SR 04-26-2016 3K
City Council
Report
City Council Meeting: April 26, 2016
Agenda Item: 3.K
To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic
Development Division
Subject: Santa Monica Tourism Marketing District Annual Reports
Recommended Action
Staff recommends that the City Council receive and approve the Annual Reports for
Fiscal Years 2013-14, 2014-15, and 2015-16 as filed by the Santa Monica Tourism
Marketing District.
Executive Summary
accordance with the California state law. The attached Annual Reports summarize the
-14, 2014-15, and 2015-16, and
include components such as Fiscal Year budgets, summaries of revenue collections,
notification of assessment increases, and Santa Monica Travel and Tourism
Strategic Plan.
Background
In California, Tourism Marketing Districts are formed pursuant to the Property and
Business Improvement District Law of 1994. The law allows for the creation of special
benefit assessment districts whereby businesses assess themselves in order to raise
funds within a specific geographic area to achieve a variety of objectives including
revenues, and remaining competitive by growing market share of visitors. At its meeting
on December 11, 2012, the City Council adopted a resolution of formation to establish
the Santa Monica Tourism Marketing District (SMTMD) which includes existing and
future lodging businesses within Santa Monica. The SMTMD was initiated by Santa
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Monica hotels and Santa Monica Travel and Tourism (SMTT), formerly known as the
Santa Monica Convention and Visitors Bureau. The goal of the SMTMD is to develop
Santa Monica as a brand, promote the City as a tourism destination, and increase
overnight lodging stays in Santa Monica through marketing and tourism
promotion efforts. The Management District Plan provides a list of the 31 lodging
businesses assessed under the SMTMD (Attachment D).
Implementation of the SMTMD assessments began on January 1, 2013, and will
continue for five years through December 31, 2017. The City is responsible for
collection of the assessments on a monthly basis, at the same time and in the same
manner as transient occupancy taxes are collected, from each lodging business located
in the boundaries of the assessment district. In its first year, the SMTMD was estimated
to generate approximately $3,129,000. From the assessments, the City retains an
administrative fee of $16,500
collection and transmittal of SMTMD assessments to SMTT. The administrative fee is
subject to an annual increase of five percent.
Unlike other business assessment districts within the City, an Annual Report for the
Santa Monica Tourism Marketing District is required to be reviewed and approved by
Council. In response to an inquiry, staff identified that the Annual Reports had not been
presented to Council. The Annual Reports are prospective and provide estimates of
expenses and assessments for the upcoming fiscal year of the Santa Monica Tourism
Marketing District. Since the two previous Annual Reports had not been presented to
Council, they are included with this report for Council approval. The Annual Reports
have been presented and approved by the Board of Santa Monica Travel and Tourism
in accordance with the adopted SMTMD Management District Plan.
Discussion
Under State law, SMTMD is required to prepare an annual report for each fiscal year,
except the first year, for which assessments are levied. In particular, Streets and
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Highways Code Section 36650 specifies that Annual Reports provide the following
information:
The improvements, maintenance, and activities to be provided for that fiscal year.
An estimate of the cost of providing the improvements, maintenance, and
activities for that fiscal year.
The estimated amount of any surplus or deficit of 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.
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.
Any proposed changes to the boundaries of the tourism marketing district or to
any benefit zones or classification within the district.
Since its inception, SMTMD funds have been invested to enhance business
development programs to broaden international target markets of the United Kingdom,
Australia, Brazil, France, and Germany, domestic markets in California, and national
markets in North America. Additional investment in public relations media has also
expanded international circulation of brand recognition to grow Santa Monica as a
destination. Additional information on key goals and achievements of the SMTMD are
provided in the attached Annual Reports.
The operating budget for the SMTMD fluctuates with market conditions and room night
sales and is adjusted annually to reflect estimated revenues and expenditures.
TMD assessments are based on estimates that take into account the previous year
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assessment collections, hotel occupancy projections, and other factors in the
hotel industry. Specifically, SMTT uses the aggregate average annual available and
occupied rooms, resulting occupancy levels, average daily room rate, and REVPAR
(revenue per available room) to structure the estimated assessment revenues for each
reporting year. The following overview summarizes the programs funded with SMTMD
assessments and the balance of information required in the Streets and Highways Code
Section 36650:
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SMTMD Reporting Years FY 2013-14 FY 2014-15 FY 2015-16
Revenues
Estimated TMD Assessments 3,634,621 4,270,580 3,990,436*
Programs
Travel Industry Sales 751,428 922,139 1,374,646
Marketing 1,628,000 1,997,854 1,323,693
Visitor Services 50,000 50,000 99,937
Total Cost of Programs
2,429,428 2,969,993 2,798,276
General and Administrative Services
363,462 427,058 330,885
Salaries and Benefits
660,000 660,000 611,753
Contingency Fund
181,731 213,529 199,522
Fixed Asset
50,000
Total Expenses
3,634,621 4,270,580 3,990,436
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Estimated Carry-Over from Previous
233,269 260,405 130,359
Fiscal Year
Estimated In-Kind Contributions
267,000 277,000 275,000
* These estimates are prepared in two-year increments. As actuals are received, budgets are adjusted to
accommodate changes, if needed. For example, the TMD Assessment estimates for FY 15-16 were
lowered due to differences in actual receipts.
During the reporting period, the assessment fees were increased incrementally by $0.25
per year in accordance with the adopted SMTMD Management District Plan:
Assessment Fee Based on Hotel Average
Daily Rates
Year
$100 - $199.99 $200 - $300 Over $300
2012-13 $2.00 $3.00 $4.00
2013-14 $2.25 $3.25 $4.25
2014-15 $2.50 $3.50 $4.50
2015-16 $2.75 $3.75 $4.75
2016-17 $3.00 $4.00 $5.00
The assessments are fixed-rate
Categorization reports from PKF and CBRE Hotels include complete lists of all hotels
levied under the various tiers. The categorization reports are provided in each
Annual Report.
As stipulated in Section 33650, the City Council may approve a report as filed by the
SMTMD or may modify any particular section contained in an annual report and
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approve it as modified. However, 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. Since there were no
proposed changes in the boundaries or assessment formulas in the reporting years for
FY 2013-14, FY 2014-15, and FY 2015-16, Council is recommended to approve the
reports as filed by the SMTMD.
Financial Impacts & Budget Actions
The Santa Monica Tourism Marketing District is self-supporting and there is no budget
Annual Reports for
Fiscal Year 2013-14, 2014-15, and 2015-16.
Prepared By:
Nia Tang, Senior Development Analyst
Approved Forwarded to Council
Attachments:
A. December 11, 2012 Staff Report
B. Management District Plan
C. SMTMD FY 2013-14 Annual Report
D. SMTMD FY 2014-15 Annual Report
E. SMTMD FY 2015-16 Annual Report
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SANTA MONICA TOURISM MARKETING
DISTRICT
MANAGEMENT DISTRICT PLAN
Formed pursuant to the Property and Business Improvement District Act of 1994
(Streets and Highways Code ¤36600 et seq.)
Submitted to the
Santa Monica Convention and Visitors Bureau
September 6, 2012
by
SANTA MONICA TOURISM MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
TABLE OF CONTENTS
I.INTRODUCTION AND OVERVIEW............................................................................................2
II.WHY A TOURISM MARKETING DISTRICT FOR SANTA MONICA?...............................4
III.BACKGROUND....................................................................................................................................5
IV. BOUNDARY..........................................................................................................................................6
V.SERVICE PLAN AND BUDGET......................................................................................................7
A.Assessment..........................................................................................................................7
B.Determination of Specific Benefit.......................................................................................7
C.Time and Manner for Collecting Assessments....................................................................8
D.Penalties and Interest...........................................................................................................8
E.Service Plan Budget Summary............................................................................................8
F.Annual Service Plan............................................................................................................8
G.Adjustments.........................................................................................................................9
VI.GOVERNANCE...................................................................................................................................10
A.OwnersÈ Association..........................................................................................................10
B.Brown Act and California Public Records Act Compliance.............................................10
C.Annual Report....................................................................................................................10
APPENDIX 1 Ã THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF
1994..........................................................................................................................................................11
APPENDIX 2 Ã LODGING BUSINESSES TO BE ASSESSED WITHIN THE SMTMD..............25
Santa Monica Tourism Marketing District Management District Plan Page 1
I. INTRODUCTION AND OVERVIEW
Developed by Santa Monica hotels and the Santa Monica Convention and Visitors Bureau, the Santa
Monica Tourism Marketing District (SMTMD) is a benefit assessment district proposed to help
fund marketing and sales promotion efforts for Santa Monica lodging businesses. This approach
has been used successfully in other destination areas throughout the country to improve tourism and
drive additional room nights.
Location: The proposed SMTMD includes all lodging businesses located within the boundaries
of the City of Santa Monica with an average daily rate of $100 and above.
Services: Marketing and sales promotions to increase tourism and to market Santa Monica
lodging businesses as tourist, meeting and event destinations.
Budget: The total assessment collected in year one is anticipated to be approximately
$3,204,677.74. The assessment funds are intended to supplement, not supplant,
existing funding for marketing programs.
Cost: The assessment is a fixed amount per occupied room per night. Based on the
benefit received, assessments will not be collected on stays of more than thirty (30)
consecutive days, nor on stays which are pursuant to contracts or written agreements
which were executed prior to January 1, 2013, regardless of the date of the stay. The
amount charged per occupied room per night is based on the businessesÈ average
daily rate based on the previous yearÈs performance. Assessment rates are:
Average Daily Assessment Per
Rate Room Per Night
$100 - $200 $2.00
$200 - $300 $3.00
Over $300 $4.00
Assessment rates may be subject to an annual increase of no more than $0.25 per
year. The maximum assessment rate for each category each year is:
Year $100 - $200 $200 - $300 Over $300
1 $ 2.00 $ 3.00 $ 4.00
2 $ 2.25 $ 3.25 $ 4.25
3 $ 2.50 $ 3.50 $ 4.50
4 $ 2.75 $ 3.75 $ 4.75
5 $ 3.00 $ 4.00 $ 5.00
Formation: TMD formation requires submittal of petitions from lodging businesses representing
more than 50% of the total annual assessment followed by a City Council hearing
Santa Monica Tourism Marketing District Management District Plan Page 2
and an opportunity for a written protest. The assessed lodging business owners will
receive notice of the public hearing by mail. If there is a majority written protest, the
TMD will not be formed.
