.A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2)Job creation. (3)Business attraction. (4)Business retention. (5)Economic growth. (6)New investments. (f)With the dissolution of redevelopment agencies throughout the state,property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities,and create a clean and safe environment. (g)Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures,and assessments by property-based districts.Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h)The act amending this section is intended to provide the Legislature's guidance with regard to this act,its interaction with the provisions of Article XIII D of the Constitution,and the determination of special benefits in property-based districts. (1)The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts,contributing to blight and other underutilization of property. (2)Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore,for special benefits to exist as a separate and distinct category from general benefits,the HBTBLD Management District Plan A VISIT 24 March 27,2024 HUNTINGTON lirBEACH SURF CITY USA' incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3)It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602.Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603.Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation,Limitation and Majority Protest Act of 1931(Division 4(commencing with Section 2800)). 36603.5.Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604.Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect.Assessments levied under this part are not special taxes. ARTICLE 2.Definitions 36606."Activities" "Activities"means,but is not limited to,all of the following that benefit businesses or real property in the district: (a)Promotion of public events. (b)Furnishing of music in any public place. (c)Promotion of tourism within the district. (d)Marketing and economic development,including retail retention and recruitment. (e)Providing security,sanitation,graffiti removal,street and sidewalk cleaning,and other municipal services supplemental to those normally provided by the municipality. (f)Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5."Assessment" "Assessment"means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607."Business" HBTBID Management District Plan A VISIT 25 March 27,2024 HUNTINGTON 11 BEACH SURF CITY USA "Business"means all types of businesses and includes financial institutions and professions. 36608."City" "City"means a city,county,city and county,or an agency or entity created pursuant to Article 1 (commencing with Section 6500)of Chapter 5 of Division 7 of Title 1 of the Government Code,the public member agencies of which includes only cities,counties,or a city and county,or the State of California. 36609."City council" "City council"means the city council of a city or the board of supervisors of a county,or the agency,commission,or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4."Clerk" "Clerk"means the clerk of the legislative body. 36609.5."General benefit" "General benefit"means,for purposes of a property-based district,any benefit that is not a"special benefit"as defined in Section 36615.5. 36610."Improvement" "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including,but not limited to,the following: (a)Parking facilities. (b)Benches,booths,kiosks,display cases,pedestrian shelters and signs. (c)Trash receptacles and public restrooms. (d)Lighting and heating facilities. (e)Decorations. (f)Parks. (g)Fountains. (h)Planting areas. (i)Closing,opening,widening,or narrowing of existing streets. (j)Facilities or equipment,or both,to enhance security of persons and property within the district. (k)Ramps,sidewalks,plazas,and pedestrian malls. (1)Rehabilitation or removal of existing structures. 36611."Management district plan"; "Plan" "Management district plan"or"plan"means a proposal as defined in Section 36622. 36612."Owners'association" "Owners' association"means a private nonprofit entity that is under contract with a city to administer or implement improvements,maintenance,and activities specified in the management district plan.An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity.An owners'association is a private entity and may not be considered a public entity for any purpose,nor may its board members or staff be considered to be public officials for any purpose.Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9(commencing with Section 54950)of Part 1 of Division 2 of Title 5 of the Government Code),at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act(Chapter 3.5 (commencing with Section 6250)of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. "Property" "Property"means real property situated within a district. HBTBID Management District Plan A VISIT 26 March 27,2024 HUNTINGTON irBEACH SURF CM' USA 36614.5."Property and business improvement district";"District" "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part. 36614.6."Property-based assessment" "Property-based assessment"means any assessment made pursuant to this part upon real property. 36614.7."Property-based district" "Property-based district"means any district in which a city levies a property-based assessment. 36615."Property owner";"Business owner";"Owner" "Property owner"means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council."Business owner"means any person recognized by the city as the owner of the business."Owner"means either a business owner or a property owner.The city council has no obligation to obtain other information as to the ownership of land or businesses,and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner,the signature of the authorized agent of the business owner shall be sufficient. 36615.5."Special benefit" "Special benefit" means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements,maintenance,or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed.Special benefit excludes general enhancement of property value. 36616."Tenant" "Tenant"means an occupant pursuant to a lease of commercial space or a dwelling unit,other than an owner. ARTICLE 3.Prior Law 36617.Alternate method of financing certain improvements and activities;Effect on other provisions This part provides an alternative method of fmancing certain improvements and activities.The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)of this division)is valid and effective and is unaffected by this part. CHAPTER 2.Establishment 36620.Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5.Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city.A city may not form a district within the unincorporated territory of a county without the consent of the board HBTBID Management District Plan A VISIT 27 March 27,2024 HUNTINGTON BEACH SURF CITY USR. of supervisors of that county.A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621.Initiation of proceedings;Petition of property or business owners in proposed district (a)Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied,the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b)The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan.That summary shall include all of the following: (1)A map showing the boundaries of the district. (2)Information specifying where the complete management district plan can be obtained. (3)Information specifying that the complete management district plan shall be furnished upon request. (c)The resolution of intention described in subdivision(a)shall contain all of the following: (1)A brief description of the proposed improvements, maintenance, and activities,the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities,and the location and extent of the proposed district. (2)A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments,which shall be consistent with the requirements of Section 36623. 36622.Contents of management district plan The management district plan shall include,but is not limited to,all of the following: (a)If the assessment will be levied on property,a map of the district in sufficient detail to locate each parcel of property and,if businesses are to be assessed,each business within the district.If the assessment will be levied on businesses,a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses,a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b)The name of the proposed district. (c)A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part.This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including,but not limited to,the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d)The improvements,maintenance,and activities proposed for each year of operation of the district and the maximum cost thereof.If the improvements,maintenance,and activities proposed for each year of operation are the same, a description of the first year's proposed improvements, maintenance, and activities and a statement that the same improvements,maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. HBTBID Management District Plan A VISIT 28 March27,2024 HUNTINGTON IFBEACH SURF CITY USA (e)The total annual amount proposed to be expended for improvements,maintenance,or activities,and debt service in each year of operation of the district.If the assessment is levied on businesses,this amount may be estimated based upon the assessment rate.If the total annual amount proposed to be expended in each year of operation of the district is not significantly different,the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f)The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business.The plan also shall state whether bonds will be issued to finance improvements. (g)The time and manner of collecting the assessments. (h)The specific number of years in which assessments will be levied.In a new district,the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.Notwithstanding these limitations,a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds.The management district plan may set forth specific increases in assessments for each year of operation of the district. (i)The proposed time for implementation and completion of the management district plan. (j)Any proposed rules and regulations to be applicable to the district. (k) (1)A list of the properties or businesses to be assessed,including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business,to defray the cost thereof. (2)In a property-based district,the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement,the maintenance and operation expenses of a public improvement,or the cost of the activities.An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits,if any,from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency,the State of California,or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.The value of any incidental,secondary,or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (1)In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m)In a property-based district,the total amount of general benefits,if any. (n)In a property-based district, a detailed engineer's report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o)Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment (a)If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b)If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code,except that notice shall be mailed to the owners of the businesses proposed to be assessed.A protest may be made orally or in writing by any interested person.Every written protest shall be filed with the clerk at or before the time fixed for the public hearing.The city council may waive any irregularity in the form or content of any written protest.A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and,if a person subscribing is not shown on the official records of the city as the owner of the business,the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay HBTBID Management District Plan A VISIT 29 March27,2024 HUNTINGTON ivBEACH SURF CITY USA 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses,as contained in the resolution of intention,shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c)If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment,the notice and protest and hearing procedure for the property assessment shall comply with subdivision(a),and the notice and protest and hearing procedure for the business assessment shall comply with subdivision(b).If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624.Changes to proposed assessments At the conclusion of the public hearing to establish the district,the city council may adopt,revise,change,reduce,or modify the proposed assessment or the type or types of improvements,maintenance,and activities to be funded with the revenues from the assessments.Proposed assessments may only be revised by reducing any or all of them.At the public hearing,the city council may only make changes in,to,or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance,and activities.Any modifications,revisions,reductions,or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625.Resolution of formation (a)If the city council, following the public hearing, decides to establish a proposed property and business improvement district,the city council shall adopt a resolution of formation that shall include,but is not limited to,all of the following: (1)A brief description of the proposed improvements, maintenance, and activities,the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses,or both within the district,a statement on whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities and the location and extent of the proposed district. (2)The number,date of adoption,and title of the resolution of intention. (3)The time and place where the public hearing was held concerning the establishment of the district. (4)A determination regarding any protests received.The city shall not establish the district or levy assessments if a majority protest was received. (5)A statement that the properties,businesses,or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6)A statement that the improvements,maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention,as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided,but shall be limited to marketing or signage pointing to the district. (7)A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements,maintenance,and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8)In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b)The adoption of the resolution of formation and,if required,recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. HBTBID Management District Plan A VISIT 30 March 27,2024 HUNTINGTON lifBEACH SURF CITY USA 36626.Resolution establishing district If the city council,following the public hearing,desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment,the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627.Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626,the clerk shall record a notice and an assessment diagram pursuant to Section 3114.No other provision of Division 4.5 (commencing with Section 3100)applies to an assessment district created pursuant to this part. 36628.Establishment of separate benefit zones within district;Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone.If the assessment is to be levied on businesses,the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business,or on each category of business within each zone. 36628.5.Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners,or a combination of the two,pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph(2)of subdivision(k)of Section 36622. 36629.Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment,modification,or disestablishment of a property and business improvement district apply to the establishment,modification,or disestablishment of benefit zones or categories of business.The city council shall,to establish,modify,or disestablish a benefit zone or category of business,follow the procedure to establish,modify,or disestablish a property and business improvement district. 36630.Expiration of district;Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision(h)of Section 36622,a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3.Assessments 36631.Time and manner of collection of assessments;Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment.Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax,and may provide for the same lien priority and penalties for delinquent payment.All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632.Assessments to be based on estimated benefit;Classification of real property and businesses;Exclusion of residential and agricultural property (a)The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may HBTBID Management District Plan VISIT 31 March 27,2024 HUNTINGTON tiBEACH SURF CITY USA classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b)Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c)Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments,and shall not be subject to any assessment pursuant to this part. 36633.Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626.Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634.Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635.Request to modify management district plan The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636.Modification of plan by resolution after public hearing;Adoption of resolution of intention (a)Upon the written request of the owners'association,the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications.If the modification includes the levy of a new or increased assessment,the city council shall comply with Section 36623.Notice of all other public hearings pursuant to this section shall comply with both of the following: (1)The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2)A complete copy of the resolution of intention shall be mailed by first class mail,at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b)The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637.Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5(commencing with Section 3100),in a manner consistent with the provisions of Section 36627. CHAPTER 3.5.Financing 36640.Bonds authorized;Procedure;Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds,under the Improvement Bond Act of 1915(Division 10(commencing with Section 8500)) HBTBID Management District Plan A VISIT 32 March 27,2024 HUNTINGTON ivBEACH SURF CITY USA' or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4(commencing with Section 6584)of Chapter 5 of Division 7 of Title 1 of the Government Code).Either act,as the case may be, shall govern the proceedings relating to the issuance of bonds,although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b)The resolution adopted pursuant to subdivision(a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements,specify the number of annual installments and the fiscal years during which they are to be collected.The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c)Notwithstanding any other provision of this part,assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4.Governance 36650.Report by owners'association;Approval or modification by city council (a)The owners' association shall cause to be prepared a report for each fiscal year,except the first year,for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners' association's first report shall be due after the first year of operation of the district.The report may propose changes,including,but not limited to,the boundaries of the property and business improvement district or any benefit zones within the district,the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business,if a classification is used. (b)The report shall be filed with the clerk and shall refer to the property and business improvement district by name,specify the fiscal year to which the report applies,and,with respect to that fiscal year,shall contain all of the following information: (1)Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2)The improvements,maintenance,and activities to be provided for that fiscal year. (3)An estimate of the cost of providing the improvements,maintenance,and activities for that fiscal year. (4)The method and basis of levying the assessment in sufficient detail to allow each real property or business owner,as appropriate,to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5)The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6)The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c)The city council may approve the report as filed by the owners'association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651.Designation of owners'association to provide improvements,maintenance,and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements,maintenance,and activities described in the management district plan.If the management district plan designates an owners'association,the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5.Renewal 36660. Renewal of district;Transfer or refund of remaining revenues;District term limit HBTBID Management District Plan A VISIT 33 March 27,2024 H U N T I N G T O N BEACH SURF CITY USA (a)Any district previously established whose term has expired,or will expire,may be renewed by following the procedures for establishment as provided in this chapter. (b)Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues,shall be transferred to the renewed district.If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district,the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c)Upon renewal,a district shall have a term not to exceed 10 years,or,if the district is authorized to issue bonds,until the maximum maturity of those bonds.There is no requirement that the boundaries,assessments, improvements,or activities of a renewed district be the same as the original or prior district. CHAPTER 6.Disestablishment 36670.Circumstances permitting disestablishment of district;Procedure (a)Any district established or extended pursuant to the provisions of this part,where there is no indebtedness, outstanding and unpaid,incurred to accomplish any of the purposes of the district,may be disestablished by resolution by the city council in either of the following circumstances: (1)If the city council finds there has been misappropriation of funds,malfeasance,or a violation of law in connection with the management of the district,it shall notice a hearing on disestablishment. (2)During the operation of the district,there shall be a 30-day period each year in which assessees may request disestablishment of the district.The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district.Each successive year of operation of the district shall have such a 30-day period.Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied,the city council shall pass a resolution of intention to disestablish the district.The city council shall notice a hearing on disestablishment. (b)The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section.The resolution shall state the reason for the disestablishment,shall state the time and place of the public hearing,and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners.The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund;Use of outstanding revenue collected after disestablishment of district (a)Upon the disestablishment or expiration without renewal of a district,any remaining revenues,after all outstanding debts are paid,derived from the levy of assessments,or derived from the sale of assets acquired with the revenues,or from bond reserve or construction funds,shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b)If the disestablishment occurs before an assessment is levied for the fiscal year,the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. HBTBID Management District Plan A VISIT 34 March 27,2024 HUNTINGTON tiBEACH SURF CITY USA APPENDIX 2-ASSESSED BUSINESSES* Business Name/ Identification Address, City, State,ZIP Number Hyatt Regency Huntington Beach Resort 21500 Pacific Coast Hwy, Huntington Beach, CA 92648 &Spa The Waterfront Beach Resort, a Hilton 21100 Pacific Coast Hwy, Huntington Beach, CA 92648 Hotel Pasea Hotel &Spa 21080 Pacific Coast Hwy, Huntington Beach, CA 92648 Kimpton Shorebreak Resort 500 Pacific Coast Hwy, Huntington Beach, CA 92648 The Hotel Huntington Beach 7667 Center Ave, Huntington Beach, CA 92647 SpringHill Suites by Marriott 7872 Edinger Ave, Huntington Beach, CA 92647 Comfort Inn &Suites Huntington Beach 16301 Beach Blvd, Huntington Beach, CA 92647 Extended Stay America 5050 Skylab Rd, Huntington Beach, CA 92647 Huntington Suites 7971 Yorktown Ave, Huntington Beach, CA 92648 Best Western Surf City 19360 Beach Blvd, Huntington Beach, CA 92648 Huntington Beach Inn 800 Pacific Coast Hwy, Huntington Beach, CA 92648 Travelodge Ocean Front 17205 Pacific Coast Hwy, Sunset Beach, CA 90742 Beach Inn Motel 18112 Beach Blvd, Huntington Beach, CA 92648 Starlight Inn 18382 Beach Blvd, Huntington Beach, CA 92648 777 Motor Inn 16240 Pacific Coast Hwy, Huntington Beach, CA 92649 Oceanview Motel 16196 Pacific Coast Hwy, Huntington Beach, CA 92649 Best Western Harbour Inn &Suites 16912 Pacific Coast Hwy,Sunset Beach, CA 90742 Ocean Surf Inn &Suites 16555 Pacific Coast Hwy, Sunset Beach, CA 90742 Surf City Inn 16220 Pacific Coast Hwy, Huntington Beach, CA 92649 Huntington Surf Inn 720 Pacific Coast Hwy, Huntington Beach, CA 92648 Hotel Europa 7561 Center Ave, Huntington Beach, CA 92647 STR-2021-0158 7771 Ellis Avenue Huntington Beach CA 92648 STR-2021-0174 529 Lake Street, Huntington Beach CA 92648 STR-2021-0060 9151 Adams Avenue Huntington Beach CA 92646 STR-2021-0165 4542 Prelude Drive Huntington Beach CA 92649 STR-2022-0016 5922 Donlyn Drive Huntington Beach CA 92649 STR-2022-0033 207 11th Street, Huntington Beach CA 92648 STR-2022-0028 8462 Modale Drive Huntington Beach CA 92646 STR-2021-0155 112 8th Street, Huntington Beach CA 92648 STR-2022-0036 16811 14th Street#1 Sunset Beach CA 90742 STR-2022-0053 16511 23rd Street#1 Sunset Beach CA 90742 STR-2021-0164 714 Oceanhill Drive Huntington Beach CA 92648 STR-2022-0035 912 Main Street, Huntington Beach CA 92648 STR-2022-0032 17162 Elm Lane, Huntington Beach CA 92647 STR-2022-0039 16752 16th Street#1 Sunset Beach CA 90742 STR-2021-0136 16571 S Pacific Avenue Sunset Beach CA 90742 STR-2021-0166 2300 Delaware Street# 1 Huntington Beach CA 92648 STR-2021-0152 231 1st Street#7 Huntington Beach CA 92648 STr-2022-0051 16651 S Pacific Avenue#1 Sunset Beach CA 90742 HBTBID Management District Plan A VISIT 35 March 27,2024 HUNTINGTON irBEACH SURF CITY USA Business Name/ Identification Address, City, State,ZIP Number STR-2021-0091 16761 Bayview Drive Sunset Beach CA 90742 STR-2022-0056 17116 4th Street#2 Sunset Beach CA 90742 STR-2022-0077 17029 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0083 8101 Ellis Avenue Huntington Beach CA 92646 STR-2023-0049 20632 Goshawk Lane Huntington Beach CA 92646 STR-2022-0049 16917 Park Avenue#2 Sunset Beach CA 90742 STR-2022-0073 8312 Snowbird Drive Huntington Beach CA 92646 STR-2022-0021 16385 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0012 20731 Spindrift Lane Huntington Beach CA 92646 STR-2022-0086 18091 Newland Street Huntington Beach CA 92646 STR-2022-0087 212 6th Street, Huntington Beach CA 92648 STR-2022-0031 216 16th Street, Huntington Beach CA 92648 STR-2022-0075 726 14th Street, Huntington Beach CA 92648 STR-2022-0085 1106 Huntington Street Huntington Beach CA 92648 STR-2022-0095 115 Huntington Street Huntington Beach CA 92648 STR-2021-0169 17201 Sims Lane Huntington Beach CA 92649 STR-2021-0146 16772 Pacific Coast Highway Sunset Beach CA 90742 STR-2021-0133 610 Main Street, Huntington Beach CA 92648 STR-2022-0099 225 2nd Street, Huntington Beach CA 92648 STR-2022-0003 403 10th Street, Huntington Beach CA 92648 STR-2022-0105 9192 Paddock Circle Huntington Beach CA 92646 STR-2022-0100 19961 Estuary Lane Huntington Beach CA 92646 STR-2022-0107 301 16th Street, Huntington Beach CA 92648 STR-2022-0013 221 6th Street, Huntington Beach CA 92648 STR-2022-0081 609 Lake Street, Huntington Beach CA 92648 STR-2022-0106 16591 Lucia Lane Huntington Beach CA 92647 STR-2022-0109 16841 S Pacific Avenue Sunset Beach CA 90742 STR-2021-0040 4671 Los Patos Avenue Huntington Beach CA 92649 STR-2022-0102 17891 Caledonia Circle Huntington Beach CA 92647 STR-2023-0062 16421 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0091 8331 Varas Circle Huntington Beach CA 92646 STR-2022-0117 6871 Oxford Drive Huntington Beach CA 92647 STR-2022-0122 520 9th Street, Huntington Beach CA 92648 STR-2022-0082 604 18th Street, Huntington Beach CA 92648 STR-2022-0126 1003 California Street#B Huntington Beach CA 92648 STR-2023-0092 16742 Bayview Drive Sunset Beach CA 90742 STR-2023-0106 16361 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0004 306 14th Street, Huntington Beach CA 92648 STR-2023-0110 16778 Pacific Coast Highway#A Sunset Beach CA 90742 STR-2023-0109 8231 Munster Drive Huntington Beach CA 92646 STR-2023-0098 5231 Meadowlark Drive Huntington Beach CA 92649 STR-2022-0124 6822 Sylvia Drive Huntington Beach CA 92647 STR-2023-0118 16756 Pacific Coast Highway Sunset Beach CA 90742 HBTBID Management District Plan A VISIT 36 March 27,2024 HUNTINGTON irBEACH SURF CITY USA Business Name/ Identification Address, City, State, ZIP Number STR-2021-0008 7561 Danube Drive Huntington Beach CA 92647 STR-2023-0116 16855 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2023-0043 8261 Munster Drive Huntington Beach CA 92646 STR-2022-0116 15311 Yorkshire Lane Huntington Beach CA 92647 STR-2023-0095 512 14th Street, Huntington Beach CA 92648 STR-2023-0102 603 21st Street, Huntington Beach CA 92648 STR-2022-0110 6062 Kelsey Circle Huntington Beach CA 92647 STR-2022-0127 214 Goldenwest Street Huntington Beach CA 92648 STR-2022-0071 17312 Lee Circle Huntington Beach CA 92647 STR-2021-0171 305 California Street#B Huntington Beach CA 92648 STR-2022-0118 15971 Wicklow Lane Huntington Beach CA 92647 STR-2022-0084 5381 Kenilworth Drive Huntington Beach CA 92649 STR-2023-0124 16575 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2022-0134 19132 Stingray Lane Huntington Beach CA 92646 STR-2022-0097 841 Frankfort Avenue Huntington Beach CA 92648 STR-2022-0144 17151 Granada Lane Huntington Beach CA 92647 STR-2021-0175 7651 Clay Avenue Huntington Beach CA 92648 STR-2023-0117 6045 Summerdale Drive Huntington Beach CA 92647 STR-2022-0108 210 7th Street, Huntington Beach CA 92648 STR-2023-0089 17020 Edgewater Lane Huntington Beach CA 92649 STR-2022-0094 16778 Bayview Drive#A Sunset Beach CA 90742 STR-2023-0134 9302 Candlewood Drive Huntington Beach CA 92646 STR-2022-0139 7562 Washington Drive Huntington Beach CA 92647 STR-2023-0142 411 14th Street#C Huntington Beach CA 92648 STR-2022-0140 17220 Courtney Lane Huntington Beach CA 92649 STR-2023-0127 16541 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0147 218 19th Street#B Huntington Beach CA 92648 STR-2023-0151 307 7th Street#C Huntington Beach CA 92648 STR-2023-0150 221 Chicago Avenue Huntington Beach CA 92648 STR-2022-0119 4642 Minuet Drive Huntington Beach CA 92649 STR-2023-0133 20681 Chaucer Lane Huntington Beach CA 92646 STR-2022-0005 409%6th Street, Huntington Beach CA 92648 STR-2023-0160 1508 Olive Avenue#A Huntington Beach CA 92648 STR-2022-0067 2212nd Street, Huntington Beach CA 92648 STR-2022-0152 5131 Dovewood Drive Huntington Beach CA 92649 STR-2023-0112 16391 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2021-0151 427 Lake Street, Huntington Beach CA 92648 STR-2022-0111 5601 Rogers Drive Huntington Beach CA 92649 STR-2022-0088 426 Goldenwest Street Huntington Beach CA 92648 STR-2022-0154 119 6th Street, Huntington Beach CA 92648 STR-2021-0112 14895 Sunnycrest Lane Huntington Beach CA 92647 STR-2022-0158 17312 Norcon Circle Huntington Beach CA 92649 STR-2023-0187 323 19th Street#1 Huntington Beach CA 92648 HBTBID Management District Plan A VISIT 37 March 27,2024 HUNTINGTON BEACH SURF CITY USA' Business Name/ Identification Address, City, State,ZIP Number STR-2023-0164 407 Alabama Street Huntington Beach CA 92648 STR-2023-0189 235 15t Street, Huntington Beach CA 92648 STR-2022-0163 1910 Alsuna Lane Huntington Beach CA 92648 STR-2023-0193 16962 9th St 1,Sunset Beach CA 90742 STR-2023-0211 17012 N Pacific Ave Sunset Beach CA 90742 STR-2023-0198 17016 7th St,Sunset Beach CA 90742 STR-2022-0165 8142 Sterling Drive Huntington Beach CA 92646 STR-2022-0164 19142 Stingray Lane Huntington Beach CA 92646 STR-2023-0196 1316 Alabama Street Huntington Beach CA 92648 STR-2022-0054 216 10th Street, Huntington Beach CA 92648 STR-2022-0159 222 Chicago Avenue# B Huntington Beach CA 92648 STr-2022-0150 9692 Durham Drive Huntington Beach CA 92646 STR-2022-0066 406 7th Street, Huntington Beach CA 92648 STR-2022-0175 632 Indianapolis Avenue Huntington Beach CA 92648 STR-2022-0168 16772 Broadway#4 Huntington Beach CA 92649 STR-2022-0146 19821 Bushard Street Huntington Beach CA 92646 STR-2022-0169 1411 Delaware Street# 1 Huntington Beach CA 92648 STR-2022-0161 1915 Delaware Street Huntington Beach CA 92648 STR-2023-0008 228 Chicago Avenue# 1 Huntington Beach CA 92648 STR-2022-0170 16561 Tiber Lane Huntington Beach CA 92647 STR-2023-0011 3854 Humboldt Drive Huntington Beach CA 92649 STR-2022-0176 2015 California Street Huntington Beach CA 92648 STR-2022-0157 8841 Jarrett Circle Huntington Beach CA 92647 STR-2022-0166 14582 Aspen Circle Huntington Beach CA 92647 STR-2023-0010 1107 Lake Street Huntington Beach CA 92648 STR-2022-0113 16681 Landau Lane Huntington Beach CA 92647 STR-2022-0173 6421 Sligo Circle Huntington Beach CA 92647 STR-2023-0023 215 Huntington Street#A Huntington Beach CA 92648 STR-2023-0018 636 Indianapolis Avenue Huntington Beach CA 92648 STR-2022-0172 18276 Lisa Lane, Huntington Beach CA 92646 STR-2022-0155 5782 Spa Drive, Huntington Beach CA 92647 STR-2023-0014 7651 Rhone Lane Huntington Beach CA 92647 STR-2023-0046 113 6th Street, Huntington Beach CA 92648 STR-2023-0016 210 6th Street, Huntington Beach CA 92648 STR-2021-0123 447 Lake Street, Huntington Beach CA 92648 STR-2023-0026 946 11th Street, Huntington Beach CA 92648 STR-2021-0172 6421 Jasmine Drive Huntington Beach CA 92648 STR-2023-0060 215 Portland Avenue Huntington Beach CA 92648 STR-2023-0054 610 11th Street, Huntington Beach CA 92648 STR-2023-0058 222 18th Street#A Huntington Beach CA 92648 STR-2021-0103 16525 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0039 743 13th Street, Huntington Beach CA 92648 STR-2023-0040 6661 Wrenfield Drive Huntington Beach CA 92647 HBTBID Management District Plan A VISIT 38 March 27,2024 HUNTINGTON BEACH SURF CITY USA Business Name/ Identification Address, City, State,ZIP Number STR-2023-0021 117 6th Street, Huntington Beach CA 92648 STR-2023-0047 8252 Michael Drive Huntington Beach CA 92647 STR-2023-0029 218 18th Street#B Huntington Beach CA 92648 STR-2023-0057 7882 Aldrich Drive#102 Huntington Beach CA 92647 STR-2023-0041 21891 Seacrest Lane Huntington Beach CA 92646 STR-2023-0033 20441 Regal Circle Huntington Beach CA 92646 STR-2023-0036 213 17th Street#A Huntington Beach CA 92648 STR-2023-0078 14892 Quill Circle Huntington Beach CA 92647 STR-2023-0103 8371 Friesland Drive Huntington Beach CA 92647 STR-2023-0076 6921 Tucana Drive Huntington Beach CA 92647 STR-2023-0051 510 Alabama Street Huntington Beach CA 92648 STR-2023-0056 2102 Pacific Coast Highway Huntington Beach CA 92648 STR-2023-0034 8131 Terry Drive Huntington Beach CA 92647 STR-2022-0174 8192 Falmouth Drive Huntington Beach CA 92646 STR-2023-0075 16141 Malaga Lane#A Huntington Beach CA 92647 STR-2023-0108 404 11th Street, Huntington Beach CA 92648 STR-2023-0125 16605 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0111 10051 Cutty Sark Drive Huntington Beach CA 92646 STR-2023-0055 16892 Baruna Lane Huntington Beach CA 92649 STR-2023-0144 16782 Heritage Lane Huntington Beach CA 92647 STR-2023-0061 601 7th Street, Huntington Beach CA 92648 STR-2022-0041 1020 Pacific Coast Highway#B Huntington Beach CA 92648 STR-2023-0020 414 8th Street, Huntington Beach CA 92648 STR-2023-0184 20282 Colonial Circle Huntington Beach CA 92646 STR-2023-0181 20662 Goshawk Lane Huntington Beach CA 92646 STR-2023-0196 1316 Alabama Street 1 Huntington Beach CA 92648 STR-2023-0188 19621 Occidental Lane Huntington Beach CA 92646 STR-2023-0094 9632 Peppertree Drive Huntington Beach CA 92646 STR-2023-0210 111 7th Street, Huntington Beach CA 92648 STR-2023-0218 201 Huntington Street 201 Huntington Beach CA 92648 STR-2023-0182 17052 Greentree Lane Huntington Beach CA 92649 STR-2023-0204 17622 Prescott Lane Huntington Beach CA 92647 STR-2023-0217 15432 Shasta Lane Huntington Beach CA 92647 STR-2023-0170 17082 5th Street 2 Sunset Beach CA 90742 STR-2023-0213 10401 Monitor Drive Huntington Beach CA 92646 STR-2023-0222 17165 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0180 16612 Graham Place Huntington Beach CA 92649 STR-2024-0004 6701 Walton Drive Huntington Beach CA 92647 STR-2024-0008 21252 Banff Lane Huntington Beach CA 92646 STR-2023-0165 610 17th Street, Huntington Beach CA 92648 STR-2023-0202 17026 7th Street,Sunset Beach CA 90742 STR-2023-0136 16721 Phelps Lane Huntington Beach CA 92649 STR-2024-0003 119 9th Street, Huntington Beach CA 92648 HBTBID Management District Plan A VISIT 39 March 27,2024 HUNTINGTON BEACH SURF CITY USA Business Name/ Identification Address, City, State,ZIP Number STR-2023-0178 510 9th Street, Huntington Beach CA 92648 STR-2024-0014 17155 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0149 16791 Bayview Drive Sunset Beach CA 90742 STR-2023-0066 9971 Kings Canyon Drive Huntington Beach CA 92646 STR-2023-0186 124 Main Street 303 Huntington Beach CA 92648 STR-2024-0015 8021 Mermaid Circle Huntington Beach CA 92646 STR-2024-0025 115 7th Street, Huntington Beach CA 92648 STR-2024-0032 516 Huntington Street Huntington Beach CA 92648 *As of March 2024 **The list was developed with the most reliable information provided; however,the list may contain discrepancies.This list shall include any future to-be opened lodging businesses. Any lodging business that may have been missed in this list, but is still within the boundaries of the HBTBID,shall also be subject to assessment. HBTBID Management District Plan A VISIT 40 March 27,2024 HUNTINGTON BEACH SURF CITY USA' • Res. No. 2024-30 • STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, 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 June 4, 2024 by the following vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, Kalmick NOES: None ABSENT: None RECUSE: None Atm, q.64,214,1414) City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California SECOND AMENDMENT TO THE TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT This Second Amendment to THE TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT ("Agreement") is made and entered into as of this iP-Pt day of /G1/) , 2024 by and between the CITY OF HUNTINGTON BEACH, a Municipal Corporation("City"), and the VISIT HUNTINGTON BEACH ("VHB"), a California nonprofit 501 (c)(6) corporation, hereinafter jointly referred to as the (the "Parties"). RECITALS WHEREAS,the Parties pursuant to Resolution 2018-84 and the Management District Plan(the "Plan") have been collecting assessments levied by the HBTBID to fund activities and improvements described in the Plan. WHEREAS, special assessments are collected on all lodging businesses located within the boundaries of the City of Huntington Beach. WHEREAS, on January 22, 2019,the Tourism Business Improvement District Management Agreement was entered into between the City of Huntington Beach, a Municipal Corporation("City") and the Visit Huntington Beach ("VHB"), a California nonprofit 501c(6) corporation. WHEREAS, on September 25, 2023, the Agreement was amended to include the Huntington Beach Municipal Code (HBMC) Chapter 5.120 Short-Term Rentals (STRs) as lodging businesses where operators remit their HBTBID payments quarterly instead of monthly. WHEREAS, on June 4, 2024,the City Council of Huntington Beach approved Resolution of Modification 2024-30 to increase the assessment rate from 4%to 6%. As part of the assessment increase,the Parties agree to fund an equivalent amount equal to 10% of the annual assessment budget for Tourism Enhancement Program (TEP) special projects in accordance with the Plan and this Amendment during the remainder of the HBTBID term. NOW, THEREFORE, THE PARTIES AGREE TO AMEND THE AGREEMENT AS FOLLOWS: 1. Section 7 of the Agreement is hereby deleted in its entirety and replaced with the following: 1 24-14552/342698 7. TOURISM ENHANCEMENT PROGRAM SPECIAL PROJECTS In conjunction with the increase in HBTBID assessment to six percent(6%), VHB and the City agree to fund an equivalent amount equal to 10% of the annual assessment budget for TEP special projects each fiscal year, beginning Fiscal Year 2024-2025 and continuing through June 2028. TEP projects will improve the visitor and resident experience and prepare the destination for an influx of visitors in accordance with all provisions of the Plan. 7.1 TEP Projects for Fiscal Year 2024-2025 and 2025-2026: VHB Board of Directors and the City Council shall fund programs as part of their respective budgets in accordance with Exhibit C. 7.2 TEP Projects for Fiscal Year 2026-2027 and Subsequent Years: Beginning in Fiscal Year 2026-2027,VHB and the City Manager or designated City staff shall annually develop TEP project proposals consistent with the provisions of the Plan. For each TEP project proposal, there shall be included a proposed timeline and a proposed budget. TEP project proposals shall be submitted by October 30th. As part of the TEP project development process, both Parties shall meet and reach consensus on the upcoming year's projects, as well as determine who the Responsible Party is that will fund and manage each project. Final TEP project proposals shall be presented by both City and VHB staff at a regularly scheduled meeting of VHB no later than April 30th. 7.3 Project Approval: VHB TEP projects shall be approved by the VHB Board as part of VHB's annual budget process. City TEP projects shall be approved by the City Council as part of the City's annual budget process. The TEP budget shall be ten percent(10%) of the HBTBID budget. Failure by VHB to invest entire TEP budget into TEP projects within one fiscal year from approval of the budget may be considered a breach of Agreement and its Amendments. A waiver of this requirement for one fiscal year is not a waiver of the requirement for any prior or subsequent year. The total TEP budget for fiscal year 2024-2025 is approximately $1,000,000. A similar TEP budget is expected to apply to subsequent years. However,the TEP budget is expected to fluctuate with HBTID revenue. 2 24-14552/342698 7.4 Milestone Reports: For each TEP project,the Responsible Party shall submit quarterly milestone reports to the other Party, including progress-to-date and expenditures. 7.5 Joint Investment: VHB and the City may jointly invest in TEP projects. The award of any public works project contract must be done in accordance with City Charter and Municipal Code requirements. 7.6 Project Modifications: VHB and the City Manager and/or their designee may convene to revise TEP project proposals, including adjustments to timelines and budgets. In the event that a project concludes ahead of schedule or with a surplus or deficit in the allocated budget, any credit or shortfall shall be applied to the subsequent fiscal year for future TEP projects. 7.7 Force Majeure: Neither party hereto shall be liable or responsible for delays or failures in performance resulting from events beyond the reasonable control, and without the fault or negligence, of such party. Such events shall include, without limitation, acts of God, strikes, lockouts, riots, acts of war, epidemics, pandemics, acts of government, fire, power failures, nuclear accidents, earthquakes, unusually severe weather, acts of terrorism or other disasters, whether or not similar to the foregoing. 2. "Exhibit C" entitled"Approved TEP Project List" is hereby added to the Agreement. 3. "Exhibit D"Resolution No. 2024-30 entitled "A Resolution of the City Council of the City of Huntington Beach Declaring Results of Majority Protest Proceedings and Modifying the Huntington Beach Tourism Business Improvement District (HBTBID)" is hereby attached to the Agreement. IN WITNESS WHEREOF, the City and VHB have executed this Second Amendment, which shall be effective as of the day and year set next to the City Manager's signature below ("Effective Date"). 3 24-14552/342698 VISIT HUNTINGTON BEACH, a California CITY OF HUNTINGTON BEACH, a municipal nonprofit 501 (c)(6) corporation corporation of the State of California By: By ITS: Kelly Miller Eric Parra, Interim City Manager President/CEO �24 Date: 6 /lo, Date: ATTEST ;? AND a,,l,� /��Gv'-d��i�• By: By ITS: (CIRCLE ONE) IVkin Estanislau, City Clerk Chairman/President/Vice President /� /�Oa Date: Date: INITIATED AND APPROVED: COUNTERPART By •—� Je ifer Villasenor Community Development Director Date: APPROVED AS TO FORM: By ichael E. Gates, City Attorney D e: 4 24-14552/342698 VISIT HUNTINGTON BEACH, a California CITY OF HUNTINGTON BEACH, a municipal nonprofit 501 (c)(6) corporation corporation of the State of California By: f . By ITS: Kelly Miller Eric Parra, Interim City Manager President/CEO Date: 5• G " Z Date: A I hST Q SAND By: dJ -1 By ITS:_LIR E ONE) Robin Estanislau, City Clerk Chairm resident/Vice President Date: Date: -5 ._3© _-; 4 INITIATED AND APPROVED: COUNTERPART By Jennifer Villasenor Community Development Director Date: APPROVED AS TO FORM: By Michael E. Gates, City Attorney Date: 4 24-14552/342698 EXHIBIT C—Approved TEP Project List VHB Initiated Tourism Enhancement Programs Project Description FY 24/25 FY 25/26 FY 24-25: Fabrication and installation of nine gateway signs. FY 25-26: Fabrication and installation of 1 Wayfinding vehicular directional signs along major $300,000 $200,000 arteries. Both years: Annual maintenance and Pier Plaza digital kiosk software renewal. FY 24-25: Planning/design of new HB Pier 2 Pier Sign*** sign. $200,000 $300,000 FY 25-26: Completion of HB Pier Sign. Walkability& Improve the walkable connectivity of hotels 3 Connectivity*** to Pacific City and to Main Street with $150,000 $125,000 enhanced crosswalks and lighting. Temporary Beach Seasonal beach restrooms and porter service 4 at the HB Pier and adaptive playground $75,000 $75,000 Restrooms locations. Support of long-term ambassador program 5 Nighttime with trained staff to supplement nighttime $38,000 $40,000 Ambassador Program police presence with hospitality and de- escalation services. 6 Accessibility*** Install projects for greater pathway mobility $20,000 $20,000 and accessibility to the beach. Infrastructure branding and marketing of 7 Bike Valet*** $20,000 TBD bike valet in downtown or under HB Pier. Beach Event Beach event infrastructure, including 8 Infrastructure*** electrical, wi-fi, and removable light poles in $50,000 TBD beach parking lots. Improved HBISM in Support of legacy project to improve HBISM 9 Preparation for TBD TBD LA28*** in preparation for LA28. TOTAL 10%of HBTBID 10%of HBTBID Budget Budget 1 CITY Initiated Tourism Enhancement Programs** Project Description FY 24/25 FY 25/26 Infrastructure Replacement of elevators/stairs to the 1 City's downtown parking structure $700,000 Improvements*** (Main Street Promenade) Downtown Planning, schematic design, and 2 construction estimate of downtown $250,000 Specific Plan*** specific plan improvements 3 Mobility Support of a downtown mobility TBD enhancements (i.e., Circuit) 4 Accessibility*** Pedestrian Walkway Path at $65,000 PCH and 6 Street 5 Playground All-inclusive playground maintenance $120,000 Improvements *** (Pirate Park) Bluff Top Park Lighting 6 Lighting*** (new lighting between beach parking lots) $64,000 7 Maintenance Enhanced downtown maintenance $198,000 $198,000 TOTAL 10%of HBTBID 10%of HBTBID Budget Budget *Funding may be added in later years subject to budget approval by City Council. **These projects may be funded from a variety of sources including, but not limited to:City funds, grants, and other collaborative partners and agencies. ***These projects are NEW initiatives. 2 FIRST AMENDMENT TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT This First Amendment to THE TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT ("Agreement") is made and entered into as of this,`,s"day of al*. , 2023 by and between the CITY OF HUNTINGTON BEACH, a Municipal Corporation ("City"), and the VISIT HUNTINGTON BEACH ("VHB"), a California nonprofit 501 (c)(6) corporation, hereinafter jointly referred to as the (the"Parties"). RECITALS WHEREAS, the Parties pursuant to Resolution 2018-84 and the Management District Plan(the "Plan") have been collecting assessments levied by the HBTBID to fund activities and improvements described in the Plan. WHEREAS, special assessments are collected on all lodging businesses located within the boundaries of the City of Huntington Beach. WHEREAS, Ordinance No. 4224 became effective on February 19, 2021 and amended the Huntington Beach Municipal Code (HBMC) by adding Chapter 5.120 Short-Term Rentals (STRs), defined as a residential dwelling unit, or portion thereof, that is offered or provided to a paying guest(s)by a short term rental host or operator for(30) or fewer consecutive nights. WHEREAS, Short-Term Rentals are considered lodging businesses located within the City boundaries and STR operators remit their TBID payments quarterly instead of monthly. NOW, THEREFORE, THE PARTIES AGREE TO AMEND THE AGREEMENT AS FOLLOWS: SECTION 3. SERVICES TO BE PERFORMED 3.3 At the end of each fiscal year(defined as July 1 through June 30), VHB shall hire an independent professional audit firm to perform a Financial Statement Audit of the HBTBID with a Schedule of Notes and other information detailing the HBTBID's financial statement as needed. In addition, the City Manager or designee may require the auditors to perform certain "Agreed Upon Procedures" to determine whether the HBTBID's expenditures for the preceding year are consistent with the HBTBID's Annual Budget, establishing Resolution,the Plan, and any other applicable law, rule or regulation. A copy of said "Agreed Upon Procedures" report, along with the annual Financial Statement Audit,will be provided to the City by March 31 St following the HBTBID's fiscal year end. As long as there is a separate Schedule of Notes for the HBTBID, the Financial Statement Audit may be consolidated with the Financial Statement Audit of the VHB. In addition, the City may conduct its own audit and VHB shall reimburse the City for the costs of such audit. 1 23-13222/317199 1051 SECTION 5. REMITTANCE OF ASSESSMENT TO VHB 5.1 The City shall remit the amount received monthly (or quarterly for STRs) less the administrative fee to VHB for HBTBID operations. The City will remit funds in a timely manner, including the use of electronic transfer. The HBTBID funds will be remitted by the City not later than the end of the month(or within 90 days for STRs) following payment of the assessment to the City. The STR payment schedule is as follows: • Quarter 1 (STR rentals between January 1 -March 31). TOT and TBID due last City business day in April. City to remit by August 1. • Quarter 2 (STR rentals between April 1 - June 30). TOT and TBID due last City business day in July. City to remit by November 1. • Quarter 3 (STR rentals between July 1 - September 30). TOT and TBID due last City business day in October. City to remit by February 1. o Quarter 4 (STR rentals between October 1 -December 31). TOT and TBID due last City business day in January. City to remit by May 1. In the event the City is unable to collect all or any portion of the delinquent assessment herein,the City will provide the amount collected and use reasonable efforts to collect unpaid assessments. If successfully collected, the City will remit said amount of HBTBID. The City shall incur no liability or otherwise be required to remit any funds that the City is unable to collect. SECTION 6. ADMINISTRATIVE FEE As provided in the Plan, the City shall be reimbursed from the collected assessments 1% of the total amount of the entire assessment, whether or not actually collected for administrative expenses. The administrative fee of 1% shall be retained monthly (or quarterly for STRs)by the City and deposited into the City General Fund account. This fee can be increased without modification of this Agreement by the City demonstrating cost to administer exceeds 1%. 2 23-13222/317199 1052 IN WITNESS WHEREOF, the City and VHB have executed this First Amendment, which shall be effective as of the day and year set next to the City Manager's signature below("Effective Date"). VISIT HUNTINGTON BEACH,a California CITY OF HUNTINGTON BEACH,a municipal nonprofit 501 (c)(6) corporation corporation of the State of California INITIATED AND APPROVED: By: ITS: Kelly Miller A u(AA, ' Chairman/President/Vice President IJ� ..�,�. Director of Community Development Date: AND APPROVED AS TO FORM: By: A RatiC/aRnC ONE) resident/Vice President Date: B/i g / . City Attorney •/ REVIEWED AND APPROVED: Cit} anager a 25(23 Date 3 23-13222/317199 1053 TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT THIS TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT AGREEMENT ("Agreement") is made and entered into as of this 22 day of January, 2019 by and between the CITY OF HUNTINGTON BEACH, a Municipal Corporation ("City"), and the VISIT HUNTINGTON BEACH ("VHB"), a California nonprofit 501(c)(6) corporation and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City. B. The VHB is a California nonprofit 501(c)(6) corporation formed under the laws of California. C. Resolution 2018-84 was adopted on December 17, 2018, by the City Council of the City, upon the petition of the business owners in the proposed district who will pay more than fifty percent (50%) of the assessment proposed to be levied, which • renewed the Huntington Beach Tourism Business Improvement District ("HBTBID") pursuant to the Property and Business Improvement District Law of 1994 contained in Streets and Highways Code 36600-36671 ("1994 Law.") A copy of the resolution and accompanying management district plan is attached hereto as Exhibit A and incorporated herein by this reference (hereinafter the"Plan"). D. Special assessments levied by the HBTBID are earmarked solely to fund the activities and improvements described in the Plan. E. The Plan designates VHB, as the owner's association, if the City and VHB enter into an agreement to administer and implement the HBTBID's activities and improvements. F. VHB has represented to the City that it possesses the labor and professional skills and expertise to administer and implement the activities and improvements of the HBTBID described in the Plan. G. Resolution 2018-84 provides that the City shall be paid a fee equal to 1% of the amount of the Assessment annually for services rendered in connection with the 18-7195/194784 1 1054 collection of the assessment and disbursement to the HBTBID, which can be increased in the future, but shall not exceed the actual cost to the City. H. The purpose of this Agreement is to set forth the duties and responsibilities of the City and VHB for HBTBID operations. NOW,THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. INCORPORATION OF RECITALS The Recitals above are true and correct and constitute an enforceable provision of this Agreement. 2. TERM The term of this Agreement shall commence on the above written date, and shall continue with all services provided for in this Agreement for the life of the HBTBID, unless terminated earlier as set forth herein. 3. SERVICES TO BE PERFORMED VHB shall furnish the following services: 3.1 Administer and implement all of the activities and improvements of the HBTBID as stated, listed, or otherwise described"in the Plan. 3.2 Provide and keep an accounting of HBTBID expenditures for each year the HBTBID is in existence to the City in a format acceptable to the City and any additional documentation and information requested by the City. This may be the same monthly accounting as is presented to the HBTB1D Board at its monthly meeting provided that the City agrees in writing that the format of the report is acceptable. 3.3 At the end of each fiscal year (defined as July 1 through June 30), hire an independent professional audit firm to perform a Financial Statement Audit of the HBTB1D with a Schedule of Notes and other information detailing the HBTBID's financial statement as needed. In addition, the City Manager or designee may require the auditors to perform certain "Agreed Upon Procedures" to determine whether the HBTBID's expenditures for the preceding year are consistent with the HBTBID's Annual Budget, establishing Resolution, the Plan, and any other applicable law, rule or regulation. A copy of said "Agreed Upon Procedures" report, along with the annual Financial Statement Audit, will be provided to the City within one hundred twenty (120) days of the HBTBID's fiscal year end. As long as 18-7195/194784 2 1055 there is a separate Schedule of Notes for the HBTBID, the Financial Statement Audit may be consolidated with the Financial Statement Audit of the VH.B. In addition, the City may conduct its own audit and VHB shall reimburse the City for the costs of such audit. 3.4 Provide City with an annual report that contains all of the information required by Section 36650 of the 1994 Law, or otherwise required by law, rule or regulation including all matters covered under this Agreement, on or 120 days after close of fiscal year. The City Council may approve the report as filed, or may modify any particular matter contained in the report and approve it as modified pursuant to 36635 and 36636 of the 1994 Law. 3.5 Award and administer all contracts necessary for providing the activities and improvements in the Management Plan, adhering to the following procedure when awarding a subcontract: all contracts over $30,000.00 VHB will (1) solicit bids for the work; (2) consider the bids received before awarding the contract; and (3) make a written "Bid Record" after the contract is awarded, listing the name and amount bid for each bidder and describing the reasons for awarding the contract to the successful bidder. Unless circumstances are such that it is not feasible, all sub contracts will be awarded to lowest responsive and responsible bidder. In the event the agreement is not bid, VHB shall provide in the bid Record explanation as to why a bid process was not flowed. For any contract, upon the request of City, VHB shall provide City with a copy of the contract and the Bid Record. If the contract is listed as a Destination Product development contract, and determined by City to be a public works project, VHB shall contact the City Manager and Public Works director to establish a procedure to award and administer said contract according to the City Charter and/or any State law requirements in this regard. Any contract involving City Public Works as defined in Huntington Beach Charter Section 614 shall follow the same requirements. 3.6 No additional services shall be performed by VHB unless approved in advance in writing by City, stating the dollar value of the services, the method of payment, and any adjustment in contract time. All such services are to be coordinated with City and the results of the work shall be monitored by the City Manager or designee; however, the means by which the work is accomplished shall be the sole responsibility of VHB. 4. TIME OF PERFORMANCE 4.1 Time is of the essence in the performance of services under this Agreement and VHB shall perform the services in a diligent and timely manner. VHB 18-7195/194784 3 1056 shall produce all required reports and documents in the times stated in the 1994 Law and this Agreement. Deviations from time schedule may be made only with the prior written approval of the City Manager or designee. The failure by VHB to perform the services in a diligent and timely manner may result in termination of this Agreement by City as provided herein. 4.2 Notwithstanding the.foregoing, VHB shall not be responsible for delays due to causes beyond VHB reasonable control. However, in the case of any such delay in the services to be provided under the Plan, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 5. REMITTANCE OF ASSESSMENT TO VHB 5.1 The City shall remit the amount received monthly, less the administrative fee to VHB for HBTBID operations. The City will remit funds in a timely manner, including the use of electronic transfer. The HBTBID funds will be remitted by the City not later than the end of the month following payment of the assessment to the City. In the event the City is unable to collect all or any portion of the delinquent assessment herein, the City will provide the amount collected and use reasonable efforts to collect unpaid assessments. If successfully collected, the City will remit said amount of HBTBID. The City shall incur no liability or otherwise be required to remit any funds that the City is unable to collect 5.2 VHB shall maintain a separate bank/checking account for HBTBID funds. Only HBTBID funds shall be deposited in this account, and only HBTBID eligible expenditures shall be paid from this account. 5.3 Neither the City's general fund nor any other fund or monies of the City, other than the actual HBTBID assessment received by the City, is liable for any payment under this Agreement. The contractual or other obligations of the VHB are not a debt of the City, nor are they a legal or equitable pledge, charge, lien, or encumbrance upon any of the City's property, income, receipts, or revenues. 6. ADMINISTRATIVE FEE As provided in the Plan, the City shall be reimbursed from the collected assessments 1°A° of the total amount of the entire assessment, whether or not actually collected for administrative expenses. The administrative fee of 1% shall be remitted monthly to the City General Fund account. This fee can be increased without modification of this Agreement by the City demonstrating cost to administer exceeds 1%. 18-7195/194784 4 1057 7. TRANSIENT OCCUPANCY TAX SPECIAL PROJECTS • VHB and City have mutually agreed to terminate the AMENDED AND RESTATED GRANT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND HUNTINGTON BEACH MARKETING AND VISITORS BUREAU dated April 10, 2010 (Grant Agreement). The Grant Agreement provided in part that the CITY will grant to BUREAU (VHB) a sum equivalent to ten percent (10%) of CITY'S Transient Occupancy Tax (TOT) collections each month, payable monthly, following collection of same. The Grant Agreement was scheduled to terminate on October 1, 2021, however, both the City and VHB desire to terminate the Grant Agreement in its entirety and City and VHB agree that the City will grant to VHB a sum equivalent to of the City's Transient Occupancy Tax to pay for specific projects as follows: 7.1 Fiscal Year 2019-20: Grant of $150,000 to be used for the sole purpose of modifications to the International Surf Museum Board and $100,000 to assist the production of the U.S. Travel Association's IPW Event. 7.2 Fiscal Year 2020-21: Grant of $125,000 to be used for the sole purpose of modifications to the International Surf Museum and $100,000 for the Amgen Tour Final event. 7.3 Fiscal Year 2021-22: Grant of $100,000 to be used for the sole purpose of modification to the International Surf Museum. The City shall only be obligated to provide three Annual Grant amounts as set forth above to VHB if VHB accomplishes the listed event/activity within the year in which the Annual Grant amounts are provided, as determined at the sole discretion of the City Manager. If the event or activity identified-above does not occur and/or is not accomplished, the City will have no obligation to provide the Annual Grant for the year in which the activity is no payments will provided, unless the City Manager and HBTBID agree to a modification in timing. Upon conclusion of the grant for FY 2021-22, the City will have no obligation, duty obligation or otherwise required to provide any Transient Occupancy Tax to VHB. 8. LATE PAYMENT PENALTIES AND INTEREST 8.1 Any HBTBID member failing to remit the assessment within thirty (30) days of the time required shall pay an initial mandatory penalty of ten percent (10%) of the amount of the late assessment in addition to the assessment. 8.2 Any HBTBID member failing to remit the assessment and the initial penalty within sixty (60) days shall be liable for a second mandatory penalty of an additional ten percent (10%). 18-7195/194784 5 1058 8.3 In addition to the penalties imposed, any member who fails to remit the assessment that is due and owing at the rate of one and one-half percent (1-1/2%) per month for each month or portion of a month that the assessment remains unpaid exclusive of penalties. 8.4 Should a member's assessment become twelve months in arrears, it shall be sent to collections. Penalties, interest and the cost of collection shall become part of the assessment required to be paid. 8.5 Late payments, penalties, and interest shall be deposited and used in the same manner as the basic assessment. The cost of collection, if any, shall • be used to pay the collections agency. 9. COMPLIANCE WITH ALL LAWS 9.1 VHB shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all services by VHB shall conform to applicable City, county, state and federal laws, rules regulations and permit requirements and be subject to the approval of the City Manager or designee. 9.2 VHB shall ensure that its board members will undertake training on the Brown Act, which may consist of self-study materials, an online course, or in-person training. 10. WORK PRODUCT, BOOK AND RECORDS 10.1 All plans, studies, specifications, data magnetically or otherwise recorded on computer or computer diskettes, records, files, reports, etc., in possession of VHB relating to the matters covered by this Agreement shall be the property of the,City, and VHB hereby agrees to deliver the same to the City upon termination of the Agreement. 10.2 During the term of this Agreement, and for five years after the term expires or terminates or for any longer period required by law, VHB shall maintain detailed records pertaining to the HBTBID's administration, including but not limited to ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or concerning budgeting, charges, expenditures, subcontractors (e.g., bid records,) insurance, permits, administrative expenses, and overhead. HBTBID records shall not be comingled with TOT, tax accounts or any other records of VHB. VHB 18-7195/194784 6 1059 shall make all such records available to City for inspection, audit, and/or copying at all reasonable times. 10.3 VHB will work with the City to assure to the extent feasible each HBTBID member maintains its records in accordance-with Paragraph 10.2 and that the City may perform an audit of HBTBID payments from HBTBID hotels. The City as its sole discretion shall conduct the audit and any litigation. 11. INDEPENDENT CONTRACTOR 11.1. It is understood that City retains VHB on an independent contractor basis and its board members and staff are not an agent or employee of the City. The VHB is not a public entity and its board members and staff are not public officials or employees of the City. The manner and means of conducting the work are under the control of VHB, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for VHB or any of VHB's employees or agents, to be the agents or employees of City. VHB shall have the responsibility for and control over the means of performing the work, provided that VHB is in compliance with the terms of this.Agreement. Anything in this Agreement that may appear to give the City the right to direct VHB as to the details of the performance or to exercise a measure of control'over VHB shall mean only that VHB shall. follow the desires of the City with respect to the results of the services. VHB shalt be responsible for the payment of all taxes, workers' compensation insurance and unemployment insurance for its employees. 11.2 In the event VHB or any board member, employee, agent, contractor, or subcontractor of VHB providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, VHB shall indemnify, protect, defend, and hold harmless the City for the payment of any employee and/or employer contributions for PERS benefits on behalf of VHB or its board members, employees, agents, contractors or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. 18-7195/194784 7 1060 12. COOPERATION 12.1 VHB agrees to work closely and cooperate fully with the City Manager or designee and any other agencies that may have jurisdiction or interest in the work to be performed. City agrees to cooperate with VHB. 12.2 VHB shall discuss and review all matters relating to policy and HBTBID direction with the City Manager or designee in advance of all critical decision points to ensure the Management Plan proceeds in a manner consistent with HBTBID's goals and policies and all applicable laws, rules and regulations. VHB shall hold quarterly meetings with the City Manager. 13. INSURANCE Without limiting VHB indemnification of the City, and prior to commencement of work, VHB shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to the City. 13.1 Certificates of Insurance. VHB shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Insurance certificates must be approved by the City Risk Manager prior to commencement of performance of services. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. 13.2 Signature. A person authorized by the insurer to bind coverage on its behalf • shall sign certification of all required policies. 13.3 Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City Risk Manager. 13.4 Coverage Requirements. A. Workers' Compensation Coverage. VHB shall maintain Workers' Compensation Insurance Employer's Liability Insurance for its employees in accordance with the laws of the State of California. in addition, VHB shall require each subcontractor to similarly maintain Workers' Compensation 18-7195/194784 8 1061 • Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non- renewal of all Workers' Compensation policies must be received by the City at least thirty(30)calendar days (or 10 calendar days written notice of non-payment of premium prior to such change. The insurer shall agree to waive all rights of subrogation against the City, its officers, agents, employees and volunteers for losses arising from work performed by VHB for the City. B. General Liability Coverage. VHB shall maintain commercial general liability insurance in an amount not less than-one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, wither the general aggregate limit shall apply separately to the work to be performed under this agreement, or the general aggregate limit shall be at least twice the required occurrence limit. C. Automobile Liability Coverage. VHB shall maintain automobile insurance covering bodily injury and property damage for all activities of VHB arising out of or in connection with services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each occurrence. 13.5 Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: A. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of VHB. B. This policy shall be considered primary insurance as respects to the City, its elected or appointed officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from VHB's operations or services provided to the City. Any insurance maintained by the City, including any self-insured 18-7195/194784 1062 • retention the City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. C, This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. D. The insurer waives all rights of subrogation against the City, its elected or appointed officers, officials, employees, agents and volunteers. E. Any failure to comply with reporting provisions of the policies shall not effect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers. F. The insurance provided by this policy shall not be suspended voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days written notice (or 10 calendar days' notice of non-payment of premium) has been received by the City. 13.6 Timely Notice of Claims. VHB shall give the City prompt and timely notice of claim made or suit instituted arising out of or resulting from VHB's performance under this Agreement. 13.7 Additional Insurance. VHB shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of work. 14. INDEMNITY AND HOLD HARMLESS 14.1 To the fullest extent permitted by law, VHB shall indemnify, defend and hold harmless the City, its City Council boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attomey's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims",) which may arise from or in any manner related (directly or indirectly) to the Agreement, any breach of the terms and conditions of this Agreement, any violation of any law, rule or regulation by VHB, any work performed or services provided under this Agreement including, without limitation, VHB's presence or activities conducted pursuant to this Agreement (including the negligent and/or willful acts, errors and/or omissions of VHB, its board members, principals, officers, agents, employees, vendors, suppliers, consultants, 18-7195/194784 10 1063 contractors, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable for any or all of them.) 14.2 Notwithstanding the foregoing, nothing herein shall be construed to require VHB to indemnify the Indemnified Parties from any Claim arising from. the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable.. The policy limits do not act as a limitation upon the amount of indemnification to be provided by VHB. 14.3 It is understood that the duty of VHB to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by the City of insurance certificates and endorsements required under this Agreement does not relieve VHB from liability under this indemnification and hold harmless clause. This indemnification and hold VHB harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply and shall survive the termination of this Agreement. By execution of this Agreement, VHB acknowledges and agrees to the provisions of this Paragraph and that it is a material element of consideration. 15. CITY'S RESPONSIBILITIES To assist VHB in the execution of its responsibilities under this Agreement,the City agrees- to, where applicable: 15.1 Provide access to, and upon request of VHB, one copy of all existing relevant information on file at the City. The City will provide all such materials in a timely manner .so as not to cause delays in VHB's work schedule. 15.2 Administer annual HBTBID proceedings. • 16. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement the services to be provided under this Agreement shall not be assigned, transferred, contracted or subcontracted out without the prior written approval of City. 17. CONFLICT OF INTEREST 17.1 VHB or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act"), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such 18-7195/194784 11 1064 persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 17.2 If subject to the Act,VHB shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. VHB shall indemnify and hold harmless the City for any and all claims for damages resulting from VHB's violation of this Paragraph. 17.3 VHB certifies that it has disclosed to the City any actual, apparent, or potential conflicts of interest that may exist relative to the services to be provided pursuant to this Agreement. VHB agrees to advise the City of any actual, apparent or potential conflicts of interest that may develop subsequent to the date of execution of this Agreement. VHB further agrees to complete any statements of economic interest required by either City ordinance or State law. 18. TERMINATION In lieu of a bilateral termination provision without cause, Parties have negotiated and agree that the City may terminate this agreement at any time if it determines at its sole discretion that the VHB has misappropriated funds, committed malfeasance, or violated any law, rule or regulation in providing the activities and improvements described in the Plan or in otherwise administering and implementing the Plan; or has breached this Agreement in any way whether material breach or nonmaterial breach and has failed to cure the breach within 30 days after receiving the City's written demand for cure. This Agreement shall automatically terminate in the event the HBTBID is disestablished or expires without being renewed. 19. WAIVER A waiver by either party of any breach of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 20. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 21. CONTROLLING LAW AND VENUE The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 18-7195/194784 12 1065 22. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both VHB and the City and approved as to form by the City Attorney. The City Manager or designee is authorized to execute on behalf of the City, with approval of the City Attorney as to form, an amendment to Sections 3, 5, 6,.8, 11, 14 and 27. 23. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No oral agreement or implied covenant shall be held to vary the provisions herein. 24. INTERPRETATION The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 25. EQUAL OPPORTUNITY EMPLOYMENT VHB represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, disability, ancestry, sex or age or other prohibited criteria. 26. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first-class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from VHB to the City shall be addressed to the City at: Attn: City Manager City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, CA 92648 Phone: (714) 375-0465 . Fax: (714) 375-5087 All notices, demands, request or approvals from City to VHB shall be addressed to VHB at: Attn: Kelly Miller, President& CEO Visit Huntington Beach 18-7195/194784 13 1066 155 Fifth Street, Suite 111 Huntington Beach, CA 92648 Phone: (714) 969-3492 Fax: (714) 969-5592 27. AUTHORITY TO EXECUTE The person executing this Agreement on behalf of the parties hereto warrants and represents that he/she has the authority to execute this Agreement on behalf of his/her entity and has the authority to bind that party to the performance of its obligations hereunder. 28. THIRD PARTY BENEFICIARY The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties, and their respective successors and assigns, and is made solely and specifically for their benefit. No other person shall have any rights, interest or claims hereunder or be entitled to any benefits under or on account of this Agreement as a third- party beneficiary or otherwise. • 18-7195/194784 14 1067 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. VISIT HUNTINGTON BEACH CITY OF HUNTINGTON BEACH, a municipal corporation of the State of By+sue California ITS: Kelly it' -• Chairm. i'resid r..►:ice President APPROVED AS TO FORM: AND By: IT CIRCL City Att.T ey hairm n ice President ATTEST: INITIATED AND APPROV, D: iet 904/1444,110 City Clerk 2114611 koz IA Deputy irector of onomic Development REVI ND APPROVED: y Manager Attachment: Exhibit A— Resolution 2019-06 Exhibit B— Management District Plan 18-7195/194784 15 1068 RESOLUTION NO. 2019-06 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH MODIFYING THE MANAGEMENT DISTRICT PLAN OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, on September 15, 2014 the City Council of the City of Huntington Beach ("City Council") adopted Resolution Number 2014-72 adopting the Management District Plan and establishing the Huntington Beach Tourism Business Improvement District("HBTBID"); and WHEREAS,the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows the City to modify the Management District Plan ("MDP") at the request of the owners' association; and WHEREAS, the HBTBID owners' association, Visit Huntington Beach ("VHB"), has requested modification of the MDP;and WHEREAS,on November 19,2018 the City Council adopted a Resolution of Intention to Modify the Management District Plan of the Huntington Beach Tourism Business Improvement District, Resolution Number 2018-79; and WHEREAS,the Resolution of Intention was published and mailed in accordance with Streets and Highways Code Section 36636; and WHEREAS, a public hearing on the proposed modification was held on January 22,2019. NOW,THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT: 1. The recitals set forth herein are true and correct. 2. The City Council hereby modifies the HBTBID MDP. 3. The modification of the HBTBID MDP will modify the term of the district. The current term of the district is five (5) years, effective through September 31, 2019. The modified HBTBID shall have a term of four (4) years and three (3)months, ending on January 31, 2019. 4. This resolution shall take effect immediately upon its adoption by the City Council. 18-7195/193775 1 1069 Resolution No.2019-06 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 22nd day of January ,2019. Mayor REVIEWED AND APPROVED: APPROVED AS TO FORM: City Manager AV City Attorney • 18-7195/193775 2 1070 Res. No. 2019-06 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) • • I, ROBIN ESTANISLAU, 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 January 22, 2019 by the following vote: AYES: Brenden, Carr, Semeta, Peterson, Posey, Delgleize, Hardy NOES: None ABSENT: None RECUSE: None q-6/-einieLigud City Cler and ex-officio Clerk of the City Council of the City of Huntington Beach, California 1071 2019-2028 4 VISIT ,v t' HUNTINOTON BEACH SURF CITY USA ,, - � __� ' ce��`� _ ,..�,�.- - �" act`= r ______ _ "� .. _ ,'- ,'"'- " ti_ I t� 4�� 1 ,,.- t. .<,:...� .- -,-.+mow C?4'1Mi.. .ip.._.iti.. '�¢_` ' .ate;�y,,,,� :str-++.+., :i.•3.�' ,+te. .r..c+ ,',_:„ I. HUNTINGTON BFEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law of October 9� 2018 1994, Streets and Highways Code section 36600 et seq. CONTENTS I. OVERVIEW 2 II. BACKGROUND 3 III. IMPETUS TO RENEW THE HBTBID 4 IV. ACCOMPLISHMENTS 6 V. BOUNDARY 9 VI. BUDGET AND SERVICES 10 A. Annual Service Plan 10 B. Annual Budget 13 C. California Constitutional Compliance 13 D. Assessment 14 • E. Penalties and Interest 15 F. Time and Manner for Collecting Assessments 15 VII. GOVERNANCE 16 A. Owners' Association 16 B. Brown Act and California Public Records Act Compliance 16 C. Annual Report 16 APPENDIX 1 —LAW 17 APPENDIX 2—ASSESSED BUSINESSES 28 Prepared by Civitas CIVITAS PARTNERSHIPS•PROGRESS•PROSPERITY (800)999-778.1 www.civitasadvisors.com 1073 I. OVERVIEW Developed by Visit Huntington Beach (VHB) and Huntington Beach lodging businesses,the renewed Huntington Beach Tourism Business Improvement District (HBTBID) is an assessment district that will continue to provide specific benefits to payors,by funding marketing and sales promotion efforts for assessed lodging businesses. The HBTBID was formed in 2014 for a five (5) year term; assessed lodging businesses now wish to renew it for an additional nine (9) years and five (5) months. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach, as shown on the map in Section V. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales. Tourism enhancement programs will increase overnight tourism and market payors as tourist,meeting and event destinations,thereby increasing room night sales. Budget: The total HBTBID annual budget for each full year of operation is anticipated to be approximately $5,000,000. The initial "year" of operation will be a partial year consisting of five (5) months, for which the anticipated budget is $2,083,333. Cost: The annual assessment rate is four percent (4%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed HBTBID will have a nine (9) year and five (5) month life, beginning February 1,2019 through June 30,2028. Once per year,beginning on the anniversary of HBTBID renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. The proposed time for implementation and completion of this Management District Plan is February 1, 2019 through June 30, 2028. Management: Visit Huntington Beach will continue to serve as the HBTBID's Owners'Association. The Owners'Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council. HBTBID Management District Plan - VISIT 2 October 9,2018 HUNTINGTON BEACH �0�4 SURF CITY USA" II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over one hundred California destinations have followed suit. In recent years, other states have begun adopting the California model — Montana, South Dakota,Washington, Colorado,Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita,Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland,Oregon and Memphis,Tennessee have utilized their home rule powers to create TBIDs without a state law. California's TBIDs collect- Number of Districts Operating in California ively raise over $250 million 101 101 annually for local destination 100 - gs 9_$ marketing. With compet- 88 80 itors raising their budgets, 80 - - 72 and increasing rivalry for 60 63 visitor dollars,it is important 60 - .that Huntington Beach 45 lodging businesses continue 40 - 37 to invest in stable, lodging- 24 28 31 specific marketing programs. 20 - 19 _ 4 6 9 n- 1 2 TBIDs utilize the efficiencies 0 of private sector operation in 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 the market-based promotion � i° O000w � c0nrno00o � 0NNw .mac'-i, rnN000 of tourism districts. TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase room night sales. In California, TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The keg derence between 1liIDs and other benefit assessment districts is that funds raised are • returned to the private non-profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government use; • TBIDs are customized to fit the needs of payors in each destination; • TBIDs allow for a wide range of services; • TBIDs are designed, created and governed by those who will pay the assessment; and • TBIDs provide a stable,long-term funding source for tourism promotion. HBTBID Management District PlanA VISIT 3 October 9,2018 HUNTINGTON 1075 BEACH SURF CITY USA° III. IMPETUS TO RENEW THE HBTBID The existing HBTBID was established in 2014 with an assessment rate of three percent (3%) on overnight lodging revenues in Huntington Beach. While the HBTBID has been successful, there is still opportunity for growth in overnight visitation and room night sales revenue, especially during non-peak periods. Currently, the City of Huntington Beach provides VHB with funding from Transient Occupancy Tax revenues, equal to one percent (1%) of overnight lodging revenues in Huntington Beach, pursuant to an MOU between the City and VHB. The City and VHB intend to terminate the MOU and enter a new. It is the intent of VHB to develop a long-term agreement with the City that includes the City retaining 100% of all TOT revenues. The assessment rate in the renewed HBTBID will be increased to four percent (4%) to ensure that tourism promotion funding is not decreased during the term of the renewed HBTBID. There are several reasons to renew the HBTBID. The most compelling reasons are: 1. The Need to Maintain/Increase Competitiveness, Occupancy and Overall Visitation As the number of overnight accommodations grow in Orange County, as well as in competitive California cities and counties, it is crucial that Huntington Beach maintains and increases its competitiveness, occupancy levels and visitation from targeted markets. These goals can be accomplished by increasing the HBTBID assessment from three percent (3%) to four percent (4%), which will continue to generate approximately $5,000,00 in dedicated HBTBID funding for improvements and activities to increase room rentals for assessed lodging businesses located within the renewed HBTBID. Additional HBTBID funds will be used to implement new Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level: 1. Increase funding for destination sales and marketing programs, which will target key visitor markets,including markets that generate substantial overnight visitation to Huntington Beach throughout the year, especially during non-peak seasons; and 2. Increase funding for the innovative HBTBID Visitor Services Enhancements program that adds new and/or repurposed projects to Huntington Beach's current brand offerings,which will increase year around overnight visitation by improving the overall HBTBID brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. 2. An Opportunity for Increasing City Revenues As an indirect result of the renewed HBTBID, it is expected that as occupancy rates and overall visitation numbers increase, so too will the City's Transient Occupancy Tax revenue. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. 3. Stable Funding for Destination Marketing The current HBTBID was formed pursuant to the Property and Business Improvement District Law of 1994. The law allows a district to be renewed for up to ten (10) years without the need for City Council's annual approval to continue levying the assessment. Stakeholders have elected to renew the HBTBID for a nine (9) year five (5) month term. The renewed term will provide stable funding for destination marketing, visitor services enhancements, and management through June 30, 2028 and HBTBID Management District Plan § VISIT 4 October 9,2018 HUNTINGTON BEACH �o�s SURF CITY USA" align the HBTBID's fiscal year to the City's fiscal year. This may provide stable funding for destination marketing,visitor services enhancements, and management. Many of Huntington Beach's competitors are at or exceeding the level of funding available for destination marketing in Huntington Beach. The table below lists the funding raised by tourism improvement districts for several other competitors. Location Amount Raised Assessment Rate TOT Total Guest Rate Charge Costa Mesa $3,350,000 3%room revenue 8% 11% Laguna Beach $2,040,000 2%room revenue 12% 14% Irvine $3,100,000 2%room revenue 8% 10% Anaheim $19,830,000 2%room revenue 15% 17% Long Beach $6,000,000 3%room revenue 12% 15% Torrance $1,090,000 1%room revenue 11% 12% Santa Monica $4,130,000 $1.50-$5.25 per night 14% 14% + $5.25 Oceanside $690,000 1.5%room revenue 10% 11.5% Santa Barbara $3,770,000 $0.75 -$4.00 per night 14% 14% + $4.00 Newport Beach $8,430,000 3%room revenue 10% 13% *As of September 2018 HBTBID Management District Plan VISIT 5 October 9,2018 HUNTINGTON BEACH 1077 SURF CITY U5A° IV. ACCOMPLISHMENTS Assessed Lodging Business Revenue Assessed lodging businesses revenue has increased 45.6% since the HBTBID assessment was increased from 2% to 3% in 2014. Increases in assessed lodging business revenue by fiscal year are listed below: • FY 14-15 9.2% • FY 15-16 9.0% • FY 16-17 13.3% • FY 17-18 15.1% (Oct Jul) Marketing& Public Relations • Produced the destination's most successful PR activation in 2015-16, garnering national and international media exposure for the brand and numerous "best in the travel industry"awards. Huntington Beach's "Epic Big Board Ride" campaign resulted in: o Two GUINNESS WORLD RECORDS TM for"Largest surfboard" and "Most people riding a surfboard at once." o Total media coverage: • 2,017 total placements • 500 million impressions • $9.6 million in immediate earned media value • 1,306 broadcast segments • Conducted comprehensive brand perception research study in leisure and group markets in 2015-16,launched updated Surf City USA brand logo,leisure "Wonder" campaign and group "HB Collection"campaign in 2016-17 across all marketing channels—digital,print,broadcast, display, collateral, and visitor information services. • Re-designed a national award-winning, mobile centric responsive website in 2016-17, social media integration and expansion initiative and transitioned entire media marketing strategy to a robust digital based destination marketing program. The result? Qualified visitor user sessions increased 72% from 643,365 in 2014-15 to 1,112,846 in 2017-18,with soaring hotel overnight stay market demand and revenue increases (see above hotel data). • Granted highly valued official verification on three major social media platforms (Facebook, Twitter, Instagram). • Began covering events and key destination locations live on Facebook,Instagram and Twitter, adding paid social media posting in 2017-18.Results include progressive increases in followers and engagement from 24%—51% across these three key social media channels annually. • Produced video content promoting the destination that is being used by assessed lodging businesses to help their sales initiatives. • Launched Huntington Beach Welcomes You to Dream and Do campaign that includes videos and print collateral,as well as video promotion with Matador Media to reach 13 million adventure millennial travelers. • Hosted over 300 journalists from top domestic and international markets from 2014-15 to 2017-18. • Generated over $27 million in earned media value and 620 million impressions across top travel publications (online, print and broadcast) from 2014-15 to present. • Received numerous national and international travel industry marketing and communications awards from the US Travel Association, Hospitality Sales and Marketing Association International,Visit California and the National Web Marketing Association. HBTBID Management District Plan VISIT 6 October 9,2018 HUNTINGTON 1078 BEACH SURF CITY USA° Destination Product Development • Built the world's largest surfboard and an activation event that sparked $10 million in global media value, as well as produced a lasting community attraction, asset and point of pride. • Led community input sessions, which helped VHB in designing a million dollar plus communitywide comprehensive wayfinding system. The signs are currently being installed throughout Huntington Beach. • Funded capital improvements at HB International Surfing Museum. Sales FY 2014-15 to present: • Conference/Meeting leads processed by VHB: 1,832 • Definite contracted/booked room nights by VHB: 111,270 • Economic Impact of Groups to Huntington Beach: $111.39 million •. Highlighted Group Sales Programs o Launch of HB Collection—promoting multiple hotels in Huntington Beach with their walkability aspect to groups that would traditional only consider a convention center. o 2016—Porsche Cars North America is largest group ever booked into Huntington Beach with 3,700 contracted room nights at assessed businesses and Economic Impact of $4.1 million. o 2018 — Porsche Cars North America in negotiations to hold multiple programs in Huntington Beach at assessed businesses for a total of 4,100 room nights in 2019 Service • 2016 Destinations International WOW Award for Surf City USA Ambassador Program. • 2018 Orange County Certified Tourism Ambassador (CTA) Company of the Year. • Launched Nighttime Ambassador Program to aid the Huntington Beach Police Department on busy evenings in downtown during Spring Break and summer. • Took over administration of Daytime Ambassador Program to provide 7 days a week roving hospitality services to guests in downtown Huntington Beach. • Expanded Surf City USA Shuttle from events only to include summer weekends. Summer weekend Coastal Loop shuttle passenger count by year: o 2015: 548 passengers o 2016: 955 passengers o 2017: 639 passengers o 2018: 1,273 passengers (with one more weekend to go) • Since 2014, hosted 10 Partner Information Meetings each year for a total of 140 businesses. • In 2017, launched complimentary Event Information Booth service to provide visitor information to attendees at 20 events,including the Fastpitch Softball Tournament in Central Park, Surf City USA Marathon, Airshow, and AVP Championships. In 2017, launched the Surf City USA Volunteer Program to help staff Event Information Booths. Advocacy & Community Support • In 2017, launched the summer PCH Cleanup. This roadside cleanup focuses on the gateway to Huntington Beach from the south,between Brookhurst and Beach Blvd along PCH. o 2017 &2018: 268 volunteers picked up 1,430 pounds of trash. • Developed guidelines for new Community Events Sponsorship Initiative to launch 2018-19. HBTBID Management District Plan VISIT 7 October 9,2018 HUNTINGTON BEACH �o�s SURF CITY USA° Administration • • Implemented the CRM (Customer Relationship Management) system for better tracking of assessed business data. • Annually send at least one VHB employee to the Robert Mayer Huntington Beach Leadership Academy program. • Implemented Blackbaud software for improved accounting,budgeting, and transparency. • Established a Reserve Policy consistent with industry practices. • Unqualified audits each year from 2014-15 to present. • • HBTBID Management District Plan VISIT 8 October 9,2018 HUNTINGTON BEACH Soso SURF CITY USA" V. BOUNDARY The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Huntington Beach. Lodging business means: any structure,or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel,inn, tourist home or house,motel, studio hotel,bachelor hotel,lodging house, rooming house, at a fixed location, or other similar structure or portion thereof. The boundary, as shown in the map below, currently includes twenty-three (23) lodging businesses. A complete listing of lodging businesses within the renewed HBTBID can be found in Appendix 2. , GARD7GROVE FREEW: �i.