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Home My WebLink AboutI-1 - Request of Conference and Visitors BureauCATY 00' t ,JAS CITY OF NEPORT BEACH COUNCIL AGENDA NO. I --/ _� OFFICE OF THE CITY MANAGER - Z"'ZF<L LZ - `/ 7 December 8, 1986 rl— OR 8 198151 TO: MAYOR AND CITY COUNCIL ' FROM: City Manager SUBJECT: REQUEST OF CONFERENCE AND VISITORS BUREA HISTORY: During March, 1986 t1le City Council received a request from the Newport Beach Conference and Visitors Bureau to increase the Transient Occupancy Tax from 8% to 9% and make the 1% increase available to the Conference and Visitors Bureau for promotion of the hotel/restaurant industry in Newport Beach. On March 24th the City Council permitted the first reading of an ordinance increasing the T.O.T. to9%. It was to receive a second reading on April 14th, but the item was continued to May 12th at the request of the C&V Bureau. On May 12th the City Council again delayed the second reading and requested additional information on a) A comparison of a T.O.T. assessment and a service charge assessment; b) The revenue the 1% increase would generate; and c) Basic terms of an agreement between the City and the C&V Bureau outlining the use of the extra assessment. On August 11, 1986 the Council again considered the subject matter and reviewed the memo from the Office of the City Manager, dated August 11, 1986. (Copy attached marked Exhibit "A"). On August 11th the City Council took two basic steps. These were: 1) Decision was made to separate the request of the Arts Commission from the request of the C&V Bureau. The Arts Commission request for Page -2- "Arts in Public Places" would be considered during each budget preparation hearing and appropriate funds provided at that time. 2) That a new ordinance be drafted by the City Attorney omitting an increase in the T.O.T., but "creating a 1% service charge on hotels/ motels rental units, with 1% of said service charge to be returned to the City for adminis- trative handling of the service charge." From August 11th to the present date staff has had a number of meetings with representatives of the C&V Bureau, and it was believed desirable that a draft copy of a proposed agree- ment be prepared for review by the City Council during the meeting of the introduction of the ordinance creating a 1% service charge. During all of the discussions on this subject members of the Council have had questions concerning the details of an agreement. It was believed that the best way to respond to the questions concerning details was to prepare an actual draft agreement outlining the responsibilities of the City and the C&V Bureau. Attached as Exhibit "B", you will find a copy of the draft agreement and attached as Exhibit "C" you will find a copy of the proposed ordinance creating or establish- ing a visitors service fee. DISCUSSION: The proposed ordinance and agreement are now ready for the City Council's review and action. The ordinance creat- ing a visitors service fee would not impact the Gann Initiative regulating expenditures from taxing funds. To that extent it has an advantage over a T.O.T. Members of the Council may have read in the local newspapers that a number of cities, as well as the state, have reached their limitation on appropria- tion of taxing funds. While Newport Beach has not yet reached Page -3- this limitation, it is a concern that within several years will probably have to be addressed. From that perspective a visitors service fee is more acceptable. The proposed agreement shall commence on March 1, 1987. The City's responsibilities under the agreement are as follows: ment to - a) City shall collect the 1% service fee and remit on a quarterly basis that amount col- lected to the C&V Bureau less 1% of the total for municipal administrative costs. b) The City shall have the right to audit and review all records maintained by the Bureau. c) The City shall have the right to terminate the agreement by giving ninety (90) days written notice. Under some circumstances ninety days notice need not be given. The C&V Bureau is required under terms of the agree- a) Develop, plan, carry