Duration: The proposed SMTMD will have a five-year life, beginning January 1, 2013 and
ending December 31, 2017. Once per year beginning on the anniversary of the
formation of the district there is a 30-day period in which owners paying more than
50% of the assessment may protest and terminate the district.
Santa Monica Tourism Marketing District Management District Plan Page 3
II. WHY A TOURISM MARKETING DISTRICT FOR SANTA
MONICA?
There are several reasons why now is the right time to form a TMD in Santa Monica; the most
compelling reasons are below
1.Stable Funding for Tourism Promotion
The SMTMD will provide a stable source of funding for consistent tourism promotion
efforts in partnership with the City of Santa Monica. The SMTMD funds are intended to
supplement, not supplant, existing funding for marketing programs. Should existing levels
of funding for marketing programs be reduced, it is the intention of lodging businesses to
petition to disestablish the SMTMD.
2.An Opportunity for Increasing City Tax Revenues
As lodging business occupancy, rates, and revenue per available room (RevPar) increase, so
too will the CityÈs TOT revenue. An increase in visitors from our target audience will also
produce an increase in sales tax revenues from overall tourist spending. This represents a
substantial return to the City.
3.Remain Competitive by Growing Market Share of Visitors
The funding will ensure that more adequate financing exists for the investment required to
help target and increase the number overnight visitors consuming rooms at assessed hotels.
It will allow further implementation of strategies and programs in currently producing
markets and build emerging international markets.
Santa Monica Tourism Marketing District Management District Plan Page 4
III. BACKGROUND
Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the
market-based promotion of tourism districts. TMDs allow lodging and tourism-related business
owners to organize their efforts to increase tourism. Tourism-related business owners within the
district fund a TMD, and those funds are used to provide services that the businesses desire and that
benefit the lodging businesses within the District.
Tourism Marketing District services may include, but are not limited to:
Marketing of the Destination
Tourism Promotion Activities
Sales Lead Generation
Visitor services to increase room night consumption
In California, Tourism Marketing Districts are formed pursuant to the Property and Business
Improvement District Law of 1994 (PBID Law). This law allows for the creation of a special
benefit assessment district to raise funds within a specific geographic area.
The key difference between
TMDs and other special benefit assessment districts is that funds raised are returned to the private non-profit
corporation governing the district.
There are many benefits to Tourism Marketing Districts:
Designed, created and governed by those who will pay the assessment;
Provide a stable funding source for tourism promotion;
Customized to fit the needs of each destination;
Allow for a wide range of services, including those listed above; and
Funds cannot be diverted for other government programs.
The Property and Business Improvement District Law of 1994 is provided in Appendix 1 of this
document.
Santa Monica Tourism Marketing District Management District Plan Page 5
IV. BOUNDARY
The SMTMD will include all lodging businesses, existing and in the future, available for public
occupancy within the boundaries of the City of Santa Monica.
The boundary currently includes 31 lodging businesses. Please see the map below. A complete
listing of lodging businesses within the proposed SMTMD can be found on Appendix 2 of this Plan.
After the TMD is formed, the TMD hotel committee intends to research the feasibility of expanding
the TMD to include businesses other than hotels.
Santa Monica Tourism Marketing District Management District Plan Page 6
V. SERVICE PLAN AND BUDGET
A.Assessment
The assessment is a fixed amount per occupied room per night. Based on the benefit received,
assessments will not be collected on stays of more than thirty (30) consecutive days, nor on stays
which are pursuant to contracts or written agreements which were executed prior to January 1, 2013,
regardless of the date of the stay. The amount charged per occupied room per night is based on the
businessesÈ average daily rate based on the previous yearÈs performance. Assessment rates are:
Average Daily Assessment Per
Rate Room Per Night
$100 - $200 $2.00
$200 - $300 $3.00
Over $300 $4.00
Assessment rates may be subject to an annual increase of no more than $0.25 per year. The
maximum assessment rate for each category each year is:
Year $100 - $200 $200 - $300 Over $300
1 $ 2.00 $ 3.00 $ 4.00
2 $ 2.25 $ 3.25 $ 4.25
3 $ 2.50 $ 3.50 $ 4.50
4 $ 2.75 $ 3.75 $ 4.75
5 $ 3.00 $ 4.00 $ 5.00
Bonds will not be issued.
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. The assessment shall be described as the
ÅTourism Marketing District AssessmentÆ or ÅTMD AssessmentÆ on the guestÈs documentation.
B.Determination of Specific Benefit
State law requires that assessment funds be expended on a specific benefit conferred directly to the
payors that is not provided to those not charged, and which does not exceed the reasonable cost to the
City of conferring the benefit.
The specific benefit the district will provide to assessed lodging businesses, and will not provide to non-
assessed lodging businesses, is room night sales. The programs and services provided with the district
funds will be designed specifically to drive room night sales at assessed lodging businesses. Only
assessed lodging businesses will be featured in marketing materials, receive sales leads generated from
district-funded activities, be featured in advertising campaigns, and benefit from other district-funded
services. Non-assessed lodging businesses will not receive these and any other district-funded services.
Santa Monica Tourism Marketing District Management District Plan Page 7
C.Time and Manner for Collecting Assessments
The SMTMD assessment will be implemented beginning January 1, 2013 and will continue for five
years through December 31, 2017. The City of Santa Monica will be responsible for collecting the
assessment (including any delinquencies, penalties and interest) on a monthly basis, at the same time
and in the same manner as transient occupancy taxes are collected, from each lodging business
located in the boundaries of the SMTMD. The City shall take all reasonable efforts to collect the
assessments from each lodging business. The City of Santa Monica shall forward the assessments on
a quarterly or monthly basis to the Santa Monica Convention and Visitors Bureau (SMCVB) which
will have the responsibility of managing TMD programs as provided in this Management District
Plan.
D.Penalties and Interest
If any business shall fail or refuse to remit to the City the assessment due on or before the last day of
the month in which the assessment becomes due, there shall be added to the assessment a penalty of
ten percent (10%) of the amount of the assessment. If the assessment remains delinquent and
unpaid thereafter for a period of thirty days, there shall be an additional penalty of ten percent
(10%).
E.Service Plan Budget Summary
A summary of the annual service plan budget for the SMTMD is provided on the following pages.
The total five year improvement and service plan budget is projected at approximately $3,204,677.74
annually, or $16,023,388.68 through December 31, 2017.
F.Annual Service Plan
A service plan budget has been developed to deliver services throughout the District. An annual
service plan and budget will be developed and approved by the SMCVB Board. Please see the
budget below.
Santa Monica Tourism Marketing District
Annual Budget, Years One through Five
Percent of Dollar
Category
Budget Amount
Sales and Marketing
85%
$2,723,976.07
Administration
10%
$320,467.77
Contingency/Renewal
5%
$160,233.89
Total Annual Budget
100%
$3,204,677.74
Sales and Marketing
A sales and marketing program will promote Santa Monica lodging businesses as tourist and meeting
destinations. The sales and marketing program will have a central theme of promoting Santa
Monica as a desirable place to visit overnight, and may include the following activities:
Internet marketing efforts to increase awareness and optimize internet presence;
Print ads in magazines and newspapers targeted at potential visitors;
Television ads targeted at potential visitors;
Radio ads targeted at potential visitors;
Santa Monica Tourism Marketing District Management District Plan Page 8
Attendance of trade shows;
Sales blitzes;
Familiarization tours;
Research and analytics;
Translation services;
Staff to implement and support expanded marketing and promotions efforts;
External public relations firms;
Preparation and production of collateral promotional materials such as brochures, flyers and
maps;
Attendance of professional industry conferences and affiliation events;
Lead generation activities designed to attract tourists and group events to Santa Monica;
Director of Sales and General Manager meetings to plan and coordinate tourism promotion
efforts;
Education of hospitality staff on service and safety (related to alcohol and food) designed to
create a visitor experience that will bring repeat visits; and
Education of lodging business management and the ownersÈ association on marketing
strategies best suited to meet Santa MonicaÈs needs.
Administration and Operations
The administrative and operations portion of the budget shall be utilized for staffing costs, office
costs, and other general administrative costs.
Contingency/Renewal
A prudent portion of the budget will be set aside in a contingency fund, to be used for unforeseeable
costs in carrying out the sales and marketing programs. If at the expiration of the district there are
contingency funds remaining, and business owners wish to renew the district, the remaining
contingency funds may be used for renewal costs.
G.Adjustments
The annual service plan shall remain consistent with the budget herein. Although actual revenues
will fluctuate due to market conditions, the proportional allocations of the budget shall remain the
same. However, the SMCVB board shall have the authority to adjust budget allocations between the
categories by no more than fifteen percent (15%) per year.
Santa Monica Tourism Marketing District Management District Plan Page 9
VI. GOVERNANCE
A.OwnersÈ 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 OwnersÈ Association of the TMD as defined in Streets and Highways
Code ¤36614.5. The Santa Monica Convention and Visitors Bureau (Bureau) will serve as the
OwnersÈ Association for the TMD.
The Bureau shall form a new standing advisory committee, to be known as the ÅTMD hotel
committee.Æ The TMD hotel committee shall have between 4 and 9 members, of which at least
four will be representatives of assessed lodging businesses. The TMD hotel committee shall be
responsible for making recommendations to the SMCVB board regarding TMD funds and
programs.