- .1��" NARDEN GROVE FREE.5AY 405 c� 1. ' ri _ ;w‘ CITY OF •. HUNTINGTON BEACH \ ,,,,---',1, 0 N. f /Aio w, / >. co 7yic /f ti P qi r I 1 PACIFIC: OCEAN HBTBID Management District Plan VISIT 9 October 9,2018 HUNTINGTON irBEACH 1081 SURF CITY USA" VI. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HBTBID funds are tourism enhancement programs available only to assessed lodging businesses. A service plan budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual budget will be developed and approved by VHB. The table below illustrates the initial annual budget allocations. The total initial full year budget is $5,000,000. Fiscal year 2019 covers the five (5) month period from February to June 2019, resulting in a lower budget for the first five (5) months of HBTBID operation. Initial Annual Budget - $5,000,000 Contingency/ City Admin. Fee, Reserve,$400,000, $50,000, 1% 8% N Administration, $950,000,19% Tourism Enhancement Programs, $3,600,000,72% Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the VHB Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. Annually, VHB will meet with the City Manager and designated staff to review • accomplishments and funding priorities for the following year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the HBTBID, any and all assessment funds may be used for the costs of defending the HBTBID. Each budget category includes all costs related to providing that service,in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the Tourism Enhancement Programs budget includes the cost of staff time dedicated to overseeing and implementing the tourism enhancement programs. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP.The staffing levels necessary to provide the services below will be determined by the VHB on an as-needed basis. HBTBID Management District Plan VISIT 10 October 9,2018 HUNTINHTON BEACH 1082 SURF CITY USA" Tourism Enhancement Programs The Tourism Enhancement Program will promote and provide activities and improvements to assessed lodging businesses through the implementation of two sub-programs: sales and marketing and visitor services enhancements. A summary of each sub-program is provided below: Sales &Marketing The sales and marketing program will promote assessed lodging businesses as tourist,meeting, and event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: • Increased advertising and promotional programs in print, online, social media, and television targeted at potential visitors to drive overnight visitation and room sales; • Website enhancements and updates; • Strategic advertising and marketing agency support; • Contract with third party marketing and sales partners; • Public relations, sales blitzes,missions, and calls; • Familiarization tours targeting key decision makers; • Preparation and production of collateral promotional materials such as visitor guides, brochures, flyers, and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists,leisure visitors,and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors; and • Cooperation with local agencies and film commission programs that attract overnight visitors. Visitor Services Enhancements The Visitor Services Enhancements (VSE) program will provide funding for programs and initiatives based on criteria to be developed by VHB and reviewed and approved with the City. The focus for the VSE program will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach. VSE may include the following programs which are designed to drive overnight visitation and room sales to assessed lodging businesses: • A long-term ambassador and/or security program with trained staff that supplement the current level of police presence to improve the overall destination experience and encourage overnight visitation or a fulltime dedicated police officer to ensure tourism safety; • Welcome center and kiosk improvements including new technology-driven visitor information enhancements; • Pedestrian improvements linking the hotels and Downtown; • Brand-centric visitor services training program for both public and private sector staff; and • A Trolley or transportation program connecting hotels to downtown Huntington . Beach,The Pier, or other attractions HBTBID Management District Plan VISIT 11 October 9,2018 HUNTINGTON 1083 BEACH SURE CITY USA" Surf City USA Destination Product Development The Destination Product Development (DPD) program will provide funding to assist in the building or financing of well-vetted capital improvement projects which attract overnight visitors to assessed businesses.The program costs may be allocated up to ten percent(10.0%) of the annual budget. Working collaboratively with the City Manager, VHB will develop specific DPD funding criteria and an award process. The City working with VHB, shall have equal input to make recommendations to the VHB Board for final project approval.Both the funding and awarding criteria will be developed in collaboration with the City Manager's office and other key community stakeholder groups.These DPD projects may include: • Comprehensive and integrated wayfinding signage system enhancements including signage to parking decks and lots; • Art and cultural projects,to attract overnight visitors; • Gateway enhancements including Pacific Coast Highway,to attract overnight visitors; • Enhancements to wetlands experiences which attract overnight visitors, such as the Bolsa Chica Ecological Reserve and the Huntington Beach Wetlands (between Newland Street and the Santa Ana River) that expose visitors to the value of the vital ecosystems; • Improvements to existing parks and sports facilities utilized by overnight visitors; • Safe and fun entertainment complex for young teens and adults utilized by overnight visitors; • Live music venue which attracts overnight visitors; • Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year-round and attract overnight visitors; • Partnership with the City on mutually agreed upon projects that promote overnight visitor stays to Huntington Beach. Examples may include: Huntington Beach International Surfing Museum,and summer beach restroom porter cleaning assistance; • Destination product development research and master planning; • Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year-round and attract overnight visitors;and • Improvements to the City's downtown parking deck that make the overnight visitor experience more desirable. Administration The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. Contingency/Reserve The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration,or renewal costs at the discretion of the VHB Board. Policies relating to contributions to the reserve fund,the target amount of the reserve fund,and expenditure of monies from the reserve fund shall be set by the VHB Board. City Administration Fee The City of Huntington Beach shall retain a fee equal to one percent(1%) of the amount of assessment collected to cover its costs of collection and administration. HBTBID Management District Plan VISIT 12 October 9,2018 HUNTINGTON BEACH 1084 SURF CITY USA" B. Annual Budget The total nine (9) year and five (5) month improvement and service plan budget is projected at approximately $5,000,000 annually, or $47,083,333 cumulatively through 2028. This amount may fluctuate as sales and revenue increase or decrease at assessed lodging businesses,but is not expected to change significantly over the term. C. California Constitutional Compliance The HBTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term `assessments' to levies on real. property.' Rather, the HBTBID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the HBTBID, a "specific benefit" and a "specific government service."Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, "a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."2 The activities and improvements in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the HB'1'BID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HBTBID, and are narrowly tailored. HBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in HBTBID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. The assessment imposed by this HBTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the HBTBID assessment,with tourism enhancement programs promoting lodging businesses paying the HBTBID assessment. The tourism enhancement programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the tourism enhancement programs that specifically benefit the assessed lodging businesses, the administration and contingency/reserve programs also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the HBTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, "A specific benefit is not excluded from classification as a`specific benefit'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.i3 'Jarvis v. the City of San Diego 72 Cal App.4th 230 2 Cal.Const.art XIII C§ 1(e)(1) 3 Government Code§ 53758(a) HBTBID Management District Plan VISIT 13 October 9,2018 to HUNTIN6TON BEACH 1085 IFSURF CITY USA" 2. Specific Government Service The assessment may also be utilized to provide, "a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.i4 The legislature has recognized that marketing and promotions services like those to be provided by the HBTBID are government services within the meaning of Proposition 265. Further, the legislature has determined that "a specific government service is not excluded from classification as a `specific government service' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.i6 3. Reasonable Cost HBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VHB, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from HBTBID-funded activities, be featured in lodging-specific advertising campaigns, and benefit from other HBTBID-funded programs. Non-assessed lodging businesses will not receive these, nor any other,HBTBID-funded services and benefits. The HBTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-HBTBID funds. HBTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. D. Assessment The annual assessment rate is four percent (4%) of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. The term "gross room rental revenue" as used herein means: the consideration charged,whether or not received,for the occupancy of space in a lodging business valued in money,whether to be received in money,goods, labor or otherwise,including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected,including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion,pass the assessment on to transients. The amount of assessment,if passed on to each transient,shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the HBTBID assessment is identified separately it shall be disclosed Cal. Const.art XIII C§ 1(e)(2) 5 Government Code § 53758(b) 6 Government Code§ 53758(b) HBTBID Management District PlanA VISIT 14 October 9,2018 HUNTINGTON IFBEACH joss SURF CITY USA' as the "HBTBID Assessment." As an alternative, the disclosure may include the amount of the HBTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act,Government Code§13995 et seq.and shall be disclosed as the"Tourism Assessment." The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest The HBTBID shall reimburse the City of Huntington Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent HBTBID assessment are sought to be recovered in the same collection action by the City, the HBTBID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency: Any lodging business that fails to meet any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed. 3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subparagraphs 1 and 2 of this subsection E. 4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent(0.5%) per month, or fraction thereof, on the amount of the assessment, exclusive of penalties, form the date on which the remittance first became delinquent until paid. 5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid. 6. City not Responsible for Uncollected Amounts: The City shall not be responsible for uncollected amounts. F. Time and Manner for Collecting Assessments The HBTBID assessment will be implemented beginning February 1, 2019 and will continue for nine (9) years and five (5) months through June 30, 2028. The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies,penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to VHB. HBTBID Management District Plan VISIT 15 October 9,2018 HUNTINGTON irBEACH �os� SURF CITY USA' VII. GOVERNANCE A. Owners' Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651,to identify the body that shall implement the proposed program, which shall be the Owners' Association of the HBTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visit Huntington Beach will continue to serve as the Owners' Association for the HBTBID, upon execution of a renewed contract between the City and VHB. B. Brown Act and California Public Records Act Compliance An Owners'Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.The Owners' Association is,however, subject to government regulations relating to transparency,namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners'Association acts as a legislative body under the Ralph M. Brown Act (Government Code 554950 et seq.). Thus, meetings of the VHB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners'Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners'Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The VHB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code 536650 (see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. HBTBID Management District Plan VISIT 16 October 9,2018 HUNTINGTON irBEACH 1088 SURF CITY USA" APPENDIX 1-LAW ***THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT*** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18.PARKING PART 7.PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1.General Provisions ARTICLE 1.Declarations 36600.Citation of part This part shall be known and may be cited as the"Property and Business Improvement District Law of 1994." 36601.Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following: (a)Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities,services,and activities in the business districts. (b)It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs,attract new businesses,and prevent the erosion of the business districts. (c)It is of particular local benefit to allow business districts to fund business related improvements, maintenance,and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d)Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city,even if property, businesses,or persons not assessed receive incidental or collateral effects that benefit them. (e)Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1)Crime reduction.A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2)Job creation. (3)Business attraction. (4)Business retention. (5)Economic growth. (6)New investments. (f)With the dissolution of redevelopment agencies throughout the state,property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities,and create a clean and safe environment. (g)Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h)The act amending this section is intended to provide the Legislature's guidance with regard to this act,its interaction with the provisions of Article XIII D of the Constitution,and the determination of special benefits in property-based districts. (1)The lack of legislative-guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts,contributing to blight and other underutilization of property. (2)Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore,for special benefits to exist as a separate and distinct category from general benefits,the HBTBID Management District Plan VISIT 17 October 9,2018 HUNTINGTON BEACH Boas SURF CITY USA' incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3)It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602.Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603.Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation,Limitation and Majority Protest Act of 1931 (Division 4(commencing with Section 2800)). 36603.5.Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604. Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect.Assessments levied under this part are not special taxes. ARTICLE 2.Definitions 36606."Activities" "Activities"means,but is not limited to,all of the following that benefit businesses or real property in the district: (a)Promotion of public events. (b)Furnishing of music in any public place. (c)Promotion of tourism within the district. (d)Marketing and economic development,including retail retention and recruitment. (e)Providing security,sanitation,graffiti removal,street and sidewalk cleaning,and other municipal services supplemental to those normally provided by the municipality. (f)Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5."Assessment" "Assessment"means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607."Business" HBTBID Management District Plan VISIT 18 October 9,2018 HUNTINGTON 1090 BEACH SURF CITY USA` "Business"means all types of businesses and includes financial institutions and professions. 36608."City" "City"means a city, county,city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500)of Chapter 5 of Division 7 of Title 1 of the Government Code,the public member agencies of which includes only cities,counties,or a city and county,or the State of California. 36609."City council" "City council"means the city council of a city or the board of supervisors of a county,or the agency,commission,or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4."Clerk" "Clerk"means the clerk of the legislative body. 36609.5."General benefit" "General benefit"means,for purposes of a property-based district,any benefit that is not a"special benefit"as defined in Section 36615.5. 36610."Improvement" "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including,but not limited to,the following: (a)Parking facilities. (b)Benches,booths,kiosks,display cases,pedestrian shelters and signs. (c)Trash receptacles and public restrooms. (d)Lighting and heating facilities. (e)Decorations. (f)Parks. (g)Fountains. (h)Planting areas. (i)Closing,opening,widening,or narrowing of existing streets. ' (j)Facilities or equipment,or both,to enhance security of persons and property within the district. (k)Ramps,sidewalks,plazas,and pedestrian malls. (1)Rehabilitation or removal of existing structures. 36611."Management district plan"; "Plan" "Management district plan"or"plan"means a proposal as defined in Section 36622. 36612."Owners' association" "Owners' association"means a private nonprofit entity that is under contract with a city to administer or implement improvements,maintenance,and activities specified in the management district plan.An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity.An owners'association is a private entity and may not be considered a public entity for any purpose,nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9(commencing with Section 54950)of Part 1 of Division 2 of Title 5 of the Government Code),at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act(Chapter 3.5 (commencing with Section 6250)of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. "Property" "Property"means real property situated within a district. HBTBID Management District Plan VISIT 19 October 9,2018 HUNTINGTON IVBEACH 1091 SURF CITY USA° 36614.5."Property and business improvement district";"District" "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part. 36614.6."Property-based assessment" "Property-based assessment"means any assessment made pursuant to this part upon real property. 36614.7."Property-based district" "Property-based district"means any district in which a city levies a property-based assessment. 36615."Property owner"; "Business owner";"Owner" "Property owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council."Business owner"means any person recognized by the city as the owner of the business."Owner"means either a business owner or a property owner.The city council has no obligation to obtain other information as to the ownership of land or businesses,and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner,the signature of the authorized agent of the business owner shall be sufficient. 36615.5."Special benefit" "Special benefit" means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements,maintenance,or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. 36616."Tenant" "Tenant"means an occupant pursuant to a lease of commercial space or a dwelling unit,other than an owner. ARTICLE 3.Prior Law 36617.Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities.The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)of this division)is valid and effective and is unaffected by this part. CHAPTER 2.Establishment 36620.Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5.Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city.A city may not form a district within the unincorporated territory of a county without the consent of the board HBTBID Management District Plan VISIT 20 October 9,2018 '` ' HUNTINGTON BEACH �osz SURF CITY USA' of supervisors of that county.A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621.Initiation of proceedings;Petition of property or business owners in proposed district (a)Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied,the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b)The petition of property or business owners required under subdivision(a) shall include a summary of the management district plan.That summary shall include all of the following: (1)A map showing the boundaries of the district. (2)Information specifying where the complete management district plan can be obtained. (3)Information specifying that the complete management district plan shall be furnished upon request. (c)The resolution of intention described in subdivision(a)shall contain all of the following: (1)A brief description of the proposed improvements, maintenance, and activities,the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities,and the location and extent of the proposed district. (2)A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments,which shall be consistent with the requirements of Section 36623. 36622.Contents of management district plan The management district plan shall include,but is not limited to,all of the following: (a)If the assessment will be levied on property,a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district.If the assessment will be levied on businesses,a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses,a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b)The name of the proposed district. (c)A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part.This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including,but not limited to,the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d)The improvements,maintenance,and activities proposed for each year of operation of the district and the maximum cost thereof.If the improvements,maintenance,and activities proposed for each year of operation are the same, a description of the first year's proposed improvements, maintenance, and activities and a statement that the same improvements,maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. HBTBID Management District Plan tf ` VISIT 21 October 9,2018 lir HUNTINGTON 1093 BEACH SURF CITY USA" (e)The total annual amount proposed to be expended for improvements,maintenance,or activities,and debt service in each year of operation of the district. If the assessment is levied on businesses,this amount may be estimated based upon the assessment rate.If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f)The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g)The time and manner of collecting the assessments. (h)The specific number of years in which assessments will be levied.In a new district,the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations,a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i)The proposed time for implementation and completion of the management district plan. (j)Any proposed rules and regulations to be applicable to the district. (k) (1)A list of the properties or businesses to be assessed,including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business,to defray the cost thereof. (2)In a property-based district,the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement,the maintenance and operation expenses of a public improvement,or the cost of the activities.An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits,if any,from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency,the State of California,or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.The value of any incidental,secondary,or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (1)In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m)In a property-based district,the total amount of general benefits,if any. (n)In a property-based district, a detailed engineer's report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o)Any other item or matter required to be incorporated therein by the city council. 36623.Procedure to levy assessment (a)If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b)If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed.A protest may be made orally or in writing by any interested person.Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest.A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and,if a person subscribing is not shown on the official records of the city as the owner of the business,the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay HBTBID Management District Plan VISIT 22 October 9,2018IF HUNTINGTON 1094 BEACH SURF CITY USA" 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c)If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment,the notice and protest and hearing procedure for the property assessment shall comply with subdivision(a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision(b).If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624.Changes to proposed assessments At the conclusion of the public hearing to establish the district,the city council may adopt,revise,change,reduce,or modify the proposed assessment or the type or types of improvements,maintenance,and activities to be funded with the revenues from the assessments.Proposed assessments may only be revised by reducing any or all of them. At the public hearing,the city council may only make changes in,to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance,and activities.Any modifications,revisions,reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625.Resolution of formation (a)If the city council, following the public hearing, decides to establish a proposed property and business improvement district,the city council shall adopt a resolution of formation that shall include,but is not limited to,all of the following: (1)A brief description of the proposed improvements, maintenance, and activities,the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses,or both within the district,a statement on whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities and the location and extent of the proposed district. (2)The number,date of adoption,and title of the resolution of intention. (3)The time and place where the public hearing was held concerning the establishment of the district. (4)A determination regarding any protests received.The city shall not establish the district or levy assessments if a majority protest was received. (5)A statement that the properties,businesses,or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6)A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention,as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided,but shall be limited to marketing or signage pointing to the district. (7)A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements,maintenance,and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8)In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b)The adoption of the resolution of formation and,if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. HBTB Management District Plan 4 > VISIT 23 ID October 9,2018 6 HUNTINGTON 1095 BEACH SURF CITY USA" 36626.Resolution establishing district If the city council,following the public hearing,desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment,the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627.Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626,the clerk shall record a notice and an assessment diagram pursuant to Section 3114.No other provision of Division 4.5 (commencing with Section 3100)applies to an assessment district created pursuant to this part. 36628.Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone.If the assessment is to be levied on businesses,the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business,or on each category of business within each zone. 36628.5.Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners,or a combination of the two,pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph(2)of subdivision(k)of Section 36622. 36629.Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment,modification,or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business.The city council shall,to establish,modify,or disestablish a benefit zone or category of business,follow the procedure to establish,modify,or disestablish a property and business improvement district. 36630.Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision(h)of Section 36622,a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3.Assessments 36631.Time and manner of collection of assessments;Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment.Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax,and may provide for the same lien priority and penalties for delinquent payment.All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632.Assessments to be based on estimated benefit; Classification of real property and businesses;Exclusion of residential and agricultural property (a)The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may HBTBID Management District Plan VISIT 24 October 9,2018if, HUNTINGT0N BEACH joss SURF CITY USA' classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b)Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c)Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments,and shall not be subject to any assessment pursuant to this part. 36633.Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626.Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634.Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635.Request to modify management district plan The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636.Modification of plan by resolution after public hearing;Adoption of resolution of intention (a)Upon the written request of the owners'association,the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications.If the modification includes the levy of a new or increased assessment,the city council shall comply with Section 36623.Notice of all other public hearings pursuant to this section shall comply with both of the following: (1)The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2)A complete copy of the resolution of intention shall be mailed by first class mail,at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b)The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637.Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100),in a manner consistent with the provisions of Section 36627. CHAPTER 3.5.Financing 36640.Bonds authorized;Procedure;Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds,under the Improvement Bond Act of 1915(Division 10(commencing with Section 8500)) HBTBID Management District Plan 25 g VISIT October 9,2018 HIIHTINSTO@d 1097 BEACH SURF CITY USA" or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b)The resolution adopted pursuant to subdivision(a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements,specify the number of annual installments and the fiscal years during which they are to be collected.The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c)Notwithstanding any other provision of this part,assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4.Governance 36650.Report by owners' association;Approval or modification by city council (a)The owners' association shall cause to be prepared a report for each fiscal year,except the first year,for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners' association's first report shall be due after the first year of operation of the district.The report may propose changes,including,but not limited to,the boundaries of the property and business improvement district or any benefit zones within the district,the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business,if a classification is used. (b)The report shall be filed with the clerk and shall refer to the property and business improvement district by name,specify the fiscal year to which the report applies,and,with respect to that fiscal year,shall contain all of the following information: (1)Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2)The improvements,maintenance,and activities to be provided for that fiscal year. (3)An estimate of the cost of providing the improvements,maintenance,and activities for that fiscal year. (4)The method and basis of levying the assessment in sufficient detail to allow each real property or business owner,as appropriate,to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5)The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6)The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c)The city council may approve the report as filed by the owners' association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651.Designation of owners' association to provide improvements,maintenance,and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements,maintenance,and activities described in the management district plan.If the management district plan designates an owners'association,the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5.Renewal 36660.Renewal of district;Transfer or refund of remaining revenues;District term limit HBTBID Management District Planrifi VISIT 26 October 9,2018 r& HUNTINGTON 1098 If BEACH SURF CITY USA" (a)Any district previously established whose term has expired,or will expire,may be renewed by following the procedures for establishment as provided in this chapter. (b)Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues,shall be transferred to the renewed district.If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district,the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c)Upon renewal, a district shall have a term not to exceed 10 years, or,if the district is authorized to issue bonds,until the maximum maturity of those bonds.There is no requirement that the boundaries,assessments, improvements,or activities of a renewed district be the same as the original or prior district. CHAPTER 6.Disestablishment 36670.Circumstances permitting disestablishment of district;Procedure (a)Any district established or extended pursuant to the provisions of this part,where there is no indebtedness, outstanding and unpaid,incurred to accomplish any of the purposes of the district,may be disestablished by resolution by the city council in either of the following circumstances: (1)If the city council finds there has been misappropriation of funds,malfeasance,or a violation of law in connection with the management of the district,it shall notice a hearing on disestablishment. (2)During the operation of the district,there shall be a 30-day period each year in which assessees may request disestablishment of the district.The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district.Each successive year of operation of the district shall have such a 30-day period.Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied,the city council shall pass a resolution of intention to disestablish the district.The city council shall notice a hearing on disestablishment. (b)The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section.The resolution shall state the reason for the disestablishment,shall state the time and place of the public hearing,and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund;Use of outstanding revenue collected after disestablishment of district (a)Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid,derived from the levy of assessments,or derived from the sale of assets acquired with the revenues,or from bond reserve or construction funds,shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b)If the disestablishment occurs before an assessment is levied for the fiscal year,the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. HBTBID Management District Plan VISIT 27 October 9 2018 HUNTINGTON 1099 BEACH SURF CITY USA" APPENDIX 2 —ASSESSED BUSINESSES* Business Name = Address . City,State,ZIP 777 Motor Inn 16240 Pacific Coast Hwy. Huntington Beach, CA 92649 Beach Inn Motel 18112 Beach Blvd. Huntington Beach, CA 92648 Best Western Harbour Inn & 16912 Pacific Coast Hwy. Sunset Beach, CA 90742 Suites Best Western Surf City 19360 Beach Blvd. Huntington Beach, CA 92648 . Comfort Suites Huntington Beach 16301 Beach Blvd. Huntington Beach, CA 92647 Extended Stay America 5050 Skylab Rd. Huntington Beach, CA 92647 Hotel Europa 7561 Center Ave. #46 Huntington Beach, CA 92647 Huntington Beach Inn 800 Pacific Coast Hwy. Huntington Beach, CA 92648 Huntington Suites 7971 Yorktown Ave. Huntington Beach, CA 92648 Huntington Surf Inn 720 Pacific Coast Hwy. Huntington Beach, CA 92648 Hyatt Regency Huntington Beach 21500 Pacific Coast Hwy. Huntington Beach, CA 92648 Resort and Spa Kimpton Shorebreak Hotel 500 Pacific Coast Hwy. Huntington Beach, CA 92648 Ocean Surf Inn & Suites 16555 Pacific Coast Hwy. Sunset Beach, CA 90742 Oceanview Motel 16196 Pacific Coast Hwy. Huntington Beach, CA 92649 Pasea Hotel &Spa 21080 Pacific Coast Hwy. Huntington Beach, CA 92648 Quality Inn &Suites Huntington 17251 S. Beach Blvd. Huntington Beach, CA 92647 Beach Springhill Suites by Marriott 7872 Edinger Ave. Huntington Beach, CA 92647 Starlight Inn 18382 Beach Blvd. Huntington Beach, CA 92648 Sun n Sands Inn 1102 Pacific Coast Hwy. Huntington Beach, CA 92648 Surf City Inn 16220 Pacific Coast Hwy. Huntington Beach, CA 92649 The Hotel Huntington Beach 7667 Center Ave. Huntington Beach, CA 92647 The Waterfront Beach Resort, a 21100 Pacific Coast Hwy. Huntington Beach, CA 92648 Hilton Hotel Travelodge Ocean Front 17205 Pacific Coast Hwy. Sunset Beach, CA 90742 *As of September 2018 HBTBID Management District Plan VISIT 28 a:a October 9,2018 HUNTINGTON 100 BEACH 1 SURF CITY USA" 4.,,.....-4....„ -fri" \\waT I N ii)16°6kluft"-iith, Public Hearing to consider ....•., �► adoption of Resolution No. 0 toRP0RA7. ��. ` 2024-30 Modifying the o . � \ Y g '_^'-- `•: ` \ Management District Plan _ _. •. 57 g . -���( ) CI for the Huntington Beach - -� • Tourism Business �� ' Improvement District �_ - , "-W--: -4 . -1' -.J:';7.0 4118** At '•i<%<, . --L0.••• Public Hearing •• B• 17 909 , • 1 0OIIrIT\icr // 1A O June 4, 2024 '-4►.r► 4" 1101 Background • HB Tourism Business Improvement District (HBTBID) ®°�UT!.NGroti o formed in 2014 ursuant to the CA Pro ert and � �` °' � ��' �`°° Business Improvement District Law of 1994 , 114 • HBTBID purpose is to market HB to increase 4 . �OS GF 1°.1.. F ! overnight room sales '�UNT cP„\',0" • Funding derived from assessments collected from lodging businesses (paid by guests) operating within City boundaries , VISIT • HBTBID was renewed in 2019 and runs through -` H U NTI N GTO N June 30, 2028 BEACH • Management District Plan (MDP) identifies funds SURF CITY USA® and outlines programs 1102 HBTBID .. 1 4, „ 07 ,,, i . ,, 7, . 1 , _ .,. .7.7,,,, „, , • Comprised of approx. 21 hotels/motels 4 :. , .. �� and 200 Short Term L corty 7, r Rentals (STRs) 41, *.,.. an __Pm* • Current •assessment rate is 4% of gross � �� 4 ��. ainterfAinii: m �-�.� short-term lodging revenue (separate ' from 10% Transient Occupancy Tax (TOT) . ` collected by City) t°ll ® Fv H f p • Boundar includes all lodging Y g g IAil I 1® businesses, existingand in the future, i11® r within the City %ti04411111 llca.> � • Total assessments approximately ��� $7 million for FY 23-24 ,_ ro 1103 Visit Huntington Beach (VHB • Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, serves as the HBTBID Owners' Association 2019-2a2s • Consists of 17 staff and 22 board members ` R ° � VISITUNT ro BEACH • s'.., �tAC CITY 01, Responsible for implementing the MDP programs and submitting an annual report to City Councild, • Management Agreement between City and 41� m VHB outlines responsibilities of both � , � parties related to HBTBID funding and programs ` HUNTINGTON BEacx TOURISM BUSINESS IMPROVEMENT DISTRICT 1IANAGEMENT bISTMCT PLAN • City collects assessments and then distributes funds to VHB 1104 HBTBID Modification Request • 2019 - City began retaining 100% of TOT revenues; Assessment rate increased 3% to 4% to mitigate TOT loss • HBTBID assessment is the only dedicated funding source to market Surf City USA • Competitive cities have dedicated more resources and are adding lodging properties/attractions making funding deficit gap greater each year • VHB is seeking to modify the MDP to increase assessment rate from 4% to 6% to remain competitive and ensure that tourism promotion funding is adequate VHB Comparative Set yekg` 1A M:3 Q cif g$ g` ;. $17,500,000 2%room revenue' 15% ;` 17% itert, . $10,800,000 1% room revenue 13% 14% $13,000,000 5% room revenue 10% 15% •i� $17,000,000 1% room revenue 14% 15% $41,000,000 2% room revenue 10% 12% asp. tt $10,400,000 1% room revenue 10% $10,700,000 2% room revenue 12% 14% $7,000,000 4% room revenue 10% 14% 1105 OC Product Additions/Enhancements NEWPORT BEACH OC VIBE • Vea Newport Beach • Hotel (500 Rooms) • Pendry hotel • RH Gallery & Rooftop Café DISNEYLAND • Disneyland Hotel ANAHEIM • Vacation Club Tower • JW Marriott Anaheim Resort Pixar Pier Hotel • The Westin Anaheim Resort • Downtown Disney SOUTH COUNTY ���, - � �t� - , ', �� n rx xr'',,: a ti s } _ • Waldorf Astoria j. rpi y� �n� r • Ritz Carlton , , Efa t , "--ill# • „ , J • Dana Point Harbor 1 ,,� T a . , , iY l` ... �, � � �. F .:;. .t '....._ •�' ,. ; kS� '1 .ry'�°S�T`'' ..f�;��`` ,`° t ?r »x;�ti S' k,c Bud etPro osed Modified Sales & Marketing (65%) - encompasses ,,,:yor destination sales and marketing programs strategically tailored to key _ w t _ ,Pt 4� tf Y c'a+g ., 1 t� `"�'' 4 its �". 4* ' visitor markets, with focus on those pp,:, r3 generating significant overnight visitation and related spending. Efforts Sales & Marketing 65% extend to non-peak seasons and mid- Tourism Enhancement Programs 10% week periods, aiming to maximize year- round tourism.impact. Administration. 19% �� 19% 8% 5% Tourism Enhancement Programs (10%) - Contingency/Reserve initiatives aim to enrich HB's brand offerings with a focus on improving City Ad m l n Fee 1 1% attractions and amenities to provide Total Budget (Approximately) $7M $1OM compelling reasons for visitors to choose and revisit HB. 1107 Proposed Modified Bud et g 2024 VHB PROPOSED MODIFIED BUDGET: Annual Assessment Budget $10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2% increase in TBID assessments,VHB forecasts its budget to be approximately$10M.This amount is reflected below. All proposed programs funded by TBID assessments must be approved by the VHB Board during the annual budget process and must adhere to state laws governing these assessment expenditures. Contingency/Reserve City Admin Fee $500,000(5%) $100,000(1%) Administration $1,900,000(19%) � Marketing Sales& $6,500,000(65%) Tourism Enhancement ., Programs $1,000,000(10%) • Includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE) Programs from 2019-2024 MDP 1108 HBTBID Modification Schedule Resolution • In response to VHB's written request, City Council adopted Resolution No. 2024- April 16 13 which states the proposed modification and initiates MDP modification Of (Adopted) proceedings. Intention • , Notice and Resolution'mailed to lodging owners ion April 19,=2024 . _ ., . Notice May Newspaper publishing in the.l-1B Wave on May°23, 2024 . r(Completed) • Public meeting to allow public testimony Public May 7 • No Council action required Meeting (Completed) • Public hearing, not more than 90-days after the adoption of the .ROI, on the Cit CouncMDol follow in the publiciiiil 4 hearing, may decide to modify;the=HBTBID and & Resolution of ` adopt a Resolution of Modification , Modification 1109 Management Ag reement Amendment • Management Agreement between City and VHB outlines responsibilities of both parties related to HBTBID funding and programs • If the MDP is modified, then the Management Agreement would be amended to define specific Tourism Enhancement Programs that both the City and VHB would fund during the remainder of HBTBID term. , ry $ §#8 j N a R 4 ,. -s.wa.w.mw..ev.�.m^✓•e umk.rx:w wwi�uw Wayfinding + Pier Sign* Downtown Parking Structure Upgrades* Walkability & Connectivity* Downtown Specific Plan Improvements* Temporary Beach Restrooms Mobility Enhancements Nighttime Ambassador Program PCH & 6th Pedestrian Path* Accessibility Improvements* All-Inclusive Playground Maintenance* Bike Valet* Bluff Top Park Lighting* Beach Event Infrastructure* Enhanced Downtown Maintenance Improved Surf Museum for LA28* Restroom Upgrades* 1110 * New Projects VHB Tourism Enhancement Programs ,� v -mow r - a, t ,, - t`f� 4 - 1�� O VISITOR INFO _. « • v 1 .y - - .' !tea.,. _ .. * . . �f i ,, WI _ sue. .... - -Ifill4 --t- - %ilk * r ''__.m.i u 'O► a`. `'' *.44 H U IN TO l ,v' . 1 r �.. alk , ,,se _ „d... "` BEACH or r -NAP ,, 1 - - �. ,� " . t 1 i SURF ciTs i.`,.. - ,. i i' '�(/ 41 �a -L. 4 *t L, U l ` -+tea . ,;.' - r - +rr.- r f lllllAAAAA • .a • a . \ti 1 ,Pilql 1 II if i I I'It .=,r, `V. 1 I .` .` 1 f Images are for visual examples only. All proposed TEPs funded by TBID assessments are approved annually by the VHB Board during the annual budget process and must adhere to state laws governing these assessment expenditures. 1 1 1 1 Public Hearing • Any owner of a lodging business that is subject to the assessment may protest. • Every written protest shall be filed with the City Clerk at or before the public hearing. • If written protests are received from lodging owners representing 50% or more of the estimated annual assessments levied, the HBTBID shall not be modified and no further proceedings to increase the assessment shall be taken for one year. Recommendation A) Conduct the Public Hearing; and, B) If written protests of at least 50% or more of the total assessments are not received, adopt Resolution No. 2024-30, "A Resolution of the City Council of the City of Huntington Beach Approving the Modification of the Management District Plan of the HBTBID;" and, C) Approve and Authorize the City Manager to execute the Second Amendment to the TBID Management Agreement between the City of Huntington Beach and Visit Huntington Beach. 1113 •; - . Questions ? .4 ,..... , tail m..,c (4 j r-1, 4 Rp 2.4 • �1 ..40 .i --- —--",,,,—..7.7.— ----•----.'2----- —_ •r ,:;74,°. •• i. :-•----s ems.' I :.....,::_. . A { •� �,,. '. q-=. .Yy ate. ` 1114 -`- ems. . From: Jennifer Williams To: suoolementalcomm(&surfcity-hb.orq Cc: Jeff Mivaoka;Jennifer Williams Subject: Continued Support for Resolution 2024-13,June 4th City Council Meeting Date: Wednesday,May 22,2024 1:56:37 PM Attachments: Outlook-k51j351p.onq Intent to Su000rt-TBID Modification 5.22.2024,odf Mayor&City Council, Please see attached our continued support toward Resolution No 2024-13. Thank you, Jen Williams Sr. Marketing Director From:Jennifer Williams<JLWilliams@centennialrec.com> Sent: Monday,April 15, 2024 9:41 AM To: SupplementalComm@Surfcity-hb.org<SupplementalComm@Surfcity-hb.org> Cc:Jeff Miyaoka <JMiyaoka@centennialrec.com> Subject: Email Your Support for Tuesday, April 16 City Council Meeting Dear Mayor&City Council, Please see attached letter in support of Resolution No.2024-13. Please act this letter as Pacific Citys support of this Resolution. Please feel free to reach me at any time should you wish to discuss our support further, Jen Williams Jen Williams Sr. Marketing Director&Public Relations o.714.960.1238 a.21058 Pacific Coast Hwy, Ste M220, Huntington Beach, CA 92648 www.gopacificcity.com • CITY 1115 pa coe CITY May 22, 2024 Dear Mayor and City Council, I'm writing in support of adopting Resolution No. 2024-13, to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. Pacific City is a destination retail center where tourism is an essential part of our business. It provides our tenants with opportunities for growth, resilience and prosperity. When tourism does well,we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as transportation, restaurants and retail industries. Thanks to Huntington Beach's strong tourism economy, with an estimated $2.2 million visitors in 2023, Pacific City and our tenants were able to keep our doors open, keep our employees employed, and thrive. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share, the reduced visitors will lead to a decrease in our revenue as well as the City's TOT, sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach, our businesses will benefit from the higher volume of foot traffic and more potential customers that will help keep us thriving year-round. As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. We hope that the City Council will support the resolution of intent. Thank you, Jen Williams &Jeff Miyaoka 1116 From: Kristi McKnight To: suoolementalcomm(asurfcity-hb.orq Subject: Visit HB TBID modifying assessment NO.2024-13 Date: Tuesday,May 21,2024 10:46:27 AM Dear Mayor and City Council, I'm writing in support of adopting Resolution No. 2024-13, to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As the Event Director for Surf City Still works restaurant and venue, tourism is an essential part of our business. It provides us with opportunities for growth, resilience and prosperity. When tourism does well, we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as transportation and restaurants. Thanks to Huntington Beach's strong tourism economy, with an estimated $2.2 million visitors in 2023, we as a restaurant venue were able to keep our doors open, keep our employees employed, and thrive. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share, the reduced visitors will lead to a decrease in our revenue as well as the City's TOT, sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it.With more visitors coming to Huntington Beach, our business will benefit from more foot traffic, more exposure and more potential customers that will help keep us open and our community/ network growing all year-round.As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. We hope that the City Council will support the resolution of intent. Thank you and Sincerely, Kristi McKnight Best regards, Kristi McKnight Events and Community Director Surf City Still Works 16561Gemini Lane Huntington Beach, CA 92647 0: 714-369-2348 1117 C: 714-681-1629 Click here to learn More about Surf City Still works 1118 May 20,2024 Dear Mayor and City Council, I'm writing in support of adopting Resolution No.2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As a Board Member and Treasurer for the International Surfing Museum of Huntington Beach located at 411 Olive Avenue,tourism is an essential part of our business.It provides us with opportunities for growth,resilience and prosperity. When tourism does well,we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists;it also supports a range of ancillary services such as our museum as an educational destination. Our International Surfing Museum provides a historical journey of surfing and shares how it is now a sport in the Olympics.The museum is also considered a cultural hub for surf art.Additionally,we provide educational events and field trips for students and adults.Thanks to Huntington Beach's strong tourism economy,with an estimated$2.2 million visitors in 2023,we as a museum were able to keep our doors open,keep our employees employed,provide a Surf N Science hand-on evening event for adults and children,as well as,host educational tours during the year. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties,new attractions or upgrades.If Huntington Beach loses visitor industry market share,the reduced visitors will lead to a decrease in our revenue as well as the City's TOT,sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach,our business will benefit from more foot traffic and more visitors that will help keep us open year-round.As part of the proposal,funds will also be spent on several improvements in Downtown Huntington Beach,leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like our International Surfing Museum. We hope that the City Council will support the resolution of intent. Thank you, Denise MacAllister,EdD 224 Crest Avenue Huntington Beach,California 92648 714-336-7789 1119 Switzer, Donna From: Paulette Fischer <pfischer@waterfrontresort.com> Sent: Monday, May 20, 2024 5:43 PM To: supplementalcomm@surfcity-hb.org Cc: Nicole Llido Subject: Resolution NO. 2024-13 Dear Mayor and City Council, I am writing to express my full support for the adoption of Resolution No.2024-13,which declares the City's intention to modify the Management District Plan for the Huntington Beach Tourism Business Improvement District(TBID).As we approach the upcoming Huntington Beach City Council Meeting on Tuesday,June 04, 2024, I urge you to consider the significance of this resolution and its potential positive impact on our community. The tourism industry plays a vital rote in the prosperity of Huntington Beach, as evidenced by the estimated 2.2 million non-OC resident visitors we welcomed in 2023 alone. Not only does tourism contribute significantly to our local economy through tax revenues, but it also provides crucial support to our businesses, ensuring their sustainability and providing employment opportunities year-round. However, it is imperative to acknowledge the competitive landscape within the tourism sector.With numerous other Orange County and coastal California cities vying for visitor attention and expenditure, Huntington Beach faces the risk of losing market share if we do not remain proactive in our efforts to attract visitors.Without strategic investments and enhancements, our city may fall behind competitors who are actively developing new attractions and accommodations. The modification of the TBID presents a vital opportunity to bolster Huntington Beach's position in the tourism market. By increasing TBID funds,we can allocate resources towards essential initiatives such as marketing campaigns,event sponsorships, and infrastructure improvements.These investments wilt not only drive visitor numbers and overnight stays but also maximize the economic benefits derived from large-scale events like the World Cup and the Olympics. Crucially,the benefits of a thriving tourism industry extend beyond the businesses directly involved. Increased visitor numbers translate to greater foot traffic and spending opportunities for local establishments, benefitting non-tourism businesses and residents alike. Moreover, enhancements in Downtown Huntington Beach funded through the modified program wilt enhance the overall quality of life for our community. In light of these considerations, I respectfully urge the City Council to tend their support to the resolution of intent. By doing so,we can ensure that Huntington Beach remains a vibrant and economically prosperous destination for visitors and residents alike. Thank you for your attention to this matter. Paulette Fischer General Manager The Waterfront Beach Resort, a Hilton Hotel Direct: 714-845-8408 pfischer@waterfrontresort.com 1 1120 From: Jennifer Williams To: suoolementalcommtasurfcity-hb.orq Cc: Jeff Mivaoka;Jennifer Williams Subject: Continued Support for Resolution 2024-13,June 4th City Council Meeting Date: Wednesday, May 22,2024 1:56:37 PM Attachments: Outlook-k5ii351o.onq Intent to Su000rt-TBII)Modification 5.22.2024.odf Mayor&City Council, Please see attached our continued support toward Resolution No 2024-13. Thank you, Jen Williams Sr. Marketing Director From:Jennifer Williams<JLWilliams@centennialrec.com> Sent: Monday, April 15, 2024 9:41 AM To: SupplementalComm@Surfcity-hb.org<SupplementalComm@Surfcity-hb.org> Cc:Jeff Miyaoka <JMiyaoka@centennialrec.com> Subject: Email Your Support for Tuesday, April 16 City Council Meeting Dear Mayor&City Council, Please see attached letter in support of Resolution No.2024-13. Please act this letter as Pacific Citys support of this Resolution. Please feel free to reach me at any time should you wish to discuss our support further, Jen Williams Jen Williams Sr. Marketing Director& Public Relations o.714.960.1238 a.21058 Pacific Coast Hwy, Ste M220, Huntington Beach, CA 92648 www.g_opacificcity.com NOTICE:This message is intended only for the personal and confidential use of the designated recipient(s)named above.If you are not the intended recipient of this message you are hereby notified that any review,dissemination,distribution or copying of this message is strictly prohibited.This communication is for information purposes only and should not be regarded as an offer to sell or lease,or as a solicitation of an offer to buy any financial product,an official confirmation of any transaction,or as an official statement of Centennial Real Estate.or its affiliates.Email transmission cannot be guaranteed to be secure or error-free.Therefore,we do not represent that this information is complete or accurate and it should not be relied upon as such.All information is subject to change without notice.This message may contain information that is privileged,confidential,legally privileged,and/or exempt from disclosure under applicable law. From: Kristi McKnight To: suooIementalcommCa�surfcity-hb.orq Subject: Visit HB TBID modifying assessment NO. 2024-13 Date: Tuesday, May 21, 2024 10:46:27 AM Dear Mayor and City Council, I'm writing in support of adopting Resolution No. 2024-13, to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As the Event Director for Surf City Still works restaurant and venue, tourism is an essential part of our business. It provides us with opportunities for growth, resilience and prosperity. When tourism does well, we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as transportation and restaurants. Thanks to Huntington Beach's strong tourism economy, with an estimated $2.2 million visitors in 2023, we as a restaurant venue were able to keep our doors open, keep our employees employed, and thrive. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share, the reduced visitors will lead to a decrease in our revenue as well as the City's TOT, sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach, our business will benefit from more foot traffic, more exposure and more potential customers that will help keep us open and our community/ network growing all year-round. As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. We hope that the City Council will support the resolution of intent. Thank you and Sincerely, Kristi McKnight Best regards, Kristi McKnight Events and Community Director Surf City Still Works 16561 Gemini Lane Huntington Beach, CA 92647 0: 714-369-2348 C: 714-681-1629 Click here to learn More about Surf City Still works May 20,2024 Dear Mayor and City Council, I'm writing in support of adopting Resolution No.2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As a Board Member and Treasurer for the International Surfing Museum of Huntington Beach located at 411 Olive Avenue,tourism is an essential part of our business.It provides us with opportunities for growth, resilience and prosperity. When tourism does well,we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists;it also supports a range of ancillary services such as our museum as an educational destination. Our International Surfing Museum provides a historical journey of surfing and shares how it is now a sport in the Olympics.The museum is also considered a cultural hub for surf art.Additionally,we provide educational events and field trips for students and adults.Thanks to Huntington Beach's strong tourism economy,with an estimated$2.2 million visitors in 2023,we as a museum were able to keep our doors open, keep our employees employed,provide a Surf N Science hand-on evening event for adults and children,as well as,host educational tours during the year. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share,the reduced visitors will lead to a decrease in our revenue as well as the City's TOT,sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach,our business wilt benefit from more foot traffic and more visitors that will help keep us open year-round.As part of the proposal,funds will also be spent on several improvements in Downtown Huntington Beach,leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like our International Surfing Museum. We hope that the City Council will support the resolution of intent. Thank you, Denise MacAllister,EdD 224 Crest Avenue Huntington Beach,California 92648 714-336-7789 Switzer, Donna From: Paulette Fischer <pfischer@waterfrontresort.com> Sent: Monday, May 20, 2024 5:43 PM To: supplementalcomm@surfcity-hb.org Cc: Nicole Llido Subject: Resolution NO. 2024-13 Dear Mayor and City Council, I am writing to express my full support for the adoption of Resolution No. 2024-13,which declares the City's intention to modify the Management District Plan for the Huntington Beach Tourism Business Improvement District(TBID).As we approach the upcoming Huntington Beach City Council Meeting on Tuesday,June 04, 2024, I urge you to consider the significance of this resolution and its potential positive impact on our community. The tourism industry plays a vital role in the prosperity of Huntington Beach, as evidenced by the estimated 2.2 million non-OC resident visitors we welcomed in 2023 alone. Not only does tourism contribute significantly to our local economy through tax revenues, but it also provides crucial support to our businesses, ensuring their sustainability and providing employment opportunities year-round. However, it is imperative to acknowledge the competitive landscape within the tourism sector.With numerous other Orange County and coastal California cities vying for visitor attention and expenditure, Huntington Beach faces the risk of losing market share if we do not remain proactive in our efforts to attract visitors. Without strategic investments and enhancements, our city may fall behind competitors who are actively developing new attractions and accommodations. The modification of the TBID presents a vital opportunity to bolster Huntington Beach's position in the tourism market. By increasing TBID funds,we can allocate resources towards essential initiatives such as marketing campaigns, event sponsorships, and infrastructure improvements.These investments will not only drive visitor numbers and overnight stays but also maximize the economic benefits derived from large-scale events like the World Cup and the Olympics. Crucially,the benefits of a thriving tourism industry extend beyond the businesses directly involved. Increased visitor numbers translate to greater foot traffic and spending opportunities for local establishments, benefitting non-tourism businesses and residents alike. Moreover, enhancements in Downtown Huntington Beach funded through the modified program will enhance the overall quality of life for our community. In light of these considerations, I respectfully urge the City Council to lend their support to the resolution of intent. By doing so,we can ensure that Huntington Beach remains a vibrant and economically prosperous destination for visitors and residents alike. Thank you for your attention to this matter. Paulette Fischer General Manager The Waterfront Beach Resort, a Hilton Hotel Direct: 714-845-8408 pfischer(owaterfrontresort.com 1 From: John hbwetlands.orq To: Suoolementalcommaisurfdty-hb.org Subject: Support of Resolution 2024-30 Date: Monday,June 3,2024 2:36:23 PM Attachments: AM/MUM Dear Mayor and City Council, I'm writing in support of adopting Resolution No. 2024-30, to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As the owner of the only privately owned wetlands in California who sees thousands of eco- tourists yearly,tourism is an essential part of our business. It provides us with opportunities for growth, resilience and prosperity. When tourism does well,we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as transportation and (insert your business type). Thanks to Huntington Beach's strong tourism economy, with an estimated $2.2 million visitors in 2023,we as a eco-tourist site were able to keep our doors open, keep our employees employed,and thrive. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share, the reduced visitors will lead to a decrease in our revenue as well as the City's TOT, sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach, our business will benefit from (insert how tourism benefits your business, e.g. more foot traffic and more potential customers that will help keep us open year-round). As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. We hope that the City Council will support the resolution of intent. Thank you. John Villa, Executive Director John Villa Executive Director Huntington Beach Wetlands Conservancy Street Address: Mail: 21900 Pacific Coast Highway PO Box 5903 Huntington Beach,CA 92646 Huntington Beach,CA 92615 Phone Office:(714)536-0141 Website:http::iwwa.hbwetlands.ora Phone Mobile:(425)505-7000 SUPPLEMENTAL COMMUNICATION 6/4/2024 Meeting Date: 18 (24-406) *gende Item No.;_ From: Sandy Schut To: 5upplementalcomm4surfdty-hb.orp Date: Monday,June 3,2024 2:45:15 PM Dear Mayor and City Council, I'm writing in support of adopting Resolution No.2024-30,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As a downtown business owner,tourism is an essential part of our business.Without tourism we wouldn't survive. I own Model Citizen, a clothing boutique on the 3rd block of Main St, located in the heart of downtown.The influx of tourists allows me employee a staff of 8.This may seem like a small number to you but as a clothing boutique that is huge. In turn, my employees dine and shop downtown as well bringing business full circle. In addition, I am also the treasurer on The HBDBID board of directors.We are excited to see the proposed improvements come to life. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. We hope that the City Council will support the resolution of intent. Thank you, Sandy Taylor Owner, Model Citizen Treasurer, HBDBID Board of Directors SUPPLEMENTAL COMMUNICATION 6/4/2024 Meeting Date: 18 (24-406) Agenda Item No.;. From: Patricia Rogers To: Suoglementalcommasurfcity-hb.org Cc: Nicole IJidQ Subject: Resolution 2024-30 Support Letter from Patricia(Pat)Rogers Date: Monday,June 3,2024 3:50:58 PM Attachments: Patricia Rogers-Visitor Bureau Letter to Support Resolution 2024-30.dooc Thank you for doing this - good luck with the vote tomorrow! Attached is my letter in support. Patricia (Pat) Rogers 714-981-0061 June 3,2024 Dear Mayor and City Council, I'm writing in support of adopting Resolution.No. 2024-30, to declare the City's intention to modify the.Management.District Plan for the Huntington Beach Tourism BID. As a business owner in Huntington Beach (Party Queen Psychics), tourism is an essential part of our business. It provides us with opportunities for growth, resilience and prosperity. When tourism does well, we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as transportation and entertainment. Thanks to Huntington Beach's strong tourism economy, with an estimated $2.2 million visitors in 2023, my group, Party Queen Psychics, were able to keep our doors open, keep our employees employed, and thrive. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share, the reduced visitors will lead to a decrease in our revenue as well as;the City's TOT, sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach, our business will benefit from increased awareness about Party Queen Psychics that is promoted through the excellent Surf City USA website. As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. I hope that the City Council will support the resolution of intent. Thank you. 7,40teeed. Re, Patricia (Pat) Rogers . Founder, Party Queen Psychics 18355 Gum Tree Lane Huntington Beach, CA 92646 (former General Mgr./Marketing Director for Bella Terra Mall) From: Rocky McKinnon To: 5unolementalcomm(@surfdty-hb.orQ Subject: Support for HB Tourism BID-#2024-30 Date: Tuesday,June 4,2024 8:56:32 AM Dear Mayor and City Council, I'm writing in support of adopting Resolution No. 2024-30,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As one of our few contracted surf lesson vendors here in HB,tourism is an essential part of McKinnon Surf& SUP Lessons business. It provides us with opportunities for exposure and growth. When tourism does well, we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as transportation and our surf lesson program that features HBs' only Adaptive Surfing Experience program for our Special Needs Community. Thanks to Huntington Beach's strong tourism economy,with an estimated $2.2 million visitors in 2023, we as a surf lesson vendor were able to keep our doors open and thrive. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities,who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share,the reduced visitors will lead to a decrease in our revenue as well as the City's TOT, sales tax and parking revenue from visitors. I am excited to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach, our business will benefit from this additional influx of visitors wanting to experience surfing here in Surf City USA. As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. We hope that the City Council will support the resolution of intent. Thank you, Rocky McKinnon 714-377-6101 Chief Instructor/Owner McKinnon Surf& SUP Lessons Yahoo Mail: Search'Organize. Conquer Moore, Tania From: Benson,Jon (HUNRH) <jon.benson@hyatt.com> Sent: Tuesday,June 4, 2024 9:26 AM To: supplementalcomm@surfcity-hb.org Subject: TBID Support Attachments: Email of Intent to Support - TBID Modification for CC Mtg June 4, 2024.pdf To Mayor and City Council, Please see attached letter of support. Thank you, Jon Jon Benson General Manager Hyatt Regency Huntington Beach Resort And Spa 21500 Pacific Coast Highway, Huntington Beach, CA 92648, USA +1 714 845 4600 I jon.benson@hyatt.com hyattregencyhuntingtonbeach.com _ HYATT REGENCY t ` 1 Ifn . avITreler� PCADE::$'010:CE my AWARDS 2024 ` VOTE NOWlr b ikk .fir`- http://cntraveler.com/vote THINK BEFORE YOU PRINT:Please consider the environment before printing this email 2024 Best Hotels in the USA-US News and World Report 2024 Four Diamond Resort-AAA 2023 Readers Choice Best Resorts in Southern California-Conde Nast 2023 Traveler's Choice Winner-Tripadvisor 2023 The Best Hyatt Beach Hotels in the US-The Points Guy 2023 World's Best Employers and Top Companies for Women-Forbes 2023 World's Most Admired Companies-Fortune Magazine 2023 Award of Excellence-Watertable,Wine Spectator Global Bio-Risk Advisory Council-GBAC START"^Accredited Facility Facebook Instagram 1 Dear Mayor and City Council, I'm writing in support of adopting Resolution No. 2024-30,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. The tourism industry is an essential part of Huntington Beach, with an estimated 2.2 million non-OC resident visitors in 2023. We are part of Huntington Beach's local economy, contributing millions of dollars in taxes. By bringing visitors to Huntington Beach, our industry also brings an additional income source for local businesses, helping to keep their doors open and their workers employed not just during the busy peak visitor seasons, but year-round. Over the next few years, Huntington Beach stands to lose substantial visitor industry market share to other OC and coastal California cities, who are all vying to attract visitors who spend millions of dollars annually. Many also have new hotel properties, new attractions or attraction upgrades in the pipeline, while Huntington Beach does not, making us less competitive compared to other popular OC tourism destinations. If Huntington Beach loses visitor industry market share, this will also reduce the City's overall revenues generated by visitors, such as TOT, sales tax and parking revenue. An increase in TBID funds would ensure Huntington Beach's tourism industry has essential funds to keep pace with the cost of doing business; reinvest into sales and marketing efforts to increase visitation to Huntington Beach, overnight stays at Huntington Beach paid lodging properties and encourage more visitor spend; and leverage upcoming large-scale world events such as the World Cup and the Olympics. Huntington Beach's non-tourism businesses and residents also will benefit from this modified program. With more visitors coming to Huntington Beach, local businesses will benefit from more foot traffic and potential sales that will help keep them open year-round, especially during the slow season. As part of the modified program, funds will also be spent on several improvements and enhancements in Downtown Huntington Beach, which can be enjoyed by Huntington Beach residents as well. I believe this modification will benefit not only the tourism BID and local businesses, but will also provide much needed funds to the city and make Huntington Beach a better place. I ask that City Council support the resolution of intent. Thank you, Jon Benson General Manager Hyatt Regency Huntington Beach Resort And Spa 21500 Pacific Coast Highway, Huntington Beach, CA 92648, USA +1 714 845 4600 I ion.benson@hvatt.com hvattregencvhuntingtonbeach.com Coktrym : 5A-1 i/51 CITY OF HUNTINGTON BEACH s31a0Pe! PUBLIC NOTICE PUBLIC HEARING FOR THE MODIFICATION OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT NOTICE IS HEREBY GIVEN THAT the City Council will hold a Public Hearing on the modification of the Huntington Beach Tourism Business Improvement District at its meeting scheduled on June 4, 2024, at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, 2000 Main Street, Council Chambers, as required by California Government Code Section §54954, and as approved by the City Council in Resolution No. 2024-13 as reprinted below: RESOLUTION NO. 2024-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO MODIFY THE MANAGEMENT DISTRICT PLAN OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT(HBTBID) WHEREAS,the City Council of the City of Huntington Beach initially created the Huntington Beach Tourism Business Improvement District(HBTBID) in 2014 by Resolution No. 2014-72; and WHEREAS,the City Council renewed the HBTBID in 2018 by Resolution No. 2018-84, and adopted the current Management District Plan(MDP) of the HBTBID; and WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows cities to modify the MDP at the request of the Owners' Association; and WHEREAS,the HBTBID Owners' Association, Visit Huntington Beach,has requested modification of the MDP. NOW, THEREFORE, by the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The recitals set forth herein are true and correct. 2. The City Council declares its intention to modify the HBTBID MDP. 3. The proposed modification of the HBTBID MDP will modify the HBTBID assessment rate. The current HBTBID assessment rate is four percent(4%) of gross short-term room rental revenue. The modified assessment rate is six percent(6%) of gross short-term room rental revenue, effective July 1,2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. 4. The time and place for a public meeting for comments on the modified HBTBID are set for May 7, 2024, at 6:00 PM, or as soon as possible thereafter as the matter may be heard, at 2000 Main Street, Huntington Beach, CA 92648. 5. The time and place for a public hearing on modification of the HBTBID MDP is set for June 4, 2024, at 6:00 PM, or as soon as possible thereafter as the matter may be heard, at 2000 Main Street, Huntington Beach, CA 92648. The City Clerk is directed to provide written notice to lodging businesses assessed within the modified HBTBID of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code §36623, no later than April 20, 2024. 6. The complete proposed, modified MDP is on file with the City Clerk and may be reviewed upon request. 7. At the public meeting and hearing,the testimony of all interested persons for or against the modification of the HBTBID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the modified HBTBID that will pay more than fifty percent(50%) of the estimated total assessment of the entire HBTBID, no further proceedings to modify the HBTBID shall occur for a period of one (1)year. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of April, 2024. For more information, contact Economic Development at 714.536.5582 or through the City's website at https://www.huntingtonbeachca.gov/. Publish: May 23, 2024 .. TE Column INTERIM AD DRAFT This is the proof of your ad scheduled to run in Huntington Beach Wave on the dates indicated below. If changes are needed, please contact us prior to deadline at (714) 796-2209. Notice ID: ZTniFNhilDHg21rSVhn4 i Proof Updated: May. 14,2024 at 01:11pm PDT Notice Name: PH Notice- HBTBID See Proof on Next Page FILER FILING FOR Tania Moore Huntington Beach Wave tania.moore@surfcity-hb.org (714)536-5209 Columns Wide: 5 Ad Class: Legals 05/23/2024:City Notices 575.72 Subtotal $575.72 Tax% 0 Total $575.72 PH Notice - HBTBID - Page 1 of 2 CITY OF HUNTINGTON BEACH PUBLIC NOTICE PUBLIC HEARING FOR THE MODIFICATION OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT NOTICE IS HEREBY GIVEN THAT the City Council will hold a Public Hearing on the modification of the Huntington Beach Tourism Business Improvement District of Its meeting scheduled on June 4,2024,at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, 2000 Maln Street, Council Chambers, as required by California Government Code Section §54954, and as approved by the City Council in Resolution No.2024-13 as reprinted below: RESOLUTION NO.2024-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO MODIFY THE MANAGEMENT DISTRICT PLAN OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (HBTBID) WHEREAS,the City Council of the City of Huntington Beach initially created the Huntington Beach Tourism Business Improvement District(HBTBID) in 2014 by Resolution No.2014-72; and WHEREAS,the City Council renewed the HBTBID In 2018 by Resolution No.2018-84, and adopted the current Management District Plan (MDP) of the H BTB I D;and WHEREAS,the Property and Business Improvement District Law of 1994, Streets and Highways Code§36600 et seq.,allows cities to modify the MDP at the request of the Owners'Association; and WHEREAS,the HBTBID Owners'Association,Visit Huntington Beach,has requested modification of the MDP. NOW,THEREFORE,by the City Council of the City of Huntington Beach does hereby resolve as follows: 1.The recitals set forth herein are true and correct. 2.The City Council declares its intention to modify the H BTB I D MDP. 3. The proposed modification of the HBTBID MDP will modify the HBTBID assessment rate. The current HBTBID assessment rate is four percent (4%) of gross short-term room rental revenue. The modified assessment rate is six percent (6%) of gross short-term room rental revenue,effective July 1,2024,or as soon as possible thereafter,and shall continue for the duration of the H BTB I Ds term. 4. The time and place for a public meeting for comments on the modified HBTBID are set for May 7,2024,at 6:00 PM,or as soon as possible thereafter as the matter may be heard,at 2000 Main Street,Huntington Beach,CA 92648. 5. The time and place for a public hearing on modification of the HBTBID MDP is set for June 4,2024,at 6:00 PM,or as soon as possible thereafter as the matter may be heard,at 2000 Main Street, Huntington Beach, CA 92648. The City Clerk is directed to provide written notice to lodging businesses assessed within the modified HBTBID of the date and time of the meeting and hearing,and to provide that notice as required by Streets and Highways Code§36623,no later than April 20,2024. 6. The complete proposed, modified MDP is on file with the City Clerk and may be reviewed upon request. 7. At the public meeting and hearing, the testimony of all Interested persons for or against the modification of the HBTBID may be received. If at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the modified HBTBID that will pay more than fifty percent (50%) of the estimated total assessment of the entire HBTBID, no further proceedings to modify the HBTBID shall occur for a period of one (1)year. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of April,2024. For more information,contact Economic Development at 714.536.5582 or through the City's website at https://www.huntingtonbeachca.gov/. Publish: May 23,2024 Huntington Beach Wave Published:5/23/24 PH Notice - HBTBID - Page 2 of 2 Miilkm. ia1... INCLUDES THE FALLEY N C VALLEY VIEW 1920 Main St. Suite 225, Irvine Irvine, California 92614 (714) 796-2209 legals@inlandnewspapers.com City of Huntington Beach - City Clerk's Office 2000 Main Street Huntington Beach, California 92648 Account Number: 5272431 Ad Order Number: 0011668694 Customer's Reference/PO Number: Publication: Huntington Beach Wave Publication Dates: 05/23/2024 Total Amount: $575.72 Payment Amount: $0.00 Amount Due: $575.72 Notice ID: ZTniFNhilDHq21rSVhn4 Invoice Text: CITY OF HUNTINGTON BEACHPUBLIC NOTICEPUBLIC HEARING FOR THE MODIFICATION OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT NOTICE IS HEREBY GIVEN THAT the City Council will hold a Public Hearing on the modification of the Huntington Beach Tourism Business Improvement District at its meeting scheduled on June 4, 2024,at 6:00 PM or soon thereafter at the Huntington Beach Civic Center,2000 Main Street, Council Chambers,as required by California Government Code Section§54954, and as approved by the City Council in Resolution No. 2024-13 as reprinted below: RESOLUTION NO.2024-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTONBEACH DECLARING ITS INTENTION TO MODIFY THE MANAGEMENTDISTRICT PLAN OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT(HBTBID)WHEREAS,the City Council of the City of Huntington Beach initially created the Huntington Beach Tourism Business Improvement District(HBTBID) in 2014 by Resolution No. 2014-72;and WHEREAS, the City Council renewed the HBTBID in 2018 by Resolution No. 2018-84,and adopted the current Management District Plan (MDP)of the HBTBID;and WHEREAS,the Property and Business Improvement District Law of 1994, Streets and Highways Code§36600 et seq.,allows cities to modify the MDP at the request of the Owners'Association;and WHEREAS,the HBTBID Owners'Association,Visit Huntington Beach, hasrequested modification of the MDP. NOW,THEREFORE, by the City Council of the City of Huntington Beach does hereby resolve as follows:l. The recitals set forth herein are true and correct. 2.The City Council declares its PH Notice - HBTBID - Page 1 of 2 .AIL._ See Proof on Next Page INCLUDES TIE FDVNT UN YALLEYVIEW .............. Huntington Beach Wave 1920 Main St.Suite 225,Irvine Irvine,California 92614 (714)796-2209 2000 Main Street Huntington Beach, California 92648 AFFIDAVIT OF PUBLICATION STATE OF CALIFORNIA County of Orange County I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above-entitled matter. I am the principal clerk of the Huntington Beach Wave, a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange County, State of California, on July 1, 1998, Case No. A-185906 in and for the City of Irvine, County of Orange County, State of California; that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates,to wit: 0512312024 I certify (or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct: Executed at Anaheim,Orange County, California,on Date: May 23, 2024. •,,,i „, , Cany99 . S'/�u re PH Notice - HBTBID - Page 1 of 2 CITY OF HUNTiNGTON BEACH PUBLIC NOTICE PUBLIC HEARING FOR THE MODIFICATION OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT NOTICE iS HEREBY GIVEN THAT the City Council will hold a Public Hearing on the modification of the Huntington Beach Tourism Business Improvement District at its meeting scheduled on June 4,2024,at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, 2000 Main Street, Council Chambers, as required by California Government Code Section§54954, and as approved by the City Council in Resolution No.2024-13 as reprinted below: RESOLUTION NO.2024-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO MODIFY THE MANAGEMENT DISTRICT PLAN OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT(HBTBID) WHEREAS,the City Council of the City of Huntington Beach initially created the Huntington Beach Tourism Business Improvement District(HBTBID) In 2014 by Resolution No.2014-72;and WHEREAS,the City Council renewed the HBTBID in 2018 by Resolution No.2018-84, and adopted the current Management District Plan(MDP)of the H BTBI D;and WHEREAS,the Property and Business improvement District Law of 1994,Streets and Highways Code§36600 et seq.,allows cities to modify the MDP at the request of the Owners'Association; and WHEREAS,the HBTBID Owners'Association,Visit Huntington Beach,has requested modification of the MDP. NOW,THEREFORE,by the City Council of the City of Huntington Beach does hereby resolve as follows: 1.The recitals set forth herein are true and correct. 2.The City Council declares its intention to modify the HBTBID MDP. 3. The proposed modification of the HBTBID MDP will modify the HBTBID assessment rate.The current HBTBI D assessment rate is four percent (4%) of gross short-term room rental revenue. The modified assessment rate is six percent (6%) of gross short-term room rental revenue,effective July 1,2024,or as soon as possible Thereafter,and shall continue for the duration of the H BTBID's term. 4.The time and place for a public meeting for comments on The modified HBTBID are set for May 7,2024,at 6:00 PM,or as soon as possible thereafter as the matter may be heard,at 2000 Main Street,Huntington Beach,CA 92648. 5.The time and place for public hearing on modification of the HBTBID MDP is set for June 4,2024,at 6.:00 PM,or as soon as possible thereafter as the matter may be heard,at 2000 Main Street, Huntington Beach, CA 92648.The City Clerk is directed to provide written notice to lodging businesses assessed within the modified HBTBID of the date and time of the meeting and hearing,and to provide that notice as required by Streets and Highways Code§36623,no later than April 20,2024. 6.The complete proposed,modified MDP is on file with the City Clerk and may be reviewed upon request. 7. At the public meeting and hearing, the testimony of all interested persons for or against the modification of the HBTBID may be received. if at the conclusion of the public hearing, there are of record written protests by the owners of the lodging businesses within the modified HBTBID that will pay more than fifty percent(50%) of the estimated total assessment of the entire HBTBID, no further proceedings to modify the H BTB ID shall occur for a period of one(1)year. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th dciy of April,2024. For more information,contact Economic Development at 714.536.5582 or through the City's website at https://www.huntingtonbeachca.gov/. Publish: May 23,2024 Huntington Beach Wave Published:5/23/24 PH Notice - HBTBID - Page 2 of 2 Switzer, Donna From: Casanova, Kriss Sent: Thursday, June 13, 2024 10:24 AM To: Switzer, Donna Subject: RE: HBTBID 2nd Amd & Reso No. 2024-30 I emailed to them so no need to mail.Thank you though. From:Switzer, Donna <Donna.Switzer@surfcity-hb.org> Sent: Wednesday,June 12, 2024 6:58 PM To:Casanova, Kriss<Kriss.Casanova@surfcity-hb.org> Subject: HBTBID 2nd Amd & Reso No. 2024-30 Hi Kriss, Attached for your records are fully executed copies of the Second Amendment to the Tourism Business District Management Agreement and Resolution No. 2024-30. Should a copy of the amendment be mailed to Kelly Miller at 155 Fifth Street,Suite 111? Thank you, Donna Switzer, CMC Senior Deputy City Clerk City of Huntington Beach,City Clerk's Office 1F' 714-374-1649 1 rNTiNST�o 2000 Main Street, cn„o 7,;-�Z Huntington Beach,CA --rGt F9=: City of Huntington Beach 92648 v9'• -- , , APPROVED 7-0 fib://) GPI F File #: 24-313 MEETING DATE: 5/7/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Eric G. Parra, Interim City Manager VIA: Jennifer Villasenor, Director of Community Development PREPARED BY: Kriss Casanova, Economic Development Manager Subject: Receive Public Comment Pursuant to CA Government Code - GOV § 54954.6 Regarding the Modification of the Management District Plan for the Huntington Beach Tourism Business Improvement District Statement of Issue: On April 16, 2024, the City Council adopted Resolution No. 2024-13 declaring its intention to modify the Huntington Beach Tourism Business Improvement District (HBTBID) Management District Plan (MDP) to increase the HBTBID assessment rate from four percent (4%) to six percent (6%) of gross short-term lodging revenue. Additionally, Resolution No. 2024-13 scheduled a public meeting on May 7, 2024, to receive comments on the proposed modification, and a public hearing on June 4, 2024, to consider approval of the modification. Financial Impact: The proposed increase in the HBTBID assessment rate from 4% to 6% is estimated to generate an additional $3 million in revenue annually recorded in account 70900709.40500 that will be passed through to Visit Huntington Beach on behalf of the HBTBID, for a total of approximately $1 OM in annual pass-through revenue. Recommended Action: Receive and file public comment related to the proposed modification of the Management District Plan for the Huntington Beach Tourism Business Improvement District per adopted Resolution No. 2024-13. Alternative Action(s): Do not continue proceedings to modify the HBTBID. City of Huntington Beach Page 1 of 6 Printed on 5/1/2024 powers LegistarM File #: 24-313 MEETING DATE: 5/7/2024 Analysis: Background Promoting Huntington Beach as a desirable tourism destination and increasing awareness of available lodging options is a component of the City's continued economic vitality. In 2014, the original Hotel/Motel Business Improvement District was disbanded, and the HBTBID was formed pursuant to the California Property and Business Improvement District Law of 1994, which authorized special benefit assessment districts to raise funds within a specific geographic area. This approach has been used in other tourist destination communities throughout California to increase demand for room night sales at assessed lodging businesses. The HBTBID is a benefit assessment district to help fund sales, marketing, public relations, group sales, and tourism enhancement programs for Huntington Beach lodging businesses paying the assessment. Funding is derived from assessments (paid by guests at checkout) from all lodging businesses, existing and in the future, available for public occupancy located within the City boundaries, which include Sunset Beach. Those funds are used to provide services that are desired by and benefit the lodging businesses within the HBTBID. The district is comprised of 21 hotels/motels and approximately 200 short-term rentals (STRs). Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, was formed in 1989 as the official destination marketing organization for Huntington Beach and serves as the HBTBID Owners' Association. VHB consists of approximately 17 staff members and 22 board members working to promote tourism to Huntington Beach and increase overnight stays in the City's hotels/motels and short-term rentals. Refer to Attachment 1 for more information on VHB and Frequently Asked Questions (FAQs). VHB is tasked with managing funds and implementing programs in accordance with the district's Management District Plan (MDP). The MDP includes the district's boundaries, a service plan and budget, and a proposed means of governance. The City collects the assessment funds from the lodging businesses, monthly for hotels/motels and quarterly for Short-Term Rentals, and then distributes the funds to VHB. VHB is responsible for implementing the activities and services identified in the MDP and for submitting an annual report of activities to the City Council for approval. The HBTBID term runs through June 30, 2028, and the current assessment rate is four percent (4%) of gross room rental revenue for short-term stays. This assessment is charged to consumers separately from and in addition to the City's ten percent (10%) Transient Occupancy Tax (TOT), making the total guest checkout rate 14% of the daily overnight fee. In 2019, the HBTBID was renewed, and the City Council simultaneously approved an assessment rate increase from three percent (3%) to four percent (4%) to mitigate the loss of TOT funding that the City had previously been providing to the HBTBID. At the same time, the prior Memorandum of Understanding (MOU) between the City and VHB was replaced with a Management Agreement that sets forth the duties and responsibilities of the City and VHB in administering and managing the funds. This prior MOU required the City to convey ten percent (10%) of the City's TOT revenue to VHB. However, this TOT revenue sharing was eliminated in the 2019 Management Agreement, which required that 100% of TOT revenues would be retained by the City and that funding to VHB would remain unchanged with the one percent (1%) • City of Huntington Beach Page 2 of 6 Printed on 5/1/2024 power61 Legistar File #: 24-313 MEETING DATE: 5/7/2024 assessment rate increase. VHB is currently seeking to modify the MDP to increase the assessment rate from four percent (4%) of gross short-term lodging revenue to six percent (6%). In June 2023, VHB's Board of Directors approved the assessment increase to ensure that tourism promotion funding is adequate to market Surf City USA and remain competitive with other popular destinations that have dedicated more resources and are adding lodging properties/attractions annually. The California Property and Business Improvement District Law of 1994 requires the HBTBID's Owners' Association (VHB) to provide written request to the City to initiate modification of the MDP. In response to written request by VHB dated August 29, 2023, the City Council adopted Resolution No. 2024-13 (Attachment No. 2) declaring the City's intention to modify the MDP of the HBTBID. MDP Modification VHB is seeking to increase its budget to ensure that Huntington Beach's visible presence remains competitive with other tourism destinations, leading tourists to choose Huntington Beach. If approved, the increase is anticipated to generate an additional —$3 million per year (for a total of—$10 million per year) and would become effective July 1, 2024, or as soon as possible thereafter, and continue for the remaining duration of the HBTBID's term (through June 2028). No changes to the boundaries are proposed; however, some additional minor modifications have also been incorporated into the modified MDP (Attachment 3). The existing and proposed budget are shown below. The modified budget includes 65% of funds allocated towards Sales & Marketing and 10% dedicated for Tourism Enhancement Programs. Proportional budget allocations are to remain the same for the remainder of the HBTBID term. At the end of the term, the HBTBID may be renewed by the City Council for up to ten (10) additional years if lodging business owners support continuing the programs. An updated MDP would be drafted and VHB would make a similar written request to the City to initiate proceedings, including a public hearing. Budget Category Existing Proposed Sales & Marketing 72% 65% Tourism Enhancement Programs 10% Administration 19% 19% Contingency/Reserve 8% 5% City Admin Fee 1% 1% Total Budget (Approximately) $7M $10M City of Huntington Beach Page 3 of 6 Printed on 5/1/2024 power LegistarM File #: 24-313 MEETING DATE: 5/7/2024 VHB has submitted a VHB & Visitor Industry Introduction (Attachment 4) describing its programs, services, and key performance indicators related to its ability to market and sell the Surf City USA® brand experience leading to increased room rentals. To maintain Huntington Beach's competitive position, additional funding would be used for activities above and beyond those that are currently provided with the existing funding level as follows: • Sales & Marketing - Destination sales and marketing programs, which will target key visitor markets, including markets that generate substantial overnight visitation to Huntington Beach and related visitor spending throughout the year, especially during non-peak seasons and mid-week. • Tourism Enhancement Programs - Add new and/or repurposed projects to Huntington Beach's current brand offerings to increase year-round overnight visitation by improving the overall brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. If approved, the total guest charge will increase from 14% to 16% with 10% going to City TOT (which remains unchanged) and 6% to the HBTBID. As an indirect result of VHB's expanded marketing efforts, it is anticipated that as occupancy rates and overall visitation numbers increase, so too will the City's TOT revenue which is currently budgeted at $16,580,000 or 5.8% of the City's total General Fund revenue for FY 2023/24. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. VHB petitioned its members for their support of the modification and thus far has received support from the major lodging business that represent over 85% in favor of the increased HBTBID assessment. HBTBID Modification Process The City Council adopted Resolution of Intention No. 2024-13 on April 16, 2024, which states the proposed modification to the MDP and schedules a duly noticed public hearing for June 4, 2024. As required by state law, a public meeting must also be held prior to the public hearing to allow lodging businesses the opportunity to provide public comment on the proposed modification. Any owner of a lodging business that is subject to the assessment may protest the HBTBID modification. Every written protest shall be filed with the City Clerk at or before the public hearing. If written protests are received from lodging business owners representing fifty percent (50%) or more of the estimated annual assessments levied, the HBTBID shall not be modified and no further proceedings to increase the assessment shall be taken for a period of one year. If public comments prompt adjustments, the City Council may elect to make changes to the MDP but cannot increase the assessment rate any further. If protests totaling 50% or more are not received, then City Council, City of Huntington Beach Page 4 of 6 Printed on 5/1/2024 power LegistarTM File #: 24-313 MEETING DATE: 5/7/2024 following the public hearing, may decide to modify the HBTBID by adopting a Resolution of Modification. The schedule below outlines the process to modify the HBTBID. April 16, Resolution of Upon the written request by the HBTBID Owners' 2024 Intention Association (VHB), the City Council may adopt a Resolution (ADOPTED) of Intention which states the proposed modification to the HBTBID. VHB provided a written request for the proposed modification to the City dated August 29, 2023, and the City Council adopted the Resolution of Intention on April 16, 2024. April/ May Notice The City must mail written notice to each lodging business 2024 (MAILING owner affected by the proposed modification at least 45 NOTICE days prior to the public hearing. Mailing the notice begins a COMPLETED) mandatory 45-day period in which owners may protest the modification:The City must also mail a complete copy of the Resolution of Intention at least ten (10) days before the public hearing and must publish the Resolution of Intention in a newspaper of general circulation at least seven (7) days before the public hearing. The City Clerk's office mailed the written notice to each affected lodging business owner, including permitted STR operators, on April 19, 2024. May 7, Public Meeting Public meeting to allow public comment on the modification 2024 of the HBTBID. No City Council action required. June 4, Public Hearing & City Council shall hold a public hearing, not more than 90 2024 Resolution of days after the adoption of the Resolution of Intention, on the Modification proposed HBTBID MDP modifications. If City Council, following the public hearing, decides to modify the HBTBID, the City Council shall adopt a Resolution of Modification. The increase in the assessment rate would become effective July 1, 2024, or as soon thereafter as feasible. Amendment to the Management Agreement The Management Agreement between the City and VHB describes the specific responsibilities of each party. If the City Council adopts the Resolution of Modification, staff will also recommend an amendment to the Management Agreement to define specific Tourism Enhancement Programs that both the City and VHB would agree to fund during the remainder of the HBTBID term. Funding by VHB would equal ten percent (10%) of the assessment budget. The City would agree to match VHB's commitment and provide similar improvements to improve the visitor and resident experience. Some examples of Tourism Enhancement Programs that would help increase overnight stays include wayfinding signs, infrastructure upgrades, public restroom enhancements, walkability improvements, connectivity and accessibility improvements, and lighting. Environmental Status: City of Huntington Beach Page 5 of 6 Printed on 5/1/2024 power LegistarTM File #: 24-313 MEETING DATE: 5/7/2024 This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Goal 1 - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth. For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>. Attachment(s): 1. VHB FAQs 2. Resolution No. 2024-13 3. Modified Management District Plan (clean) 4. VHB & Visitor Industry Introduction 5. PowerPoint Presentation City of Huntington Beach Page 6 of 6 Printed on 5/1/2024 power'LegistarTM Frequently Asked Questions about Visit Huntington Beach Who is Visit Huntington Beach (VHB)? VHB, formed in 1989, is the official destination marketing organization (commonly referred to as a DM0)for Huntington Beach, California. It is a private, non-profit 501(c)(6) organization. VHB is an economic development organization that reinvests visitor-generated assessments from Huntington Beach lodging properties to create more local jobs, increase visitor spending at local businesses and increase overnight visitor stays in our local hotels. All these results lead to an increase in tax revenues for local government. Visit Huntington Beach consists of a team of dedicated staff members and board members working toward a more successful Huntington Beach. A non-membership organization, its partners consist of the City of Huntington Beach, all Huntington Beach lodging properties and visitor-serving businesses, and visitor-serving organizations in Huntington Beach. For questions regarding partnership, please view our Partner Benefits section or contact a staff member. Visit Huntington Beach works collaboratively with many organizations within the community, but is not involved in their operations or decision-making processes. For more information on those organizations and their work, please visit their organization websites below: City of Huntington Beach • Government services; parking permits; City Council meetings; policies; public safety& law enforcement. Downtown Huntington Beach Business Improvement District • Represents over 250 downtown businesses that provide visitors with dining, shopping, and retail experiences • Surf City Nights (the only certified farmers' market in HB) • Surf City Artisan Fair Huntington Beach Chamber of Commerce • With a membership of more than 600 Huntington Beach businesses,the Chamber works to build a stronger Huntington Beach business community. What is VHB's Mission? VHB supports and advocates for the economic vitality and quality of life for our Huntington Beach community through inspirational destination marketing and brand management. What is VHB's legal organizational designation? VHB is a private, non-profit 501(c)(6) organization. It is not a department of the City of Huntington Beach. 826 Why does VHB use the trademark Surf City USA®? In 2004,Visit Huntington Beach registered the trademark Surf City USA®with the USPTO, and was officially was approved in 2007. Inspired by the nickname that was popularized by the 1963 song "Surf City" by Jan and Dean, Surf City USA® embodies the Huntington Beach brand as the quintessential Southern California beach-town, with more than a century of surf culture and history, 10 miles of wide-open beaches, consistent waves throughout the year, and the iconic Huntington Beach Pier. For those interested in licensing the Surf City USA®trademark, please contact VHB at (714) 969- 3492 or info@surfcityusa.com. Why is a strong local tourism economy important? A strong local tourism economy generates'tax revenue for the City. These come in the form of hotel occupancy taxes (TOT), sales taxes on goods and services purchased by tourists, and taxes on attractions and events.Visitor spending also increases the effective tax base of a community. With these tax revenues, it goes into the City's general fund, allowing local governments to provide a higher quality of services without increasing taxes for its residents. This can be reinvested into essential public services and amenities that benefit residents, such as parks, beaches, road maintenance, and emergency services. Revenue from tourism taxes also drives local economic growth, creating jobs and increasing residents' income. This stimulates spending within the community, fostering further revenue generation and potentially alleviating the need for higher taxes. If Huntington Beach loses its tourism market share to other SoCal destinations, it would weaken the local tourism economy, which would in turn reduce revenue for the city's general fund that supports various essential city services, e.g. public safety, roads and infrastructure. It is therefore essential to modify the self-assessed TBID to a higher percentage, as it will sustain a strong local tourism economy and its efforts to drive economic vitality in Huntington Beach. What is Transient Occupancy Tax(TOT) and how is it used? Huntington Beach's overnight lodging guests pay a 10%TOT per room per night.The City of Huntington Beach retains 100% of all TOT revenues as of February 1, 2019. (Previously, VHB had received 10% of TOT visitor tax revenues for destination marketing). These revenues support the City's general fund and help to pay for City services including police,fire, marine safety, beach maintenance, parks, and libraries. Note: City governments around the country retain an average of 50% of TOT revenues, with the remainder invested in destination marketing with the city's DMO. The City of HB retains 100%. • 827 How much TOT revenue is generated each year? In FY 2022-2023, total TOT revenue collections were approximately $16 million. Since 1996, over$200 million in TOT revenues have been collected by the City. What is the benefit of tourism to Huntington Beach residents? Combined state and local tax revenues, excluding Transient Occupancy Tax revenue, generated by visitors helped to offset the average Huntington Beach resident's tax burden by $565 per household in 2017.Tourism also supports local businesses and attracts signature events to the destination, allowing residents to enjoy a wider range of restaurants, retail, and activities close to home. Do local residents pay taxes that fund Visit Huntington Beach? No. How much TOT revenue is dedicated to VHB? 0%. As of February 1, 2019, VHB does not receive any TOT funds. How is VHB funded? VHB's funding does not come from taxes paid by local residents. Funding is derived through a Tourism Business Improvement District (TBID) self-assessment paid by Huntington Beach lodging properties who collect the assessment from overnight hotel guests choosing to stay in one of Huntington Beach's 21 hotels (2,300 total available rooms). What is the Tourism Business Improvement District (TBID)? The TBID was originally formed in 2002 by Huntington Beach hotel properties and approved by City Council. All lodging properties within the TBID's boundaries (the city limits of Huntington Beach) agreed to place a self-assessment on overnight stays to help fund VHB's efforts to market and sell the destination to visitors. Currently, the TBID consists of 21 local hoteliers and 218* licensed vacation rentals.The TBID assessment is paid by visitors who stay in Huntington Beach lodging properties.TBID assessment revenues provide a more dependable, long-term, sustainable revenue source to market Surf City USA®globally without any tax burden on local residents. Huntington Beach's overnight hotel guests pay a 4% assessment fee for each occupied room/vacation rental per night during their stay. (*total count fluctuates) How much TBID assessment revenue is dedicated to VHB? The current TBID management district plan went into effect on February 1, 2019 with a 4% self- assessment rate for all Huntington Beach lodging properties that would be used to fund VHB's program of work. Guests staying at these properties pay this rate upon checkout. In 2019,this plan was expected to result in annual TBID revenues of$5.2 million. It also allowed the City of Huntington Beach to receive over$1 million in revenues for the general fund that were previously allocated to Visit Huntington Beach through Transient Occupancy Taxes (TOT). 828 How much is VHB's annual revenue? In FY 2022-2023, VHB's annual revenue was approximately$7 million dollars, all paid by Huntington Beach's overnight hotel visitors. What does VHB do with TBID assessment dollars? TBID assessments fund vital, important VHB program of work areas, which greatly benefit our community and overall visitor experience: All metrics below is a reflection of the 2022-2023 fiscal year(July 1st-June 30th). • Overall brand marketing for Huntington Beach, Surf City USA. • Traditional advertising in key visitor markets with over 1 billion advertising impressions. • Digital and social media programs, including ownership and management of surfcityusa.com (relaunched website with new design in July 2022), with over 1.3 million annual website sessions, 2.1 million pages viewed, 109,550 Instagram followers; 84,342 Facebook fans; 15,950 Twitter followers, and 3,007 Linkedln followers; 2,052 Pinterest followers; and 914 followers to the recently created TikTok account. • Public relations, which generated 1,900 Barcelona Principles score. o The Barcelona Principles refers to the Barcelona Declaration of Research Principles, a set of seven voluntary guidelines established by the public relations(PR)industry to measure the efficiency of PR campaigns. They were the first overreaching framework for effective public relations and communications measurement. • Destination sales (conventions, meetings, groups), which last year was responsible for sourcing over 900 leads, of which over 50,000 hotel room nights were booked into local hotels. • High demand publications such as HB's official Visitors Guide, Visitor Map and Historical Walking Tour brochures. • International and domestic travel trade programs targeting leisure travelers via trade shows generating 15 in-destination familiarization tour visitors, and sales outreach to 733 tour operators and travel agents in 3 target countries. • HB Film Commission that works closely with the City's Economic Development office to help generate 111 film permits. • Surf City USA's Nighttime Ambassador Program that serves visitors and businesses on weekends and during special events year-round. • Visitor Information Kiosk at the Pier, which is open seven days a week, served over 53,000 walk-up visitors. • Welcome Center at the Huntington Beach International Surfing Museum, which is open six day a week. • Free monthly partner information meetings designed to provide HB's businesses with actionable steps to increase visitor generated expenditures for local businesses. What do vacation rentals get out of paying into the TBID self-assessment? Under the direction of Visit Huntington Beach's Board of Directors, one of VHB's main 829 responsibilities is to ensure the largest well of visitors flow into Huntington Beach to stay, shop, and play. Regardless of lodging choices, destination marketing is the number one deciding factor on travel decisions and it is crucial to keep the destination top of mind when travelers decide where to spend their travel budget. Visit Huntington Beach plans and deploys year-round sales & marketing programs to boost visitor numbers, room bookings and tourism spending for all lodging properties. By promoting Huntington Beach as a fun, desirable tourism destination, we entice more visitors to come and stay in the destination, whether at a hotel, short-term rental or with friends and family. A TBID modification increase would allow for bespoke vacation rental campaigns, influencer campaigns, website promotion, and "Live Like a Local" materials designed specifically to benefit STVR owners and their guests. Why is the Visit Huntington Beach Board of Directors asking City Council to affirm its TBID assessment increase from 4%to 6%? Visit Huntington Beach's tourism marketing budget is falling behind other competitive southern California destinations' budgets. This significantly limits Visit Huntington Beach's (VHB) ability to market and sell the Surf City USA® brand experience around the world. Investing in our destination marketing efforts through an increased assessment will directly translate into enhanced promotion and visibility for Huntington Beach, ultimately attracting more visitors and driving economic growth. Over the last several years, costs have risen in areas such as advertising, creative designs, strategic partnerships for group business, and labor, making it difficult for VHB's budget to keep pace with the increased cost of doing business. Many OC and SoCal destinations also have new travel and hotel experiences that are poised to draw visitors to them and away from Huntington Beach, making it increasingly imperative to maintain our competitive position. Without an increase to VHB's sales and marketing budget, Huntington Beach will have a less visible presence compared to other tourism destinations, leading to tourists choosing to visit other destinations instead of Huntington Beach.As a result, Huntington Beach hotel occupancy and room rates will drop, impacting the hotel industry, which will also lead to drastically diminished TOT, sales tax and parking revenues to the City. Why should City Council affirm a TBID assessment increase instead of a TOT increase? Studies have demonstrated that the economic impact of the TBID assessment is greater than solely increasing the TOT. By raising the assessment, we not only diversify our revenue streams but also bolster the City's budget by further increasing TOT and sales tax revenue. In 2019,Tourism Economics researched the impact of TIDs on destination performance, revealing that destinations with TIDs consistently outperform others. On average,TIDs yield a significant boost of 2.1% in hotel room demand and 4.5% in hotel room revenue compared to those without TIDs.This translates to a notable increase of 150,000 room nights and $51 million in hotel revenue for the average destination in 2019. 830 Specifically in Colorado,the Denver Tourism Improvement District (DTID) was established in 2016 to bolster revenue for tourism-related services and enhance overnight visitation, funding vital capital improvement projects.Tourism Economics analyzed the DTID's impact in 2019 and found that Visit Denver's $36 million budget generated an impressive $73 million in local tax revenue, effectively doubling the initial investment.This demonstrates that the benefits of TIDs extend beyond merely boosting hotel sales-they serve as a pivotal catalyst for driving overall economic growth. What approach does the VHB Board of Directors recommend to the City for any future initiatives to increase TOT that would have hotel industry support? The VHB Board of Directors understands that the tourism industry is part of the local economy tapestry and remains open to future City initiatives to increase its overall general fund budget. How do you track and determine the success of VHB's programs? The Visit Huntington Beach Board of Directors' strategy includes comprehensive,full-funnel sales & marketing initiatives designed to drive a steady flow of leisure and group business throughout the year. Throughout the entire run of various programs, Visit Huntington Beach uses several data sources as well as over 50 Key Performance Indicators (KPIs) to monitor and determine the Return on Investment (ROI) performance of its Paid, Owned, Earned, and Shared channels. Why does VHB support large signature events? Research data shows that large events typically bring an increase in visitation and visitor spending to a destination during the events. By hosting special events, the tourism industry benefits from increased visitors, but also generates substantial revenue for the City as visitors spend more on accommodations, parking, dining, shopping, and entertainment during an event.This influx of spending not only supports local businesses but also fuels economic growth in the community. In addition,VHB strategically partners with world-class special events that align with the destination's brand and image (for example, the US Open of Surfing) to help drive business year-round, especially during non-peak periods. Additionally, special events provide an opportunity for Huntington Beach to showcase our unique attractions, culture, and hospitality to a wider audience, spotlighting Huntington Beach to new audiences around the world that will attract.future or repeat visitors. Is VHB an accredited destination marketing organization (DM0)? VHB has been fully accredited by Destinations International (DI), the world's leading trade association for DMOs, since 2012. VHB renewed its accreditation in 2022 and received the highest possible recognition for a destination organization—"Accreditation with Distinction," indicating that the organization exceeded the minimum requirements for accreditation with over 100 mandatory and voluntary standards that span a variety of performance areas. With over 200 destination organizations who have obtained DMAP recognition,fewer than 10% earn "Accreditation with Distinction". 831 How did VHB get accredited? To become accredited, a DMO must demonstrate compliance with more than 100 performance standards in the areas of governance, strategic planning, stakeholder engagement/advocacy, finance, human resources, management and operations, technology, research and marketing intelligence, brand management, marketing, communications, sales and services, membership/partnership,visitor services, and destination development. Accreditation standards are set by an independent panel of industry veterans representing a diverse selection of destination organizations. Standards are regularly revisited and revised to reflect the evolution of best practices in the industry and accredited organizations are required to re-apply every five years. Completing the renewal process typically takes 9-12 months. What are VHB's Core Values? VHB embodies a community-focused spirit of service that is proactive and strategic. How many full-time employees does VHB currently employ? VHB currently has 17 full-time employees. Is VHB's current staffing level high or low when compared to other DMOs and industry standards? The average number of full-time employees for DMOs in VHB's annual budget category ($5— $9.9 million) is 24 FTEs (Destination Organization Performance Reporting, DI). VHB's 17.6 FTE's is 27% less than DMOs in the same budget category. Have any of VHB staff achieved higher professional certification? There are less than 400 Certified Destination Marketing Executives (CDME) in the world.Two of VHB's 17 full-time team members are CDMEs, with one additional team member who is in progress. DI's highly respected 2-3 year educational CDME program offered through Purdue University is the accounting world's equivalent of earning a C.P.A., but for DMO professionals. How many total annual visitors experience Huntington Beach? The definition of a "visitor"to any destination can vary.The sometimes-quoted annual number of between 11-15 million HB visitors is loosely based on the number of estimated cars parking at HB's beach parking lots. This number includes local residents. For example, a local HB resident who has a beach pass and parks at the beach 20 times a year to catch some morning waves is included in this informal tally as 20 visitors. VHB commissions a more robust visitor research study every several years, designed to provide a deeper and more scientifically significant analysis of HB visitors. In these studies, HB visitors are defined as "anyone who lives outside of Orange County and who has visited Huntington Beach for the day or stayed there overnight." Non-Orange County resident visitors to Huntington Beach: • 2022: 2.26M 832 • 2021: 2.11M • 2020: 1.69M • 2019: 2.78M • 2018: 2.61M • 2017: 3.5M • 2016: 3.34M • 2015: 3.22M • 2014: 3.18M Source: Lauren Schlau Consulting, Inc.; CIC Research, Inc.;Tourism Economics. May 2023. Which visitors are being targeted by VHB's integrated sales and marketing plan? Non-Orange County residents who desire overnight hotel accommodations in Huntington Beach (including Sunset Beach and all other non-resort hotel property locations) are the primary target audience of VHB's very detailed and measurable sales and marketing efforts. VHB secondarily promotes in destination shopping, dining, tour and attraction experiences to help extend length of stay, repeat visitation and day visitation. Who are these visitors? Here are some highlights from the most recent comprehensive visitor profile study: • Median age is 39 years • Household income is $105,000 • Average number of nights stayed in Orange County is 3.77 • Average size of visitor group is 3 people • About three out of four visitors (75%) are day visitors • Nearly 25% have overnight accommodations in HB, with 17.5% reporting overnight hotel stays, 2.4% other paid lodging, and 5% reporting private home accommodations and a very small percentage staying in campgrounds • 69% of visitors drove to HB, 9% used ride share (Uber/Lyft), while about 21%traveled by air • On average, HB visitors spent $395 per group (or$133 per capita), per trip in Orange County Where are these visitors from? 93% are domestic US visitors with top geo markets of: • Southern California • San Francisco and the Bay area • Phoenix/Scottdale in Arizona • Dallas/ Houston/Austin in Texas • Seattle/Portland/Vancouver in the Pacific Northwest • Utah • Las Vegas in Nevada 833 • Denver in Colorado • Chicago in Illinois 7% are international visitors with top geo markets of: • Canada • UK • Mexico • China/Japan/South Korea • Middle East • Australia What is the economic impact on the local Huntington Beach economy by non-Orange County resident visitor spending? The last economic impact study of non-Orange County residents visiting HB was completed in 2022, assessing the economic impact of 2022 visitors: • Visitor spending: $506.3 million in direct spending, averaging$1.38 million a day. • Estimated 4,146 jobs supported by visitor spending, or 1-in-25 jobs in the City. • Over$17.3 million in total projected tax revenue from visitor spending contributed to the City of Huntington Beach's general fund. Source: Lauren Schlau Consulting, Inc.; CIC Research, Inc. May 2023. How can I view a copy of VHB's FY22-23 2 Annual Highlights? For more information, see VHB's FY22-23 Annual Highlights. 834 RESOLUTION NO. 2024-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO MODIFY THE MANAGEMENT DISTRICT PLAN OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (HBTBID) WHEREAS, the City Council of the City of Huntington Beach initially created the Huntington Beach Tourism Business Improvement District(HBTBID) in 2014 by Resolution No. 2014-72; and WHEREAS, the City Council renewed the HBTBID in 2018 by Resolution No. 2018- 84, and adopted the current Management District Plan(MDP) of the HBTBID; and WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows cities to modify the MDP at the request of the Owners' Association; and WHEREAS, the HBTBID Owners' Association, Visit Huntington Beach, has requested modification of the MDP. NOW,THEREFORE, by the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The recitals set forth herein are true and correct. 2. The City Council declares its intention to modify the HBTBID MDP. 3. The proposed modification of the HBTBID MDP will modify the HBTBID assessment rate. The current HBTBID assessment rate is four percent(4%) of gross short-term room rental revenue. The modified assessment rate is six percent(6%) of gross short-term room rental revenue, effective July 1, 2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. 4. The time and place for a public meeting for comments on the modified HBTBID are set for May 7, 2024, at 6:00 PM, or as soon as possible thereafter as the matter may be heard, at 2000 Main Street, Huntington Beach, CA 92648. 5. The time and place for a public hearing on modification of the HBTBID MDP is set for June 4, 2024, at 6:00 PM, or as soon as possible thereafter as the matter may be heard, at 2000 Main Street, Huntington Beach, CA 92648. The City Clerk is directed to provide written notice to lodging businesses assessed within the modified HBTBID of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code §36623, no later than April 20, 2024. 6. The complete proposed, modified MDP is on file with the City Clerk and may be reviewed upon request. 835 RESOLUTION NO. 2024-13 7. At the public meeting and hearing, the testimony of all interested persons for or against the modification of the HBTBID may be received. If at the conclusion of the public hearing,there are of record written protests by the owners of the lodging businesses within the modified HBTBID that will pay more than fifty percent(50%) of the estimated total assessment of the entire HBTBID,no further proceedings to modify the HBTBID shall occur for a period of one (1) year. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of April, 202 °elk,— Mayor' REV ED AN.?\,(PR VED: APPROVED AS TO FORM: M! City Manager Ci Attorney ATTEST: INITIATED AND APPROVED: ki"-044, 4Z6-/ /1//.. -4.... City Clerk' irep or of Community Development 2 23-13464/319475 836 Res. No. 2024-13 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, 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 April 16, 2024 by the following vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, Kalmick NOES: None ABSENT: None RECUSE: None 6W9414t 62474402 City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 837 2019-2028 d:\ VISIT HUNTINGTON sax. BEACH _ HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law of March 27, 2024 1994, Streets and Highways Code section 36600 et seq. Contents I. OVERVIEW 2 II. BACKGROUND 4 III. IMPETUS TO RENEW THE HBTBID 5 IV. ACCOMPLISHMENTS 7 V. BOUNDARY 15 VI. BUDGET AND SERVICES 16 A. Annual Service Plan 16 B. Annual Budget 19 C. California Constitutional Compliance 19 D. Assessment 21 E. Penalties and Interest 21 F. Time and Manner for Collecting Assessments 22 VII. GOVERNANCE 22 A. Owners'Association 22 B. Brown Act and California Public Records Act Compliance 23 C. Annual Report 23 APPENDIX 1 —LAW 24 APPENDIX 2—ASSESSED BUSINESSES 35 Prepared by Civitas w CIVITAS PARTNERSHIPS•PROGRESS•PROSPERITY (800)999-7781 www.civitasadvisors.com 839 I. OVERVIEW Developed by Visit Huntington Beach (VHB) and Huntington Beach lodging businesses,the renewed Huntington Beach Tourism Business Improvement District (HBTBID) is an assessment district that will continue to provide specific benefits to payors,by funding marketing and sales promotion efforts for assessed lodging businesses. The HBTBID was formed in 2014 for a five (5) year term; assessed lodging businesses subsequently renewed it for an additional nine (9) years and five (5) months. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach, as shown on the map in Section V. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales. Tourism Enhancement Programs,Marketing&Public Relations and Group Sales will increase overnight tourism and market payors as tourist,meeting and event destinations, thereby increasing room night sales. Budget: The total HBTBID annual assessment budget for each full year of operation was approximately$5,000,000. The initial"year" of operation was a partial year consisting of five (5) months, for which the assessment budget was approximately $2,083,333. Beginning July 1,2024,or as soon as possible thereafter,due to the modified assessment rate,the total HBTBID assessment budget for each full year of operation is anticipated to be approximately$10,000,000. Cost: The initial annual assessment rate was four percent (4%) of gross short-term room rental revenue. This Management District Plan (Plan) has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1,2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. Collection: The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed HBTBID has a nine (9) year and five (5) month life,beginning February 1, 2019 through June 30, 2028. Once per year, beginning on the anniversary of HBTBID renewal,there is a thirty(30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. The proposed time for implementation and completion of this Plan is February 1, 2019 through June 30, 2028. The modified assessment rate is set to take effect July 1, 2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. After the nine (9) year and five (5) month term, the HBTBID may be renewed for up to ten (10) years if lodging business owners support continuing the programs. HBTBID Management District Plan VISIT 2 March 27,2024 y HONTlNGT0N 840 BEACH SURF CITY USA' Management: Visit Huntington Beach will continue to serve as the HBTBID's Owners'Association. The Owners'Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council. HBTBID Management District Plan `4® VISIT 3 March 27,2024 ti HUNTINGTON 841 BEACH SURF CITY USA° II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over one hundred California destinations have followed suit. In recent years,other states have begun adopting the California model—Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita,Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities, like Portland, Oregon and Memphis,Tennessee have utilized their home rule powers to create TBIDs without a state law. California's TBIDs collectively Number of Districts Operating in raise over$300 million annually for California local destination marketing. With 12010113 competitors raising their budgets, 99 104 and increasing rivalry for visitor 100 �- -- ��88 dollars, it is important that 80 70 Huntington Beach lodging 60 46 -- :_ businesses continue to invest in 38 s , � � ; .� 40 29-3 s b • - stable, lodging-specific marketing 19- 5 :. programs. 20 _1.-2 4_6-g�12 _ _� a i; ° �. TBIDs utilize the efficiencies of 'b°) °° °oti °°` o°4O °�' oti° oti° oti' oti private sector operation in the ti ti ti ti ti ti ti market-based promotion of tourism districts. TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase room night sales. In California, TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key derence between 1BIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government use; • TBIDs are customized to fit the needs of payors in each destination; • TBIDs allow for a wide range of services; • TBIDs are designed, created and governed by those who will pay the assessment; and • TBIDs provide a stable,long-term funding source for tourism promotion. HBTBID Management District Plan1.41,'' 4 March 27,2024 VISIT HUNTINGTON 842 BEACH SURF CITY USA° III. IMPETUS TO RENEW THE HBTBID The existing HBTBID was established in 2014 with an assessment rate of three percent (3%) on overnight lodging revenues in Huntington Beach. While the HBTBID has been successful, there was still opportunity for growth in overnight visitation and room night sales revenue, especially during non-peak periods. At the time of HBTBID renewal in 2019, the City of Huntington Beach provided VHB with funding from Transient Occupancy Tax revenues, equal to one percent (1%) of overnight lodging revenues in Huntington Beach, pursuant to'an MOU between the City and VHB. The City and VHB have terminated the MOU and entered into a new long-term agreement with the City that includes the City retaining 100%of all TOT revenues. In the renewal of the HBTIBD,the assessment rate was increased initially to four percent (4%) of gross short-term room rental revenue to ensure that tourism promotion funding was not decreased during the term of the renewed HBTBID. To continue to ensure that tourism promotion funding is adequate to remain competitive with other popular destinations, this Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1, 2024, or as soon as possible thereafter, and shall continue through the duration of the HBTBID's term. There are several reasons to modify this Plan. The most compelling reasons are: 1. The Need to Maintain/Increase Competitiveness, Occupancy and Overall Visitation As the number of overnight accommodations grow in Orange County, as well as in competitive California cities and counties, it is crucial that Huntington Beach maintains and increases its competitiveness, occupancy levels and visitation from targeted markets. These goals can be accomplished by increasing the HBTBID assessment rate from four percent (4%) to six percent (6%), which will generate approximately $10,000,000 per each full year in dedicated HBTBID funding for improvements and activities to increase room rentals for assessed lodging businesses located within the modified HBTBID. Additional.HBTBID funds will continue to be used to implement new Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level: 1. Increase funding for destination sales and marketing programs, which will target key visitor markets,including markets that generate substantial overnight visitation to Huntington Beach and related visitor spending throughout the year, especially during non-peak seasons; and 2. Increase funding for the innovative HBTBID Visitor Services Enhancements program that adds new and/or repurposed projects to Huntington Beach's current brand offerings,which will increase year around overnight visitation by improving the overall HBTBID brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. 2. An Opportunity for Increasing City Revenues As an indirect result of the modified HBTBID, it is expected that as occupancy rates and overall visitation numbers increase, so too will the City's Transient Occupancy Tax revenue. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. 3. Stable Funding for Destination Marketing HBTBID Management District Plan 5 March 27,2024 ��•°a VISIT :P HUNTINGTON 843 BEACH SURF CITY USA" The current HBTBID was formed pursuant to the Property and Business Improvement District Law of 1994. The law allows a district to be renewed for up to ten (10) years without the need for City Council's annual approval to continue levying the assessment. Stakeholders elected to renew the HBTBID for a nine (9) year five (5) month term. The renewed term provides stable funding for destination marketing, visitor services enhancements, and management through June 30, 2028 and aligns the IHBTBID's fiscal year to the City's fiscal year. This will provide stable funding for destination marketing,visitor services enhancements, and management. Many of Huntington Beach's competitors are at or exceeding the level of funding available for destination marketing in Huntington Beach. The table below lists the funding raised by tourism improvement districts for VHB's current comparative set. Location Amount Raised Assessment Rate TOT Total Guest Rate Charge Anaheim $17,500,000 2%room revenue 15% 17% Mammoth Lakes $10,800,000 1%room revenue 13% 14% Newport Beach $10,500,000 3%room revenue 10% 13% Palm Springs $17,000,000 1%room revenue 14% 15% San Diego $41,000,000 2%room revenue 10% 12% San Luis Obispo $10,400,000 1%room revenue 10% 11% Santa Barbara $10,700,000 2%room revenue 12% 14% *As of August 2023 HBTBID Management District Plan VISIT 6 March 27,2024 HUNTINGTON 844 BEACH SURF"CITY USA` IV. ACCOMPLISHMENTS (2019 -2023) Assessed Lodging Business Revenue Assessed lodging business revenue has increased 27% since the HBTBID assessment was increased from 3% to 4%in 2019. Increases in assessed lodging business revenue by fiscal year are listed below: Fiscal % Note Year Increase FY 18-19 17% FY 19-20 (23%) (Covid hit in last quarter of fiscal year) FY 20-21 (6%) FY 21-22 41 FY 22-23 6% Marketing& Public Relations 2019/2020 • To adapt to the pandemic shutdowns,VHB revised its marketing mix from a more international/national blend of effort towards a more hyper local (Los Angeles/Orange County) and regional CA drive market focus. • In partnership with the City of Huntington Beach,launched OneHB Clean &Safe and Masks Up Surf City campaigns as part of its COVID-19 Recovery Plan. • Produced 360 virtual reality content and an Open for Business map as part of VHB's COVID- 19 Recovery Plan. • Participated in Virtual Trade Show: 10 pre-scheduled appointments from larger agencies and groups (AAA Northeast,HelmsBriscoe) to smaller agencies (Preferred ChoiceTravel, TravelStore Pasadena) in partnership with the Hyatt Regency Huntington Beach Resort& Spa • Date a Destination:Week-long event held by Gate 7 with the major Australian travel companies in Australia (Helloworld, Flight Centre), destination reps, and virtual one-on-one meetings. • Promoted Huntington Beach during the 2019 Great PacificAirshow as a VIP Chalet sponsor. 2020/2021 • Continued OneHB Clean &Safe and Masks Up Surf City pandemic safety campaigns. • Developed a Clean &Safe video series for each of the HB Collection properties that showcased their flexible meeting& events meeting spaces with 40% of its total square footage being outdoors and reiterated their commitment to ensuring a safe environment for their guests. • Incorporated Project Brief template to use for ideation and outlining all proposed large VHB projects. • Launched inaugural 12 Blocks of Cheer Campaign bringing together the four downtown resorts, Pacific City, and Downtown Main Street for a holiday campaign promoting local shops, businesses, and events. 40 participating businesses; 62 events/photo ops; 35 deals; 3,000+ map views. • Participated in Visit California's Calling All Californians Co-op Marketing Program designed to jump start the California economy and drive responsible in-state travel. From August— November,VHB rolled out advertising on travel-focused digital platforms. Campaign HBTBID Management District Plan !\ VISIT 7 March 27,2024 HUNTINGTON 845 BEACH SURF CITY USA' generated more than 9.6M impressions, 2,600 room nights with a gross booking value of $555.9K. • Launched social media advertising campaign on Facebook and Pinterest targeting in-state travelers, complementing the CallingAll Californians digital campaign. Garnered 3.2M impressions, over 82.7K video play-throughs, and over 15K clicks. • Media/PR efforts focused on garnering media coverage from hyper local outlets and influencers. • Authored 17 blogs with listicle themes (ex: Three Reasons to Travel to Huntington Beach During the Week). • Website Enhancements: Content Optimization and Navigation Architecture; SEO/SEM; Transitioned website to becoming ADA compliant. • Revamped paid social media program to align with the heavy audience shift to social media during the pandemic,leveraging the 24/7 cycle of the platforms to promote all relevant VHB marketing programs. Communities and engagement increased on Facebook and Instagram by 25%YoY. • Launched Datafy geo-location reporting dashboard tool which gains visitor and visitation insights from unique mobile device IDs that are observed while in destination. • Revised Visitor Guide with a 2020 pandemic lens and Rediscover Your Glow and Travel Responsibly themes. • Secured in-market agency representation in Canada,United Kingdom/Ireland, and Mexico. 790 total travel agents across all markets trained on selling Huntington Beach as a destination. 103 one-on-one trade show appointments with key international travel agents and tour operators. • Launched CA STAR Visit CA Training Tool used to train groups of travel agents and tour operators via an online course. • Brand USA Agent Training in Mexico City (200+ attendees). • Familiarization Tours with Air Canada,Discover North America (UK),British Airways (UK), and Virgin Holidays (UK). • Updated FILM HB Landing pages. FILM HB Data: 14 Film inquiries and 11 permitted shoots. 2021/2022 • In February 2021,launched inaugural Show Your HB Love campaign to highlight various businesses throughout Huntington Beach. • Launched #BeHere Marketing Campaign encouraging visitation and overnight stays in an open, outdoor, safer environment. The campaign's initial launch was during the summer and the second BeHere 2.0 flight leveraged Huntington Beach's elongated summer weather and events that extend well into the Fall,Winter and Spring seasons providing an opportunity for a second wave of summer leisure marketing- Summer 2.0—which overlays with the destination's needs period. Campaign garnered 15.2M impressions 32K clicks, reached 2.7M households and 122 cities. The booking component of the campaign generated 2.2M. impressions, and 9,200 room nights with a gross booking value of$2.4M. • Participated in Visit California's What If Co-op Marketing Program: Launched in Spring 2021, the multi-layered campaign helped to stimulate California's tourism economy and inspire domestic travel. • The 2021 WSL US Open ofSungpresented by Shisedo Marketing Campaign spotlighted Huntington Beach to over 15 countries around the globe. The campaign garnered $241.1K in media value, 110M social media impressions, 3.4M video plays, 1.3M live video views, 80K page views to landing page, and 1,000 pieces of media coverage media. HBTBID Management District Plan . 8 March 27,2024 � VISIT �� HUNTINGT©N 846 BEACH SURF CITY USA' • Promoted Huntington Beach during the 2021 PacificAirshozv as a Chalet partner, hosting meeting planners and select VIP clients to promote HB as a meetings and events destination. • Social Media program resulted in Facebook and Instagram communities increasing by 15% YoY, and social media engagement levels surpassing VHB 15% benchmark increase by as much as 135%. • Launched Crowdriff-visual content marketing software for travel and hospitality brands to help source,manage, and publish user-generated content and short-form video from Huntington Beach locals and visitors. • Launched a TikTok page in October 2021. • Launched a Group Sales e-newsletter targeting meeting& event planners. Built a database of over 2,900 recipients with an open rate of 19.1%. • Launched a UGC (user generated content) program encouraging locals and visitors to share their content with us for use on our social platforms and other materials. Generated 869 pieces of content. • Launched digital advertising program that sells banner ad space on heavily trafficked pages of the VHB website, as well as paid opportunities on other VHB digital platforms (social media, e-newsletter, et al). • Launched robust, content-calendar-based blog program to build more relevant, SEO- & SEM-friendly content on the VHB website. 60 blogs authored. • Launched a quarterly photoshoot program developed to fill in imagery needs for all of VHB's marketing initiatives. Quarterly Sessions: Outdoor Activities around the Pier,Action Sports,Laidback Luxury, and Select Service Hotel Properties. • Partnered with four Orange County DMOs to form the Orange County Coastal Tourism Alliance in response to the Orange County Coastal oil spill. Developed a website to serve as a central communication hub for elected officials, the City,media, tourism industry and the public to share the most current information and accurate, factual updates about the spill impacts and recovery. • In January 2022,launched quarterly Visitor Intercept Surveys.The data collected over calendar year 2022 will be included as insight in the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Hosted 13 journalists and 15 influencers,including"Travel Mom"influencer Emily Kaufman. Garnered national and local coverage including Forbes Magazine, Conde Nast Traveler,JustLuxe, CNN,Fox 11 News,Brides, and Orange County Register. • Produced Surf City USA® Uncovered- a 20-episode series featuring unknown or"hidden" gems within Huntington Beach. The series targeted visitors and locals encouraging them to explore. • Revised Visitor Guide with the 2022 themes of Be Here and Clean &Safe and inspiring messaging sensitive to travel in a (transitioning) pandemic era. • FILM HB Data: 45 Film inquiries and 63 permitted shoots. 2022/2023 • Launched #BeHere 3.0 Marketing Campaign encouraging visitation and overnight stays in an open, outdoor, safer environment. This iteration of the campaign targeted Huntington Beach lifestyle pillars of outdoors,wellness, family, active sports, dining,and shopping. Campaign garnered 22.7M impressions 46.7K clicks, outpacing performance by 47%. The booking component of the campaign generated 3,360 room nights. • In response to Board direction to amplify channels to help boost referral business to hotels for the remainder of the fiscal year,VHB extended its #BeHere Soft Season Campaign,a highly targeted media buy investment developed to generate leisure bookings,increase web traffic to SurfCityUSA.com, and increase awareness of the destination,hotel, and resort properties. HBTBID Management District Plan 9 VISIT March 27,2024 HUNTINGTOH 847 BEACH SURF CITY USA' The extended campaign generated an additional 8.24M total impressions and 11,950 clicks to VHB's campaign landing page.The campaign surpassed performance projections by 53% and is tied to 2,917 unique hotel overnight visitors who saw VHB paid media ads up to 90 days before their stay. • Launched redesigned website. Website traffic increased 7%YoY with 1.3M sessions and 2.1M Pageviews annually.Won four awards: Hermes Creative Award - Gold;DotComm- Gold Winner; Internet Advertising Competition -Best of Industry Winner; 29thAnnual Communicator Awards -Award of Excellence. • Updated all of VHB's SEM- and SEO-related platforms that track search engine and website performance to be compliant with Google Analytics Version 4 (GA4) platform update before the switch went live on July 1, 2023. • Produced quarterly destination performance reports for the HB Collection hotel properties, customized with destination-level and hotel-level data per property. • Promoted the inaugural A Great Day in the Stoke, a surfing competition which is open to all, but also happens to be the largest gathering of black surfers. The campaign secured 48 pieces of online media stories, 4 broadcast interviews, and 3 print articles with a collective reach of 29.3M. • The 2022 ISA World Sung Games Marketing Campaign promoted Huntington Beach to over 2.1M LiveStream viewership from over 50 countries. The campaign,which received exposure in the Opening Ceremony, the competition broadcast, and Closing Ceremony and Parade,garnered 2M social media impressions, 132K daily interactions on ISA event page, and media coverage reaching 22K contacts. • The 2022 WSL Vans US Open of Sung Marketing Campaign spotlighted Huntington Beach to over 743M homes in 6 regions around the globe. The campaign garnered a collective 1.3K social media posts, 38M social media impressions, 2M VOD views, 2.9M email impressions, 2.8M live video views, 195K page views to landing page, and 1,000 pieces of media coverage media. VHB also hosted LA28 organizing committee members allowing them to see first- hand HB's capabilities as a top-tier sporting event location. • Promoted Huntington Beach during the 2022 PacificAirshow as a Chalet partner, hosting top meeting and event planners to showcase the destination as a unique place to meet.Along with Destination Analysts,produced 2022 PacifcAirshow Economic Impact Report that showed it generated a$70M total direct economic impact for Huntington Beach. • Secured the 2023 ISA World Para Sung Championships to occur in November 2023 (FY 23- 24). • Updated VHB Brand Style Guide. • Produced Huntington Beach Tourism Summit hearing from experts in the tourism, action sports, and entertainment industries, as well as economic forecasts for Huntington Beach and updates on regional infrastructure enhancements. • Designed new VHB trade show booth which debuted at IMEX 2022, a major trade show. • Produced the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Created a Major Events in HB Presentation deck highlighting all the benefits of hosting world- class sporting (and other) events in Huntington Beach. • Achieved goal of having 1,000 TikTok followers by fiscal year's end, unlocking additional backend features. • Launched KeyData Reporting Dashboard which tracks Short Term Vacation Rentals performance in the destination. • Launched Symphony Dashboard which pulls in all sources of economic, demographic, marketing, digital performance numbers into a central location for streamlined and customizable reporting. HBTBID Management District Plan VISIT 10 March 27,2024 Hp0i100TON 848 BEACH SURF CITY USA° • Hosted 16 journalists and 7 influencers. Garnered national and local coverage including Forbes Magazine, Viator, Inside Hook, Daily Pilot, Travel Awaits, USA Today, and Orange County Register. • Hosted the California Cup Golf Invitational 2023. The 4-day long event brought together 75 international travel trade buyers and California suppliers for HB experiences, business development, and industry networking. Each year, CA Cup Invitational gives back to a local charity through funds raised from international and CA auction prizes. • VHB was the only U.S. destination invited to participate in Air Canada,the Air Canada Foundation, and CAN (Canucks Autism Network) community's inaugural Autism Aviation Day,VHB welcomed over 50 individuals including children on the autism spectrum. The event provided an opportunity for youth on the autism spectrum (and their families) to rehearse the entire pre-flight process; the goal is to increase autism accessibility and encourage future travel. • Conducted 733 total travel agents across all markets trained on selling Huntington Beach as a destination; 137 one-on-one trade show appointments with key international travel agents and tour operators; and 15 international familiarization tours. • Along with Destination Analysts, produced 2022 Pacific Airshow Economic Impact Report. • FILM HB Data: 126 Film inquiries and 111 permitted shoots. Sales FY 2019 to present: • Conference/Meeting leads processed by VHB: 2,900 • Definite contracted/booked room nights by VHB: 176,055 • Economic Impact of Groups to Huntington Beach: $121 million Highlighted Group Sales Programs • Success of HB Collection Beachwides —Annual Future Proof Wealth Festival,inaugural year 2022, taking place every September with over 3,000 room nights to the destination per year within the four HB Collection Resorts and a beachfront event activation. • Participation in Intermediary Preferred programs including HelmsBriscoe, . ConferenceDirect,Prestige, and HPN Global which contributed to a substantial increase in lead development YOY. • Partnership with Orange County Sport Commission has generated new business opportunities for both our Select Service and Full-Service Hotel/Resort partners. Visitor& Partner Services Visitor Interactions duly 1,2019—June 30,2023) • Visitor Info Kiosk: 51,644 • VHB Office: 13,173 • Events: 10,017 • Mobile Bicycle Program: 391 Event Information Booths • 55 events attended • New branded equipment purchased in 2022 (10x10 pop-up canopy, cafe umbrella, flags, and tablecloths) HBTBID Management District Plan a 11 March 27,2024 VISIT {' HUNTINGTON 849 BEACH SURF CITY USA* Local Pop-up Information Booths • Launched Summer of 2021 • Pacific City o Operated weekends only from 5/29/21-8/29/21 o 282 interactions • Bella Terra o Operated weekends only from 7/10/21-9/5/21 O 215 interactions Publication Distribution • Design and produce 18 different publications,including the official Huntington Beach Visitor Guide,Visitor Maps,Downtown HB and Sunset Beach Tear Off Maps,Downtown maps in foreign languages,Nightlife Guides,Activity Guides,Historical Walking Tours, and more. • 7,500+ visitor guides handed out in person • 100,000+ visitor guides distributed to local businesses • 150,000+ visitor guides &rack brochures distributed to locations across the Western United States Partner Services • Partner Education Series -Launched in 2021; to date the series has held 23 events (15 virtual, 8 in-person) with 466 attendees. • Partner Outreach Program-Launched 2021;Partner Services staff have connected with HB businesses 946 times. Visitor Services staff have referred visitors to HB businesses 6,921 times. • CEO/Partner Newsletters - Over 50 e-newsletters have been sent since March 2020,with 1,166 newsletter contacts,a 41% average open rate (20%industry standard), and a 2.82% average click rate (2.25%industry standard). Visitor Experiences • Meet in HB Pass -Launched in 2022 for Group Meetings, this program provided deals at 13 local businesses for meeting attendees • VHB Guided Walking Tours -Launched in 2022,the Historical Downtown HB Walking Tour and the Surf History Walking Tour are led by VHB staff twice a month. Special tours are led by Chris Epting a few times a year. To date, 222 tickets have been sold for the VHB led walking tours and the Chris Epting tours have sold out. • Digital Surf City USA Barrel Trail-Launched in Spring 2022 as a free digital pass with a phone app, this trail provided deals at 15 breweries and distilleries across HB and garnered 566 sign-ups. • Surf City USA Barrel Trail Passport-Launched in March 2023 as a physical booklet,the new passport is sold online and in-store for$5. To date,254 passports have been sold and 2 people have completed the full trail and redeemed the grand prize, a gift card to an HB brewery/distillery of their choice. • Surf City USA Scavenger Hunt-Launched 2023, the Scavenger Hunt is a printed map targeted to families with young children. Participants redeem their completed Scavenger Hunt for a free coloring book at the Visitor Information Kiosk. In the first two months of the program, 68 participants picked up their free coloring book. HBTBID Management District Plan. VISIT 12 March 27,2024 HUHTINGTON 850 BEACH SURF CITY USA* • Surf City USA Snapshots -Launched in May 2023,this digital trail leads visitors and residents to the best Instagrammable photo spots in HB. • Pedego Pilot Program—Pilot program launched summer of 2022,this mobile visitor information bicycle provided visitor info along the beach path and had 391 interactions over 3 months. • Major Visitor Information Kiosk Capital Improvements over the last several years. Other Visitor Enhancement Programs • Team Surf City USA Volunteer Program • Launched June 2023 • 8 volunteers enrolled in the program • Wayfinding Program • Completed 90% of installation and continue to conduct ongoing maintenance for installed HB branded Wayfinding Program signage throughout Huntington Beach. The$1 million-plus comprehensive wayfinding system was created in partnership with the City of Huntington Beach after receiving community input. • The program remains ongoing with installation of remaining signs,including gateway signs, to take place over the coming years. • Installed and maintain digital information kiosk at the HB Pier as part of the Wayfinding Program. • Summer Beach Restrooms -Provide annual financial support for temporary summer beach restrooms and additional cleaning at the HB Pier. In 2023,VHB covered the entire cost for the program due to City budget cuts. • Downtown Transportation-Provided financial and marketing support for the launch of the Circuit electric car program in Downtown HB. Retail Program • In 2020,VHB launched a Surf City USA®retail program to help visitors promote the brand when they return home. Currently, the store produces 26 items for sale in-store, online, and at pop-up booths,with gross sales of$33k since inception. Sales increased 88%in the last year. • Pandemic recovery initiatives • Open For Business Page and Map launched in March 2020 to help residents and visitors find needed resources. • OneHB Clean&Safe Pledge Digital Trail launched in October 2020 and garnered 787 pledges from HB businesses. Advocacy& Community Support • Provide resources and knowledge to support public policy initiatives that advance brand awareness and reputation of Huntington Beach • Provide annual funding support for the Downtown Nighttime Ambassador Program,which is now operated by the Downtown Business Improvement District. • VHB supports local events with community sponsorships for programs including the Waymakers Pier Snowflakes, 4th of July Parade,Blessing of the Waves,HB Surfing Walk of Fame, Cherry Blossom Festival, Great Day in the Stoke, Surf City Splash,Bolsa Chica Wetlands Conservancy, and Amigos de Bolsa Chica. HBTBID Management District Plan VISIT 13 March 27,2024 HUNTIHGi®N 851 BEACH SURF CITY USA • VHB staff volunteer on local committees and Boards of Directors,including the HB Chamber of Commerce,Downtown Business Improvement District,HB Surfing Walk of Fame, and the Alzheimer's Association Walk to End Alzheimer's. • VHB staff speak annually at local schools and non-profit organizations providing information about why tourism is a viable job industry and a strong economic support for the community. • Provide annual funding support for HB International Surfing Museum • VHB staff volunteer for local events and projects, such as the City of Huntington Beach's Community Service Day, the Waymaker's Youth Shelter Annual Gala, the Wetlands & Wildlife Care Center's Baby Shower, and Project Self Sufficiency's Thanksgiving and Holiday gift giving program. Administration Awards • Named one of OC Business Journal's Best Places to Work in Orange County in 2023. • Earned FiredUp! Culture's 2022 Culture Achievement Award,which was awarded to nine organizations nationally across multiple industries who scored the highest on its Team Culture Index Survey. • Earned a'With Distinction" status with VHB's 2021 DMAP (Destination Management Accreditation Program) accreditation renewal through Destinations International. The'With Distinction" status has only been awarded to less than 15 organizations globally. Operations • Created new 2023-2026 Strategic Plan, to follow the 2020-2023 Strategic Plan. • In 2019,relocated VHB office to ground level on 5th Street near PCH to provide better access for visitors. Created Welcome Center and Surf City USA®retail store in new office lobby. • Continue to perform annual unqualified audits. HBTBID Management District Plan VISIT 14 March 27,2024 HUNTINGTON 852 BEACH SURF CITY USA' V. BOUNDARY The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Huntington Beach. Lodging business means: any structure,or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel,inn,tourist home or house,motel, studio hotel,bachelor hotel,lodging house,rooming house, at a fixed location, or other similar structure or portion thereof. The boundary is shown in the map below.A complete listing of lodging businesses within the renewed HBTBID can be found in Appendix 2. Gx3m snm n ...... _ f Vr" _- 1\ Hunton Famu:u�'a.ir�' \S„,,,,\ BeacTi \ _Aj-- ____1_ i_ — 1 i , 1 _,..., i Ch j I.f1S1XNNNsd ': Bea 44101.144 HBTBID Management District Plan VISIT 15 March 27, 2024 HUNTINGTON BEACH 853 SURF CITY USA VI. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HBTBID funds are marketing, sales and tourism enhancement programs available only to assessed lodging businesses. A service plan budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual budget will be developed and approved by VHB. The total initial full year budget was anticipated to be $5,000,000. Fiscal year 2019 covered the five (5) month period from February to June 2019, resulting in a lower anticipated budget for the first five (5) months of HBTBID operation. The table below illustrates the initial annual budget allocations reflecting the modified assessment rate. Beginning July 1,2024,or as soon as possible thereafter,due to the modified assessment rate,the total initial full year assessment budget is anticipated to be approximately$10,000,000. 2024 VHB PROPOSED MODIFIED BUDGET:Annual Assessment Budget$10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2%increase in TBID assessments,VHB forecasts its budget to be approximately$10M.This amount is reflected below. All proposed programs funded by TBID assessments must be approved by the VHB Board during the annual budget process and must adhere to state laws governing these assessment expenditures. Contingency/Reserve City Admin Fee 5500,000(5%) $100,000(1%) Administration 51,900,000(19%) Sales&Marketing $6,500,000(65%) Tourism Enhancement Programs $1,000,000(10%) • Includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE)Programs from 2019-2024 MDP Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the VHB Board shall have the authority to re- allocate up to fifteen percent (15%) of the budget allocation within the budgeted categories per year and submitted through the annual report. For example, if there is increased market competition, $150,000 from the Tourism Enhancement Programs budget may be reallocated to the Sales & Marketing budget,staying within the authorized 15%reallocation limit. In the event of unforeseeable emergencies or unavoidable catastrophes that interrupt the expected course of business,by agreement of both the VHB Board and the City Manager (or his/her designee),the City and VHB shall have the authority to adjust budget categories by more than fifteen percent (15%) of the budget allocation within the budgeted categories.For example,in the event of a pandemic resulting in an unprecedented decline in tourism, $3,000,000 from the Sales &Marketing budget may be reallocated to the Tourism Enhancement Programs budget to address unforeseen circumstances, exceeding 15D/0 as allowed under the exceptional circumstances. At least annually, VHB will meet with the City Manager or designated staff to review accomplishments and funding priorities for the following year. A description of the proposed improvements and activities for the initial year of operation is below. The HBTBID Management District Plan A VISIT 16 March 27,2024 H U N T I N G T O N BEACH 854 SURF CITY L'SA same activities are proposed for subsequent years. In the event of a legal challenge against the HBTBID, any and all assessment funds may be used for the posts of defending the HBTBID. Each budget category includes all costs related to providing that service,in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the Sales &Marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing programs. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories,as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the VHB on an as-needed basis. Sales & Marketing The sales and marketing program will promote assessed lodging businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses,and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: • Increased advertising and promotional programs in print, online, social media, and television targeted at potential visitors to drive overnight visitation and room sales; • Website enhancements and updates; • Strategic advertising and marketing agency support; • Contract with third party marketing and sales partners; • Public relations, sales blitzes,missions, and calls; • Familiarization tours targeting key decision makers; • Preparation and production of collateral promotional materials such as visitor guides, brochures, flyers, and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists, leisure visitors, and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors; and • Cooperation with local agencies and film commission programs that attract overnight visitors. Tourism Enhancement Programs The Tourism Enhancement Program(1'LP)will enhance the brand image and visitor experience while in destination, providing a benefit for guests of assessed lodging businesses by encouraging an increased length of stay and appealing to target niche markets based on demographic and current travel data. An incidental benefit also improves the resident experience throughout the year. The TEP will provide funding for programs and initiatives in destination in accordance with VHB's current strategic plan. VHB will work with the City Manager and designated city staff to identify and prioritize any key public-private programs and initiatives, as detailed in the Management Agreement with the City and VHB,to be funded and implemented following approval of the VHB budget by the VHB Board of Directors and approval of the City budget by City Council.The focus for the TEP will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach. TEP may include the following programs which are designed to drive increased overnight visitation and room sales to assessed lodging businesses: HBTBID Management District Plan a" VISIT 17 March 27,2024 ` ' HUNTINGTON 855 BEACH SURF CITY USA` • Support of a long-term ambassador program with trained staff that supplement the current level of police presence to improve the overall destination experience and encourage overnight visitation; • Welcome center, event-based visitor information booths, and visitor information kiosk improvements including current technology-driven visitor information enhancements; • Support of Signature Events that provide a proven positive economic impact and extend Surf City USA's brand reach, including programs and events that lead up to the LA28 Olympic games; • Support of other community events and programs that uphold the authenticity of the Surf City USA experience and create a greater sense of community for residents; • Team Surf City USA Volunteer Program to help community members become experienced event volunteers; • Brand-centric visitor services training program for both public and private sector staff; • Support of a trolley or transportation program connecting hotels to downtown Huntington Beach,The Pier, or other attractions; and • Development of activities and/or products designed to keep visitors in the destination for an increased duration of time,including Historical Walking Tours, Scavenger Hunt, Barrel Trail, Surf City USA Snapshots, and other activities. Additional future TEP programs may include destination product development programs to provide support for public-private capital improvement projects in partnership with the City of Huntington Beach. If such a project is proposed,VHB will work collaboratively with the City Manager and Public Works. Such projects,which are all aimed to attract overnight visitors, may include: • Additional wayfinding signage system enhancements including gateways and parking signage; • Pedestrian improvements linking the beachfront hotels,Pacific City,Main Street, and 5th Street; • Art and cultural improvements, such as a public art trail; • Gateway enhancements including on Pacific Coast Highway, to attract overnight visitors; • Bicycle and surfboard storage improvements; • Enhancements to wetlands experiences which attract overnight visitors, such as the Bolsa Chica Ecological Reserve and the Huntington Beach Wetlands (between Newland Street and the Santa Ana River) that expose visitors to the value of the vital ecosystems; • Partnership with the City on mutually agreed upon projects that promote overnight visitor stays to Huntington Beach. Examples may include:Improvements to pier plaza,existing parks and sports facilities, Huntington Beach International Surfing Museum, the Surfing Walk of Fame, and creation of a new live music venue, and/or entertainment complex; • Destination product development research, master planning, and design of approved destination product development projects and; • Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year-round (e.g., improvements to beach restrooms, parking structures/lots,lighting, and summer beach restroom porter cleaning). Administration The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. HBTBID Management District Plan VISIT 18 March 27,2024 HUNTINGTON 856 BEACH SURF CITY USA° Contingency/Reserve The budget includes a contingency line item to account for uncollected assessments,if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration,or renewal costs at the discretion of the VHB Board. Policies relating to contributions to the reserve fund,the target amount of the reserve fund,and expenditure of monies from the reserve fund shall be set by the VHB Board. City Administration Fee The City of Huntington Beach shall retain a fee equal to one percent(1%) of the amount of assessment collected to cover its costs of collection and administration. B. Annual Budget The total nine (9) year and five (5) month improvement and service plan budget was projected at approximately $5,000,000 annually, or $47,083,333 cumulatively through 2028. Beginning on July 1, 2024, or as soon as possible thereafter, due to the modified assessment rate, the total HBTBID assessment budget for each subsequent full year of operation is projected to be approximately $10,000,000, or approximately$71,901,015 cumulatively through 2028. This amount may fluctuate as sales and revenue increase or decrease at assessed lodging businesses, but is not expected to change significantly over the term. C. California Constitutional Compliance The HBTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term `assessments' to levies on real property.1 Rather, the HB'1BID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the HBTBID, a "specific benefit" and a "specific government service." Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, "a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."2 The activities and improvements in this Plan are designed to provide targeted benefits directly to assessed lodging businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific lodging businesses within the HBTBID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HBTBID, and are narrowly tailored. HBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in HBTBID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1) HBTBID Management District Plan VISIT 19 March 27,2024 HOHTINST0N 857 BEACH .SURF CITY USA° The assessment imposed by this HBTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the HBTBID assessment,with tourism enhancement programs promoting lodging businesses paying the HBTBID assessment. The tourism enhancement programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the tourism enhancement programs that specifically benefit the assessed lodging businesses, the administration and contingency/reserve programs also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the HBTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that,"A specific benefit is not excluded from classification as a`specific benefit'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor."3 2. Specific Government Service The assessment may also be utilized to provide, "a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product."4 The legislature has recognized that marketing and promotions services like those to be provided by the HBTBID are government services within the meaning of Proposition 265. Further, the legislature has determined that "a specific government service is not excluded from classification as a `specific government service' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor."6 3. Reasonable Cost HBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VHB, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from HBTBID-funded activities, be featured in lodging-specific advertising campaigns, and benefit from 'other HBTBID-funded programs. Non-assessed lodging businesses will not receive these, nor any other,HBTBID-funded services and benefits. The HBTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-HBTBID funds. HBTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. 3 Government Code § 53758(a) 4 Cal. Const. art XIII C § 1(e)(2) 5 Government Code § 53758(b) 6 Government Code § 53758(b) HBTBID Management District Plan VISIT 20 March 27,2024 0,-; , HUNTINGTON 858 BEACH SURF CITY USA D. Assessment The initial annual assessment rate was four percent (4%) of gross short-term room rental revenue. This Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1, 2024, or as soon as possible thereafter, and shall remain in effect until the end of the HBTBID's term. Based on the benefit received,assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. The term "gross room rental revenue" as used herein means: the consideration charged, whether or not received,for the occupancy of space in a lodging business valued in money,whether to be received in money,goods, labor or otherwise,including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected,including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion,pass the assessment on to transients. The amount of assessment,if passed on to each transient,shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the HBTBID assessment is identified separately it shall be disclosed as the "HBTBID Assessment." As an alternative, the disclosure may include the amount of the HBTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act,Government Code§13995 et seq.and shall be disclosed as the"Tourism Assessment." The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest The HBTBID shall reimburse the City of Huntington Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent HBTBID assessment are sought to be recovered in the same collection action by the City, the HBTBID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency: Any lodging business that fails to meet any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed. 3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subparagraphs 1 and 2 of this subsection E. 4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent(0.5%) per month, HBTBID Management District Plan ,e VISIT 21 March 27,2024 HUNTINGTON 859 BEACH SURF CITY USA" or fraction thereof, on the amount of the assessment, exclusive of penalties, form the date on which the remittance first became delinquent until paid. 5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid. 6. City not Responsible for Uncollected Amounts: The City shall not be responsible for uncollected amounts. F. Time and Manner for Collecting Assessments The HBTBID assessment will be implemented beginning February 1, 2019 and will continue for nine (9) years and five (5) months through June 30,2028. The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to VHB. VII. GOVERNANCE A. Owners' Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651,to identify the body that shall implement the proposed program, which shall be the Owners' Association of the HBTBID as defined in Streets and Highways Code HBTBID Management District Plan '' VISIT 22 March 27,2024 H HUNTINGTOH 860 BEACH SURF CITY USA" §36612. The City Council has determined that Visit Huntington Beach will continue to serve as the Owners'Association for the HBTBID, upon execution of a renewed contract between the City and VHB. B. Brown Act and California Public Records Act Compliance An Owners'Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.The Owners' Association,is,however,subject to government regulations relating to transparency,namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed'to promote public accountability. The Owners'Association acts as a legislative body under the Ralph M. Brown Act (Government Code 554950 et seq.). Thus, meetings of the VHB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners'Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly,the Owners'Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The VHB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code 536650 (see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. HBTBID Management District Plan VISIT 23 March 27,2024 HUNTINGTON 861 • tf BEACH SURF CITY USA" APPENDIX 1- LAW ***THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT*** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18.PARKING PART 7.PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1.General Provisions ARTICLE 1.Declarations 36600.Citation of part This part shall be known and may be cited as the"Property and Business Improvement District Law of 1994." 36601.Legislative findings and declarations;Legislative guidance The Legislature finds and declares all of the following: (a)Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities,services,and activities in the business districts. (b)It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs,attract new businesses,and prevent the erosion of the business districts. (c)It is of particular local benefit to allow business districts to fund business related improvements, maintenance,and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d)Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city,even if property, businesses,or persons not assessed receive incidental or collateral effects that benefit them. (e)Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1)Crime reduction.A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2)Job creation. (3)Business attraction. (4)Business retention. (5)Economic growth. (6)New investments. (f)With the dissolution of redevelopment agencies throughout the state,property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities,and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts.Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h)The act amending this section is intended to provide the Legislature's guidance with regard to this act,its interaction with the provisions of Article XIII D of the Constitution,and the determination of special benefits in property-based districts. (1)The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts,contributing to blight and other underutilization of property. (2)Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits,the HBTBID Management District Plan VISIT 24 March 27,2024 ti HUNTINGTON BEACH 862 SURF CITY USA' incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3)It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602.Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603.Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation,Limitation and Majority Protest Act of 1931 (Division 4(commencing with Section 2800)). 36603.5.Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604.Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect.Assessments levied under this part are not special taxes. ARTICLE 2.Definitions 36606."Activities" "Activities"means,but is not limited to,all of the following that benefit businesses or real property in the district: (a)Promotion of public events. (b)Furnishing of music in any public place. (c)Promotion of tourism within the district. (d)Marketing and economic development,including retail retention and recruitment. (e)Providing security,sanitation,graffiti removal,street and sidewalk cleaning,and other municipal services supplemental to those normally provided by the municipality. (f)Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5."Assessment" "Assessment"means a levy for the purpose of acquiring, constructing,installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607."Business" HBTBID Management District Plan VISIT 25 March 27,2024 it"{ HUNTINGTON 863 BEACH SURF CITY USA" "Business"means all types of businesses and includes financial institutions and professions. 36608."City" "City"means a city,county,city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code,the public member agencies of which includes only cities,counties,or a city and county,or the State of California. 36609."City council" "City council"means the city council of a city or the board of supervisors of a county,or the agency,commission,or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4."Clerk" "Clerk"means the clerk of the legislative body. 36609.5."General benefit" "General benefit"means,for purposes of a property-based district,any benefit that is not a"special benefit"as defined in Section 36615.5. 36610."Improvement" "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including,but not limited to,the following: (a)Parking facilities. (b)Benches,booths,kiosks,display cases,pedestrian shelters and signs. (c)Trash receptacles and public restrooms. (d)Lighting and heating facilities. (e)Decorations. (f)Parks. (g)Fountains. (h)Planting areas. (i)Closing,opening,widening,or narrowing of existing streets. (j)Facilities or equipment,or both,to enhance security of persons and property within the district. (k)Ramps,sidewalks,plazas,and pedestrian malls. (1)Rehabilitation or removal of existing structures. 36611."Management district plan"; "Plan" "Management district plan"or"plan"means a proposal as defined in Section 36622. 36612."Owners' association" "Owners' association"means a private nonprofit entity that is under contract with a city to administer or implement improvements,maintenance,and activities specified in the management district plan.An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity.An owners' association is a private entity and may not be considered a public entity for any purpose,nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9(commencing with Section 54950)of Part 1 of Division 2 of Title 5 of the Government Code),at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act(Chapter 3.5 (commencing with Section 6250)of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. "Property" "Property"means real property situated within a district. HBTBID Management District Plan VISIT 26 March 27,2024 t HUNTINGTON 864 BEACH SURF CITY USA` 36614.5."Property and business improvement district"; "District" "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part. 36614.6."Property-based assessment" "Property-based assessment"means any assessment made pursuant to this part upon real property. 36614.7."Property-based district" "Property-based district"means any district in which a city levies a property-based assessment. 36615."Property owner"; "Business owner"; "Owner" "Property owner"means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council."Business owner"means any person recognized by the city as the owner of the business."Owner"means either a business owner or a property owner.The city council has no obligation to obtain other information as to the ownership of land or businesses,and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner,the signature of the authorized agent of the business owner shall be sufficient. 36615.5."Special benefit" "Special benefit" means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements,maintenance,or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. 36616."Tenant" "Tenant"means an occupant pursuant to a lease of commercial space or a dwelling unit,other than an owner. ARTICLE 3.Prior Law 36617.Alternate method of financing certain improvements and activities;Effect on other provisions This part provides an alternative method of fmancing certain improvements and activities.The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)of this division)is valid and effective and is unaffected by this part. CHAPTER 2.Establishment 36620.Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5.Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city.A city may not form a district within the unincorporated territory of a county without the consent of the board HBTBID Management District Plan . y, VISIT 27 March 27,2024 i-lir HUNTIHGT06d 865 BEACH SURF CITY USA. of supervisors of that county.A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621.Initiation of proceedings;Petition of property or business owners in proposed district (a)Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b)The petition of property or business owners required under subdivision(a) shall include a summary of the management district plan.That summary shall include all of the following: (1)A map showing the boundaries of the district. (2)Information specifying where the complete management district plan can be obtained. (3)Information specifying that the complete management district plan shall be furnished upon request. (c)The resolution of intention described in subdivision(a)shall contain all of the following: (1)A brief description of the proposed improvements,maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities,and the location and extent of the proposed district. (2)A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments,which shall be consistent with the requirements of Section 36623. 