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HomeMy WebLinkAboutI-1 - Request of Conference and Visitors BureauCOUNCIL AGENDA NO.,,L / CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER February 9, 1987 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: REQUEST OF CONFERENCE AND VISITORS BY THE Uff CFIUI44CJ . CITE' OF NEWPORT BEACH u Q. BUREAU C _ 2,6 39 During the City Council meeting of January 26th, the City Council permitted the first reading of an ordinance establishing a Visitors Service Fee, effective April 1, 1987. The Council also took a number of straw votes concerning the Agreement between the City and the Bureau. The Agree- ment (copy attached) has been modified to reflect these straw votes as follows: 1. The effective date has been changed from March 1 to April 1, 1987. 2. The reporting period as specified in Paragraph 5 of the attached Agreement has been modified to require reports every January and July of each year, commencing with 1988. If the Council permits the second reading of the ordinance establishing a Visitors Service Fee the attached Agreement is ready for Council review and/or approval. Even though it is redundant, I have attached a copy of the December 8th report on this subject because this report contains information which may be helpful to the City Council when considering this matter. i ROBERT L. WYNN Attachment CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER February 9, 1987 TO: MAYOR AND CITY COUNCIL FROM: City Manager COUNCIL AGENDA NO. SUBJECT: REQUEST OF CONFERENCE AND VISITORS BUREAU During the City Council meeting of January 26th, the City Council permitted the first reading of an ordinance establishing a Visitors Service Fee, effective April 1, 1987. The Council also took a number of straw votes concerning the Agreement between the City and the Bureau. The Agree- ment (copy attached) has been modified to reflect these straw votes as follows: 1. The effective date has been changed from March 1 to April 1, 1987. 2. The reporting period as specified in Paragraph 5 of the attached Agreement has been modified to require reports every January and July of each year, commencing with 1988. If the Council permits the second reading of the ordinance establishing a Visitors Service Fee the attached Agreement is ready for Council review and/or approval. Even though it is redundant, I have attached a copy of the December 8th report on this subject because this report contains information which may be helpful to the City Council when considering this matter. a"t--:2 I , ROBERT L. WYNN I Attachment Tari €'(a(CIL � C " CITY OF NEWPORT BEACH COUNCIL AGENDA NO. ` ,JAN 2 1987CITY OF NEWPORT BEACH B � t -C � z 3 `¢' Al"JU'UNRCIL OFFICE OF THE CITY MANAGER CITY OF x,641006(+ BEACH A& l—z6_/9g� December 8, 1986 _ DEC 8 1986 TO: MAYOR AND CITY COUNCIL,�.? 1-2 FROM: City Manager Q .� SUBJECT: REQUEST OF CONFERENCE AND VISITORS BUREA HISTORY: During March, 1986 the 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. to 9%. 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 gerve 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. Attachments: Exhibits A, B & C ROBERT L. WYNN COUNCIL AGENDA ITEM NO. I-1 CITY OF NEWPORT BEACH BY THE CITY COUNCIL OFFICE OF THE CITY MANAGER CITY OF NEWPORT BEACH August 11, 1986 AUG 11 1986 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: REQUEST OF CONVENTION AND VISITORS BUREAU During the City Council meeting of July 28th, the request of the Conference and Visitors Bureau was discussed. Following discussion, the Council requested additional information as follows: 1. What kind of return will the City receive for its investment? Using the 1985-86 fiscal year total T.O.T. revenue of $3,018,000, a 5% increase in occupancy would return to the City $150,900/yr; a 10% increase in occupancy would return $301,800/yr; and a 15% increase in occupancy would return $452,700/yr. If the City utilizes the projected revenue for the 1986-87 fiscal year of $3,720,000, a 5% increase in occupancy would return $186,000/yr; a 10% increase in occupancy would return to the City $372,000/yr; and a 15% increase in occupancy would return $558,000/yr. The pro- jected increase in 1986-87 fiscal year is due to the new Four Seasons Hotel and the additional rooms at the Marriott Hotel. 2. How much funding can the City afford? Based on the 1985-86 T.O.T. revenue of $3,018,000, 1% equals $377,250. Based on the projected 1986-87 T.O.T. revenue of $3,720,000 1% equals $465,000. While an increase of 1% would produce the above amounts, the real answer to the question is a value judgment. 