Annually, the Bureau shall hold a joint SMCVB board and TMD hotel committee meeting which
will be open to the public. The purpose of the annual meeting will be mutual approval of the
budget and programs for TMD funds for the upcoming fiscal year.
D.Brown Act and California Public Records Act Compliance
The OwnersÈ Association is subject to government regulations relating to transparency, namely the
Ralph M. Brown Act and the California Public Records Act, designed to promote public
accountability. The OwnersÈ Association of a TMD is considered a legislative body under the Ralph
M. Brown Act (Government Code ¤54950 et seq.). Thus, meetings of the BureauÈs board to the
extent TMD business is conducted, and meetings of the TMD committee where a majority of the
members of the board are present, must be held in compliance with the public notice and other
requirements of the Brown Act. The OwnerÈs Association is also subject to the record keeping and
disclosure requirements of the California Public Records Act.
E.Annual Report
The BureauÈs board shall provide an annual report at the end of each fiscal year of operation to the
City Council pursuant to Streets and Highways Code ¤36650 (see Appendix 1).
Santa Monica Tourism Marketing District Management District Plan Page 10
APPENDIX 1 Ã THE PROPERTY AND BUSINESS IMPROVEMENT
DISTRICT LAW OF 1994
PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
STREETS AND HIGHWAYS CODE
Division 18. Parking
*** THIS DOCUMENT IS CURRENT THROUGH 2009-2010 EXTRAORDINARY SESSIONS 1-5, ***
AND 7, AND URGENCY LEGISLATION THROUGH CH 4 OF THE 2010 REGULAR SESSION
¤ 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
The Legislature finds and declares all of the following:
Businesses located and operating within the business districts of this state's communities
(a)
are economically disadvantaged, are underutilized, and are unable to attract customers due to
inadequate facilities, services, and activities in the business districts.
It is in the public interest to promote the economic revitalization and physical
(b)
maintenance of the business districts of its cities in order to create jobs, attract new businesses,
and prevent the erosion of the business districts.
It is of particular local benefit to allow cities to fund business related improvements,
(c)
maintenance, and activities through the levy of assessments upon the businesses or real property
that benefits from those improvements.
Assessments levied for the purpose of providing improvements and promoting activities
(d)
that benefit real property or businesses are not taxes for the general benefit of a city, but are
assessments for the improvements and activities which confer special benefits upon the real
property or businesses for which the improvements and activities are provided.
¤ 36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize
cities to levy assessments within a business improvement area. 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.
Santa Monica Tourism Marketing District Management District Plan Page 11
¤ 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 in this part that conflicts with any other provision of law shall prevail over the
other provision of law.
¤ 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.
¤ 36605. \[Section repealed 2001.\]
¤ 36606. "Assessment"
"Assessment" means a levy for the purpose of acquiring, constructing, installing, or
maintaining improvements and promoting activities which will benefit the properties or
businesses located within a property and business improvement district.
¤ 36607. "Business"
"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.
Santa Monica Tourism Marketing District Management District Plan Page 12
¤ 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.
¤ 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:
Parking facilities.
(a)
Benches, booths, kiosks, display cases, pedestrian shelters and signs.
(b)
Trash receptacles and public restrooms.
(c)
Lighting and heating facilities.
(d)
Decorations.
(e)
Parks.
(f)
Fountains.
(g)
Planting areas.
(h)
Closing, opening, widening, or narrowing of existing streets.
(i)
Facilities or equipment, or both, to enhance security of persons and property within the
(j)
area.
Ramps, sidewalks, plazas, and pedestrian malls.
(k)
Rehabilitation or removal of existing structures.
(l)
¤ 36611. "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.
¤ 36612. "Property"
"Property" means real property situated within a district.
¤ 36613. "Activities"
"Activities" means, but is not limited to, all of the following:
Promotion of public events which benefit businesses or real property in the district.
(a)
Santa Monica Tourism Marketing District Management District Plan Page 13
Furnishing of music in any public place within the district.
(b)
Promotion of tourism within the district.
(c)
Marketing and economic development, including retail retention and recruitment.
(d)
Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
(e)
municipal services supplemental to those normally provided by the municipality.
Activities which benefit businesses and real property located in the district.
(f)
¤ 36614. "Management district plan"; "Plan"
"Management district plan" or "plan" means a proposal as defined in Section 36622.
¤ 36614.5. "Owners' association"
"Owners' association" means a private nonprofit entity that is under contract with a city to
administer or implement activities and improvements 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 documents relating
to activities of the district.
¤ 36615. "Property owner"; "Owner"
"Property owner" or "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. The
city council has no obligation to obtain other information as to the ownership of land, and its
determination of ownership shall be final and conclusive for the purposes of this part. Wherever
this subdivision requires the signature of the property owner, the signature of the authorized
agent of the property owner shall be sufficient.
¤ 36616. "Tenant"
"Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit,
other than an owner.
Santa Monica Tourism Marketing District Management District Plan Page 14
¤ 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.
¤ 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 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
Upon the submission of a written petition, signed by the property or business owners in
(a)
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.
The petition of property or business owners required under subdivision (a) shall include a
(b)
summary of the management district plan. That summary shall include all of the following:
A map showing the boundaries of the district.
(1)
Information specifying where the complete management district plan can be obtained.
(2)
Information specifying that the complete management district plan shall be furnished
(3)
upon request.
The resolution of intention described in subdivision (a) shall contain all of the following:
(c)
A brief description of the proposed activities and improvements, the amount of the
(1)
proposed assessment, a statement as to whether the assessment will be levied on property or
Santa Monica Tourism Marketing District Management District Plan Page 15
businesses within the district, a statement as to whether bonds will be issued, and a description of
the exterior boundaries of the proposed district. 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 and activities and the location and extent of the proposed district.
A time and place for a public hearing on the establishment of the property and business
(2)
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 contain all of the following:
A map of the district in sufficient detail to locate each parcel of property and, if
(a)
businesses are to be assessed, each business within the district.
The name of the proposed district.
(b)
A description of the boundaries of the district, including the boundaries of benefit zones,
(c)
proposed for establishment or extension in a manner sufficient to identify the affected lands and
businesses included. 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.
The improvements and activities proposed for each year of operation of the district and
(d)
the maximum cost thereof.
The total annual amount proposed to be expended for improvements, maintenance and
(e)
operations, and debt service in each year of operation of the district.
The proposed source or sources of financing, including the proposed method and basis of
(f)
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.
The time and manner of collecting the assessments.
(g)
The specific number of years in which assessments will be levied. In a new district, the
(h)
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.
The proposed time for implementation and completion of the management district plan.
(i)
Any proposed rules and regulations to be applicable to the district.
(j)
Santa Monica Tourism Marketing District Management District Plan Page 16
A list of the properties or businesses to be assessed, including the assessor's parcel
(k)
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, including operation
and maintenance. The plan may provide that all or any class or category of real property which is
exempt by law from real property taxation may nevertheless be included within the boundaries of
the district but shall not be subject to assessment on real property.
Any other item or matter required to be incorporated therein by the city council.
(l)
¤ 36623. Procedure to levy assessment
If a city council proposes to levy a new or increased property assessment, the notice and
(a)
protest and hearing procedure shall comply with Section 53753 of the Government Code.
If a city council proposes to levy a new or increased business assessment, the notice and
(b)
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. A written protest which does
not comply with this section shall not be counted in determining a majority protest. If written
protests are received from the owners of businesses in the proposed district which will pay 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.
¤ 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
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 or
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.
Santa Monica Tourism Marketing District Management District Plan Page 17
¤ 36625. Resolution of formation
If the city council, following the public hearing, decides to establish the proposed
(a)
property and business improvement district, the city council shall adopt a resolution of formation
that shall contain all of the following:
A brief description of the proposed activities and improvements, the amount of the
(1)
proposed assessment, a statement as to whether the assessment will be levied on property or
businesses within the district, a statement about whether bonds will be issued, and a description
of the exterior boundaries of the proposed district. 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 and activities and the location and extent of the proposed district.
The number, date of adoption, and title of the resolution of intention.
(2)
The time and place where the public hearing was held concerning the establishment of
(3)
the district.
A determination regarding any protests received. The city shall not establish the district
(4)
or levy assessments if a majority protest was received.
A statement that the properties or businesses in the district established by the resolution
(5)
shall be subject to any amendments to this part.
A statement that the improvements and activities to be provided in the district will be
(6)
funded by the levy of the assessments. The revenue from the levy of assessments within a district
shall not be used to provide improvements 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.
A finding that the property or businesses within the area of the property and business
(7)
improvement district will be benefited by the improvements and activities funded by the
assessments proposed to be levied.
The adoption of the resolution of formation and recordation of the notice and map
(b)
pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years
referred to in the management district plan.
¤ 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 paragraphs (1) to (8), inclusive, of subdivision (b) of Section
36625, but need not contain information about the preliminary resolution if none has been
adopted.
Santa Monica Tourism Marketing District Management District Plan Page 18
¤ 36626.5. \[Section repealed 1999.\]
¤ 36626.6. \[Section repealed 1999.\]
¤ 36626.7. \[Section repealed 1999.\]
¤ 36627. Notice and assessment diagram
Following adoption of the resolution establishing the district pursuant to Section 36625 or
36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section
3114. If the assessment is levied on businesses, the text of the recorded notice shall be modified
to reflect that the assessment will be levied on businesses, or specified categories of businesses,
within the area of the district. 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 and activities.
¤ 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 parking and business improvement area.
Santa Monica Tourism Marketing District Management District Plan Page 19
¤ 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 a new
district established pursuant to this part.
¤ 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 establishing the management district
plan described in Section 36622. 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 shall 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
The assessments levied on real property pursuant to this part shall be levied on the basis
(a)
of the estimated benefit to the real property within the property and business improvement
district. The city council may classify properties for purposes of determining the benefit to
property of the improvements and activities provided pursuant to this part.