36622.Contents of management district plan The management district plan shall include,but is not limited to,all of the following: (a)If the assessment will be levied on property,a map of the district in sufficient detail to locate each parcel of property and,if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses,a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses,a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b)The name of the proposed district. (c)A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part.This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including,but not limited to,the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d)The improvements,maintenance,and activities proposed for each year of operation of the district and the maximum cost thereof.If the improvements,maintenance,and activities proposed for each year of operation are the same, a description of the first year's proposed improvements, maintenance, and activities and a statement that the same improvements,maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. HBTBID Management District Plan 28 .�e VISIT March 27,2024 HUNTINGTON 866 BEACH SURF CITY USA* (e)The total annual amount proposed to be expended for improvements,maintenance,or activities,and debt service in each year of operation of the district. If the assessment is levied on businesses,this amount may be estimated based upon the assessment rate.If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f)The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g)The time and manner of collecting the assessments. (h)The specific number of years in which assessments will be levied.In a new district,the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations,a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds.The management district plan may set forth specific increases in assessments for each year of operation of the district. (i)The proposed time for implementation and completion of the management district plan. (j)Any proposed rules and regulations to be applicable to the district. (k) (1)A list of the properties or businesses to be assessed,including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business,to defray the cost thereof. (2)In a property-based district,the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement,the maintenance and operation expenses of a public improvement,or the cost of the activities.An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits,if any,from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency,the State of California,or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.The value of any incidental,secondary,or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (1)In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m)In a property-based district,the total amount of general benefits,if any. (n)In a property-based district, a detailed engineer's report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o)Any other item or matter required to be incorporated therein by the city council. 36623.Procedure to levy assessment (a)If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b)If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed.A protest may be made orally or in writing by any interested person.Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest.A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and,if a person subscribing is not shown on the official records of the city as the owner of the business,the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay HBTBID Management District Plan 29 March 27,2024if VISIT HUNTIN6TOH 867 BEACH SURF CITY USA° • 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c)If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment,the notice and protest and hearing procedure for the property assessment shall comply with subdivision(a),and the notice and protest and hearing procedure for the business assessment shall comply with subdivision(b).If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624.Changes to proposed assessments At the conclusion of the public hearing to establish the district,the city council may adopt,revise,change,reduce,or modify the proposed assessment or the type or types of improvements,maintenance,and activities to be funded with the revenues from the assessments.Proposed assessments may only be revised by reducing any or all of them.At the public hearing,the city council may only make changes in,to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance,and activities.Any modifications,revisions,reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625.Resolution of formation (a)If the city council, following the public hearing, decides to establish a proposed property and business improvement district,the city council shall adopt a resolution of formation that shall include,but is not limited to,all of the following: (1)A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses,or both within the district,a statement on whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities and the location and extent of the proposed district. (2)The number,date of adoption,and title of the resolution of intention. (3)The time and place where the public hearing was held concerning the establishment of the district. (4)A determination regarding any protests received.The city shall not establish the district or levy assessments if a majority protest was received. (5)A statement that the properties,businesses,or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6)A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention,as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided,but shall be limited to marketing or signage pointing to the district. (7)A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements,maintenance,and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8)In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b)The adoption of the resolution of formation and,if required,recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. HBTBID Management District Plan W: VISIT 30 March 27,2024 H y4a° HOOTIOGTON 868 BEACH SURF CITY USA' 36626.Resolution establishing district If the city council,following the public hearing,desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment,the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627.Notice and assessment diagram Following adoption of the resolution establishing district assessments,on properties pursuant to Section 36625 or Section 36626,the clerk shall record a notice and an assessment diagram pursuant to Section 3114.No other provision of Division 4.5 (commencing with Section 3100)applies to an assessment district created pursuant to this part. 36628.Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone.If the assessment is to be levied on businesses,the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business,or on each category of business within each zone. 36628.5.Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners,or a combination of the two,pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph(2)of subdivision(k)of Section 36622. 36629.Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment,modification,or disestablishment of a property and business improvement district apply to the establishment,modification, or disestablishment of benefit zones or categories of business.The city council shall,to establish,modify,or disestablish a benefit zone or category of business,follow the procedure to establish,modify,or disestablish a property and business improvement district. 36630.Expiration of district;Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision(h)of Section 36622,a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3.Assessments 36631.Time and manner of collection of assessments;Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment.Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax,and may provide for the same lien priority and penalties for delinquent payment.All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632.Assessments to be based on estimated benefit; Classification of real property and businesses;Exclusion of residential and agricultural property (a)The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may HBTBID Management District Plan VISIT 31 March 27,2024 0� .HUNTINGTON • 869 BEACH SURF CITY USA" classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b)Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c)Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments,and shall not be subject to any assessment pursuant to this part. 36633.Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626.Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634.Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635.Request to modify management district plan The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636.Modification of plan by resolution after public hearing;Adoption of resolution of intention (a)Upon the written request of the owners' association,the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications.If the modification includes the levy of a new or increased assessment,the city council shall comply with Section 36623.Notice of all other public hearings pursuant to this section shall comply with both of the following: (1)The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2)A complete copy of the resolution of intention shall be mailed by first class mail,at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b)The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90'days after the adoption of the resolution of intention. 36637.Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100),in a manner consistent with the provisions of Section 36627. CHAPTER 3.5.Financing 36640.Bonds authorized;Procedure;Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds,under the Improvement Bond Act of 1915(Division 10(commencing with Section 8500)) HBTBID Management District Plan VISIT 32 March 27,2024to"= HUGTIPIGTON ago BEACH SURF CITY USA' or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b)The resolution adopted pursuant to subdivision(a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements,specify the number of annual installments and the fiscal years during which they are to be collected.The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c)Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4.Governance 36650.Report by owners' association;Approval or modification by city council (a)The owners' association shall cause to be prepared a report for each fiscal year,except the first year,for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners' association's first report shall be due after the first year of operation of the district.The report may propose changes,including,but not limited to,the boundaries of the property and business improvement district or any benefit zones within the district,the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business,if a classification is used. (b)The report shall be filed with the clerk and shall refer to the property and business improvement district by name,specify the fiscal year to which the report applies,and,with respect to that fiscal year,shall contain all of the following information: (1)Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2)The improvements,maintenance,and activities to be provided for that fiscal year. (3)An estimate of the cost of providing the improvements,maintenance,and activities for that fiscal year. (4)The method and basis of levying the assessment in sufficient detail to allow each real property or business owner,as appropriate,to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5)The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6)The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c)The city council may approve the report as filed by the owners' association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651.Designation of owners' association to provide improvements,maintenance,and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements,maintenance,and activities described in the management district plan.If the management district plan designates an owners'association,the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5.Renewal 36660.Renewal of district;Transfer or refund of remaining revenues;District term limit HBTBID Management District Plan VISIT 33 March 27,2024 ° HUUNTINGTON 871 BEACH SURF CITY USA* • (a)Any district previously established whose term has expired,or will expire,may be renewed by following the procedures for establishment as provided in this chapter. (b)Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues,shall be transferred to the renewed district.If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district,the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c)Upon renewal, a district shall have a term not to exceed 10 years, or,if the district is authorized to issue bonds,until the maximum maturity of those bonds.There is no requirement that the boundaries,assessments, improvements,or activities of a renewed district be the same as the original or prior district. CHAPTER 6.Disestablishment 36670.Circumstances permitting disestablishment of district;Procedure (a)Any district established or extended pursuant to the provisions of this part,where there is no indebtedness, outstanding and unpaid,incurred to accomplish any of the purposes of the district,may be disestablished by resolution by the city council in either of the following circumstances: (1)If the city council finds there has been misappropriation of funds,malfeasance,or a violation of law in connection with the management of the district,it shall notice a hearing on disestablishment. (2)During the operation of the district,there shall be a 30-day period each year in which assessees may request disestablishment of the district.The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district.Each successive year of operation of the district shall have such a 30-day period.Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied,the city council shall pass a resolution of intention to disestablish the district.The city council shall notice a hearing on disestablishment. (b)The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section.The resolution shall state the reason for the disestablishment,shall state the time and place of the public hearing,and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund;Use of outstanding revenue collected after disestablishment of district (a)Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid,derived from the levy of assessments,or derived from the sale of assets acquired with the revenues,or from bond reserve or construction funds,shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b)If the disestablishment occurs before an assessment is levied for the fiscal year,the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. HBTBID Management District Plan VISIT 34 , March 27,2024 °$ � ' HUNTINGTON 872 BEACH SURF CITY USA" APPENDIX 2—ASSESSED BUSINESSES* Business.Name/Identification Address,`City,State,ZIP Number . Hyatt Regency Huntington Beach Resort 21500 Pacific Coast Hwy, Huntington Beach, CA 92648 &Spa The Waterfront Beach Resort, a Hilton 21100 Pacific Coast Hwy, Huntington Beach, CA 92648 Hotel Pasea Hotel &Spa 21080 Pacific Coast Hwy, Huntington Beach, CA 92648 Kimpton Shorebreak Resort 500 Pacific Coast Hwy, Huntington Beach, CA 92648 The Hotel Huntington Beach 7667 Center Ave, Huntington Beach, CA 92647 SpringHill Suites by Marriott 7872 Edinger Ave, Huntington Beach, CA 92647 Comfort Inn &Suites Huntington Beach 16301 Beach Blvd, Huntington Beach, CA 92647 Extended Stay America 5050 Skylab Rd, Huntington Beach, CA 92647 Huntington Suites 7971 Yorktown Ave, Huntington Beach, CA 92648 Best Western Surf City 19360 Beach Blvd, Huntington Beach, CA 92648 • Huntington Beach Inn 800 Pacific Coast Hwy, Huntington Beach, CA 92648 Travelodge Ocean Front 17205 Pacific Coast Hwy,Sunset Beach, CA 90742 Beach Inn Motel 18112 Beach Blvd, Huntington Beach, CA 92648 Starlight Inn 18382 Beach Blvd, Huntington Beach, CA 92648 777 Motor Inn 16240 Pacific Coast Hwy, Huntington Beach, CA 92649 Oceanview Motel 16196 Pacific Coast Hwy, Huntington Beach, CA 92649 Best Western Harbour Inn &Suites 16912 Pacific Coast Hwy,Sunset Beach, CA 90742 Ocean Surf Inn &Suites 16555 Pacific Coast Hwy,Sunset Beach, CA 90742 Surf City Inn 16220 Pacific Coast Hwy, Huntington Beach, CA 92649 Huntington Surf Inn 720 Pacific Coast Hwy, Huntington Beach, CA 92648 Hotel Europa 7561 Center Ave, Huntington Beach, CA 92647 STR-2021-0158 7771 Ellis Avenue Huntington Beach CA 92648 STR-2021-0174 529 Lake Street, Huntington Beach CA 92648 STR-2021-0060 9151 Adams Avenue Huntington Beach CA 92646 STR-2021-0165 4542 Prelude Drive Huntington Beach CA 92649 STR-2022-0016 5922 Donlyn Drive Huntington Beach CA 92649 STR-2022-0033 207 11th Street, Huntington Beach CA 92648 STR-2022-0028 8462 Modale Drive Huntington Beach CA 92646 STR-2021-0155 112 8th Street, Huntington Beach CA 92648 STR-2022-0036 16811 14th Street#1 Sunset Beach CA 90742 STR-2022-0053 1651123rd Street#1 Sunset Beach CA 90742 STR-2021-0164 714 Oceanhill Drive Huntington Beach CA 92648 STR-2022-0035 912 Main Street, Huntington Beach CA 92648 STR-2022-0032 17162 Elm Lane, Huntington Beach CA 92647 STR-2022-0039 16752 16th Street#1 Sunset Beach CA 90742 STR-2021-0136 16571 S Pacific Avenue Sunset Beach CA 90742 STR-2021-0166 2300 Delaware Street# 1 Huntington Beach CA 92648 STR-2021-0152 231 1st Street#7 Huntington Beach CA 92648 STr-2022-0051 16651 S Pacific Avenue#1 Sunset Beach CA 90742 HBTBID Management District Plan g w4 VISIT 35 March 27,2024 HUNTINGTOH IFBEACH sus SURF CITY USA' Business Name/ Identification °, Address, City,State,ZIP,. Number. , STR-2021-0091 16761 Bayview Drive Sunset Beach CA 90742 STR-2022-0056 17116 4th Street#2 Sunset Beach CA 90742 STR-2022-0077 17029 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0083 8101 Ellis Avenue Huntington Beach CA 92646 STR-2023-0049 20632 Goshawk Lane Huntington Beach CA 92646 STR-2022-0049 16917 Park Avenue#2 Sunset Beach CA 90742 STR-2022-0073 8312 Snowbird Drive Huntington Beach CA 92646 STR-2022-0021 16385 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0012 20731 Spindrift Lane Huntington Beach CA 92646 STR-2022-0086 18091 Newland Street Huntington Beach CA 92646 STR-2022-0087 212 6th Street, Huntington Beach CA 92648 STR-2022-0031 216 16th Street, Huntington Beach CA 92648 STR-2022-0075 726 14th Street, Huntington Beach CA 92648 STR-2022-0085 1106 Huntington Street Huntington Beach CA 92648 STR-2022-0095 115 Huntington Street Huntington Beach CA 92648 STR-2021-0169 17201 Sims Lane Huntington Beach CA 92649 STR-2021-0146 16772 Pacific Coast Highway Sunset Beach CA 90742 STR-2021-0133 610 Main Street, Huntington Beach CA 92648 STR-2022-0099 225 2nd Street, Huntington Beach CA 92648 STR-2022-0003 403 10th Street, Huntington Beach CA 92648 STR-2022-0105 9192 Paddock Circle Huntington Beach CA 92646 STR-2022-0100 19961 Estuary Lane Huntington Beach CA 92646 STR-2022-0107 301 16th Street, Huntington Beach CA 92648 STR-2022-0013 221 6th Street, Huntington Beach CA 92648 STR-2022-0081 609 Lake Street, Huntington Beach CA 92648 STR-2022-0106 16591 Lucia Lane Huntington Beach CA 92647 STR-2022-0109 16841 S Pacific Avenue Sunset Beach CA 90742 STR-2021-0040 4671 Los Patos Avenue Huntington Beach CA 92649 STR-2022-0102 17891 Caledonia Circle Huntington Beach CA 92647 STR-2023-0062 16421 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0091 8331 Varas Circle Huntington Beach CA 92646 STR-2022-0117 6871 Oxford Drive Huntington Beach CA 92647 STR-2022-0122 520 9th Street, Huntington Beach CA 92648 STR-2022-0082 604 18th Street, Huntington Beach CA 92648 STR-2022-0126 1003 California Street#B Huntington Beach CA 92648 STR-2023-0092 16742 Bayview Drive Sunset Beach CA 90742 STR-2023-0106 16361 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0004 30614th Street, Huntington Beach CA 92648 STR-2023-0110 16778 Pacific Coast Highway#A Sunset Beach CA 90742 STR-2023-0109 8231 Munster Drive Huntington Beach CA 92646 STR-2023-0098 5231 Meadowlark Drive Huntington Beach CA 92649 STR-2022-0124 6822 Sylvia Drive Huntington Beach CA 92647 STR-2023-0118 16756 Pacific Coast Highway Sunset Beach CA 90742 HBTBID Management District Plan VISIT 36 March 27,2024 = HUPITINGTON 874 BEACH SURF CITY USA' Business Name/ Identification Address, City,State,ZIP Number STR-2021-0008 7561 Danube Drive Huntington Beach CA 92647 STR-2023-0116 16855 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2023-0043 8261 Munster Drive Huntington Beach CA 92646 STR-2022-0116 15311 Yorkshire Lane Huntington Beach CA 92647 STR-2023-0095 512 14th Street, Huntington Beach CA 92648 STR-2023-0102 603 215t Street, Huntington Beach CA 92648 STR-2022-0110 6062 Kelsey Circle Huntington Beach CA 92647 STR-2022-0127 214 Goldenwest Street Huntington Beach CA 92648 STR-2022-0071 17312 Lee Circle Huntington Beach CA 92647 STR-2021-0171 305 California Street# B Huntington Beach CA 92648 STR-2022-0118 15971 Wicklow Lane Huntington Beach CA 92647 STR-2022-0084 5381 Kenilworth Drive Huntington Beach CA 92649 STR-2023-0124 16575 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2022-0134 19132 Stingray Lane Huntington Beach CA 92646 STR-2022-0097 841 Frankfort Avenue Huntington Beach CA 92648 STR-2022-0144 17151 Granada Lane Huntington Beach CA 92647 STR-2021-0175 7651 Clay Avenue Huntington Beach CA 92648 STR-2023-0117 6045 Summerdale Drive Huntington Beach CA 92647 STR-2022-0108 210 7th Street, Huntington Beach CA 92648 STR-2023-0089 17020 Edgewater Lane Huntington Beach CA 92649 STR-2022-0094 16778 Bayview Drive#A Sunset Beach CA 90742 STR-2023-0134 9302 Candlewood Drive Huntington Beach CA 92646 STR-2022-0139 7562 Washington Drive Huntington Beach CA 92647 STR-2023-0142 411 14th Street#C Huntington Beach CA 92648 STR-2022-0140 17220 Courtney Lane Huntington Beach CA 92649 STR-2023-0127 16541 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0147 218 19th Street#B Huntington Beach CA 92648 STR-2023-0151 307 7th Street#C Huntington Beach CA 92648 STR-2023-0150 221 Chicago Avenue Huntington Beach CA 92648 STR-2022-0119 4642 Minuet Drive Huntington Beach CA 92649 STR-2023-0133 20681 Chaucer Lane Huntington Beach CA 92646 STR-2022-0005 409'/2 6th Street, Huntington Beach CA 92648 STR-2023-0160 1508 Olive Avenue#A Huntington Beach CA 92648 STR-2022-0067 2212nd Street, Huntington Beach CA 92648 STR-2022-0152 ,5131 Dovewood Drive Huntington Beach CA 92649 STR-2023-0112 16391 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2021-0151 427 Lake Street, Huntington Beach CA 92648 STR-2022-0111 5601 Rogers Drive Huntington Beach CA 92649 STR-2022-0088 426 Goldenwest Street Huntington Beach CA 92648 STR-2022-0154 119 6th Street, Huntington Beach CA 92648 STR-2021-0112 14895 Sunnycrest Lane Huntington Beach CA 92647 STR-2022-0158 17312 Norcon Circle Huntington Beach CA 92649 STR-2023-0187 323 19th Street#1 Huntington Beach CA 92648 HBTBID Management District Plan h "; VISIT 37 March 27,2024 IFS HUNTINGTON 875 BEACH SURF CITY USA° Business Name/Identification Address, City, State,ZIP Number STR-2023-0164 407 Alabama Street Huntington Beach CA 92648 STR-2023-0189 235 1st Street, Huntington Beach CA 92648 STR-2022-0163 1910 Alsuna Lane Huntington Beach CA 92648 STR-2023-0193 16962 9th St 1,Sunset Beach CA 90742 STR-2023-0211 17012 N Pacific Ave Sunset Beach CA 90742 STR-2023-0198 17016 7th St, Sunset Beach CA 90742 STR-2022-0165 8142 Sterling Drive Huntington Beach CA 92646 STR-2022-0164 19142 Stingray Lane Huntington Beach CA 92646 STR-2023-0196 1316 Alabama Street Huntington Beach CA 92648 STR-2022-0054 216 10th Street, Huntington Beach CA 92648 STR-2022-0159 222 Chicago Avenue# B Huntington Beach CA 92648 STr-2022-0150 9692 Durham Drive Huntington Beach CA 92646 STR-2022-0066 406 7th Street, Huntington Beach CA 92648 STR-2022-0175 632 Indianapolis Avenue Huntington Beach CA 92648 STR-2022-0168 16772 Broadway#4 Huntington Beach CA 92649 STR-2022-0146 19821 Bushard Street Huntington Beach CA 92646 STR-2022-0169 1411 Delaware Street#1 Huntington Beach CA 92648 STR-2022-0161 1915 Delaware Street Huntington Beach CA 92648 STR-2023-0008 228 Chicago Avenue# 1 Huntington Beach CA 92648 STR-2022-0170 16561 Tiber Lane Huntington Beach CA 92647 STR-2023-0011 3854 Humboldt Drive Huntington Beach CA 92649 STR-2022-0176 2015 California Street Huntington Beach CA 92648 STR-2022-0157 8841 Jarrett Circle Huntington Beach CA 92647 STR-2022-0166 14582 Aspen Circle Huntington Beach CA 92647 STR-2023-0010 1107 Lake Street Huntington Beach CA 92648 STR-2022-0113 16681 Landau Lane Huntington Beach CA 92647 STR-2022-0173 6421 Sligo Circle Huntington Beach CA 92647 STR-2023-0023 215 Huntington Street#A Huntington Beach CA 92648 STR-2023-0018 636 Indianapolis Avenue Huntington Beach CA 92648 STR-2022-0172 18276 Lisa Lane, Huntington Beach CA 92646 STR-2022-0155 5782 Spa Drive, Huntington Beach CA 92647 STR-2023-0014 7651 Rhone Lane Huntington Beach CA 92647 STR-2023-0046 113 6th Street, Huntington Beach CA 92648 STR-2023-0016 210 6th Street, Huntington Beach CA 92648 STR-2021-0123 447 Lake Street, Huntington Beach CA 92648 STR-2023-0026 946 11th Street, Huntington Beach CA 92648 STR-2021-0172 6421 Jasmine Drive Huntington Beach CA 92648 STR-2023-0060 215 Portland Avenue Huntington Beach CA 92648 STR-2023-0054 610 11th Street, Huntington Beach CA 92648 STR-2023-0058 222 18th Street#A Huntington Beach CA 92648 STR-2021-0103 16525 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0039 743 13th Street, Huntington Beach CA 92648 STR-2023-0040 6661 Wrenfield Drive Huntington Beach CA 92647 HBTBID Management District Plan a .. VISIT 38 March 27,2024 HUNTINGTON 876 BEACH SURF CITY USA° Business Name/:Identification Address,-City,State,ZIP STR-2023-0021 117 6th Street, Huntington Beach CA 92648 STR-2023-0047 8252 Michael Drive Huntington Beach CA 92647 STR-2023-0029 218 18th Street#B Huntington Beach CA 92648 STR-2023-0057 7882 Aldrich Drive#102 Huntington Beach CA 92647 STR-2023-0041 21891 Seacrest Lane Huntington Beach CA 92646 STR-2023-0033 20441 Regal Circle Huntington Beach CA 92646 STR-2023-0036 213 17th Street#A Huntington Beach CA 92648 STR-2023-0078 14892 Quill Circle Huntington Beach CA 92647 STR-2023-0103 8371 Friesland Drive Huntington Beach CA 92647 STR-2023-0076 6921 Tucana Drive Huntington Beach CA 92647 STR-2023-0051 510 Alabama Street Huntington Beach CA 92648 STR-2023-0056 2102 Pacific Coast Highway Huntington Beach CA 92648 STR-2023-0034 8131 Terry Drive Huntington Beach CA 92647 STR-2022-0174 8192 Falmouth Drive Huntington Beach CA 92646 STR-2023-0075 16141 Malaga Lane#A Huntington Beach CA 92647 STR-2023-0108 404 11th Street, Huntington Beach CA 92648 STR-2023-0125 16605 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0111 10051 Cutty Sark Drive Huntington Beach CA 92646 STR-2023-0055 16892 Baruna Lane Huntington Beach CA 92649 STR-2023-0144 16782 Heritage Lane Huntington Beach CA 92647 STR-2023-0061 601 7th Street, Huntington Beach CA 92648 STR-2022-0041 1020 Pacific Coast Highway# B Huntington Beach CA 92648 STR-2023-0020 414 8th Street, Huntington Beach CA 92648 STR-2023-0184 20282 Colonial Circle Huntington Beach CA 92646 STR-2023-0181 20662 Goshawk Lane Huntington Beach CA 92646 STR-2023-0196 1316 Alabama Street 1 Huntington Beach CA 92648 STR-2023-0188 19621 Occidental Lane Huntington Beach CA 92646 STR-2023-0094 9632 Peppertree Drive Huntington Beach CA 92646 STR-2023-0210 111 7th Street, Huntington Beach CA 92648 STR-2023-0218 201 Huntington Street 201 Huntington Beach CA 92648 STR-2023-0182 17052 Greentree Lane Huntington Beach CA 92649 STR-2023-0204 17622 Prescott Lane Huntington Beach CA 92647 STR-2023-0217 15432 Shasta Lane Huntington Beach CA 92647 STR-2023-0170 17082 5th Street 2 Sunset Beach CA 90742 STR-2023-0213 10401 Monitor Drive Huntington Beach CA 92646 STR-2023-0222 17165 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0180 16612 Graham Place Huntington Beach CA 92649 STR-2024-0004 6701 Walton Drive Huntington Beach CA 92647 STR-2024-0008 21252 Banff Lane Huntington Beach CA 92646 STR-2023-0165 610 17th Street, Huntington Beach CA 92648 STR-2023-0202 17026 7th Street,Sunset Beach CA 90742 STR-2023-0136 16721 Phelps Lane Huntington Beach CA 92649 STR-2024-0003 119 9th Street, Huntington Beach CA 92648 HBTBID Management District Plan VISIT 39 March 27,2024a a- � ' HUNTINGTON 877 BEACH SURF CITY USA` Business,Name[identification Address,City, State,,ZIP= Number: STR-2023-0178 510 9th Street, Huntington Beach CA 92648 STR-2024-0014 17155 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0149 16791 Bayview Drive Sunset Beach CA 90742 STR-2023-0066 9971 Kings Canyon Drive Huntington Beach CA 92646 STR-2023-0186 124 Main Street 303 Huntington Beach CA 92648 STR-2024-0015 8021 Mermaid Circle Huntington Beach CA 92646 STR-2024-0025 115 7th Street, Huntington Beach CA 92648 STR-2024-0032 516 Huntington Street Huntington Beach CA 92648 *As of March 2024 **The list was developed with the most reliable information provided; however,the list may contain discrepancies.This list shall include any future to-be opened lodging businesses.Any lodging business that may have been missed in this list, but is still within the boundaries of the HBTBID,shall also be subject to assessment. • HBTBID Management District Plan '. VISIT 40 March 27,2024 HUNTINGTON 878 BEACH SURF CITY USA" --- ,INTRODUCTION TO VISIT HUNTINGTON BEACH INTRODUCTION TO 2024) . . , . . .... ........ _... .„.......,. .. _ ,.. . . . ,..... .. ...•..,2.2,.....,,,,,4...7....: '.f.,°^7 7.t.:—..!...--,-,f_...-L......, .,..z,,,,......., -,..4,, .,<4._,, *- t.,--. '.,:::_„ :-;-* ••' ..4..,.. 4,4,r,..4,...w.7 ,4‘ ' ''''...-%TN"Vt1.4"1''''4"M."'P.1%\kat -. *Alit a. ,111°‘*. 0--- .a..... •- ..'* ' -.•.• . 'r- . -— -- ',...*---.-=c...- s, . . ,....,. .-•I- . ..1,4441- 4, _ . - .• _ , '.''' '---4 ..-i -V.11 Iti ,a, ' ' 'II-41.,-- , . • . . '1E-Wintoprir arAgiSREft, .-...:.;' --,,-... z....... . 7.4„rorriv;....-.., ..: ., . „.. - ,,.....„.... 1 I '' 4 v, ./f, , ..:.. ii. ,.. 4t,t.at:` :' ...' 3/4:1;-AA'—r •' - 1" =-4?-4:.--i ."*. ',"" --.`-e.---- '.-z.-'4.1.4u-.,,,--.1- .. t --4,11 , ,-in'tory le: :..bAt/7-1-=, — 1 At.'..v.,4`:-4-- .. . - -,- --. -....,....,....4.-....:-,,F, ,,,.; --...-:.,,..i..,,I,._".?„,„ak. re,i - . ..-. "‘'. 'n,"'".". .. i ... .4.-.-71.144.41".....4",_ __ . 4. It$ :. ;...„44 . ..t,_,......,__. aa. _,aa v , oaa .. .. a.. . =- 1.1.. ,rl, - . . - - ' ' ' - - ' . ' 't- '''. • - - _ - . . . - --t.: -- ,.•s'' '''--.•.,3.........1.-4.71%Mr4.1 ",-.#."'...a-:,',...1Z a'"-,,-."',,,,,,,„.,„_-,- ._. , .. .„.'- ,-,- -.:"",-.-,'"--,L-4,„:::•,,‘' -,.._:,-..,•--, --,,,,•.----'1,-;,4f- .---7 1„,. .1-- f--:-1------"--.--",--- 1*-1''.ef',-'.., —____ —-- , — - .... 4... - /..,.., - '---:- „ -'''.kr - 143/44-4:" ---.7*,.'.:;2:".;-•.--.:÷ 7-?..- ,,,- :-...--J„,^ :—-1-- •-,....„.„,, ..,_.,..„„, _,,,, ?Jr.'r. .' ,'•••.• .''t....,":7`.......-.;_.-.'''. . ..--4.4.',....4,44.-,,,;,,..----,- ' ......"'' ....,-...;.--2,-,r.:-.1,.. ..- -' 4 ,..,:rs,,,,..., ...: .9-' '. , ,..; ,,,,. 7.1kviii. . ,,,iii:c,,< •,,,..--:::,..,,,,,,,,,:,:---,:---,,--:::::--- 2 . - .,.,- -- ,:, .,..,..14-1`......-.7 -7----...--.7 -- ,...r—r,;„,4-41-4---_;;-: c`--- --',.. "..,. 77,' * '''''',,:' ..`_ ----,--- :_-,_ ..----.--7-a-,-,-.‘ 7.....-,--.,.,.-r.;-..,...:-_--,--:--71..„--T,------,.. ,..--0..i''''';'.7!:.' '''. -1' ' 5' ''.10...'..t.'''''"7" *:- `.y•-•;.--ff`•''.r.7-7---";:t:' --"'"7.."---- --_,....-.4-•--...:-. .,.:...,'_7"--.....7.,,,,,,I.,,,,,,.."..,..-.........,..,a_..;-,a.; -.4.."::v . - . .."..c.;--7..;,--."-^-,-"Z"•:-.„i..:,.7•-.7..-,',.,„. ,.,- - - - ^ •." ^ —....-. '•'•":"---...--......4.--'-• .. ,.i.....- .- ..,,..-• '-'24,44.--.7.---'---,-.-..•-."----.4..?"--"'...;I_ '-'- :. 4^'.. , 0.,.. ,.,...,-....... . .. , -.• •--*--" -7:--77-- `,S.,-.....--,=-Z... .--..._:."..s. ... ...........,^"...--,--'a-;7..-_:p.----",'"*4•••*'......•.a. • , -. -..,...... ......-....?°,, •',._ -•.-----*Cr-7..."--..„.;,.•.....,7".^....^..r... -,,,..7.,....,-,;-.a-, - - ...". ,..i. .: „.4-, - :,....,....,- . . .. . -..,-, -.......,----- -------- --,-,--.-----: :--r- ..-.--,.--,- -.------,,-.....,.,. .. - -- •7 - -... "- '. ",' -.''',-"-,-,.. ''''''''' ""t"."!- ---- ' " '-'--=•-----,--a.--'`...--,;„-„----- .,..-mena,. ....-. ,,.. .-- i.t. '...,-t--T-..r".--,'"--•---=':-....7. -.' - ---'-''`-'-':-r..:" 7*"''''. "`"..,447,"'7,,-- ' --..,'''''.- - • -- - .--'•''''''--t".'.7-- •;"^- -4": " r 1 41;111 . :,-.Z.,";::,7---1-"z-c--•:.'"-,--, ,=.-f---:- ---'--"---,---4-.--'*---;?.., - - 0-7' _-..--41,..." •-•'----- .-.'", ,,,„4,;40,4‘. "43Stz.-0:-..riv,:c.-i-%-ii. 1 .) t,,,u ,,,"k",. ,-.7.-••••„-•-A.,:".-,'•"t"- ..,••;:-.,..-"7.-,-,_:-_-:,-,,,,,,,:,--'77-,-,-,:.•.- . ,..z.. - 1,-•.. - :,,--..,-4-..---"z•r"--,---,1--•-"`""‘",•-•"" t s• '!, - • :,:- 4.:;."'",.----:-.-- .,`,,,,-..--- " --"-"4:---"z-:-:.----- :-. - - - "...„-A,..,.., .„, - - -,...,,,-...- -,..•••:.,-,:,---„,.,.... ,-....m,. °Z.-.. , ...,,,-,-,,...,„;_f,,,,,, ,,:::„... ..--..-„,_.-._ .7_-___,,„:.-••••-.'„..-,-.,. -_,,,,-„-,:r.... _, - - - •--;' - .--- .-- - - -- .---":"----,=.7:- .•• •'..."-."-.0„ .•-.;,-”;•-•,.......,,,-;4?-.---;....: r_- -.. ' """*V. -' ‘.'"--,--Z-7,:-:"."'-4,,i7... -""=.---•-•:"1-•••••,:'...-- ',":7-•'-_,.'",S:-. - --:',."..."r 7 ;-• l'"'"" '-,,.. -'`.,•:'-''''.'".--11-..'''''' ...."'" •-::-• '''''.'77-,;.:77,'-' . , •^, - _.,„,,,.................^.^t. •- ;.,,,f;,-..--"f . . ^"..'7,-;":-,,.... _..."--4,.. 7.:...F.....=V...:',.... .^-.:_;":" ' .". •^-•,..^T.^•7"-.t 7 ".4.. '"• ' "-^";,"'-''..4 --"'•,;.'i•'''''-^-'••,..,7". •,..".....•-.4.",...-,"^a-,.."", ' ,-._ _........... _ . APRIL 2024 VISIT HUNTINGTON BEACH ABOUT VISIT HUNTINGTON BEACH WHO ARE WE? Visit Huntington Beach (VHB) is the official Destination Management Organization (DMO) for Huntington Beach, California. A non-profit 501(c)(6) organization, VHB promotes tourism to Huntington Beach to increase afiri overnight stays in Huntington Beach hotels. VISIT MISSION Visit Huntington Beach supports and advocates for the economic vitality and quality of life for our Huntington BeachHUNTINGTON community through inspirational destination marketing and brand management. • • VISION - OUT A welcoming, beach-infused community that inspires the stoke of optimism in every visitor and resident. VISION A IN VHB is an effective destination leader representing the combined visitor industry and community partnership in the brand development, marketing and sales of the Surf City USA® experience. o rt. APRIL2024 VISIT HUNTINGTON BEACH VISIT HUNTINGTON BEACH: TRANSPARENCY C NTA I ITl Visit Huntington Beach is fully Accredited with Distinction by Destinations International (DI), indicating that the organization exceeded .00N Mq the minimum requirements for accreditation with over 100 mandatory and voluntary standards that span a variety of performance `e 44' areas. With over 200 destination organizations around the world who have obtained DMAP recognition, fewer than 10%earn '< "Accreditation with Distinction". I 0 c = ' „ - rl� g Our organization embodies a community-focused spirit of service that is proactive and strategic. As part of this effort, we are pleased 7� WITH DISTINCTION. it to provide information dedicated to transparency and accountability in our DMO operations and program of work. C:P445zT•arioN �`oo� BROWN ACT Over 10 years ago,VHB voluntarily agreed to be subject to the California Brown Act, which allows the public to attend and participate in meetings. All regular Board of Directors and committee meeting agendas are noticed at least 72 hours prior to the meeting and all meetings are open to the public,with a public comment period available at the start of each meeting. All agendas and minutes are posted on SurfCityUSA.com. MAMA!. STATEMENTS AN.:, AUDITS Monthly financial statements are presented at each VHB Board of Directors meeting. VHB also undergoes an annual financial audit using the same audit firm as the City of Huntington Beach.The final audit report and audited annual financial statements are presented at a Spring Board of Directors meeting and sent to City staff. BOARD GOVERNANCE • VHB is governed by a Board of Directors,which provides strategic direction for the organization and supervises VHB's President&CEO. • VHB's Board meets at least quarterly throughout the year.The Executive Committee meets monthly. All meetings are open to the public. • City Council appoints two liaisons each year who attend Board meetings and receive regular updates on VHB programs. APRIL2024 VISIT HUNTINGTON BEACH VISIT HUNTINGTON BEACH FUNDINGHISTORY 410, VISIT li HUNTINGTON The Huntington Beach City Council approved a BEACH Conference and 5-year agreement to give the SURF CITY USA' Visitors Bureau HBCVB 10%of the city's (HBCVB) became Transient Occupancy Tax (TOT) City Council approved the incorporated as a collections in lieu of a fixed creation of a new Tourism In April 2021,the City of 501(c)(6) private, not- annual grant. For the first time, Business Improvement District Huntington Beach began for-profit mutual the HBCVB's funding consisted of (TBID)with a self-assessment collecting TOT and TBID benefit corporation in both Hotel/Motel BID of 3%on hotel and motel assessments from Short Term the State of California. assessments and TOT collections. overnight room stays. Vacation Rentals (STVRs). 1989 2006 2014 2021 ar. ..___ . _ __ ,eau= s ___ ,,,. __ 4, . . .a .w..�� � 2002 2010 2018/2019 2023 City Council approved the City Council approved a In 2019,the TBID was VHB is preparing for a creation of a Hotel/Motel Hotel/Motel BID assessment renewed, and the City Council TBID modification, Business Improvement increase of 1%, increasing the simultaneously approved an increasing the TBID District (BID) and a self- self-assessment to 2%. assessment rate increase from assessment from assessment of 1% on hotel three percent (3%)to four 4%to 6%to remain and motel overnight room percent (4%)to mitigate the competitive. stays. loss of TOT funding that the City had previously been providing. 882 :4, it a �t '� y - F LY t s VHB's funding does not come from taxes paid by residents, such � ` ts._, as local property taxes paid by home and business owners. Funding is derived through a Tourism Business Improvement �' District (TBID) self-assessment paid by Huntington Beach hotels who collect an assessment from overnight guests choosing to stay in one of Huntington Beach's 21 hotels (2,368 total available rooms) or 218* short term vacation rentals (STVRs). it '5,, Business Improvement District(BID) = 100% ,Q r - 0 Transient Occupancy Tax(TOT) = 0% • Other = <1% , Tourism Business Improvement District (TBID): Huntington Beach's overnight hotel guests pay an additional 4% assessment for each occupied hotel room per night during their stay.The TBID assessment is not a tax, but a self-assessment,which the 21 local hoteliers and 218*STVRs place upon themselves for occupied rooms and is paid by overnight visitors.TBID assessment revenues provide a more dependable, long-term,sustainable revenue source to market Surf City USA® globally without any tax impact to local residents. Transient Occupancy Tax (TOT): Visit Huntington Beach receives no TOT funding. Huntington Beach hotels have contributed more than $200 million dollars in TOT for the City since 1996. *Total count subject to change APRIL2024 ° ;, ° ° ° � � , VISIT HUN°T°fNGTON BEACH VHS 026 :_ - , STRATEGIC'' VISIT HUNTINGTON BEACH � � _ 2023 2026 STRATEGIC PLAN 6, - , `; t ens �` i � �. . ,. { .,. s•.,... � � tn ._..-�, - _....w s f4�. � aiw`�'m.. a '• i� ,ld••k''7n� r Cr. 4.. 'n«K. a x • ,� t 4 A welcoming, 1 VHB is an effective Visit Huntington Beach ;VHS embodies a The Huntington Beach I Huntington Beach rises above its beach-infused I destination leader supports and advocates • community-focused ' experience is: f, competitive set destinations,offering i community that I representing the combined t or the economic vitality t spirit of service that is • Inspirational € unique value to visitors seeking: inspires the stoke visitor industry and .nd quality of fife for our • proactive and strategic. •• Authentic Beach and Beyond Experience t of optimism in every community partnership in untington Beach community , • Friendly • Beachfront Hotels visitor and resident. the brand development, , .rough inspirational E • Fun Downtown Experience marketing and sales of the i •estination marketing and i t • Accessibility , I Surf City USA experience. .rand management. r i 1 ..IMPERATIVES • OBJECTIVE'! . INITIATIVES ..o • Increase HB accommodation sales as measured by RevPAR by 3%YOY - or • Issue RFP for creative agency of record b : r • Increase overall digital engagement by 20% • Leverage the World Cup and LA28 to expand global destination Drive Global • increase media reach and Barcelona Principles score by 15%YOY with a brand awareness Brand Awareness focus on positive engagement • Secure year•round signature sporting and citywide events • Increase group booked room nights by 6%YOY • Efficiently leverage brand partnerships to increase Huntington Beach's global brand awareness _. ,.. • Enhance partnership with the City,Downtown BID and other • Increase the length of stay 6.7%to 4.025 nights by 2026 entities to enhance the Beach&Beyond experience Enhance the • Increase visitor spend throughout HB by 12%by 2026 • Develop outreach and education to enhance customer service Destination • Achieve a 90%or greater customer sentiment score by 2026 for all visitors,including international and accessible communities Experience • Facilitate the creation of new bookable product • improve connectivity throughout Huntington Beach • Establish a baseline Net Promoter _, Score and increase YOY through 2026 • Utilize VHB Board to act as tourism ambassadors • Cultivate our advocacy relationship with the City Champion the • Articulate the quality-of-life enhancements tourism brings Value of Tourism to Huntington Beach residents • Develop and implement partner and resident sentiment outreach and evaluation program • Develop and establish customer sentiment survey in Year 1 • TBID modification approved " Prioritize • Improve YOY customer sentiment • Develop stakeholder engagement plan(Board,City,DBID,Ambassadors Organizational • Successful TBID modification in Year 1 and Chamber) Effectiveness • Maintain 90%and above on internal culture survey in Year 2 • Improve and maintain overall processes based on and Culture • Ensure financial accountability as measured by a successful audit,achievement culture survey results •t`f VISIT 884 of zero-sum budget,and grow reserve year over year • Develop and deploy customer satisfaction surveyHUNTINGTON BEACH a. SURF CITY USA` n VISIT HUNTINGTON OEACH SURF CITY USA°° ,.w.gr w ,y '§ '4a '°m` a $ `ia rg;,° aR d A° °.: • •a, .r•11, , '�. a..sip ;� #' .' 'ra°r. aa 'S aa.®: ,g °:&o aa.c`.' �b B.aP ..•"r- «. . .'ens '°° �:a "°fin "yq '". va 'e" 4,r"$ § s= °7 ,o-w. ., ^,� °c.a.s�. d. '�. twl d.. Y = &,q '. '.�Q a•,a ° , w „s �'°sy:1/4"�` ,n:�3�w�•g� �� ,.k' e...: .�N�&®.ma m 11 h;' '3s % a« ��°•° a '��� a 'm�, $3 ®:,� :; B r gyp ae.s a� ° ee44 . a• ° R a a_ a �, °,, u� , t,a ° C q a, .'+`a--e.. . °.. .. w r' . •. .. ° ... ...tea. . a �." s ,�,�a.P;-,/--t DaO ' `.s• a, F ,: . , . . . � . .�. . . ..,a � , . ., � , � .�.. ',�A � ,.ER:SERV�CES ���$�_ s �li��• n: . :�a ��� . � �� ,gib °� 7� ;a=p °s,.P.a,� a. • a-::?��tm: .>�._-'s,..-'�m. ��a...,.._..m ,..�.a.,.,.�,-9 .e a <., __� .� ._. �.re..-:- °�' 4- �•„,,,A-...,,v,a. a. n�' � �aaa.�w`.�e: :�r.- .-F�.��_4,»-�a�i__--r3 <°4. te RESEARCH • MEETINGS / EVENTS PARTNER EDUCATION SERIES WAYFINDING SIGNAGE ADVOCACY TASK FORCE DIGITAL/ WEBSITE CONVENTIONS EVENT INFO BOOTHS WALKING TOURS COMMUNITY OUTREACH SOCIAL MEDIA BOOKINGS 1 RFP VISITOR INFO KIOSK COMMUNITY EVENT _...../ / \--- PUBLIC RELATIONS RESPONSES FOR HB PARTNER •PORTAL SPONSORSHIPS DOWNTOWN BID, HB ADVERTISING COLLECTION CRM MAINTENANCE ENGAGEMENRFR T TY OF HB TRAVEL TRADE PARTNER LISTINGS SUMMER BEACH FILM COMMISSION `ONE STOP SHOP' FOR PUBLICATION DISTRIBUTION RESTROOMS PARTICIPATION ON E-NEWSLETTERS MEETING PLANNERS EVENT CALENDAR BIG BOARD INDUSTRY/LOCAL BOARDS S / \ URF CITY USA SLOG SPORTS COMMISSION AMBASSADOR PROGRAM & COMMITTEES '� s ,a y.• -..R . �. °fig 3 �� HUp-_�.__ " „-t a. 't. ' Lw ,+�b '; , L` g' g,_ i`,' r ."'a^ . € 4cx '� E`7 «_tz," Xw. } 01 F;� } ' 1 � � b � gg r '�i o-~ I'N' s 9 IGPs47/I.„,,i rit,1 It 7'e�� y- y# d J REPUTATION DESTINATION PERFORMANCE KPIs Credibility ° ati EARNED MEDIA VHB's comprehensive sales & °= " � Media Relations Trust 4 , s . e. Influencer/Slogger Relations marketing initiatives are Thought Leadership \, :s$ d EA N ED p • Social Monitoring designed to drive a steady MARCOM Authority �� r „ r g`°17%A� �o Familiarization Tours flow of leisure and group 44.WInfluencer Marketing __ ,A° � � �° $Wa° Trade Show/Sales Missions business throughout the year Experiential Marketing - , r °x � Word-Of-Mouth --"----.._ with a focus on the hotels' Event Marketing , .' -� ° Accolades ,:41.--, 0 \ . o - ° "soft season" non peak � +` £L ° COMMUNITY period (typically November— PAID MEDIA ;` t, 'A, a . . ; .SHARED. Visitor Center&Kiosk February). Display Advertising � � i mo . ,, .� , Social Media Ads '-' '•° $ 8 °4.rF Community Building Boosted Content , �r ;~ . , . . °° ,`° Engagement Throughout the entire run of Fan Acquisition • • , .. -Detractors it various programs,Visit Lead Generationa ; � ` ` ° ° -Loyalists Sponsored Content OWNED MEDIA `. -Advocates Huntington Beach uses Paid Publishing Q.Website OWNED ` `i Brand Ambassadors several data sources as well E-Newsletters 41; V SHARED MEDIA N Team Surf City USA® as a blend of over 50 Key Visitor Guide �.� `' 4� Occupancy User-Generated Content Performance Indicators (KPIs) LEAD GENERATION ___ Content Marketing � % Average Daily Rate Advocacy to monitor and determine Email Marketing Videos/Webinars ''' • RevPAR the Return on Investment Affiliate Marketing Digital Display SEO/SEM ; TBID(TOT)Collections Inbound Marketing Customer Stories Experience,Expertise, N Visitation PARTNERSHIPS (ROI) performance of its Contests/Quizzes/Polls Employee Stories Authoritativeness and ---' Visitor Spend -- Community Service Paid, Owned, Earned, and Visual Content Trustworthiness Jobs Co-Branding Shared channels. Audio/Podcasts Domain Authority Research .eaz APRIL2024 VISIT HUNTINGTON BEACH �� '� ØLW fl1 © ([ J 'iUI ° YDE VHB monitors and/or reports on these KPIs in the following cycles. DAILY MONTHLY(cont.) OTHER • Social Media Engagement • VHB Media Buy Campaign • Campaign Wrap-Up Reports • Website Performance • Website Performance • Special Research Projects • Sentiment Monitoring • Visitor Profile (Geolocation Data) • Visitor Engagement MEETINGS WHERE VHB REPORTS ON QUARTERLY WEEKLY • Custom Industry Insight Report per Hotel RETURN ON INVESTMENT (ROI) • STR Report (Hotel Performance) • Expedia OC Coop Campaign • Travel Trade Updates • Group Sales MONTHLY • VHB Leisure Newsletter • Hotel Directors of Sales & Marketing Meeting • VHB.Executive Committee Meeting* • STVR TBID Collections MONTHLY • Visit CA Coop Campaign QUARTERLY • Hotel TBID Collections • STVR TBID Collections , • ' VHB Board Meeting* • PR Media Coverage • VHB Staff Check-Ins • SEO/SEM Performance • Web & Digital Check-In MID-YEAR • Social Media Performance • VHB Mid-Year Recap Board Report* • STR Report (Hotel Performance) MID-YEAR • STVR Report (Short Term Vacation Rental • All Hands Agency Meeting 'J ANNUAL • Performance) ' • HB Chamber State of the City Update ' • Travel Agent Training ANNUAL • VHB Annual Recap Board Report* • VHB CEO Newsletter • VHB Annual Report(City submission) • VHB Fiscal Year Budget Board Presentation* • VHB Financials • VHB Annual Economic Impact Report • Annual Financial Audit Presentation* 1 • Group Sales Newsletter o Visitor Intercept Survey (every 3 years) • HB Tourism Summit(every other year) • VHB Partner Newsletter ss *VHB voluntarily agreed to be subject to the California Brown Act,which allows the public to attend and make public comments.All agendas and minutes are posted on SurfCitvUSA.com '�;j„ v`:ki,'S5, ;i'.m'.''`". ,^:( +e: . T. .. i . a:�'y _,„ *.*" % ,.P' 3 ; - _ - . . , iir _ x 34 ,., """,;. �; x ,yam^ ":a :.,^. * _ _ . , a iy r - U°'—''' � 4 4`rt • i s x:" ,, , „„... _ ' �,.,+e.a, ,¢.��' * '.,�.; , .s±4�":;'"�" »� �;H. M,.a3, �,,.w,s'us_R, � �"' ux ".�'n�, ;,,�` -- ..' �� - �.�.�,, 3-333 74.3433 yNw +:,44;d,,,,, c .r ,^,, Hvim,. "�..`r �' v Q. ,.4,- 7" - r 3 r„�r "",". ®. ;4 . .... '_..--,,,,., `.w3,.a ">v", "+. � s�'`'sY'".'. �y r '" w'eya�„s .. ..a"-�: ,.. .c.. -W..'e;^-.� ,„"'xk`�'" ..:,,."# `^-�. er"'ya'ie 'g 'm',`"`'ror.... ,.': „..,ice ._' "r,„,.*W' r`.>a, y t�+rt.u- �'t"'s a t'r -?s,' ? = „x,,ate. :7: -'''---.ti' .... :° -",. n �. '1. ,,,%`: i^ :: g r k,r,. = .e r�"a4if ii� .., ^a.- x.:-.ks '".'." "ae -�.^3 k4 .,,'.:i-''ati-° '.,rv;'� n,. �' ' ';.:;�.fy w�'vr ...«y �:" � . , i tires '�.��"�+��.� �7 �„'�.�.:wc�^,,... • :-- � . � � _. 7�.:�.-.'."...«'.� Pf"k. .-'�a.�-_.;. .,` �"�l a., - �i � =6._�'�,*�%�s. �,.."w7.,w«. ,. �F'�,; °.".=t „ +�.-.,.�`6'*#? r+µ 'r.='�*»' �. 5n ., .#677;""^°r, n 3;`'"a,?. fi ° w. a. .F•� t-- 5. a' ^"^4 weK;t:.,. � � .....',' e.G,h ,4.....;-.-. -�c3• 'Fr+ s. <„` -#—k ?^�"-:„.,..,r�+,-'= Y+.' yg$� d "4 i r ;''''`�- a."' .g .;%.,� 7,"'",' i' `. .'V.. k, +" :�' ""�P� ........;... :S� a. 3i..� �, :'r'j4 4 � .9'" Wit: �:T... � rl '� 'r-* .>, ""„" '..�--"'.rn. -- -Y ":'.:w'.�z�..." _x=.�.,..!.a r +t. . ;'a "�.aa tCaw , 3 x-..:.f" «�:r:... ate �. `4, `e' ' , x , 3 t ts �., ,y��,... +�^ "' ..-ms� .�� "3+... w w ��,ts r'ik" �. ;€a- q 5 � -.� � a as �" .,, � -mr ar.., - - ;e"4.." a^,r,,:,,,_ .* ,, . � "�f;.'t'' 'a 3 yam, . +- ; .,-'a `, �i +i4 ▪ :wk.3,:,..-,. +, ..:33,.r„ -w:...-*.,ri ,3 _ ,...,,tri3 ..r _,�.• .' ,.mz.3 '' .: . ,„= y, a,y: •s3 ?dz ":�s"„" � "�"" ,�'• t '�- ,�,,, ``rs»,c"', "r..�«.e+ _ - '"a.".u 'A .?„" • wvs s`r .. *::M" `;e ''�. a, `"'"" +.w !!� ' "....ow,µ,'°4 ., ,.--:.47*" w�. a w; g*4`. ry „ " `� r. +.ova '`• �,. .,� , ,r'. am. riwrt4.. _ ".+ . � `aa,' �'� � °" "„ ." . .., "" g• %a'4 .1�. w ,: 4 445 5',"x' r 4. ." _''* .7, --+ -'*' . �r!' s°`�' _ 'Yf , `:.y'r ^w..`wS .,. e., n , . frn. ,� _ �� - !:': "-; ."a .a ,'"' n " �° '� &*- - � • - ., • .- c � • '- ? " - ,`,+ u-s .�s" _ {.4„,, " ° 4 .7 ' ' i ' "! .* S - - a . .- _* . ;44 • -• °a APRIL2•024 :,•: ` "VISIT°HUNTINGTON^ BEACH „0„........„..... I N G T .. "I& Receive Public Comment asses.*.‘) .• 04/ •� Pursuant to CA Government �� Fo Code GOV 54954.E _-- ��— �` Regardingthe Modification - - -_ . y c', N of the Management District '` Plan for the HB Tourism � -� = �-- ; Business Improvement ,, 0- ,;;)1� i . District - _ _ - ' _______:__.- ____-.. . ., At I• Fa. 9P. .• O► Public Meeting Ai °OUNTN Ma 7 2024 c / y .► 1j �'iI/.r� 889 Background • HB Tourism Business Improvement District (HBTBID) �,l�� �w�T� , '*+ess jl A formed in 2014 pursuant to the CA Property and ��+° . A <AA Business Improvement District Law of 1994 '_ • 7 HBTBID purpose is to market HB to increase overnight room sales cdtiNrY ��_� ��� • Funding derived from assessments collected from lodging businesses (paid by guests) operating within City boundarieskro VISIT 44.4 • HBTBID was renewed in 2019 and runs through io HUNTINGTON June 30, 2028 BEACH • Management District Plan (MDP) identifies funds SURF CITY USA' and outlines programs 890 HBTBID .b � i� 7 ca,am 1 �` Cxov Pad 4 5 • Comprised of approx. 21 hotels/motels x� 41dE �� ,- __. �r- ��" +,�,�'��' � d n s�▪ ,,r ,� ,YSVE,�tia^tef , LL�rt(�" and 200 Short Term Rentals STRs1 '4T' h s.-1 - _ E e s / -€1 - -,�. _�`� County. 3 we • Current assessment rate is 4/0 of gross �� � �� -���,�-- � : � ; -� �m. short-term lodgingrevenue (separate (,4 from 10% Transient Occupancy Tax (TOT) a �,��f _ . collected by City) xtu�ri��to>1 Fo,n,,,av �y /` c° _ Beacs //„': )` • Boundary includes all lodging businesses, existing and in the future, , I within the City ��, �� costa Mao • Total assessments approximately �' $7 million for FY 23-24 � r , � tC 1 u1 Ne ort Beach 891 Visit Huntington B each (VHB ,, J-„1-.-,,,,.,J-4,-.,.-...-..-.,,.,4-,,.,,;,,,,„,,,.,.,..,,,, • Visit Huntington Beach (VHB), anon-profit 501(c)6 organization, serves as the HBTBID Owners' Association 20Is 202Z-.'„-'-,„'„..*„0t'*,'. • Consists of 17 staff and 22 board members i m vise m 'rr--V-.--o..g„-%„..-,,,,,,,,,4.,.,,.,1--'.,,,,....'-.'..,...r,'. ._-j..„.,.,,..-,--'.,..,-..1-,,-_--,,, _,1.4,,-,.-:,,—,,P,+,,,-,.;-,.,1,,-.v,:'-.,-'-cI.'''-',.,4''4•(,i%-.,4,-,4.•1.1W,.1.2--,,- : Responsible for im lementin the MDP , :„,H • p p g �� �� sR rY use u programs and submitting an annual report to City Council s : ' , • Mana ement A reement between Cit and o g g y VHB outlines responsibilities of both -, � ) arties related to HBTBID fundin and 4' , . p g programs HUNTINGTO N BEACH:.1i_„l" TOURISM BUSINESSIMPROVEMENT DISTRICT • • MANAGEMENT DISTRICT PLAN City collects assessments and then distributes funds to VHB 892 HBTBID Modification Request • 2019 - City began retaining 100% of TOT revenues; Assessment rate increased 3% to 4% to mitigate TOT loss • HBTBID assessment is the only dedicated funding source to market Surf City USA • Competitive cities have dedicated more resources and are adding lodging properties/attractions making funding deficit gap greater each year • VHB is seeking to modify the MDP to increase assessment rate from 4% to 6% to remain competitive and ensure that tourism promotion funding is adequate VHB Comparative Set Location • 'Amount Raised Assessme -Rate TOT Rate • • Ghi `uest` ar aAnaheim , $17,500,000 2% room revenue i , 15% 17% N arhmoth Lake " $10,800,000 1% room revenue 13% 14% Newport Beach - $13,000,000 5% room revenue 10% - 15% _ } Palm Springs $17,000,000 1% room revenue 14% 15% san Diego $41,000,000 1 2% room revenue ; 10% !' _ 12% Said Luis Obispo $10,400,000 1% room revenue 10% 11% Santa Barbara $10,700,000 2% room revenue 12% 1 14% $7,000,000 4% room revenue 10% 14% 893 OC Produ ct Additions/Enhanc ements OC VIBE NEWPORT BEACH • Vea Newport Beach • Hotel (500 Rooms) • Pendry hotel • RH Gallery & Rooftop Café DISNEYLAND • Disneyland Hotel ANAHEIM • Vacation Club Tower • JW Marriott Anaheim Resort • Pixar Pier Hotel • The Westin Anaheim Resort • Downtown Disney a `" ^ w* 6'4'i 4' s"`aa� 041,u 4 , <s ads se- , "� SOUTH COUNTY ` �� . . '* `.{ t '�' fir' ` �x �3 , e€� 3 y, • Waldorf Astoria jf . , � 4 5 Ae� � � w '' Via. • Ritz Carlton _ ' .,. K q g .. a # , • Dana Point Harbor ,, � 4, � �1kir, P1 P' : �. r, Proposed Modified Bu dget Sales & Marketing (65%) • SurfCityUSA.com website, media buys and seasonal marketing campaigns, i. E q qse � public relations, social media, consumer � ��- -'s �o --���-�� Sales & Marketing ,_ 65% advertising, the official Visitor Guide, _ -_--.-__-_ _ k. 72% ; _. _i 0 maps, historical walking tours and the Tourism Enhancement Programs 10% Surf City USA Barrel Trail, and Administration __ ; __ ._�_ ___. _ i� _ 19% IL 19% -_ n Tourism Enhancement Programs (10%) Contingency/Reserve 8% 5% Elevate the visitor experience (improved 1I I • p (� p City_ Fee 9 1/0 ,� 1% wayfinding signage, temporary summer beach restrooms, a nighttime Total Budget (Approximately) $7M $10M ambassador program, infrastructure improvements, improved accessibility, and more). 895 Proposed Modified Budget 2024 VHB PROPOSED MODIFIED BUDGET: Annual Assessment Budget $10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2% increase in TBID assessments,VHB forecasts its budget to be approximately$10M.This amount is reflected below. All proposed programs funded by TBID assessments must be approved by the VHB Board during the annual budget process and must adhere to state laws governing these assessment expenditures. Contingency/Reserve City Admin Fee $500,000(5%) $100,000(1%) Administration $1,900,000(19%) Sales&Marketing $6,500,000(65%) Tourism Enhancement Programs $1,000,000(10%) • Includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE) Programs from 2019-2024 MDP 896 HBTBID Modification Schedule Resolution • In response to VHB's written request, City`Council adopted Resolution No. 2024- April 16 13 which states the proposed modification and initiates MDP modification Of = (Adopted) proceedings. Intention ▪ ,Notice,and Resolution mailed on April 19 '2024 (completed) April/ ▪ Newspaper publishing at,least'7 days before public meeting Notice ` May • Public meeting to allow public comment Public May 7 • No Council action required Meeting Pxublic �# Public hearing, ,not ;more than 90 days after the adoption of`the .ROI, on the. proposed IVIDP'modification's` :.•Hearing `� ' � � °`'� � =_ 1. " June"4 • City Council,�followingthe publichearing,ymay decide to modify the HBTBID and &'Resolution of adopt a Resolution of Modification Modification 897 Management Agreement Amendment • Management Agreement between City and VHB outlines responsibilities of both parties related to HBTBID funding and programs • If the MDP is modified, then the Management Agreement would be amended to define specific Tourism Enhancement Programs that both the City and VHB would fund during the remainder of HBTBID term. rit'i!1;:tialgo4t4h14,40111046c41)4,7441ev,,Aah, a_ s Wayfinding Downtown Parking Structure Upgrades Walkability & Connectivity Downtown Specific Plan Improvements Temporary,Beach Restrooms { Mobility Enhancements Nighttime Ambassador Program PCH & 6th Pedestrian Path Accessibili ty � � � -All-Inclusive Playground Upgrades r Bike Valet Bluff Top Park Lighting Beach Event Infrastructure Enhanced Downtown Maintenance Improved Surf Museum for LA28 Restroom Upgrades 898 Recommendation Receive and file public comment related to the proposed modification of the Management District Plan for the HB Tourism Business Improvement District per adopted Resolution No. 2024-13. 899 . arm ""m+1'+u \� TM .—"- ,. ... 6 1 d •:;..r..',•-•:.;i.".••%••1!''•'r-;..'-',.','':-`e:',..,)"',„.•‘!"'„7'' ';-e;'';'••„,,,,,, wuestuons ? ,'�� Y „:„....,„„„.„,„„„„_„..„,,,,,,,„,„„„..„:„,„.„,,,,„,:„,„„„,„ ,,,,,,,,„,„,...„,„,:___,„„,::,,,,„...,,,,,,,,,,,,,„„,„ ,, t i � f � ' s:fig G s , �°"„ -• -,f^"' '',� „y > «^vim `S '""e ,, ,..,. .._. 4�" j ,'„'•:7-...."'., o',Ii.:,;-..0-..t.;,.',:w .„..4.,:w Lc-:1 t- �� • r� " G` � = et a a N ° a „}r '�.° v a 8.4 '",^�7Z411,,+ � tro-sy�*i' ,,• ',•44y x"`'• A$ Ty` °-, osw ` 4 Its L F'S �} ,, '' •KL.3r*' fir e p 1":" .1; E,,r ,....,:.4,1,i.40,:ifit74.,:,,...:z.: z�_ _'�:� " ii 4i "�i :i°5'S a E px LAY IJ # ,'1 a"� 4e "r.Nt w '" sf , ' tip *''' ' -a°''q,"^w'o:' °„ y t :.do-, t t-.4;.7 , r'"' ` "t; .A ns,q{ 4^, ate.*r. aa,) �^ .X,. - - ,,J', I, ''' s: '+a -.`�-rm" A.. r '^�„"'^`..'sir" i .' • % N,w' ar 40"'kvq Jj F a <.^.., 3, "& , M • `�""'rn �'"�°"'1 v P $ °,,,V� .e1 yp!� ,,G t�', . ¢ ,, 4 X^y,�,,,,t, er z - A`r. , is fi w 4S s4 ' M#'-'" . .'.�;N, b te;�'} ---n.w.s°— , S`` -'",4 -p 8. `y.,e , Is - 4-_. t�,+",6x `5",x 7 ,L,Q .7' il ir }y^ � f a �'m .a ' gd CC April 25, 2024 To City of Huntington Beach STR Department: My name is Julie Nguyen STR-2023-0108, residing at 404 11th St. I protest against the HBTGBID new proprosal to increase from 4%to 6%of gross short-term roon rental. Thank you for taking my protest into consideration. Sincerely, Julie Nguyen • 901 Moore, Tania From: Sandy Schulz <admin@modelcitizenapparel.com> Sent: Tuesday, May 7, 2024 11:28 AM To: supplementalcomm@surfcity-hb.org Subject: '. Agenda item#28 Hello Mayor Van Der Mark and members of the City Council, Thank you,for taking the time to read,my email in regard to items#28: I own 2 businesses downtown and on the Board of Directors Huntington Beach Business Improvement District I have been a tenant downtown for 18 years. I have seen the city change so much over the years. The biggest change is in tourism and the number of events that bring consumers to HB. Tourism is vital to the success in our city. I support.Agenda#28..Visit Huntington Beach helps to promote all the wonderful things that HB has to offer. They play a vital role in filling the hotels which in turn brings visitors and sales to downtown. I am excited to see the implementation of the proposed improvements.Downtown and the beach amenities need some work in order sustain visitor satisfaction. Thank you for your time! Sandy Taylor Model Citizen 324 and 326 Main St 1 Moore, Tania From: Christine Kahn <creesbeachbungalow@gmail.com> Sent: Tuesday, May 7,2024 4:29 PM To: supplementalcomm@surfcity-hb.org Subject: Agenda Item#28 TBID Increase Agenda Item#28 TBID Increase Dear Mayor Van Der Mark and HB City Council Members, My name is Christine Kahn. I am a HB resident and small business owner through my hosted STR. I write this letter in opposition to agenda item#28 to increase.the TBID tax rate from 4%to 6%.This increase would make HB STRs less competitive to neighboring cities and adversely impact my small business income.To increase TBID revenue, I support expanding the existing unhosted.short term vacation rental permit program to include whole home vacation rentals in Huntington Beach, increasing supply of STR accommodations for visitors coming to HB.Whole home rentals will generate more TBID and.TOT revenue than just the current private room rentals. Let's support our local businesses and keep our city a flourishing,global destination for tourism and businesses. Don't raise the tax rate, but rather increase the supply of visitor accommodations to increase tax revenue and support local businesses. From my experience,STRs are also often booked by visiting extended family members to local HB residents-grandparents visiting their grandkids, relatives visiting for weddings, baby showers and celebrations, temporary housing for elderly parents before moving into long term care facilities. Let's keep STRs competitive so we can continue to support our community by not increasing the TBID tax rate. Sincerely, Christine Kahn . Huntington Beach Resident and STR Owner Cell: (714)584-5042 Email: creesbeachbungalow@gmail.com Sent from my iPhone . 1 From: JCristi McKniaht To: suoolementalcommCalsurfcity-hb.orq Subject Visit HB TBID modifying asspsament No.2024-13 Date: Thursday,May 2,2024 11:36:05 AM Dear Mayor and City Council, I'm writing in support of adopting Resolution No.2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As the Event Director for Surf City Still works restaurant and venue,tourism is an essential part of our business. It provides us with opportunities for growth, resilience and prosperity. When tourism does well,we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as transportation and restaurants.Thanks to Huntington Beach's strong tourism economy,with an estimated$2.2 million visitors in 2023,we as a restaurant venue were able to keep our doors open, keep our employees employed, and thrive. Over the next few years, Huntington Beach may.lose visitors to other OC and coastal California cities,who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share,the reduced visitors will lead to a decrease in our revenue as well as the City's TOT, sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it.With more visitors coming to Huntington Beach, our business will benefit from more foot traffic, more exposure and more potential customers that will help keep us open and our community/network growing all year-round.As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. We hope that the City Council will support the resolution of intent. Thank you and Sincerely, Kristi McKnight Best regards, Kristi McKnight Events and Community Director Surf City Still Works 16561Gemini Lane SUPPLEMENTAL Huntington Beach, CA 92647 COMMUNICATION 0:714-369-2348 C: 714-681-1629 5/7/2024 Ming Date: 28 (24-313) Agenda Item No.; Click here to learn More about Surf City Still works From: Darryl Santa To: suooiementaicommfi surfcity-hb.orq Subject Tourism BID ass'ccment modification. Date: Thursday,May 2,2024 5:19:20 PM Dear Mayor and City Council, I'm writing in support of adopting Resolution No.2024-13,which declares the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As President,CEO&Founder of Alpha&Omega Computer&Network Service, Inc., and a resident of Huntington Beach at 6571 Redgrove Cir,Huntington Beach,CA 92647,tourism is an essential part of our community. It provides us with opportunities for growth, resilience, and prosperity. When tourism thrives,we thrive too. Tourism doesn't only benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as transportation and other HB businesses.Thanks to Huntington Beach's robust tourism economy,with an estimated$2.2 million visitors in 2023, many small businesses were able to keep their doors open,retain employees,and thrive.Thriving businesses create new opportunities for my business to support their technology needs. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, all competing to attract visitors with new hotel properties, attractions,or upgrades. If Huntington Beach loses visitor industry market share,the reduced visitors will lead to a decrease in our revenue as well as the City's TOT,sales tax, and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it.With more visitors coming to Huntington Beach,our business will benefit from the increased local economy,networking opportunities,business relocations/start-ups,demand for IT services,and word-of-mouth marketing for the whole business community!As part of the proposal,funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like mine. We hope that the City Council will support the resolution of intent. Thank you, Darryl Santa President, CEO & Founder Alpha &Omega Computer& Network Services, Inc. Providing Excellence in IT Services Since 1999 5772 Bolsa Ave, Suite 100 Huntington Beach, CA 92649 714-964-6932 From: Kathryn Levassiur To: suoolementalcomm )surfcity-hb.orq Subject: Agenda Item#28 TBID Increase Date: Friday,May 3,2024 12:29:19 PM Attachments: Logo for Aoole Email.onq Dear Mayor Van Der Mark and HB City Council Members, My name is Kathryn Levassiur. I am an HB resident and founder of Huntington Beach STR Alliance, founded in 2017 now with 200+members and the volunteer Airbnb Community Leader for Orange County and Inland Empire Airbnb hosts with 600+members. I write this letter on behalf of all of our combined group members in opposition to agenda item#28 to increase the TBID tax rate from 4%to 6%. We do support more revenue for Visit Huntington Beach and the city. To increase TBID revenue,we support expanding the existing unhosted short term vacation rental permit program to include whole home vacation rentals in Huntington Beach. By allowing whole home vacation rental property owners in HB to apply and qualify for STR permits,will result in increased supply of short term rental accommodations for visitors coming to Huntington Beach. Whole home rentals will generate many more times TBID and TOT revenue than just the current private room rentals and the small amount of whole home rentals in Sunset Beach generate.Let's keep our current TBID rate competitive with neighboring cities,while supporting our local businesses and keeping our city vibrant. We all want Huntington Beach to flourish and we recognize HB is a global destination for tourism and businesses. Our TOT/TBID of 10/4%taxes are paid by visitors who stay here 30 nights or less so it might be easy to write off the increase as not a burden for local residents to pay.We do need to be mindful that visitors and their coveted tourism dollars can stay in cities like, Long Beach for 13%taxes,Newport Beach for 10%taxes,Fountain Valley for 9%taxes, or Costa Mesa for 8%tax rate,just to name a few. Don't raise the tax rate, but rather increase the supply of visitor accommodations to increase tax revenue and support local businesses. Sincerely, Kathryn Levassiur Huntington Beach Short-Term Rental Alliance Cell: 714.343.7931 Email: info@hbstra.org IWebsite: https://www.hbstra.org/ 4 # $ 4 From: Deni Mac To: suoalementalcommCa)surfcity-hb.orq Subject Resolution No.2024-13 Date: Saturday,May 4,2024 4:05:22 PM May 4,2024 Dear Mayor and City Council, I'm writing in support of adopting Resolution No.2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As a Board Member and Treasurer for the International Surfing Museum of Huntington Beach located at 411 Olive Avenue,tourism is an essential part of our business. It provides us with opportunities for growth, resilience and prosperity. When tourism does well,we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists;it also supports a range of ancillary services such as our museum as an educational destination. Our International Surfing Museum provides a historical journey of surfing and shares how it is now a sport in the Olympics.The museum is also considered a cultural hub for surf art. Additionally,we provide educational events and field trips for students and adults.Thanks to Huntington Beach's strong tourism economy,with an estimated$2.2 million visitors in 2023,we as a museum were able to keep our doors open, keep our employees employed, provide a Surf N Science hand-on evening event for adults and children,as well as, host educational tours during the year. Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities,who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share,the reduced visitors will lead to a decrease in our revenue as well as the City's TOT,sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it.With more visitors coming to Huntington Beach,our business will benefit from more foot traffic and more visitors that will help keep us open year-round.As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like our International Surfing Museum. We hope that the City Council will support the resolution of intent. Thank you. Denise MacAllister, EdD . 224 Crest Avenue Huntington Beach, California 92648 714-336-7789 SUPPLEMENTAL COMMUNICATION . 5/7/2024 Mang D t 28 (24-313) • Agenda Item No.; From: Nathan Fluellen To: 5uoolementalcomm4surfcity-hb.orq Subject resolution number is 23-1042 Date: Monday,May 6,2024 12:40:08 PM Good evening, Mayor and councilmembers, I'm Nathan Fluellen,founder of A Great Day in the Stoke. I'm here to speak in support of the resolution of intent to modify the Tourism BID because by bringing visitors to HB, our industry also brings an additional income source for local businesses, helping to keep their doors open and their workers employed not just during the busy peak visitor seasons, but year-round.A Great Day in the Stoke contracts many business in HB that are vital to our having had successful events for the past three years. The tourism industry is an essential part of Huntington Beach, an estimated 2.2 million non-OC residents visited in 2023.AGDITS is one of those contributing factors as 90%of our guests live outside of OC.We are part of HB's local economy, and add to the contribution of millions of dollars in taxes. I believe TBID funds must be used responsibly to promote and enhance the destination experience.Those funds are reinvested back into sales and marketing efforts for the destination,designed to increase visitation to HB, overnight stays at HB paid lodging properties and encourage more visitor spend in HB.That means more foot traffic for local businesses to help keep them open year-round,especially during the slow season.These all generate taxes for the city's general fund. As founder of A Great Day in the Stoke, I believe this modification will benefit not only us,the tourism BID and local businesses, but will also provide much needed funds to the city and make HB a better place. We hope that the City Council will support the resolution of intent. Thank you, Nathan Fluellen Founder Cell-615-566-2107 nathan@agreatdayinthestoke.com http://www.agreatdayinthestoke.com/ From: peni Mac To: suoplementalcommOsurfcity-hb.org Subject: Resolution No.2024-13 letter of support Date: Monday,May 6,2024 4:38:53 PM Attachment: Resolution No.2024-13.dooc May 4, 2024 Dear Mayor and City Council, I'm writing in support of adopting Resolution No. 2024-13, to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As a Board Member and Treasurer for the International Surfing Museum of Huntington Beach located at 411 Olive Avenue, tourism is an essential part of our business. It provides us with opportunities for growth, resilience and prosperity. When tourism does well, we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists; it also supports a range of ancillary services such as our museum as an educational destination. Our . International Surfing Museum provides a historical journey of surfing and shares how it is now a sport in the Olympics. The museum is also considered a cultural hub for surf art. Additionally, we provide educational events and field trips for students and adults. Thanks to Huntington Beach's strong tourism economy, with an estimated $2.2 million visitors in 2023, we as a museum were able to keep our doors open, keep our employees employed, provide a Surf N Science hand-on evening event for adults and children, as well as, host educational tours during the year. - - _ Over the next few years, Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties, new attractions or upgrades. If Huntington Beach loses visitor industry market share, the reduced visitors will lead to a decrease in our revenue as well as the City's TOT, sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach, our business will benefit from more foot traffic and more visitors that will help keep us open year-round. As part of the proposal, funds will also be spent on several improvements in Downtown Huntington Beach, leading to a better business environment for all of us. • I strongly believe this modification will benefit not only the tourism BID but also local businesses like our International Surfing Museum. We hope that the City Council will support the resolution of intent. Thank you. Denise MacAllister, EdD 224 Crest Avenue Huntington Beach, California 92648 714-336-7789 May4,2024 Dear Mayor and City Council, I'm writing in support of adopting Resolution No.2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. As a Board Member and Treasurer for the International Surfing Museum of Huntington Beach located at 411 Olive Avenue,tourism is an essential part of our business.It provides us with opportunities for growth,resilience and prosperity. When tourism does well,we do well too. Tourism doesn't just benefit lodging businesses directly catering to tourists;it also supports a range of ancillary services such as our museum as an educational destination. Our International Surfing Museum provides a historical journey of surfing and shares how it is now a sport in the Olympics.The museum is also considered a cultural hub for surf art.Additionally,we provide educational events and field trips for students and adults.Thanks to Huntington Beach's strong tourism economy,with an estimated$2.2 million visitors in 2023,we as a museum were able to keep our doors open,keep our employees employed,provide a Surf N Science hand-on evening event for adults and children,as well as,host educational tours during the year. Over the next few years,Huntington Beach may lose visitors to other OC and coastal California cities, who are all vying to attract visitors and will have new hotel properties,new attractions or upgrades.If Huntington Beach loses visitor industry market share,the reduced visitors will lead to a decrease in our revenue as well as the City's TOT,sales tax and parking revenue from visitors. I am delighted to learn about the proposed modification and believe our business will benefit from it. With more visitors coming to Huntington Beach,our business will benefit from more foot traffic and more visitors that will help keep us open year-round.As part of the proposal,funds will also be spent on several improvements in Downtown Huntington Beach,leading to a better business environment for all of us. I strongly believe this modification will benefit not only the tourism BID but also local businesses like our International Surfing Museum. • We hope that the City Council will support the resolution of intent. Thank you. Denise MacAllister,EdD 224 Crest Avenue Huntington Beach,California 92648 714-336-7789 From: Chris Eotinq To: suoolementalcomm(alsurfcity-hb.orq Subject Item#28 on tonight's agenda Date: Tuesday,May 7,2024 7:02:59 AM Dear Mayor and Council Members, I am reaching out to express my support for the resolution of intent to modify the Tourism Business Improvement District(BID).While I am not directly involved in the hotel/short-term rental industry, I play a part in the tourism sector.The success of tourism directly impacts my work as a local writer, and when tourism thrives,so does my business. I am aware that Visit Huntington Beach has collaborated with city staff to identify various downtown projects aimed at enhancing the visitor experience.When I delve into writing about the history of Huntington Beach,the downtown narrative is an integral part of the story.Therefore, improvements that contribute to the evolution of downtown bolster the narrative I convey. I am confident that this modification will not only benefit the Tourism BID but also the city as a whole, leading to increased sales tax revenue and other financial gains. It presents a mutually beneficial opportunity for all parties involved. I sincerely hope that the council will extend their support to this modification. Regards, • Chris Epting Author's site: www.chrisepting.com From: msteckmaCalvahoo.com To: 5uoolementalcommCa)surfcity-hb.orq Subject: Tourism Business Improvement District tax from 4%to 6% Date: Tuesday,May 7,.2024 8:42:46 AM Attachments: Anonymous Huntington Beach STR business.odf Hello, As legal operators are the minority to all STR operators in the city of Huntington Beach, I prefer to remain anonymous, but contribute important information for city council consideration. Thank you. Best regards, Michael Steckman Anonymous Huntington Beach STR business Tuesday, May 7tn Huntington Beach City Council Council Chambers: 2000 Main St. Huntington Beach SupplementalCommc Surfcity-hb.orq Dear Sir or Madam: It has been brought to our attention that Huntington Beach is proposing an increase of TBID from 4%to 6%. This hurts small business at the expense of large businesses and illegal STR operators. As of today,there are 195 issues STR permits from the city of Huntington Beach. Also,there are over 1300 active STR rental publications in the city of Huntington Beach such as 1000+ Airbnb.com, 300+VBRO, and 64 Booking.com. The city is encouraging permit violators. This proposed increase of 2%hurts all legal operators. Illegal operators enjoy not paying addition 2%. The loss to the city from the illegal operators is equal to 22%of legal operator taxes as of today. It is better to increase the violation fees for illegal operators so that the legal operators are not paying more when costs are high including property tax, and elevated expenses due to inflation and other factors. These current violation fees are insignificant in relation to illegal profits at legal operators' expense. Sincerely, Anonymous Huntington Beach STR business From: Vine Desai To: suoolementalcommCa�sur city-hb.orq Cc: Kelly Miller;Omark Holmes;Nicole Llido Subject SIMA TBID Letter Date: Monday,May 6,2024 5:15:09 PM Attachments: SIMA TBID Letter.odf On behalf of the Surf Industry Members Association,I'm submitting the attached letter in support of adopting Resolution No.2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. Best, Vipe Vipe Desai I Executive Director Surf Industry Members Association 949.243.6400 SUPPLEMENTAL • COMMUNICATION UNICATION 5/7/2024 Mew Date: 28(24-313) Agenda Item No.;.. . " . r ers Y., rtoms Monday May 6th, 2024 Dear Mayor and City Council, I'm writing in support of adopting Resolution No. 2024-13, to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. My name is Vipe Desai, and I serve as the Executive Director for the Surf Industry Members Association (SIMA), the national trade association representing various facets of the surf industry, including surf shops, board builders, brands, athletes, events, and media entities. While our involvement may not directly align with the hotel or short-term rental sectors, it's crucial to recognize that surf tourism is integral to the broader tourism industry. As surf tourism gains momentum globally, especially with the upcoming Olympics spotlighting the sport, Surf City USA has the opportunity to lead and leverage this growing interest to benefit local businesses. I'd like to share some pertinent statistics: • A recent report by the SFIA identifies surfing as the fastest-growing water sport in America. • An Australian study underscores surfing's contribution to global health benefits, estimated at a staggering $1 trillion. • According to the latest SFIA participation report, surfing participation has surged by 8%, surpassing the growth rate from 2022 to 2021 by 1%. When surf tourism flourishes, so does Surf City USA. Surfing constitutes a significant aspect of this city's identity, generating incremental revenue across various sectors such as parking, retail, restaurants, and hotels. It sustains employment and fortifies the local economy, making Huntington Beach a cherished destination for surfers worldwide. Given that tourism stands as a primary revenue stream for Visit Huntington Beach, it's imperative to ensure that efforts are directed toward attracting visitors to the city. By implementing a TBID modification, Visit Huntington Beach can continue its mission to bolster local businesses. SIMA has collaborated closely with Visit Huntington Beach and city staff to fund initiatives aimed at enhancing the visitor experience. This development is exceptionally promising as it not only elevates the area but also benefits local businesses and residents by increasing foot traffic and subsequent income. I firmly believe that this modification will not only bolster surf tourism but also provide a significant boon to local business owners. The city stands to gain from increased sales tax revenue and other economic benefits, rendering it a mutually beneficial endeavor. I hope for the City Council's support in this matter. Thank you for your attention and consideration. Best, Vipe Desai Executive Director Surf Industry Members Association 7171 Warner Ave. B13 I Huntington Beach, CA 92647 7.V1 T—'� 2000 Main Street, °tie Huntington Beach,CA 92648 - Q City of Huntington Beach - 2 APPROVED 7-0 oe'• 7Y AS AMENDED BY SUPPLEMENTAL COMMUNICATION File #: 23-1042 MEETING DATE: 4/16/2024 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Eric G. Parra, Interim City Manager VIA: Jennifer Villasenor, Director of Community Development PREPARED BY: Kriss Casanova, Economic Development Manager Subject: Adopt Resolution No. 2024-13 declaring the City's Intention to Modify the Management District Plan for the Huntington Beach Tourism Business Improvement District, conduct a Public Meeting on May 7, 2024, and set a Public Hearing date of June 4, 2024 Statement of Issue: In 2014, the Huntington Beach Tourism Business Improvement District (HBTBID) was formed pursuant to the California Property and Business Improvement District Law of 1994, which authorized special benefit assessment districts to raise funds within a specific geographic area. The purpose of the HBTBID is to increase overnight lodging sales with targeted marketing and promotions. Funding for the marketing programs and activities of the HBTBID are derived from assessments collected from lodging businesses operating within the City of Huntington Beach (City) boundaries. The current assessment rate is four percent (4%) of gross short-term lodging revenue from room rentals under 30 days. Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, serves as the HBTBID's Owners' Association and is responsible for implementing the programs identified in the Management District Plan (MDP). VHB is currently seeking to modify the MDP to increase the assessment rate from four percent (4%) to six percent (6%) of gross short-term lodging revenue. VHB requests that the City Council adopt a Resolution of Intention scheduling a public meeting on May 7, 2024 to receive comments on the proposed modification and a public hearing on June 4, 2024 to consider approval of the modification. Financial Impact: The proposed increase in the HBTBID assessment rate from 4% to 6% is estimated to generate an additional $3 million in revenue annually recorded in account 70900709.40500 that will be passed through to Visit Huntington Beach on behalf of the HBTBID, for a total of approximately $10M in City of Huntington Beach Page 1 of 5 Printed on 4/10/2024 powered**LegistarTM File #: 23-1042 MEETING DATE: 4/16/2024 annual pass-through revenue. Recommended Action: Adopt Resolution No. 2024-13, "A Resolution of the City Council of the City of Huntington Beach Declaring its Intention to Modify the Management District Plan of the Huntington Beach Tourism Business Improvement District (HBTBID)", which sets a public meeting date for May 7, 2024, and a public hearing date for June 4, 2024. Alternative Action(s): Do not approve the Resolution, and direct staff accordingly. Analysis: Background Promoting Huntington Beach as a desirable tourism destination and increasing awareness of available lodging options is a component of the City's continued economic vitality. In 2014, the original Hotel/Motel Business Improvement District was disbanded, and the HBTBID was formed pursuant to the California Property and Business Improvement District Law of 1994, which authorized special benefit assessment districts to raise funds within a specific geographic area. This approach has been used in other tourist destination communities throughout California to increase demand for room night sales at lodging businesses. The purpose of the HBTBID is to increase overnight room night sales with funding for marketing and public relations, group sales, and visitor services enhancements. Funding is derived from assessments and revenues collected from all lodging businesses, existing and in the future, available for public occupancy located within the City boundaries, which include Sunset Beach. HBTBID is comprised of 21 hotels/motels and approximately 200 short-term rentals (STRs). Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, was formed in 1989 as the official destination marketing organization for Huntington Beach and serves as the HBTBID Owners' Association. VHB is tasked with managing funds and implementing programs in accordance with the HBTBID Management District Plan (MDP). The City collects the assessment funds from the lodging businesses and then distributes the funds to VHB. VHB consists of approximately 17 staff members and 22 board members working to promote tourism to Huntington Beach and increase overnight stays in the City's hotels and short-term rentals. VHB is responsible for implementing the activities and services identified in the MDP and for submitting an annual report of activities to the City Council for approval. The current HBTBID term runs through June 30, 2028. The current assessment rate is four percent (4%) of gross room rental revenue for short-term stays. This assessment is charged to consumers separately from and in addition to the City's ten percent (10%) Transient Occupancy Tax (TOT). In 2019, the HBTBID was renewed, and the City Council simultaneously approved an assessment rate increase from three percent (3%) to four percent (4%), making the total guest checkout rate 14%. At the same time, the prior Memorandum of Understanding (MOU) between the City and VHB was City of Huntington Beach Page 2 of 5 Printed on 4/10/2024 powered46p LegistarTM File #: 23-1042 MEETING DATE: 4/16/2024 replaced with a Management Agreement that sets forth the duties and responsibilities of the City and VHB in administering and managing the funds. This prior MOU required the City to convey one percent (1%) of the City's TOT revenue to VHB. However, this TOT revenue sharing was eliminated in the 2019 Management Agreement, which required that 100% of TOT revenues would be retained by the City and that funding to VHB would remain unchanged with the one percent (1%) assessment rate increase. VHB is currently seeking to modify the MDP to increase the assessment rate from four percent (4%) of gross short-term lodging revenue to six percent (6%). In June 2023, VHB's Board of Directors approved the assessment increase to ensure that tourism promotion funding is adequate to market Surf City USA and remain competitive with other popular destinations that have dedicated more resources and are adding lodging properties/attractions annually. MDP Modification The California Property and Business Improvement District Law of 1994 allows the HBTBID's Owners' Association (VHB) to request that the City modify the MDP. To continue to ensure that tourism promotion funding is adequate to remain competitive with other popular destinations, VHB has provided a written request to the City Council to modify the assessment rate. The current HBTBID assessment rate from four percent (4%) of gross short-term lodging rental revenue to the proposed six percent (6%) would become effective July 1, 2024, or as soon as possible thereafter, and shall continue for the remaining duration of the HBTBID's term (through June 2028). No changes to the boundaries are proposed; however, some additional minor modifications have also been incorporated. A copy of the request letter and the MDP modified with red-line changes are included as Attachment 1 and Attachment 2 respectively. If approved, the increased assessment rate from 4% to 6% will generate an additional —$3 million per year (for a total of—$10 million per year) in HBTBID funding for programs and activities dedicated to increasing room rentals. The additional HBTBID funds will be used to implement new Sales & Marketing and Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level as follows: • Increase funding for destination sales and marketing programs, which will target key visitor markets, including markets that generate substantial overnight visitation to Huntington Beach and related visitor spending throughout the year, especially during non-peak seasons; and • Increase funding for Tourism Enhancement Programs that add new and/or repurposed projects to Huntington Beach's current brand offerings to increase year-round overnight visitation by improving the overall brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. If approved, the total guest charge will increase from 14% to 16% with 10% going to City TOT (which remains unchanged) and 6% to the HBTBID. As an indirect result of the modified HBTBID, it is anticipated that as occupancy rates and overall visitation numbers increase, so too will the City's TOT revenue which is currently budgeted at $16,500,000 or 5.8% of the City's total General Fund revenue for FY 2023/24. Greater occupancy rates will also generate an indirect increase in sales tax City of Huntington Beach Page 3 of 5 Printed on 4/10/2024 powered4,LegistarM File #: 23-1042 MEETING DATE: 4/16/2024 revenues from tourist spending. VHB petitioned their members for their support of the modification and thus far, they have received support from the major lodging business that represent over 85% in favor of the increased HBTBID assessment. HBTBID Modification Process The City Council is asked to adopt a Resolution of Intention (Attachment 3) which states the proposed modification to the MDP and schedules a duly noticed public hearing for June 4, 2024. As required by state law, a public hearing must be held to provide the opportunity for lodging businesses to protest the proposed modification. The schedule below outlines the process to modify the HBTBID. April 16, 2024 Resolution of Upon the written request by the HBTBID Owners' Association Intention (VHB), the City Council may adopt a Resolution of Intention which states the proposed modification to the HBTBID. VHB provided a written request for the proposed modification to the City dated August 29, 2023. Receipt of this written request allows the City Council to initiate proceedings for the modification of the MDP. April/ May 2024 Notice The City must mail a complete copy of the Resolution of Intention to each lodging business owner affected by the proposed modification at least 45 days prior to the public hearing. Mailing the notice begins a mandatory 45-day period in which owners may protest the modification. The City must mail a complete copy of the Resolution of Intention to each lodging business owner affected by the proposed modification at least ten (10) days before the public hearing and must publish the Resolution of Intention in a newspaper of general circulation in the City at least seven (7) days before the public hearing. May 7, 2024 Public Meeting Public meeting to allow public testimony on the modification of the HBTBID. No City Council action required. June 4, 2024 Public Hearing City Council shall hold a public hearing, not more than 90 days & Resolution of after the adoption of the Resolution of Intention, on the proposed Modification HBTBID MDP modifications. If City Council, following the public hearing, decides to modify the HBTBID, the City Council shall adopt a Resolution of Modification. The increase in the assessment rate would become effective July 1, 2024. Amendment to the Management Agreement The Management Agreement between the City and VHB describes the specific responsibilities of each party. Following the public hearing, if the City Council approves increasing the assessment rate, staff will recommend a concurrent amendment to the Management Agreement to define specific Tourism Enhancement Programs that both the City and VHB would agree to fund during the remainder of the HBTBID term. Some examples of Tourism Enhancement Programs that would help City of Huntington Beach Page 4 of 5 Printed on 4/10/2024 powered44 LegistarTM File #: 23-1042 MEETING DATE: 4/16/2024 increase overnight stays include wayfinding signs, infrastructure upgrades, public restroom enhancements, walkability improvements, connectivity and accessibility improvements, and lighting. Environmental Status: This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Strategic Plan Goal: Goal 1 - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth. For details, visit www.huntingtonbeachca.qov/strategicplan <http://www.huntingtonbeachca.qov/strategicplan>. Attachment(s): 1. VHB Request Letter 2. Modified Management District Plan (red-lined) 3. Modified Management District Plan (clean) • 4. 