3. What is the City trying to accomplish by this allocation? The City Council should find some overall benefit to the City before accepting the C & V Bureau's proposal. If the Council believes that the tourist industry in Newport Beach is important to the community and enhances the City's image as well as the City's revenue, then a financial contribution probably could be justified. You will note r Page -2- in the draft agreement that a finding has been inserted to the effect that "the Bureau's promotional activities are likely to C substantially increase T.O.T. revenue and sales tax revenue." If this is true, then the City Council could be legally justified in providing this assistance. This, however, raises another question that should be taken into consideration. This question is listed as No. 4 below. 4. How much will the promotion increase the number of tourists coming to Newport Beach? Including the Four Seasons Hotel and the new addition to the Marriott Hotel, plus all other hotels currently in operation in the City, there are 2,487 rooms. Using the same percentage increases that were utilized in question No.l above, a 5% increase in occupancy, assuming a current 60% occupancy rate, would produce 54,750 new tourists each year assuming an average of two persons per room (2,487 rooms x 60% x 5% x 365 days x 2 persons = 54,750). A 10% increase in occupancy would produce 108,770 new tourists each year. (2,487 x 60% x 10% x 365 days x 2 persons = 108,770). A 15% increase in occupancy would produce 163,520 new tourists each year. (2,487 x 60% x 15% x 365 days x 2 persons = 163,520). The tourist increase would impact the airport and surface transportation, and could, therefore, be considered a negative impact against the City. On the other hand, these new tourists generate the increase in T.O.T. and it is argued by the C & V Bureau that these new tourists spend money within the City that translates into a sales tax increase to Newport Beach. 5. Should there be an accountability as to where the money should be spent? The contract could be easily structured to require an annual audited accounting to the City. In addition, if the Council desires, a ppro- posed budget could be submitted to the City Council for the Council's review prior to the commencement of a new fiscal year. At the end of the fiscal year, the audit report would determine how well the Bureau complied with their submitted budget. If compliance was not reached, then the City should have the right to terminate the agreement by giving Ninety (90) days written notice. I Suggest the 90 days to co- incide with a quarter of any fiscal year. With very minor modifications the draft agreement could provide this accountability. c C Page -3- 6. Should the City give this a testing period? The City could easily judge the effectiveness of this proposal by comparing revenues generated in each fiscal year. As long as the City has the right to terminate said agreement, the City could do so if anticipated results are not achieved. 7. Could the City utilize a service charge rather than a T.O.T. increase? The City could utilize a service charge and by doing so probably could circumvent the revenues from being proceeds of taxes. Cur- rently the City is levying a sewer service charge and by the same principle is assessing charges for zone changes, planning variances, etc. Under the same principle, the City could impose a service charge and have it levied in the same manner as a T.O.T. and could then give this revenue to the C & V Bureau whose members generate it in the first place. Incidentally, the City of Irvine is no longer considering a service charge against hotels within their city. In spite of the information above, the issue of assisting the Convention and Visitors Bureau is really a value judgment. Many cities do it, and some of these cities have been reported by the C & V Bureau. The cities that assist the C & V Bureau report success and acceptance by the City Council and the residents from the communities which participate in the program. On the other hand, many cities do not participate and some cities who have participated in the past have declined to continue participation because in their judgment the results did not justify the cities involvement. In the past, I believe it has been this City's judg- ment not to participate with the tourist industry. This has been the first instance, however, in which the local industry has requested to be taxed with said revenues to be given back to the Bureau for further pro- motion. As reported earlier, the neighboring cities of Irvine, Costa Mesa, Santa Ana, and possibly Laguna Beach, have shown some interest to participate in a