Assessments levied on businesses pursuant to this part shall be levied on the basis of the
(b)
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.
Properties zoned solely for residential use, or that are zoned for agricultural use, are
(c)
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.
Santa Monica Tourism Marketing District Management District Plan Page 20
¤ 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; Modification of improvements and activities by adoption of resolution after
public hearing
Upon the written request of the owners' association, the city council may modify the
(a)
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 meetings and public hearings pursuant to this section shall
comply with both of the following:
The resolution of intention shall be published in a newspaper of general circulation in the
(1)
city once at least seven days before the public meeting.
A complete copy of the resolution of intention shall be mailed by first class mail, at least
(2)
10 days before the public meeting, to each business owner or property owner affected by the
proposed modification.
The city council shall adopt a resolution of intention which states the proposed
(b)
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.
¤ 36640. Bonds authorized; Procedure; Restriction on reduction or termination of
assessments
The city council may, by resolution, determine and declare that bonds shall be issued to
(a)
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)) or in conjunction with Marks-Roos Local
Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7
Santa Monica Tourism Marketing District Management District Plan Page 21
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.
The resolution adopted pursuant to subdivision (a) shall generally describe the proposed
(b)
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.
Notwithstanding any other provision of this part, assessments levied to pay the principal
(c)
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.
¤ 36641. \[Section repealed 2001.\]
¤ 36642. \[Section repealed 2001.\]
¤ 36643. \[Section repealed 2001.\]
¤ 36650. Report by owners' association; Approval or modification by city council
The owners' association shall cause to be prepared a report for each fiscal year, except the
(a)
first year, for which assessments are to be levied and collected to pay the costs of the
improvements 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.
The report shall be filed with the clerk and shall refer to the property and business
(b)
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:
Any proposed changes in the boundaries of the property and business improvement
(1)
district or in any benefit zones or classification of property or businesses within the district.
The improvements and activities to be provided for that fiscal year.
(2)
An estimate of the cost of providing the improvements and the activities for that fiscal
(3)
year.
The method and basis of levying the assessment in sufficient detail to allow each real
(4)
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.
The amount of any surplus or deficit revenues to be carried over from a previous fiscal
(5)
year.
Santa Monica Tourism Marketing District Management District Plan Page 22
The amount of any contributions to be made from sources other than assessments levied
(6)
pursuant to this part.
The city council may approve the report as filed by the owners' association or may
(c)
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 and activities
The management district plan may, but is not required to, state that an owners' association
will provide the improvements or 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.
¤ 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
Any district previously established whose term has expired, may be renewed by following
(a)
the procedures for establishment as provided in this chapter.
Upon renewal, any remaining revenues derived from the levy of assessments, or any
(b)
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.
Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is
(c)
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.
¤ 36670. Circumstances permitting disestablishment of district; Procedure
Any district established or extended pursuant to the provisions of this part, where there is
(a)
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:
If the city council finds there has been misappropriation of funds, malfeasance, or a
(1)
violation of law in connection with the management of the district, it shall notice a hearing on
disestablishment.
During the operation of the district, there shall be a 30-day period each year in which
(2)
assessees may request disestablishment of the district. The first such period shall begin one year
Santa Monica Tourism Marketing District Management District Plan Page 23
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 of real property or of businesses in the area 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.
The city council shall adopt a resolution of intention to disestablish the district prior to
(b)
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 of district; Calculation of
refund; Use of outstanding revenue collected after disestablishment of district
Upon the disestablishment of a district, any remaining revenues, after all outstanding
(a)
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. All outstanding assessment
revenue collected after disestablishment shall be spent on improvements and activities specified
in the management district plan.
If the disestablishment occurs before an assessment is levied for the fiscal year, the
(b)
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.
Santa Monica Tourism Marketing District Management District Plan Page 24
APPENDIX 2 Ã LODGING BUSINESSES TO BE ASSESSED WITHIN
THE SMTMD
Business Name Street Address
The Ambrose 1255 20th St
Bayside 2001 Ocean Ave
Best Western PLUS Gateway Hotel 1920 Santa Monica Blvd
Cal Mar Hotel Suites 220 California Ave
Comfort Inn Santa Monica 2815 Santa Monica Blvd
Days Inn Santa Monica 3007 Santa Monica Blvd
DoubleTree Suites by Hilton 1707 Fourth St
The Embassy Hotel Apartments 1001 Third St
Fairmont Miramar Hotel & Bungalows 101 Wilshire Blvd
Holiday Inn Santa Monica at the Pier 120 Colorado Ave
Holiday Motel 1102 Pico Blvd
Hotel California 1670 Ocean Ave
Hotel Carmel 201 Broadway
Hotel Casa Del Mar 1910 Ocean Way
Hotel Shangri-La 1301 Ocean Ave
Huntley Santa Monica Beach 1111 Second St
JW Marroitt Santa Monica Le Merigot 1740 Ocean Ave
Loews Santa Monica Beach Hotel 1700 Ocean Ave
Ocean Lodge 1667 Ocean Ave
Ocean View Hotel 1447 Ocean Ave
Oceana Beach Club Hotel 849 Ocean Ave
Santa Monica Pico Travelodge 3102 Pico Blvd
Rest Haven 815 Grant Street
Santa Monica Motel 2102 Lincoln Blvd.
Sea Shore Motel 2637 Main St
Seaview Hotel 1760 Ocean Ave
Sheraton Delfina Santa Monica 530 W. Pico Blvd
Shore Hotel 1515 Ocean Ave
Shutters on the Beach One Pico Blvd
The Georgian Hotel 1415 Ocean Ave
Viceroy Santa Monica 1819 Ocean Ave
Santa Monica Tourism Marketing District Management District Plan Page 25
Santa Monica Convention Visitors Bureau
Proposed Budget
For the Fiscal Year Ending June 30, 2014
Budget
FYE 2014
City ContractTMDTotal Budget
Revenues
City Contract Revenue$ 2,483,29995.02%$ 2,483,29939.75%
Estimated TMD Revenue$ 3,634,621100.00% 3,634,62158.17%
Other Revenue 130,0504.98% 130,0502.08%
Total Revenues$ 2,613,349100.00%$ 3,634,621100.00%$ 6,247,970100.00%
Cost of Programs
Travel Industry Sales$ 94,4423.61%$ 751,42820.67%$ 845,87013.54%
Marketing 263,75510.09% 1,628,00044.79% 1,891,75530.28%
Visitor Services 242,9569.30% 50,0001.38% 292,9564.69%
Total Cost of Programs$ 601,15323.00%$ 2,429,42866.84%$ 3,030,58148.51%
General & Administartive Expenses$ 514,37319.68%$ 363,46210.00%$ 877,83514.05%
Salaries & Benefits$ 1,497,82357.31%$ 660,00018.16%$ 2,157,82434.54%
Contingency Fund$ - -$ 181,7315.00% 181,7312.91%
Total Expenses$ 2,613,349100.00%$ 3,634,621100.00%$ 6,247,971100.00%
Net Income$ - -$ -$ - -
Santa Monica Convention Visitors Bureau
Proposed Budget
For the Fiscal Year Ending June 30, 2015
Budget
FYE 2015
City ContractTMDTotal Budget
Revenues
City Contract Revenue$ 2,545,38195.14%$ 2,545,38136.65%