2024-13 Resolution of Intention 5. PowerPoint Presentation City of Huntington Beach Page 5 of 5 Printed on 4/10/2024 powered4i LegistarTM VISIT HUNTIN T N BEACH SURF CITY USA' August 29, 2023 Honorable Mayor and Councilmembers City of Huntington Beach 2000 Main Street, Huntington Beach, CA 92648 Re: Huntington Beach Tourism Business Improvement District Modification Honorable Mayor and Councilmembers: As the Huntington Beach Tourism Business Improvement District (HBTBID) Owners Association, Visit Huntington Beach (VHB) hereby requests modification of the HBTBID Management District Plan(Plan), pursuant to Streets and Highways Code §36635. Specifically, we are requesting a modification of the current Plan to take effect on July 1, 2024. The desired modification to the Plan will have the effect of increasing the HBTBID assessment rate,allowing VHB to remain competitive in promoting Huntington Beach as a visitor destination. The modification is also projected to result in increased visitor spending, which would increase Transient Occupancy Tax (TOT) and sales tax revenue for the City. In the current Plan, the HBTBID assessment rate is currently set at four percent (4%) of gross short-term room rental revenue. We request modifying the Plan to set the HBTBID assessment rate at six percent (6%) of gross short-term room rental revenue. In addition, we have worked with City Staff to make minor modifications to the Plan and will send you a marked-up copy. We ask that you consider a resolution of intention on this item at your April 16, 2024 meeting. If you have any questions regarding the HBTBID or the requested modification, please contact me at 714.969.3492, x205. Thank you, Kelly Miller President& CEO at Visit Huntington Beach Visit Huntington Beach 1155 5th Street,Ste.111,Huntington Beach,CA 92648 1714.969.3492 I info@surfcityusa.com 50 2019-2028 HUNTINGTON BEACH HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law of 1994,Streets and Highways Code section 36600 et seq. 51 CONTENTS Contents I. OVERVIEW 2 ---1 Formatted:Font:Garamond,12 pt II; BACKGROUND 4, -----'{Formatted:Font:Garamond,12 pt III; IMPETUS TO RENEW THE HBTBID 5 �- Formatted:Font:Garamond,12 pt IV.. _ACCOMPLISHMENTS 7�~\ (Formatted:Font:Garamond,12 pt V. BOU__N_D__A_RY 181518181510 's ` I Formatted:Font Garamond,12 pt VI; BUDGET AND SERVICES 191619191611 N•`\`,\. Formatted:Font:Garamond,12 pt �`,, � A. Annual Service Plan 191619191611,,\,\'\,,,\i Formatted:Font:Garamond,12 pt B. Annual Budget 211923231911,\\,''i \Formatted:Font:Garamond,12 pt C. California Constitutional Compliance__ 2119°3231911 \\\[Formatted:Font:Garamond,12 pt _California ..............._......_._._....__._......._....-.._-._...P-_.._..._......._.__...._..._-- • ��` Formatted:Font:Garamond,12 t ,D. Assessment 26212525211615,\\:\; ',� P\`,`\I Formatted:Font:Garamond,12 pt E. Penalties and Interest 262125252316 \\\ @''`\\ Formatted:Font:Garamond,12 pt ,F. Time and Manner for Collecting Assessments 27322626221', \\\''j ,727, `' i Formatted:Font:Garamond VII, GOVERNANCE 2823_,_ 2315 �.,,',`, n;', Formatted:Font:Garamond,12 pt ,A. Owners'Association 98'3-'7272318 k+i+,,. '`\ p. Brown Act and California Public Records Act Compliance 282327273318 "!�`�C Formatted:Font:Garamond „;1';';f Formatted:Font Garamond,12 pt ,C. Annual Report 282327272118 ey+.V\ ,;' 'I Formatted:Font Garamond APPENDIX 1—LAW 302528282519� ea:+,;'+`+t Formatted:Font:Garamond,12 pt APPENDIX 2—ASSESSED BUSINESSES 413639 3,1 a;;�+'+ ' t:+!,,i Formatted:Font:Garamond `+'''[Formatted:Font:Garamond,12 pt ' t'',' ',1 Formatted:Font:Garamond g 1 , W( ``Formatted:Font:Garamond,12 pt ;,N Formatted:Font:Garamond Prepared by i;g;'\,:;,;\,[Formatted:Font:Garamond,12 pt Civitas �i('�!'j:,i Formatted:Font:Garamond,12 pt W .1;. jit Formatted:Font:Garamond,12 pt CIVITAS , ;';,[Formatted:Font:Garamond `11.11 Formatted:Font:Garamond,12 pt PARTNERSHIPS•PROGRESS•PROSPERITY 'Id Formatted:Font:Garamond (800)999-7781 l ij�,;�Formatted:Font:Garamond,12 pt www.civitasadvisors.com IA Formatted:Font:Garamond \'t Formatted:Font:Garamond,12 pt \ Formatted:Font:Garamond,12 pt Formatted:Font:Garamond,12 pt • 52 I. OVERVIEW Developed by Visit Huntington Beach(VHB)and Huntington Beach lodging businesses,the renewed Huntington Beach Tourism Business Improvement District(HBTBID)is an assessment district that will continue to provide specific benefits to payors,by funding marketing and sales promotion efforts for assessed lodging businesses. The HBTBID was formed in 2014 for a five(5)year term;assessed lodging businesses now wish to renew itsubsequently renewed it for an additional nine(9)years and five(5)months. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach,as shown on the map in Section V. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales. Tourism Eenhancement Pprograms, &Public Relations and;Group Sales,and Visitor Services Enhancements,will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales. Budget: The total HBTBID annual assessment budget for each full year of operation is anticipated to be was approximately$5,000,000. The initial"year" of operation will asewas a partial year consisting of five(5)months,for which the anticipated assessment budget is-was approximately $2,083,333.Beginning AprilTuly 1, 2024, or as soon as possible thereafter,due to the modified assessment rate,the total HBTBID assessment budget for each full year of operation is anticipated to be approximately S10,000,000. The initial "year" of the modified assessment rate is a partial year consisting of (} months,for which the anticipated assessment budget is approximately S. Cost: The initial annual assessment rate is-was four percent(4%) of gross short-term room rental revenue. This Management District Plan(Plan)has been modified to increase • the assessment rate to six percent(6%)of gross short-term room rental revenue.The modified assessment rate is effective beginning on Aps'lJuly 1, 2024, or as soon as possible thereafter,and shall continue for the duration of the HBTBID's term.Based on the benefit received,assessments will not be collected on:stays of more than thirty (30) consecutive days;stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. Collection: The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies,penalties and interest)from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed HBTBID will havehas a nine(9)year and five(5)month life,beginning February 1,2019 through June 30,2028. Once per year,beginning on the anniversary of HBTBID renewal, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. The proposed time for implementation and HBTBID Management District Plan 2 October o 2018March 27,2024.2023 VISIT HUNTINGTON BEACH SURF CITY USA. 53 completion of this Management District Plan is February 1, 2019 through June 30, 2028.The modified assessment rate is set to take effect July 1,2024,or as soon as possible thereafter,and shall continue for the duration of the HBTBID's term.After the nine(9)year and five(5)month term,the HBTBID may be renewed for up to ten (10)years if lodging business owners support continuing the programs. Management Visit Huntington Beach will continue to serve as the HBTBID's Owners'Association. The Owners'Association is charged with managing funds and implementing programs in accordance with this Plan,and must provide annual reports to the City Council. HBTBID Management District Plan 3 March 27,2021.2023 VISIT HUNTINGTON BEACH SURF CITY USA. 54 II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood,California in 1989. Since then,over one hundred California destinations have followed suit. In recent years,other states have begun adopting the California model—Massachusetts Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita,Kansas and Newark,New Jersey used an existing business improvement district law to form a TBID. And, some cities,like Portland,Oregon and Memphis,Tennessee have utilized their home rule powers to create TBIDs without a state law. California's TBIDs collect- Number of Districts Operating in ively raise over $250 300 California million annually for local 120 10113 1 destination marketing. With 991oq 88--. - compet-itors raising their 100 - }„ budgets, and increasing 80 --- --- 61 rivalry for visitor dollars,it is 60 q l� important that Huntington ! 38 40 v_ 2529.... - hull : continue to invest in stable F 20 i programs. ��� oo0 Doti oo� oo� oo$ otio otia Q$b 61'� 'Y ti ti ti ti ti ti ti 1, ti TBIDs utilise the efficiencies of private sector operation in the market-based promotion of tourism districts.TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase room night sales. In California,TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government use; • TBIDs are customized to fit the needs of payors in each destination; • TBIDs allow for a wide range of services; • TBIDs are designed,created and governed by those who will pay the assessment;and • • TBIDs provide a stable,long-term funding source for tourism promotion. HBTBID Management District Plan 4 to Ocber2 n ni8March 27,2024,20/3 VISITti HUNTINGTON BEACH SURF CITY USA' 55 III. IMPETUS TO RENEW THE HBTBID The existing HBTBID was established in 2014 with an assessment rate of three percent (3%) on overnight lodging revenues in Huntington Beach.While the HBTBID has been successful,there is- was still opportunity for growth in overnight visitation and room night sales revenue,especially during non-peak periods. CurrentlyAt the time of HBTBID renewal in 2019,the City of Huntington Beach prees-provided VHB with funding from Transient Occupancy Tax revenues,equal to one percent (1%)of overnight lodging revenues in Huntington Beach,pursuant to an MOU between the City and VHB. The City and VHB intend to tcrminatehave terminated the MOU and entered into a new is the intent of VHB to develop a long-term agreement with the City that includes the City retaining 100%of all TOT revenues. The In the renewal of the HBTIBD,the assessment rate in the renewed HBTBID will bewas increased initially to four percent(4%)of gross short-term room rental revenue to ensure that tourism promotion funding «_ais not decreased during the term of the renewed HBTBID.To continue to ensure that tourism promotion funding is adequate to remain competitive with other popular destinations,this Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on:July 1. 2024, or as soon as possible thereafter, and shall continue through the duration of the HBTBID's term. There are several reasons to renew modify this Planthc HBTBID. The most compelling reasons are: 1. The Need to Maintain/Increase Competitiveness, Occupancy and Overall Visitation As the number of overnight accommodations grow in Orange County, as well as in competitive California cities and counties, it is crucial that Huntington Beach maintains and increases its competitiveness,occupancy levels and visitation from targeted markets. These goals can be accomplished by increasing the HBTBID assessment rate from three four percent (34%)to fear--sib:percent(46%),which will continue to generate approximately$510,000,000 per each full year in dedicated HBTBID funding for improvements and activities to increase room rentals for assessed lodging businesses located within the renewed modified HBTBID. Additional HBTBID funds will continue to be used to implement new Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level: 1. Increase funding for destination sales and marketing programs,which will target key visitor markets,including markets that generate substantial overnight visitation to Huntington Beach and related visitor spending throughout the year,especially during non-peak seasons;and 2. Increase funding for the innovative HBTBID Visitor Services Enhancements program that adds new and/or repurposed projects to Huntington Beach's current brand offerings,which will increase year around overnight visitation by improving the overall HBTBID brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. 2. An Opportunity for Increasing City Revenues As an indirect result of the renewed modified HBTBID,it is expected that as occupancy rates and overall visitation numbers increase,so too will the City's Transient Occupancy Tax revenue. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. 3. Stable Funding for Destination Marketing HBTBID Management District Plan 5 Oco«,2018March 27,2024,2023 VISIT HUNTINGTON BEACH SURF CITY USA' 56 The current HBTBID was formed pursuant to the Property and Business Improvement District Law of 1994.The law allows a district to be renewed for up to ten (10) years without the need for City Council's annual approval to continue levying the assessment. Stakeholders-haee elected to renew the HBTBID for a nine (9) year five (5) month term. The renewed term will provideprovides stable funding for destination marketing,visitor services enhancements,and management through June 30, 2028 and aligns the HBTBID's fiscal year to the City's fiscal year. This twill provide stable funding for destination marketing,visitor services enhancements,and management. Many of Huntington Beach's competitors are at or exceeding the level of funding available for destination marketing in Huntington Beach. The table below lists the funding raised by tourism Iimprovement districts for several other competitoraVHB's current comparative set. Location Amount Raised Assessment Rate TOT Total Guest Rate Charge Costa Mesa $3,'� 0,000 3%room revenue 8% 11% • {Formatted Table Laguna Beach $2,010,000 29'�room revenue 42% 11% Irvine $3,100,000 29i0 room revenue 8% 10°, cl n ozn nnn Anaheim 51700 2%room revenue 15% 17% Mammoth Lakes $10,800,000 1%room revenue 13% 14% Newport Beach $10,500,000 3°-o room revenue 10% 13°(0 Palm Springs S17,000,000 191,)room revenue 14% 15% San Diego S41,000,000 2%room revenue 10% 12% San Luis Obispo S10,400,000 1".'o room revenue 10% 11% Santa Barbara S10,700,000 2%room revenue 12% 14% Long Beach 1,000,000 3%room revenue 129%, 15% •--- (Formatted Table Torrance 090,000 1%room revenue 44% 12°. Santa Monica 009 $1.50 $5.25 per night 119 0 11%+$5.25 Oceanside $690,000 159 e room revenue 104 0 11.59 0 • (Formatted Table Santa Barbara $3 07099 $0.75 $1.00 per night 4444 11%+$1.00 Newport Beach $8,130,000 3%room revenue 109 0 13% Mammoth Lakea Dana Point San Luis Obispo *As of September_01 SAugust 2023 HBTBID Management District Plan 6 March 27.2024.2023 VISIT HUNTINGTON BEACH SURF CITY USA' 57 IV. ACCOMPLISHMENTS (2019—2023) Assessed Lodging Business Revenue Formatted:Font:Garamond Assessed lodging business revenue has increased 27%since the HBTBID assessment was increased _--[Formatted:Font:Garamond from 3%to 4%in 2019.Increases in assessed lodging business revenue by fiscal year are listed --[Formatted:Font:Garamond below: Fiscal % Note Year Increase FY 18-19 17% —(Formatted:Font:Garamond FY 19-20 (23%) jCovid hit in last quarter of fiscal ;—{Formatted:Font:Garamond year) FY 20-21 (6%1 __--{Formatted:Font:Garamond FY 21-22 41% Formatted:Font:Garamond FY 22-23 6% Formatted:Font:Garamond ----I Formatted:Font:Garamond Marketing&Public Relations 2019/2020 • To adapt to the pandemic shutdowns,VHB revised its marketing mix from a more international/national blend of effort towards a more hyper local(Los Angeles/Orange County)and regional CA drive market focus. • In partnership with the City of Huntington Beach,launched OneHB Chan<'_-'Safe and Masks L Surf City campaigns as part of its COVID-19 Recovery Plan. • Produced 360 virtual reality content and an Open jorBusinecr map as part of VHB's COVID- 19 Recovery Plan. • Participated in Virtual Trade Show: 10 pre-scheduled appointments from larger agencies and groups (AAA Northeast,HelmsBriscoe)to smaller agencies (Preferred ChoiceTravel TravelStore Pasadena)in partnership with the Hyatt Regency Huntington Beach Resort& • Date a Destination:Week-long event held by Gate 7 with the maior Australian travel companies in Australia(Helloworld,Flight Centre),destination reps,and virtual one-on-one meetings. • Promoted Huntington Beach during the 2019 Great PacificAirrhow as a VIP Chalet sponsor. ----{Formatted:Space After: 0 pt 2020/2021 HBTBID Management District Plan 7 October° 20Mh 27;2024.2023 VISIT if' 18arc NUNTINGTON BEACH SURF CITY USA' • 58 • • Continued OneHB Clean Safi and Masks Up SurfC1 0 pandemic safety campaigns. • Developed a Clean 6'Safe video series for each of the HB Collection properties that showcased their flexible meeting&events meeting spaces with 40°/a of its total square footage being outdoors and reiterated their commitment to ensuring a safe environment for their guests. • Incorporated Project Brief template to use for ideation and outlining all proposed large\THB projects. • Launched inaugural 12 Blocks of Cheer Campaign bringing together the four downtown resorts, Pacific City,and Downtown Main Street for a holiday campaign promoting local shops businesses,and events.40 participating businesses;62 events/photo ops:35 deals;3,000+ map views. • Participated in Visit California's Calling All Californians Co-op Marketing Program designed to jump start the California economy and drive responsible in-state travel.From August— November,VHB rolled out advertising on travel-focused digital platforms.Campaign generated more than 9.6M impressions,2,600 room nights with a gross booking value of 5555.9K. • Launched social media advertising campaign on Facebook and Pinterest targeting in-state travelers,complementing the Calling All Californians digital campaign.Garnered 3.2M impressions,over 82.7K video play-throughs,and over 15K clicks. • Media/PR efforts focused on garnering media coverage from hyper local outlets and influencers. • Authored 17 blogs with listicle themes(ex:Three Reasons to Travel to Huntington Beach During the Week). • Website Enhancements:Content Optimization and Navigation Architecture;SEO/SEM- Transitioned website to becoming ADA compliant. • Revamped paid social media program to align with the heavy audience shift to social media during the pandemic,leveraging the 24/7 cycle of the platforms to promote all relevant VHB marketing programs.Communities and engagement increased on Facebook and Instagram by 25%YoY. • Launched Datafy geo-location reporting dashboard tool which gains visitor and visitation insights from unique mobile device IDs that are observed while in destination. • Revised Visitor Guide with a 2020 pandemic lens and Rediscover You,Glow and Travel Responsibly themes. • Secured in-market agency representation in Canada,United Kingdom/Ireland,and Mexico. 790 total travel agents across all markets trained on selling Huntington Beach as a destination.103 one-on-one trade show appointments with key international travel agents and tour operators. • Launched CA STAR Visit CA Training Tool used to train groups of travel agents and tour operators via an online course. • Brand USA Agent Training in Mexico City(200+attendees) -[Formatted:Font:Garamond • Familiarization Tours with Air Canada.Discover North America(UK),British Airways (Uh-),and Virgin Holidays(UK).. Formatted:Font:Garamond • Updated FILM HB Landing pages.FILM HB Data:14 Film inquiries and 11 permitted shoots. {Formatted:Font:Garamond 2021/2022 Formatted:Indent:Left: 0.5", No bullets or numbering • In February 2021,launched inaugural.Show Your HB Love campaign to highlight various businesses throughout Huntington Beach. • Launched#BeHere Marketing Campaign encouraging visitation and overnight stays in an open outdoor,safer environment.The campaign's initial launch was during the summer and the HBTBID Management District Plan 8 October9 2n18 43 March 27,2024 VISIT HUNTINGTON BEACH SURF CITY USA' 59 second BeHere 2.0 flight leveraged Huntington Beach's elongated summer weather and events that extend well into the Fall,Winter and Spring seasons providing an opportunity for a second wave of summer leisure marketing-Summer 2.0—which overlays with the destination's needs period.Campaign garnered 15.2M impressions 32It clicks,reached 2.7M households and 122 cities.The booking component of the campaign generated 2.2M impressions.and 9,200 room nights with a gross booldng value of S2.4M. • Participated in Visit California's What If Co-op Marketing Program:Launched in Spring 2021,the multi-layered campaign helped to stimulate California's tourism economy and inspire domestic travel. • The 2021 IVSL US Open of Suring presented by Sbicedo Marketing Campaign spotlighted — {Formatted:Space After: 0 pt Huntington Beach to over 15 countries around the globe.The campaign garnered 5241.1K in media value,110M social media impressions.3.4Mavideo plays,1.3M live video views, --(Formatted:Font:Garamond 80K page views to landing page,and 1,000 pieces of media coverage media. • promoted Huntington Beach during the 2021 PacificAirsbowas a Chalet partner;hosting --(Formatted:Font:Garamond meeting planners and select VIP clients to promote HB as a meetings and events destination. Formatted:Font:Garamond • Social Media program resulted in Facebook and Instagram communities increasing by 15% �' — (Formatted:Font:Garamond YoY,and social media engagement levels surpassing VHB 15%o benchmark increase by as NI Formatted:Line spacing: At least 10.5 pt much as 135°-oy — Formatted:Font:(Default)Garamond,Font color:Black • „Launched Crowdriff-visual content marketing software for travel and hospitality brands to help source.manage,and publish user-generated content and short-form video from Formatted:Font:Garamond Huntington Beach locals and visitors. • Launched a TikTok page in October 2021. • Launched a Group Sales e-newsletter targeting meeting&event planners.Built a database of over 2,900 recipients with an open rate of 19.1%. • Launched a UGC(user generated content)program encouraging locals and visitors to share their content with us for use on our social platforms and other materials.Generated 869 pieces of content. • Launched digital advertising program that sells banner ad space on heavily trafficked pages of the VHB website,as well as paid opportunities on other VHB digital platforms (social media,e-newsletter,et al). • Launched robust,content-calendar-based blog program to build more relevant,SEO-& SEM-friendly content on the VHB website.60 blogs authored. • Launched a quarterly photoshoot program developed to fill in imagery needs for all of VHB's marketing initiatives.Quarterly Sessions:Outdoor Activities around the Pier,Action Sports,Laidback Luxury,and Select Service Hotel Properties. • • Partnered with four Orange County DMOs to form the Oranae County Coastal Tourism Alliance in response to the Orange County Coastal oil spill.Developed a website to serve as a central communication hub for elected officials,the City,media,tourism industry and the public to share the most current information and accurate.factual updates about the spill impacts and recovery. • In January 2022,launched quarterly Visitor Intercept Surveys.The data collected over calendar year 2022 will be included as insight in the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Hosted 13 journalists and 15 influencers,including"Travel Mom"influencer Emily haufman.Garnered national and local coverage including Forbes Magazine,Conde Nast Traveler,TustLuxe,CNN,Fox 11 News,Brides,and Orange County Register. • Produced SrnfCity USA®Uncovered a 20-episode series featuring unknown or"hidden" gems within Huntington Beach.The series targeted visitors and locals encouraging them to • explore. HBTBID Management District Plan 9 March 27,2024,2023 VISIT HUNTINGTON BEACH SURF CITY USA' • 60 • Revised Visitor Guide with the 2022 themes of Be Here and Clean&Safi+and inspiring messaging sensitive to travel in a(transitioning pandemic era. • FILM HB Data:45 Film inquiries and 63 permitted shoots. 2022/2023 • Launched#BeHere 3.0 Marketing Campaign encouraging visitation and overnight stays in an open,outdoor,safer environment.This iteration of the campaign targeted Huntington Beach lifestyle pillars of outdoors,wellness,family,active sports,dining,and shopping. Campaign garnered 22.7M impressions 46.7K clicks,outpacing performance by 47%.The booking component of the campaign generated 3,360 room nights. • In response to Board direction to amplify channels to help boost referral business to hotels for the remainder of the fiscal year,VHB extended its#BeHere Soft Season Campaign,a highly targeted media buy investment developed to generate leisure bookings,increase web traffic to SurfCityUSA.com,and increase awareness of the destination,hotel,and resort properties. The extended campaign generated an additional 8.24M total impressions arid 11.950 clicks to VHB's campaign landing page.The campaign surpassed performance projections by 53%and is tied to 2,917 unique hotel overnight visitors who saw VHB paid media ads up to 90 days before their stay. • Launched redesigned website.Website traffic increased 7%YoY with 1.3M sessions and . 2.1M Pageviews annually.Won four awards:Hermes Creative Award-Gold;DotComm- Gold Winner:Internet Advertising Competition-Best of Industry Winner;29thAnnual Communicator Awards-Award of Excellence. • Updated all of VI-IB's SEM-and SEO-related platforms that track search engine and website performance to be compliant with Google Analytics Version 4(GA4)platform update before the switch went live on July 1,2023. • Produced quarterly destination performance reports for the HB Collection hotel properties, customized with destination-level and hotel-level data per property. • Promoted the inaugural A Great Day in the Stoke,a surfing competition which is open to all but also happens to be the largest gathering of black surfers.The campaign secured 48 pieces of online media stories,4 broadcast interviews,and 3 print articles with a collective reach of 29.3M. • The 2022 ISA World Suring Games Marketing Campaign promoted Huntington Beach to over 2.1M LiveStream viewership from over 50 countries.The campaign,which received • exposure in the Opening Ceremony,the competition broadcast,and Closing Ceremony and Parade,garnered 2M social media impressions,132K daily interactions on ISA event page, and media coverage reaching 22K contacts. • The 2022 TP SL T am US Open of Surfing Marketing Campaign spotlighted Huntington Beach to over 7431\1 homes in 6 regions around the globe.The campaign garnered a collective 1.3K social media posts,38M social media impressions,2M VOD views,2.9M email impressions, 2.8M live video views,195K page views to landing page.and 1,000 pieces of media coverage media.VI-lB also hosted LA28 organizing committee members allowing them to see first- hand HB's capabilities as a top-tier sporting event location. • Promoted Huntington Beach during the 2022 PaclficAirrhouv as a Chalet partner hosting top Formatted:Font:Garamond meeting and event planners to showcase the destination as a unique place to meet.Along with Destination Analysts,produced 2022 PacificAirrbon'Economic Impact Rood that showed it generated a S70M total direct economic impact for Huntington Beach. • Secured the 2023 ISA Wald Para Surfing Championships to occur in November 2023 (FY 23- 24). • Updated VHB Brand Stvle Guide` _ _.�--�Formatted:Font:Garamond HBTBID Management District Plan 10 ber 9 8March 27,2024,2023 VISIT IF O Le HUNTINGTON BEACH SURF CITY USA' • 61 • Produced Huntington Beach Torrrz:rnr Summit hearing from experts in the tourism,action sports and entertainment industries,as well as economic forecasts for Huntington Beach and updates on regional infrastructure enhancements. • Designed new VHB trade show booth which debuted at IMEX 2022,a major trade show. • Produced the 2022 Resident Sentiment Report and the 2022 Economic Impact Rood. • Created a Major Events in HB Presentation deck highlighting all the benefits of hosting world- class sporting(and other)events in Huntington Beach. • Achieved goal of having 1,000 TikTok followers by fiscal year's end,unlocking additional backend features. • Launched ILevData Reporting Dashboard which tracks Short Term Vacation Rentals performance in the destination. • Launched Symphony Dashboard which pulls in all sources of economic,demographic, marketing,digital performance numbers into a central location for streamlined and customizable reporting. • Hosted 16 journalists and 7 influencers.Garnered national and local coverage includin• Forbes Magazine, hliator;Inside Hook,Daily Pilot,Travel Awaitr, USA TodaY.and Orange Connie Register. • Hosted the California Cup Golf Invitational 2023.The 4-day long event brought together 75 international travel trade buyers and California suppliers for HB experiences,business development,and industry networking.Each year,CA Cup Invitational gives back to a local charity through funds raised from international and CA auction prizes. • VHB was the only U.S.destination invited to participate in Air Canada,the Air Canada Foundation,and CAN(Canucks Autism Network)community's inaugural Autism Aviation Day,VHB welcomed over 50 individuals including children on the autism spectrum.The event provided an opportunity for youth on the autism spectrum(and their families)to rehearse the entire pre-flight process:the goal is to increase autism accessibility and encourage future travel. • Conducted 733 total travel agents across all markets trained on selling Huntington Beach as a destination:137 one-on-one trade show appointments with key international travel agents and tour operators;and 15 international familiarization tours. • Along with Destination Analysts,produced 2022 Pacific Airsho:v Economic Impact Report. • FILM HB Data:126 Film inquiries and 111 permitted shoots._ --(Formatted:Font color:Auto _._.__...__ 'y Formatted:Font:Garamond Sales ' Formatted:Indent:Left: 0.5",Space After: 0 pt, No FY 2019 to present: bullets or numbering • Conference/Meeting leads processed by VHB:2,900 • Definite contracted/booked room nights by VHB:176,055 • Economic Impact of Groups to Huntington Beach:S121 million Highlighted Group Sales Programs • Success of HB Collection Beachwides—Annual Future Proof Wealth Festival,inaugural year 2022,taking place every September with over 3.000 room nights to the destination per year within the four HB Collection Resorts and a beachfront event activation. • Participation in Intermediary Preferred programs including HelmsBriscoe ConferenceDirect,Prestige,and HPN Global which contributed to a substantial increase in --(Formatted:Font:Garamond lead development YOY. • Partnership with Orange County Sport Commission has generated new business opportunities for both our Select Service and Full-Service Hotel/Resort partners. HBTBID Management District Plan 11 Oco�,20 QMarch 27,2024,2023 HISIT HUNTINGTON BEACH SURF CITY USA. 62 • Visitor&Partner Services Visitor Interactions(luly 1,2019—Tune 30,2023) • Visitor Info Kiosk:51,644 • VHB Office:13,173 • Events: 10,017 • Mobile Bicycle Program:391 Event Information Booths • 55 events attended • New branded equipment purchased in 2022(10x10 pop-up canopy,cafe umbrella,flags,and tablecloths) .--rFormatted:Font:Garamond Local Pop-up Information Booths • Launched Summer of 2021 • Pacific City o Operated weekends only from 5/29/21-8/29/21 o 282 interactions • Bella Terra o Operated weekends only from 7/10/21-9/5/21 o 215 interactions Publication Distribution • Design and produce 18 different publications,including the official Huntington Beach Visitor Guide,Visitor Maps,Downtown HB and Sunset Beach Tear Off Maps,Downtown maps in foreign languages,Nightlife Guides,Activity Guides,Historical Walking Tours,and more. • 7,500+visitor guides handed out in person • 100.000+visitor guides distributed to local businesses • 150,000+visitor guides&rack brochures distributed to locations across the Western United (Formatted:Space After: 0 pt States Partner Services • Partner Education Series-Launched in 2021;to date the series has held 23 events(15 virtual,8 in-person)with 466 attendees. • Partner Outreach Program-Launched 2021;Partner Services staff have connected with HB businesses 946 times.Visitor Services staff have referred visitors to HB businesses 6,921 times. • CEO/Partner Newsletters-Over 50 e-newsletters have been sent since March 2020,with 1,166 newsletter contacts,a 41°-o average open rate(20%industry standard),and a 2.82°s average click rate(2.25%industry standard). Visitor Experiences • Meet irz HB Pass-Launched in 2022 for Group Meetings,this program provided deals at 13 local businesses for meeting attendees • VHB Guided Walking Tours-Launched in 2022,the Historical Downtown HB Walking Tour and the Surf History Walking Tour are led by VHB staff twice a month.Special tours HBTBID Management District Plan 12 • October 2018March 27.2024.2023 VISIT HUNTINGTON BEACH SURF CITY USA' 63 • are led by Chris Epting a few times a year.To date,222 tickets have been sold for the VHB led walking tours and the Chris Epting tours have sold out. • Digital Surf City USA Barrel Trail-Launched in Spring 2022 as a free digital pass with a phone app,this trail provided deals at 15 breweries and distilleries across HB and garnered 566 sign-ups. • Surf City USA Barel Trail Passport-Launched in March 2023 as a physical booklet,the new passport is sold online and in-store for S5.To date,254 passports have been sold and 2 people have completed the full trail and redeemed the grand prize,a gift card to an HB brewery/distillery of their choice. • Surf City USA Scavenger Hunt-Launched 2023,the Scavenger Hunt is a printed map targeted to families with young children.Participants redeem their completed Scavenger Hunt for a free coloring book at the Visitor Information Kiosk.In the first two months of the program,68 participants picked up their free coloring book. • Surf City USA Snapshots-Launched in May 2023,this digital trail leads visitors and residents to the best Instagrammable photo spots in HB. • Pedego Pilot Program—Pilot program launched summer of 2022,this mobile visitor information bicycle provided visitor info along the beach path and had 391 interactions over 3 months. • Major Visitor Information Kiosk Capital Improvements over the last several years. --{Formatted:Not Highlight —I Formatted:Font:Garamond Other Visitor Enhancement Programs Ni.Formatted:Not Highlight • Team Surf City USA Volunteer Program \"[Formatted:Font:Garamond • Launched Tune 2023 Formatted:Indent:Left: 0.5" • 8 volunteers enrolled in the program • Wavfinding Program ..---`f Formatted:Space.After: 0 pt • Completed 90%of installation and continue to conduct ongoing maintenance for installed HB branded Wayfinding Program signage throughout Huntington Beach. The Si million-plus comprehensive wayfinding system was created in partnership with the City of Huntington Beach after receiving community input. • The program remains ongoing with installation of remaining signs,including gateway signs,to take place over the coming years. • Installed and maintain digital information kiosk at the HB Pier as part of the Wayfinding Program. • Summer Beach Restrooms-Provide annual financial support for temporary summer beach restrooms and additional cleaning at the HB Pier.In 2023,VHB covered the entire cost for the program due to City budget cuts. • Downtown Transportation-Provided financial and marketing support for the launch of the Circuit electric car program in Downtown HB. Retail Program • In 2020,VHB launched a Surf City USA®retail program to help visitors promote the brand —{Formatted:Space After: 0 pt when they return home.Currently,the store produces 26 items for sale in-store,online,and at pop-up booths,with gross sales of S33k since inception.Sales increased 88°o in the last ear. Pandemic recovery initiatives • Open For Business Page and Map launched in March 2020 to help residents and visitors find needed resources. HBTBID Management District Plan 13 Oco 18March 27.2021,2023 VISITsi HUNTINGTON BEACH SUP.F CITY USA' 64 • OneHB Clean&Safe Pledge Digital Trail launched in October 2020 and garnered 787 pledges from HB businesses. Advocacy&Community Support • Provide resources and knowledge to support public policy initiatives that advance brand f—--{Formatted:Space After: 0 pt awareness and reputation of Huntington Beach • Provide annual funding support for the Downtown Nighttime Ambassador Program,which is now operated by the Downtown Business Improvement District. • VHB supports local events with community sponsorships for programs including the Wavmakers Pier Snowflakes,4'of July Parade,Blessing of the Waves,HB Surfing Walk of Fame,Cherry Blossom Festival,Great Day in the Stoke,Surf City Splash,Bolsa Chica Wetlands Conservancy,and Amigos de Bolsa Chica. • VHB staff volunteer on local committees and Boards of Directors,including the HB Chamber of Commerce,Downtown Business Improvement District,HB Surfing Walk of Fame,and the Alzheimer's Association Walk to End Alzheimer's. • VHB staff speak annually at local schools and non-profit organizations providing information about why tourism is a viable job industry and a strong economic support for the community. • Provide annual funding support for HB International Surfing Museum • VHB staff volunteer for local events and projects,such as the City of Huntington Beach's Community Service Day,the Waymaker's Youth Shelter Annual Gala,the Wetlands& Wildlife Care Center's Baby Shower,and Project Self Sufficiency's Thanksgiving and Holiday gift giving program. Formatted:Font:Garamond Administration Formatted:Indent:Left: 0.5",Space After: 0 pt, No Awards bullets or numbering • Named one of OC Business Journal's Best Places to Work in Orange County in 2023. —_..{Formatted:Space After: 0 pt • Earned FiredUp!Culture's 2022 Culture Achievement Award,which was awarded to nine organizations nationally across multiple industries who scored the highest on its Team Culture Index Survey. • Earned a"With Distinction"status with VHB's 2021 DAMP(Destination Management Accreditation Program)accreditation renewal through Destinations International.The"With Distinction"status has only been awarded to less than 15 organizations globally. Operations • Created new 2023-2026 Strategic Plan,to follow the 2020-2023 Strategic Plan. [Formatted:Space After: 0 pt • In 2019,relocated VHB office to ground level on 5"Street near PCH to provide better access for visitors.Created_Welcome Center and Surf City USA®retail store in new office lobby. • Continue to perform annual unqualified audits. • HBTBID Management District Plan 14 VISIT March 27,2024,2023 HUNTINGTON BEACH Ma CITY USA' 65 Assessed Lodging Business Revenue Assessed lodging businesses revenue has increased '15.6% since the I-IBTBID assessment was of of listed below. • FY 11 15 9.2% • FY 15 16 9.0% • FY 16 17 13.3% • FY 17 18 15.1%(Oct Jul) • Produced the destination's most successful PR activation in 2015 16,garnering national and international media exposure for the brand and numerous"best in the-travel industry"awards. I-Iuntington Beach's"Epic Big Board Ride"campaign resulted in: o Too GUINNESS WORLD RECORDS TM for"Largest surfboard"and"Most people riding a surfboard at once." o Tetal media coverage. • 2,017 total placements • 500 million impressions • $9.6 million in immediate earned media value • 1,306 broadcast segments • Conducted comprehensive brand perception research study in leisure and group markets in 2015 16,launched updated Surf City USA brand logo,leisure"Wonder"campaign and group 441—G ilk. 'on1'--c b.,q),ag -it - b > , display,collateral,and visitor information services. • Re designed a national award winning,mobile centric responsive website in 2016 17, social media integration and expansion initiative and transitioned entire media marketing strategy to a robust digital based destination marketing program. The result? Qualified visitor user ,.cd 72o. r...,„., 613 a6 c;.. 2n11 1 C o 1 117 816 in 20 7 1 4 .-1«h_..oaring h..te overnight stay market demand and revenue increases(see above hotel data). • Granted highly valued official verification on three major social media platforms (Facebook, Twitter;Instagam). , adding paid social media posting in 2017 18.Results include progressive increases in followers and engagement from 21% 51%across these three key social media channels annually. businesses to help their sales initiatives. • Launched Huntington Beach Welcomes You to Dr-cmn and Do campaign that includes videos and print collateral,as well as video promotion with Matador Media to reach 13 million adventure millennial travelers. • Hosted over 300 journalists from top domestic and international markets from 2014 15 to 2017 18. • Generated over$27 million in earned media value and 620 million impressions across top travel publications(online,print and broadcast)from 2011 15 to present. • Received numerous national and international travel industry marketing and communications awards--om _,_„ US Travel Association, Hospitality SSales and 4srleet g- sociation International,Visit California and the National Web Marketing Association. HBTBID Management District Plan 15 March 27,2021,2023ir VISIT HUNTINGTON BEACH SURF CITY USA. • 66 media value,as well as produced a lasting community attraction,asset and point of pride. m, r cd - .�.I..ic hclpcd `HB—i desig -- millilion doliiar inns community-widc comprehensive wayfmding system. The signs are currcptly being installed throughout Huntington Beach. Sales FY 4.011 15 to present. • Conference/Meeting leads-preceraed by VHB:1,832 • Definite contracted/booked room nights by VHB:111,270 • Highlighted Group Sales Programs o batrnch of I1B-Coffeetiox promoting multiple hotels in Huntington Beach with their wall.ability aspect to groups that would traditional only consider a convention center. o 2016 Por:rchc Cars North!'lmcrica is largest group ever booked into Huntington Beach with 3,700 contracted room nights at assessed businesses and Economic Impact of $1.1 million. o 2018 Porsehe Cars North America in negotiations to hold multiple programs in Huntington Beach at a.,sensed businesses for a total of 1,100 room nights in 2019 Service • 2016 Destinations International WOW Award for Surf City USA Ambassador Program. • 2018 Orange County Certified Tourism Ambassador(CTA)Company of the Year. • Launched Nighttime Ambassador Program to aid the Huntington Beach Police Department on busy evenings in downtown during Spring Break and summer. • Took over administration of Daytime Ambassador Program to provide 7 days a week roving hospitality services to guests in downtown Huntington Beach. • • Expanded Surf City USA Shuttle from events only to include summer weekends. Summer weekend Coastal Loop shuttle passenger count by year: o 2015:518 passengers o 2016:955 passengers • 0 2017:639 passengers ., 2018:1,273 passengers(with one more weekend to go) • Since 2011,hosted 10 Partner Information Meetings each year for a total of 110 businesses. • In 2017, launched complimentary Event Information Booth service to provide visitor information to attendees at 20 events,including the Fastpitch Softball Tournament in Central Surf City USA Volunteer Program to help staff Event Information Booths. • r 2n1 kecaiel e.]a.e- et:PC H Clea.�.ae T has roadside cleanup focuses ee e - b . o 2017&2018:268 volunteers picked up 1,130 pounds of trash. • Developed guidelines for new Community Events Sponsorship Initiative to launch 2018 19. HBTBID Management District Plan 4. 16 VISIT n October�,2018March 27,2024,2023 HUNTINGTON BEACH SU5C COY USA' 67 • Implemented the CRA1 (Customer Relationship Management) system for better tracking of assessed business data. • Annually send at least one VHB employee to the Robert Mayer Huntington Bcach Leadership Academy program. • Implemented Blackbaud software for improved accounting,budgeting,and transparency. • Established a Reserve Policy consistent with industry practices. • Unqualified audits each year from 2011 15 to present. • HBTBID Management District Plan 17 March 27,2024,2023 a VISIT HUNTINGTON BEACH SURF CITY USA' 68 V. BOUNDARY The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Huntington Beach. Lodging business means:any structure,or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling,lodging or sleeping purposes,and includes any hotel,inn,tourist home or house,motel,studio hotel,bachelor hotel,lodging house,rooming house, at a fixed location,or other similar structure or portion thereof. The boundary;es-is shown in the map below„currently includes twenty three(23)lodging businesses. A complete listing of lodging businesses within the renewed HBTBID can be found in Appendix 2. GARO,J'EI�GROVE FREEW$ 44- < \GARDEN fiROVE FREED`[, 405 F CITY OF . -HUNTINGTON BEACH, 3 , � L• --7 o %Leo 4Sr / PACIFIC 0'3E-AN HBTBID Management District Plan 18 • March 27,2024,2023 VISIT HUNTINGTON BEACH SURF CITY USA• 69 VI. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged,and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HBTBID funds are marketing,sales and tourism enhancement programs available only to assessed lodging businesses. A service plan budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual budget will be developed and approved by VHB. The table below illustrates the initial annual budget allocations. The total initial full year budget was anticipated to be is $5,000,000. Fiscal year 2019 covereds the five (5) month period from February to June 2019, resulting in a lower anticipated budget for the first five(5)months of HBTBID operation. The table below illustrates the initial annual budget allocations reflecting the modified assessment rate. Beginning AirilJuly 1,2024,or as soon as possible thereafter, due to the modified assessment rate the total initial full year assessment budget is anticipated to be approximately$10,000,000.Fiscal year 2023 2021 covers the three(3)month period from April to Tunc 2021,resulting in a lower budget for the first three(3)months following the assessment rate modification. 2024 VHB PROPOSED MODIFIED BUDGET:Annual Assessment Budget$10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2%increase in TBID assessments,VHB forecasts its budget to be approximately$10M.This amount is reflected below. M amerced pragro,,fendedou 500 assmmems must at approvedbytMves Board dunes the amoral budget process and mug adhere to date tassewamxg these assedmem eapendexo CerdinMensy/Reear,e City Admin Pee $500,000(MI $100,000(1%) Administration `" t 1i -xr-t • 51,900,000(S9%) s 11 j,l Sales&Marketing ••- • 5g,s00A00(65%) Tourism Enhancement "^. e• • a Programs ^-..,,, • $1,000,000(10%) "' -_..®... • Includes Destination Product Development(DPD)and Visitor services Enhancements(VSE)Programs from 2019-2024 MOP HBTBID Management District Plan VISIT c 19 ' O Ober°a 8March 27,2021,2023 IFHUNTINGTON BEACH SURF CITY USA' • 70 2024 VHB PROPOSED MODIFIED BUDGET:Annual Assessment Budget$10,000,000*'. ”VHB's FY23-24 budget is approximately57 million.With a 2%increase in TBID assessments,The City forecasts VHB's FY 24-25 budget to be approximately$10.4M.This amount is reflected below. M proposed programs funded byM MD assessments must be approved by the VHB Board during the annual budget process and must adhere to state laws governing these assessment expenditures. Contingence/Reserve CityAdmin Fee 020,000(5%) 5104,000 µ%i r Administration 1$4414s, a 51,97u,000(19%) ; ° sales&Marketing Tourism Enhancement Programs • Includes Destination Product Development(DP0)and VisitorservicesEnhancements(VSE)Programs from 2019-2024 MOP • A {Formatted:Left Annual Assessment Budget - $10,000,000 Contingency/ Reserve,$500,000, City Admin.Fee, 5% $100,000,1% Tourism Enhancements, Programs, +•° $1,000,000,10% Administration, $1,900,000,19% Sales&Marketing, $6,500,000,65% Although actual revenues will fluctuate due to market conditions,the proportional allocations of the*--------[Formatted:No widow/orphan control budget shall remain the same. However,the City and the VHB Board shall have the authority to re-allocate up to fifteen percent (15%) of the budget allocation within the budgeted categories per year and submitted through the annual reportof the total budget per year. For example, if there is increased market competition S150,000 from the Tourism Enhancement Programs budget may be reallocated to the Sales & Marketing budget,staying within the authorized 15%reallocation limit. In the event of unforeseeable emergencies or unavoidable catastrophes that interrupt the expected course of business,by agreement ofjboth the VHB Board and the City Manager(or-his/her designee),the Cittr and VHB shall_havethe `--{Formatted:Not Highlight authority to adjust budget categories by more than fifteen percent (15%) of the budget allocation ---{Formatted:Not Highlight within the budgeted categories.For example,in the event of a pandemic resulting in an unprecedented decline in tourism,S3,000,000 from the Sales&Marketing budget may be reallocated to the Tourism Enhancement Programs budget to address unforeseen circumstances, exceeding 15% as allowed under the exceptional circumstances.At least annually,VHB will meet with the City Manager and or Formatted:Not Highlight designated staff to review accomplishments and funding priorities for the following year. A HBTBID Management District Plan +,` V(SIT 20 Oco�z018March 27,2024,2023 ft HUNTINGTON ifBEACH SURF CITY USA' 71 • description of the proposed improvements and activities for the initial year of operation is below. The ' same activities are proposed for subsequent years. In the event of a legal challenge against the HBTBID,any and all assessment funds may be used for the costs of defending the HBTBID. Each budget category includes all costs related to providing that service,in accordance with Generally Accepted Accounting Procedures (GAAP).For example,the Tourism Enhancement ProgramsSales & Marketing budget includes the cost of staff time dedicated to overseeing and implementing the tourism enhanccmcntsales and marketing programs.Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget.The costs of an individual staff member may be allocated to multiple budget categories, as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the VHB on an as-needed basis. Sales&Marketing The Tourism Enhancement Program will promote and provide activities and improvement. to assessed lodging bu.inesses through the implementation of two sub programs: ales and marketing and visitor services enhancement.. A summary of each sub program is provided below. Sales&AI s ketimg f------_f Formatted:Indent:Left: 0" The sales and marketing program will promote assessed lodging businesses as tourist,meeting,and t event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses,and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: >--1 Formatted:Font:Garamond —Increased advertising and promotional programs in print.online.social media.and television '-'1 Formatted:Normal taraeted at potential visitors to drive overnight visitation and room sales; • jnerca,ed ad v c.ti.in ,.rid anaetis,nal ialn ' iii t,e,alin..,-s,cial nkedia,...rid tcLvisikn to ctt,d'�„ Formatted:Font:Garamond , Formatted:List Paragraph,Indent:Left: -0.25",Bulleted+ • f Level:1+Aligned at: 0.25"+Indent at: 0.5" �Website enhancements and updates; Formatted:List Paragraph,Bulleted+Level:1+Aligned a 0.25"+Indent at: 0.5" •`..__............... — .._.-.-.._........_.... — `\..` r Forma Font: amon • Strategic advertisingand marketingagency support; ( tted•F t•Garamond g y ' '.f Formatted:Font:Garamond • Contract with third party marketing and sales partners; ,'\, Formatted:List Paragraph,Bulleted+Level:1+Aligned a • Public relations,sales blitzes,missions,and calls; ,' 0.25"+Indent at: 0.5",Widow/Orphan control • Familiarization tours targeting key decision makers; Formatted:List Paragraph,Bulleted+Level:1+Aligned a • Preparation and production of collateral promotional materials such as visitor guides, o.zs"+Indent at: 0.5" - brochures,flyers,and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists,leisure visitors, and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors;and ,{Formatted:Font:Garamond,Bold,Not Highlight • Cooperation with local agencies and film commission programs that attract overnight visitors. / {Formatted:Normal, No bullets or numbering / i�Formatted:Font:Garamond,Not Highlight ourism Enh ancement Programs.. .............. ._.._..- — --` /,i Formatted:Font:Garamond,Not Highlight The Tourism Enhancement Program(TEP)will enhance the brand image and ,visitor experience while �'_-. Formatted:Font:Garamond,Not Highlight in destination, providing a benefit for guests of assessed lodging businesses by encouraging an I Formatted:Font:Garamond,Not Highlight HBTBID Management District Plan 21 Oco 18March 27,2024,2023 ' HUN T HTIPIGTON 0 BEACH SURF CITY USA' 72 increased length of stay and appealing to target niche markets based on demographic and current travel data.An incidental benefit also improves the resident experience throughout the year. e x�{Formatted:Font:Garamond h'iri/or Services Enhancements [Formatted:Normal, No bullets or numbering The Visitor Services Enhancements (VSE) programTEP will provide funding for programs and `(Formatted:Indent:Left: 0" initiatives in destinations in accordance with VHB's current strategic plan.VHB will work with the City Manager and designated city staff to identify and prioritize any key public-private programs and initiatives, as detailed in the Management Agreement with the City and VHB, to be funded and implemented following._subject t approval of the VHB budget by the VHB Board of Directors and approval of the City budget by City Council.based on criteria to be dcvclopcd by VI-IB and reviewed and approved with the City.The focus for the VSE TEP program will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach. VSE TEP masvmtty include the following programs which are designed to drive increased overnight visitation and room sales to assessed lodging businesses: • —Sppport of a long-term ambassador and/or security program with trained staff that`-y' Formatted:Font:Garamond supplement the current level of police presence to improve the overall destination experience Formatted:List Paragraph,Bulleted+Level:1+Aligned a and encourage overnight visitation or a fulltime dedicated police officer to ensure tourism 0.25"+Indent at: 0.5" feitietN • Welcome center, event-based visitor information booths and visitor information kiosk improvements including fiCW current technology-driven visitor information enhancements; • Support of Signature Events that provide a proven positive economic impact and extend Surf City USA's brand reach,including programs and events that lead up to the LA28 Olympic games: • Support of other communitA events and programs that uphold the authenticity of the Surf — {Formatted:Font:Garamond City USA experience and create a greater sense of community for residents; • Team Surf City USA Volunteer Program to help community members become experienced event volunteers; o Pedestrian improvements linking the hotels and Downtown; •---{Formatted: No bullets or numbering • Brand-centric visitor services training program for both public and private sector staff;and `y--{Formatted:Font:Garamond • A—Support of a Ttrolley or transportation program connecting hotels to downtown Formatted:List Paragraph,Bulleted+Level:1+Aligned a Huntington Beach,The Pier,or other attractions:and 0.25"+Indent at: 0.5" • Development of activities and/or products designed to keep visitors in the destination for an increased duration of time,including Historical Walking Tours,Scavenger Hunt,Barrel Trail, Surf City USA Snapshots,and other activities. chc� Formatted:Not Highlight • Additional future TEP programs may include destination product development programs to- ' {Formatted:Font:Garamond provide support for public-private capital improvement projects in partnership with the City of \\{Formatted:Normal Huntington Beach.If such a project is proposed,VHB will work collaboratively with the City Manager l Formatted: No bullets or numbering and Public Works.Such projects,which are all aimed to attract overnight visitors,may include: Formatted:Font:Garamond Formatted:List Paragraph,Bulleted+Level:2+Aligned a Staf City'US 1 Destination Protect Dcrc/opucnt \ 0.25"+Indent at: 0.5" The Destination Product Development(DPD)program will provide funding to assist in the •-. Formatted:List Paragraph,Left,Indent:Left: 0", building or financing of well vetted capital improvement projects which attract overnight Widow/Orphan control visitors to assessed businesses.The program costs may be allocated up to ten percent Formatted:List Paragraph,Left,Indent:Left: 0" .(10.0°,>)of the annual budge. develop specific DPD funding criteria and an award process.The City working with VHB, shall have equal input to make recommendations to the Vl-IB Board for final project approval.Both the funding and awarding criteria will be developed in collaboration with the HBTBID Management District Plan 22 o Ober 9,20118March 27,2024,2023 VISIT Oc HUNTINGTON BEACH MT CITY USA' 73 City Manager's office and other kcy community stakeholder groups.These DPD projects may include. Destination product development projects to provide support for public private capital improvement projects in partnership with the City of Huntington Beach.If a new project is b accordance with the TBID Management Agreement terms.Such projects may include: • Additional wayfinding signage system enhancements including gates rays and parking signage; •—Pedestrian improvements linking the beachfront hotels, Pacific City, Main Street, and 5th Street: Comprehensive and integrated vayfind ng signage system enhancements including signage to parking decks and lots; • t•,ti -f Formatted:Font:Garamond —Art and cultural improvements, such as a public art trail Formatted:List Paragraph,Left,Bulleted+Level:2+ overnight visitors; Aligned at: 0.25"+Indent at: 0.5",Widow/Orphan control • Formatted:Font:Garamond • Gateway enhancements including on Pacific Coast Highway,to attract overnight visitors; Formatted:List Paragraph,Bulleted+Level:2+Aligned a .. 0.25"+Indent at: 0.5" •--Bicycle and surfboard storage improvements; {Formatted:Font:Garamond • • ,Enhancements to wetlands experiences which attract overnight visitors, such as the Bolsa•-•>-[Formatted:Font:Garamond Chica Ecological Reserve and the Huntington Beach Wetlands(between Newland Street and Formatted:List Paragraph,Bulleted+Level:1+Aligned a the Santa Ana River)that expose visitors to the value of the vital ecosystems; 0.25"+Indent at: 0.5" • Improvements to existing parks and sports facilities utilized by overnight visitors; • Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year round and attract overnight visitors; • Partnership with the City on mutually agreed upon projects that promote overnight visitor stays to Huntington Beach. Examples may include:Improvements to pier plaza,existing parks and sports facilities,Huntington Beach International Surfing Museum, the Surfing Walk of Fame, and creation of a new live music venue, and/or entertainment complex:Huntington Beach International Surfing Museum,and summer beach restroom porter cleaning assistance; • Destination product development research--and master lannin., and desi i of approved -- {Formatted:Font:Garamond destination product development projects and; Formatted:Font:Garamond e — Formatted:Font:Garamond 0-Infrastructure improvements that enhance Huntington Beach's competitive position to attract Formatted:List Paragraph,Bulleted+Level:1+Aligned a desirable special events year-round (e.g., improvements to beach restrooms, parkin• 0.25"+Indent at: 0.5" structures/lots, lighting, and summer beach restroom porter cleaning),Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year round, and attract additional overnight visitors from niche emerging markets,for example the cycling,physically disabled,and neurodivergent markets;and • Improvements to the City's downtown parking deck that make the overnight visitor experience more desirable. • Administration The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. HBTBID Management District Plan VISIT 23 October18March 27,2021,2023 l` IFNUNTINGTON BEACH SURF CRY USA. 74 Contingency/Reserve The budget includes a contingency line item to account for uncollected assessments,if any. If there are contingency funds collected,they may be held in a reserve fund or utilized for other program, administration,or renewal costs at the discretion of the VHB Board. Policies relating to contributions to the reserve fund,the target amount of the reserve fund,and expenditure of monies from the reserve fund shall be set by the VHB Board. • City Administration Fee The City of Huntington Beach shall retain a fee equal to one percent(1%)of the amount of assessment collected to cover its costs of collection and administration. B. Annual Budget The total nine(9)year and five(5)month improvement and service plan budget is-was projected at approximately $5,000,000 annually, or $47,083,333 cumulatively through 2028. Beginning on July 1, 2024, or as soon as possible thereafter, due to the modified assessment rate, the total HBTBID assessment budget for each subsequent full year of operation is projected to be approximately $10,000,000, or approximately S71,901,015 cumulatively through 2028. The initial "year" of the modified assessment rate is a partial vcar consisting of 0 months, for which the This amount may fluctuate as sales and revenue increase or decrease at assessed lodging businesses,but is not expected to change significantly over the term. C. California Constitutional Compliance The HBTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term`assessments'to levies on real property.l Rather, the HBTBID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. • Two of these exceptions apply to the HBTBID, a "specific benefit" and a "specific government service."Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, "a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged,and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."2 The activities and improvements in this Plan are designed to provide targeted benefits directly to assessed lodging businesses,and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general,or parcels of land,but rather to serve the specific lodging businesses within the HBTBID.The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HBTBID, and are narrowly tailored. HBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in HBTBID programs, or to directly generate sales for non-assessed businesses. The 1 Jarvis v. the City of San Diego 72 Cal App.4th 230 2 Cal.Const.art XIII C§ 1(e)(1) HBTBID Management District Plan 24 Oco 118March 27.2024,2023 VISIT HUNTINGTUN BEACH S°f:F COY USA' 75 activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. The assessment imposed by this HBTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the HBTBID assessment,with tourism enhancement programs promoting lodging businesses paying the HBTBID assessment.The tourism enhancement programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the tourism enhancement programs that specifically benefit the assessed lodging businesses,the administration and contingency/reserve programs also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the HBTBID,in providing specific benefits to payors,may produce incidental benefits to non-paying businesses,the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that,"A specific benefit is not excluded from classification as a`specific benefit'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor."3 2. Specific Government Service The assessment may also be urili7ed to provide,"a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product"4 The legislature has recognized that marketing and promotions services like those to be provided by the HBTBID are government services within the meaning of Proposition 265. Further,the legislature has determined that "a specific government service is not excluded from classification as a `specific government service'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor."6 3. Reasonable Cost HBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VHB,and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from HBTBID-funded activities,be featured in lodging-specific advertising campaigns,and benefit from other HBTBID-funded programs. Non-assessed lodging businesses will not receive these,nor any other,HBTBID-funded services and benefits. The HBTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however,possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-HBTBID funds. HBTBID funds shall only be spent to benefit the assessed businesses,and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. 3 Government Code§53758(a) 4 Cal.Const.art XIII C§ 1(e)(2) 5 Government Code§53758(b) 6 Government Code§53758(b) HBTBID Management District Plan 25 O ct 18March 27,2021,2023 J VISIT HUN TIBGTOFI BEACH SURF CITY USA' 76 D. Assessment The initial annual assessment rate is-was four percent(4%)of gross short-term room rental revenue. This Plan has been modified to increase the assessment rate to six percent(6%) of gross short-term room rental revenue.The modified assessment rate is effective beginning on Ap illuly 1,2024,or as soon as possible thereafter,and shall remain in effect until the end of the HBTBID's term.-Based on the benefit received,assessments will not be collected on:stays of more than thirty(30) consecutive days;stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. The term"gross room rental revenue"as used herein means: the consideration charged,whether or not received,for the occupancy of space in a lodging business valued in money,whether to be received in money,goods,labor or otherwise,including all receipts,cash,credits and property and services of any kind or nature,without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal,state or local taxes collected,including but not limited to transient occupancy . taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However,the assessed lodging business may,at its discretion,pass the assessment on to transients. The amount of assessment,if passed on to each transient,shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes,and each transient shall receive a receipt for payment from the business. If the HBTBID assessment is identified separately it shall be disclosed as the "HBTBID Assessment." As an alternative, the disclosure may include the amount of the HBTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act,Government Code§13995 et seq.and shall be disclosed as the"Tourism Assessment." The assessment is imposed solely upon,and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest The HBTBID shall reimburse the City of Huntington Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent-HBTBID assessment are sought to be recovered in the same collection action by the City,the HBTBID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent(10%)of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency: Any lodging business that fails to meet any delinquent remittance on or before a period of thirty(30) days following the date on which the remittance first became delinquent shall pay a second penalty of ten percent(10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent(10%)penalty first imposed. 3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud,a penalty of twenty-five percent(25%)of the amount-of the assessment shall be added thereto in addition to the penalties stated in subparagraphs 1 and 2 of this subsection E. HBTBID Management District Plan 26 October°�8March 27,2024.2013 VISIT HUNTINGTON BEACH SURF CITY USA° 77 4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent(0.5%)per month, or fraction thereof,on the amount of the assessment,exclusive of penalties,form the date on which the remittance first became delinquent until paid. 5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid. 6. City not Responsible for Uncollected Amounts: The City shall not be responsible for uncollected amounts. F. Time and Manner for Collecting Assessments The HBTBID assessment will be implemented beginning February 1,2019 and will continue for nine(9)years and five(5)months through June 30,2028. The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest)from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to VHB. HBTBID Management District Plan 27 Ocoter" '8March 27,2024,2023 i VISIT HUNTINGTON BEACH SUPS car USA' 78 VII. GOVERNANCE A. Owners'Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code§36651,to identify the body that shall implement the proposed program, which shall be the Owners'Association of the HBTBID as defined in Streets and Highways Code §36612. The City Council has determined that Visit Huntington Beach will continue to serve as the Owners'Association for the HBTBID,upon execution of a renewed contract between the City and VHB. B. Brown Act and California Public Records Act Compliance An Owners'Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.The Owners' Association is,however,subject to government regulations relating to transparency,namely the Ralph M.Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners'Association acts as a legislative body under the Ralph M.Brown Act(Government Code§54950 et seq.). Thus,meetings of the VHB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners'Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly,the Owners'Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The VHB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code§36650(see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. HBTBID Management District Plan 28 October n Th 2m QMarch 27,2021,20 3 P. VISIT 11HUNTINGTON , BEACH SURF CITY USA. 79 • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. HBTBID Management District Plan 29 Octob n -018March 27.2024,2023 VISIT irHUNTINGTON BEACH SURF CITY USA' 80 APPENDIX 1—LAW ***THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT*** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18.PARKING PART 7.PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1.General Provisions ARTICLE 1.Declarations 36600.Citation of part This part shall be known and may be cited as the"Property and Business Improvement District Law of 1994." 36601.Legislative findings and declarations;Legislative guidance The Legislature fmds and declares all of the following: (a)Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities,services,and activities in the business districts. (b)It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs,attract new businesses,and prevent the erosion of the business districts. (c)It is of particular local benefit to allow business districts to fund business related improvements, maintenance,and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d)Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city,even if property, businesses,or persons not assessed receive incidental or collateral effects that benefit them. (e)Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1)Crime reduction.A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2)Job creation. (3)Business attraction. (4)Business retention. (5)Economic growth. (6)New investments. (f)With the dissolution of redevelopment agencies throughout the state,property and business improvement districts have become even more important tools with which communities can combat blight,promote economic opportunities,and create a clean and safe environment. (g)Since the enactment of this act,the people of California have adopted Proposition 218,which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities,expenditures,and assessments by property-based districts.Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h)The act amending this section is intended to provide the Legislature's guidance with regard to this act,its interaction with the provisions of Article XIII D of the Constitution,and the determination of special benefits in property-based districts. (1)The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act,which discourages the use of assessments to fund needed improvements,maintenance, and activities in property-based districts,contributing to blight and other underutilization of property. (2)Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore,for special benefits to exist as a separate and distinct category from general benefits,the HBTBID Management District Plan 30 October n 20 8March 27,2024,2023 VISIT HUNTINGTON BEACH II SURF COY USA° 81 incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3)It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments,and the manner in which special benefits should be determined. 36602.Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts,to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603.Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part.A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation,Limitation and Majority Protest Act of 1931(Division 4(commencing with Section 2800)). 36603.5.Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604.Severability This part is intended to be construed liberally and,if any provision is held invalid,the remaining provisions shall remain in full force and effect.Assessments levied under this part are not special taxes. ARTICLE 2.Definitions 36606."Activities" "Activities"means,but is not limited to,all of the following that benefit businesses or real property in the district: (a)Promotion of public events. (b)Furnishing of music in any public place. • (c)Promotion of tourism within the district. (d)Marketing and economic development,including retail retention and recruitment. (e)Providing security,sanitation,graffiti removal,street and sidewalk cleaning,and other municipal services supplemental to those normally provided by the municipality. (f)Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5."Assessment" "Assessment"means a levy for the purpose of acquiring,constructing,installing,or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607."Business" HBTBID Management District Plan 31 ^ctober920 Q°March 27,2024,2023 VISIT OFHUNTIRtGTON BEACH SURE CnY USA' 82 "Business"means all types of businesses and includes financial institutions and professions. 36608."City" "City"means a city,county,city and county,or an agency or entity created pursuant to Article 1(commencing with Section 6500)of Chapter 5 of Division 7 of Title 1 of the Government Code,the public member agencies of which includes only cities,counties,or a city and county,or the State of California. 36609."City council" "City council"means the city council of a city or the board of supervisors of a county,or the agency,commission,or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4."Clerk" "Clerk"means the clerk of the legislative body. 36609.5."General benefit" "General benefit"means,for purposes of a property-based district,any benefit that is not a"special benefit"as defined in Section 36615.5. 36610."Improvement" "Improvement"means the acquisition,construction,installation,or maintenance of any tangible property with an estimated useful life of five years or more including,but not limited to,the following: (a)Parking facilities. (b)Benches,booths,kiosks,display cases,pedestrian shelters and signs. (c)Trash receptacles and public restrooms. (d)Lighting and heating facilities. (e)Decorations. (f)Parks. (g)Fountains. (h)Planting areas. (i)Closing,opening,widening,or narrowing of existing streets. (j)Facilities or equipment,or both,to enhance security of persons and property within the district. (k)Ramps,sidewalks,plazas,and pedestrian malls. (1)Rehabilitation or removal of existing structures. 36611."Management district plan";"Plan" "Management district plan"or"plan"means a proposal as defined in Section 36622. 36612."Owners'association" "Owners'association"means a private nonprofit entity that is under contract with a city to administer or implement improvements,maintenance,and activities specified in the management district plan.An owners'association may be an existing nonprofit entity or a newly formed nonprofit entity.An owners'association is a private entity and may not be considered a public entity for any purpose,nor may its board members or staff be considered to be public officials for any purpose.Notwithstanding this section,an owners'association shall comply with the Ralph M.Brown Act (Chapter 9(commencing with Section 54950)of Part 1 of Division 2 of Title 5 of the Government Code),at all times when matters within the subject matter of the district are heard,discussed,or deliberated,and with the California Public Records Act(Chapter 3.5(commencing with Section 6250)of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. "Property" "Property"means real property situated within a district. HBTBID Management District Plan 32 Oco�018March 27,2024.�3 VISIT iHUNTNTIHGTOEd f BEACH star COY USA' • 83 36614.5."Property and business improvement district";"District" "Property and business improvement district,"or"district,"means a property and business improvement district established pursuant to this part. 36614.6."Property-based assessment" "Property-based assessment"means any assessment made pursuant to this part upon real property. • 36614.7."Property-based district" "Property-based district"means any district in which a city levies a property-based assessment. 36615."Property owner";"Business owner";"Owner" • "Property owner"means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council."Business owner"means any person recognized by the city as the owner of the business."Owner"means either a business owner or a property owner.The city council has no obligation to obtain other information as to the ownership of land or businesses,and its determination of ownership shall be final and conclusive for the purposes of this part.Wherever this part requires the signature of the property owner,the signature of the authorized agent of the property owner shall be sufficient.Wherever this part requires the signature of the business owner,the signature of the authorized agent of the business owner shall be sufficient. 36615.5."Special benefit" • "Special benefit"means,for purposes of a property-based district,a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements,maintenance,or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed.Special benefit excludes general enhancement of property value. 36616."Tenant" "Tenant"means an occupant pursuant to a lease of commercial space or a dwelling unit,other than an owner. ARTICLE 3.Prior Law 36617.Alternate method of financing certain improvements and activities;Effect on other provisions This part provides an alternative method of fmancing certain improvements and activities.The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)of this division)is valid and effective and is unaffected by this part. CHAPTER 2.Establishment 36620.Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5.Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city.A city may not form a district within the unincorporated territory of a county without the consent of the board HBTBID Management District Plan 33 Oco l8March 27,2021.2023 1 VISIT firHUNTINGTON BEACH SURF CITY USA' 84 of supervisors of that county.A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621.Initiation of proceedings;Petition of property or business owners in proposed district (a)Upon the submission of a written petition,signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied,the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied,shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b)The petition of property or business owners required under subdivision(a)shall include a summary of the management district plan.That summary shall include all of the following: (1)A map showing the boundaries of the district. (2)Information specifying where the complete management district plan can be obtained. (3)Information specifying that the complete management district plan shall be furnished upon request. (c)The resolution of intention described in subdivision(a)shall contain all of the following: (1)A brief description of the proposed improvements,maintenance,and activities,the amount of the proposed assessment,a statement as to whether the assessment will be levied on property or businesses within the district,a statement as to whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities,and the location and extent of the proposed district. (2)A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments,which shall be consistent with the requirements of Section 36623. 36622.Contents of management district plan The management district plan shall include,but is not limited to,all of the following: (a)If the assessment will be levied on property,a map of the district in sufficient detail to locate each parcel of property and,if businesses are to be assessed,each business within the district.If the assessment will be levied on businesses,a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries.If the assessment will be levied on property and businesses,a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b)The name of the proposed district. (c)A description of the boundaries of the district,including the boundaries of benefit zones,proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk.The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part.This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including,but not limited to,the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)).This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part.This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d)The improvements,maintenance,and activities proposed for each year of operation of the district and the maximum cost thereof.If the improvements,maintenance,and activities proposed for each year of operation are the same,a description of the first year's proposed improvements,maintenance,and activities and a statement that the same improvements,maintenance,and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. HBTBID Management District Plan\ 34 Octobe�018March 27,2021,2023 VISIT HUNTNTINGTON BEACH n25r CITY USA. 85 (e)The total annual amount proposed to be expended for improvements,maintenance,or activities,and debt service in each year of operation of the district.If the assessment is levied on businesses,this amount may be estimated based upon the assessment rate.If the total annual amount proposed to be expended in each year of operation of the district is not significantly different,the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f)The proposed source or sources of fmancing,including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business.The plan also shall state whether bonds will be issued to fmance improvements. (g)The time and manner of collecting the assessments. (h)The specific number of years in which assessments will be levied.In a new district,the maximum number of years shall be five.Upon renewal,a district shall have a term not to exceed 10 years.Notwithstanding these limitations,a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds.The management district plan may set forth specific increases in assessments for each year of operation of the district. (i)The proposed time for implementation and completion of the management district plan. (j)Any proposed rules and regulations to be applicable to the district. (k) (1)A list of the properties or businesses to be assessed,including the assessor's parcel numbers for properties to be assessed,and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses,in proportion to the benefit received by the property or business,to defray the cost thereof. (2)In a property-based district,the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement,the maintenance and operation expenses of a public improvement,or the cost of the activities.An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel.Only special benefits are assessable,and a property-based district shall separate the general benefits,if any,from the special benefits conferred on a parcel.Parcels within a property-based district that are owned or used by any city,public agency,the State of California,or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.The value of any incidental,secondary,or collateral effects that arise from the improvements,maintenance,or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (1)In a property-based district,the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m)In a property-based district,the total amount of general benefits,if any. (n)In a property-based district,a detailed engineer's report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o)Any other item or matter required to be incorporated therein by the city council. 36623.Procedure to levy assessment (a)If a city council proposes to levy a new or increased property assessment,the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b)If a city council proposes to levy a new or increased business assessment,the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code,except that notice shall be mailed to the owners of the businesses proposed to be assessed.A protest maybe made orally or in writing by any interested person.Every written protest shall be filed with the clerk at or before the time fixed for the public hearing.The city council may waive any irregularity in the form or content of any written protest.A written protest may be withdrawn in writing at any time before the conclusion of the public hearing.Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and,if a person subscribing is not shown on the official records of the city as the owner of the business,the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative.A written protest that does not comply with this section shall not be counted in determining a majority protest.If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay HBTBID Management District Plan 35 SlrOctb*�oer 9,28Mh 27,2024 2023 01arc , VISIT � HONT�1TtNGTUN • BEACH. SURF CITY USA' 86 • 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent,no further proceedings to levy the proposed assessment against such businesses,as contained in the resolution of intention,shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c)If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment,the notice and protest and hearing procedure for the property assessment shall comply with subdivision(a),and the notice and protest and hearing procedure for the business assessment shall comply with subdivision(b).If a majority protest is received from either the property or business owners,that respective portion of the assessment shall not be levied.The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624.Changes to proposed assessments At the conclusion of the public hearing to establish the district,the city council may adopt,revise,change,reduce,or modify the proposed assessment or the type or types of improvements,maintenance,and activities to be funded with the revenues from the assessments.Proposed assessments may only be revised by reducing any or all of them.At the public hearing,the city council may only make changes in,to,or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance,and activities.Any modifications,revisions,reductions,or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625.Resolution of formation (a)If the city council,following the public hearing,decides to establish a proposed property and business improvement district,the city council shall adopt a resolution of formation that shall include,but is not limited to,all of the following: (1)A brief description of the proposed improvements,maintenance,and activities,the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses,or both within the district,a statement on whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, • maintenance,and activities and the location and extent of the proposed district. (2)The number,date of adoption,and title of the resolution of intention. (3)The time and place where the public hearing was held concerning the establishment of the district. (4)A determination regarding any protests received.The city shall not establish the district or levy assessments if a majority protest was received. (5)A statement that the properties,businesses,or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6)A statement that the improvements,maintenance,and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments.The revenue from the levy of assessments within a district shall not be used to provide improvements,maintenance,or activities outside the district or for any purpose other than the purposes specified in the resolution of intention,as modified by the city council at the hearing conceming establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided,but shall be limited to marketing or signage pointing to the district. (7)A fmding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements,maintenance,and activities funded by the proposed assessments,and,for a property-based district,that property within the district will receive a special benefit. (8)In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b)The adoption of the resolution of formation and,if required,recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. HBTBID Management District Plan 4 36 October-9 SMarch 27;2024;2833 0.2VISIT HUNTINGTON BEACH SURF CITY USA' 87 36626.Resolution establishing district If the city council,following the public hearing,desires to establish the proposed property and business improvement district,and the city council has not made changes pursuant to Section 36624,or has made changes that do not substantially change the proposed assessment,the city council shall adopt a resolution establishing the district.The resolution shall contain all of the information specified in Section 36625. 36627.Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626,the clerk shall record a notice and an assessment diagram pursuant to Section 3114.No other provision of Division 4.5(commencing with Section 3100)applies to an assessment district created pursuant to this part. 36628.Establishment of separate benefit zones within district;Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone.If the assessment is to be levied on businesses,the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business,or on each category of business within each zone. 36628.5.Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners,or a combination of the two,pursuant to this part.The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements,maintenance,and activities,provided that any property- based assessment conforms with the requirements set forth in paragraph(2)of subdivision(k)of Section 36622. 36629.Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment,modification,or disestablishment of a property and business improvement district apply to the establishment,modification,or disestablishment of benefit zones or categories of business.The city council shall,to establish,modify,or disestablish a benefit zone or category of business,follow the procedure to establish,modify,or disestablish a property and business improvement district. 36630.Expiration of district;Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision(h)of Section 36622,a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3.Assessments • 36631.Time and manner of collection of assessments;Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment.Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax,and may provide for the same lien priority and penalties for delinquent payment.All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632.Assessments to be based on estimated benefit;Classification of real property and businesses;Exclusion of residential and agricultural property (a)The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district.The city council may HBTBID Management District Plan 37 October 9 "+8March 27,2021,2023 1 VISIT HUNTHTIHGT04! BEACH SURF CITY USA' 88 classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b)Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c)Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments,and shall not be subject to any assessment pursuant to this part. 36633.Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626.Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634.Service contracts authorized to establish levels of city services • The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635.Request to modify management district plan The owners'association may,at any time,request that the city council modify the management district plan.Any modification of the management district plan shall be made pursuant to this chapter. 36636.Modification of plan by resolution after public hearing;Adoption of resolution of intention (a)Upon the written request of the owners'association,the city council may modify the management district plan after conducting one public hearing on the proposed modifications.The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by - adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications.If the modification includes the levy of a new or increased assessment,the city council shall comply with Section 36623.Notice of all other public hearings pursuant to this section shall comply with both of the following: (1)The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2)A complete copy of the resolution of intention shall be mailed by first class mail,at least 10 days before the public hearing,to each business owner or property owner affected by the proposed modification. (b)The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section.The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637.Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5(commencing with Section 3100),in a manner consistent with the provisions of Section 36627. CHAPTER 3.5.Financing 36640.Bonds authorized;Procedure;Restriction on reduction or termination of assessments (a)The city council may,by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625,if the resolution of formation adopted pursuant to that section provides for the issuance of bonds,under the Improvement Bond Act of 1915(Division 10(commencing with Section 8500)) HBTBID Management District Plan " VISIT 38 October ,��18March 27,2024 3 rya- HUNT Hu�rIacTaH BEACH SURF COT USA' 89 or in conjunction with Marks-Roos Local Bond Pooling Act of 1985(Article 4(commencing with Section 6584)of Chapter 5 of Division 7 of Title 1 of the Government Code).Either act,as the case may be,shall govern the proceedings relating to the issuance of bonds,although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b)The resolution adopted pursuant to subdivision(a)shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625,set forth the estimated cost of those improvements,specify the number of annual installments and the fiscal years during which they are to be collected.The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c)Notwithstanding any other provision of this part,assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4.Governance 36650.Report by owners'association;Approval or modification by city council (a)The owners'association shall cause to be prepared a report for each fiscal year,except the first year,for which assessments are to be levied and collected to pay the costs of the improvements,maintenance,and activities described in the report.The owners' association's first report shall be due after the first year of operation of the district.The report may propose changes,including,but not limited to,the boundaries of the property and business improvement district or any benefit zones within the district,the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business,if a classification is used. (b)The report shall be filed with the clerk and shall refer to the property and business improvement district by name,specify the fiscal year to which the report applies,and,with respect to that fiscal year,shall contain all of the following information: (1)Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2)The improvements,maintenance,and activities to be provided for that fiscal year. (3)An estimate of the cost of providing the improvements,maintenance,and activities for that fiscal year. (4)The method and basis of levying the assessment in sufficient detail to allow each real property or business owner,as appropriate,to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5)The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6)The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c)The city council may approve the report as filed by the owners'association or may modify any particular contained in the report and approve it as modified.Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651.Designation of owners'association to provide improvements,maintenance,and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements,maintenance,and activities described in the management district plan.If the management district plan designates an owners'association,the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5.Renewal 36660.Renewal of district;Transfer or refund of remaining revenues;District term limit HBTBID Management District Plan VISIT 39 October 9,201SMarch 27,2024.2023 HUNTINGTON BEACH SEW cry USA' 90 (a)Any district previously established whose term has expired,or will expire,may be renewed by following the procedures for establishment as provided in this chapter. (b)Upon renewal,any remaining revenues derived from the levy of assessments,or any revenues derived • from the sale of assets acquired with the revenues,shall be transferred to the renewed district.If the renewed district includes additional parcels or businesses not included in the prior district,the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district.If the renewed district does not include parcels or businesses included in the prior district,the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c)Upon renewal,a district shall have a term not to exceed 10 years,or,if the district is authorized to issue bonds,until the maximum maturity of those bonds.There is no requirement that the boundaries,assessments, improvements,or activities of a renewed district be the same as the original or prior district. CHAPTER 6.Disestablishment 36670.Circumstances permitting disestablishment of district;Procedure (a)Any district established or extended pursuant to the provisions of this part,where there is no indebtedness, outstanding and unpaid,incurred to accomplish any of the purposes of the district,maybe disestablished by resolution by the city council in either of the following circumstances: (1)If the city council fmds there has been misappropriation of funds,malfeasance,or a violation of law in connection with the management of the district,it shall notice a hearing on disestablishment. (2)During the operation of the district,there shall be a 30-day period each year in which assessees may request disestablishment of the district.The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days.The next such 30-day period shall begin two years after the date of the establishment of the district.Each successive year of operation of the district shall have such a 30-day period.Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied,the city council shall pass a resolution of intention to disestablish the district.The city council shall notice a hearing on disestablishment. • (b)The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section.The resolution shall state the reason for the disestablishment,shall state the time and place of the public hearing,and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district.The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district,as appropriate.The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners.The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund;Use of outstanding revenue collected after disestablishment of district (a)Upon the disestablishment or expiration without renewal of a district,any remaining revenues,after all outstanding debts are paid,derived from the levy of assessments,or derived from the sale of assets acquired with the revenues,or from bond reserve or construction funds,shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires.All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b)If the disestablishment occurs before an assessment is levied for the fiscal year,the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. HBTBID Management District Plan 40 FA ethers/ 201SMarch 27,2024;-20?3 VISIT HUNTNTINGTON t BEACH SURF CITY USA' • 91 ,..(Formatted Table F. ik Formatted F. , ri( Formatted F. rr, Formatted F. APPENDIX 2-ASSESSED BUSINESSES* / /t , o Formatted r. Business Name/Identification Address,City,State,ZIP ..,,: :7//1,Formatted F. Number ig.•I Formatted E. , . , , - .. „Hyatt Regency Huntington Beach Resort 21500 Pacific Coast Hwy,Huntington Beach,CA 92648, Rig/ Formatted F &Spa, /,,y,f;",1/ Formatted F. y ,The Waterfront Beach Resort,a Hilton 21100 Pacific Coast Hwy Huntington Beach,CA 92648„ FormattedI/7 r. Hotel ; // Formatted r , Pasea Hotel&Spa777 Motor Inn 21080 Pacific Coast Hwy,Huntington Beach,CA 926481624CW Formatted E. Pacific Coast Hwy.,Huntington Beach,CA 92649 /- Formatted E. „Icimpton Shorebreak ResortBeeeh-inn _ ,500?acific Coast Hwy,Huntington,Beach,,CA,926484-81 /-' Formatted r Motel Blvd.,Huntington Beach,CA 92618 / / Formatted E. The Hotel HuntingtonBeachBest Western 2667Center Ave,Huntington Beach,CA 9264716912 Pacific/"-- , r• Harbour Inn&Suites Coast Hwy.,Sunset Bc\ach,CA 90712 --- ,,,,/ Formatted -- r• „SpringHill Suites by MarriottBest Western 1872 Edinger Ave,Huntington Beach,CA 9264719360 gc\w Formatted Surf City Blvd.,Huntington Bcach,CA 92618 /.., Formatted F. Comfort Inn&Suites Huntington 16301 Beach Blvd Huntington Beach,CA 9264716301 : .ach./„...--- Formatted r: BeachComfort Suites Huntington B ach Blvd.,Huntington Beach,CA 92617 / Formatted „Extended Stay AmericaExtended Stay 5050 Skylab Rd,Huntington Beach,CA 926475050 SkylabRd/.--:Formatted r• America Huntington: ach,CA 92617 ,- Formatted F. Huntington SuitesHotcl Europa 7971 Yorktown Ave,Huntington Beach,CA 926487561 Center:_— Formatted r Ave.ft16,Huntington Beach,CA 92617 -. Formatted E. Best Western Surf CityHuntington Beach „19360 Beach Blvd,Huntington Beach,CA 92648890-Pac-Ific--Goagi Formatted r• Inn Hwy.,Huntington Beach,CA 92618 Huntington Beach Inniduntington Suites 800 Pacific Coast Hwy,Huntington Beach,CA 926487971 „-----.' Formatted F: -- --- E. Yorktown Ave.,Huntington Beach,CA 92618 Formatted Formatted Travelodge Ocean FrontHuntington Surf 17205 Pacific Coast Hwy,SunsetBeach,CA 90742720 Pacific ---- Inn Coast Hwy.,Huntington : ach,CA 92618 Formatted F Beach Inn MotelHyatt Regency 18112 Beach Blvd,Huntington Beach,CA 9264821500 Pacific ..---- Formatted E. Huntington B ach Resort and Spa Coast Hwy.,Huntington B ach,CA 92618 -1,Formatted E. „Starlight Innrimpton Shorebreak Hotel ,18382 Beach Blvd,Huntington Beach,CA 92648500 Pacific Coast i Formatted r Hwy.,Huntington B ach,CA 92618 ---1 Formatted F. /77 Motor InnOccan Surf Inn&Suites „16240 Pacific Coast Hwy.Huntington Beach,CA 9264916555_____ Formatted E• acific Coast Hwy.,Sunset B ach,CA 90712 ., Formatted F Oceanview MotelOc nview Motel ___„16196 Pacific Coast Hwy,Huntington Beach,CA 9264916196 Pacific Coast Hwy.,Huntington Beach,CA 92649 F ,Best Western Harbour Inn&SuitesPas a 16912 Pacific Coast Hwy,Sunset Beach,CA 9074221080 Pacific Formatted Hotel&Spa Coast Hwy.,Huntington Beach,CA 92648 d s-- Formatte -,„ r pcean Surf Inn&SuitesQuality Inn& 16555 Pacific Coast Hwy,SunsetBeach,CA 9074217251 S. Formatted IT Suites Huntington B ach Beach Blvd.,Huntington B ach,CA 92617 \----- Formatted --L „Surf City InnSpringhill Suites by Marriott ,16220 Pacific Coast Hwy,Huntington Beach,CA 926497872 Formatted r: Edinger Ave.,Huntington Beach,CA 92647 .'s.------, N - Formatted r Huntington Surf InnStarlight Inn _220 Pacific Coast Hwy,Huntington Beach,CA 9264818382 Bcacl- -Formatted Blvd.,Huntington B ach,CA 92618 Formatted C „Hotel EuropaSun n Sands Inn _2561 Center Ave,Huntington Beach,CA 926471102 Pacific Coast\ 4-Iwy.,Huntington B----ach,CA 92618 Formatted F. STR-2021-0158 7771 Ellis Avenue Huntington Beach CA 92648 .„_,,‘ \ [.Formatted IT , I STR-2021-0174 529 Lake Street,Huntington Beach CA 92648 a, \ .Formatted IT \ ,r Formatted r HBTBID Management District Plan rc VISIT 41 \(Formatted (--: OetebeF-93-201-8March 27,2021,2023 ' : HUNTINGTON BEACH SURF CITY USA' 92 Business Name]Identification Address,City,State,ZIP a.,--`= Formatted Table Number , • STR-2021-0060 . 9151 Adams Avenue Huntington Beach CA 92646 t- ----- Formatted:Left STR-2021-0165 4542 Prelude Drive Huntington Beach CA 92649 — Formatted:Left STR-2022-0016 5922 Donlyn Drive Huntington Beach CA 92649 '-- Formatted:Left STR-2022-0033 207 11th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0028 8462 Modale Drive Huntington Beach CA 92646 . '------ Formatted:Left STR-2021-0155 112 8th Street,Huntington Beach CA 92648 '---- Formatted:Left STR-2022-0036 16811 14th Street#1 Sunset Beach CA 90742 '------ Formatted:Left STR-2022-0053 16511 23rd Street#1 Sunset Beach CA 90742 ' Formatted:Left STR-2021-0164 714 Oceanhill Drive Huntington Beach CA 92648 '-- Formatted:Left STR-2022-0035 912 Main Street,Huntington Beach CA 92648 - Formatted:Left STR-2022-0032 17162 Elm Lane,Huntington Beach CA 92647 ' Formatted:Left STR-2022-0039 16752 16th Street#1 Sunset Beach CA 90742 ' Formatted:Left STR-2021-0136 16571 S Pacific Avenue Sunset Beach CA 90742 '---- Formatted:Left STR-2021-0166 2300 Delaware Street#1 Huntington Beach CA 92648 ' Formatted:Left STR-2021-0152 231 1st Street#7 Huntington Beach CA 92648 ' Formatted:Left STr-2022-0051 16651 S Pacific Avenue#1 Sunset Beach CA 90742 ' Formatted:Left STR-2021-0091 16761 Bayview Drive Sunset Beach CA 90742 ' Formatted:Left STR-2022-0056 17116 4th Street#2 Sunset Beach CA 90742 Formatted:Left STR-2022-0077 17029 S Pacific Avenue Sunset Beach CA 90742 ' Formatted:Left STR-2022-0083 8101 Ellis Avenue Huntington Beach CA 92646 f Formatted:Left STR-2023-0049 20632 Goshawk Lane Huntington Beach CA 92646 ' Formatted:Left STR-2022-0049 16917 Park Avenue#2 Sunset Beach CA 90742 ' -- Formatted:Left STR-2022-0073 8312 Snowbird Drive Huntington Beach CA 92646 ^-- Formatted:Left STR-2022-0021 16385 S Pacific Avenue Sunset Beach CA 90742 * Formatted:Left STR-2022-0012 20731 Spindrift Lane Huntington Beach CA 92646 Formatted:Left STR-2022-0086 18091 Newland Street Huntington Beach CA 92646 ' Formatted:Left STR-2022-0087 212 6th Street,Huntington Beach CA 92648 `— Formatted:Left STR-2022-0031 216 16th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0075 726 14th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0085 1106 Huntington Street Huntington Beach CA 92648 — Formatted:Left STR-2022-0095 115 Huntington Street Huntington Beach CA 92648 Formatted:Left STR-2021-0169 17201 Sims Lane Huntington Beach CA 92649 Formatted:Left STR-2021-0146 16772 Pacific Coast Highway Sunset Beach CA 90742 f Formatted:Left STR-2021-0133 610 Main Street,Huntington Beach CA 92648 '— Formatted:Left STR-2022-0099 225 2"d Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0003 403 10th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0105 9192 Paddock Circle Huntington Beach CA 92646 Formatted:Left STR-2022-0100 19961 Estuary Lane Huntington Beach CA 92646 Formatted:Left STR-2022-0107 301 16th Street,Huntington Beach CA 92648 .-1 Formatted: Left STR-2022-0013 221 6th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0081 609 Lake Street,Huntington Beach CA 92648 ' - -, Formatted:Left STR-2022-0106 16591 Lucia Lane Huntington Beach CA 92647 Formatted:Left STR-2022-0109 16841 S Pacific Avenue Sunset Beach CA 90742 '- ',Formatted:Left HBTBID Management District Plan 4. VISIT 42 Oco "O8March 27,2024 3 ifHUNTINGTON BEACH SURF Cm USA' 93 Business Name/Identification a Address,City,State,ZIP -- Formatted Table Number STR-2021-0040 4671 Los Patos Avenue Huntington Beach CA 92649 *--- Formatted:Left STR-2022-0102 17891 Caledonia Circle Huntington Beach CA 92647 f--- Formatted:Left STR-2023-0062 16421 S Pacific Avenue Sunset Beach CA 90742 *— Formatted:Left • STR-2023-0091 8331 Varas Circle Huntington Beach CA 92646 *---- Formatted:Left STR-2022-0117 6871 Oxford Drive Huntington Beach CA 92647 *---- Formatted:Left STR-2022-0122 520 9th Street,Huntington Beach CA 92648 *----- Formatted:Left STR-2022-0082 604 18th Street,Huntington Beach CA 92648 * Formatted:Left STR-2022-0126 1003 California Street#B Huntington Beach CA 92648 '--- Formatted:Left STR-2023-0092 16742 Bayview Drive Sunset Beach CA 90742 --- Formatted:Left STR-2023-0106 16361 S Pacific Avenue Sunset Beach CA 90742 ----- Formatted:Left _ STR-2022-0004 306 14th Street,Huntington Beach CA 92648 * — Formatted:Left STR-2023-0110 16778 Pacific Coast Highway#A Sunset Beach CA 90742 ----- Formatted:Left STR-2023-0109 8231 Munster Drive Huntington Beach CA 92646 *----- Formatted:Left STR-2023-0098 5231 Meadowlark Drive Huntington Beach CA 92649 *----- Formatted:Left STR-2022-0124 6822 Sylvia Drive Huntington Beach CA 92647 ------ Formatted:Left STR-2023-0118 16756 Pacific Coast Highway Sunset Beach CA 90742 *------ Formatted:Left STR-2021-0008 7561 Danube Drive Huntington Beach CA 92647 *— — Formatted:Left STR-2023-0116 16855 S Pacific Avenue#1 Sunset Beach CA 90742 ---- Formatted:Left STR-2023-0043 8261 Munster Drive Huntington Beach CA 92646 --- Formatted:Left STR-2022-0116 15311 Yorkshire Lane Huntington Beach CA 92647 '------ Formatted:Left STR-2023-0095 512 14th Street,Huntington Beach CA 92648 • '------ Formatted:Left STR-2023-0102 603 21'Street,Huntington Beach CA 92648 '--- Formatted:Left STR-2022-0110 6062 Kelsey Circle Huntington Beach CA 92647 '----- Formatted:Left STR-2022-0127 214 Goldenwest Street Huntington Beach CA 92648 --- Formatted:Left STR-2022-0071 17312 Lee Circle Huntington Beach CA 92647 ---- Formatted:Left STR-2021-0171 305 California Street#B Huntington Beach CA 92648 ---- Formatted:Left STR-2022-0118 15971 Wicklow Lane Huntington Beach CA 92647 `-- -- Formatted:Left STR-2022-0084 5381 Kenilworth Drive Huntington Beach CA 92649 --- Formatted:Left STR-2023-0124 16575 S Pacific Avenue#1 Sunset Beach CA 90742 Formatted:Left STR-2022-0134 19132 Stingray Lane Huntington Beach CA 92646 Formatted:Left STR-2022-0097 841 Frankfort Avenue Huntington Beach CA 92648 ' — Formatted:Left STR-2022-0144 17151 Granada Lane Huntington Beach CA 92647 Formatted:Left STR-2021-0175 7651 Clay Avenue Huntington Beach CA 92648 Formatted:Left STR-2023-0117 6045 Summerdale Drive Huntington Beach CA 92647 Formatted:Left STR-2022-0108 210 7th Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0089 17020 Edgewater Lane Huntington Beach CA 92649 Formatted:Left STR-2022-0094 16778 Bayview Drive#A Sunset Beach CA 90742 • - Formatted:Left STR-2023-0134 9302 Candlewood Drive Huntington Beach CA 92646 '-- Formatted:Left STR-2022-0139 7562 Washington Drive Huntington Beach CA 92647 Formatted:Left STR-2023-0142 411 14th Street#C Huntington Beach CA 92648 -- Formatted:Left STR-2022-0140 17220 Courtney Lane Huntington Beach CA 92649 Formatted:Left STR-2023-0127 16541 S Pacific Avenue Sunset Beach CA 90742 Formatted:Left STR-2023-0147 218 19th Street#B Huntington Beach CA 92648 "{Formatted:Left HBTBID Management District Plan a visa 43 October 9 8March 27,2021,2023 iiHUNTINGTON BEACH SURE CITY USA. 94 Business Name I Identification Address,City,State;ZIP - Formatted Table Number . . STR-2023-0151 307 7th Street#C Huntington Beach CA 92648 •-- Formatted:Left STR-2023-0150 221 Chicago Avenue Huntington Beach CA 92648 •- Formatted:Left STR-2022-0119 4642 Minuet Drive Huntington Beach CA 92649 •— Formatted:Left STR-2023-0133 20681 Chaucer Lane Huntington Beach CA 92646 ---- Formatted:Left STR-2022-0005 409%6th Street,Huntington Beach CA 92648 •------- Formatted:Left STR-2023-0160 1508 Olive Avenue#A Huntington Beach CA 92648 •-- -- Formatted:Left STR-2022-0067 221 2"d Street,Huntington Beach CA 92648 •- Formatted:Left STR-2022-0152 5131 Dovewood Drive Huntington Beach CA 92649 •--- Formatted:Left STR-2023-0112 16391 S Pacific Avenue#1 Sunset Beach CA 90742 •---- Formatted:Left STR-2021-0151 427 Lake Street,Huntington Beach CA 92648 •---- Formatted:Left STR-2022-0111 5601 Rogers Drive Huntington Beach CA 92649 • Formatted:Left STR-2022-0088 426 Goldenwest Street Huntington Beach CA 92648 •--- Formatted:Left STR-2022-0154 119 6th Street,Huntington Beach CA 92648 •-— Formatted:Left STR-2021-0112 14895 Sunnycrest Lane Huntington Beach CA 92647 • Formatted:Left STR-2022-0158 17312 Norcon Circle Huntington Beach CA 92649 •--- Formatted:Left STR-2023-0187 323 19th Street#1 Huntington Beach CA 92648 ' Formatted:Left STR-2023-0164 407 Alabama Street Huntington Beach CA 92648 •— — Formatted:Left STR-2023-0189 235 1:t Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0163 1910 Alsuna Lane Huntington Beach CA 92648 ' Formatted:Left STR-2023-0193 16962 9th St 1,Sunset Beach CA 90742 • Formatted:Left STR-2023-0211 17012 N Pacific Ave Sunset Beach CA 90742 "-- Formatted:Left STR-2023-0198 17016 7th St,Sunset Beach CA 90742 ' Formatted:Left STR-2022-0165 8142 Sterling Drive Huntington Beach CA 92646 '-- Formatted:Left STR-2022-0164 19142 Stingray Lane Huntington Beach CA 92646 ' Formatted:Left STR-2023-0196 1316 Alabama Street Huntington Beach CA 92648 '-- Formatted:Left STR-2022-0054 216 10th Street,Huntington Beach CA 92648 - 1 Formatted:Left STR-2022-0159 222 Chicago Avenue#B Huntington Beach CA 92648 •---- ' Formatted:Left STr-2022-0150 9692 Durham Drive Huntington Beach CA 92646 • -- Formatted:Left STR-2022-0066 406 7th Street,Huntington Beach CA 92648 ,Formatted:Left STR-2022-0175 632 Indianapolis Avenue Huntington Beach CA 92648 • Formatted:Left STR-2022-0168 16772 Broadway#4 Huntington Beach CA 92649 ----._. Formatted:Left STR-2022-0146 19821 Bushard Street Huntington Beach CA 92646 - Formatted:Left STR-2022-0169 1411 Delaware Street#1 Huntington Beach CA 92648 •- - Formatted:Left STR-2022-0161 1915 Delaware Street Huntington Beach CA 92648 •--, Formatted:Left STR-2023-0008 228 Chicago Avenue#1 Huntington Beach CA 92648 • Formatted:Left STR-2022-0170 16561 Tiber Lane Huntington Beach CA 92647 • - Formatted:Left STR-2023-0011 3854 Humboldt Drive Huntington Beach CA 92649 ...-- Formatted:Left STR-2022-0176 2015 California Street Huntington Beach CA 92648Formatted:Left STR-2022-0157 8841 Jarrett Circle Huntington Beach CA 92647 Formatted:Left STR-2022-0166 14582 Aspen Circle Huntington Beach CA 92647 Formatted:Left STR-2023-0010 1107 Lake Street Huntington Beach CA 92648 • - Formatted:Left STR-2022-0113 16681 Landau Lane Huntington Beach CA 92647 — Formatted:Left STR-2022-0173 6421 Sligo Circle Huntington Beach CA 92647 •- "" Formatted:Left HBTBID Management District Plan yiSiT 44 1 October 9,2018March 27,2024,2023 PA HUNTINGTON BEACH SURT CITY USA' 95 Business Name/Identification Address,City,State,ZIP. u ' -[Formatted Table Number STR-2023-0023 215 Huntington Street#A Huntington Beach CA 92648 '-- Formatted:Left STR-2023-0018 636 Indianapolis Avenue Huntington Beach CA 92648 '---- Formatted:Left STR-2022-0172 18276 Lisa Lane,Huntington Beach CA 92646 '---- Formatted:Left STR-2022-0155 5782 Spa Drive,Huntington Beach CA 92647 '-- Formatted:Left STR-2023-0014 7651 Rhone Lane Huntington Beach CA 92647 '---— Formatted:Left STR-2023-0046 113 6th Street,Huntington Beach CA 92648 '----- Formatted:Left STR-2023-0016 210 6th Street,Huntington Beach CA 92648 ' Formatted:Left STR-2021-0123 447 Lake Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0026 946 11th Street,Huntington Beach CA 92648 '---- — Formatted:Left STR-2021-0172 6421 Jasmine Drive Huntington Beach CA 92648 '------- Formatted:Left STR-2023-0060 215 Portland Avenue Huntington Beach CA 92648 ' Formatted:Left STR-2023-0054 610 11th Street,Huntington Beach CA 92648 ' Formatted:Left STR-2023-0058 222 18th Street#A Huntington Beach CA 92648 "--- Formatted:Left STR-2021-0103 16525 S Pacific Avenue Sunset Beach CA 90742 '--- Formatted:Left STR-2023-0039 743 13th Street,Huntington Beach CA 92648 * Formatted:Left STR-2023-0040 6661 Wrenfield Drive Huntington Beach CA 92647 ' Formatted:Left STR-2023-0021 117 6th Street,Huntington Beach CA 92648 '— Formatted:Left STR-2023-0047 8252 Michael Drive Huntington Beach CA 92647 ' Formatted:Left STR-2023-0029 218 18th Street#B Huntington Beach CA 92648 ' Formatted:Left STR-2023-0057 7882 Aldrich Drive#102 Huntington Beach CA 92647 Formatted:Left STR-2023-0041 21891 Seacrest Lane Huntington Beach CA 92646 *- Formatted:Left STR-2023-0033 20441 Regal Circle Huntington Beach CA 92646 ' Formatted:Left STR-2023-0036 213 176 Street#A Huntington Beach CA 92648 < Formatted:Left STR-2023-0078 14892 Quill Circle Huntington Beach CA 92647 '" Formatted:Left STR-2023-0103 8371 Friesland Drive Huntington Beach CA 92647 ' Formatted:Left STR-2023-0076 6921 Tucana Drive Huntington Beach CA 92647 ' - Formatted:Left STR-2023-0051 510 Alabama,Street Huntington Beach CA 92648 Formatted:Left STR-2023-0056 2102 Pacific Coast Highway Huntington Beach CA 92648 '-- —_ - Formatted:Left STR-2023-0034 8131 Terry Drive Huntington Beach CA 92647 ' - Formatted:Left STR-2022-0174 8192 Falmouth Drive Huntington Beach CA 92646 Formatted:Left STR-2023-0075 16141 Malaga Lane#A Huntington Beach CA 92647 Formatted:Left STR-2023-0108 404 11th Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0125 16605 S Pacific Avenue Sunset Beach CA 90742 Formatted:Left STR-2023-0111 10051 Cutty Sark Drive Huntington Beach CA 92646 * Formatted:Left STR-2023-0055 16892 Baruna Lane Huntington Beach CA 92649 Formatted:Left STR-2023-0144 16782 Heritage Lane Huntington Beach CA 92647 Formatted:Left STR-2023-0061 601 7th Street,Huntington Beach CA 92648 Formatted:Left STR-2022-0041 1020 Pacific Coast Highway#B Huntington Beach CA 92648 Formatted:Left STR-2023-0020 414 8th Street,Huntington Beach CA 92648 Formatted:Left STR-2023-0184 20282 Colonial Circle Huntington Beach CA 92646 ' - Formatted:Left STR-2023-0181 20662 Goshawk Lane Huntington Beach CA 92646 ' Formatted:Left STR-2023-0196 1316 Alabama Street 1 Huntington Beach CA 92648 Formatted:Left STR-2023-0188 19621 Occidental Lane Huntington Beach CA 92646 - Formatted:Left HBTBID Management District Plan 45 es Oco 18March 27,2024,2023 VISIT iiHUNTINGTON BEACH SURE CITY RSA' 96 Business Name/Identification Address,City,'State, _ '- - Formatted Table Number �, STR-2023-0094 9632 Peppertree Drive Huntington Beach CA 92646 '-- Formatted:Left STR-2023-0210 111 7th Street,Huntington Beach CA 92648 --- Formatted:Left STR-2023-0218 201 Huntington Street 201 Huntington Beach CA 92648 '-- - Formatted:Left STR-2023-0182 17052 Greentree Lane Huntington Beach CA 92649 •------ Formatted:Left STR-2023-0204 17622 Prescott Lane Huntington Beach CA 92647 '—- Formatted:Left STR-2023-0217 15432 Shasta Lane Huntington Beach CA 92647 ----- Formatted:Left STR-2023-0170 17082 5th Street 2 Sunset Beach CA 90742 — Formatted:Left STR-2023-0213 10401 Monitor Drive Huntington Beach CA 92646 '-- Formatted:Left STR-2023-0222 17165 S Pacific Avenue Sunset Beach CA 90742 '--- — Formatted:Left STR-2023-0180 16612 Graham Place Huntington Beach CA 92649 '--- Formatted:Left STR-2024-0004 6701 Walton Drive Huntington Beach CA 92647 ' —i Formatted:Left STR-2024-0008 21252 Banff Lane Huntington Beach CA 92646 ' -- Formatted:Left STR-2023-0165 610 17th Street,Huntington Beach CA 92648 -- Formatted:Left STR-2023-0202 17026 7th Street,Sunset Beach CA 90742 '-- Formatted:Left STR-2023-0136 16721 Phelps Lane Huntington Beach CA 92649 '--- - Formatted:Left STR-2024-0003 119 9th Street,Huntington Beach CA 92648 '------- Formatted:Left STR-2023-0178 510 9th Street,Huntington Beach CA 92648 '----- Formatted:Left STR-2024-0014 17155 S Pacific Avenue Sunset Beach CA 90742 f'-- Formatted:Left STR-2023-0149 16791 Bayview Drive Sunset Beach CA 90742 '----- Formatted:Left STR-2023-0066 9971 Kings Canyon Drive Huntington Beach CA 92646 .---=Formatted:Left STR-2023-0186 124 Main Street 303 Huntington Beach CA 92648 '-- Formatted:Left STR-2024-0015 8021 Mermaid Circle Huntington Beach CA 92646 -- Formatted:Left STR-2024-0025 115 7th Street,Huntington Beach CA 92648 Formatted:Left STR-2024-0032 516 Huntington Street Huntington Beach CA 92648 '--- Formatted:Left *As of September 2018,March 2024 2023 ,,,--4 Formatted:Not Highlight **The list was developed with the most reliable information provided;however,the list may contain discrepancies.This list shall include any future to-be opened lodging businesses.Any lodging business that may have been missed in this list,but is still within the boundaries of the HBTBID,shall also be subject to assessment. IIETBID Management District Plan VISIT 46 March 27,2024,20'23 HUNTINGTON ifBEACH SURF CITY USA' 97 2019-2028 HUNTINGTON BEACH f i t..,,. . s p mom e a a *K v w * ww g ..w.. �.- ita ,�,... r.Ev"3.e:>�S.. 1.�Wa a.... e>eny � ,-,‘-„, °'""� - ,,.," .,.wf �.. x «r- _ µ ,} f1 �.mil. + ( tim'^ ,,;;,.''1',-',M*.:7..'..'.-'.4.'..l 7'e'.,',t,,',,,,."tf7,,1 4a„ nw +z«A* ,r5i$. ', _._ M^e.. rts" ��,.sP .. "'h.,, ..-.�> e.'r... ^9s`.. . y �Y^+:"R. y.. �....'y"'.4w HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law of March 27, 2 U 1994, Streets and Highways Code section 36600 et seq. Contents I. OVERVIEW 2 II. BACKGROUND 4 III. IMPETUS TO RENEW THE HBTBID 5 IV. ACCOMPLISHMENTS 7 V. BOUNDARY 15 VI. BUDGET AND SERVICES 16 A. Annual Service Plan 16 B. Annual Budget 19 C. California Constitutional Compliance 19 D. Assessment 21 E. Penalties and Interest 21 F. Time and Manner for Collecting Assessments 22 VII. GOVERNANCE 22 A. Owners'Association 22 B. Brown Act and California Public Records Act Compliance 23 C. Annual Report 23 APPENDIX 1 —LAW 24 APPENDIX 2—ASSESSED BUSINESSES 35 Prepared by Civitas CIVITAS PARTNERSHIPS•PROGRESS• PROSPERITY (800)999-7781 www.civitasadvisors.com 99 I. OVERVIEW Developed by Visit Huntington Beach (VHB) and Huntington Beach lodging businesses,the renewed Huntington Beach Tourism Business Improvement District (HBTBID) is an assessment district that will continue to provide specific benefits to payors,by funding marketing and sales promotion efforts for assessed lodging businesses. The HBTBID was formed in 2014 for a five (5) year term; assessed lodging businesses subsequently renewed it for an additional nine (9) years and five (5) months. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach, as shown on the map in Section V. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales. Tourism Enhancement Programs,Marketing&Public Relations and Group Sales will increase overnight tourism and market payors as tourist,meeting and event destinations, thereby increasing room night sales. Budget: The total HBTBID annual assessment budget for each full year of operation was approximately$5,000,000. The initial"year" of operation was a partial year consisting of five (5) months, for which the assessment budget was approximately $2,083,333. Beginning July 1,2024,or as soon as possible thereafter,due to the modified assessment rate,the total HBTBID assessment budget for each full year of operation is anticipated to be approximately$10,000,000. Cost: The initial annual assessment rate was four percent (4%) of gross short-term room rental revenue. This Management District Plan (Plan) has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1,2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. Collection: The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed HBTBID has a nine (9) year and five (5) month life,beginning February 1, 2019 through June 30, 2028. Once per year, beginning on the anniversary of HBTBID renewal,there is a thirty(30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. The proposed time for implementation and completion of this Plan is February 1, 2019 through June 30, 2028. The modified assessment rate is set to take effect July 1,2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. After the nine (9) year and five (5) month term, the HBTBID may be renewed for up to ten (10) years if lodging business owners support continuing the programs. HBTBID Management District Plan VISIT 2 March 27,2024 HUNTIN6TON 100 BEACH SURF CITY USA° Management: Visit Huntington Beach will continue to serve as the HBTBID's Owners'Association. The Owners'Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council. HBTBID Management District Plan 'm:, VISIT 3 March 27,2024 HUNTINGTON 101 BEACH SURF CITY USA° II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over one hundred California destinations have followed suit. In recent years,other states have begun adopting the California model-Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita,Kansas and Newark, New Jersey used an existing business improvement district law to form a TBID. And, some cities,like Portland, Oregon and Memphis,Tennessee have utilized their home rule powers to create TBIDs without a state law. California's TBIDs collectively ? Number of Districts Operating in raise over$300 million annually for California local destination marketing. With E 120 - 110113 competitors raising their budgets, 99 and increasing rivalry for visitor 100 - 88 - dollars, it is important that 80 70 - - 61 Huntington Beach lodging 60 businesses continue to invest in 3 40 _ 25 z9 3 38 �6 stable, lodging-specific marketing ? 19 programs. zo0 1 _.Z o=fa_ ® ® .�_� �rv�T priIDs utili7e the vate sector operation efficiencies in of the �� ti�� �� o� �� °� �� ti°�� � market-based promotion of • tourism districts. TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase room night sales. In California, TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between 1 BIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government use; • TBIDs are customized to fit the needs of payors in each destination; • TBIDs allow for a wide range of services; • TBIDs are designed, created and governed by those who will pay the assessment; and • TBIDs provide a stable,long-term funding source for tourism promotion. HBTBID Management District Plan VISIT 4 March 27,2024 HUNTIUGT®N BEACH 102 SURF CITY USA' III. IMPETUS TO RENEW THE HBTBID The existing HB"1'BID was established in 2014 with an assessment rate of three percent (3%) on overnight lodging revenues in Huntington Beach. While the HBTBID has been successful,there was still opportunity for growth in overnight visitation and room night sales revenue, especially during non-peak periods. At the time of HBTBID renewal in 2019, the City of Huntington Beach provided VHB with funding from Transient Occupancy Tax revenues, equal to one percent (1%) of overnight lodging revenues in Huntington Beach, pursuant to an MOU between the City and VHB. The City and VHB have terminated the MOU and entered into a new long-term agreement with the City that includes the City retaining 100%of all TOT revenues. In the renewal of the HBTIBD,the assessment rate was increased initially to four percent (4%) of gross short-term room rental revenue to ensure that tourism promotion funding was not decreased during the term of the renewed HBTBID. To continue to ensure that tourism promotion funding is adequate to remain competitive with other popular destinations, this Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1, 2024, or as soon as possible thereafter, and shall continue through the duration of the HBTBID's term. There are several reasons to modify this Plan. The most compelling reasons are: 1. The Need to Maintain/Increase Competitiveness, Occupancy and Overall Visitation As the number of overnight accommodations grow in Orange County, as well as in competitive California cities and counties, it is crucial that Huntington Beach maintains and increases its competitiveness, occupancy levels and visitation from targeted markets. These goals can be accomplished by increasing the HBTBID assessment rate from four percent (4%) to six percent (6%), which will generate approximately $10,000,000 per each full year in dedicated HBTBID funding for improvements and activities to increase room rentals for assessed lodging businesses located within the modified HBTBID. Additional HBTBID funds will continue to be used to implement new Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level: 1. Increase funding for destination sales and marketing programs, which will target key visitor markets,including markets that generate substantial overnight visitation to Huntington Beach and related visitor spending throughout the year, especially during non-peak seasons;and 2. Increase funding for the innovative HB 1'BID Visitor Services Enhancements program that adds new and/or repurposed projects to Huntington Beach's current brand offerings,which will increase year around overnight visitation by improving the overall HBTBID brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. 2. An Opportunity for Increasing City Revenues As an indirect result of the modified HBTBID, it is expected that as occupancy rates and overall visitation numbers increase, so too will the City's Transient Occupancy Tax revenue. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. 3. Stable Funding for Destination Marketing HBTBID Management District Plan A VISIT 5 March 27,2024 HUNTINGTON BEACH cos SURF CITY USA° The current HBTBID was formed pursuant to the Property and Business Improvement District Law of 1994. The law allows a district to be renewed for up to ten (10) years without the need for City Council's annual approval to continue levying the assessment. Stakeholders elected to renew the HBTBID for a nine (9) year five (5) month term. The renewed term provides stable funding for destination marketing, visitor services enhancements, and management through June 30, 2028 and aligns the HBTBID's fiscal year to the City's fiscal year. This will provide stable funding for destination marketing,visitor services enhancements, and management. Many of Huntington Beach's competitors are at or exceeding the level of funding available for destination marketing in Huntington Beach. The table below lists the funding raised by tourism improvement districts for VHB's current comparative set. Location Amount Raised Assessment Rate TOT Total Guest Rate Charge Anaheim $17,500,000 2%room revenue 15% 17% Mammoth Lakes $10,800,000 1%room revenue 13% 14% Newport Beach $10,500,000 3%room revenue 10% 13% Palm Springs $17,000,000 1%room revenue 14% 15% San Diego $41,000,000 2%room revenue 10% 12% San Luis Obispo $10,400,000 1%room revenue 10% 11% Santa Barbara $10,700,000 2%room revenue 12% 14% *As of August 2023 HBTBID Management District Plan VISIT 6 March 27,2024 t HUNTINGTON BEACH Boa SURF CITY USA° IV. ACCOMPLISHMENTS (2019 - 2023) Assessed Lodging Business Revenue Assessed lodging business revenue has increased 27% since the HBTBID assessment was increased from 3% to 4%in 2019. Increases in assessed lodging business revenue by fiscal year are listed below: Fiscal % Note Year Increase FY 18-19 17% FY 19-20 (23%) (Covid hit in last quarter of fiscal year) FY 20-21 (6%) FY 21-22 41 FY 22-23 6% Marketing& Public Relations 2019/2020 • To adapt to the pandemic shutdowns,VHB revised its marketing mix from a more international/national blend of effort towards a more hyper local (Los Angeles/Orange County) and regional CA drive market focus. • In partnership with the City of Huntington Beach,launched OneHB Clean &Safe and Masks Up Surf City campaigns as part of its COVID-19 Recovery Plan. • Produced 360 virtual reality content and an Open for Business map as part of VHB's COVID- 19 Recovery Plan. • Participated in Virtual Trade Show: 10 pre-scheduled appointments from larger agencies and groups (AAA Northeast,HelmsBriscoe) to smaller agencies (Preferred ChoiceTravel, TravelStore Pasadena) in partnership with the Hyatt Regency Huntington Beach Resort& Spa • Date a Destination: Week-long event held by Gate 7 with the major Australian travel companies in Australia (Helloworld,Flight Centre), destination reps, and virtual one-on-one meetings. • Promoted Huntington Beach during the 2019 Great PacificAirshow as a VIP Chalet sponsor. 2020/2021 • Continued OneHB Clean &Safe and Masks Up Surf City pandemic safety campaigns. • Developed a Clean &Safe video series for each of the HB Collection properties that showcased their flexible meeting& events meeting spaces with 40% of its total square footage being outdoors and reiterated their commitment to ensuring a safe environment for their guests. • Incorporated Project Brief template to use for ideation and outlining all proposed large VHB projects. • Launched inaugural 12 Blocks of Cheer Campaign bringing together the four downtown resorts, Pacific City, and Downtown Main Street for a holiday campaign promoting local shops, businesses, and events. 40 participating businesses; 62 events/photo ops; 35 deals; 3,000+ map views. • Participated in Visit California's Calling All Californians Co-op Marketing Program designed to jump start the California economy and drive responsible in-state travel. From August— November,VHB rolled out advertising on travel-focused digital platforms. Campaign HBTBID Management District Plan , VISIT 7 March 27,2024 '" �° HlINTIEfGTON 105 BEACH SURF CITY USA' generated more than 9.6M impressions, 2,600 room nights with a gross booking value of $555.9K. • Launched social media advertising campaign on Facebook and Pinterest targeting in-state travelers, complementing the Calling All Californians digital campaign. Garnered 3.2M impressions, over 82.7K video play-throughs, and over 15K clicks. • Media/PR efforts focused on garnering media coverage from hyper local outlets and influencers. • Authored 17 blogs with listicle themes (ex: Three Reasons to Travel to Huntington Beach During the Week). • Website Enhancements: Content Optimization and Navigation Architecture; SEO/SEM; Transitioned website to becoming ADA compliant. • Revamped paid social media program to align with the heavy audience shift to social media during the pandemic,leveraging the 24/7 cycle of the platforms to promote all relevant VHB marketing programs. Communities and engagement increased on Facebook and Instagram by 25%YoY. • Launched Datafy geo-location reporting dashboard tool which gains visitor and visitation insights from unique mobile device IDs that are observed while in destination. • Revised Visitor Guide with a 2020 pandemic lens and Rediscover Your Glow and Travel Responsibly themes. • Secured in-market agency representation in Canada, United Kingdom/Ireland, and Mexico. 790 total travel agents across all markets trained on selling Huntington Beach as a destination. 103 one-on-one trade show appointments with key international travel agents and tour operators. • Launched CA STAR Visit CA Training Tool used to train groups of travel agents and tour operators via an online course. • Brand USA Agent Training in Mexico City (200+ attendees). • Familiarization Tours with Air Canada,Discover North America (UK), British Airways (UK), and Virgin Holidays (UK). • Updated FILM HB Landing pages. FILM HB Data: 14 Film inquiries and 11 permitted shoots. 2021/2022 • In February 2021,launched inaugural Show Your HB Love campaign to highlight various businesses throughout Huntington Beach. • Launched #BeHere Marketing Campaign encouraging visitation and overnight stays in an open, outdoor, safer environment. The campaign's initial launch was during the summer and the second BeHere 2.0 flight leveraged Huntington Beach's elongated summer weather and events that extend well into the Fall,Winter and Spring seasons providing an opportunity for a second wave of summer leisure marketing- Summer 2.0—which overlays with the destination's needs period. Campaign garnered 15.2M impressions 32K clicks,reached 2.7M households and 122 cities. The booking component of the campaign generated 2.2M impressions, and 9,200 room nights with a gross booking value of$2.4M. • Participated in Visit California's What If Co-op Marketing Program: Launched in Spring 2021, the multi-layered campaign helped to stimulate California's tourism economy and inspire domestic travel. • The 2021 WSL US Open of Sung presented by Shisedo Marketing Campaign spotlighted Huntington Beach to over 15 countries around the globe.The campaign garnered$241.1K in media value, 110M social media impressions, 3.4M video plays, 1.3M live video views, 80K page views to landing page,and 1,000 pieces of media coverage media. HBTBID Management District Plan s'', VISIT 8 iv March 27,2024 HUNTINGTON 106 BEACH SURF CITY USA° • Promoted Huntington Beach during the 2021 Pacific Airshow as a Chalet partner,hosting meeting planners and select VIP clients to promote HB as a meetings and events destination. • Social Media program resulted in Facebook and Instagram communities increasing by 15% YoY, and social media engagement levels surpassing VHB 15%benchmark increase by as much as 135%. • Launched Crowdriff-visual content marketing software for travel and hospitality brands to help source,manage, and publish user-generated content and short-form video from Huntington Beach locals and visitors. • Launched a TikTok page in October 2021. • Launched a Group Sales e-newsletter targeting meeting&event planners. Built a database of over 2,900 recipients with an open rate of 19.1%. • Launched a UGC (user generated content) program encouraging locals and visitors to share their content with us for use on our social platforms and other materials. Generated 869 pieces of content. • Launched digital advertising program that sells banner ad space on heavily trafficked pages of the VHB website, as well as paid opportunities on other VHB digital platforms (social media, e-newsletter, et al). • Launched robust, content-calendar-based blog program to build more relevant, SEO-& SEM-friendly content on the VHB website. 60 blogs authored. • Launched a quarterly photoshoot program developed to fill in imagery needs for all of VHB's marketing initiatives. Quarterly Sessions: Outdoor Activities around the Pier,Action Sports,Laidback Luxury, and Select Service Hotel Properties. • Partnered with four Orange County DMOs to form the Orange County Coastal Tourism Alliance in response to the Orange County Coastal oil spill. Developed a website to serve as a central communication hub for elected officials, the City, media, tourism industry and the public to share the most current information and accurate, factual updates about the spill impacts and recovery. • In January 2022,launched quarterly Visitor Intercept Surveys. The data collected over calendar year 2022 will be included as insight in the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Hosted 13 journalists and 15 influencers,including"Travel Mom"influencer Emily Kaufman. Garnered national and local coverage including Forbes Magazine, Conde Nast Traveler,JustLuxe, CNN,Fox 11 News,Brides, and Orange County Register. • Produced Surf City USA® Uncovered- a 20-episode series featuring unknown or"hidden" gems within Huntington Beach. The series targeted visitors and locals encouraging them to explore. • Revised Visitor Guide with the 2022 themes of Be Here and Clean &Safe and inspiring messaging sensitive to travel in a (transitioning) pandemic era. • FILM HB Data: 45 Film inquiries and 63 permitted shoots. 2022/2023 • Launched #BeHere 3.0 Marketing Campaign encouraging visitation and overnight stays in an open, outdoor, safer environment. This iteration of the campaign targeted Huntington Beach lifestyle pillars of outdoors,wellness, family, active sports, dining, and shopping. Campaign garnered 22.7M impressions 46.7K clicks, outpacing performance by 47%. The booking component of the campaign generated 3,360 room nights. • In response to Board direction to amplify channels to help boost referral business to hotels for the remainder of the fiscal year,VHB extended its #BeHere Soft Season Campaign, a highly targeted media buy investment developed to generate leisure bookings,increase web traffic to SurfCityUSA.com, and increase awareness of the destination,hotel, and resort properties. HBTBID Management District Plan a k VISIT 9 March 27,2024 HUNTINGTON 107 BEACH SURF CITY USA" The extended campaign generated an additional 8.24M total impressions and 11,950 clicks to VHB's campaign landing page.The campaign surpassed performance projections by 53% and is tied to 2,917 unique hotel overnight visitors who saw VHB paid media ads up to 90 days before their stay. • Launched redesigned website.Website traffic increased 7%YoY with 1.3M sessions and 2.1M Pageviews annually.Won four awards: Hermes Creative Award - Gold;DotComm- Gold Winner; Internet Advertising Competition -Best of Industry Winner; 29tAnnual Communicator Awards -Award of Excellence. • Updated all of VHB's SEM- and SEO-related platforms that track search engine and website performance to be compliant with Google Analytics Version 4 (GA4) platform update before the switch went live on July 1,2023. • Produced quarterly destination performance reports for the HB Collection hotel properties, customized with destination-level and hotel-level data per property. • Promoted the inaugural A Great Day in the Stoke, a surfing competition which is open to all, but also happens to be the largest gathering of black surfers. The campaign secured 48 pieces of online media stories,4 broadcast interviews, and 3 print articles with a collective reach of 29.3M. • The 2022 ISA World Sung Games Marketing Campaign promoted Huntington Beach to over 2.1M LiveStream viewership from over 50 countries. The campaign,which received exposure in the Opening Ceremony, the competition broadcast, and Closing Ceremony and Parade,garnered 2M social media impressions, 132K daily interactions on ISA event page, and media coverage reaching 22K contacts. • The 2022 WSL Vans US Open of Sung Marketing Campaign spotlighted Huntington Beach to over 743M homes in 6 regions around the globe.The campaign garnered a collective 1.3K social media posts, 38M social media impressions, 2M VOD views, 2.9M email impressions, 2.8M live video views, 195K page views to landing page, and 1,000 pieces of media coverage media. VHB also hosted LA28 organizing committee members allowing them to see first- hand HB's capabilities as a top-tier sporting event location. • Promoted Huntington Beach during the 2022 PacificAirshouv as a Chalet partner, hosting top meeting and event planners to showcase the destination as a unique place to meet.Along with Destination Analysts,produced 2022 PacificAirshowEconomic Impact Report that showed it generated a$70M total direct economic impact for Huntington Beach. • Secured the 2023 ISA World Para Sung Championsh ps to occur in November 2023 (FY 23- 24). • Updated VHB Brand S'yle Guide. • Produced Huntington Beach Tourism Summit hearing from experts in the tourism, action sports, and entertainment industries, as well as economic forecasts for Huntington Beach and updates on regional infrastructure enhancements. • Designed new VHB trade show booth which debuted at IMEX 2022, a major trade show. • Produced the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Created a Major Events in HB Presentation deck highlighting all the benefits of hosting world- class sporting (and other) events in Huntington Beach. • Achieved goal of having 1,000 TikTok followers by fiscal year's end, unlocking additional backend features. • Launched KeyData Reporting Dashboard which tracks Short Term Vacation Rentals performance in the destination. • Launched Symphony Dashboard which pulls in all sources of economic, demographic, marketing, digital performance numbers into a central location for streamlined and customizable reporting. HBTBID Management District Plan "4 VISIT 10 March 27,2024 HUNTINGTON 108 BEACH SURF CITY USA° • Hosted 16 journalists and 7 influencers. Garnered national and local coverage including Forbes Magazine, Viator, Inside Hook, Daily Pilot, Travel Awaits, USA Today, and Orange County Register. • Hosted.the California Cup Golf Invitational 2023.The 4-day long event brought together 75 international travel trade buyers and California suppliers for HB experiences,business development, and industry networking. Each year, CA Cup Invitational gives back to a local charity through funds raised from international and CA auction prizes. • VHB was the only U.S. destination invited to participate in Air Canada, the Air Canada Foundation, and CAN (Canucks Autism Network) community's inaugural Autism Aviation Day,VHB welcomed over 50 individuals including children on the autism spectrum. The event provided an opportunity for youth on the autism spectrum (and their families) to rehearse the entire pre-flight process; the goal is to increase autism accessibility and encourage future travel. • Conducted 733 total travel agents across all markets trained on selling Huntington Beach as a destination; 137 one-on-one trade show appointments with key international travel agents and tour operators; and 15 international familiarization tours. • Along with Destination Analysts, produced 2022 PaccAirshow Economic Impact Report. • FILM HB Data: 126 Film inquiries and 111 permitted shoots. Sales FY 2019 to present: • Conference/Meeting leads processed by VHB: 2,900 • Definite contracted/booked room nights by VHB: 176,055 • Economic Impact of Groups to Huntington Beach: $121 million Highlighted Group Sales Programs • Success of HB Collection Beachwides—Annual Future Proof Wealth Festival,inaugural year 2022,taking place every September with over 3,000 room nights to the destination per year within the four HB Collection Resorts and a beachfront event activation. • Participation in Intermediary Preferred programs including HelmsBriscoe, ConferenceDirect,Prestige, and HPN Global which contributed to a substantial increase in lead development YOY. • Partnership with Orange County Sport Commission has generated new business opportunities for both our Select Service and Full-Service Hotel/Resort partners. Visitor&Partner Services Visitor Interactions Quly 1, 2019—June 30,2023) • Visitor Info Kiosk: 51,644 • VHB Office: 13,173 • Events: 10,017 • Mobile Bicycle Program: 391 Event Information Booths • 55 events attended • New branded equipment purchased in 2022 (10x10 pop-up canopy, cafe umbrella, flags, and tablecloths) HBTBID Management District Plan ° VISIT 11 March 27,2024 ir HUNTINGTON 109 BEACH SURF CITY USA° Local Pop-up Information Booths • Launched Summer of 2021 • Pacific City o Operated weekends only from 5/29/21-8/29/21 o 282 interactions • Bella Terra o Operated weekends only from 7/10/21-9/5/21 o 215 interactions Publication Distribution • Design and produce 18 different publications,including the official Huntington Beach Visitor Guide,Visitor Maps,Downtown HB and Sunset Beach Tear Off Maps,Downtown maps in foreign languages,Nightlife Guides,Activity Guides,Historical Walking Tours, and more. • 7,500+ visitor guides handed out in person • 100,000+visitor guides distributed to local businesses • 150,000+ visitor guides &rack brochures distributed to locations across the Western United States Partner Services • Partner Education Series -Launched in 2021; to date the series has held 23 events (15 virtual, 8 in-person) with 466 attendees. • Partner Outreach Program-Launched 2021;Partner Services staff have connected with HB businesses 946 times. Visitor Services staff have referred visitors to HB businesses 6,921 times. • CEO/Partner Newsletters - Over 50 e-newsletters have been sent since March 2020,with 1,166 newsletter contacts, a 41% average open rate (20%industry standard), and a 2.82% average click rate (2.25%industry standard). Visitor Experiences • Meet in HB Pass -Launched in 2022 for Group Meetings,this program provided deals at 13 local businesses for meeting attendees • VHB Guided Walking Tours -Launched in 2022, the Historical Downtown HB Walking Tour and the Surf History Walking Tour are led by VHB staff twice a month. Special tours are led by Chris Epting a few times a year.To date, 222 tickets have been sold for the VHB led walking tours and the Chris Epting tours have sold out. • Digital Surf City USA Barrel Trail-Launched in Spring 2022 as a free digital pass with a phone app, this trail provided deals at 15 breweries and distilleries across HB and garnered 566 sign-ups. • Surf City USA Barrel Trail Passport-Launched in March 2023 as a physical booklet,the new passport is sold online and in-store for$5. To date, 254 passports have been sold and 2 people have completed the full trail and redeemed the grand prize, a gift card to an HB brewery/distillery of their choice. • Surf City USA Scavenger Hunt-Launched 2023,the Scavenger Hunt is a printed map targeted to families with young children. Participants redeem their completed Scavenger Hunt for a free coloring book at the Visitor Information Kiosk. In the first two months of the program, 68 participants picked up their free coloring book. HBTBID Management District Plan *}a VISIT 12 March 27,2024 H U N T I N 6 T 0 N 110 BEACH SURF CITY USA' • Surf City USA Snapshots -Launched in May 2023,this digital trail leads visitors and residents to the best Instagrammable photo spots in HB. • Pedego Pilot Program—Pilot program launched summer of 2022, this mobile visitor information bicycle provided visitor info along the beach path and had 391 interactions over 3 months. • Major Visitor Information Kiosk Capital Improvements over the last several years. Other Visitor Enhancement Programs • Team Surf City USA Volunteer Program • Launched June 2023 • 8 volunteers enrolled in the program • Wayfinding Program • Completed 90% of installation and continue to conduct ongoing maintenance for installed HB branded Wayfinding Program signage throughout Huntington Beach. The $1 million-plus comprehensive wayfinding system was created in partnership with the City of Huntington Beach after receiving community input. • The program remains ongoing with installation of remaining signs,including gateway signs,to take place over the coming years. • Installed and maintain digital information kiosk at the HB Pier as part of the Wayfinding Program. • Summer Beach Restrooms -Provide annual financial support for temporary summer beach restrooms and additional cleaning at the HB Pier. In 2023,VHB covered the entire cost for the program due to City budget cuts. • Downtown Transportation-Provided financial and marketing support for the launch of the Circuit electric car program in Downtown HB. Retail Program • In 2020,VHB launched a Surf City USA®retail program to help visitors promote the brand when they return home. Currently, the store produces 26 items for sale in-store, online, and at pop-up booths,with gross sales of$33k since inception. Sales increased 88%in the last year. Pandemic recovery initiatives • Open For Business Page and Map launched in March 2020 to help residents and visitors find needed resources. • OneHB Clean& Safe Pledge Digital Trail launched in October 2020 and garnered 787 pledges from HB businesses. Advocacy& Community Support • Provide resources and knowledge to support public policy initiatives that advance brand awareness and reputation of Huntington Beach • Provide annual funding support for the Downtown Nighttime Ambassador Program,which is now operated by the Downtown Business Improvement District. • VHB supports local events with community sponsorships for programs including the Waymakers Pier Snowflakes,4th of July Parade,Blessing of the Waves,HB Surfing Walk of Fame, Cherry Blossom Festival, Great Day in the Stoke, Surf City Splash,Bolsa Chica Wetlands Conservancy, and Amigos de Bolsa Chica. HBTBID Management District Plan VISIT 13 March 27,2024 HUNTINGTON BEACH 111 SURF CITY USA • VHB staff volunteer on local committees and Boards of Directors,including the HB Chamber of Commerce,Downtown Business Improvement District,HB Surfing Walk of Fame,and the Alzheimer's Association Walk to End Alzheimer's. • VHB staff speak annually at local schools and non-profit organizations providing information about why tourism is a viable job industry and a strong economic support for the community. . • Provide annual funding support for HB International Surfing Museum • VHB staff volunteer for local events and projects, such as the City of Huntington Beach's Community Service Day;the Waymaker's Youth Shelter Annual Gala,the Wetlands & Wildlife Care Center's Baby Shower, and Project Self Sufficiency's Thanksgiving and Holiday gift giving program. Administration Awards • Named one of OC Business Journal's Best Places to Work in Orange County in 2023. • Earned FiredUp! Culture's 2022 Culture Achievement Award,which was awarded to nine organizations nationally across multiple industries who scored the highest on its Team Culture Index Survey. • Earned a'With Distinction" status with VHB's 2021 DMAP (Destination Management Accreditation Program) accreditation renewal through Destinations International. The 'With Distinction" status has only been awarded to less than 15 organizations globally. Operations • Created new 2023-2026 Strategic Plan,to follow the 2020-2023 Strategic Plan. • In 2019,relocated VHB office to ground level on 5' Street near PCH to provide better access for visitors. Created Welcome Center and Surf City USA®retail store in new office lobby. • Continue to perform annual unqualified audits. HBTBID Management District Plan VISIT 14 March 27,2024 ir Pb HUNTINGTON 112 BEACH SURF CITY USA' V. BOUNDARY The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Huntington Beach. Lodging business means: any structure, or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling,lodging or sleeping purposes, and includes any hotel,inn, tourist home or house,motel, studio hotel,bachelor hotel,lodging house, rooming house, at a fixed location, or other similar structure or portion thereof. The boundary is shown in the map below.A complete listing of lodging businesses within the renewed HBTBID can be found in Appendix 2. ,_GARDEALGROVE FREEW � GARDEN ROVE FREEW 405 // 1 . CITY OF �• ',\ HUNTINGTON BEACH /', d i < w m i' °q V r /A' w HBTBID Management District Plan ` VISIT 15 March 27,2024 HUNTINGTON iiBEACH 113 SURF CITY USA' VI. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HBTBID funds are marketing, sales and tourism enhancement programs available only to assessed lodging businesses. A service plan budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual budget will be developed and approved by VHB. The total initial full year budget was anticipated to be $5,000,000. Fiscal year 2019 covered the five (5) month period from February to June 2019, resulting in a lower anticipated budget for the first five (5) months of HBTBID operation. The table below illustrates the initial annual budget allocations reflecting the modified assessment rate. Beginning July 1,2024,or as soon as possible thereafter,due to the modified assessment rate,the total initial full year assessment budget is anticipated to be approximately$10,000,000. 2024 VHB PROPOSED MODIFIED BUDGET:Annual Assessment Budget$10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2%increase in TBID assessments,VHB forecasts its budget to be approximately$10M.This amount is reflected below. All proposed programs funded by TBID assessments must be approved by the VHB Board during the annual budget process and must adhere to state laws governing these assessment expenditures. Contingency/Reserve City Admin Fee $500,000(5%) $100,000(1%) Administration t 1, $1,900 000(19%) ' Sales&Marketing ;F w ' "' $6,500,000(65%) CrrJ- Tourism Enhancement Programs $1,000,000(10%) �'^*.-. • includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE)Programs from 2019-2024 MOP Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the VHB Board shall have the authority to re- allocate up to fifteen percent (15%) of the budget allocation within the budgeted categories per year and submitted through the annual report. For example, if there is increased market competition, $150,000 from the Tourism Enhancement Programs budget may be reallocated to the Sales & Marketing budget,staying within the authorized 15%reallocation limit. In the event of unforeseeable emergencies or unavoidable catastrophes that interrupt the expected course of business,by agreement of both the VHB Board and the City Manager (or his/her designee), the City and VHB shall have the authority to adjust budget categories by more than fifteen percent (15%) of the budget allocation within the budgeted categories.For example,in the event of a pandemic resulting in an unprecedented decline in tourism, $3,000,000 from the Sales &Marketing budget may be reallocated to the Tourism Enhancement Programs budget to address unforeseen circumstances, exceeding 15% as allowed under the exceptional circumstances. At least annually, VHB will meet with the City Manager or designated staff to review accomplishments and funding priorities for the following year. A description of the proposed improvements and activities for the initial year of operation is below. The HBTBID Management District Plan ,a � VISIT 16 March 27,2024 jr_ HUNTINGTON BEACH 114 SURF CITY USA° same activities are proposed for subsequent years. In the event of a legal challenge against the HBTBID, any and all assessment funds may be used for the costs of defending the HBTBID. Each budget category includes all costs related to providing that service,in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the Sales &Marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing programs. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member maybe allocated to multiple budget categories,as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the VHB on an as-needed basis. Sales & Marketing The sales and marketing program will promote assessed lodging businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses, and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: • Increased advertising and promotional programs in print, online, social media, and television targeted at potential visitors to drive overnight visitation and room sales; • Website enhancements and updates; • Strategic advertising and marketing agency support; • Contract with third party marketing and sales partners; • Public relations, sales blitzes,missions, and calls; • Familiarization tours targeting key decision makers; • Preparation and production of collateral promotional materials such as visitor guides, brochures, flyers, and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists, leisure visitors, and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors;and • Cooperation with local agencies and film commission programs that attract overnight visitors. Tourism Enhancement Programs The Tourism Enhancement Program(TEP)will enhance the brand image and visitor experience while in destination, providing a benefit for guests of assessed lodging businesses by encouraging an increased length of stay and appealing to target niche markets based on demographic and current travel data. An incidental benefit also improves the resident experience throughout the year. The TEP will provide funding for programs and initiatives in destination in accordance with VHB's current strategic plan. VHB will work with the City Manager and designated city staff to identify and prioritize any key public-private programs and initiatives, as detailed in the Management Agreement with the City and VHB,to be funded and implemented following approval of the VHB budget by the VHB Board of Directors and approval of the City budget by City Council.The focus for the TEP will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach. 'I't!P may include the following programs which are designed to drive increased overnight visitation and room sales to assessed lodging businesses: HBTBID Management District Plan 9„. VISIT 17 March 27,2024 � HUI TlNGTON 115 BEACH SURF CITY USA* • Support of a long-term ambassador program with trained staff that supplement the current level of police presence to improve the overall destination experience and encourage overnight visitation; • Welcome center, event-based visitor information booths, and visitor information kiosk improvements including current technology-driven visitor information enhancements; • Support of Signature Events that provide a proven positive economic impact and extend Surf City USA's brand reach, including programs and events that lead up to the LA28 Olympic games; • Support of other community events and programs that uphold the authenticity of the Surf City USA experience and create a greater sense of community for residents; • Team Surf City USA Volunteer Program to help community members become experienced event volunteers; • Brand-centric visitor services training program for both public and private sector staff; • Support of a trolley or transportation program connecting hotels to downtown Huntington Beach,The Pier, or other attractions; and • Development of activities and/or products designed to keep visitors in the destination for an increased duration of time,including Historical Walking Tours, Scavenger Hunt,Barrel Trail, Surf City USA Snapshots,and other activities. Additional future TEP programs may include destination product development programs to provide support for public-private capital improvement projects in partnership with the City of Huntington Beach.If such a project is proposed,VHB will work collaboratively with the City Manager and Public Works. Such projects,which are all aimed to attract overnight,visitors, may include: • Additional wayfinding signage system enhancements including gateways and parking signage; • Pedestrian improvements linking the beachfront hotels,Pacific City,Main Street, and 5th Street; • Art and cultural improvements, such as a public art trail; • Gateway enhancements including on Pacific Coast Highway, to attract overnight visitors; • Bicycle and surfboard storage improvements; • Enhancements to wetlands experiences which attract overnight visitors, such as the Bolsa Chica Ecological Reserve and the Huntington Beach Wetlands (between Newland Street and the Santa Ana River) that expose visitors to the value of the vital ecosystems; • Partnership with the City on mutually agreed upon projects that promote overnight visitor stays to Huntington Beach. Examples may include:Improvements to pier plaza,existing parks and sports facilities, Huntington Beach International Surfing Museum, the Surfing Walk of Fame, and creation of a new live music venue, and/or entertainment complex; • Destination product development research, master planning, and design of approved destination product development projects and; • Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year-round (e.g., improvements to beach restrooms, parking structures/lots,lighting, and summer beach restroom porter cleaning). Administration The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. HBTBID Management District Plan ..m V l S l T 18 March 27,2024 rt HUNTIN6TON 116 BEACH SURF CITY USA° Contingency/Reserve The budget includes a contingency line item to account for uncollected assessments,if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration,or renewal costs at the discretion of the VHB Board. Policies relating to contributions to the reserve fund,the target amount of the reserve fund,and expenditure of monies from the reserve fund shall be set by the VHB Board. City Administration Fee The City of Huntington Beach shall retain a fee equal to one percent(1%) of the amount of assessment collected to cover its costs of collection and administration. B. Annual Budget The total nine (9) year and five (5) month improvement and service plan budget was projected at approximately$5,000,000 annually, or$47,083,333 cumulatively through 2028. Beginning on July 1, 2024, or as soon as possible thereafter, due to the modified assessment rate, the total HBTBID assessment budget for each subsequent full year of operation is projected to be approximately $10,000,000, or approximately$71,901,015 cumulatively through 2028. This amount may fluctuate as sales and revenue increase or decrease at assessed lodging businesses, but is not expected to change significantly over the term. C. California Constitutional Compliance The HBTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term `assessments' to levies on real property.1 Rather, the HBTBID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the HBTBID, a "specific benefit" and a "specific government service." Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, "a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."2 The activities and improvements in this Plan are designed to provide targeted benefits directly to assessed lodging businesses,and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land,but rather to serve the specific lodging businesses within the HBTBID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HBTBID, and are narrowly tailored. HBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging • businesses in HBTBID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(l) HBTBID Management District Plan x° 19 March 27,2024 , VISIT °' HUNTIN6TQN 117 BEACH SURF CITY USA' The assessment imposed by this HBTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the HBTBID assessment,with tourism enhancement programs promoting lodging businesses paying the HBTBID assessment. The tourism enhancement programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the tourism enhancement programs that specifically benefit the assessed lodging businesses, the administration and contingency/reserve programs also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the HBTBID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses,the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that,"A specific benefit is not excluded from classification as a`specific benefit'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor."3 2. Specific Government Service The assessment may also be utilized to provide, "a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product."4 The legislature has recognized that marketing and promotions services like those to be provided by the HBTBID are government services within the meaning of Proposition 265. Further, the legislature has determined that "a specific government service is not excluded from classification as a `specific government service' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor."6 3. Reasonable Cost HBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VHB, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from HBTBID-funded activities, be featured in lodging-specific advertising campaigns, and benefit from other HBTBID-funded programs. Non-assessed lodging businesses will not receive these, nor any other,HBTBID-funded services and benefits. The HBTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-HBTBID funds. HBTBID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. 3 Government Code § 53758(a) 4 Cal. Const. art XIII C § 1(e)(2) 5 Government Code § 53758(b) 6 Government Code § 53758(b) HBTBID Management District Plan VISIT 20 March 27,2024 tiNONTIOG?0N 118 BEACH SURF CITY USA* D. Assessment The initial annual assessment rate was four percent (4%) of gross short-term room rental revenue. This Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1, 2024, or as soon as possible thereafter, and shall remain in effect until the end of the HBTBID's term. Based on the benefit received,assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. The term "gross room rental revenue" as used herein means: the consideration charged,whether or not received,for the occupancy of space in a lodging business valued in money,whether to be received in money,goods,labor or otherwise,including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected,including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However,the assessed lodging business may, at its discretion,pass the assessment on to transients. The amount of assessment,if passed on to each transient,shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the HBTBID assessment is identified separately it shall be disclosed as the "HBTBID Assessment." As an alternative, the disclosure may include the amount of the HBTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act,Government Code§13995 et seq. and shall be disclosed as the"Tourism Assessment." The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest The HBTBID shall reimburse the City of Huntington Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent HBTBID assessment are sought to be recovered in the same collection action by the City, the HBTBID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency: Any lodging business that fails to meet any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed. 3. Fraud: If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subparagraphs 1 and 2 of this subsection E. 4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent(0.5%) per month, HBTBID Management District Plan VISIT 21 March 27,2024 R ` HUNTIN6TON 119 BEACH SURF CITY USA° or fraction thereof, on the amount of the assessment, exclusive of penalties, form the date on which the remittance first became delinquent until paid. 5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid. 6. City not Responsible for Uncollected Amounts: The City shall not be responsible for uncollected amounts. F. Time and Manner for Collecting Assessments The HBTBID assessment will be implemented beginning February 1, 2019 and will continue for nine (9) years and five (5) months through June 30,2028. The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to VHB. VII. GOVERNANCE A. Owners' Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners' Association of the HBTBID as defined in Streets and Highways Code HBTBID Management District Plan VISIT 22 March 27,2024 ` HUNTINGTON 120 BEACH SURF CITY USA° §36612. The City Council has determined that Visit Huntington Beach will continue to serve as the Owners' Association for the HBTBID, upon execution of a renewed contract between the City and VHB. B. Brown Act and California Public Records Act Compliance An Owners'Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.The Owners' Association is,however,subject to government regulations relating to transparency,namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners'Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the VHB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners'Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners'Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The VHB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code 536650 (see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. HBTBID Management District Plan �i VISIT 23 March 27,2024 -' ' �' HUNTINGTON 121 BEACH SURF CITY USA° APPENDIX 1—LAW ***THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT*** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18.PARKING PART 7.PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1.General Provisions ARTICLE 1.Declarations 36600.Citation of part This part shall be known and may be cited as the"Property and Business Improvement District Law of 1994." 36601.Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following: (a)Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities,services,and activities in the business districts. (b)It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs,attract new businesses,and prevent the erosion of the business districts. (c)It is of particular local benefit to allow business districts to fund business related improvements, maintenance,and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d)Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city,even if property, businesses,or persons not assessed receive incidental or collateral effects that benefit them. (e)Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1)Crime reduction.A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2)Job creation. (3)Business attraction. (4)Business retention. (5)Economic growth. (6)New investments. (f)With the dissolution of redevelopment agencies throughout the state,property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities,and create a clean and safe environment. (g)Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h)The act amending this section is intended to provide the Legislature's guidance with regard to this act,its interaction with the provisions of Article XIII D of the Constitution,and the determination of special benefits in property-based districts. (1)The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts,contributing to blight and other underutilization of property. (2)Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore,for special benefits to exist as a separate and distinct category from general benefits,the HBTBID Management District Plan -'" VISIT 24 March 27,2024if HUNTINGTDN 122 BEACH SURF CITY USA° incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3)It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602.Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.This part.does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603.Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation,Limitation and Majority Protest Act of 1931 (Division 4(commencing with Section 2800)). 36603.5.Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604.Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect.Assessments levied under this part are not special taxes. ARTICLE 2.Definitions 36606."Activities" "Activities"means,but is not limited to,all of the following that benefit businesses or real property in the district: (a)Promotion of public events. (b)Furnishing of music in any public place. (c)Promotion of tourism within the district. (d)Marketing and economic development,including retail retention and recruitment. (e)Providing security,sanitation,graffiti removal,street and sidewalk cleaning,and other municipal services supplemental to those normally provided by the municipality. (f)Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5."Assessment" "Assessment"means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607."Business" HBTBID Management District Plan .. VISIT 25 March 27,2024 if�' HUNTINGTON BEACH 123 SURF CITY USA' "Business"means all types of businesses and includes financial institutions and professions. 36608."City" "City"means a city, county,city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code,the public member agencies of which includes only cities,counties,or a city and county,or the State of California. 36609."City council" "City council"means the city council of a city or the board of supervisors of a county,or the agency,commission,or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4."Clerk" "Clerk"means the clerk of the legislative body. 36609.5."General benefit" "General benefit"means,for purposes of a property-based district,any benefit that is not a"special benefit"as defined in Section 36615.5. 36610."Improvement" "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including,but not limited to,the following: (a)Parking facilities. (b)Benches,booths,kiosks,display cases,pedestrian shelters and signs. (c)Trash receptacles and public restrooms. (d)Lighting and heating facilities. (e)Decorations. (f)Parks. (g)Fountains. (h)Planting areas. (i)Closing,opening,widening,or narrowing of existing streets. (j)Facilities or equipment,or both,to enhance security of persons and property within the district. (k)Ramps,sidewalks,plazas,and pedestrian malls. (1)Rehabilitation or removal of existing structures. 36611."Management district plan"; "Plan" "Management district plan"or"plan"means a proposal as defined in Section 36622. 36612."Owners' association" "Owners' association"means a private nonprofit entity that is under contract with a city to administer or implement improvements,maintenance,and activities specified in the management district plan.An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity.An owners' association is a private entity and may not be considered a public entity for any purpose,nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9(commencing with Section 54950)of Part 1 of Division 2 of Title 5 of the Government Code),at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act(Chapter 3.5 (commencing with Section 6250)of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. "Property" "Property"means real property situated within a district. HBTBID Management District Plan r VISIT 26 March 27,2024 etotHUNTiNGTO 1 124 it BEACH SURF CITY USA 36614.5."Property and business improvement district"; "District" "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part. 36614.6."Property-based assessment" "Property-based assessment"means any assessment made pursuant to this part upon real property. 36614.7."Property-based district" "Property-based district"means any district in which a city levies a property-based assessment. 36615."Property owner"; "Business owner"; "Owner" "Property owner"means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council."Business owner"means any person recognized by the city as the owner of the business."Owner"means either a business owner or a property owner.The city council has no obligation to obtain other information as to the ownership of land or businesses,and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner,the signature of the authorized agent of the business owner shall be sufficient. 36615.5."Special benefit" "Special benefit" means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements,maintenance,or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. 36616."Tenant" "Tenant"means an occupant pursuant to a lease of commercial space or a dwelling unit,other than an owner. ARTICLE 3.Prior Law 36617.Alternate method of financing certain improvements and activities;Effect on other provisions This part provides an alternative method of financing certain improvements and activities.The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)of this division)is valid and effective and is unaffected by this part. CHAPTER 2.Establishment 36620.Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5.Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city.A city may not form a district within the unincorporated territory of a county without the consent of the board HBTBID Management District Plan VISIT 27 March 27,2024ti HUNTINGTOPI 125 BEACH SURF CITY USA' of supervisors of that county.A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621.Initiation of proceedings;Petition of property or business owners in proposed district (a)Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b)The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan.That summary shall include all of the following: (1)A map showing the boundaries of the district. (2)Information specifying where the complete management district plan can be obtained. (3)Information specifying that the complete management district plan shall be furnished upon request. (c)The resolution of intention described in subdivision(a)shall contain all of the following: (1)A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities,and the location and extent of the proposed district. (2)A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments,which shall be consistent with the requirements of Section 36623. 36622.Contents of management district plan The management district plan shall include,but is not limited to,all of the following: (a)If the assessment will be levied on property,a map of the district in sufficient detail to locate each parcel of property and,if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses,a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses,a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b)The name of the proposed district. (c)A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part.This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including,but not limited to,the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d)The improvements,maintenance,and activities proposed for each year of operation of the district and the maximum cost thereof.If the improvements,maintenance,and activities proposed for each year of operation are the same, a description of the first year's proposed improvements, maintenance, and activities and a statement that the same improvements,maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. HBTBID Management District Plan VISIT 28 March 27,2024 A° HUNTINGTON titBEACH 126 SURF CITY USA' (e)The total annual amount proposed to be expended for improvements,maintenance,or activities,and debt service in each year of operation of the district. If the assessment is levied on businesses,this amount may be estimated based upon the assessment rate.If the total annual amount proposed to be expended in each year of operation of the district is not significantly different,the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f)The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g)The time and manner of collecting the assessments. (h)The specific number of years in which assessments will be levied.In a new district,the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.Notwithstanding these limitations,a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds.The management district plan may set forth specific increases in assessments for each year of operation of the district. (i)The proposed time for implementation and completion of the management district plan. (j)Any proposed rules and regulations to be applicable to the district. (k) (1)A list of the properties or businesses to be assessed,including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business,to defray the cost thereof. (2)In a property-based district,the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement,the maintenance and operation expenses of a public improvement, or the cost of the activities.An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits,if any,from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency,the State of California,or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.The value of any incidental,secondary,or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (1)In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m)In a property-based district,the total amount of general benefits,if any. (n)In a property-based district, a detailed engineer's report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o)Any other item or matter required to be incorporated therein by.the city council. 36623.Procedure to levy assessment (a)If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b)If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed.A protest may be made orally or in writing by any interested person.Every written protest shall be filed with the clerk at or before the time fixed for the public hearing.The city council may waive any irregularity in the form or content of any written protest.A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and,if a person subscribing is not shown on the official records of the city as the owner of the business,the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay HBTBID Management District Plan VISIT 29 March 27,2024 HONTlNGTON 127 BEACH SURF CITY USA' 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c)If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment,the notice and protest and hearing procedure for the property assessment shall comply with subdivision(a),and the notice and protest and hearing procedure for the business assessment shall comply with subdivision(b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624.Changes to proposed assessments At the conclusion of the public hearing to establish the district,the city council may adopt,revise,change,reduce,or modify the proposed assessment or the type or types of improvements,maintenance,and activities to be funded with the revenues from the assessments.Proposed assessments may only be revised by reducing any or all of them.At the public hearing,the city council may only make changes in,to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance,and activities.Any modifications,revisions,reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625.Resolution of formation (a)If the city council, following the public hearing, decides to establish a proposed property and business improvement district,the city council shall adopt a resolution of formation that shall include,but is not limited to,all of the following: (1)A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses,or both within the district,a statement on whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities and the location and extent of the proposed district. (2)The number,date of adoption,and title of the resolution of intention. (3)The time and place where the public hearing was held concerning the establishment of the district. (4)A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5)A statement that the properties,businesses,or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6)A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention,as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided,but shall be limited to marketing or signage pointing to the district. (7)A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements,maintenance,and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit. (8)In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b)The adoption of the resolution of formation and,if required,recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. HBTBID Management District Plan 30 March 27,2024 VISIT NOOTINGTON 128 BEACH SURF CITY USA 36626.Resolution establishing district If the city council,following the public hearing,desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment,the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627.Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626,the clerk shall record a notice and an assessment diagram pursuant to Section 3114.No other provision of Division 4.5 (commencing with Section 3100)applies to an assessment district created pursuant to this part. 36628.Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements,or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone.If the assessment is to be levied on businesses,the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business,or on each category of business within each zone. 36628.5.Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners,or a combination of the two,pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph(2)of subdivision(k)of Section 36622. 36629.Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment,modification,or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business.The city council shall,to establish,modify,or disestablish a benefit zone or category of business,follow the procedure to establish,modify,or disestablish a property and business improvement district. 36630.Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision(h)of Section 36622,a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3.Assessments 36631.Time and manner of collection of assessments;Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment.Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax,and may provide for the same lien priority and penalties for delinquent payment.All delinquent payments for assessments levied pursuant to this part maybe charged interest and penalties. 36632.Assessments to be based on estimated benefit; Classification of real property and businesses;Exclusion of residential and agricultural property (a)The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may HBTBID Management District Plan t° VISIT 31 March 27,2024 , g HUNTINGTON 129 BEACH SURF CITY USA* • classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b)Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c)Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments,and shall not be subject to any assessment pursuant to this part. 36633.Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626.Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634.Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635.Request to modify management district plan The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636.Modification of plan by resolution after public hearing;Adoption of resolution of intention (a)Upon the written request of the owners' association,the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed' modifications. If the modification includes the levy of a new or increased assessment,the city council shall comply with Section 36623.Notice of all other public hearings pursuant to this section shall comply with both of the following: (1)The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2)A complete copy of the resolution of intention shall be mailed by first class mail,at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b)The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637.Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to • Division 4.5 (commencing with Section 3100),in a manner consistent with the provisions of Section 36627. CHAPTER 3.5.Financing 36640.Bonds authorized;Procedure;Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds,under the Improvement Bond Act of 1915(Division 10(commencing with Section 8500)) HBTBID Management District Plan 32 March 27,2024 VISIT HUNTINGT©N 130 BEACH SURF CITY USA or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b)The resolution adopted pursuant to subdivision(a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements,specify the number of annual installments and the fiscal years during which they are to be collected.The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c)Notwithstanding any other provision of this part,assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4.Governance 36650.Report by owners'association;Approval or modification by city council (a)The owners' association shall cause to be prepared a report for each fiscal year,except the first year,for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners' association's first report shall be due after the first year of operation of the district.The report may propose changes,including,but not limited to,the boundaries of the property and business improvement district or any benefit zones within the district,the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business,if a classification is used. (b)The report shall be filed with the clerk and shall refer to the property and business improvement district by name,specify the fiscal year to which the report applies,and,with respect to that fiscal year,shall contain all of the following information: (1)Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2)The improvements,maintenance,and activities to be provided for that fiscal year. (3)An estimate of the cost of providing the improvements,maintenance,and activities for that fiscal year. (4)The method and basis of levying the assessment in sufficient detail to allow each real property or business owner,as appropriate,to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5)The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6)The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c)The city council may approve the report as filed by the owners' association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651.Designation of owners' association to provide improvements,maintenance,and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements,maintenance,and activities described in the management district plan.If the management district plan designates an owners'association,the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5.Renewal 36660.Renewal of district;Transfer or refund of remaining revenues;District term limit HBTBID Management District Plan 33 March 27,2024 HUNTINGTON VISIT a, H 131 BEACH SURF CITY USA' (a)Any district previously established whose term has expired,or will expire,may be renewed by following the procedures for establishment as provided in this chapter. (b)Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues,shall be transferred to the renewed district.If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district,the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c)Upon renewal, a district shall have a term not to exceed 10 years, or,if the district is authorized to issue bonds,until the maximum maturity of those bonds.There is no requirement that the boundaries,assessments, improvements,or activities of a renewed district be the same as the original or prior district. CHAPTER 6.Disestablishment 36670.Circumstances permitting disestablishment of district;Procedure (a)Any district established or extended pursuant to the provisions of this part,where there is no indebtedness, outstanding and unpaid,incurred to accomplish any of the purposes of the district,may be disestablished by resolution by the city council in either of the following circumstances: (1)If the city council finds there has been misappropriation of funds,malfeasance,or a violation of law in connection with the management of the district,it shall notice a hearing on disestablishment. (2)During the operation of the district,there shall be a 30-day period each year in which assessees may request disestablishment of the district.The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district.Each successive year of operation of the district shall have such a 30-day period.Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied,the city council shall pass a resolution of intention to disestablish the district.The city council shall notice a hearing on disestablishment. (b)The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section.The resolution shall state the reason for the disestablishment,shall state the time and place of the public hearing,and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund;Use of outstanding revenue collected after disestablishment of district (a)Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid,derived from the levy of assessments,or derived from the sale of assets acquired with the revenues,or from bond reserve or construction funds,shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b)If the disestablishment occurs before an assessment is levied for the fiscal year,the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. HBTBID Management District Plan 34 g March 27,2024 VISIT HUNTINGTON 132 BEACH SURF CITY USA' APPENDIX 2-ASSESSED BUSINESSES* Business Name/ Identification Address, City,,State,ZIP NNumber� u Hyatt Regency Huntington Beach Resort 21500 Pacific Coast Hwy, Huntington Beach, CA 92648 &Spa The Waterfront Beach Resort, a Hilton 21100 Pacific Coast Hwy, Huntington Beach, CA 92648 Hotel Pasea Hotel &Spa 21080 Pacific Coast Hwy, Huntington Beach, CA 92648 Kimpton Shorebreak Resort 500 Pacific Coast Hwy, Huntington Beach, CA 92648 The Hotel Huntington Beach 7667 Center Ave, Huntington Beach, CA 92647 SpringHill Suites by Marriott 7872 Edinger Ave, Huntington Beach, CA 92647 Comfort Inn &Suites Huntington Beach 16301 Beach Blvd, Huntington Beach, CA 92647 Extended Stay America 5050 Skylab Rd, Huntington Beach, CA 92647 Huntington Suites 7971 Yorktown Ave, Huntington Beach, CA 92648 Best Western Surf City 19360 Beach Blvd, Huntington Beach, CA 92648 Huntington Beach Inn 800 Pacific Coast Hwy, Huntington Beach, CA 92648 Travelodge Ocean Front 17205 Pacific Coast Hwy,Sunset Beach, CA 90742 Beach Inn Motel 18112 Beach Blvd, Huntington Beach, CA 92648 Starlight Inn 18382 Beach Blvd, Huntington Beach, CA 92648 777 Motor Inn 16240 Pacific Coast Hwy, Huntington Beach, CA 92649 Oceanview Motel 16196 Pacific Coast Hwy, Huntington Beach, CA 92649 Best Western Harbour Inn &Suites 16912 Pacific Coast Hwy,Sunset Beach, CA 90742 Ocean Surf Inn &Suites 16555 Pacific Coast Hwy,Sunset Beach, CA 90742 Surf City Inn 16220 Pacific Coast Hwy, Huntington Beach, CA 92649 Huntington Surf Inn 720 Pacific Coast Hwy, Huntington Beach, CA 92648 Hotel Europa 7561 Center Ave, Huntington Beach, CA 92647 STR-2021-0158 7771 Ellis Avenue Huntington Beach CA 92648 STR-2021-0174 529 Lake Street, Huntington Beach CA 92648 STR-2021-0060 9151 Adams Avenue Huntington Beach CA 92646 STR-2021-0165 4542 Prelude Drive Huntington Beach CA 92649 STR-2022-0016 5922 Donlyn Drive Huntington Beach CA 92649 STR-2022-0033 207 11th Street, Huntington Beach CA 92648 STR-2022-0028 8462 Modale Drive Huntington Beach CA 92646 STR-2021-0155 112 8th Street, Huntington Beach CA 92648 STR-2022-0036 16811 14th Street#1 Sunset Beach CA 90742 STR-2022-0053 16511 23rd Street#1 Sunset Beach CA 90742 STR-2021-0164 714 Oceanhill Drive Huntington Beach CA 92648 STR-2022-0035 912 Main Street, Huntington Beach CA 92648 STR-2022-0032 17162 Elm Lane, Huntington Beach CA 92647 STR-2022-0039 16752 16th Street#1 Sunset Beach CA 90742 STR-2021-0136 16571 S Pacific Avenue Sunset Beach CA 90742 STR-2021-0166 2300 Delaware Street# 1 Huntington Beach CA 92648 STR-2021-0152 231 1st Street#7 Huntington Beach CA 92648 STr-2022-0051 16651 S Pacific Avenue#1 Sunset Beach CA 90742 HBTBID Management District Plan 35 March 27,2024 VISIT NUNTIN6T0t 133 BEACH SURF CITY USA' Business Name/Identification 'Address;City,State,ZIP Number< w STR-2021-0091 16761 Bayview Drive Sunset Beach CA 90742 STR-2022-0056 17116 4th Street#2 Sunset Beach CA 90742 STR-2022-0077 17029 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0083 8101 Ellis Avenue Huntington Beach CA 92646 STR-2023-0049 20632 Goshawk Lane Huntington Beach CA 92646 STR-2022-0049 16917 Park Avenue#2 Sunset Beach CA 90742 STR-2022-0073 8312 Snowbird Drive Huntington Beach CA 92646 STR-2022-0021 16385 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0012 20731 Spindrift Lane Huntington Beach CA 92646 STR-2022-0086 18091 Newland Street Huntington Beach CA 92646 STR-2022-0087 212 6th Street, Huntington Beach CA 92648 STR-2022-0031 216 16th Street, Huntington Beach CA 92648 STR-2022-0075 726 14th Street, Huntington Beach CA 92648 STR-2022-0085 1106 Huntington Street Huntington Beach CA 92648 STR-2022-0095 115 Huntington Street Huntington Beach CA 92648 STR-2021-0169 17201 Sims Lane Huntington Beach CA 92649 STR-2021-0146 16772 Pacific Coast Highway Sunset Beach CA 90742 STR-2021-0133 610 Main Street, Huntington Beach CA 92648 STR-2022-0099 225 2nd Street, Huntington Beach CA 92648 STR-2022-0003 403 10th Street, Huntington Beach CA 92648 STR-2022-0105 9192 Paddock Circle Huntington Beach CA 92646 STR-2022-0100 19961 Estuary Lane Huntington Beach CA 92646 STR-2022-0107 301 16th Street, Huntington Beach CA 92648 STR-2022-0013 221 6th Street, Huntington Beach CA 92648 STR-2022-0081 609 Lake Street, Huntington Beach CA 92648 STR-2022-0106 16591 Lucia Lane Huntington Beach CA 92647 STR-2022-0109 16841 S Pacific Avenue Sunset Beach CA 90742 STR-2021-0040 4671 Los Patos Avenue Huntington Beach CA 92649 STR-2022-0102 17891 Caledonia Circle Huntington Beach CA 92647 STR-2023-0062 16421 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0091 8331 Varas Circle Huntington Beach CA 92646 STR-2022-0117 6871 Oxford Drive Huntington Beach CA 92647 STR-2022-0122 520 9th Street, Huntington Beach CA 92648 STR-2022-0082 604 18th Street, Huntington Beach CA 92648 STR-2022-0126 1003 California Street#B Huntington Beach CA 92648 STR-2023-0092 16742 Bayview Drive Sunset Beach CA 90742 STR-2023-0106 16361 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0004 306 14th Street, Huntington Beach CA 92648 STR-2023-0110 16778 Pacific Coast Highway#A Sunset Beach CA 90742 STR-2023-0109 8231 Munster Drive Huntington Beach CA 92646 STR-2023-0098 5231 Meadowlark Drive Huntington Beach CA 92649 STR-2022-0124 6822 Sylvia Drive Huntington Beach CA 92647 STR-2023-0118 16756 Pacific Coast Highway Sunset Beach CA 90742 HBTBID Management District Plan VISIT 36 March 27,2024 S lir' HUNTINGTON BEACH 134 SURF CITY USA' Business Name%Identification ;Address,City,State,ZIP° Number STR-2021-0008 7561 Danube Drive Huntington Beach CA 92647 STR-2023-0116 16855 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2023-0043 8261 Munster Drive Huntington Beach CA 92646 STR-2022-0116 15311 Yorkshire Lane Huntington Beach CA 92647 STR-2023-0095 512 14th Street, Huntington Beach CA 92648 STR-2023-0102 603 215t Street, Huntington Beach CA 92648 STR-2022-0110 6062 Kelsey Circle Huntington Beach CA 92647 STR-2022-0127 214 Goldenwest Street Huntington Beach CA 92648 STR-2022-0071 17312 Lee Circle Huntington Beach CA 92647 STR-2021-0171 305 California Street#B Huntington Beach CA 92648 STR-2022-0118 15971 Wicklow Lane Huntington Beach CA 92647 STR-2022-0084 5381 Kenilworth Drive Huntington Beach CA 92649 STR-2023-0124 16575 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2022-0134 19132 Stingray Lane Huntington Beach CA 92646 STR-2022-0097 841 Frankfort Avenue Huntington Beach CA 92648 STR-2022-0144 17151 Granada Lane Huntington Beach CA 92647 STR-2021-0175 7651 Clay Avenue Huntington Beach CA 92648 STR-2023-0117 6045 Summerdale Drive Huntington Beach CA 92647 STR-2022-0108 210 7th Street, Huntington Beach CA 92648 STR-2023-0089 17020 Edgewater Lane Huntington Beach CA 92649 STR-2022-0094 16778 Bayview Drive#A Sunset Beach CA 90742 STR-2023-0134 9302 Candlewood Drive Huntington Beach CA 92646 STR-2022-0139 7562 Washington Drive Huntington Beach CA 92647 STR-2023-0142 411 14th Street#C Huntington Beach CA 92648 STR-2022-0140 17220 Courtney Lane Huntington Beach CA 92649 STR-2023-0127 16541 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0147 218 19th Street#B Huntington Beach CA 92648 STR-2023-0151 307 7th Street#C Huntington Beach CA 92648 STR-2023-0150 221 Chicago Avenue Huntington Beach CA 92648 STR-2022-0119 4642 Minuet Drive Huntington Beach CA 92649 STR-2023-0133 20681 Chaucer Lane Huntington Beach CA 92646 STR-2022-0005 409%6th Street, Huntington Beach CA 92648 STR-2023-0160 1508 Olive Avenue#A Huntington Beach CA 92648 STR-2022-0067 221 2"d Street, Huntington Beach CA 92648 STR-2022-0152 5131 Dovewood Drive Huntington Beach CA 92649 STR-2023-0112 16391 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2021-0151 427 Lake Street, Huntington Beach CA 92648 STR-2022-0111 5601 Rogers Drive Huntington Beach CA 92649 STR-2022-0088 426 Goldenwest Street Huntington Beach CA 92648 STR-2022-0154 119 6th Street, Huntington Beach CA 92648 STR-2021-0112 14895 Sunnycrest Lane Huntington Beach CA 92647 STR-2022-0158 17312 Norcon Circle Huntington Beach CA 92649 STR-2023-0187 323 19th Street# 1 Huntington Beach CA 92648 HBTBID Management District Plan 37 March 27,2024 VISIT T ' HUNTiNGTON 135 BEACH SURF CITY USA' Business Name/.I'dentification Address,-City, State,ZIP Number STR-2023-0164 407 Alabama Street Huntington Beach CA 92648 STR-2023-0189 235 1st Street, Huntington Beach CA 92648 STR-2022-0163 1910 Alsuna Lane Huntington Beach CA 92648 STR-2023-0193 16962 9th St 1, Sunset Beach CA 90742 STR-2023-0211 17012 N Pacific Ave Sunset Beach CA 90742 STR-2023-0198 17016 7th St,Sunset Beach CA 90742 STR-2022-0165 8142 Sterling Drive Huntington Beach CA 92646 STR-2022-0164 19142 Stingray Lane Huntington Beach CA 92646 STR-2023-0196 1316 Alabama Street Huntington Beach CA 92648 STR-2022-0054 216 10th Street, Huntington Beach CA 92648 STR-2022-0159 222 Chicago Avenue# B Huntington Beach CA 92648 STr-2022-0150 9692 Durham Drive Huntington Beach CA 92646 STR-2022-0066 406 7th Street, Huntington Beach CA 92648 STR-2022-0175 632 Indianapolis Avenue Huntington Beach CA 92648 STR-2022-0168 16772 Broadway#4 Huntington Beach CA 92649 STR-2022-0146 19821 Bushard Street Huntington Beach CA 92646 STR-2022-0169 1411 Delaware Street#1 Huntington Beach CA 92648 STR-2022-0161 1915 Delaware Street Huntington Beach CA 92648 STR-2023-0008 228 Chicago Avenue# 1 Huntington Beach CA 92648 STR-2022-0170 16561 Tiber Lane Huntington Beach CA 92647 STR-2023-0011 3854 Humboldt Drive Huntington Beach CA 92649 STR-2022-0176 2015 California Street Huntington Beach CA 92648 STR-2022-0157 8841 Jarrett Circle Huntington Beach CA 92647 STR-2022-0166 14582 Aspen Circle Huntington Beach CA 92647 STR-2023-0010 1107 Lake Street Huntington Beach CA 92648 STR-2022-0113 16681 Landau Lane Huntington Beach CA 92647 STR-2022-0173 6421 Sligo Circle Huntington Beach CA 92647 STR-2023-0023 215 Huntington Street#A Huntington Beach CA 92648 STR-2023-0018 636 Indianapolis Avenue Huntington Beach CA 92648 STR-2022-0172 18276 Lisa Lane, Huntington Beach CA 92646 STR-2022-0155 5782 Spa Drive, Huntington Beach CA 92647 STR-2023-0014 7651 Rhone Lane Huntington Beach CA 92647 STR-2023-0046 113 6th Street, Huntington Beach CA 92648 STR-2023-0016 210 6th Street, Huntington Beach CA 92648 STR-2021-0123 447 Lake Street, Huntington Beach CA 92648 STR-2023-0026 946 11th Street, Huntington Beach CA 92648 STR-2021-0172 6421 Jasmine Drive Huntington Beach CA 92648 STR-2023-0060 215 Portland Avenue Huntington Beach CA 92648 STR-2023-0054 610 11th Street, Huntington Beach CA 92648 STR-2023-0058 222 18th Street#A Huntington Beach CA 92648 STR-2021-0103 16525 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0039 743 13th Street, Huntington Beach CA 92648 STR-2023-0040 6661 Wrenfield Drive Huntington Beach CA 92647 HBTBID Management District Plan . VISIT 38 March 27,2024 HUNTINGTON 136 BEACH SURF CITY USA* Business Name]Identification .Address; City,State,ZIP Number STR-2023-0021 117 6th Street, Huntington Beach CA 92648 STR-2023-0047 8252 Michael Drive Huntington Beach CA 92647 STR-2023-0029 218 18th Street# B Huntington Beach CA 92648 STR-2023-0057 7882 Aldrich Drive#102 Huntington Beach CA 92647 STR-2023-0041 21891 Seacrest Lane Huntington Beach CA 92646 STR-2023-0033 20441 Regal Circle Huntington Beach CA 92646 STR-2023-0036 213 17th Street#A Huntington Beach CA 92648 STR-2023-0078 14892 Quill Circle Huntington Beach CA 92647 STR-2023-0103 8371 Friesland Drive Huntington Beach CA 92647 STR-2023-0076 6921 Tucana Drive Huntington Beach CA 92647 STR-2023-0051 510 Alabama Street Huntington Beach CA 92648 STR-2023-0056 2102 Pacific Coast Highway Huntington Beach CA 92648 STR-2023-0034 8131 Terry Drive Huntington Beach CA 92647 STR-2022-0174 8192 Falmouth Drive Huntington Beach CA 92646 STR-2023-0075 16141 Malaga Lane#A Huntington Beach CA 92647 STR-2023-0108 404 11th Street, Huntington Beach CA 92648 STR-2023-0125 16605 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0111 10051 Cutty Sark Drive Huntington Beach CA 92646 STR-2023-0055 16892 Baruna Lane Huntington Beach CA 92649 STR-2023-0144 16782 Heritage Lane Huntington Beach CA 92647 STR-2023-0061 601 7th Street, Huntington Beach CA 92648 STR-2022-0041 1020 Pacific Coast Highway#B Huntington Beach CA 92648 STR-2023-0020 414 8th Street, Huntington Beach CA 92648 STR-2023-0184 20282 Colonial Circle Huntington Beach CA 92646 STR-2023-0181 20662 Goshawk Lane Huntington Beach CA 92646 STR-2023-0196 1316 Alabama Street 1 Huntington Beach CA 92648 STR-2023-0188 19621 Occidental Lane Huntington Beach CA 92646 STR-2023-0094 9632 Peppertree Drive Huntington Beach CA 92646 STR-2023-0210 111 7th Street, Huntington Beach CA 92648 STR-2023-0218 201 Huntington Street 201 Huntington Beach CA 92648 STR-2023-0182 17052 Greentree Lane Huntington Beach CA 92649 STR-2023-0204 17622 Prescott Lane Huntington Beach CA 92647 STR-2023-0217 15432 Shasta Lane Huntington Beach CA 92647 STR-2023-0170 17082 5th Street 2 Sunset Beach CA 90742 STR-2023-0213 10401 Monitor Drive Huntington Beach CA 92646 STR-2023-0222 17165 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0180 16612 Graham Place Huntington Beach CA 92649 STR-2024-0004 6701 Walton Drive Huntington Beach CA 92647 STR-2024-0008 21252 Banff Lane Huntington Beach CA 92646 STR-2023-0165 610 17th Street, Huntington Beach CA 92648 STR-2023-0202 17026 7th Street,Sunset Beach CA 90742 STR-2023-0136 16721 Phelps Lane Huntington Beach CA 92649 STR-2024-0003 119 9th Street, Huntington Beach CA 92648 HBTBID Management District Plan 39 March 27,202410 VISIT HOi1TU 6TON 137 BEACH SURF CITY USA" Business Name/Identification Address,°City,State,ZIP e Nunber' STR-2023-0178 510 9th Street, Huntington Beach CA 92648 STR-2024-0014 17155 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0149 16791 Bayview Drive Sunset Beach CA 90742 STR-2023-0066 9971 Kings Canyon Drive Huntington Beach CA 92646 STR-2023-0186 124 Main Street 303 Huntington Beach CA 92648 STR-2024-0015 8021 Mermaid Circle Huntington Beach CA 92646 STR-2024-0025 115 7th Street, Huntington Beach CA 92648 STR-2024-0032 516 Huntington Street Huntington Beach CA 92648 *As of March 2024 **The list was developed with the most reliable information provided; however,the list may contain discrepancies.This list shall include any future to-be opened lodging businesses.Any lodging business that may have been missed in this list, but is still within the boundaries of the HBTBID,shall also be subject to assessment. HBTBID Management District Plan 4- VISIT 40 March 27,2024 � HUNTII GTON 138 BEACH SURF CITY USA' RESOLUTION NO. 2024-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO MODIFY THE MANAGEMENT DISTRICT PLAN OF THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT (HBTBID) WHEREAS,the City Council of the City of Huntington Beach initially created the Huntington Beach Tourism Business Improvement District(HBTBID)in 2014 by Resolution No. 2014-72; and WHEREAS,the City Council renewed the HBTBID in 2018 by Resolution No. 2018- 84, and adopted the current Management District Plan(MDP) of the HBTBID; and WHEREAS, the Property and Business Improvement District Law of 1994, Streets and Highways Code §36600 et seq., allows cities to modify the MDP at the request of the Owners' Association; and WHEREAS,the HBTBID Owners' Association, Visit Huntington Beach, has requested modification of the MDP. NOW, THEREFORE, by the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The recitals set forth herein are true and correct. 2. The City Council declares its intention to modify the HBTBID MDP. 3. The proposed modification of the HBTBID MDP will modify the HBTBID assessment rate. The current HBTBID assessment rate is four percent(4?/0) of gross short-term room rental revenue. The modified assessment rate is six percent(6%) of gross short-term room rental revenue, effective July 1, 2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. 4. The time and place for a public meeting for comments on the modified HBTBID are set for May 7, 2024, at 6:00 PM, or as soon as possible thereafter as the matter may be heard, at 2000 Main Street,Huntington Beach, CA 92648. 5. The time and place for a public hearing on modification of the HBTBID MDP is set for June 4, 2024, at 6:00 PM, or as soon as possible thereafter as the matter may be heard, at 2000 Main Street, Huntington Beach, CA 92648. The City Clerk is directed to provide written notice to lodging businesses assessed within the modified HBTBID of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Code §36623,no later than April 20, 2024. 6. The complete proposed, modified MDP is on file with the City Clerk and may be reviewed upon request. RESOLUTION NO. 2024-13 7. At the public meeting and hearing, the testimony of all interested persons for or against the modification of the HBTBID may be received. If at the conclusion of the public hearing,there are of record written protests by the owners of the lodging businesses within the modified HBTBID that will pay more than fifty percent (50%) of the estimated total assessment of the entire HBTBID, no further proceedings to modify the HBTBID shall occur for a period of one (1) year. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of April, 202 Crik— Mayo REV D AN PR VED: APPROVED AS TO FORM: / ctq! City Manager Ci Attorney ATTEST: INITIATED AND APPROVED: triiii, se6714,71 /l/d-Z____ City Clerk ire or of Community Development 2 23-13464/319475 Res. No. 2024-13 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, 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 April 16, 2024 by the following vote: AYES: Moser, Bolton, Burns, Van Der Mark, Strickland, McKeon, Kalmick NOES: None ABSENT: None RECUSE: None • 6?it I( t 4Id7144141414d City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California 0,,,............ Al'\\%11 1 N a r .. 04/ Request to Modify the * eases Management District Plan •.. 4c1 • ORPORAre •. �` for the Huntington Beach _ ••• <c-` \ Tourism Business ,,,;,,e ., -17 Improvement District .,- \ , ,,( efi,„__ ____.. , , ,-, _ '- --/ )_/.',"/_ ! "%-.• t -. ---'---- - ---- . ., -:- - - ---.-* 4t - AO , % /s6-'. •- - •- P• O ••...• OF t ,,#£OUNTN� April 16, 2024 I� r4 r 141 Background .„,„,,49.4,4,......... • HB Tourism Business Improvement District (HBTBID) saes' ING7— l �y,o.°" raaee�ey�' formed in 2014 pursuant to the CA Property and # 4_ p �.r-�� �� °�. Business Improvement District Law of 1994 tk x tk —� , `' „ • HBTBID purpose is to market HB to increase � z�. �-..a e e� overnight room sales ��cFc °' '�°1,.... ` 00 g ..°ANT`{ ,�,,, • Funding derived from assessments collected from lodging businesses (paid by guests) operating within City boundaries VISIT • HBTBID was renewed in 2019 and runs through HUNTINGTON June 30, 2028 BEACH • Management District Plan (MDP) identifies funds SURE CITY USA® and outlines programs 142 II B T B I D GARDE_GROVE FREE T �ARDEN.nOVE FREEI�AY aos 111 • Comprised of approx. 21 hotels/motels " E and 200 Short Term Rentals (STRs) • Current assessment rate is 4% of gross HUNTINGTON BEACH short-term lodging revenue (separate i x from 10% Transient Occupancy Tax (TOT) collected by City) �a t 1 • Boundary includes all lodging businesses, existing and in the future, ti,y�q r within the City • Total assessments approximately $7 million for FY 23-24PACIFIC. OCFAN 143 Visit Huntington Beach VHB • Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, serves as the HBTBID Owners' Association 2019-2028 VISIT • Consists of 17 staff and 22 board members , 1 -" a v- ' ' �: ' . rt B � xa ((((ggo�ryry� �}A TThny t e „k 4.4 HEJU INGTOI • Responsible for implement the MDP EAc� programs and submitting an annual report �� to City Council " -,, { • Management Agreement between City and „ - - `� m y VHB outlines responsibilities of both �� parties related to HBTBID funding and d � - programs HUNTINGTON BEACH TOURISM BUSINESS.IMPROVEMENT DISTRICT • iYIANAGEMENT DISTRICT PLAN' City collects assessments and then distributes funds to VHB 144 HBTBID Modification Request • 2019 - City began retaining 100% of TOT revenues; Assessment rate increased 3% to 4% to mitigate TOT loss • HBTBID assessment is the only dedicated funding source to market Surf City USA • Competitive cities have dedicated more resources and are adding lodging properties/attractions making funding deficit gap greater each year • VHB is seeking to modify the MDP to increase assessment rate from 4% to 6% to remain competitive and ensure that tourism promotion funding is adequate pp�� VHB Comparative Set 6 ,Wifiej AttniMMTK 40 1io � eAssessmenttw.to T Ra c., eeA,.. .., ..A A ski. "`a:k .ckrt .'..wx o�„ Charge ;ro n ij $17,500,000 ' 2% room revenue I; 15% r� 17% °°m mot if es`r $10,800,000 1% room revenue 13% 14% Newport a " :I 10,500,000 3% room revenue I 10% 13% �g��.� v_4 $17,000,000µ:. 1% room revenue 14% 15% D i $41,000,000 2% room revenue 10% 12% n is Obispo 4` $10,400,000 1% room revenue 10% 11% • gar • ants bbra $10,700,000 2%room revenue 12% i 14% 145 OC Product Additions/Enhancements NEWPORT BEACH OC VIBE • Vea Newport Beach • Hotel (500 Rooms) • Pendry hotel • RH Gallery & Rooftop Café DISNEYLAND • Disneyland Hotel ANAHEIM • Vacation Club Tower • JW Marriott Anaheim Resort ▪ Pixar Pier Hotel • The Westin Anaheim Resort • Downtown Disney F a84:,'A^ n- 4 w,,, irk '� ^^a'..xa,„±` ,R , ff . ° 0 Fp 7 per,t,:x� s " SOUTH COUNTY ,,,��:�,ii a ,- � ,, ., • Waldorf Astoria ;1�4' �=,',' ; ' d. `r � • Ritz Carlton ,I, .� o� r • r #; =. 'x'...g11gA 1Q� .., i- .. • Dana Point Harbor , , 7 t • i,,, , CO it _ ; ,, API O t I . . ORI iscila m 'fii, ✓ r F! a� w r Ittk�� 11, 1 ...' ` Tt �!•4r.,1. .. _... °� la1F i ° c',s, �jr' xx t 4 �yj t; Proposed Modified Budget Sales & Marketing (65%) • SurfCityUSA.com website, media buys � zff 'IDit and seasonal marketing campaigns, � g� C •ate- p r � � w# � �f ® rrepose public relations, social media, consumer ; Sales & Marketing . t 65% advertising, the official Visitor Guide, maps, historical walking tours and the Tourism Enhancemen t Programs I. 10% Surf City USA Barrel Trail, and F_ destination meeting sales. Administration . { 19% m .19% Contingency/Reserve. 8% 5% Tourism Enhancement Programs (10%) • Elevate the visitor experience (improved City Admin Fee _ � �� y 1% 1%� wayfinding signage, temporary summer beach restrooms, a nighttime Total Budget (Approximately) $7M $10M ambassador program, infrastructure improvements, improved accessibility, and more. 147 Proposed Modified Budget 2024 VHB PROPOSED MODIFIED BUDGET: Annual Assessment Budget $10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2% increase in TBID assessments,VHB forecasts its budget to be approximately$10M.This amount is reflected below. All proposed programs funded by TBID assessments must be approved by the VHB Board during the annual budget process and must adhere to state laws governing these assessment expenditures. Contingency/Reserve City Admin Fee $500,000(5%) $100,000(1%) Administration $1,900,000(19%) Sales&Marketing $6,500,000(65%) . Tourism Enhancement Programs $1,000,000(10%) _ -- • Includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE) Programs from 2019-2024 MDP 148 HBTBID Modification Schedule Resolution • Upon VHB written request, City Council may adopt a Resolution Of April 16 of Intention (ROI) which states the proposed modification and Intention initiates MDP modification proceedings • Notice of proposed modification mailed at least 45 days prior to public hearing April Notice Ma •. ROI mailed to each lodging business owner at least 10 days y before public hearing • Newspaper publishing at least 7 days before public hearing Public • Public meeting to allow public testimony Meeting May 7 • No Council action required Public • Public hearing, not more than 90 days after the adoption of the ROI, on the proposed MDP modifications Hearing CityCouncil, followingthepublic hearing, maydecide to modify 4 g. & Resolution of the HBTBID and adopt a Resolution of Modification Modification 149 Management Ag reement Amendme • Management Agreement between City and VHB outlines responsibilities of both parties related to HBTBID funding and programs • If the MDP is modified, then the Management Agreement would be amended to define specific Tourism Enhancement Programs that both the City and VHB would fund during the remainder of HBTBID term. Wayfinding Downtown Parking Structure Upgrades Walkability & Connectivity Downtown Specific Plan Improvements Temporary Beach Restrooms ? Circuit Shuttle Nighttime Ambassador Program PCH & 6th Pedestrian Path Accessibility 3 All-Inclusive Playground Upgrades Bike Valet Bluff Top Park Lighting Beach Event Infrastructure Enhanced Downtown Maintenance Improved Surf Museum for. LA28 Restroom Upgrades 150 Recommendation • Adopt Resolution No. 2024-13 declaring the City's Intention to Modify the Management District Plan for the Huntington Beach Tourism Business Improvement District, • Set a Public Meeting date of May 7, 2024, and • Set a Public Hearing date of June 4, 2024 151 • • Questions ? ., , ,._ e.„:„. ...i . . .. , _. . . . , .:. . .. . . .. , . .. . . .. . , ..„.,. ...„ , .. . , .„?•4.- .': " . . -, . r..--*ST "Atthcs„iiiTt:` - ,,,- ' - i' I 1 I Was. 7, ,,+` .k "r"- jt " ',al [ },y(, ...r sz 3 '- , S='u;.,.� t- A Lr-,..., ` "/ri i ,"`gym m _ u it !'L aji. { ve- -x ", rza -.,-y!",. .e-•:'. j . ;; .r. • q i j P' = s� , • }�y .. yea ° ��' R �, d wt.6 }y t �'�"�.r�i mil'. .161 It � �� '+, t g7`� • �A p� M PROOF OF SERVICE OF PAPERS STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) I am employed in the County of Orange, State of California. I am over the age of 18 and not a party to the within action; my business address is 2000 Main Street, Huntington Beach, CA 92648. Pursuant to Code of Civil Procedure § 1094.6, on April 19, 2024, I served the foregoing documents(s) described as: Resolution No. 2024-13, A Resolution of the City Council of the City of Huntington Beach Declaring its Intention to Modify the Management District Plan of the Huntington Beach Tourism Business Improvement District (HBTBID) on the interested parties in this action by placing a true copy thereof in a sealed envelope addressed as follows: 220 Occupants/Owners — See label list a. [X] BY MAIL -- I caused such envelopes to be deposited in the mail at Huntington Beach, California. I am "readily familiar" with the firm's practice of collection and processing correspondence for mailing. It is deposited with U.S. Postal Service on that same day in the ordinary course of business, with postage thereon fully prepaid. I am aware that, on motion of a party served, service is presumed invalid if postal cancellation date or postage meter date is more than 1 day after date of deposit for mailing in the affidavit. b. [ ] BY MAIL -- By depositing a true copy thereof in a sealed envelope with postage thereon fully prepaid in the United States mail at Huntington Beach, California, addressed to the address shown above. c. [ ] BY DELIVERY BY HAND to the office of the addressee. d. [ ] BY PERSONAL DELIVERY to the person(s) named above. e. [ ] BY FAX TRANSMISSION to No. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Execut on April 19, 2024, at Huntington Beach, California. Senior Deputy City Clerk g:/followup/appeal/!!proof of service letter!!.doc Mirette Attalla , Tom Sanetti Aziz Gouda 7771 Ellis Avenue 529 Lake Street 9151 Adams Avenue Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92646 STR-2021-0158 STR-2021-0174 STR-2021-0060 Hoang Duong Adele Mcvicker Jon Whitcomb 4542 Prelude Drive 5922 Donlyn Drive 207 11th Street Huntington Beach CA 92649 Huntington Beach CA 92649 Huntington Beach CA 92648 STR-2021-0165 STR-2022-0016 STR-2022-0033 Christine Le Hoan Vu Truong Luis Armona 8462 Modale Drive 112 8th Street 16811 14th Street# 1 Huntington Beach CA 92646 Huntington Beach CA 92648 Sunset Beach CA 90742 STR-2022-0028 STR-2021-0155 STR-2022-0036 Jason Kist Michael Fein Janine Koury ' 16511 23rd Street# 1 714 Oceanhill Drive 912 Main Street Sunset Beach CA 90742 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2022-0053 STR-2021-0164 STR-2022-0035 Trung Le Nancy Munoz Tommy Bell 17162 Elm Lane 16752 16th Street# 1 16571 S Pacific Avenue Huntington Beach CA 92647 Sunset Beach CA 90742 Sunset Beach CA 90742 STR-2022-0032 STR-2022-0039 STR-2021-0136 Gabriel Stubin Dana Bennett David Yellin 2300 Delaware Street# 231 1st Street#7 16651 S Pacific Avenue# 1 Huntington Beach CA 92648 Huntington Beach CA 92648 Sunset Beach CA 90742 STR-2021-0166 STR-2021-0152 STr-2022-0051 Larry Zoelle . Kassie Parker Larry Malone 16761 Bayview Drive 17116 4th Street#2 17029 S Pacific Avenue Sunset Beach CA 90742 Sunset Beach CA 90742 Sunset Beach CA 90742 STR-2021-0091 STR-2022-0056 STR-2022-0077 Siavash Kademi Bob Myers John Lamping 8101 Ellis Avenue 20632 Goshawk Lane 16917 Park Avenue#2 Huntington Beach CA 92646 Huntington Beach CA 92646 Sunset Beach CA 90742 STR-2022-0083 STR-2023-0049 STR-2022-0049 Man Tuyet Hue Kristi Adkins Tu Anh Luong 8312 Snowbird Drive 16385 S Pacific Avenue 20731 Spindrift Lane Huntington Beach CA 92646 Sunset Beach CA 90742 Huntington Beach CA 92646 STR-2022-0073 : STR-2022-0021 STR-2022-0012 Farid Ghaheri Danny Wonn Oanh Le 18091 Newland Street 212 6th Street 216 16th Street Huntington Beach CA 92646 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2022-0086 STR-2022-0087 STR-2022-0031 PO. 5M-121-I PH (,/u r 04 h a-0 4 m a-E Y m1-, - i sir►bi-P1 . a{- ID Derek Trabilcy So Young Kim Thomas Kwon 726 14th Street 1106 Huntington Street 115 Huntington Street Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2022-0075 STR-2022-0085 STR-2022-0095 Judy Jew Charyl May David Housholder 17201 Sims Lane 16772 Pacific Coast Highway 2 610 Main Street Huntington Beach CA 92649 Sunset Beach CA 90742 Huntington Beach CA 92648 STR-2021-0169 STR-2021-0146 STR-2021-0133 Binh Vo Joseph Santiago Michael Steckman 225 2nd Street 403 10th Street 9192 Paddock Circle Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92646 STR-2022-0099 STR-2022-0003 STR-2022-0105 Tony Le Kim Chi Huynh Mailan Pham 19961 Estuary Lane 301 16th Street 221 6th Street Huntington Beach CA 92646 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2022-0100 STR-2022-0107 STR-2022-0013 June Yen My-Linh Nguyen Paul Lussman 609 Lake Street 16591 Lucia Lane 16841 S Pacific Avenue Huntington Beach CA 92648 Huntington Beach CA 92647 Sunset Beach CA 90742 STR-2022-0081 STR-2022-0106 STR-2022-0109 James Nguyen ThanhLoan Nguyen Jack Markovitz 4671 Los Patos Avenue 17891 Caledonia Circle 16421 S Pacific Avenue Huntington Beach CA 92649 Huntington Beach CA 92647 Sunset Beach CA 90742 STR-2021-0040 STR-2022-0102 STR-2023-0062 Deborah Zimmerman Trevor Barker Merna Meyer 8331 Varas Circle 6871 Oxford Drive 520 9th Street Huntington Beach CA 92646 Huntington Beach CA 92647 Huntington Beach CA 92648 STR-2023-0091 STR-2022-0117 STR-2022-0122 Dale Holzer Walter Callerio James Griffin 604 18th Street 1003 California Street#B 16742 Bayview Drive Huntington Beach CA 92648 Huntington Beach CA 92648 Sunset Beach CA 90742 STR-2022-0082 STR-2022-0126 STR-2023-0092 Stephen Finlay Jennifer Lahtinen Michael Low 16361 S Pacific Avenue 306 14th Street 16778 Pacific Coast Highway#A Sunset Beach CA 90742 Huntington Beach CA 92648 Sunset Beach CA 90742 STR-2023-0106 STR-2022-0004 STR-2023-0110 Sandra Fryan Kathryn Levassiur Thomas Ngo 8231 Munster Drive 5231 Meadowlark Drive 6822 Sylvia Drive Huntington Beach CA 92646 Huntington Beach CA 92649 Huntington Beach CA 92647 STR-2023-0109 STR-2023-0098 STR-2022-0124 PO- 5I1-12--I PE} (vJ 1424 IA>nl Ch.Ell. a-(-[-1el mt- iSiri ct cPIAn a-F rYST ti 0 Erin Monahan Tanya Nguyen Devin Bair 16756 Pacific Coast Highway 7561 Danube Drive 16855 S Pacific Avenue# 1 Sunset Beach CA 90742 Huntington Beach CA 92647 Sunset Beach CA 90742 STR-2023-0118 STR-2021-0008 STR-2023-0116 Doran Solis MyHa Nguyen Brenda Glim 8261 Munster Drive 15311 Yorkshire Lane 512 14th Street Huntington Beach CA 92646 Huntington Beach CA 92647 Huntington Beach CA 92648 STR-2023-0043 STR-2022-0116 STR-2023-0095 Yujun Han An Tran Jerry Cheng 603 21st Street 6062 Kelsey Circle 214 Goldenwest Street Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92648 STR-2023-0102. STR-2022-0110 STR-2022-0127 Van Thai Nguyen Sue Delmer Van Phan Nguyen 17312 Lee Circle 305 California Street# B 15971 Wicklow Lane Huntington Beach CA 92647 Huntington Beach CA 92648 Huntington Beach CA 92647 STR-2022-0071 STR-2021-0171 STR-2022-0118 Gina Ma Aleena Phakornkham Binh Mac 5381 Kenilworth Drive 16575 S Pacific Avenue# 1 19132 Stingray Lane Huntington Beach CA 92649 Sunset Beach CA 90742 Huntington Beach CA 92646 STR-2022-0084 STR-2023-0124 STR-2022-0134 . Phuong Lan Cao Mary Nguyen Wayne Hayden 841 Frankfort Avenue 17151 Granada Lane 7651 Clay Avenue Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92648 STR-2022-0097 STR-2022-0144 STR-2021-0175 Chi Le Bianca Yen Michael Dennis 6045 Summerdale Drive 210 7th Street 17020 Edgewater Lane Huntington Beach CA 92647 Huntington Beach CA 92648 Huntington Beach CA 92649 STR-2023-0117 STR-2022-0108 STR-2023-0089 David Maxwell Mirta Seitz Vick Le 16778 Bayview Drive#A 9302 Candlewood Drive 7562 Washington Drive Sunset Beach CA 90742 Huntington Beach CA 92646 Huntington Beach CA 92647 STR-2022-0094 STR-2023-0134 STR-2022-0139 Lance Ray Ngoc Trinh Andrew Gutierrez 411 14th Street#C 17220 Courtney Lane 16541 S Pacific Avenue Huntington Beach CA 92648 Huntington Beach CA 92649 Sunset Beach CA 90742 STR-2023-0142 STR-2022-0140 STR-2023-0127 Roger Bloom Nancy Cathey Alex Barton 218 19th Street#B 307 7th Street#C 221 Chicago Avenue Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2023-0147 STR-2023-0151 STR-2023-0150 PM-5)�'I2/-( PH- (p/U/2q r1(57 i-6 ii liv) X( Hi mt Il. isfri rf P Ian ( ftT$1 6 Igor Cavalcante Thuy Phan Minh Ho Mike Flowers 4642 Minuet Drive 20681 Chaucer Lane 409 'A 6th Street Huntington Beach CA 92649 Huntington Beach CA 92646 Huntington Beach CA 92648 STR-2022-0119 STR-2023-0133 STR-2022-0005 Nagi Abo-Shadi Ethan Le Cao Huu Tran 1508 Olive Avenue#A 221 2nd Street 5131 Dovewood Drive Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92649 STR-2023-0160 STR-2022-0067 STR-2022-0152 Judi Nuccio Natasha Court Diane P. Dai Nguyen 16391 S Pacific Avenue# 1 427 Lake Street 5601 Rogers Drive Sunset Beach CA 90742 Huntington Beach CA 92648 Huntington Beach CA 92649 STR-2023-0112 STR-2021-0151 STR-2022-0111 Jessica Issler Duc Cuong An Samia Husain 426 Goldenwest Street 119 6th Street 14895 Sunnycrest Lane Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92647 STR-2022-0088 STR-2022-0154 STR-2021-0112 Rocky DeFrancis Richard Koury Chander Burgos 17312 Norcon Circle 323 19th Street# 1 407 Alabama Street Huntington Beach CA 92649 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2022-0158 STR-2023-0187 STR-2023-0164 Kenney Bennett Greg Kelly Robert Little 235 1st Street 1910 Alsuna Lane 16962 9th St 1 Huntington Beach CA 92648 Huntington Beach CA 92648 Sunset Beach CA 90742 STR-2023-0189 STR-2022-0163 STR-2023-0193 Robert Little Sean Jarne Mark Tran 17012 N Pacific Ave 17016 7th St 8142 Sterling Drive Sunset Beach CA 90742 Sunset Beach CA 90742 Huntington Beach CA 92646 STR-2023-0211 STR-2023-0198 STR-2022-0165 Yvonne Lam Viorel I Mares Matthew Dragas 19142 Stingray Lane 1316 Alabama Street 216 10th Street Huntington Beach CA 92646 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2022-0164 STR-2023-0196 STR-2022-0054 Cassidy Summers Antonio Cabrera Jake Messerley 222 Chicago Avenue#B 9692 Durham Drive 406 7th Street Huntington Beach CA 92648 Huntington Beach CA 92646 Huntington Beach CA 92648 STR-2022-0159 STr-2022-0150 _ STR-2022-0066 Rachel Thibodeaux Toan Nguyen Thanh Pham 632 Indianapolis Avenue 16772 Broadway#4 19821 Bushard Street Huntington Beach CA 92648 Huntington Beach CA 92649 Huntington Beach CA 92646 STR-2022-0175 STR-2022-0168 STR-2022-0146 P M. 51r/2-1 PH /4/214 Mail i-fi' r Zvi o4- NKr, Distr-i f f Ari 0- ter 6( D Nicole Llido Linh Tran Gregory Bull 155 5th Street, Suite 111 1411 Delaware Street# 1 1915 Delaware Street Huntington Beach, CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 N/A STR-2022-0169 STR-2022-0161 Terry Nguyen Kim Phuong Le Trung Nguyen 228 Chicago Avenue# 1 16561 Tiber Lane 3854 Humboldt Drive Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92649 STR-2023-0008 STR-2022-0170 STR-2023-0011 Sonya Crader George Do Alice Le 2015 California Street 8841 Jarrett Circle 14582 Aspen Circle Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92647 STR-2022-0176 STR-2022-0157 STR-2022-0166 Cole Martens Betty Nguyen Thuy Hoang 1107 Lake Street 16681 Landau Lane 6421 Sligo Circle Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92647 STR-2023-0010 STR-2022-0113 • STR-2022-0173 Yin Lau Maya Corona Hung Phi Nguyen 215 Huntington Street#A 636 Indianapolis Avenue 18276 Lisa Lan Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92646 STR-2023-0023 STR-2023-0018 STR-2022-0172 Macy Saeteum Ha Bui Mike Quoc Nguyen 5782 Spa Driv 7651 Rhone Lane 113 6th Street Huntington Beach CA 92647 Huntington Beach CA 92647 Huntington Beach CA 92648 STR-2022-0155 STR-2023-0014 STR-2023-0046 Jay Carter Kathleen Nguyen Thy Ho 210 6th Street 447 Lake Street 946 11th Street Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2023-0016 STR-2021-0123 STR-2023-0026 Cathi Livingston Christine Kahn Parisa Lamarra 6421 Jasmine Drive 215 Portland Avenue 610 11th Street Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2021-0172 STR-2023-0060 STR-2023-0054 Melissa Galitzen Johnny Lima Kariin Keene 222 18th Street#A 16525 S Pacific Avenue 743 13th Stree Huntington Beach CA 92648 Sunset Beach CA 90742 Huntington Beach CA 92648 STR-2023-0058 STR-2021-0103 STR-2023-0039 Bach Nguyen Mailan Tran Khanh Nguyen 6661 Wrenfield Drive 117 6th Street 8252 Michael Drive Huntington Beach CA 92647 Huntington Beach CA 92648 Huntington Beach CA 92647 STR-2023-0040 STR-2023-0021 STR-2023-0047 PO . 5hI 'DR Elul al ocmi-fi'�h - of tiles 40-m PI .r. D-F -rl1I U Kim Tang Eric Huynh Sean Gregory 218 18th Street#B 7882 Aldrich Drive# 102 21891 Seacrest Lane Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92646 STR-2023-0029 STR-2023-0057 STR-2023-0041 Katie Eing Emad Ghobrial Lisa Choi 20441 Regal Circle 213 17th Street#A 14892 Quill Circle Huntington Beach CA 92646 Huntington Beach CA 92648 Huntington Beach CA 92647 STR-2023-0033 STR-2023-0036 STR-2023-0078 Shayla Abad Thi Thu Hang Vu Marcela Onufrei 8371 Friesland Drive 6921 Tucana Drive 510 Alabama Street Huntington Beach CA 92647 Huntington Beach CA 92647 Huntington Beach CA 92648 STR-2023-0103 STR-2023-0076 STR-2023-0051 Terry Carmadella Jeffrey Pham Tran My 2102 Pacific Coast Highway 8131 Terry Drive 8192 Falmouth Drive Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92646 STR-2023-0056 STR-2023-0034 STR-2022-0174 Jennifer Cheng Phan Julie Nguyen Thanh Dang 16141 Malaga Lane#A 404 11th Stree 16605 S Pacific Avenue Huntington Beach CA 92647 Huntington Beach CA 92648 Sunset Beach CA 90742 STR-2023-0075 STR-2023-0108 STR-2023-0125 Suong Nguyen Hien Dinh Nathan Le 10051 Cutty Sark Drive 16892 Baruna Lane 16782 Heritage Lane Huntington Beach CA 92646 Huntington Beach CA 92649 Huntington Beach CA 92647 STR-2023-0111 STR-2023-0055 STR-2023-0144 Jubilee Diamond Yolanda Wallace Eymad Elder 601 7th Street 1020 Pacific Coast Highway#B 414 8th Street Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2023-0061 STR-2022-0041 STR-2023-0020 Lily Nguyen Dauidi Norman Viorel Mares 20282 Colonial Circle 20662 Goshawk Lane 1316 Alabama Street 1 Huntington Beach CA 92646 Huntington Beach CA 92646 Huntington Beach CA 92648 STR-2023-0184 STR-2023-0181 STR-2023-0196 Rhoda Harper Stillwell Tuuyen Nguyen Elie Nader 19621 Occidental Lane 9632 Peppertree Drive 111 7th Street Huntington Beach CA 92646 Huntington Beach CA 92646 Huntington Beach CA 92648 STR-2023-0188 STR-2023-0094 STR-2023-0210 Toby Howell Michelle M Mahzari Brigitte Sudyka 201 Huntington Street 201 17052 Greentree Lane 17622 Prescott Lane Huntington Beach CA 92648 Huntington Beach CA 92649 Huntington Beach CA 92647 STR-2023-0218 STR-2023-0182 STR-2023-0204 pp- 5J1-I2L N (,lul2L1 v\b-7I z- n ref td1h t bi---ri(f Plan °- --iN b Henry Tran Adam McLaughlin Lisa Jette 15432 Shasta Lane 17082 5th Street 2 10401 Monitor Drive Huntington Beach CA 92647 Sunset Beach CA 90742 Huntington Beach CA 92646 STR-2023-0217 STR-2023-0170 STR-2023-0213 Tyler Noonan Chau Hoang Danielle Taylor 17165 S Pacific Avenue 16612 Graham Place 6701 Walton Drive Sunset Beach CA 90742 Huntington Beach CA 92649 Huntington Beach CA 92647 STR-2023-0222 STR-2023-0180 STR-2024-0004 Maoz Raz Yen Hoang Tran Ernie Robles 21252 Banff Lane 610 17th Street 17026 7th Street Huntington Beach CA 92646 Huntington Beach CA 92648 Sunset Beach CA 90742 STR-2024-0008 STR-2023-0165 STR-2023-0202 Truc Ta Amy Nitao William Raymond 16721 Phelps Lane 649 119 9th Street 510 9th Street Huntington Beach CA 92649 Huntington Beach CA 92648 Huntington Beach CA 92648 STR-2023-0136 STR-2024-0003 STR-2023-0178 Tyler Noonan Bobby Trujillo Tran Ngoc Phan 17155 S Pacific Avenue 2 16791 Bayview Drive 9971 Kings Canyon Drive Sunset Beach CA 90742 Sunset Beach CA 90742 Huntington Beach CA 92646 STR-2024-0014 STR-2023-0149 STR-2023-0066 Sam Lim Tam Huynh Stephanie Ellingwood 124 Main Street 303 8021 Mermaid Circle 115 7th Street Huntington Beach CA 92648 Huntington Beach CA 92646 Huntington Beach CA 92648 STR-2023-0186 STR-2024-0015 STR-2024-0025 Man Lau 516 Huntington Street Huntington Beach CA 92648 STR-2024-0032 M— 5/�-1711 § �+ te/o)2H �lrszl�- �fiu� �f ► y\t. -M`�fi *Ki 1137131 i 777 Motor Inn Beach Inn Motel Best Western Harbour Inn &Suites 16240 Pacific Coast Highway 18112 Beach Blvd. 16912 Pacific Coast Highway Huntington Beach CA 92649 Huntington Beach CA 92648 Sunset Beach CA 90742 Best Western Surf City Comfort Suites Huntington Beach Extended Stay America 19360 Beach Blvd. 16301 Beach Blvd 5050 Skylab West Circle Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92647 Hotel Europa The Hotel Huntington Beach Huntington Beach Inn 7561 Center Avenue#46 7667 Center Avenue 800 Pacific Coast Highway Huntington Beach CA 92647 Huntington Beach CA 92647 Huntington Beach CA 92648 Huntington Suites Huntington Surf Inn Hyatt Regency Huntington Beach Resort 727 Yorktown Avenue 720 Pacific Coast Highway 21500 Pacific Coast Highway Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 Kimpton Shorebreak Resort Ocean Surf Inn &Suites Oceanview Motel 500 Pacific Coast Highway 16555 Pacific Coast Highway 16196 Pacific Coast Highway Huntington Beach CA 92648 Sunset Beach CA 90742 Huntington Beach CA 92649 Pasea Hotel &Spa SpringHill Suites by Marriott Starlight Inn 21080 Pacific Coast Highway 7872 Edinger Avenue 18382 Beach Blvd. Huntington Beach CA 92648 Huntington Beach CA 92647 Huntington Beach CA 92648 Surf City Inn Travelodge Ocean Front 16220 Pacific Coast Highway 17205 Pacific Coast Highway The Waterfront Beach Resort,a Hilton Hotel 21100 Huntington Beach CA 92649 Sunset Beach CA 90742 Pacific Beachc Highway Huntington g Huntington CA 92648 PP\ 5)�'1 -P1l te/u/24 1/1 a-Zli--i- 1i 6-0 6+ 001rni', hi din G-f a l An ItS TB 1 U j4fN?iNcr 2e9\\ NOTICE OF PUBLIC MEETING AND PUBLIC HEARING CONCERNING E .u+.i`•. _; 1 THE MODIFICATION OF THE MANAGEMENT DISTRICT PLAN OF THE (i,‘ ''`Z4 HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT e �CCUUNTY C,'.,I'l NOTICE IS HEREBY GIVEN that on April 16, 2024, the City Council of the City of Huntington Beach(City) adopted a Resolution of Intention(No. 2024-13) to modify the Management District Plan (Plan) of the Huntington Beach Tourism Business Improvement District (HBTBID), including a proposed increased assessment rate from four percent (4%) to six percent (6%) of gross short-term lodging revenue. NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM on May 7,2024,at the City of Huntington Beach Council Chambers, 2000 Main Street, Huntington Beach, CA 92648, the City Council will hold a public meeting pursuant to Government Code section 54954.6 to allow public comment regarding the modification of the HBTBID Plan as set forth in the Resolution of Intention. NOTICE IS HEREBY FURTHER GIVEN that at 6:00 PM or soon thereafter on June 4, 2024, at the City of Huntington Beach Council Chambers,2000 Main Street,Huntington Beach, CA 92648,the City Council will hold a public hearing regarding the proposed modification of the HBTBID Plan as set forth in the Resolution of Intention. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach(including Sunset Beach), as shown on the map in Section V of the Plan. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales.Marketing&Public Relations,Group Sales,and Tourism Enhancement Programs such as wayfinding,a nighttime ambassador program,and improved downtown connectivity, lighting, and infrastructure, will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales. Cost: The current annual assessment rate is four percent (4%) of gross short-term room rental revenue. The Plan is proposed to be modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. If approved by the City Council, the modified assessment rate will become effective beginning on July 1,2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's life through June 30, 2028. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. Budget: The initial "year" of HBTBID annual assessment budget was a partial year consisting of five (5) months, for which the assessment budget was approximately $2,083,333. The total HBTBID annual assessment budget for each full year of operation was approximately $5,000,000. The FY 23-24 annual budget is approximately $7,000,000. Beginning July 1,2024,or as soon as possible thereafter, due to the modified assessment rate,the total HBTBID assessment budget for each full year of operation is anticipated to be approximately $10,000,000. Collection: The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The current HBTBID has a nine (9) year and five (5) month life, beginning February 1, 2019, through June 30, 2028. The modified assessment rate is proposed to take effect July 1, 2024, or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. Once per year,beginning on the anniversary of HBTBID renewal,there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. After the nine (9) year and five (5) month term, the HBTBID may be renewed for up to ten (10) years if lodging business owners support continuing the assessment and programs. Management:Visit Huntington Beach will continue to serve as the HBTBID's Owners' Association. The Owners' Association is charged with managing funds and implementing programs in accordance with the Plan and must provide annual reports to the City Council. Protest: Any owner of a lodging business within the HBTBID that will be subject to the assessment may protest the modification of the HBTBID. If written protests are received from the owners of lodging businesses in the modified HBTBID who represent fifty percent (50%) or more of the estimated annual assessments to be levied, the HBTBID shall not be modified. Every written protest shall be filed with the City Clerk at or before the time fixed for the public hearing. Written protests against the proposed modification may be: - Mailed to the City Clerk, City of Huntington Beach, 2000 Main Street, Huntington Beach, California 92648; or, - Emailed to Juan.Esquivel@surfcity-hb.org with subject line: HBTBID Protest; or, - Submitted in person to the City Clerk before the June 4, 2024 public hearing. Information: Should you desire additional information about this modification, contact: Visit Huntington Beach Kelly Miller, President& CEO 714-969-3492 Ext. 205 or kelly@surfcityusa.com City of Huntington Beach Kriss Casanova, Economic Development Manager 714-536-5547 or Kriss.Casanova@surfcity-hb.org • � in CITY OF HUNTINGTON BEACH IP INTERDEPARTMENTAL COMMUNICATION TO: Honorable Mayor and City Council Members SUBMITTED BY: Eric G. Parra, Interim City Manager PREPARED FROM: Jennifer Villasenor, Director of Community Development V DATE: April 16, 2024 SUBJECT: SUPPLEMENTAL COMMUNICATION FOR ITEM 13 (23-1042)— Adopt Resolution No. 2024-13 declaring the City's Intention to Modify the Management District Plan for the Huntington Beach Tourism Business Improvement District, conduct a Public Meeting on May 7, 2024, and set a Public Hearing date of June 4, 2024 The attached Management District Plan and PowerPoint have been modified to reflect an updated City map that includes all of Sunset Beach. In addition, VHB's comparative set in the PowerPoint now includes Huntington Beach and Newport Beach's assessment rate has been increased to 5% reflecting their recent modification. xc: Michael Gates, City Attorney Robin Estanislau, City Clerk Executive Team SUPPLEMENTAL COMMUNICATION Meeting Date: K/I to ,2 DZq Agenda Item No.; I (23 —(O U 2) 2019-2028 3 VISIT HUNTINGTON BEACH SURF CITY USA' s,.:."�'W_!°,: cs+r .x.. .._ ,e•zn ;r wa . <_ o.r-'x` 1i�_.. sGA .a. ... �' v.�,u!j�', ,a.=. ..,n.. e-"`rt". �" s: s"`'ti. .,.:,a..:.. 7 lk.."`;ate.-� ,,.�.�,,,.,.. -,...�.,�... .. ., � ;� o !I ' HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Prepared pursuant to the Property and Business Improvement District Law of March 27, 2024 1994, Streets and Highways Code section 36600 et seq. Contents I. OVERVIEW 2 II. BACKGROUND 4 III. IMPETUS TO RENEW THE HBTBID 5 IV. ACCOMPLISHMENTS 7 V. BOUNDARY 15 VI. BUDGET AND SERVICES 16 A. Annual Service Plan 16 B. Annual Budget 19 C. California Constitutional Compliance 19 D. Assessment 21 E. Penalties and Interest 21 F. Time and Manner for Collecting Assessments 22 VII. GOVERNANCE 22 A. Owners'Association 22 B. Brown Act and California Public Records Act Compliance 23 C. Annual Report 23 APPENDIX 1 —LAW 24 APPENDIX 2—ASSESSED BUSINESSES 35 Prepared by Civitas •♦ • ♦ • CIVITAS PARTNERSNIPS •PROGRESS PROSPERITY (800)999-7781 www.civitasadvisors.com I. OVERVIEW Developed by Visit Huntington Beach(VHB) and Huntington Beach lodging businesses,the renewed Huntington Beach Tourism Business Improvement District (HBTBID) is an assessment district that will continue to provide specific benefits to payors,by funding marketing and sales promotion efforts for assessed lodging businesses. The HBTBID was formed in 2014 for a five (5) year term;assessed lodging businesses subsequently renewed it for an additional nine (9) years and five (5) months. Location: The renewed HBTBID includes all lodging businesses located within the boundaries of the City of Huntington Beach,as shown on the map in Section V. Services: The HBTBID is designed to provide specific benefits directly to payors by increasing room night sales. Tourism Enhancement Programs,Marketing&Public Relations and Group Sales will increase overnight tourism and market payors as tourist,meeting and event destinations,thereby increasing room night sales. Budget: The total HBTBID annual assessment budget for each full year of operation was approximately$5,000,000. The initial"year"of operation was a partial year consisting of five (5) months, for which the assessment budget was approximately $2,083,333. Beginning July 1,2024,or as soon as possible thereafter,due to the modified assessment rate,the total HBTBID assessment budget for each full year of operation is anticipated to be approximately$10,000,000. Cost: The initial annual assessment rate was four percent (4%) of gross short-term room rental revenue. This Management District Plan (Plan) has been modified to increase the assessment rate to six percent(6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1,2024,or as soon as possible thereafter, and shall continue for the duration of the HBTBID's term. Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days;stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. Collection: The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies,penalties and interest) from each lodging business located in the boundaries of the HBTBID. The City shall take all reasonable efforts to collect the assessments from each lodging business. Duration: The renewed HBTBID has a nine(9) year and five (5) month life,beginning February 1, 2019 through June 30, 2028. Once per year, beginning on the anniversary of HBTBID renewal,there is a thirty(30)day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a City Council hearing on HBTBID termination. The proposed time for implementation and completion of this Plan is February 1, 2019 through June 30, 2028. The modified assessment rate is set to take effect July 1,2024,or as soon as possible thereafter,and shall continue for the duration of the HBTBID's term.After the nine (9) year and five (5) month term, the HBTBID may be renewed for up to ten(10) years if lodging business owners support continuing the programs. HBTBID Management District Plan A VISIT 2 March 27,2024 HUNTINGTON BEACH SURF CITY USA Management: Visit Huntington Beach will continue to serve as the HBTBID's Owners'Association. The Owners'Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council. HBTBID Management District Plan VISIT 3 March 27,2024 HUNTINGTON IFBEACH SURF CITY USA` II. BACKGROUND TBIDs are an evolution of the traditional Business Improvement District. The first TBID was formed in West Hollywood, California in 1989. Since then, over one hundred California destinations have followed suit. In recent years,other states have begun adopting the California model—Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TBID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita,Kansas and Newark,New Jersey used an existing business improvement district law to form a TBID. And, some cities,like Portland,Oregon and Memphis,Tennessee have utilized their home rule powers to create TBIDs without a state law. California's TBIDs collectively Number of Districts Operating in raise over$300 million anrn,ally for California local destination marketing. With 120 110113 competitors raising their budgets, 99104 and increasing rivalry for visitor 100 dollars, it is important that 80 70 Huntington Beach lodging 60 61 46 I businesses continue to invest in 32 38 stable, lodging-specific marketing 40 19 25 29 programs. 20 1 2 4 6 9 12 I 0 TBIDs utilize the efficiencies of °o° ti66V CO' tioc) ye oti° ti6s. y 6), private sector operation in the market-based promotion of tourism districts. TBIDs allow lodging business owners to organize their efforts to increase room night sales. Lodging business owners within the TBID pay an assessment and those funds are used to provide services that increase room night sales. In California,TBIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The kg difference between TBIDs and other benefit assessment districts is that funds raised are returned to the private nonprofit corporation governing the district. There are many benefits to TBIDs: • Funds must be spent on services and improvements that provide a specific benefit only to those who pay; • Funds cannot be diverted to general government use; • TBIDs are customized to fit the needs of payors in each destination; • TBIDs allow for a wide range of services; • TBIDs are designed,created and governed by those who will pay the assessment;and • TBIDs provide a stable,long-term funding source for tourism promotion. HBTBID Management District Plan A VISIT 4 March 27,2024 HUNTINGTON BEACH SURf CITY USA III. IMPETUS TO RENEW THE HBTBID The existing HBTBID was established in 2014 with an assessment rate of three percent (3%) on overnight lodging revenues in Huntington Beach.While the HBTBID has been successful,there was still opportunity for growth in overnight visitation and room night sales revenue, especially during non-peak periods. At the time of HBTBID renewal in 2019,the City of Huntington Beach provided VHB with funding from Transient Occupancy Tax revenues,equal to one percent (1%) of overnight lodging revenues in Huntington Beach, pursuant to an MOU between the City and VHB. The City and VHB have terminated the MOU and entered into a new long-term agreement with the City that includes the City retaining 100%of all TOT revenues. In the renewal of the HBTIBD,the assessment rate was increased initially to four percent (4%) of gross short-term room rental revenue to ensure that tourism promotion funding was not decreased during the term of the renewed HBTBID. To continue to ensure that tourism promotion funding is adequate to remain competitive with other popular destinations, this Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue.The modified assessment rate is effective beginning on July 1,2024, or as soon as possible thereafter,and shall continue through the duration of the HBTBID's term. There are several reasons to modify this Plan. The most compelling reasons are: 1. The Need to Maintain/Increase Competitiveness, Occupancy and Overall Visitation As the number of overnight accommodations grow in Orange County, as well as in competitive California cities and counties, it is crucial that Huntington Beach maintains and increases its competitiveness,occupancy levels and visitation from targeted markets. These goals can be accomplished by increasing the HBTBID assessment rate from four percent(4%) to six percent (6%), which will generate approximately $10,000,000 per each full year in dedicated HBTBID funding for improvements and activities to increase room rentals for assessed lodging businesses located within the modified HBTBID. Additional HBTBID funds will continue to be used to implement new Tourism Enhancement Programs above and beyond those that are currently provided with the existing funding level: 1. Increase funding for destination sales and marketing programs, which will target key visitor markets,including markets that generate substantial overnight visitation to Huntington Beach and related visitor spending throughout the year,especially during non-peak seasons;and 2. Increase funding for the innovative HBTBID Visitor Services Enhancements program that adds new and/or repurposed projects to Huntington Beach's current brand offerings,which will increase year around overnight visitation by improving the overall HBTBID brand experience, the number of reasons for visitors to stay longer, and offer more reasons for visitors to return more often to Huntington Beach. 2. An Opportunity for Increasing City Revenues As an indirect result of the modified HBTBID, it is expected that as occupancy rates and overall visitation numbers increase, so too will the City's Transient Occupancy Tax revenue. Greater occupancy rates will also generate an indirect increase in sales tax revenues from tourist spending. 3. Stable Funding for Destination Marketing HBTBID Management District PlanA VISIT 5 March 27,2024 HUNTINGTON BEACH SURF CITY USA The current HBTBID was formed pursuant to the Property and Business Improvement District Law of 1994. The law allows a district to be renewed for up to ten (10) years without the need for City Council's annual approval to continue levying the assessment. Stakeholders elected to renew the HBTBID for a nine (9) year five (5) month term. The renewed term provides stable funding for destination marketing, visitor services enhancements, and management through June 30, 2028 and aligns the HBTBID's fiscal year to the City's fiscal year. This will provide stable funding for destination marketing,visitor services enhancements,and management. Many of Huntington Beach's competitors are at or exceeding the level of funding available for destination marketing in Huntington Beach. The table below lists the funding raised by tourism improvement districts for VHB's current comparative set. Location Amount Raised Assessment Rate TOT Total Guest Rate Charge Anaheim $17,500,000 2%room revenue 15% 17% Mammoth Lakes $10,800,000 1%room revenue 13% 14% Newport Beach $10,500,000 3%room revenue 10% 13% Palm Springs $17,000,000 , 1%room revenue 14% 15% San Diego $41,000,000 2%room revenue 10% 12% San Luis Obispo $10,400,000 1%room revenue 10% 11 Santa Barbara $10,700,000 2%room revenue 12% 14% *As of August 2023 HBTBID Management District Plan A VISIT 6 March 27,2024 HUNTINGTON BEACH SURF CITY USA IV. ACCOMPLISHMENTS (2019-2023) Assessed Lodging Business Revenue Assessed lodging business revenue has increased 27% since the HBTBID assessment was increased from 3%to 4%in 2019. Increases in assessed lodging business revenue by fiscal year are listed below: Fiscal % Note Year Increase FY 18-19 17% FY 19-20 (23%) (Covid hit in last quarter of fiscal year) FY 20-21 (6%) FY 21-22 41% FY 22-23 6% Marketing& Public Relations 2019/2020 • To adapt to the pandemic shutdowns,VHB revised its marketing mix from a more international/national blend of effort towards a more hyper local(Los Angeles/Orange County) and regional CA drive market focus. • In partnership with the City of Huntington Beach,launched OneHB Clean&Safe and Masks Up Surf City campaigns as part of its COVID-19 Recovery Plan. • Produced 360 virtual reality content and an Open for Business map as part of VHB's COVID- 19 Recovery Plan. • Participated in Virtual Trade Show: 10 pre-scheduled appointments from larger agencies and groups (AAA Northeast,HelmsBriscoe) to smaller agencies (Preferred ChoiceTravel, TravelStore Pasadena)in partnership with the Hyatt Regency Huntington Beach Resort& Spa • Date a Destination:Week-long event held by Gate 7 with the major Australian travel companies in Australia (Helloworld,Flight Centre),destination reps,and virtual one-on-one meetings. • Promoted Huntington Beach during the 2019 Great PacificAirshow as a VIP Chalet sponsor. 2020/2021 • Continued OneHB Clean&Safe and Masks Up Surf City pandemic safety campaigns. • Developed a Clean &Safe video series for each of the HB Collection properties that showcased their flexible meeting&events meeting spaces with 40% of its total square footage being outdoors and reiterated their commitment to ensuring a safe environment for their guests. • Incorporated Project Brief template to use for ideation and outlining all proposed large VHB projects. • Launched inaugural 12 Blocks of Cheer Campaign bringing together the four downtown resorts, Pacific City,and Downtown Main Street for a holiday campaign promoting local shops, businesses,and events. 40 participating businesses;62 events/photo ops;35 deals;3,000+ map views. • Participated in Visit California's Calling All Californians Co-op Marketing Program designed to jump start the California economy and drive responsible in-state travel. From August— November,VHB rolled out advertising on travel-focused digital platforms.Campaign HBTBID Management District Plan VISIT March 27,2024 HUNTINGTON BEACH SURF CITY USA generated more than 9.6M impressions,2,600 room nights with a gross booking value of $555.9K. • Launched social media advertising campaign on Facebook and Pinterest targeting in-state travelers,complementing the Calling All Californians digital campaign. Garnered 3.2M impressions,over 82.7K video play-throughs,and over 15K clicks. • Media/PR efforts focused on garnering media coverage from hyper local outlets and influencers. • Authored 17 blogs with listicle themes (ex:Three Reasons to Travel to Huntington Beach During the Week). • Website Enhancements: Content Optimization and Navigation Architecture;SEO/SEM; Transitioned website to becoming ADA compliant. • Revamped paid social media program to align with the heavy audience shift to social media during the pandemic,leveraging the 24/7 cycle of the platforms to promote all relevant VHB marketing programs. Communities and engagement increased on Facebook and Instagram by 25%YoY. • Launched Datafy geo-location reporting dashboard tool which gains visitor and visitation insights from unique mobile device IDs that are observed while in destination. • Revised Visitor Guide with a 2020 pandemic lens and Rediscover Your Glow and Travel Responsibly themes. • Secured in-market agency representation in Canada,United Kingdom/Ireland,and Mexico. 790 total travel agents across all markets trained on selling Huntington Beach as a destination. 103 one-on-one trade show appointments with key international travel agents and tour operators. • Launched CA STAR Visit CA Training Tool used to train groups of travel agents and tour operators via an online course. • Brand USA Agent Training in Mexico City (200+ attendees). • Familiarization Tours with Air Canada,Discover North America (UK),British Airways (UK),and Virgin Holidays (UK). • Updated FILM HB Landing pages. FILM HB Data: 14 Film inquiries and 11 permitted shoots. 2021/2022 • In February 2021,launched inaugural Show Your HB Love campaign to highlight various businesses throughout Huntington Beach. • Launched #BeHere Marketing Campaign encouraging visitation and overnight stays in an open, outdoor,safer environment.The campaign's initial launch was during the summer and the second BeHere 2.0 flight leveraged Huntington Beach's elongated summer weather and events that extend well into the Fall,Winter and Spring seasons providing an opportunity for a second wave of summer leisure marketing- Summer 2.0—which overlays with the destination's needs period. Campaign garnered 15.2M impressions 32K clicks,reached 2.7M households and 122 cities.The booking component of the campaign generated 2.2M impressions,and 9,200 room nights with a gross booking value of$2.4M. • Participated in Visit California's What If Co-op Marketing Program: Launched in Spring 2021,the multi-layered campaign helped to stimulate California's tourism economy and inspire domestic travel. • The 2021 WSL US Open of Surfing presented by Shisedo Marketing Campaign spotlighted Huntington Beach to over 15 countries around the globe.The campaign garnered$241.1K in media value, 110M social media impressions,3.4M video plays, 1.3M live video views, 80K page views to landing page,and 1,000 pieces of media coverage media. HBTBID Management District Plan VISIT 8 March 27,2024 HUNTINGTON irBEACH SURF CITY USA • Promoted Huntington Beach during the 2021 PacificAirshow as a Chalet partner,hosting meeting planners and select VIP clients to promote HB as a meetings and events destination. • Social Media program resulted in Facebook and Instagram communities increasing by 15% YoY,and social media engagement levels surpassing VHB 15%benchmark increase by as much as 135%. • Launched Crowdriff-visual content marketing software for travel and hospitality brands to help source,manage,and publish user-generated content and short-form video from Huntington Beach locals and visitors. • Launched a TikTok page in October 2021. • Launched a Group Sales e-newsletter targeting meeting&event planners. Built a database of over 2,900 recipients with an open rate of 19.1%. • Launched a UGC (user generated content) program encouraging locals and visitors to share their content with us for use on our social platforms and other materials. Generated 869 pieces of content. • Launched digital advertising program that sells banner ad space on heavily trafficked pages of the VHB website,as well as paid opportunities on other VHB digital platforms (social media,e-newsletter, et al). • Launched robust,content-calendar-based blog program to build more relevant,SEO-& SEM-friendly content on the VHB website. 60 blogs authored. • Launched a quarterly photoshoot program developed to fill in imagery needs for all of VHB's marketing initiatives. Quarterly Sessions: Outdoor Activities around the Pier,Action Sports,Laidback Luxury,and Select Service Hotel Properties. • Partnered with four Orange County DMOs to form the Orange County Coastal Tourism Alliance in response to the Orange County Coastal oil spill. Developed a website to serve as a central communication hub for elected officials,the City,media,tourism industry and the public to share the most current information and accurate, factual updates about the spill impacts and recovery. • In January 2022,launched quarterly Visitor Intercept Surveys.The data collected over calendar year 2022 will be included as insight in the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Hosted 13 journalists and 15 influencers,including"Travel Mom"influencer Emily Kaufman. Garnered national and local coverage including Forbes Magazine,Conde Nast Traveler,JustLuxe,CNN,Fox 11 News,Brides,and Orange County Register. • Produced Surf City USA® Uncovered-a 20-episode series featuring unknown or"hidden" gems within Huntington Beach.The series targeted visitors and locals encouraging them to explore. • Revised Visitor Guide with the 2022 themes of Be Here and Clean &Safe and inspiring messaging sensitive to travel in a (transitioning) pandemic era. • FILM HB Data: 45 Film inquiries and 63 permitted shoots. 2022/2023 • Launched #BeHere 3.0 Marketing Campaign encouraging visitation and overnight stays in an open,outdoor,safer environment.This iteration of the campaign targeted Huntington Beach lifestyle pillars of outdoors,wellness, family,active sports,dining,and shopping. Campaign garnered 22.7M impressions 46.7K clicks,outpacing performance by 47%.The booking component of the campaign generated 3,360 room nights. • In response to Board direction to amplify channels to help boost referral business to hotels for the remainder of the fiscal year,VHB extended its #BeHere Soft Season Campaign,a highly targeted media buy investment developed to generate leisure bookings,increase web traffic to SurfCityUSA.com,and increase awareness of the destination,hotel,and resort properties. HBTBID Management District Plan A VISIT 9 March 27,2024 HUNTINGTON BEACH SURF CITY USA The extended campaign generated an additional 8.24M total impressions and 11,950 clicks to VHB's campaign landing page.The campaign surpassed performance projections by 53%and is tied to 2,917 unique hotel overnight visitors who saw VHB paid media ads up to 90 days before their stay. • Launched redesigned website.Website traffic increased 7%YoY with 1.3M sessions and 2.1M Pageviews annually.Won four awards: Hermes Creative Award -Gold;DotComm- Gold Winner;Internet Advertising Competition-Best of Industry Winner;29thAnnual Communicator Awards -Award of Excellence. • Updated all of VHB's SEM-and SEO-related platforms that track search engine and website performance to be compliant with Google Analytics Version 4 (GA4) platform update before the switch went live on July 1,2023. • Produced quarterly destination performance reports for the HB Collection hotel properties, customized with destination-level and hotel-level data per property. • Promoted the inaugural A Great Day in the Stoke,a surfing competition which is open to all, but also happens to be the largest gathering of black surfers.The campaign secured 48 pieces of online media stories,4 broadcast interviews,and 3 print articles with a collective reach of 29.3M. • The 2022 ISA World Surfing Games Marketing Campaign promoted Huntington Beach to over 2.1M LiveStream viewership from over 50 countries.The campaign,which received exposure in the Opening Ceremony,the competition broadcast,and Closing Ceremony and Parade,garnered 2M social media impressions, 132K daily interactions on ISA event page, and media coverage reaching 22K contacts. • The 2022 WSL Vans US Open of Surfing Marketing Campaign spotlighted Huntington Beach to over 743M homes in 6 regions around the globe.The campaign garnered a collective 1.3K social media posts,38M social media impressions,2M VOD views,2.9M email impressions, 2.8M live video views, 195K page views to landing page,and 1,000 pieces of media coverage media.VHB also hosted LA28 organizing committee members allowing them to see first- hand HB's capabilities as a top-tier sporting event location. • Promoted Huntington Beach during the 2022 PacificAirshow as a Chalet partner,hosting top meeting and event planners to showcase the destination as a unique place to meet.Along with Destination Analysts,produced 2022 PacificAirshow Economic Impact Report that showed it generated a$70M total direct economic impact for Huntington Beach. • Secured the 2023 ISA World Para Sung Championships to occur in November 2023 (FY 23- 24). • Updated VHB Brand Style Guide. • Produced Huntington Beach Tourism Summit hearing from experts in the tourism,action sports, and entertainment industries,as well as economic forecasts for Huntington Beach and updates on regional infrastructure enhancements. • Designed new VHB trade show booth which debuted at IMEX 2022,a major trade show. • Produced the 2022 Resident Sentiment Report and the 2022 Economic Impact Report. • Created a Major Events in HB Presentation deck highlighting all the benefits of hosting world- class sporting(and other) events in Huntington Beach. • Achieved goal of having 1,000 TikTok followers by fiscal year's end,unlocking additional backend features. • Launched KeyData Reporting Dashboard which tracks Short Term Vacation Rentals performance in the destination. • Launched Symphony Dashboard which pulls in all sources of economic,demographic, marketing,digital performance numbers into a central location for streamlined and customizable reporting. HBTBID Management District Plan VISIT 10 March 27,2024 HUNTINGTON BEACH SURF CITY USA • Hosted 16 journalists and 7 influencers. Garnered national and local coverage including Forbes Magazine, Viator,Inside Hook, Daily Pilot, Travel Awaits, USA Today, and Orange County Register. • Hosted the California Cup Golf Invitational 2023.The 4-day long event brought together 75 international travel trade buyers and California suppliers for HB experiences,business development,and industry networking. Each year,CA Cup Invitational gives back to a local charity through funds raised from international and CA auction prizes. • VHB was the only U.S. destination invited to participate in Air Canada,the Air Canada Foundation,and CAN (Canucks Autism Network) community's inaugural Autism Aviation Day,VHB welcomed over 50 individuals including children on the autism spectrum.The event provided an opportunity for youth on the autism spectrum(and their families) to rehearse the entire pre-flight process;the goal is to increase autism accessibility and encourage future travel. • Conducted 733 total travel agents across all markets trained on selling Huntington Beach as a destination; 137 one-on-one trade show appointments with key international travel agents and tour operators;and 15 international familiarization tours. • Along with Destination Analysts,produced 2022 PacificAirshow Economic Impact Report. • FILM HB Data: 126 Film inquiries and 111 permitted shoots. Sales FY 2019 to present: • Conference/Meeting leads processed by VHB: 2,900 • Definite contracted/booked room nights by VHB: 176,055 • Economic Impact of Groups to Huntington Beach: $121 million Highlighted Group Sales Programs • Success of HB Collection Beachwides—Annual Future Proof Wealth Festival,inaugural year 2022,taking place every September with over 3,000 room nights to the destination per year within the four HB Collection Resorts and a beachfront event activation. • Participation in Intermediary Preferred programs including HelmsBriscoe, ConferenceDirect,Prestige,and HPN Global which contributed to a substantial increase in lead development YOY. • Partnership with Orange County Sport Commission has generated new business opportunities for both our Select Service and Full-Service Hotel/Resort partners. Visitor& Partner Services Visitor Interactions (July 1.2019—June 30.2023) • Visitor Info Kiosk: 51,644 • VHB Office: 13,173 • Events: 10,017 • Mobile Bicycle Program: 391 Event Information Booths • 55 events attended • New branded equipment purchased in 2022 (10x10 pop-up canopy,cafe umbrella, flags,and tablecloths) HBTBID Management District Plan A VISIT 11 March 27,2024 HUNTINGTON irBEACH SURF CITY USA Local Pop-up Information Booths • Launched Summer of 2021 • Pacific City o Operated weekends only from 5/29/21-8/29/21 o 282 interactions • Bella Terra o Operated weekends only from 7/10/21-9/5/21 o 215 interactions Publication Distribution • Design and produce 18 different publications,including the official Huntington Beach Visitor Guide,Visitor Maps,Downtown HB and Sunset Beach Tear Off Maps,Downtown maps in foreign languages,Nightlife Guides,Activity Guides,Historical Walking Tours,and more. • 7,500+visitor guides handed out in person • 100,000+visitor guides distributed to local businesses • 150,000+visitor guides &rack brochures distributed to locations across the Western United States Partner Services • Partner Education Series -Launched in 2021;to date the series has held 23 events (15 virtual,8 in-person) with 466 attendees. • Partner Outreach Program-Launched 2021;Partner Services staff have connected with HB businesses 946 times.Visitor Services staff have referred visitors to HB businesses 6,921 times. • CEO/Partner Newsletters -Over 50 e-newsletters have been sent since March 2020,with 1,166 newsletter contacts,a 41%average open rate (20%industry standard),and a 2.82% average click rate (2.25%industry standard). Visitor Experiences • Meet in HB Pass -Launched in 2022 for Group Meetings,this program provided deals at 13 local businesses for meeting attendees • VHB Guided Walking Tours -Launched in 2022,the Historical Downtown HB Walking Tour and the Surf History Walking Tour are led by VHB staff twice a month. Special tours are led by Chris Epting a few times a year.To date,222 tickets have been sold for the VHB led walking tours and the Chris Epting tours have sold out. • Digital Surf City USA Barrel Trail-Launched in Spring 2022 as a free digital pass with a phone app,this trail provided deals at 15 breweries and distilleries across HB and garnered 566 sign-ups. • Surf City USA Barrel Trail Passport-Launched in March 2023 as a physical booklet,the new passport is sold online and in-store for$5.To date,254 passports have been sold and 2 people have completed the full trail and redeemed the grand prize,a gift card to an HB brewery/distillery of their choice. • Surf City USA Scavenger Hunt-Launched 2023,the Scavenger Hunt is a printed map targeted to families with young children. Participants redeem their completed Scavenger Hunt for a free coloring book at the Visitor Information Kiosk. In the first two months of the program, 68 participants picked up their free coloring book. HBTBID Management District Plan VISIT 12 March 27,2024 HUNTINGTON BEACH SURF CITY USA • Surf City USA Snapshots -Launched in May 2023,this digital trail leads visitors and residents to the best Instagrammable photo spots in HB. • Pedego Pilot Program—Pilot program launched summer of 2022,this mobile visitor information bicycle provided visitor info along the beach path and had 391 interactions over 3 months. • Major Visitor Information Kiosk Capital Improvements over the last several years. Other Visitor Enhancement Programs • Team Surf City USA Volunteer Program • Launched June 2023 • 8 volunteers enrolled in the program • Wayfinding Program • Completed 90%of installation and continue to conduct ongoing maintenance for installed HB branded Wayfinding Program signage throughout Huntington Beach. The $1 million-plus comprehensive wayfinding system was created in partnership with the City of Huntington Beach after receiving community input. • The program remains ongoing with installation of remaining signs,including gateway signs,to take place over the coming years. • Installed and maintain digital information kiosk at the HB Pier as part of the Wayfinding Program. • Summer Beach Restrooms -Provide annual financial support for temporary summer beach restrooms and additional cleaning at the HB Pier. In 2023,VHB covered the entire cost for the program due to City budget cuts. • Downtown Transportation-Provided financial and marketing support for the launch of the Circuit electric car program in Downtown HB. Retail Program • In 2020,VHB launched a Surf City USA®retail program to help visitors promote the brand when they return home. Currently,the store produces 26 items for sale in-store,online,and at pop-up booths,with gross sales of$33k since inception. Sales increased 88%in the last year. Pandemic recovery initiatives • Open For Business Page and Map launched in March 2020 to help residents and visitors find needed resources. • OneHB Clean&Safe Pledge Digital Trail launched in October 2020 and garnered 787 pledges from HB businesses. Advocacy& Community Support • Provide resources and knowledge to support public policy initiatives that advance brand awareness and reputation of Huntington Beach • Provide annual funding support for the Downtown Nighttime Ambassador Program,which is now operated by the Downtown Business Improvement District. • VHB supports local events with community sponsorships for programs including the Waymakers Pier Snowflakes,4th of July Parade,Blessing of the Waves,HB Surfing Walk of Fame,Cherry Blossom Festival,Great Day in the Stoke,Surf City Splash,Bolsa Chica Wetlands Conservancy,and Amigos de Bolsa Chica. HBTBID Management District Plan £ VISIT 13 March 27,2024 HUNTINGTON ifBEACH SURF CITY USA • VHB staff volunteer on local committees and Boards of Directors,including the HB Chamber of Commerce,Downtown Business Improvement District,HB Surfing Walk of Fame,and the Alzheimer's Association Walk to End Alzheimer's. • VHB staff speak annually at local schools and non-profit organizations providing information about why tourism is a viable job industry and a strong economic support for the community. • Provide annual funding support for HB International Surfing Museum • VHB staff volunteer for local events and projects,such as the City of Huntington Beach's Community Service Day,the Waymaker's Youth Shelter Annual Gala,the Wetlands& Wildlife Care Center's Baby Shower,and Project Self Sufficiency's Thanksgiving and Holiday gift giving program. Administration Awards • Named one of OC Business Journal's Best Places to Work in Orange County in 2023. • Earned FiredUp! Culture's 2022 Culture Achievement Award,which was awarded to nine organizations nationally across multiple industries who scored the highest on its Team Culture Index Survey. • Earned a'With Distinction"status with VHB's 2021 DMAP (Destination Management Accreditation Program) accreditation renewal through Destinations International.The"With Distinction" status has only been awarded to less than 15 organizations globally. Operations • Created new 2023-2026 Strategic Plan,to follow the 2020-2023 Strategic Plan. • In 2019,relocated VHB office to ground level on 5th Street near PCH to provide better access for visitors. Created Welcome Center and Surf City USA®retail store in new office lobby. • Continue to perform annual unqualified audits. HBTBID Management District PlanA VISIT 14 March 27,2024 HUNTINGTON BEACH SURF CITY USA V. BOUNDARY The HBTBID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Huntington Beach. Lodging business means:any structure,or any portion of any structure which is occupied or intended or designed for occupancy by transients for dwelling,lodging or sleeping purposes,and includes any hotel,inn, tourist home or house,motel,studio hotel,bachelor hotel,lodging house,rooming house, at a fixed location,or other similar structure or portion thereof. The boundary is shown in the map below.A complete listing of lodging businesses within the renewed HBTBID can be found in Appendix 2. t,r,t..-: Lei, ur Ir St+tl 1 _ 01e __ COMM Vl'eanu11u1 � j --� \ a ' Ci f.. limo lgtOf Foi zaw Valk A — _ \\C\/3 C«rory B.2C�1 L r , 1► �4„.--* ., 4��oo - l o;ra Mr 1111 Lc_ / CCn}N. N. Ne xport Seat airrviiil HBTBID Management District Plan A VISIT I March 27,2024 HUNTINGTON BEACH SURF CITY USA VI. BUDGET AND SERVICES A. Annual Service Plan Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the HBTBID funds are marketing, sales and tourism enhancement programs available only to assessed lodging businesses. A service plan budget has been developed to deliver services that benefit the assessed lodging businesses. A detailed annual budget will be developed and approved by VHB. The total initial full year budget was anticipated to be $5,000,000. Fiscal year 2019 covered the five (5) month period from February to June 2019, resulting in a lower anticipated budget for the first five (5) months of HBTBID operation. The table below illustrates the initial annual budget allocations reflecting the modified assessment rate. Beginning July 1,2024,or as soon as possible thereafter,due to the modified assessment rate,the total initial full year assessment budget is anticipated to be approximately$10,000,000. 