out and supervise a pro- gram to serve the needs of visitors. (See Paragraph 2 of agreement). b) Submit a marketing plan and an annual budget to the City for review. c) The C&V Bureau shall expend funds in accordance with the submitted budget. The Bureau's budget for administrative expenses will not exceed 30% of their total. d) The Bureau shall maintain all records and shall submit an audited report within sixty (60) days following the close of a fiscal year. Page -4- e) The Bureau shall indemnify the City and shall obtain all necessary licenses and permits. f) The Bureau cannot unilaterally assign this agreement. RECOMMENDATION: If the Council still desires to proceed with the proposal (the vote on August 11th was 6 to 1), it will be necessary to introduce the ordinance attached as Exhibit "C". The agreement should not be approved until the second reading of the subject ordinance is approved. If the first reading occurs on December 8th, the second reading could occur, along with consideration of the agreement, either during the last Council meeting in December or the first Council meeting in January, 1987. ROBERT L. WYNN Attachments: Exhibits A, B & C Cts;. DA ++��==P� T�,�ACHr rj to c,0:?,:11-$ENTTO: 97 ij t�a ' 109 ,a,namen -H q i -arney b."idg. Dir. j e� CznSav Mr. & R Dir. r"I plannfing 01r, i UeL�pe-d 43&d Police Chief o F I - IC - OF THE 1AYOR Di vz,& CA f her Clerk WA /Sly- W J 41-0 otoloft-lk t6l a4 a Z ) j 6,&Mau- toted 0 JdtC�e Itub p d, sbe a ze)&7 °Zc f�� v v rase fW q2b&O The Great Amerkan Short Story clothing collections for women 53"and under 9166 EAST LA ROSA DRIVE TEMPLE CITY, CALIFORNIA 91780-0608 - (213) 285-2107 - (800) 242-4427 7� S Corona del Mar CHAMBER of COMMERCE January 6, 1987 Mayor John Cox City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mayor Cox: A unique blend of people and place �,, '' � �,►,ayoc N The Corona del Mar Chamber of Commerce Board of Directors is in unanimous support of the Newport Conference and Visitors Bureau proposal to fund a marketing program aimed at maintaining the social, cultural and economic prosperity we enjoy in Newport Beach. Last year, -guests in Newport Beach spent more than $84 Mill- ion throughout the city shopping in small and large stores, visiting museums and galleries and staying in our hotels and motels. These dollars generated the revenues to main- tain the services that have contributed to our high qual- ity of life in Newport Beach. The Visitors Bureau proposal will continue this prosperity by promoting the city with quality -seeking guests who bring great revenues to the city without putting strain on the Newport Beach's infrastructure. We urge you to support in the future vitality S i n c e r5,e,�Iy, W. Radtke e t RSR/eb this important program and invest of Newport B _N TO: t:... f ep I`tc; iCtEc' Dir. Clerk u�Eielf ❑Other 2855 East Coast Highway • Post Office Box 72 62 (&&6na del Mar; California 92625 Eli 714/673 -4050 Deep Sea Sportlishing Private Fishing Charters Yacht Charters Whale Watch Trips Jan. - Mar. All Boats Inspected and Certified by U.S. Coast Guard Safety First Complete Tackle Shop v �YS LOC* Sportfishing, Inc. 400 Main St, Balboa, CA 92661 (714) 6731434 DOUG FERRELL / JIM SHAFER / DON BROCKMAN - Owners CITY OF January 7, 1987 /,�7NEWPORT BEACH, CY! : �C - JAN 131987W �l Mayor John C. Cox, Jr. ME 9 P {� City of Newport 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mayor Cox and Council. Members, The owners of Davey's Locker Sportfishing and I are requesting your support of the proposed 1% Service Charge on the hospitality industry submitted by the Newport Beach Conference & Visitors Bureau. There is no doubt that the revenues generated for Davey's Locker from the visitor industry contribute immensely to the overall success of our business. Cities across the nation have Visitor Bureaus which actively market their destination. If we are to compete for our share of tourist dollar, we must have a Bureau with adequate financial_ resources. A substantial amount of our sportfishing business attracts family visitors and they in turn contribute to the prosperity of the entire city. We urge you and the council_ members proposal_. Sincerely to support this mutually beneficial r3 f I F, n�� 3�g Eddie DiRuscio ` r Manager ED�b r':....0111 "Y t: r. C1a i;l�,r! Llir. Pvlic,� Chief Ci 4'. & CEJ Wier Located in the Historic Balboa Pavilion 0 Balboa Pavilion Company 400 Main Street, Balboa, Calif. 