Estimated TMD Revenue0.00%$ 4,270,580100.00% 4,270,58061.48%
Other Revenue 130,0504.86%0.00% 130,0501.87%
Total Revenues$ 2,675,431100.00%$ 4,270,580100.00%$ 6,946,011100.00%
Cost of Programs
Travel Industry Sales$ 96,8033.62%$ 922,13921.59%$ 1,018,94214.67%
Marketing 270,35010.10% 1,997,85446.78% 2,268,20432.65%
Visitor Services 245,7769.19% 50,0001.17% 295,7764.26%
Total Cost of Programs$ 612,92922.91%$ 2,969,99369.55%$ 3,582,92251.58%
General & Administartive Expenses$ 527,23319.71%$ 427,05810.00%$ 954,29113.74%
Salaries & Benefits$ 1,535,26957.38%$ 660,00015.45%$ 2,195,26931.60%
Contingency Fund 0.00%$ 213,5295.00%$ 213,5293.07%
Total Expenses$ 2,675,431100.00%$ 4,270,580100.00%$ 6,946,011100.00%
Net Income$ -0.00%$ -0.00%$ -0.00%
Santa Monica Convention Visitors Bureau
Proposed Budget
For the Fiscal Year Ending June 30, 2014
BudgetBudgetBudget
FYE 2012FYE 2013FYE 2014
City ContractTMDTotal Budget
Revenues
City Contract Revenue$ 2,500,23894.91%$ 2,562,74495.21%$ 2,483,29995.02%$ 2,483,29939.75%
Estimated TMD Revenue$ 3,634,621100.00% 3,634,62158.17%
Other Revenue 133,9995.09% 129,0504.79% 130,0504.98% 130,0502.08%
Total Revenues$ 2,634,237100.00%$ 2,691,794100.00%$ 2,613,349100.00%$ 3,634,621100.00%$ 6,247,970100.00%
Cost of Programs
Travel Industry Sales$ 167,0006.34%$ 175,0006.50%$ 94,4423.61%$ 751,42820.67%$ 845,87013.54%
Marketing 336,41812.77% 292,20010.86% 263,75510.09% 1,628,00044.79% 1,891,75530.28%
Visitor Services 171,8486.52% 141,4945.26% 242,9569.30% 50,0001.38% 292,9564.69%
Total Cost of Programs$ 675,26625.63%$ 608,69422.61%$ 601,15323.00%$ 2,429,42866.84%$ 3,030,58148.51%
General & Administartive Expenses$ 522,75219.84%$ 540,70020.09%$ 514,37319.68%$ 363,46210.00%$ 877,83514.05%
Salaries & Benefits$ 1,436,21954.52%$ 1,542,40057.30%$ 1,497,82357.31%$ 660,00018.16%$ 2,157,82434.54%
Contingency Fund - -$ - -$ 181,7315.00% 181,7312.91%
Total Expenses$ 2,634,237100.00%$ 2,691,794100.00%$ 2,613,349100.00%$ 3,634,621100.00%$ 6,247,971100.00%
Net Income$ - -$ - -$ - -$ -$ - -
Santa Monica Convention Visitors Bureau
Proposed Budget
For the Fiscal Year Ending June 30, 2015
BudgetBudgetBudget
FYE 2013FYE 2014FYE 2015
City ContractTMDTotal Budget
Revenues
City Contract Revenue$ 2,562,74495.21%$ 2,483,29939.75%$ 2,545,38195.14%$ 2,545,38136.65%
Estimated TMD Revenue 3,634,62158.17%0.00%$ 4,270,580100.00% 4,270,58061.48%
Other Revenue 129,0504.79% 130,0502.08% 130,0504.86%0.00% 130,050 1.87%
Total Revenues$ 2,691,794100.00%$ 6,247,970100.00%$ 2,675,431100.00%$ 4,270,580100.00%$ 6,946,011100.00%
Cost of Programs
Travel Industry Sales$ 175,000 6.50%$ 845,870 13.54%$ 96,8033.62%$ 922,13921.59%$ 1,018,94214.67%
Marketing 292,20010.86% 1,891,75530.28% 270,35010.10% 1,997,85446.78% 2,268,20432.65%
Visitor Services 141,4945.26% 292,9564.69% 245,7769.19% 50,0001.17% 295,776 4.26%
Total Cost of Programs$ 608,694 22.61%$ 3,030,58148.51%$ 612,929 22.91%$ 2,969,99369.55%$ 3,582,92251.58%
General & Administartive Expenses$ 540,700 20.09%$ 877,835 14.05%$ 527,233 19.71%$ 427,05810.00%$ 954,29113.74%
Salaries & Benefits$ 1,542,40057.30%$ 2,157,82434.54%$ 1,535,26957.38%$ 660,00015.45%$ 2,195,26931.60%
Contingency Fund 0.00% 181,7312.91%0.00%$ 213,5295.00%$ 213,5293.07%
Total Expenses$ 2,691,794100.00%$ 6,247,971100.00%$ 2,675,431100.00%$ 4,270,580100.00%$ 6,946,011100.00%
Net Income$ - -$ - -$ - -$ - -$ - -
Total Estimated Collections
Calendar Year 2013 $3,268,190.59
15% Contingency $490,228.59
Calendar year Contingency Included in
-$84,520.52
FYE2014 Budget
Total Amount of FYE2013 Collections
Allocated to Contingency
$405,708.07
SANTA MONICA CONVENTION & VISITORS BUREAU
BOARD of DIRECTORS MEETING
Wednesday, June 12, 2013
4:00PM - 5:00PM
Fairmont Miramar Hotel & Bungalow à Wilshire I
Board Members Present: Desser, Chacker, Jarow, King, Lewkowicz, and OÈConnor,
Board Members Absent: Day, Gould, Lunetta, Salo
TMD Committee Members Present: Farzam, Jonas, Viramontes, and Syme
Staff Present: Baker, Jalali, Kerns, and Thomas
Call to Order: Chair Jarow called the meeting to order at 4:15 PM
Chair Report:
Chair Jarow presented the officer slate for the executive committee. Jeff Jarow
(Chairmen), Ellis OÈConnor (Vice Chairmen), Raphael Lunetta (Secretary), Greogry Day
(Treasurer). Lewcowicz moved to approve, Desser seconded. Motion passes
unanimously.
Chair Jarow reported that the SMCVB is in negotiations for a new building lease. Chair
th
Jarow also informed the board that SMCVB will be participating in the Main Street 4 of
July Parade again this year.
City Manager Report:
Rod Gould, City Manager, was absent from the meeting.
Board Meeting Minutes:
Secretary Lewkowicz presented the May 2013 Board meeting minutes. OÈConnor
moved to approve and Desser seconded. Motion passed unanimously.
Financials:
In Treasurer LunettaÈs absense Janie Thomas, Accounting Coordinator at SMCVB,
presented May 2013 financials. Lewkowicz moved to accept and OÈConnor seconded.
Motion passes unanimously.
Staff Reports:
Baker reviewed the key initiatives for SMCVB 2-Year operational plan that was
constructed form the strategic planning process.
Thomas presented the 2013/2014 and 2014/2015 CVB and TMD budgets. Lewkowicz
moved to accept, Desser seconded. Motion passed unanimously
Adjournment:
There being no further business, Chair Jarow adjourned meeting at 5:00 PM.
PKF Consulting USA | 865 S. Figueroa Street, Suite 3500 | Los Angeles, CA 90017
TEL: 213-680-0900 | FAX: 213-623-8240 | www.pkfc.com
Ms. Misti Kerns
Santa Monica Convention & Visitors Bureau Page | 2
1
1
It should be noted that he Cottage Santa Monica opened in January 2014. By statute, the TMD rate categorization
is solely based on the previous yearÈs average daily rate; however, in the case of this particular hotel the TMD
tier rate is based on it published rate (well above $300) for the 2014 assessment year.
Ms. Misti Kerns
Santa Monica Convention & Visitors Bureau Page | 3
Santa Monica Convention Visitors Bureau
Proposed Budget
For the Fiscal Year Ending June 30, 2014
Budget
FYE 2014
City ContractTMDTotal Budget
Revenues
City Contract Revenue$ 2,483,29995.02%$ 2,483,29939.75%
Estimated TMD Revenue$ 3,634,621100.00% 3,634,62158.17%
Other Revenue 130,0504.98% 130,0502.08%
Total Revenues$ 2,613,349100.00%$ 3,634,621100.00%$ 6,247,970100.00%
Cost of Programs
Travel Industry Sales$ 94,4423.61%$ 751,42820.67%$ 845,87013.54%
Marketing 263,75510.09% 1,628,00044.79% 1,891,75530.28%
Visitor Services 242,9569.30% 50,0001.38% 292,9564.69%
Total Cost of Programs$ 601,15323.00%$ 2,429,42866.84%$ 3,030,58148.51%
General & Administartive Expenses$ 514,37319.68%$ 363,46210.00%$ 877,83514.05%
Salaries & Benefits$ 1,497,82357.31%$ 660,00018.16%$ 2,157,82434.54%
Contingency Fund$ - -$ 181,7315.00% 181,7312.91%
Total Expenses$ 2,613,349100.00%$ 3,634,621100.00%$ 6,247,971100.00%
Net Income$ - -$ -$ - -
Santa Monica Convention Visitors Bureau
Proposed Budget
For the Fiscal Year Ending June 30, 2015
Budget
FYE 2015
City ContractTMDTotal Budget
Revenues
City Contract Revenue$ 2,545,38195.14%$ 2,545,38136.65%
Estimated TMD Revenue0.00%$ 4,270,580100.00% 4,270,58061.48%
Other Revenue 130,0504.86%0.00% 130,0501.87%
Total Revenues$ 2,675,431100.00%$ 4,270,580100.00%$ 6,946,011100.00%
Cost of Programs
Travel Industry Sales$ 96,8033.62%$ 922,13921.59%$ 1,018,94214.67%
Marketing 270,35010.10% 1,997,85446.78% 2,268,20432.65%
Visitor Services 245,7769.19% 50,0001.17% 295,7764.26%
Total Cost of Programs$ 612,92922.91%$ 2,969,99369.55%$ 3,582,92251.58%
General & Administartive Expenses$ 527,23319.71%$ 427,05810.00%$ 954,29113.74%
Salaries & Benefits$ 1,535,26957.38%$ 660,00015.45%$ 2,195,26931.60%
Contingency Fund 0.00%$ 213,5295.00%$ 213,5293.07%
Total Expenses$ 2,675,431100.00%$ 4,270,580100.00%$ 6,946,011100.00%
Net Income$ -0.00%$ -0.00%$ -0.00%
Santa Monica Convention Visitors Bureau
Proposed Budget
For the Fiscal Year Ending June 30, 2014
BudgetBudgetBudget
FYE 2012FYE 2013FYE 2014
City ContractTMDTotal Budget
Revenues
City Contract Revenue$ 2,500,23894.91%$ 2,562,74495.21%$ 2,483,29995.02%$ 2,483,29939.75%
Estimated TMD Revenue$ 3,634,621100.00% 3,634,62158.17%
Other Revenue 133,9995.09% 129,0504.79% 130,0504.98% 130,0502.08%
Total Revenues$ 2,634,237100.00%$ 2,691,794100.00%$ 2,613,349100.00%$ 3,634,621100.00%$ 6,247,970100.00%
Cost of Programs