promotional endeavor. This item is on the agenda again for the next Inter -City Liaison Committee meeting to be held August 21, 1986. Mayors, f � Page -4- _ � 9 Council Members and City Managers will be represented at this meeting Cand, hopefully, a definitive position can be taken by each city. Also, a study group is meeting on August 29th. If it is deemed desirable to know of other cities' position with respect to the subject, the item can be continued to September 8th. Just for information, please find attached some statistical data on practices and arrangements of other cities in California. Finally, because of the different possibilities that exist with respect to this item, such as the Arts Commission's request, rate, the use of T.O.T. vs. a service charge, etc., it may be that a series of straw votes could be utilized by the Council to determine the City's position. c Attachments C V ROBERT L. 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The City Council of the City of Newport Beach does hereby ordain as follows: Section 1: Section 3.28 is added to the Newport Beach Municipal Code as follows: Sections: Section 3.28.005 Findings and Purpose. Section 3.28.010 Definitions. Section 3.28.015 Visitor Services. Section 3.28.020 Service Fee. Section 3.28.025 Use of Service Fee. Section 3.28.030 Responsibility of the Operator. Section 3.28.035 Exemptions. Section 3.28.040 Reporting and Remitting. Section 3.28.045 Penalties and Interest. Section 3.28.050 Records. Section 3.28.055 Assessment Procedures. Section 3.28.060 Appeal. Section 3.28.065 Notice. Section 3.28.070 Fee Declared a Debt - Action to Collect. Section 3.28.075 Penalty for Violations. Section 3.28.005 Findings and Purpose. The City Council finds and declares as follows: (A) The natural, recreational and cultural resources of Newport Beach make it a popular destination for business travellers and vacationers; (B) Visitor serving businesses, such as hotels, restaurants and retail shops, comprise a large segment of the economy of the City of Newport Beach; /% (C) The existing visitor serving businesses within Newport Beach are subject to increased competition due to the construction of numerous hotels and restaurants in cities near Newport Beach; (D) To maintain the economic viability of the existing visitors serving businesses it is necessary to provide those visitors with information about the resources and businesses available to serve their needs, and to encourage persons to visit Newport Beach during the off-season; (E) Businesses that provide lodging for visitors will play a key role in dispensing information to visitors and the guests of hotels, motels and inns will be the principal beneficiary of the program; (F) The program for providing services to visitors and encouraging others to visit Newport Beach should be funded by fees charged to the guests of hotels and motels; (G) A program for providing services to visitors and inform potential visitors of the advantages of Newport Beach is likely to generate additional transient occupancy tax and sales tax revenues that can be used by the City to provide services .and make improvements that will benefit residents and visitors alike; (H) The visitor service fee required by this ordinance is equivalent to the costs incurred by the City in providing services and is representative of the benefit to those visiting Newport Beach. Section 5.28.010 Definitions. Except where the context otherwise requires, the definitions given in this section shall govern the construction of this chapter: Person. The term "person" shall mean any Individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or group. Hotel. The term "hotel" shall mean any -2- 12D structure, or any portion of any structure, which is occupied or intended or designed for occupancy by guests for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, rental unit, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. Occupancy. The term "occupancy" shall mean the use or possession, or the right to use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. Guest. The term "guest" shall mean any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a guest until the period of thirty (30) days has expired, unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. Rent. The term "rent" shall mean the consideration charged,. whether or not received, for the occupancy of space in a hotel 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. Operator. The term "operator" shall mean the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgageee in possession, licensee, or any other capacity. Where the operator performs his functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as the principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. Section 3.28.015. Visitor Services. The City, or an entity under contract to the City, shall develop, plan, carry -3- out and supervise a program to serve the needs of visitors to, and promote tourism in, the City of Newport Beach. The City, or the entity retained by the City, in implementing this plan shall, at a minimum: l (A) Employ, and provide suitable quarters for, competent personnel to carry out the services described above; (B) Prepare and distribute information, by way of brochures, publications, guides, direct mail and the media that informs visitors, and prospective visitors, of the resources of Newport Beach and the businesses available to serve their needs; (C) Develop and implement marketing programs with an emphasis on increasing business and visitor trade during the off-peak season (October through May). Section 3.28.020. Service Fee. Each guest shall pay a fee of 1% of the rent charged by the operator as consideration for, and to defray the cost of, the services provided by City. The fee constitutes a debt owed by the guest to the City which is extinguished only by payment to the operator or directly to the City. The guest shall pay the fee to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the fee shall be paid with each installment. Any unpaid fee shall be due upon the guest's termination of tenancy. Section 3.28.025. Use of Service Fee. Funds received by the City pursuant to this chapter shall be used solely for the purposes described in Section 3.28.015. All fees received pursuant to this chapter shall be deposited into a special account designated the "Visitor's Service Fee Fund." Section 3.28.030. Responsibility of the Opera- tor. Each operator shall collect the fee imposed by this chapter to the same extent, and at the same time, as rent is collected from each guest. The fee shall be separately stated from the amount of the rent charged, and each guest shall receive a receipt for payment from the operator. imposed upon: Section 3.28.035. Exemptions. No fee shall be -4- (A) Any person as to whom, or any occupancy as to which, it is beyond the power of the City to impose the fee required by this chapter. (B) Any federal or State of California officer or employee when on official business. (C) Any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty. No exemption shall be granted except upon a claim therefor made at the time rent is collected and under penalty of perjury upon a form prescribed by the Finance Director. , Section 3.28.040. Reporting and Remitting. On or before the last day of the month following the close of each calendar quarter, or such different reporting period as may be established by the Finance Director, each operator shall make return to the Finance Director, on forms provided by the City, of the total rents charged and received, and the amount of the fees collected during the preceding three (3) months, together with such information as may be required by the Finance Director. The full amount of the fee collected shall be remitted to the Finance Director at the time the return is filed. A return must be filed, and payment of all fees must be made, within thirty (30) days from the date any hotel ceases operation. All fees collected by operators pursuant to this chapter shall be held in trust for the account of the City until payment is made to the Finance Director. Section 3.28.045. Penalties and Interest. (A) Original Delinquency. Any operator who fails to remit any fee imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the fee, this in addition to the amount of the fee. (B) Continued Delinquency. Any operator who fails to remit 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 delinquency penalty of ten -5- 1?3 percent (10%) of the amount of the fee in addition to the amount of the fee and the ten percent (10%) penalty first imposed. (C) Fraud.; If the Finance Director determines that the nonpayment of any rgmi.ttance due under this chapter is due to fraud, a penalty of twenty-five percent '(25%) of the amount of the fee shall be added thereto in addition to the penalties imposed by Subparagraphs A and B. (D) Interest. In addition to the penalties imposed, any operator who fails to remit any fee imposed by this chapter shall pay interest on the full amount of the fees unremitted, exclusive of penalties at the rate of one-half of one percent (1/2%) per month for each month or portion of a month that the fee is delinquent from the date on which the fee first became delinquent. The interest shall be computed on a monthly basis and shall not be subjebt to proration for any portion of a month. (E) Penalties Merged with Fee. Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the fee herein required to be paid. Section 3.28.050. Records. It shall be the duty of every operator to keep and preserve, for a period of three (3) years, all records necessary to determine the amount of such fee the operator should have collected and paid. The Finance Director shall have the right to inspect the records during business hours. Section 3.28.055. Assessment Procedures. The Finance Director shall investigate any failure or refusal of any operator to collect the fee, or make any report or remittance of the fee, required by this chapter. The Finance Director, after investigation, shall determine, and assess against the operator, the fees, interest and penalties provided by this chapter. Notice of the determination shall be given to the operator by the Finance Director. The operator may request a hearing before the Finance Director by filing a written application within ten (10) days from the date of notice of the determination. The decision of the Finance Director shall be final if the operator fails to file a timely application for hearing. If the operator has requested a hearing, the Finance Director shall give the operator -6- notice of the time and place of the hearing. The Finance Director shall consider all evidence, written or oral, offered by the operator at the hearing and give notice of the decision on the proper amount of the fees, interest and penalties within thirty (30) days after the he6ring. The amount determined to be due shall be payable fifteen (15) days after the notice of decision unless the operator appeals to the City Council. Section 3.28.060. Appeal. Any operator aggrieved by a decision of the Finance Director with respect to the amount of fee, interest or penalties assessed may appeal to the City Council by filing a notice of appeal with the City Clerk within fifteen (15) days after notice of the decision of the Finance Director. The City Clerk shall fix the time and place for hearing and give notice to the Finance Director and the operator. The City Council may preside over the appeal, or may appoint a hearing officer to take evidence and submit proposed findings and recommendations to the City Council. The City Council shall render a final decision within thirty (30) days after the hearing, and any amount found to be due shall be payable within ten (10) days after service of notice of the decision. Section 3.28.065. Notice. Any notice required to be given pursuant to this chapter, shall be deemed given if personally served on the operator or the operator's representative, or If - deposited in the United States mail, first class postage prepaid, and addressed to the operator at the address shown on the transient occupancy registration certificate. Section 3.28.070. Fee Declared a Debt - Action to Collect. Any fee collected by an operator pursuant to this chapter which has not been paid to the City shall be deemed a debt owed by the operator to the City and the operator shall be liable in an action brought in the name of the City of Newport Beach for the recovery of the unremitted fees. Section 3.28.075. Penalty for Violations. Any operator or other person who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or other data required by the Finance Director, or who renders a false or fraudulent return or claim, is guilty of a misdemeanor, and is ME punishable as provided in Section 1.04.010 of this Code. Any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this chapter to tie -made, is guilty of a misdemeanor and is punishable as aforesaid. Section 2: The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published ;once in the official newspaper within fifteen (15) days after its adoption. The Ordinance shall become effective on , 1987. Section 3: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the day of , and adopted on the day of , by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS Mayor ATTEST: City Clerk _26 -8- P.O. BOX 826, BALBOA, CALIFORNIA 92661 January 30, 1987 Luanda Raggio, City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 Dear Mrs. Raggio: COUNCIL AGENDA NO I-1 ---- This letter is to inform the city that the opinions expressed by Mr. Chan Lefebvre at the council meeting January 26, 1987, were his only and did not necessarily reflect the opinions of the Balboa Peninsula Point Assoc. I believe that his comments may have been interpreted as being officially representative of this association and want you to be aware that this was not the case. Very truly yours, 9�/ �& Bob Folk, Vice President Balboa Peninsula Point Association NEWPORT BEACH CONFERENCE & VISITORS BUREAU Post Office Box 2417, Newport Beach, CA 92663, (714) 756-2072 1987 BOARD OF DIRECTORS Dan Camp Four Seasons Hotel Jackie Heather 690 Newport Center Dr_. 