92661 (714) 673-1434 January 6, 1987 Mayor John Cox City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mayor Cox and Council Members, CiTl \ ' n7.� This letter is essentially the same as the one sent to Phil Maurer in August of 1986. Our reasoning hasn't changed and we hope the mixed signals sent by the defeat of Proposition A will not, at this point, adversly affect the Council's decision on this very important project. The recent proposal by the Newport Beach Conference & Visitors Bureau to the City Council to require a 1% Service Charge to hotel visitors and then return this to the Bureau seems to me to be both equitable and desirable. As a forty year resident and businessman in Newport, I fully understand the reluctance of some Local people to share their town and harbor with outsiders. When we get caught up in traffic jams or have trouble finding a place to park it is very easy to understand this attitude. However, due to the scarcity and high cost of land, those of us who have to make a living here are hard pressed to find a bottom line. The business generated by the local hotels is, in our opinion, a very desirable type of additional income. The visitors patronize our stores and restaurants, and they generate in taxes a substantial part of our city budget, and they are generally a well behaved and trouble free group. We believe that since both the City and local businesses benefit from the hotels and that we have some obligation, even if its self—serving, to help them fill their rooms. I, and our approximately one hundred and eighty Balboa Pavilion (almost all, incidentally, live serious consideration of this extremely heneficial \ 8,incerelyy__ Phil Tozer President cc: Newport Beach Conference & Visitors Bureau City Manager employees here at the in Newport), ask your contract. s� c"I �Y t[7-1 f�.,1, . ,., . €lir. MARINE RECREATION CENTER U Int,' C / _` j . Catalina Passenger Service/Harbor Cruise/Sportfishing/Tale of the Whale Restaurant/Banquet Facilities 7 /Lg- Tl Elf _ A M RECEIVED AFTER AGENWI U2 j _q h E1E 1,1111TE PRINTED:,,CO ,g 7 January 1987 EVJP�ACM, S'�j 1ga E � t;EGEtV.ED w GITI C.!.,ERK N Mayor John Cox City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92660 Dear Mayor Cox: I am writing in support of the Newport Conference and Visitor Bureau proposal to fund a marketing program aimed at the upper scale, more affluent visitor to our city. Unlike the high volume convention visitor who brings mass traffic with generally lower spending power per individual, the more affluent visitor comes in smaller numbers and looks for a more quality oriented visit and is prepared to pay the premium for it In addition, this more affluent visitor has proven that he or she will shop in our finer shops, dine at our better restaurants frequent our cultural establishments, and use our _specialty services along the way. In more simple terms, this is a guest that arrives with little fuss, enjoys the finer things that are offered in Newport Beach, pays good money and tax dollars for them, and quietly goes on his -or her way. Our own experience with these visitors at Wyndham Leigh l Y has been very rewarding. We have several examples of visitors who have come to Newport Beach, stayed at hotels here and visited the Atrium Court at Fashion Island and have made substantial purchases from us, which, -'in turn has created healthy tax revenue. To this end, and with the general Newport Beach community in mind, I urge your support of this initiative for the benefit of us all. Wyndham Leigh Diamonds Inc. 215 Atrium Court, Fashion Island, Newport Center, Newport Beach, California 92660 Telephone: (714( 644-0501 o f r-1 r: 0,_ 711 C 1 r�'f x C F ES SEIiT 0: cicou�� T ?F"imT{ h X4a1z?