Travel Industry Sales$ 167,0006.34%$ 175,0006.50%$ 94,4423.61%$ 751,42820.67%$ 845,87013.54%
Marketing 336,41812.77% 292,20010.86% 263,75510.09% 1,628,00044.79% 1,891,75530.28%
Visitor Services 171,8486.52% 141,4945.26% 242,9569.30% 50,0001.38% 292,9564.69%
Total Cost of Programs$ 675,26625.63%$ 608,69422.61%$ 601,15323.00%$ 2,429,42866.84%$ 3,030,58148.51%
General & Administartive Expenses$ 522,75219.84%$ 540,70020.09%$ 514,37319.68%$ 363,46210.00%$ 877,83514.05%
Salaries & Benefits$ 1,436,21954.52%$ 1,542,40057.30%$ 1,497,82357.31%$ 660,00018.16%$ 2,157,82434.54%
Contingency Fund - -$ - -$ 181,7315.00% 181,7312.91%
Total Expenses$ 2,634,237100.00%$ 2,691,794100.00%$ 2,613,349100.00%$ 3,634,621100.00%$ 6,247,971100.00%
Net Income$ - -$ - -$ - -$ -$ - -
Santa Monica Convention Visitors Bureau
Proposed Budget
For the Fiscal Year Ending June 30, 2015
BudgetBudgetBudget
FYE 2013FYE 2014FYE 2015
City ContractTMDTotal Budget
Revenues
City Contract Revenue$ 2,562,74495.21%$ 2,483,29939.75%$ 2,545,38195.14%$ 2,545,38136.65%
Estimated TMD Revenue 3,634,62158.17%0.00%$ 4,270,580100.00% 4,270,58061.48%
Other Revenue 129,0504.79% 130,0502.08% 130,0504.86%0.00% 130,050 1.87%
Total Revenues$ 2,691,794100.00%$ 6,247,970100.00%$ 2,675,431100.00%$ 4,270,580100.00%$ 6,946,011100.00%
Cost of Programs
Travel Industry Sales$ 175,000 6.50%$ 845,870 13.54%$ 96,8033.62%$ 922,13921.59%$ 1,018,94214.67%
Marketing 292,20010.86% 1,891,75530.28% 270,35010.10% 1,997,85446.78% 2,268,20432.65%
Visitor Services 141,4945.26% 292,9564.69% 245,7769.19% 50,0001.17% 295,776 4.26%
Total Cost of Programs$ 608,694 22.61%$ 3,030,58148.51%$ 612,929 22.91%$ 2,969,99369.55%$ 3,582,92251.58%
General & Administartive Expenses$ 540,700 20.09%$ 877,835 14.05%$ 527,233 19.71%$ 427,05810.00%$ 954,29113.74%
Salaries & Benefits$ 1,542,40057.30%$ 2,157,82434.54%$ 1,535,26957.38%$ 660,00015.45%$ 2,195,26931.60%
Contingency Fund 0.00% 181,7312.91%0.00%$ 213,5295.00%$ 213,5293.07%
Total Expenses$ 2,691,794100.00%$ 6,247,971100.00%$ 2,675,431100.00%$ 4,270,580100.00%$ 6,946,011100.00%
Net Income$ - -$ - -$ - -$ - -$ - -
Total Estimated Collections
Calendar Year 2013 $3,268,190.59
15% Contingency $490,228.59
Calendar year Contingency Included in
-$84,520.52
FYE2014 Budget
Total Amount of FYE2013 Collections
Allocated to Contingency
$405,708.07
SANTA MONICA CONVENTION & VISITORS BUREAU
BOARD of DIRECTORS MEETING
Wednesday, June 12, 2013
4:00PM - 5:00PM
Fairmont Miramar Hotel & Bungalow à Wilshire I
Board Members Present: Desser, Chacker, Jarow, King, Lewkowicz, and OÈConnor,
Board Members Absent: Day, Gould, Lunetta, Salo
TMD Committee Members Present: Farzam, Jonas, Viramontes, and Syme
Staff Present: Baker, Jalali, Kerns, and Thomas
Call to Order: Chair Jarow called the meeting to order at 4:15 PM
Chair Report:
Chair Jarow presented the officer slate for the executive committee. Jeff Jarow
(Chairmen), Ellis OÈConnor (Vice Chairmen), Raphael Lunetta (Secretary), Greogry Day
(Treasurer). Lewcowicz moved to approve, Desser seconded. Motion passes
unanimously.
Chair Jarow reported that the SMCVB is in negotiations for a new building lease. Chair
th
Jarow also informed the board that SMCVB will be participating in the Main Street 4 of
July Parade again this year.
City Manager Report:
Rod Gould, City Manager, was absent from the meeting.
Board Meeting Minutes:
Secretary Lewkowicz presented the May 2013 Board meeting minutes. OÈConnor
moved to approve and Desser seconded. Motion passed unanimously.
Financials:
In Treasurer LunettaÈs absense Janie Thomas, Accounting Coordinator at SMCVB,
presented May 2013 financials. Lewkowicz moved to accept and OÈConnor seconded.
Motion passes unanimously.
Staff Reports:
Baker reviewed the key initiatives for SMCVB 2-Year operational plan that was
constructed form the strategic planning process.
Thomas presented the 2013/2014 and 2014/2015 CVB and TMD budgets. Lewkowicz
moved to accept, Desser seconded. Motion passed unanimously
Adjournment:
There being no further business, Chair Jarow adjourned meeting at 5:00 PM.
th
PKF Consulting USA, a Subsidiary of CBRE, Inc. | 400 S. Hope Street, 25 Floor | Los Angeles, CA 90071
TEL: 213-680-0900 | FAX: 213-613-3005 | www.pkfc.com
Ms. Misti Kerns
Santa Monica Convention & Visitors Bureau Page | 2
1
2
1
It should be noted that the Cottage Santa Monica was not open for a full year in 2014. By statute, the TMD rate
categorization is solely based on the previous yearÈs average daily rate; however, in the case of this particular
hotel the TMD tier rate is based on it published rate (well above $300) for the 2015 assessment year.
2
Hotel did not respond to requests by PKF Consulting and the Santa Monica Convention & Visitors Bureau.
Ms. Misti Kerns
Santa Monica Convention & Visitors Bureau Page | 3
Santa Monica Convention Visitors Bureau
Revised - Budget
For the Fiscal Year Ending June 30, 2016
Budget
FYE 6/30/16
City ContractTMDShuttleTotal Budget
Revenues
City Contract Revenue$ 2,591,19894.51%$ -0.00%$ -0.00%$ 2,591,19835.02%
Estimated TMD Revenue -0.00% 3,990,436100.00% -0.00%$ 3,990,43653.93%
Bank Interest, Partner Fee, IM -0.00% -0.00% 243,37527.36%$ 20,9500.28%
Shuttle Revenue -0.00% - 646,04972.64%$ 646,0498.73%
Retail Revenue 150,545 5.49% - 0.00% - 0.00% 150,545 2.03%
Total Revenues$ 2,741,743100.00%$ 3,990,436100.00%$ 889,424100.00%$ 7,399,178100.00%
Cost of Programs
Travel Industry Sales$ 111,4774.07%$ 1,374,64634.45%$ - 0.00%$ 1,486,12320.08%
Marketing 234,433 8.55%$ 1,323,69333.17% 15,0001.69% 1,558,12621.06%
Visitor Services 133,878 4.88%$ 99,9372.50% - 0.00% 233,815 3.16%
Shuttle Program -0.00% - 0.00% 240,00026.98% 240,000 3.24%
Total Cost of Programs$ 479,78817.50%$ 2,798,27670.12%$ 255,00028.67%$ 3,533,06447.75%
General & Administrative$ 639,44923.32%$ 330,8858.29%$ 30,0003.37%$ 1,000,33413.52%
Salaries & Benefits$ 1,587,50657.90%$ 611,75315.33%$ 9,5001.07%$ 2,208,75929.85%
Contingency Fund$ -0.00%$ 199,5225.00%0.00%$ 199,5222.70%
Fixed Asset$ 35,0001.28%$ 50,0001.25%$ - 0.00%$ 85,0001.15%
Total Expenses$ 2,741,743100.00%$ 3,990,436100.00%$ 294,50033.11%$ 7,026,67994.97%
Net Income$ (0)0.00%$ 00.00%$ 594,92414.91%$ 372,4995.03%
/Users/executive/Documents/TMD ANNUAL PLANS/2015-2016 FINAL BUDGET.xlsFor Internal Use Only
SANTA MONICA CONVENTION & VISITORS BUREAU (SMCVB)
Special Annual Meeting of the Board of Directors and
Tourism Marketing District Committee Meeting Minutes
Fairmont Miramar Hotel
Wedesday, June 10, 2015
3:30-4:30 PM
Board Members Present: Ellis OÈConnor (Chair), Raphael Lunetta (Vice Chair), Nicole
Flynn (Secretary), RoseMary Regalbuto, Matthew Mornick, Don Camacho (Treasurer),
Gregory Day, Richard Chacker, Paul Leclerc and Albin Gielicz.
Board Members Absent: Jeff King.
TMD Members Present: Juan Viramontes (Chair), Georgian Hotel; Rebecca Huetter
(Vice Chair), ETC Hotels; Stephen Sowards (Secretary/Treasurer), Le Meridien Delfina
Santa Monica; Matthew Lehman, Fairmont Miramar Hotel and Bungalows; Sean
Steenson, Loews Hotel; Angela Rogers, Hotel Carmel; Daniel Gregory, Ocean Lodge;
Karen Dailey, Viceroy; and Rebecca Kirisits, Wyndham Santa Monica at the Pier.
TMD Members Absent: None.
Staff Present: Misti Kerns, Richard Peterson, Kim Sidoriak, OÈMark Holmes and Evan
Edwards.
Call to Order: Chair OÈConnor called the annual meeting to order at 3:40pm.
Meeting Minutes: Flynn presented meeting minutes from the May 13, 2015 CVB board
meeting for approval. A motion to approve the minutes was offered by Camacho and
seconded by Regalbuto; the motion passed unanimously with SMCVB Board Member
Jeff King absent.
Financials: CVB Treasurer Camacho presented the financials from April 2015 and
reviewed the details of the financial memo. A motion to approve the April 2015 financials
was offered by Regalbuto and seconded by Day; the motion passed unanimously with
SMCVB Board Member Jeff King absent.
2015/2016 and 2016/2017 Budgets: Camacho presented the FY budget for 2015/2016
and 2016/2017 and reviewed details of income and projected expenses. A motion to
approve the 2015/2016 and 2016/2017 FY budgets was offered by Regalbuto and
seconded by Gielicz; the motion passed unanimously with SMCVB Board Member Jeff
King absent. A motion to approve by the TMD Committee was presented by Viramontes
and seconded by Matthews with no members absent.