1500 Dorothy Lane Newport Beach, Ca. 92660 Newport Beach, Ca. 92660 Kevin Consey Mac McNeill Newport Harbor Art Museum. Newporter Resort 850 San Clemente Dr. 1107 Jamboree. Rd. Newport Beach, Ca. 92660 Newport Beach, Ca. 92.6.60. Jim Dale Jeff Morse. Villa Nova. Sheraton Hotel 3131 W. Coast Highway 4545 MacArthur_ Blvd. Newport Beach, Ca.. 92663 Newport Beach, Ca. 92660 Bill Hamilton Victor R.umbe.11ow The Cannery Newport Channel Inn 3010 Lafayette Ave. 6030 W. Coast Highway Newport Beach, Ca.. 92663 Newport Beach, Ca. 92663 Herrick Hansen Bjorn Seddleneck Little Inn on the Bay POSH 617 Lido Park Dr. 46 Fashion Island Newport Beach, Ca. 92663 nlewpor..t Beach, Ca. 92660 Gene Hardin Chip Stuckmeyer AIRCAL Newport Beach Marriott 3636 Birch St. 900 Newport Center Dr. Newport Beach, Ca. 92660 Newport Beach, Ca. 92660 Bernard Jacouby Phil Tozer Le Meridien Balboa Pavilion Co. 4500 MacArthur Blvd. 400 Main St. Newport Beach, Ca. 92660 Balboa, Ca. 92661 John Jenkins Nancy Witterink Newport Beach Marriott Balboa Inn 900 Newport Center Dr. 105 Main St. Newport Beach, Ca. 92.660 Balboa, Ca. 92663 Jerry King Public Relations Counsel J. A. King & Associates Thomas Wilck Associates 3187 Airway 2151 Michelson Dr. Suite 290 Costa Mesa, Ca.. 92626 Irvine, Ca. 92715 Legal Counsel Ben Jackson Jackson & Associates One Civic Plaza Suite 250 Newport Beach, Ca. 92.660 SUBJECT: L E Y SUBJECT: §!ave tl�Le DATE Jan TO! All Residents FROM: The Administrator Many Of you are enjoying the Trolley Servicc-,- ghat comes to the entrance to Park Newport on a daily schedule. This service transports passengers on a bus, -like enclosed tr011ey to Fashion the Balboa Peni.ns�.jla, and other destinations in this area. The cost of 'his ride is only 500. There is a possibility that the !_Troiley_will be discontinuedin ��ne -2 We fiel. that your Support is of vital importance in order to maintain this con- venient and reasonable form of transportation for residents of Park Newport. Please indicate Your interest if, this service by filling out the bottoyiportion of this page. Viand this form tai the Security Officer at the gate or drop it off at the Administration Office, the Spa, the Rental Office, or the Maintenance Office. Thank you.. I would use the Trolley service as foijows: Never Use Seldom Use Two or three times a week Daily Signature D to Please return by__,l , 1-987 "RECEIVED AFTER AGENDA PRINTED` 'I IMPROVEMENT ASSOCIATION P.O. BOX 825 BALBOA, CALIF 92661 CITY OF NE^T INFC; -EACH, ! = February 9, 1987 FEB 91997 _ - 6 PECEIER '4 CITY Ptt!j RI City of Newport Beach City Council �-- 3300 Newport Blvd. Newport Beach, CA 92663 Re: Request for a Conference & Visitors Bureau Dear City Council Members, The majority of the members of the Balboa Improvement Association support the Visitor & Conference Bureau proposal before the City Council. We believe it will improve our City and is a positive step in the right direction. Sincerely, C. Bauman President cc: City Manager City Clerk Council Plembers CB/b "RECEIVED #M AGENDA d7 PRINTED:" iv Lm zARELy 6, R le I P, L 1 4j ZJT T t k "4 bt F- -T-(A fc- -rF. Yo L) A -VII T c),A jS'T(TL)FN IV 64 (2- E _0 i VEL- 0 PF-QS 64ZO LA-) f3t) L)Jv�b J C) F o Wz- E 1v C 0 upz A6 --a L C) I\j rA T o. VE t);O) T T 0 Cly 0 A A) rA C tl 00 9 C11 TSF BCH, FEB 91997® c���� PRINTED°' From the desk of.... WALT McCARTHY 1906 Port Bristol Circle Newport Beach February 1, 1987 Honorable City Council City of Newport Beach Recent editorials in local newspapers have questioned the Council's thinking regarding an increased bed tax to aid or support the hotel industry. I agree with the editorials and believe the proposed tax increase would be contrary to city need and citizen input. Measure A election results carried messages to the City Council. One of the strongest messages from the voters was to control or limit traffic which has already reached a saturation point in our city. If increasing the cost of hotel occupancy is supposedly going to encourage tourism, then additional traffic can be anticipated. The City of Newport Beach should not subsidize, even in laundered fashion through promotional bureaus, the overbuilt hotel interests. The corporate powers of the hotel industry undoubt— edly utilized surveys and actuarial projections, re the potential of this marketplace, prior to spending their millions of dollars in building and expansion programs. Their optimism will be rewarded soon enough without this city providing a sales force via taxation. Jam` COURTON & ASSOCIATES 19782 MacArthur Boulevard, Suite 200, Irvine, CA 92715 (714) 752-5712 • 121 South Main St., Lake Elsinore, CA 92330 (714) 674-8691 February 2, 1987 City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 2--97 i� t _ " TO: c:,l. rr9ey -t �:.