�fAv�Sa nllmen ykicerket CATALINA PASSENGER SERVICE, INC. 400 MAIN ST. BALBOA, CA. 92661 714167 Balboa Paviliony�' I , a, December 30, 1986 Mayor John Cox City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mayor Cox, SCITY OF NEWPORT BEACH, CAILig. It JAN 5 19870 - RECEIVED >> CITY CLERK cv ;ru ! c' V RE -r, - 9 JA N 8 s �i v of A A°vno� 10 I believe the plan to fund the Newport Beach Conference and Visitors Bureau is valid and this letter is a request that you support the proposal for the Bureau. We have needed a Conference and Visitor Bureau in Newport for a long time and I think their marketing program will add to the cultural and economic prosperity in Newport Beach. I urge you to support the Newport Beach Conference and Visitors Bureau and invest in the future vitality of Newport Beach. Sincerely, Bob Black President BB/bs (CUMUL AGENDA N 0. I-1 NEWPORT HARBOR ART MUSEUM 850 SAN CLEMENTE DRIVE, NEWPORT BEACH, CALIFORNIA 92660, U.S.A. TEL. 714-759-1122 ■ December 23, 1986 Mr. John C. Cox, Mayor City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92660 Dear John: The Newport Harbor Art Museum is a vital part of the tourist industry in Orange County and Newport Beach, in addition to this generally accepted role as a significant cultural and educational institution. For that reason, we are in sympathy with the Newport Beach Marketing Program as proposed by the Newport Conference and Visitors Bureau. I urge you to carefully consider this issue and support it for the improvement of our city's public image and visibility. Sincerely, / C,- - Kevin E. Consey Director KEC:pr � pEC �:-97986 D ',. 0pity f Qn sYr Barbary Bogen Lovell January 4, 1987 John Cox, Mayor Members, Newport Beach City Council 3300 Newport Blvd. Newport Beach, CA., 92663 Dear Mayor Cox and Members of the Newport Council, On behalf of the SPON Steering Committee, I am writing this letter urging you to maintain the present Newport Beach hotel bed tax without adopting the proposed 1% service charge for a convention and tourist bureau. The Steering Committee believes that tax monies should not be used for the Convention and Tourist Bureau in -order to bail out private enterprise ventures. As a reminder, SPON vigorously opposed construction of the newer hotels when their applications were first submitted, warning the Council of the potential hotel room glut. Passage of Measure A clearly sends a message to the Council that citizens are concerned with traffic congestion which ad- ditional hotel room occupancy brings; and that voters do not with to attract more vehicles until the roads of the city can support the traffic. Thank you in advance for considering our comments. Sincerely, SPON Steering Committee By: Bobby Lovell �... �jCa�.r,c�hnen - -.� r"ey Clerk _jGlhar RUTH HYNDS WATERCOLORS, INC. LIMITED EDITIONS • POSTERS • STATIONERY } �R TER L� c; y :IVSD AFTER AGENDA r- / i9o**,7 January 14, 1987 Mayor John Cox City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mayor Cox: "RMEIVEDR PRENMar I am writing in support of the Newport Conference and Visitors Bureau proposal to fund a marketing program aimed at maintaining the social, cultural and economic prosperity we enjoy in Newport Beach. Last year, guests in Newport Beach spent more than $84 million throughout the city shopping in small and large stores, visiting museums and galleries and staying in our hotels and motels. These dollars generated the revenues to maintain the services that have contributed to our high quality of life in Newport Beach. The Visitors Bureau proposal will continue this prosperity by promoting the city with quality -seeking guests who bring great revenues to the city without putting strain on the Newport Beach's infrastructure. I urge you to support this important program and invest in the future vitality of Newport Beach. Sincerely, Kathy 4inton Sales Manager KW : ldf � , ! - �------� r, c �pT T0: 't �'� [lCounciim,n q1 10 1Q ;anag ar Mayor ,A 876. �lA'c4�eY r �tY Clerk �%� Cjty of Ajn Other ❑ ;} n� 2437 Morena Boulevard • San Diego, CaTfornia 92110 • (800) 426-3359 • In Californ -.� 1 180 Newport Center Drive • #180 • Newport Beach, California 92660 0 (714) 75 - 1