Staff Updates: Sidoriak provided an overview of the updated five (5) year strategic plan.
Peterson then reviewed the initiatives with a summary overview. Kerns noted that as in
past years staff wouldprovide an executive summary and more in depth review of
programs at upcoming board meetings. She then thanked the Board and TMD
Committee for their support, hard work and dedication.
EOC Nominations: OÈConnor opened the agenda item calling for any additional
nominations of the executive committee officers for the board of directors. A motion to
APPROVED BY NICOLE FLYNN
accept the current EOC as slated with Ellis OÈConnor as Chairman, Raphael Lunetta as
Vice Chairman, Don Camacho as Treasurer and Nicole Flynn as Secretary was offered
by Regalbuto and seconded by Day; the motion passed unanimously with SMCVB
Board Member Jeff King absent.
Organization Name Change: OÈConnor read the resolution pertaining to the articles of
incorporation for approval of the name change from Santa Monica Convention & Visitors
Bureau to Santa Monica Travel & Tourism. A motion to accept the name change was
offered by Regalbuto and seconded by Chacker; the motion passed unanimously with
SMCVB Board Member Jeff King absent.
For the Good of the Order: TMD Committee Member Daniel Gregory started a
discussion regarding the homeless population increase specifically near the Santa
Monica Pier adjacent to Tongva Park. Gregory handed out a presentation he created
with photo examples of his concerns. Mornick noted that city staff and human services
are working diligently with the police department to address. Kerns added that due to
increased patrolling by the City of Los Angeles in outlying areas maybe a factor in the
Santa Monica homeless increase. The conversation continued with Kerns offering a
discussion with the Santa Monica Police Department and Homeless outreach during the
next GM and BOD meetings, respectively.
City Manager Report: Mornick gave an update on Metro link projected rider numbers
and scheduled testing. He then updated everyone on the hiring of Rick Cole as new City
th.
Manager and he starts on June 29
Adjournment: Being no further business, Chair OÈConnor adjourned meeting at 4:26pm.
APPROVED BY NICOLE FLYNN
Revised
COMMERCIAL REAL ESTATE SERVICES
Bruce Baltin
CBRE, Inc.
Managing Director Valuation & Advisory Services
Floor
400 South Hope Street, 25 th
Los Angeles, CA 90071
+1 213 613 3370 Office
Sent via email: mkerns@santamonica.com
Bruce.Baltin@cbre.com
www.cbrehotels.com
NO HARD COPY TO FOLLOW
March31, 2016
Ms. Misti Kerns CMP CDME
President/CEO
Santa Monica Travel & Tourism
2427 Main Street
Santa Monica, California 90405
Dear Ms. Kerns:
In accordance with our agreement, we have prepared a categorization of Santa
Monica hotels based on their year-end 2015 average daily rate tier for the purpose
of determining the appropriate Tourism Marketing District (TMD) assessment for the
2016 calendar year.
The City of Santa Monica established a TMD, and as part of the TMD,hotels are
assessed a fee per room night sold commensurate with their average daily rate
(ADR) positioning. Per our discussions with you and our understanding of the Santa
Monica Tourism Marketing District Management District Plan, hotels within Santa
Monica and subject to the TMD assessment are specifically categorized as follows
for the 2016 assessment year:
Hotels with an annual average rate of $300.00 or more would be assessed
at a rate of $4.75 per hotel room night sold.
Hotels with an annual average rate of between $200.00 and $299.99 would
be assessed at a rate of $3.75 per hotel room night sold.
Hotels with an annual average rate of between $100.00 and $199.99 would
be assessed at a rate of $2.75 per hotel room night sold.
Ms. Misti Kerns
Santa Monica Travel & TourismPage | 2
Hotels with an annual average rate below $100.00 are not subject to any
assessment.
Based on the above definitions, we have determined the appropriate categorization
of each of the qualifying Santa Monica lodging establishments. Our methodology
consisted of collecting information from the individual hotels and transient
occupancy tax data from the City of Santa Monica Finance Department. We then
cross referenced the two sources of data to ensure that we had accurate figures.
Our conclusions by assessment tier are as follows:
Hotels with a 2015 ADR of $300.00+
Fairmont Miramar Hotel & Bungalows
Hotel Casa del Mar
JW Marriott Santa Monica Le Merigot
Loews Santa Monica Beach Hotel
Oceana Beach Club Hotel
Palihouse – Santa Monica (former Embassy Hotel)
Shangri-La Hotel
Shore Hotel
Shutters on the Beach
The Cottage Santa Monica
Viceroy Santa Monica
Hotels with a 2015 ADR of between $200.00 and $299.99
The Ambrose Hotel
Bayside Hotel
Cal Mar Hotel Suites
Courtyard by Marriott
1
Doubletree Suites by Hilton Hotel
The Georgian Hotel
Hampton Inn & Suites
1
Hotel California
The Huntley Hotel
Wyndham (former Holiday Inn)
Ocean View Hotel
Le Meridien Delfina (former Sheraton)
Hotels with a 2015 ADR of between $100.00 and $199.99
Best Western Gateway
Comfort Inn
Days Inn
1
It should be noted that the Hampton Inn & Suites and Courtyard Hotel are not anticipated to open until Juneof this
year. By statute, the TMD rate categorization is solely based on the previous year’s average daily rate; however,
in the case of these particular hotels the TMD tier rate is based on our understanding of the anticipated rate
positioning of the under construction hotels and prior completed engagements.
Ms. Misti Kerns
Santa Monica Travel & TourismPage | 3
Hotel Carmel
Ocean Lodge
Ocean Park Inn
Rest Haven Motel
Santa Monica Motel
Sea Shore Motel
Sea View Motel
Travelodge
In addition to the above categorizations, we note that the following hotels were
determined to have an ADR below $100.00 and therefore are exempted from the
TMD assessment for the current year.
American Motel
American Youth Hostel
Holiday Motel
Ocean Park Hotel
Palm Motel
Pavilions Motel
107 Broadway Lofts and Suites
The terms of our engagement are such that we have no obligation to revise this
report to reflect events or conditions that occur subsequent to the date of the
completion of our fieldwork. This report is subject to the attached statement of
Terms and Conditions.
We appreciate your cooperation during the course of our engagement and would
be pleased to hear from you if we could be of further assistance in the interpretation
of our findings.
Sincerely,
CBRE Hotels
Bruce Baltin
Managing Director
Addendum
TERMS AND CONDITIONS
TERMS AND CONDITIONS
1.The Terms and Conditions herein are part of an agreement for consulting services (the “Agreement” ) between
CBRE, Inc. (the “Consultant”) and the client signing this Agreement, and for whom the consulting services will be
performed (the “Client”), and shall be deemed a part of such Agreement as though set forth in full therein. The
Agreement shall be governed by the laws of the state where the consulting office is located for the Consultant
executing this Agreement.
2.Client shall be responsible for the payment of all fees stipulated in the Agreement. Payment of the consulting fee
and preparation of an consulting report (the “Consulting Report, or the “report”) are not contingent upon any
predetermined value or on an action or event resulting from the analyses, opinions, conclusions, or use of the
Consulting Report. Final payment is due as provided in the Proposal Specifications Section of this Agreement. If a
draft report is requested, the fee is considered earned upon delivery of the draft report. It is understood that the
Client may cancel this assignment in writing at any time prior to delivery of the completed report. In such event,
the Client is obligated only for the prorated share of the fee based upon the work completed and expenses
incurred (including travel expenses to and from the job site), with a minimum charge of $500. Additional copies of
the Consulting Reports are available at a cost of $250 per original color copy and $100 per photocopy (black and
white), plus shipping fees of $30 per report.
3.If Consultant is subpoenaed or ordered to give testimony, produce documents or information, or otherwise
required or requested by Client or a third party to participate in meetings, phone calls, conferences, litigation or
other legal proceedings (including preparation for such proceedings) because of, connected with or in any way
pertaining to this engagement, the Consulting Report, the Consultant’s expertise, or the Property, Client shall pay
Consultant’s additional costs and expenses, including but not limited to Consultant’s attorneys’ fees, and
additional time incurred by Consultant based on Consultant’s then-prevailing hourly rates and related fees. Such
charges include and pertain to, but are not limited to, time spent in preparing for and providing court room
testimony, depositions, travel time, mileage and related travel expenses, waiting time, document review and
production, and preparation time (excluding preparation of the Consulting Report), meeting participation, and
Consultant’s other related commitment of time and expertise. Hourly charges and other fees for such participation
will be provided upon request. In the event Client requests additional consulting services beyond the scope and
purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related
expenses, whether or not the completed report has been delivered to Client at the time of such request.
4.Consultant shall have the right to terminate this Agreement at any time for cause effective immediately upon
written notice to Client on the occurrence of fraud or the willful misconduct of Client, its employees or agents, or
without cause upon 30 days written notice.
5.In the event Client fails to make payments when due then, from the date due until paid, the amount due and
payable shall bear interest at the maximum rate permitted in the state where the office is located for the
Consultant executing the Agreement. In the event either party institutes legal action against the other to enforce its
rights under this Agreement, the prevailing party shall be entitled to recover its reasonable attorney’s fees and
expenses. Each party waives the right to a trial by jury in any action arising under this Agreement.
6.Consultant assumes there are no major or significant items or issues affecting the Property that would require the
expertise of a professional building contractor, engineer, or environmental consultant for Consultant to prepare a
valid report. Client acknowledges that such additional expertise is not covered in the Consulting fee and agrees
that, if such additional expertise is required, it shall be provided by others at the discretion and direction of the
Client, and solely at Client’s additional cost and expense.