�.'. Dir. :�<�>mry Dir. �!. taRDir. Dir. P.H., vhid$ Di;.t.'. Dir i 0 her SUBJECT: 1% Surcharge for Conference and Visitor's Bureau CIiY OF T t3EACN, 11 EB 1 p 1987 ® l� In February, 1981 the City of Newport Beach instituted litigation against the County of Orange and Newport Dunes in response to the approval of the Redevelopment Plans for the Newport Dunes by the County of Orange. The action was based on the City contention that the approval of the Redevelopment Plan was in violation of the California Environmental Quality Act in that the City of Newport Beach did not have the authority to review the intensity of the development. A significant concern of the City was the potential for the use of the facilities as a "convention hotel". The City of Newport Beach, the County of Orange and Newport Dunes, Inc. entered into a Settlement Agreement on May 17, 1983 to dismiss the legal action. A condition of the settlement was that the project would allow the construction of two meeting rooms with seating capacity not to exceed 100 persons each, one of which will be located on the east side of the swimming lagoon near the dry boat storage area. This provision was in specific response to the City Council's concern that the Newport Dunes become a facility which would draw non - conference users to the project area. The 1% tax surcharge for the funding of the Conference and Visitor's Bureau appears to support a somewhat different position. The tax will provide for funding to bring these conference users to the area rather than providing for destination resort users that would utilize facilities on-site at the Newport Dunes Hotel. In addition, it appears that the 1% tax surcharge may be applied to the Newport Dunes recreation vehicle park which is slated to have 307 units. The Conference and Visitor Bureau advertisements would have to utilize a different media to contact the recreational vehicle park user than the hotel and conference user and therefore the revenues from the RV parks should be separated for use with different advertising media. Environmental Research • Engineering • Planning • Governmental Relations The Newport Dunes therefore respectfully requests that the ordinance be structured to consider the Settlement Agreement and the separate adver- tising requirements for the Newport Dunes RV Park. Thank you very much for your consideration of this request. Respectfully yours, COURTON & ASSOCIAT`EESS Lawrence H. Buxton, President Planning Consultants for Newport Dunes,Inc. cc: Charles Yates David Cherashore "°RECEIV AFTER AGENDA PRINTED:" COURTON & ASSOCIATES 19782 MacArthur Boulevard, Suite 200, Irvine, CA 92715 (714) 752.5712 • 121 South Main St., Lake Elsinore, CA 92330 (714) 674.8691 February 2, 1987 City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 co CITY OF i �yEWpC4?T ��ACN� � 1� J C., -{r• FEB 101987 >ECEI�EO 1� � }, CITY CLERK � X1 >., /i wl�,N SUBJECT: 1% Surcharge for Conference and Visitor's Bureau In February, 1981 the City of Newport Beach instituted litigation against the County of Orange and Newport Dunes in response to the approval of the Redevelopment Plans for the Newport Dunes by the County of Orange. The action was based on the City contention that the approval of the Redevelopment Plan was in violation of the California Environmental Quality Act in that the City of Newport Beach did not have the authority to review the intensity of the development. A significant concern of the City was the potential for the use of the facilities as a "convention hotel". The City of Newport Beach, the County of Orange and Newport Dunes, Inc. entered into a Settlement Agreement on May 17, 1983 to dismiss the legal action. A condition of the settlement was that the project would allow the construction of two meeting rooms with seating capacity not to exceed 100 persons each, one of which will be located on the east side of the swimming lagoon near the dry boat storage area. This provision was in specific response to the City Council's concern that the Newport Dunes become a facility which would draw non - conference users to the project area. The 1% tax surcharge for the funding of the Conference and Visitor's Bureau appears to support a somewhat different position. The tax will