2024 VHB PROPOSED MODIFIED BUDGET:Annual Assessment Budget$10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2%increase in TBID assessments,VHB forecasts its budget to be approximately$10M.This amount is reflected below. All proposed programs funded by 1B10 assessments must be approved by the VHS Board dung the annual budget process and must adhere to state laws governing these assessment expenditures. SCsooDnti,ngen(cx nerve C1Adminor)Administration $1,900,000(19%) Sales 8 Marketing S6,500,000(65%) Tourism Enhancement Programs 51,000,000(10%) • Includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE)Programs from 2019-2020 MOP Although actual revenues will fluctuate due to market conditions,the proportional allocations of the budget shall remain the same. However, the City and the VHB Board shall have the authority to re- allocate up to fifteen percent (15%) of the budget allocation within the budgeted categories per year and submitted through the annual report. For example, if there is increased market competition, $150,000 from the Tourism Enhancement Programs budget may be reallocated to the Sales & Marketing budget,staying within the authorized 15%reallocation limit. In the event of unforeseeable emergencies or unavoidable catastrophes that interrupt the expected course of business,by agreement of both the VHB Board and the City Manager(or his/her designee),the City and VHB shall have the authority to adjust budget categories by more than fifteen percent (15%) of the budget allocation within the budgeted categories.For example,in the event of a pandemic resulting in an unprecedented decline in tourism,$3,000,000 from the Sales &Marketing budget may be reallocated to the Tourism Enhancement Programs budget to address unforeseen circumstances, exceeding 15% as allowed under the exceptional circumstances. At least annually, VHB will meet with the City Manager or designated staff to review accomplishments and funding priorities for the following year. A description of the proposed improvements and activities for the initial year of operation is below. The HBTBID Management District Plan A VISIT 16 March 27,2024 HUNTINOTON BEACH SURi CITY USA' same activities are proposed for subsequent years. In the event of a legal challenge against the HBTBID,any and all assessment funds may be used for the costs of defending the HBTBID. Each budget category includes all costs related to providing that service,in accordance with Generally Accepted Accounting Procedures (GAAP). For example, the Sales &Marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing programs. Staff time dedicated purely to administrative tasks is allocated to the administration portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories,as appropriate in accordance with GAAP. The staffing levels necessary to provide the services below will be determined by the VHB on an as-needed basis. Sales &Marketing The sales and marketing program will promote assessed lodging businesses as tourist,meeting,and event destinations. The sales and marketing program will have a central theme of promoting the Huntington Beach destination brand as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed lodging businesses,and may include the following activities which are designed to drive overnight visitation and room sales to assessed lodging businesses: • Increased advertising and promotional programs in print, online, social media,and television targeted at potential visitors to drive overnight visitation and room sales; • Website enhancements and updates; • Strategic advertising and marketing agency support; • Contract with third party marketing and sales partners; • Public relations,sales blitzes,missions,and calls; • Familiarization tours targeting key decision makers; • Preparation and production of collateral promotional materials such as visitor guides, brochures, flyers,and maps; • Video development for destination experiences and visuals; • Attendance at professional industry conferences and affiliation events; • Lead generation activities designed to attract tourists, leisure visitors, and group events to Huntington Beach; • Partnerships with targeted special events that attract overnight visitors;and • Cooperation with local agencies and film commission programs that attract overnight visitors. Tourism Enhancement Programs The Tourism Enhancement Program(TEP)will enhance the brand image and visitor experience while in destination, providing a benefit for guests of assessed lodging businesses by encouraging an increased length of stay and appealing to target niche markets based on demographic and current travel data.An incidental benefit also improves the resident experience throughout the year. The TEP will provide funding for programs and initiatives in destination in accordance with VHB's current strategic plan.VHB will work with the City Manager and designated city staff to identify and prioritize any key public-private programs and initiatives, as detailed in the Management Agreement with the City and VHB,to be funded and implemented following approval of the VHB budget by the VHB Board of Directors and approval of the City budget by City Council.The focus for the TEP will be on the entire destination brand footprint to ensure a consistent brand experience throughout Huntington Beach. TEP may include the following programs which are designed to drive increased overnight visitation and room sales to assessed lodging businesses: HBTBID Management District Plan A VISIT 17 March 27,2024 HUNTINGTON BEACH SURF CIUY USA • Support of a long-term ambassador program with trained staff that supplement the current level of police presence to improve the overall destination experience and encourage overnight visitation; • Welcome center, event-based visitor information booths, and visitor information kiosk improvements including current technology-driven visitor information enhancements; • Support of Signature Events that provide a proven positive economic impact and extend Surf City USA's brand reach, including programs and events that lead up to the LA28 Olympic games; • Support of other community events and programs that uphold the authenticity of the Surf City USA experience and create a greater sense of community for residents; • Team Surf City USA Volunteer Program to help community members become experienced event volunteers; • Brand-centric visitor services training program for both public and private sector staff; • Support of a trolley or transportation program connecting hotels to downtown Huntington Beach,The Pier,or other attractions;and • Development of activities and/or products designed to keep visitors in the destination for an increased duration of time,including Historical Walking Tours,Scavenger Hunt,Barrel Trail, Surf City USA Snapshots,and other activities. Additional future TEP programs may include destination product development programs to provide support for public-private capital improvement projects in partnership with the City of Huntington Beach. If such a project is proposed,VHB will work collaboratively with the City Manager and Public Works. Such projects,which are all aimed to attract overnight visitors,may include: • Additional wayfinding signage system enhancements including gateways and parking signage; • Pedestrian improvements linking the beachfront hotels,Pacific City,Main Street,and 5th Street; • Art and cultural improvements,such as a public art trail; • Gateway enhancements including on Pacific Coast Highway,to attract overnight visitors; • Bicycle and surfboard storage improvements; • Enhancements to wetlands experiences which attract overnight visitors, such as the Bolsa Chica Ecological Reserve and the Huntington Beach Wetlands (between Newland Street and the Santa Ana River) that expose visitors to the value of the vital ecosystems; • Partnership with the City on mutually agreed upon projects that promote overnight visitor stays to Huntington Beach. Examples may include:Improvements to pier plaza,existing parks and sports facilities, Huntington Beach International Surfing Museum, the Surfing Walk of Fame,and creation of a new live music venue,and/or entertainment complex; • Destination product development research, master planning, and design of approved destination product development projects and; • Infrastructure improvements that enhance Huntington Beach's competitive position to attract desirable special events year-round (e.g., improvements to beach restrooms, parking structures/lots,lighting,and summer beach restroom porter cleaning). Administration The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees. HBTBID Management District Plan A VISIT 18 March 27,2024 HUNTINGTON ifBEACH SURF CITY USA Contingency/Reserve The budget includes a contingency line item to account for uncollected assessments,if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration,or renewal costs at the discretion of the VHB Board. Policies relating to contributions to the reserve fund,the target amount of the reserve fund,and expenditure of monies from the reserve fund shall be set by the VHB Board. City Administration Fee The City of Huntington Beach shall retain a fee equal to one percent(1%)of the amount of assessment collected to cover its costs of collection and administration. B. Annual Budget The total nine (9) year and five (5) month improvement and service plan budget was projected at approximately$5,000,000 annually, or$47,083,333 cumulatively through 2028. Beginning on July 1, 2024, or as soon as possible thereafter, due to the modified assessment rate, the total HBTBID assessment budget for each subsequent full year of operation is projected to be approximately $10,000,000,or approximately$71,901,015 cumulatively through 2028.This amount may fluctuate as sales and revenue increase or decrease at assessed lodging businesses, but is not expected to change significantly over the term. C. California Constitutional Compliance The HBTBID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term`assessments' to levies on real property.1 Rather, the HBTBID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the HBTBID, a "specific benefit" and a "specific government service."Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services. 1. Specific Benefit Proposition 26 requires that assessment funds be expended on, "a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged,and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege."2 The activities and improvements in this Plan are designed to provide targeted benefits directly to assessed lodging businesses,and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general,or parcels of land,but rather to serve the specific lodging businesses within the HBTBID. The activities described in this Plan are specifically targeted to increase room night sales for assessed lodging businesses within the boundaries of the HBTBID, and are narrowly tailored. HBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in HBTBID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1) HBTBID Management District Plan A VISIT 19 March 27,2024 HUNTINGTON BEACH SURF CITY USA The assessment imposed by this HBTBID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in room night sales. The specific benefit of an increase in room night sales for assessed lodging businesses will be provided only to lodging businesses paying the HBTBID assessment,with tourism enhancement programs promoting lodging businesses paying the HBTBID assessment.The tourism enhancement programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the tourism enhancement programs that specifically benefit the assessed lodging businesses, the administration and contingency/reserve programs also provide the specific benefit of increased room night sales to the assessed lodging businesses. Although the HBTBID,in providing specific benefits to payors,may produce incidental benefits to non-paying businesses,the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that,"A specific benefit is not excluded from classification as a`specific benefit'merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor."3 2. Specific Government Service The assessment may also be utilized to provide, "a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product."4 The legislature has recognized that marketing and promotions services like those to be provided by the HBTBID are government services within the meaning of Proposition 265. Further, the legislature has determined that "a specific government service is not excluded from classification as a `specific government service' merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor."6 3. Reasonable Cost HBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the VHB, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from HBTBID-funded activities, be featured in lodging-specific advertising campaigns, and benefit from other HBTBID-funded programs. Non-assessed lodging businesses will not receive these, nor any other,HBTBID-funded services and benefits. The HBTBID-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-HBTBID funds. HBTBID funds shall only be spent to benefit the assessed businesses,and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses. 3 Government Code § 53758(a) 4 Cal. Const. art XIII C § 1(e)(2) 5 Government Code § 53758(b) 6 Government Code § 53758(b) HBTBID Management District Plan VISIT 20 March 27,2024 HUNTINGTON irBEACH SURF CITY USA D. Assessment The initial annual assessment rate was four percent (4%) of gross short-term room rental revenue. This Plan has been modified to increase the assessment rate to six percent (6%) of gross short-term room rental revenue. The modified assessment rate is effective beginning on July 1,2024,or as soon as possible thereafter, and shall remain in effect until the end of the HBTBID's term. Based on the benefit received,assessments will not be collected on: stays of more than thirty(30) consecutive days; stays by any federal or State of California officer or employee when on official business; and stays by any officer or employee for a foreign government who is exempt by reason of express provision of federal law or international treaty. • The term "gross room rental revenue" as used herein means: the consideration charged,whether or not received,for the occupancy of space in a lodging business valued in money,whether to be received in money,goods,labor or otherwise,including all receipts,cash,credits and property and services of any kind or nature,without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal,state or local taxes collected,including but not limited to transient occupancy taxes. The assessment is levied upon and a direct obligation of the assessed lodging business. However,the assessed lodging business may,at its discretion,pass the assessment on to transients. The amount of assessment,if passed on to each transient,shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the HBTBID assessment is identified separately it shall be disclosed as the "HBTBID Assessment." As an alternative, the disdosure may include the amount of the HBTBID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act,Government Code§13995 et seq.and shall be disclosed as the"Tourism Assessment." The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes. Bonds shall not be issued. E. Penalties and Interest The HBTBID shall reimburse the City of Huntington Beach for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent HBTBID assessment are sought to be recovered in the same collection action by the City,the HBTBID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying: 1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of ten percent(10%) of the amount of the assessment in addition to the amount of the assessment. 2. Continued Delinquency: Any lodging business that fails to meet any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent(10%) penalty first imposed. 3. Fraud If the City determines that the non-payment of any remittance due is due to fraud, a penalty of twenty-five percent(25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subparagraphs 1 and 2 of this subsection E. 4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one-half of one percent(0.5%) per month, HBTBID Management District PlanA VISIT 21 March 27,2024 HUNTINGTON BEACH SURF CITY USA or fraction thereof,on the amount of the assessment,exclusive of penalties, form the date on which the remittance first became delinquent until paid. 5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues shall become a part of the assessment herein required to be paid. 6. City not Responsible for Uncollected Amounts: The City shall not be responsible for uncollected amounts. F. Time and Manner for Collecting Assessments The HBTBID assessment will be implemented beginning February 1,2019 and will continue for nine (9)years and five(5)months through June 30,2028. The City will be responsible for collecting the assessment on a monthly or quarterly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to VHB. VII. GOVERNANCE A. Owners' Association The City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651,to identify the body that shall implement the proposed program, which shall be the Owners' Association of the HBTBID as defined in Streets and Highways Code HBTBID Management District Plan A VISIT 22 March 27,2024 HUNTINGTON irBEACH SURF CITY USA §36612. The City Council has determined that Visit Huntington Beach will continue to serve as the Owners'Association for the HBTBID, upon execution of a renewed contract between the City and VHB. B. Brown Act and California Public Records Act Compliance An Owners'Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.The Owners' Association is,however,subject to government regulations relating to transparency,namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners'Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the VHB board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners'Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly,the Owners'Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. C. Annual Report The VHB shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include: • Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district. • The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year. • The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. • The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. HBTBID Management District Plan VISIT 23 March 27,2024 HUNTINGTON BEACH SURF CITY USA APPENDIX 1- LAW ***THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18.PARKING PART 7.PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1.General Provisions ARTICLE 1.Declarations 36600.Citation of part This part shall be known and may be cited as the"Property and Business Improvement District Law of 1994." 36601.Legislative findings and declarations;Legislative guidance The Legislature finds and declares all of the following: (a)Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities,services,and activities in the business districts. (b)It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs,attract new businesses,and prevent the erosion of the business districts. (c)It is of particular local benefit to allow business districts to fund business related improvements, maintenance,and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d)Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city,even if property, businesses,or persons not assessed receive incidental or collateral effects that benefit them. (e)Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1)Crime reduction.A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied. (2)Job creation. (3)Business attraction. (4)Business retention. (5)Economic growth. (6)New investments. (f)With the dissolution of redevelopment agencies throughout the state,property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities,and create a clean and safe environment. (g)Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities,expenditures,and assessments by property-based districts.Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h)The act amending this section is intended to provide the Legislature's guidance with regard to this act,its interaction with the provisions of Article XIII D of the Constitution,and the determination of special benefits in property-based districts. (1)The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts,contributing to blight and other underutilization of property. (2)Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore,for special benefits to exist as a separate and distinct category from general benefits,the HBTBID Management District Plan VISIT 24 March 27,2024 HUNTINGTON ir BEACH SURF CITY USA' incidental or collateral effects of those special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3)It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined. 36602. Purpose of part The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation,Limitation and Majority Protest Act of 1931 (Division 4(commencing with Section 2800)). 36603.5.Part prevails over conflicting provisions Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part. 36604.Severability This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect.Assessments levied under this part are not special taxes. ARTICLE 2. Definitions 36606."Activities" "Activities"means,but is not limited to,all of the following that benefit businesses or real property in the district: (a)Promotion of public events. (b)Furnishing of music in any public place. (c)Promotion of tourism within the district. (d)Marketing and economic development,including retail retention and recruitment. (e)Providing security,sanitation,graffiti removal,street and sidewalk cleaning,and other municipal services supplemental to those normally provided by the municipality. (f)Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5."Assessment" "Assessment"means a levy for the purpose of acquiring, constructing, installing,or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district. 36607."Business" HBTBID Management District Plan A VISIT 25 March 27,2024 HUNTINGTON ifBEACH SURF CITY USA' "Business"means all types of businesses and includes financial institutions and professions. 36608."City" "City"means a city,county,city and county,or an agency or entity created pursuant to Article 1 (commencing with Section 6500)of Chapter 5 of Division 7 of Title 1 of the Government Code,the public member agencies of which includes only cities,counties,or a city and county,or the State of California. 36609."City council" "City council"means the city council of a city or the board of supervisors of a county,or the agency,commission,or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4."Clerk" "Clerk"means the clerk of the legislative body. 36609.5."General benefit" "General benefit"means,for purposes of a property-based district,any benefit that is not a"special benefit"as defined in Section 36615.5. 36610."Improvement" "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including,but not limited to,the following: (a)Parking facilities. (b)Benches,booths,kiosks,display cases,pedestrian shelters and signs. (c)Trash receptacles and public restrooms. (d)Lighting and heating facilities. (e)Decorations. (f)Parks. (g)Fountains. (h)Planting areas. (i)Closing,opening,widening,or narrowing of existing streets. (j)Facilities or equipment,or both,to enhance security of persons and property within the district. (k)Ramps,sidewalks,plazas,and pedestrian malls. (I)Rehabilitation or removal of existing structures. 36611."Management district plan";"Plan" "Management district plan"or"plan"means a proposal as defined in Section 36622. 36612."Owners'association" "Owners' association"means a private nonprofit entity that is under contract with a city to administer or implement improvements,maintenance,and activities specified in the management district plan.An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity.An owners'association is a private entity and may not be considered a public entity for any purpose,nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9(commencing with Section 54950)of Part 1 of Division 2 of Title 5 of the Government Code),at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act(Chapter 3.5(commencing with Section 6250)of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. 36614. "Property" "Property"means real property situated within a district. HBTBID Management District Plan A VISIT 26 March 27,2024 HUNTINGTON 1rBEACH SURF CITY USA' 36614.5."Property and business improvement district";"District" "Property and business improvement district," or "district," means a property and business improvement district established pursuant to this part. 36614.6."Property-based assessment" "Property-based assessment"means any assessment made pursuant to this part upon real property. 36614.7."Property-based district" "Property-based district"means any district in which a city levies a property-based assessment. 36615."Property owner";"Business owner";"Owner" "Property owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council."Business owner"means any person recognized by the city as the owner of the business."Owner"means either a business owner or a property owner.The city council has no obligation to obtain other information as to the ownership of land or businesses,and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner,the signature of the authorized agent of the business owner shall be sufficient. 36615.5."Special benefit" "Special benefit" means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements,maintenance,or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. 36616."Tenant" "Tenant"means an occupant pursuant to a lease of commercial space or a dwelling unit,other than an owner. ARTICLE 3.Prior Law 36617.Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities.The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)of this division)is valid and effective and is unaffected by this part. CHAPTER 2. Establishment 36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5.Requirement of consent of city council A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city.A city may not form a district within the unincorporated territory of a county without the consent of the board HBTBID Management District Plan A VISIT 27 March 27,2024 HUNTINGTON IFBEACH SURF CITY USA' of supervisors of that county.A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621.Initiation of proceedings;Petition of property or business owners in proposed district (a)Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied,the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b)The petition of property or business owners required under subdivision(a)shall include a summary of the management district plan.That summary shall include all of the following: (1)A map showing the boundaries of the district. (2)Information specifying where the complete management district plan can be obtained. (3)Information specifying that the complete management district plan shall be furnished upon request. (c)The resolution of intention described in subdivision(a)shall contain all of the following: (1)A brief description of the proposed improvements,maintenance, and activities,the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district,a statement as to whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities,and the location and extent of the proposed district. (2)A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments,which shall be consistent with the requirements of Section 36623. 36622.Contents of management district plan The management district plan shall include,but is not limited to,all of the following: (a)If the assessment will be levied on property,a map of the district in sufficient detail to locate each parcel of property and,if businesses are to be assessed,each business within the district.If the assessment will be levied on businesses,a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses,a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b)The name of the proposed district. (c)A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part.This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including,but not limited to,the Parking and Business Improvement Area Law of 1989(Part 6(commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d)The improvements,maintenance,and activities proposed for each year of operation of the district and the maximum cost thereof.If the improvements,maintenance,and activities proposed for each year of operation are the same, a description of the first year's proposed improvements, maintenance, and activities and a statement that the same improvements,maintenance,and activities are proposed for subsequent years shall satisfy the requirements of this subdivision. HBTBID Management District Plan A VISIT 28 March 27,2024 HUNTINGTON BEACH SURF CITY USA (e)The total annual amount proposed to be expended for improvements,maintenance,or activities,and debt service in each year of operation of the district. If the assessment is levied on businesses,this amount may be estimated based upon the assessment rate.If the total annual amount proposed to be expended in each year of operation of the district is not significantly different,the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f)The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business.The plan also shall state whether bonds will be issued to finance improvements. (g)The time and manner of collecting the assessments. (h)The specific number of years in which assessments will be levied.In a new district,the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.Notwithstanding these limitations,a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds.The management district plan may set forth specific increases in assessments for each year of operation of the district. (i)The proposed time for implementation and completion of the management district plan. (j)Any proposed rules and regulations to be applicable to the district. (k) (1)A list of the properties or businesses to be assessed,including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business,to defray the cost thereof. (2)In a property-based district,the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement,the maintenance and operation expenses of a public improvement,or the cost of the activities.An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits,if any,from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency,the State of California,or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.The value of any incidental,secondary,or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (1)In a property-based district,the total amount of all special benefits to be conferred upon the properties located within the property-based district. (m)In a property-based district,the total amount of general benefits,if any. (n)In a property-based district, a detailed engineer's report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o)Any other item or matter required to be incorporated therein by the city council. 36623.Procedure to levy assessment (a)If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b)If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code,except that notice shall be mailed to the owners of the businesses proposed to be assessed.A protest may be made orally or in writing by any interested person.Every written protest shall be filed with the clerk at or before the time fixed for the public hearing.The city council may waive any irregularity in the form or content of any written protest.A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and,if a person subscribing is not shown on the official records of the city as the owner of the business,the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay HBTBID Management District Plan VISIT 29 March 27,2024 HUNTINGTON 111 BEACH SURF CITY USA 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses,as contained in the resolution of intention,shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c)If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment,the notice and protest and hearing procedure for the property assessment shall comply with subdivision(a),and the notice and protest and hearing procedure for the business assessment shall comply with subdivision(b).If a majority protest is received from either the property or business owners,that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624.Changes to proposed assessments At the conclusion of the public hearing to establish the district,the city council may adopt,revise,change,reduce,or modify the proposed assessment or the type or types of improvements,maintenance,and activities to be funded with the revenues from the assessments.Proposed assessments may only be revised by reducing any or all of them.At the public hearing,the city council may only make changes in,to,or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance,and activities.Any modifications,revisions,reductions,or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625.Resolution of formation (a)If the city council, following the public hearing,decides to establish a proposed property and business improvement district,the city council shall adopt a resolution of formation that shall include,but is not limited to,all of the following: (1)A brief description of the proposed improvements,maintenance,and activities,the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses,or both within the district,a statement on whether bonds will be issued,and a description of the exterior boundaries of the proposed district,which may be made by reference to any plan or map that is on file with the clerk.The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance,and activities and the location and extent of the proposed district. (2)The number,date of adoption,and title of the resolution of intention. (3)The time and place where the public hearing was held concerning the establishment of the district. (4)A determination regarding any protests received.The city shall not establish the district or levy assessments if a majority protest was received. (5)A statement that the properties,businesses,or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6)A statement that the improvements,maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments.The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention,as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided,but shall be limited to marketing or signage pointing to the district. (7)A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements,maintenance,and activities funded by the proposed assessments, and, for a property-based district,that property within the district will receive a special benefit. (8)In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district. (b)The adoption of the resolution of formation and,if required,recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. HBTBID Management District Plan A VISIT 30 March27,2024 HUNTINGTON ivBEACH SURF CITY USA 36626. Resolution establishing district If the city council,following the public hearing,desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes that do not substantially change the proposed assessment,the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in Section 36625. 36627. Notice and assessment diagram Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or Section 36626,the clerk shall record a notice and an assessment diagram pursuant to Section 3114.No other provision of Division 4.5 (commencing with Section 3100)applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses,the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business,or on each category of business within each zone. 36628.5.Assessments on businesses or property owners The city council may levy assessments on businesses or on property owners,or a combination of the two,pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property- based assessment conforms with the requirements set forth in paragraph(2)of subdivision(k)of Section 36622. 36629.Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment,modification,or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business.The city council shall,to establish,modify,or disestablish a benefit zone or category of business,follow the procedure to establish,modify,or disestablish a property and business improvement district. 36630. Expiration of district;Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision(h)of Section 36622,a new management district plan may be created and the district may be renewed pursuant to this part. CHAPTER 3.Assessments 36631.Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment.Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax,and may provide for the same lien priority and penalties for delinquent payment.All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632.Assessments to be based on estimated benefit;Classification of real property and businesses; Exclusion of residential and agricultural property (a)The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may HBTBID Management District Plan A VISIT 31 March 27,2024 HUNTINGTON ifBEACH SURF CITY USA' classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b)Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c)Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments,and shall not be subject to any assessment pursuant to this part. 36633.Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626.Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634.Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636.Modification of plan by resolution after public hearing;Adoption of resolution of intention (a)Upon the written request of the owners'association,the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment,the city council shall comply with Section 36623.Notice of all other public hearings pursuant to this section shall comply with both of the following: (1)The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2)A complete copy of the resolution of intention shall be mailed by first class mail,at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b)The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637.Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5(commencing with Section 3100),in a manner consistent with the provisions of Section 36627. CHAPTER 3.5.Financing 36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds,under the Improvement Bond Act of 1915(Division 10(commencing with Section 8500)) HBTBID Management District Plan A VISIT 32 March 27,2024 HUNTINGTON irBEACH SURF CITY USA' or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4(commencing with Section 6584)of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds,although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b)The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements,specify the number of annual installments and the fiscal years during which they are to be collected.The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years. (c)Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt. CHAPTER 4.Governance 36650.Report by owners'association;Approval or modification by city council (a)The owners' association shall cause to be prepared a report for each fiscal year,except the first year,for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners' association's first report shall be due after the first year of operation of the district.The report may propose changes,including,but not limited to,the boundaries of the property and business improvement district or any benefit zones within the district,the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business,if a classification is used. (b)The report shall be filed with the clerk and shall refer to the property and business improvement district by name,specify the fiscal year to which the report applies,and,with respect to that fiscal year,shall contain all of the following information: (1)Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2)The improvements,maintenance,and activities to be provided for that fiscal year. (3)An estimate of the cost of providing the improvements,maintenance,and activities for that fiscal year. (4)The method and basis of levying the assessment in sufficient detail to allow each real property or business owner,as appropriate,to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year. (5)The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year. (6)The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c)The city council may approve the report as filed by the owners' association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651.Designation of owners' association to provide improvements,maintenance,and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements,maintenance,and activities described in the management district plan.If the management district plan designates an owners'association,the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5. Renewal 36660. Renewal of district;Transfer or refund of remaining revenues; District term limit HBTBID Management District Plan A VISIT 33 March 27,2024 HUNTINGTON IVBEACH SURF CITY USA" (a)Any district previously established whose term has expired,or will expire,may be renewed by following the procedures for establishment as provided in this chapter. (b)Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues,shall be transferred to the renewed district.If the renewed district includes additional parcels or businesses not included in the prior district,the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district.If the renewed district does not include parcels or businesses included in the prior district,the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c)Upon renewal,a district shall have a term not to exceed 10 years,or,if the district is authorized to issue bonds,until the maximum maturity of those bonds.There is no requirement that the boundaries,assessments, improvements,or activities of a renewed district be the same as the original or prior district. CHAPTER 6.Disestablishment 36670.Circumstances permitting disestablishment of district;Procedure (a)Any district established or extended pursuant to the provisions of this part,where there is no indebtedness, outstanding and unpaid,incurred to accomplish any of the purposes of the district,may be disestablished by resolution by the city council in either of the following circumstances: (1)If the city council finds there has been misappropriation of funds,malfeasance,or a violation of law in connection with the management of the district,it shall notice a hearing on disestablishment. (2)During the operation of the district,there shall be a 30-day period each year in which assessees may request disestablishment of the district.The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district.Each successive year of operation of the district shall have such a 30-day period.Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied,the city council shall pass a resolution of intention to disestablish the district.The city council shall notice a hearing on disestablishment. (b)The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section.The resolution shall state the reason for the disestablishment,shall state the time and place of the public hearing,and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners.The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund;Use of outstanding revenue collected after disestablishment of district (a)Upon the disestablishment or expiration without renewal of a district, any remaining revenues,after all outstanding debts are paid,derived from the levy of assessments,or derived from the sale of assets acquired with the revenues,or from bond reserve or construction funds,shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b)If the disestablishment occurs before an assessment is levied for the fiscal year,the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. HBTBID Management District Plan A VISIT 34 March 27,2024 HUNTINGTON BEACH SURF CITY USA APPENDIX 2—ASSESSED BUSINESSES* Business Name/ Identification Address, City,State,ZIP Number Hyatt Regency Huntington Beach Resort 21500 Pacific Coast Hwy, Huntington Beach,CA 92648 &Spa The Waterfront Beach Resort, a Hilton 21100 Pacific Coast Hwy, Huntington Beach,CA 92648 Hotel Pasea Hotel &Spa 21080 Pacific Coast Hwy, Huntington Beach, CA 92648 Kimpton Shorebreak Resort 500 Pacific Coast Hwy, Huntington Beach, CA 92648 The Hotel Huntington Beach 7667 Center Ave, Huntington Beach, CA 92647 SpringHill Suites by Marriott 7872 Edinger Ave, Huntington Beach, CA 92647 Comfort Inn &Suites Huntington Beach 16301 Beach Blvd, Huntington Beach,CA 92647 Extended Stay America 5050 Skylab Rd, Huntington Beach, CA 92647 Huntington Suites 7971 Yorktown Ave, Huntington Beach,CA 92648 Best Western Surf City 19360 Beach Blvd, Huntington Beach,CA 92648 Huntington Beach Inn 800 Pacific Coast Hwy, Huntington Beach,CA 92648 Travelodge Ocean Front 17205 Pacific Coast Hwy,Sunset Beach, CA 90742 Beach Inn Motel 18112 Beach Blvd, Huntington Beach, CA 92648 Starlight Inn 18382 Beach Blvd, Huntington Beach, CA 92648 777 Motor Inn 16240 Pacific Coast Hwy, Huntington Beach, CA 92649 Oceanview Motel 16196 Pacific Coast Hwy, Huntington Beach, CA 92649 Best Western Harbour Inn &Suites 16912 Pacific Coast Hwy,Sunset Beach, CA 90742 Ocean Surf Inn &Suites 16555 Pacific Coast Hwy,Sunset Beach, CA 90742 Surf City Inn 16220 Pacific Coast Hwy, Huntington Beach, CA 92649 Huntington Surf Inn 720 Pacific Coast Hwy, Huntington Beach, CA 92648 Hotel Europa 7561 Center Ave, Huntington Beach, CA 92647 STR-2021-0158 7771 Ellis Avenue Huntington Beach CA 92648 STR-2021-0174 529 Lake Street, Huntington Beach CA 92648 STR-2021-0060 9151 Adams Avenue Huntington Beach CA 92646 STR-2021-0165 4542 Prelude Drive Huntington Beach CA 92649 STR-2022-0016 5922 Donlyn Drive Huntington Beach CA 92649 STR-2022-0033 207 11th Street, Huntington Beach CA 92648 STR-2022-0028 8462 Modale Drive Huntington Beach CA 92646 STR-2021-0155 112 8th Street, Huntington Beach CA 92648 STR-2022-0036 16811 14th Street#1 Sunset Beach CA 90742 STR-2022-0053 16511 23rd Street# 1 Sunset Beach CA 90742 STR-2021-0164 714 Oceanhill Drive Huntington Beach CA 92648 STR-2022-0035 912 Main Street, Huntington Beach CA 92648 STR-2022-0032 17162 Elm Lane, Huntington Beach CA 92647 STR-2022-0039 16752 16th Street# 1 Sunset Beach CA 90742 STR-2021-0136 16571 S Pacific Avenue Sunset Beach CA 90742 STR-2021-0166 2300 Delaware Street# 1 Huntington Beach CA 92648 STR-2021-0152 231 1st Street#7 Huntington Beach CA 92648 STr-2022-0051 16651 S Pacific Avenue#1 Sunset Beach CA 90742 HBTBID Management District Plan A VISIT 35 March 27,2024 HUNTINGTON BEACH SURF CITY USA' Business Name/ Identification Address, City,State,ZIP Number STR-2021-0091 16761 Bayview Drive Sunset Beach CA 90742 STR-2022-0056 17116 4th Street#2 Sunset Beach CA 90742 STR-2022-0077 17029 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0083 8101 Ellis Avenue Huntington Beach CA 92646 STR-2023-0049 20632 Goshawk Lane Huntington Beach CA 92646 STR-2022-0049 16917 Park Avenue#2 Sunset Beach CA 90742 STR-2022-0073 8312 Snowbird Drive Huntington Beach CA 92646 STR-2022-0021 16385 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0012 20731 Spindrift Lane Huntington Beach CA 92646 STR-2022-0086 18091 Newland Street Huntington Beach CA 92646 STR-2022-0087 212 6th Street, Huntington Beach CA 92648 STR-2022-0031 216 16th Street, Huntington Beach CA 92648 STR-2022-0075 726 14th Street, Huntington Beach CA 92648 STR-2022-0085 1106 Huntington Street Huntington Beach CA 92648 STR-2022-0095 115 Huntington Street Huntington Beach CA 92648 STR-2021-0169 17201 Sims Lane Huntington Beach CA 92649 STR-2021-0146 16772 Pacific Coast Highway Sunset Beach CA 90742 STR-2021-0133 610 Main Street, Huntington Beach CA 92648 STR-2022-0099 225 2nd Street, Huntington Beach CA 92648 STR-2022-0003 403 10th Street, Huntington Beach CA 92648 STR-2022-0105 9192 Paddock Circle Huntington Beach CA 92646 STR-2022-0100 19961 Estuary Lane Huntington Beach CA 92646 STR-2022-0107 301 16th Street, Huntington Beach CA 92648 STR-2022-0013 221 6th Street, Huntington Beach CA 92648 STR-2022-0081 609 Lake Street, Huntington Beach CA 92648 STR-2022-0106 16591 Lucia Lane Huntington Beach CA 92647 STR-2022-0109 16841 S Pacific Avenue Sunset Beach CA 90742 STR-2021-0040 4671 Los Patot Avenue Huntington Beach CA 92649 STR-2022-0102 17891 Caledonia Circle Huntington Beach CA 92647 STR-2023-0062 16421 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0091 8331 Varas Circle Huntington Beach CA 92646 STR-2022-0117 6871 Oxford Drive Huntington Beach CA 92647 STR-2022-0122 520 9th Street, Huntington Beach CA 92648 STR-2022-0082 604 18th Street, Huntington Beach CA 92648 STR-2022-0126 1003 California Street#B Huntington Beach CA 92648 STR-2023-0092 16742 Bayview Drive Sunset Beach CA 90742 STR-2023-0106 16361 S Pacific Avenue Sunset Beach CA 90742 STR-2022-0004 306 14th Street, Huntington Beach CA 92648 STR-2023-0110 16778 Pacific Coast Highway#A Sunset Beach CA 90742 STR-2023-0109 8231 Munster Drive Huntington Beach CA 92646 STR-2023-0098 5231 Meadowlark Drive Huntington Beach CA 92649 STR-2022-0124 6822 Sylvia Drive Huntington Beach CA 92647 STR-2023-0118 16756 Pacific Coast Highway Sunset Beach CA 90742 HBTBID Management District Plan A VISIT 36 March 27,2024 HUNTINGTON BEACH SURF CITY USA* Business Name/ Identification Address, City, State,ZIP Number STR-2021-0008 7561 Danube Drive Huntington Beach CA 92647 STR-2023-0116 16855 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2023-0043 8261 Munster Drive Huntington Beach CA 92646 STR-2022-0116 15311 Yorkshire Lane Huntington Beach CA 92647 STR-2023-0095 512 14th Street, Huntington Beach CA 92648 STR-2023-0102 603 21st Street, Huntington Beach CA 92648 STR-2022-0110 6062 Kelsey Circle Huntington Beach CA 92647 STR-2022-0127 214 Goldenwest Street Huntington Beach CA 92648 STR-2022-0071 17312 Lee Circle Huntington Beach CA 92647 STR-2021-0171 305 California Street#B Huntington Beach CA 92648 STR-2022-0118 15971 Wicklow Lane Huntington Beach CA 92647 STR-2022-0084 5381 Kenilworth Drive Huntington Beach CA 92649 STR-2023-0124 16575 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2022-0134 19132 Stingray Lane Huntington Beach CA 92646 STR-2022-0097 841 Frankfort Avenue Huntington Beach CA 92648 STR-2022-0144 17151 Granada Lane Huntington Beach CA 92647 STR-2021-0175 7651 Clay Avenue Huntington Beach CA 92648 STR-2023-0117 6045 Summerdale Drive Huntington Beach CA 92647 STR-2022-0108 210 7th Street, Huntington Beach CA 92648 STR-2023-0089 17020 Edgewater Lane Huntington Beach CA 92649 STR-2022-0094 16778 Bayview Drive#A Sunset Beach CA 90742 STR-2023-0134 9302 Candlewood Drive Huntington Beach CA 92646 STR-2022-0139 7562 Washington Drive Huntington Beach CA 92647 STR-2023-0142 411 14th Street#C Huntington Beach CA 92648 STR-2022-0140 17220 Courtney Lane Huntington Beach CA 92649 STR-2023-0127 16541 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0147 218 19th Street#B Huntington Beach CA 92648 STR-2023-0151 307 7th Street#C Huntington Beach CA 92648 STR-2023-0150 221 Chicago Avenue Huntington Beach CA 92648 STR-2022-0119 4642 Minuet Drive Huntington Beach CA 92649 STR-2023-0133 20681 Chaucer Lane Huntington Beach CA 92646 STR-2022-0005 409%6th Street, Huntington Beach CA 92648 STR-2023-0160 1508 Olive Avenue#A Huntington Beach CA 92648 STR-2022-0067 221 2nd Street, Huntington Beach CA 92648 STR-2022-0152 5131 Dovewood Drive Huntington Beach CA 92649 STR-2023-0112 16391 S Pacific Avenue#1 Sunset Beach CA 90742 STR-2021-0151 427 Lake Street, Huntington Beach CA 92648 STR-2022-0111 5601 Rogers Drive Huntington Beach CA 92649 STR-2022-0088 426 Goldenwest Street Huntington Beach CA 92648 STR-2022-0154 119 6th Street, Huntington Beach CA 92648 STR-2021-0112 14895 Sunnycrest Lane Huntington Beach CA 92647 STR-2022-0158 17312 Norcon Circle Huntington Beach CA 92649 STR-2023-0187 323 19th Street#1 Huntington Beach CA 92648 HBTBID Management District Plan A VISIT 37 March 27,2024 HUNTINGTON ivBEACH SURF CITY USA` Business Name/ Identification Address, City,State,ZIP Number STR-2023-0164 407 Alabama Street Huntington Beach CA 92648 STR-2023-0189 235 1st Street, Huntington Beach CA 92648 STR-2022-0163 1910 Alsuna Lane Huntington Beach CA 92648 STR-2023-0193 16962 9th St 1,Sunset Beach CA 90742 STR-2023-0211 17012 N Pacific Ave Sunset Beach CA 90742 STR-2023-0198 17016 7th St,Sunset Beach CA 90742 STR-2022-0165 8142 Sterling Drive Huntington Beach CA 92646 STR-2022-0164 19142 Stingray Lane Huntington Beach CA 92646 STR-2023-0196 1316 Alabama Street Huntington Beach CA 92648 STR-2022-0054 216 10th Street, Huntington Beach CA 92648 STR-2022-0159 222 Chicago Avenue#B Huntington Beach CA 92648 STr-2022-0150 9692 Durham Drive Huntington Beach CA 92646 STR-2022-0066 406 7th Street, Huntington Beach CA 92648 STR-2022-0175 632 Indianapolis Avenue Huntington Beach CA 92648 STR-2022-0168 16772 Broadway#4 Huntington Beach CA 92649 STR-2022-0146 19821 Bushard Street Huntington Beach CA 92646 STR-2022-0169 1411 Delaware Street# 1 Huntington Beach CA 92648 STR-2022-0161 1915 Delaware Street Huntington Beach CA 92648 STR-2023-0008 228 Chicago Avenue# 1 Huntington Beach CA 92648 STR-2022-0170 16561 Tiber Lane Huntington Beach CA 92647 STR-2023-0011 3854 Humboldt Drive Huntington Beach CA 92649 STR-2022-0176 2015 California Street Huntington Beach CA 92648 STR-2022-0157 8841 Jarrett Circle Huntington Beach CA 92647 STR-2022-0166 14582 Aspen Circle Huntington Beach CA 92647 STR-2023-0010 1107 Lake Street Huntington Beach CA 92648 STR-2022-0113 16681 Landau Lane Huntington Beach CA 92647 STR-2022-0173 6421 Sligo Circle Huntington Beach CA 92647 STR-2023-0023 215 Huntington Street#A Huntington Beach CA 92648 STR-2023-0018 636 Indianapolis Avenue Huntington Beach CA 92648 STR-2022-0172 18276 Lisa Lane, Huntington Beach CA 92646 STR-2022-0155 5782 Spa Drive, Huntington Beach CA 92647 STR-2023-0014 7651 Rhone Lane Huntington Beach CA 92647 STR-2023-0046 113 6th Street, Huntington Beach CA 92648 STR-2023-0016 210 6th Street, Huntington Beach CA 92648 STR-2021-0123 447 Lake Street, Huntington Beach CA 92648 STR-2023-0026 946 11th Street, Huntington Beach CA 92648 STR-2021-0172 6421 Jasmine Drive Huntington Beach CA 92648 STR-2023-0060 215 Portland Avenue Huntington Beach CA 92648 STR-2023-0054 610 11th Street, Huntington Beach CA 92648 STR-2023-0058 222 18th Street#A Huntington Beach CA 92648 STR-2021-0103 16525 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0039 743 13th Street, Huntington Beach CA 92648 STR-2023-0040 6661 Wrenfield Drive Huntington Beach CA 92647 HBTBID Management District Plan A VISIT 38 March 27,2024 HUNTINGTON BEACH SURF CITY USA" Business Name/ Identification Address, City,State,ZIP Number STR-2023-0021 117 6th Street, Huntington Beach CA 92648 STR-2023-0047 8252 Michael Drive Huntington Beach CA 92647 STR-2023-0029 218 18th Street#B Huntington Beach CA 92648 STR-2023-0057 7882 Aldrich Drive# 102 Huntington Beach CA 92647 STR-2023-0041 21891 Seacrest Lane Huntington Beach CA 92646 STR-2023-0033 20441 Regal Circle Huntington Beach CA 92646 STR-2023-0036 213 17th Street#A Huntington Beach CA 92648 STR-2023-0078 14892 Quill Circle Huntington Beach CA 92647 STR-2023-0103 8371 Friesland Drive Huntington Beach CA 92647 STR-2023-0076 6921 Tucana Drive Huntington Beach CA 92647 STR-2023-0051 510 Alabama Street Huntington Beach CA 92648 STR-2023-0056 2102 Pacific Coast Highway Huntington Beach CA 92648 STR-2023-0034 8131 Terry Drive Huntington Beach CA 92647 STR-2022-0174 8192 Falmouth Drive Huntington Beach CA 92646 STR-2023-0075 16141 Malaga Lane#A Huntington Beach CA 92647 STR-2023-0108 404 11th Street, Huntington Beach CA 92648 STR-2023-0125 16605 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0111 10051 Cutty Sark Drive Huntington Beach CA 92646 STR-2023-0055 16892 Baruna Lane Huntington Beach CA 92649 STR-2023-0144 16782 Heritage Lane Huntington Beach CA 92647 STR-2023-0061 601 7th Street, Huntington Beach CA 92648 STR-2022-0041 1020 Pacific Coast Highway#B Huntington Beach CA 92648 STR-2023-0020 414 8th Street, Huntington Beach CA 92648 STR-2023-0184 20282 Colonial Circle Huntington Beach CA 92646 STR-2023-0181 20662 Goshawk Lane Huntington Beach CA 92646 STR-2023-0196 1316 Alabama Street 1 Huntington Beach CA 92648 STR-2023-0188 19621 Occidental Lane Huntington Beach CA 92646 STR-2023-0094 9632 Peppertree Drive Huntington Beach CA 92646 STR-2023-0210 111 7th Street, Huntington Beach CA 92648 STR-2023-0218 201 Huntington Street 201 Huntington Beach CA 92648 STR-2023-0182 17052 Greentree Lane Huntington Beach CA 92649 STR-2023-0204 17622 Prescott Lane Huntington Beach CA 92647 STR-2023-0217 15432 Shasta Lane Huntington Beach CA 92647 STR-2023-0170 17082 5th Street 2 Sunset Beach CA 90742 STR-2023-0213 10401 Monitor Drive Huntington Beach CA 92646 STR-2023-0222 17165 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0180 16612 Graham Place Huntington Beach CA 92649 STR-2024-0004 6701 Walton Drive Huntington Beach CA 92647 STR-2024-0008 21252 Banff Lane Huntington Beach CA 92646 STR-2023-0165 610 17th Street, Huntington Beach CA 92648 STR-2023-0202 17026 7th Street,Sunset Beach CA 90742 STR-2023-0136 16721 Phelps Lane Huntington Beach CA 92649 STR-2024-0003 119 9th Street, Huntington Beach CA 92648 HBTBID Management District Plan VISIT 39 March 27,2024 HUNTINGTON BEACH SURF CITY USA` Business Name/ Identification Address, City, State,ZIP Number STR-2023-0178 510 9th Street, Huntington Beach CA 92648 STR-2024-0014 17155 S Pacific Avenue Sunset Beach CA 90742 STR-2023-0149 16791 Bayview Drive Sunset Beach CA 90742 STR-2023-0066 9971 Kings Canyon Drive Huntington Beach CA 92646 STR-2023-0186 124 Main Street 303 Huntington Beach CA 92648 STR-2024-0015 8021 Mermaid Circle Huntington Beach CA 92646 STR-2024-0025 115 7th Street, Huntington Beach CA 92648 STR-2024-0032 516 Huntington Street Huntington Beach CA 92648 *As of March 2024 **The list was developed with the most reliable information provided; however,the list may contain discrepancies.This list shall include any future to-be opened lodging businesses.Any lodging business that may have been missed in this list, but is still within the boundaries of the HBTBID,shall also be subject to assessment. HBTBID Management District Plan VISIT 40 March 27,2024 HUNTINGTON BEACH SURF CITY USA" Request to Modify the \TlNG - T •�, Management District Plan t .••• ��oRPORATe •••. for the Huntington Beach • -� ••• Tourism Business Improvement District •.;Fe.• � •.• O •.. o wq ..,...•- P OIIMT\i cif .ram P April 16, 2024 Background • HB Tourism Business Improvement District (HBTBID) 00,/, %TIN. formed in 2014 pursuant to the CA Property and �i!�° = h4 t,•.,�F���` Business Improvement District Law of 1994 ' •s =_u _ � • HBTBID purpose is to market HB to increase �s� 4F ����� overnight room sales � Fc ;,;;i9.y, `��i g aUNTY C�ef • Funding derived from assessments collected from lodging businesses (paid by guests) operating within pis City boundaries VISIT • HBTBID was renewed in 2019 and runs through t HUNTINGTON June 30, 2028 BEACH • Management District Plan (MDP) identifies funds SURF CITY USA" and outlines programs HBTBID Gorden Crone • Comprised of approx. 21 hotels/motels 17,4 iw and 200 Short Term Rentals (STRs) Oranee • Current assessment rate is 4% of gross r-- i i` e 'e, short-term lodging revenue (separate from 10% Transient Occupancy Tax (TOT) !� �\ \t F Ullt 1'ton ;- collected by City) .1 B.a c 1� f • Boundary includes all lodging ,_� — I I businesses, existing and in the future, \ within the City 1 — — Ng1r;. Gaa Sfez • Total assessments approximately — _ii $7 million for FY 23-24 1°',,‘'? Nntpc:* ..:: Head'. Visit Huntington Beach (vHB) • Visit Huntington Beach (VHB), a non-profit 501(c)6 organization, serves as the HBTBID Owners' Association 2019-2028 � r. • Consists of 17 staff and 22 board members VISIT ir HUNTINGTON BEACH • Responsible for implementing the MDP programs and submitting an annual report to City Council • Management Agreement between City and s= ° q _ ,tt VHB outlines responsibilities of both parties related to HBTBID funding and programs HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT • City collects assessments and then MANAGEMENT DISTRICT PLAN distributes funds to VHB HBTBID Modification Request • 2019 - City began retaining 100% of TOT revenues; Assessment rate increased 3% to 4% to mitigate TOT loss • HBTBID assessment is the only dedicated funding source to market Surf City USA • Competitive cities have dedicated more resources and are adding lodging properties/attractions making funding deficit gap greater each year • VHB is seeking to modify the MDP to increase assessment rate from 4% to 6% to remain competitive and ensure that tourism promotion funding is adequate VHB Comparative Set Location Amount Raised Assessment Rate TOT Rate Total Guest Char:e Anahei a $17,500,000 2% room revenue 15% 17% Mammoth a e $10,800,000 1% room revenue 13% 14% Newport Beach i. $13,000,000 5% room revenue 10% 15% Palm Springs $17,000,000 1%room revenue 14% 15% San Diego $41,000,000 2%room revenue 10% 12% San Luis Obispo $10,400,000 1%room revenue 10% 11% Santa Barbara $10,700,000 2% room revenue 12% 14% $7,000,000 4% room revenue 10% OC Product Additions/Enhancements NEWPORT BEACH OC VIBE • Vea Newport Beach • Hotel (500 Rooms) • Pendry hotel • RH Gallery & Rooftop Café DISNEYLAND • Disneyland Hotel ANAHEIM • Vacation Club Tower • JW Marriott Anaheim Resort • Pixar Pier Hotel • The Westin Anaheim Resort • Downtown Disney s SOUTH COUNTY Nt^°"` 'f . r. • Waldorf Astoria 1lln , 3 'A c • Ritz Carlton _.";,i pi • Dana Point Harbor 1;;Iyl 1. , k1. e { : Proposed Modified Budget Sales & Marketing (65%) • SurfCityUSA.com website, media buys $ and seasonal marketing campaigns, : udget Categor u r _ Existing Proposed public relations, social media, consumer Sales & Marketing 65% advertising, the official Visitor Guide, 72% maps, historical walking tours and the Tourism Enhancement Programs 10% Surf City USA Barrel Trail, and destination meeting sales. Administration 19% 19% Tourism Enhancement Programs (10%) Contingency/Reserve 8% 5% • Elevate the visitor experience (improved City Admin Fee 1% 1% wayfinding signage, temporary summer beach restrooms, a nighttime Total Budget (Approximately) $7M $10M ambassador program, infrastructure improvements, improved accessibility, and more). Proposed Modified Budget 2024 VHB PROPOSED MODIFIED BUDGET: Annual Assessment Budget $10,000,000 VHB's FY23-24 budget is approximately$7 million. With a 2% increase in TBID assessments,VHB forecasts its budget to be approximately$10M. This amount is reflected below. All proposed programs funded by TBID assessments must be approved by the VHB Board during the annual budget process and must adhere to state laws governing these assessment expenditures. Contingency/Reserve City Admin Fee $500,000(5%) $100,000(1%) Administration $1,900,000(19%) Sales&Marketing $6,500,000(65%) Tourism Enhancement Programs $1,000,000(10%) • Includes Destination Product Development(DPD)and Visitor Services Enhancements(VSE)Programs from 2019-2024 MDP HBTBID Modification Schedule Resolution • Upon VHB written request, City Council may adopt a Resolution of Of April 16 Intention (ROI) which states the proposed modification and Intention initiates MDP modification proceedings • Notice of proposed modification mailed at least 45 days prior to public hearing Notice April Ma • ROI mailed to each lodging business owner at least 10 days before y • public hearing • Newspaper publishing at least 7 days before public hearing Public • Public meeting to allow public testimony Meeting May 7 • No Council action required Public • Public hearing, not more than 90 days after the adoption of the ROI, on the proposed MDP modifications Hearing June 4 • City Council, following the public hearing, may decide to modify & Resolution of the HBTBID and adopt a Resolution of Modification I Modification Management Agreement Amendment • Management Agreement between City and VHB outlines responsibilities of both parties related to HBTBID funding and programs • If the MDP is modified, then the Management Agreement would be amended to define specific Tourism Enhancement Programs that both the City and VHB would fund during the remainder of HBTBID term. VHB TEPs City TEP Wayfinding Downtown Parking Structure Upgrades Walkability & Connectivity Downtown Specific Plan Improvements Temporary Beach Restrooms Circuit Shuttle Nighttime Ambassador Program PCH & 6th Pedestrian Path Accessibility All-Inclusive Playground Upgrades Bike Valet Bluff Top Park Lighting Beach Event Infrastructure Enhanced Downtown Maintenance Improved Surf Museum for LA28 Restroom Upgrades Recommendation • Adopt Resolution No. 2024-13 declaring the City's Intention to Modify the Management District Plan for the Huntington Beach Tourism Business Improvement District, • Set a Public Meeting date of May 7, 2024, and • Set a Public Hearing date of June 4, 2024 Questions ? i 1 I 71' JIj IPilmffilockni. ', 1,.....,. ... ......,,,.,..,,..;--.,,,,,,%-ar ,..:—.......... , , ji .... ... . ..... _ ...... ' -— — \., ,,,,t4 ,,,,,, ,•. e ••• ., _ , v,,,, ,.., • $ , ,. ......-- -- ru filWr- -„friot•:.,- —,,,-_ —•,......\-.-: , 0 f er.44...- _... .........„ . ' .: 1 6.I!i.77- •••61,&711.1 ." - -7--— • 1 ,„%)r'''r....., . ' - • • ?:'• ••z• * --., .........4 ' -. - -- • :,' 'foe'rer.2....P.5- -,..:..' . ; ,- , ...........'...P.- - - ..-. -,„:‘,..• ....2,1„ r".4111.....,.. ..i.:,• 41;_...11,:,- 4 • .:, ,. ...‘„, • c--,1,--, .„,.._. -4--, „....... ,_ . 4iit, From: Jennifer Williams To: suoolementalcomm(Osurfcity-hb.orq Cc: Jeff Miyaoka Subject: Re:Email Your Support for Tuesday,April 16 City Council Meeting Date: Monday,April 15,2024 11:41:38 AM Attachments: jmage001.onq email of Intent to Su000rt-TBID Modification for CC Mta April 16 2024.odf My apologies please see attched, Jen Williams Sr. Marketing Director From: Moore,Tania<Tania.Moore@surfcity-hb.org>on behalf of supplementalcomm@surfcity- hb.org<supplementalcomm@surfcity-hb.org> Sent: Monday,April 15, 2024 10:45 AM To:Jennifer Williams<JLWilliams@centennialrec.com>; supplementalcomm@surfcity-hb.org <supplementalcomm@surfcity-hb.org> Cc:Jeff Miyaoka <JMiyaoka@centennialrec.com> Subject: RE: Email Your Support for Tuesday,April 16 City Council Meeting ***This message is from an EXTERNAL sender*** Good morning— Please be advised there is no attachment to this email. Thank you, Tania Moore, CMC Senior Deputy City Clerk City Clerk's Office 714-536-5209 tania.moore@surfcity-hb.org From:Jennifer Williams<JLWilliams@centennialrec.com> Sent: Monday,April 15, 2024 9:41 AM To:supplementalcomm@surfcity-hb.org Cc:Jeff Miyaoka <JMiyaoka@centennialrec.com> Subject: Email Your Support for Tuesday,April 16 City Council Meeting Importance: High Dear Mayor&City Council, Please see attached letter in support of Resolution No.2024-13.Please act this letter as Pacific Citys support of this Resolution. SUPPLEMENTAL Please feel free to reach me at any time should you wish to discuss our support further, COMMUNICATION 4/16/2024 Meeting Date: 13(23-1042) Agenda Item No.; Jen Williams Jen Williams Sr. Marketing Director&Public Relations o.714.960.1238 a.21058 Pacific Coast Hwy,Ste M220,Huntington Beach,CA 92648 www.gopac ificcitv.coni CITY 2actfk CITY Dear Mayor and City Council, Regarding agenda item#13 of the Huntington Beach City Council Meeting on Tuesday,April 16, 2024. I'm writing in support of adopting Resolution No. 2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. The tourism industry is an essential part of Huntington Beach,with an estimated 2.2 million non-OC resident visitors in 2023.We are part of Huntington Beach's local economy, contributing millions of dollars in taxes. By bringing visitors to Huntington Beach, our industry also brings an additional income source for local businesses, helping to keep their doors open and their workers employed not just during the busy peak visitor seasons, but year-round. Over the next few years, Huntington Beach stands to lose substantial visitor industry market share to other OC and coastal California cities,who are all vying to attract visitors who spend millions of dollars annually. Many also have new hotel properties, new attractions or attraction upgrades in the pipeline,while Huntington Beach does not, making us less competitive compared to other popular OC tourism destinations. If Huntington Beach loses visitor industry market share,this will also reduce the City's overall revenues generated by visitors, such as TOT, sales tax and parking revenue. An increase in TBID funds would ensure Huntington Beach's tourism industry has essential funds to keep pace with the cost of doing business; reinvest into sales and marketing efforts to increase visitation to Huntington Beach, overnight stays at Huntington Beach paid lodging properties and encourage more visitor spend; and leverage upcoming large- scale world events such as the World Cup and the Olympics. Huntington Beach's non-tourism businesses and residents also will benefit from this modified program.With more visitors coming to Huntington Beach, local businesses will benefit from more foot traffic and potential sales that will help keep them open year-round, especially during the slow season.As part of the modified program,funds will also be spent on several improvements and enhancements in Downtown Huntington Beach,which can be enjoyed by Huntington Beach residents as well. I believe this modification will benefit not only the tourism BID and local businesses, but will also provide much needed funds to the city and make Huntington Beach a better place. I ask that City Council support the resolution of intent. Thank you. Jennifer Williams, Sr. Director of Marketing&Public Relations, Pacific City From: Nicole LIidQ To: 5unolementalcommCa surfdty-hb.orq Cc: Kelly Miller Subject: Support of Resolution No.2024-13,the Resolution of Intent to Modify the HB Tourism Business Improvement District(TBID) Date: Monday,April 15,2024 5:48:17 PM Attachments: }iBTBID Modification Petitions 2024.odf Sent on behalf of the Visit Huntington Beach Board of Directors: Dear Mayor and City Council, Thank you for your consideration of Resolution No. 2024-13,the Resolution of Intent to Modify the HB Tourism Business Improvement District(TBID).The VHB Board of Directors,which represents the Owners Association and assessed TBID businesses, urges you to support this resolution. Please find attached signed petitions from the majority stakeholders in the TBID, representing approximately 80%of the TBID collections. Over a year ago,these TBID stakeholders analyzed the monthly TOT and TBID revenue reports received from the City and were concerned that HB was losing visitor market share to neighboring tourism cities.VHB staff conducted research and analyzed the trends to confirm their concerns were warranted.With numerous other Orange County and coastal California cities vying for visitor attention and destination spending, Huntington Beach faces the risk of losing market share if the tourism industry does not remain proactive in our efforts to attract visitors.Without strategic investments and enhancements, HB may fall behind competitors who are actively developing new attractions and accommodations. The modification of the TBID presents a vital opportunity to bolster Huntington Beach's position in the tourism market. By increasing TBID funds, HB's tourism industry can allocate resources towards essential initiatives such as marketing campaigns, event sponsorships, and infrastructure improvements.These investments will not only drive visitor numbers and overnight stays but also maximize the economic benefits derived from large-scale events like the World Cup and the Olympics. Crucially,the benefits of a thriving tourism industry extend beyond the businesses directly involved. Increased visitor numbers translate to greater foot traffic and spending opportunities for local establishments, benefitting non-tourism businesses and residents alike. In addition, increased visitor numbers and overnight stays would generate additional TOT and sales tax revenue, benefitting the City. Moreover, enhancements in Downtown Huntington Beach funded through the modified program will enhance the overall quality of life fo lut_SUP ,.FMFNTAL. community. COMMUNICATION 4/16/2024 Meeting Date: 13 (23-1042) Agenda Item No.• In light of these considerations,we respectfully urge the City Council to lend their support to the resolution of intent. By doing so,we can ensure that Huntington Beach remains a vibrant_ and economically prosperous destination for visitors and residents alike. Board of Directors Visit Huntington Beach PETITION TO THE CITY OF HUNTINGTON BEACH IN SUPPORT OF MODIFYING THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT Below is a petition to the City of Huntington Beach to initiate proceedings to modify the Huntington Beach Tourism Business Improvement District in accordance with the Property and Business Improvement District Law of 1994,Streets and Highways Code section 36600 et seq.,for the purpose of increasing the assessment rate from 4%to 6%to provide services as described in the summary of the Management District Plan attached hereto as Exhibit A. Lodging Business Establishment&Address Lodging Business Owner \r‘e .. LrCYo \ k GC,1 geCOr3C \-Ne, \ Gies- COe9C'ie-G‘\ C/` 21\OO 2cc C. COGsE Mwut. \-V-A^A. �G .. , °QS) t The undersigned is the lodging business owner or the authorized representative of the lodging business owner and is the person legally authorized and entitled to sign this petition. r (� r\Cv.\{,\'e \\SCN-NC'✓ C;evNe.rCAMaY.4ye- Owner/Owner Representative Name(printed) Title QGJLASA CfN SCX Sia(42-H Owner/Owner Representative Signature Date A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to: Kelly Miller, President&CEO Visit Huntington Beach 155 Fifth Street,Suite 111 Huntington Beach,CA 92648 4 - PETITION TO THE CITY OF HUNTINGTON BEACH IN SUPPORT OF MODIFYING THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT Below is a petition to the City of Huntington Beach to initiate proceedings to modify the Huntington Beach Tourism Business Improvement District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of increasing the assessment rate from 4% to 6%to provide services as described in the summary of the Management District Plan attached hereto as Exhibit A. Lodging Business Establishment&Address Lodging Business Owner 21500 Pacific Coast Highway, Huntington Beach, CA 92648 Hyatt Corporation as agent of PCH Beach Resort LLC a Delaware limited liability corporation dba Hyatt Regency Hintington Beach Resort&Spa The undersigned is the lodging business owner or the authorized representative of the lodging business owner and is the person legally authorized and entitled to sign this petition. Jon Benson General Manager/Agent Owner/Owner Representative Name (printed) Title 2n U� B� 4.5.2024 O er/Owner Representative Signature Date A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to: Kelly Miller, President&CEO Visit Huntington Beach 155 Fifth Street,Suite 111 Huntington Beach,CA 92648 Phone:714-969-3492 x 205 I Email: nicole@surfcityusa.com 5 A VISIT tiHUNTINGTON BEACH SURF CITY USA PETITION TO THE CITY OF HUNTINGTON BEACH IN SUPPORT OF MODIFYING THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT Below is a petition to the City of Huntington Beach to initiate proceedings to modify the Huntington Beach Tourism Business Improvement District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.,for the purpose of increasing the assessment rate from 4% to 6% to provide services as described in the summary of the Management District Plan attached hereto as Exhibit A. Lodging Business Establishment&Address Lodging Business Owner itv.,,o- fi6cAex_ 6 f),4- rp . if eivii c Ly)----y'4-1(1+4 i I I ---. —Li 161.: V i 4..._ *I -r-Hviktj i--L,0 h4, , (501/-‘ Lei 61 L 4 ' I The undersigned is the lodging business owner or the authorized representative of the lodging business r/and is th�e/pe/rson legally authorized and entitled to sign this petition.,e,s l /+ cic:1 ,, (yeei v.1/1-- Owner/Owner Representative Name(printed) Title ! yOwner Owner Re res tat ' nature D e / P A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to: Kelly Miller, President& CEO Visit Huntington Beach 155 Fifth Street, Suite 111 Huntington Beach, CA 92648 Phone: 714-969-3492 x 205 I Email: nicole@surfcityusa.com Visit Huntington Beach 1155 5th Street,Ste. 111 I Huntington Beach, CA 92648 I SurfCityUSA.com 1714.969.3492 Page 3 PETITION TO THE CITY OF HUNTINGTON BEACH TO MODIFY THE HUNTINGTON BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT We petition you to initiate proceedings to modify a Tourism Business Improvement District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of increasing the assessment rate to provide services as described in the summary of the Management District Plan attached hereto as Exhibit A. Business Establishment&Address Business Owner K;r t-on 34(-Area R.escpc+ D f G/+lonct Rcct -o f a I(1")/ SOO Pace' ►c, 6JoaS i 'y Bach 1 (A The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition. du5-I-;f\ 5;MI C Gei era ( / /lrde r Owner/Owner Representative Name(printed) Title e Representative Signature �Dat�ner/Own r Repr sentativ A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to: Kelly Miller, President&CEO Visit Huntington Beach 155 Fifth Street,Suite 111 Huntington Beach,CA 92648 714-969-3492 nicole@surfcityusa.com From: Nicole Llido To: suoDlementalcomm( surfcity-hb.orq Subject: Support for Resolution 2024-13,Intent to Modify the HB Tourism BID Date: Tuesday,April 16,2024 8:55:43 AM Attachments: Outlook-aisrvitf O1ttLmk 1pY7Sls 0utlook-zir0sh0x Hyatt Email of Intent to Support-TBID Modification for CC Mtg April 16 2024.Ddf Please see attached for a letter of support from the General Manager of the Hyatt Regency Huntington Beach Resort and Spa. Nicole Llido, IOM, CTA I Vice President, Administration& Community Engagement Visit Huntington Beach—Surf City USA 155 Fifth Street, Suite 111, Huntington Beach, CA 92648-5171 Phone: 714.969.3492, x207 I Fax: 714.969.5592 Email:®le@surfcityusa.com 1Website: www.surfcityusa.com CI CONFIDENTIALITY NOTICE: This email communication and any attachments may contain confidential and legally privileged information for the exclusive use of the designated recipients named above.Any unauthorized review,use,storage,disclosure or distribution is prohibited.If you are not the intended recipient,please notify the sender and destroy all copies of the original message. Thank you for your compliance. SUPPLEMENTAL COMMUNICATION 4/16/2024 Meeting Nape: 13 (23-1042) Agenda Item No.; Dear Mayor and City Council, In regard to agenda item#13 of the Huntington Beach City Council Meeting on Tuesday, April 16,2024, I'm writing in support of adopting Resolution No.2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. I have been connected to the Huntington Beach community since moving to California in 1987. I met my wife and future in-laws,whom are lifetime residents of Huntington Beach in 1988 and we married here in 1990. In those early years I recall playing golf at The Driftwood,which now as we know is the site of the Hilton and Hyatt Resorts. My career travels with Hyatt over the last 37 years has taken us to many amazing destinations, but it is Huntington Beach that invokes the most incredible memories. Having previously lived and taken part in the growth of this iconic destination and now returning again as General Manager to lead the Hyatt Regency Huntington Beach Resort and Spa is both an honor and a privilege. Our city has come a long way over the last several decades and it is more important than ever to continue our journey to success. The tourism industry is an essential part of Huntington Beach,with an estimated 2.2 million non-OC resident visitors in 2023.We are part of Huntington Beach's local economy, contributing millions of dollars in taxes. By bringing visitors to Huntington Beach, our industry also brings an additional income source for local businesses, helping to keep their doors open and their workers employed not just during the busy peak visitor seasons, but year-round. Over the next few years, Huntington Beach stands to lose substantial visitor industry market share to other OC and coastal California cities,who are all vying to attract visitors who spend millions of dollars annually. Many also have new hotel properties, new attractions or attraction upgrades in the pipeline,while Huntington Beach does not, making us less competitive compared to other popular OC tourism destinations. If Huntington Beach loses visitor industry market share,this will also reduce the City's overall revenues generated by visitors, such as TOT, sales tax and parking revenue. An increase in TBID funds would ensure Huntington Beach's tourism industry has essential funds to keep pace with the cost of doing business; reinvest into sales and marketing efforts to increase visitation to Huntington Beach, overnight stays at Huntington Beach paid lodging properties and encourage more visitor spend; and leverage upcoming large- scale world events such as the World Cup and the Olympics. Huntington Beach's non-tourism businesses and residents also will benefit from this modified program.With more visitors coming to Huntington Beach, local businesses will benefit from more foot traffic and potential sales that will help keep them open year-round, especially during the slow season.As part of the modified program,funds will also be spent on several improvements and enhancements in Downtown Huntington Beach,which can be enjoyed by Huntington Beach residents as well. I believe this modification will benefit not only the tourism BID and local businesses, but will also provide much needed funds to the city and make Huntington Beach a better place. I ask that City Council support the resolution of intent. Thank you, Jon Benson General Manager Hyatt Huntington Beach Resort and Spa From: sheik sattaur To: suoolementalcommtasurfcity-hb.orq Subject: Support for adopting Resolution No 2024-13 Date: Friday,April 12,2024 7:06:51 PM Dear Mayor and City Council, In regard to agenda item#13 of the Huntington Beach City Council Meeting on Tuesday, April 16, 2024, I'm writing in support of adopting Resolution No. 2024-13,to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. The tourism industry is an essential part of Huntington Beach,with an estimated 2.2 million non-OC resident visitors in 2023.We are part of Huntington Beach's local economy, contributing millions of dollars in taxes. By bringing visitors to Huntington Beach, our industry also brings an additional income source for local businesses, helping to keep their doors open and their workers employed not just during the busy peak visitor seasons, but year-round. Over the next few years, Huntington Beach stands to lose substantial visitor industry market share to other OC and coastal California cities,who are all vying to attract visitors who spend millions of dollars annually. Many also have new hotel properties, new attractions or attraction upgrades in the pipeline,while Huntington Beach does not, making us less competitive compared to other popular OC tourism destinations. If Huntington Beach loses visitor industry market share,this will also reduce the City's overall revenues generated by visitors, such as TOT, sales tax and parking revenue. An increase in TBID funds would ensure Huntington Beach's tourism industry has essential funds to keep pace with the cost of doing business; reinvest into sales and marketing efforts to increase visitation to Huntington Beach, overnight stays at Huntington Beach paid lodging properties and encourage more visitor spend; and leverage upcoming large-scale world events such as the World Cup and the Olympics. Huntington Beach's non-tourism businesses and residents also will benefit from this modified program.With more visitors coming to Huntington Beach, local businesses will benefit from more foot traffic and potential sales that will help keep them open year- round, especially during the slow season.As part of the modified program,funds will also be spent on several improvements and enhancements in Downtown Huntington Beach,which can be enjoyed by Huntington Beach residents as well. I believe this modification will benefit not only the tourism BID and local businesses, but will also provide much needed funds to the city and make Huntington Beach a better place. SUPPLEMENTAL I ask that City Council support the resolution of intent. COMMUNICATION 4/16/2024 Meeting Data: 13 (23-1042) Agenda Item No.;._ Thank you. Sheik Sattaur From: Paulette Fischer To: 5uoolementalcommCalsurfcity-hb.org Cc: Nicole Llido Subject: Resolution NO.2024-13 Date: Sunday,April 14,2024 3:12:58 PM Attachments: jmaae001.onq Dear Mayor and City Council, I am writing to express my full support for the adoption of Resolution No. 2024-13,which declares the City's intention to modify the Management District Plan for the Huntington Beach Tourism Business Improvement District(TBID).As we approach the upcoming Huntington Beach City Council Meeting on Tuesday,April 16,2024, I urge you to consider the significance of this resolution and its potential positive impact on our community. The tourism industry plays a vital role in the prosperity of Huntington Beach, as evidenced by the estimated 2.2 million non-OC resident visitors we welcomed in 2023 alone. Not only does tourism contribute significantly to our local economy through tax revenues, but it also provides crucial support to our businesses, ensuring their sustainability and providing employment opportunities year-round. However, it is imperative to acknowledge the competitive landscape within the tourism sector. With numerous other Orange County and coastal California cities vying for visitor attention and expenditure, Huntington Beach faces the risk of losing market share if we do not remain proactive in our efforts to attract visitors.Without strategic investments and enhancements, our city may fall behind competitors who are actively developing new attractions and accommodations. The modification of the TBID presents a vital opportunity to bolster Huntington Beach's position in the tourism market. By increasing TBID funds,we can allocate resources towards essential initiatives such as marketing campaigns, event sponsorships, and infrastructure improvements.These investments will not only drive visitor numbers and overnight stays but also maximize the economic benefits derived from large-scale events like the World Cup and the Olympics. Crucially,the benefits of a thriving tourism industry extend beyond the businesses directly involved. Increased visitor numbers translate to greater foot traffic and spending opportunities for local establishments, benefitting non-tourism businesses and residents alike. Moreover, enhancements in Downtown Huntington Beach funded through the modified program will enhance the overall quality of life for our community. In light of these considerations, I respectfully urge the City Council to lend their support to the resolution of intent. By doing so,we can ensure that Huntington Beach remains a vibrant and economically prosperous destination for visitors and residents alike. Thank you for your attention to this matter. Paulette Fischer General Manager The Waterfront Beach Resort,a Hilton Hotel Direct: 714-845-8408 pfischer(awaterfrontresort.com www.waterfrontresort.com • CA•80 i'Z't A magiavOnT SvA •DCAf�1 CIVD• More space. More fun. More Waterfront!Because sometimes more is more. CONFIDENTIALITY NOTICE: This email communication and any attachments may contain confidential and legally privileged information for the exclusive use of the designated recipients named above. Any unauthorized review,use,storage,disclosure or distribution is prohibited. If you are not the intended recipient,please notify the sender and destroy all copies of the original message. Thank you for your compliance. From: }Cilley.Debbie To: suoolementalcommesurfcity-hb.org Subject: Support of Item 13-Res No 2024-13 Date: Sunday,April 14,2024 4:50:12 PM Dear Mayor and City Council, I have the pleasure of serving on the VisitHB board and am writing to support agenda item #13 of the Huntington Beach City Council Meeting on Tuesday,April 16, 2024 to adopt Resolution No. 2024-13 which declares the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. The tourism industry is an important part of our local community contributing not only tax dollars, but additional income sources for local business and job opportunities for locals. As competition along the coast and inland increases,we need to find ways to be more creative with our marketing strategies. This is where VisitHB comes in and already does a terrific job. An increase in TBID funds would ensure Huntington Beach's tourism industry has essential funds to keep pace with the cost of doing business; reinvest into sales and marketing efforts to increase visitation to Huntington Beach,overnight stays at Huntington Beach paid lodging properties and encourage more visitor spend; and leverage upcoming large-scale world events such as the World Cup and the Olympics. Huntington Beach's non-tourism businesses and residents also will benefit from this modified program. With more visitors coming to Huntington Beach, local businesses will benefit from more foot traffic and potential sales that will help keep them open year-round, especially during the slow season. As part of the modified program,funds will also be spent on several improvements and enhancements in Downtown Huntington Beach, which can be enjoyed by Huntington Beach residents as well. I believe this modification will benefit our local economy and ask that City Council support the resolution of intent. Thank you for your consideration, Debbie Killey Municipal Sales Manager 17121 Nichols Lane Huntington Beach,CA 92647 e dkilleyc republicservices.corn o 657.845.6111 c 714.330.3069 w RepublicServices.com/HuntingtonBeachCA et REPUBLIC 14 SERVICES Sustainability in Action From: Cathey Ryder To: 5upolementalcomm(@surfcity-hb.orq Subject: 4/16 Agenda Item 23-1042 Date: Monday,April 15,2024 7:16:02 AM Once again we see an item where the city will be giving our tax payer dollars to a private business, Visit HB. What exactly will the average resident get from this use of our tax dollars? Cathey and Bob Ryder HB Voters and Homeowners since 1985 Cathey Ryder " Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence." Helen Keller From: Jeff Holson To: 5upolementalcomm(asurfcity-hb.org Subject: TBID increase Date: Monday,April 15,2024 10:17:59 AM My name is Jeff Holson. I'm in the final stages of the STR Permit process and I wish to announce my support of a formal 2% increase in TBID Assessment for lodging properties. I understand the 2%TBID assessment increase would allow HB tourism to stay competitive in the market and I know the assessment collected from a 2%TBID increase will be reinvested directly back into the sales and marketing of Huntington Beach's paid lodging properties, so HB can stay top of mind for vacationers.This is important to us as a long term and potentially short term host. Warm regards, Jeff Holson Jeff Holson 220 7th Street Huntington Beach Ca, 92648 From: Todd Szilagvi To: SuoDlementalcomm(asurfcity-hb.orq Subject: Agenda Item#13 for Tuesday 4/16/2024 Date: Monday,April 15,2024 12:48:40 PM Dear Mayor and City Council, In regard to agenda item#13 of the Huntington Beach City Council Meeting on Tuesday, April 16, 2024, I'm writing in support of adopting Resolution No. 2024-13, to declare the City's intention to modify the Management District Plan for the Huntington Beach Tourism BID. The tourism industry is an essential part of Huntington Beach,with an estimated 2.2 million non-OC resident visitors in 2023.We are part of Huntington Beach's local economy, contributing millions of dollars in taxes. By bringing visitors to Huntington Beach, our industry also brings an additional income source for local businesses, helping to keep their doors open and their workers employed not just during the busy peak visitor seasons, but year-round. Over the next few years, Huntington Beach stands to lose substantial visitor industry market share to other OC and coastal California cities,who are all vying to attract visitors who spend millions of dollars annually. Many also have new hotel properties, new attractions or attraction upgrades in the pipeline,while Huntington Beach does not, making us less competitive compared to other popular OC tourism destinations. If Huntington Beach loses visitor industry market share,this will also reduce the City's overall revenues generated by visitors, such as TOT, sales tax and parking revenue. An increase in TBID funds would ensure Huntington Beach's tourism industry has essential funds to keep pace with the cost of doing business; reinvest into sales and marketing efforts to increase visitation to Huntington Beach, overnight stays at Huntington Beach paid lodging properties and encourage more visitor spend; and leverage upcoming large-scale world events such as the World Cup and the Olympics. Huntington Beach's non-tourism businesses and residents also will benefit from this modified program.With more visitors coming to Huntington Beach, local businesses will benefit from more foot traffic and potential sales that will help keep them open year- round, especially during the slow season.As part of the modified program,funds will also be spent on several improvements and enhancements in Downtown Huntington Beach,which can be enjoyed by Huntington Beach residents as well. I believe this modification will benefit not only the tourism BID and local businesses, but will also provide much needed funds to the city and make Huntington Beach a better place. I ask that City Council support the resolution of intent. Thank you. BESTVIP° c „Aurrrr.,i:rn 0III DwII) Todd Szilagyi, COO 2701 S. Birch Street Santa Ana,CA 92707 phone: 714.375.9128 •fax: 949-522-8435 direct: 714.500.3170 • cell: 714.412.3022 toddabest-vip.com www.best-vip.com Orange County I Los Angeles I Inland Empire I San Diego From: Christy Page To: 5uoolementalcommCa�surfcity-hb.orq Subject: VHB TBID Modification Date: Monday,April 15,2024 2:54:03 PM Just sending support of the VHB TBID Modification in hopes that there will be strong consideration toward approving this initiative. With a thriving hospitality job market in Huntington Beach and efforts that will directly result in added exposure for our local hotels and tourism dollars coming into our city,we hope this modification will be approved for the multifaceted benefits that would result from such an action. Christy Page Huntington Beach Resident From: h[PtrdiikPsfa clam To: 5uoolementalcommesurfcity-hb.orq Subject: Item#13 HB City Council Meeting-4/16/24 Date: Monday,April 15,2024 8:52:41 PM Attachments: Scan 1.pdf Please see the attached. Aloha, • Brett Barnes • Dear Mayor and City Council, In regard to agenda item 413 of the Huntington Beach City Council Meeting on Tuesday.April 16,2024, I'm writing in support of adopting Resolution.No.2024-13,to declare the City's intention to modify the Management DiStrict Plan for the Huntington Beach Tourism BID. The tourism industry is an essential part of Huntington Beach,With an estimated 2.2 million non-OC resident visitors in 2023.We are part of Huntington Beach's focal economy,contributing millions of dollars in taxes.By bringing visitors to Huntington Beath,our industry also brings an additional income source for local businesses,helping to keep their doors open and their workers employed not just during the busy peak visitor seasons,but year-round. Over the next few years,Huntington Beach stands to lose substantial visitor industry market share to other OC and coastal California cities,who are all vying to attraCt visitor's who spend millions of dollars annually. Many also have riel.vhotel properties;new attractions or attraction upgrades in the pipeline,while.Huntington Beach does not,making us less competitive compared to other popular OC tourism-destinations.if Huntington Beach loses visitor industry market share,this will also reduce the City's overall revenues generated by visitors,such as TOT, sales ta)c and parking revenue. An increase in TBID funds would ensure Huntington Beach's tourism industry has essential funds to keep pace with the cost of doing business;reinvest into sales and marketing efforts to increase visitation to Huntington Beach overnight stays at Huntington Beach paid lodging properties and encourage more visitor spend;and leverage upcoming large-scale world events such as the World Cup and the Olympics.. Huntington Beach's non-tourism businesses and residents also will benefit from this modified program.With more visitors coming to Huntington Beach,local businesses will benefit from more foot traffic and potential sales that will help keep them open year-round,especially during the slow season.As part of the modified'program-,funds will also be spent on several improvements and enhancements in Downtown Huntington Beach,which can be enjoyed by Huntington Beach residents as well. l..believe this modifitation will benefit not only the tourism.BID and local businesses,but will also provide much needed funds to the city and make Huntington Beach a better place. I ask that City Council support the resolution of intent Thank you. 7Z/i/ ' /21 From: Kathrvn Levassiur To: supolementalcomm(@surfcity-hb,org Subject: TBID Tax Increase 23-1042 Date: Tuesday,April 16,2024 7:45:03 AM Attachments: Logo for Apple Email.onq Dear Mayor Vander Mark and Huntington Beach City Council Members, My name is Kathryn Levassiur. I head the Huntington Beach STR Alliance. Our group is 300+hosts strong. We advocate for taxed and regulated short term rentals in Sunset Beach and Huntington Beach. Of course we want Visit Huntington Beach to have enough budget to promote HB and Sunset Beach and all this beautiful city offers, especially as the 2028 Los Angeles Olympics is on the horizon. Another component of the city gearing up for 2028 is to expand the current STR ordinance to include unhosted short term rentals in Huntington Beach that already permitted in Sunset Beach. It's important that the city provide enough visitor accommodations, including whole home STR rentals, to capture all of the available money that visitors to our city will generate. This money will includesTOT/TBID taxes, sales tax and increased traffic to our local businesses. Robust STR regulations that are already in place and running smoothly and are imperative to the success of generating as much revenue as possible during this Olympic event and other marquee events regularly happen in our city. STRs are good for local businesses and for residents of the city. We reluctantly support this tax increase that our guests and all transient visitors will have to pay more for staying here less than 31 nights and in turn request council votes to expand the current STR ordinance. Sincerely, Kathryn Levassiur Huntington Beach Short-Term Rental Alliance Cell: 714.343.7931 Email: info@hbstra.orq lWebsite: httos://www.hbstra.org/ . ly Btt. 1 i XSl?