provide for funding to bring these conference users to the area rather than providing for destination resort users that would utilize facilities on-site at the Newport Dunes Hotel. In addition, it appears that the 1% tax surcharge may be applied to the Newport Dunes recreation vehicle park which is slated to have 307 units. The Conference and Visitor Bureau advertisements would have to utilize a different media to contact the recreational vehicle park user than the hotel and conference user and therefore the revenues from the RV parks should be separated for use with different advertising media. Environmental Research • Engineering • Planning • Governmental Relations The Newport Dunes therefore respectfully requests that the ordinance be structured to consider the Settlement Agreement and the separate adver- tising requirements for the Newport Dunes RV Park. Thank you very much for your consideration of this request. Respectfully yours, COURTON & ASSOCIATES Lawrence H. Buxton, President Planning Consultants for Newport Dunes,Inc. cc: Charles Yates David Cherashore Newport levy on hotel beds taxes the mind When it comes to tourism, the Orange Coast city by the bay might as well be Paradox Beach. City fathers in Newport tentatively approved a proposal that puts them in the hotel -motel business. Never mind this intrusion into the free enterprise system pits the city squarely against the prevailing political philosophy of the land. No, the contradictions are worse than a bleeding heart, conservative Re-. publican do-gooder could ever begin to understand. Acting on a request from the Visitors Bureau, the City Council tentatively OK'd increasing the city bed tax imposed on all motel and hotel guests from 8 to 9 percent. The extra 1 percent (about $465,000 annually) will be used to try to increase the number of folks who flock to Newport — this, mind you, in a city that just overwhelmingly declared itself weary of traffic, prob- lems, congestion and otherwise fed up with growth. It's also the same city that is wrestling with problems caused by the visitors it does have every year. And it's the same city whose residents are fed up with noise from its airport, where more tourists would surely arrive. So a city with a populace already tired of too many people will try to persuade more people to come here. Hmmm? It's not that the city is a tourist ghost town, ignored by out-of-towners. Actually, it's estimated that more than 10 million people come to Newport every year. That's a lot of folks, but they're the wrong kind, according to those who would further tax beds. The 10 million are coming to the beach via the city's highways and byways but they are not. staying in the city's 2,487 motel and hotel rooms. And they are not the big spenders the hotel developers expected when they talked the city into letting them build what turns out to be a glut of overnight accommodations. No, the 10 million spend the day at the beach, enjoy the surf, purchase a frozen yogurt and maybe a T-shirt. Sometimes they riot. But mostly they leave when the wind comes up and the sun goes down. They don't dine in the city's finest restaurants and if they aren't staying at Rick's Roadside Motel up the freeway in Anaheim then they are probably going home to their own beds somewhere inland. So what is the response from our city leaders? Did they tell motel and hotel owners to put their marketing and promotions wizards to work? Did they suggest the hotel -motel lobby band together and freely assess a promotional fee that would benefit the association's bottom line without involving the city? Did they explain the city has no responsibility for unsound business practices and a general slump in the hotel industry? Did they explain that government has no business in private business, even if the first 8 percent of the bed tax falls to the city's general fund? No, Newport steered clear of any sort of logical response. Instead, city officials acknowledged they didn't have enough people staying in its hotels and motels so they should — get ready for this — charge more money to those too few people. Now, that's an intriguing concept: To attract more business when there is more supply than demand the city's response is to charge more for it. The hotel -motel lobby ought to reconsider its request to get the city involved in solving their problem. With that sort of assistance, they could wind up bankrupt. Opinions expressed in this space are those of the Daily Pilot. Other views expressed on this page are those of their authors and artists. Reader comment is invited. The Daily Pilot, P.O. Box 1560, Costa Mesa, 92626. Phone 642-6086.