7.In the event of any dispute between Client and Consultant relating to this Agreement, or Consultant's or Client's
performance hereunder, Consultant and Client agree that such dispute shall be resolved by means of binding
arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, and
judgment upon the award rendered by an arbitrator may be entered in any court of competent jurisdiction.
Depositions may be taken and other discovery obtained during such arbitration proceedings to the same extent as
authorized in civil judicial proceedings in the state where the office of the Consultant executing this Agreement is
located. The arbitrator shall be limited to awarding compensatory damages and shall have no authority to award
punitive, exemplary or similar damages. The prevailing party in the arbitration proceeding shall be entitled to
recover its expenses from the losing party, including costs of the arbitration proceeding, and reasonable attorney's
fees. Client acknowledges that Consultant is being retained hereunder as an independent contractor to perform
the services described herein and nothing in this Agreement shall be deemed to create any other relationship
between Client and Consultant. This engagement shall be deemed concluded and the services hereunder
completed upon delivery to Client of the Consulting Report discussed herein.
8.All statements of fact in the report which are used as the basis of the Consultant's analyses, opinions, and
conclusions will be true and correct to Consultant's actual knowledge and belief. Consultant does not make any
representation or warranty, express or implied, as to the accuracy or completeness of the information or the
condition of the Property furnished to Consultant by Client or others. The conclusions and any permitted reliance
on and use of the Consulting Report shall be subject to the assumptions, limitations, and qualifying statements
contained in the report.
TERMS AND CONDITIONS
(continued)
9.Consultant shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or
subsoil conditions, engineering, or other similar technical matters. The report will not constitute a survey of the
Property analyzed.
10.Client shall provide Consultant with such materials with respect to the assignment as are requested by Consultant
and in the possession or under the control of Client. Client shall provide Consultant with sufficient access to the
Property to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary.
11.The data gathered in the course of the assignment (except data furnished by Client) and the report prepared
pursuant to the Agreement are, and will remain, the property of Consultant. With respect to data provided by
Client, Consultant shall not violate the confidential nature of the Consultant-Client relationship by improperly
disclosing any proprietary information furnished to Consultant. Notwithstanding the foregoing, Consultant is
authorized by Client to disclose all or any portion of the report and related data as may be required by statute,
government regulation, legal process, or judicial decree, including to appropriate representatives of the Appraisal
Institute if such disclosure is required to enable Consultant to comply with the Bylaws and Regulations of such
Institute as now or hereafter in effect.
12.Unless specifically noted, in preparing the Consulting Report the Consultant will not be considering the possible
existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or
underground storage tanks (collectively, “Hazardous Material) on or affecting the Property, or the cost of
encapsulation or removal thereof. Further, Client represents that there is no major or significant deferred
maintenance of the Property that would require the expertise of a professional cost estimator or contractor. If such
repairs are needed, the estimates are to be prepared by others, at Client’s discretion and direction, and are not
covered as part of the Consulting fee.
13.In the event Client intends to use the Consulting Report in connection with a tax matter, Client acknowledges that
Consultant provides no warranty, representation or prediction as to the outcome of such tax matter. Client
understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any
other federal, state or local taxing authority) may disagree with or reject the Consulting Report or otherwise
disagree with Client’s tax position, and further understands and acknowledges that the taxing authority may seek
to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Consulting
Report. Client agrees that Consultant shall have no responsibility or liability to Client or any other party for any
such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from
Consultant relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorneys’ fees, costs
or other expenses relating to Client’s tax matters.
14.Consultant shall have no liability with respect to any loss, damage, claim or expense incurred by or asserted
against Client arising out of, based upon or resulting from Client’s failure to provide accurate or complete
information or documentation pertaining to an assignment ordered under or in connection with this Agreement,
including Client’s failure, or the failure of any of Client’s agents, to provide a complete copy of the Consulting
Report to any third party.
LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW, OR SECTION 17 IF
APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATE, OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER, WHETHER BASED IN CONTRACT,
WARRANTY, INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, FOR ANY SPECIAL,
CONSEQUENTIAL, PUNITIVE, INCIDENTAL OR INDIRECT DAMAGES AND AGGREGATE DAMAGES IN
CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE FEES
REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO CONSULTANT
UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10,000). THIS LIABILITY LIMITATION SHALL NOT
APPLY IN THE EVENT OF A FINAL FINDING BY AN ARBITRATOR OR A COURT OF COMPETENT JURISDICTION
THAT SUCH LIABILITY IS THE RESULT OF A PARTY’S FRAUD OR WILLFUL MISCONDUCT.
15.Client shall not disseminate, distribute, make available or otherwise provide any Consulting Report prepared
hereunder to any third party (including without limitation, incorporating or referencing the Consulting Report , in
whole or in part, in any offering or other material intended for review by other parties) except to (i) any third party
expressly acknowledged in a signed writing by Consultant as an “Intended User” of the Consulting Report
provided that either Consultant has received an acceptable release from such third party with respect to such
Consulting Report or Client provides acceptable indemnity protections to Consultant against any claims resulting
from the distribution of the Consulting Report to such third party, (ii) any third party service provider (including
rating agencies and Client’s auditors) using the Consulting Report in the course of providing services for the sole
benefit of Client, or (iii) as required by statute, government regulation, legal process, or judicial decree. In the
event Consultant consents, in writing, to Client incorporating or referencing the Consulting Report in any offering
or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such
materials available to any such parties unless and until Client has provided Consultant with complete copies of
such materials and Consultant has approved all such materials in writing. Client shall not modify any such
TERMS AND CONDITIONS
(continued)
materials once approved by Consultant. In the absence of satisfying the conditions of this paragraph with respect
to a party who is not designated as an Intended User, in no event shall the receipt of an Consulting Report by such
party extend any right to the party to use and rely on such report, and Consultant shall have no liability for such
unauthorized use and reliance on any Consulting Report. In the event Client breaches the provisions of this
paragraph, Client shall indemnify, defend and hold Consultant, and its affiliates and their officers, directors,
employees, contractors, agents and other representatives (Consultant and each of the foregoing an “Indemnified
Party” and collectively the “Indemnified Parties”), fully harmless from and against all losses, liabilities, damages
and expenses (collectively, “Damages”) claimed against, sustained or incurred by any Indemnified Party arising out
of or in connection with such breach, regardless of any negligence on the part of any Indemnified Party in
preparing the Consulting Report.
16.In the event Client incorporates or references the Consulting Report, in whole or in part, in any offering or other
material intended for review by other parties, Client shall indemnify, defend and hold each of the Indemnified
Parties harmless from and against any Damages in connection with (i) any transaction contemplated by this
Agreement or in connection with the consulting or the engagement of or performance of services by any
Indemnified Party hereunder, (ii) any actual or alleged untrue statement of a material fact, or the actual or alleged
failure to state a material fact necessary to make a statement not misleading in light of the circumstances under
which it was made with respect to all information furnished to any Indemnified Party or made available to a
prospective party to a transaction, or (iii) an actual or alleged violation of applicable law by Client (including,
without limitation, securities laws) or the negligent or intentional acts or omissions of Client (including the failure to
perform any duty imposed by law); and will reimburse each Indemnified Party for all reasonable fees and
expenses (including fees and expenses of counsel) (collectively, “Expenses”) as incurred in connection with
investigating, preparing, pursuing or defending any threatened or pending claim, action, proceeding or
investigation (collectively, “Proceedings”) arising therefrom, and regardless of whether such Indemnified Party is a
formal party to such Proceeding. Client agrees not to enter into any waiver, release or settlement of any
Proceeding (whether or not any Indemnified Party is a formal party to such Proceeding) without the prior written
consent of Consultant (which consent will not be unreasonably withheld or delayed) unless such waiver, release or
settlement includes an unconditional release of each Indemnified Party from all liability arising out of such
Proceeding.
17.Time Period for Legal Action. Unless the time period is shorter under applicable law, except in connection with
paragraphs 16 and 17 above, Consultant and Client agree that any legal action or lawsuit by one party against
the other party or its affiliates, officers, directors, employees, contractors, agents, or other representatives, whether
based in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, relating to (a) this
Agreement or the Consulting Report, (b) any services or studies under this Agreement or (c) any acts or conduct
relating to such services or studies, shall be filed within two (2) years from the date of delivery to Client of the
Consulting Report to which the claims or causes of action in the legal action or lawsuit relate. The time period
stated in this section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of
the underlying claims, causes of action or damages.
SANTA MONICA TOURISM MARKETING
DISTRICT
MANAGEMENT DISTRICT PLAN
Formed pursuant to the Property and Business Improvement District Act of 1994
(Streets and Highways Code ¤36600 et seq.)
Submitted to the
Santa Monica Convention and Visitors Bureau
September 6, 2012
by
SANTA MONICA TOURISM MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
TABLE OF CONTENTS
I.INTRODUCTION AND OVERVIEW............................................................................................2
II.WHY A TOURISM MARKETING DISTRICT FOR SANTA MONICA?...............................4
III.BACKGROUND....................................................................................................................................5
IV. BOUNDARY..........................................................................................................................................6
V.SERVICE PLAN AND BUDGET......................................................................................................7
A.Assessment..........................................................................................................................7
B.Determination of Specific Benefit.......................................................................................7
C.Time and Manner for Collecting Assessments....................................................................8
D.Penalties and Interest...........................................................................................................8
E.Service Plan Budget Summary............................................................................................8
F.Annual Service Plan............................................................................................................8
G.Adjustments.........................................................................................................................9
VI.GOVERNANCE...................................................................................................................................10
A.OwnersÈ Association..........................................................................................................10
B.Brown Act and California Public Records Act Compliance.............................................10
C.Annual Report....................................................................................................................10
APPENDIX 1 Ã THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF
1994..........................................................................................................................................................11
APPENDIX 2 Ã LODGING BUSINESSES TO BE ASSESSED WITHIN THE SMTMD..............25
Santa Monica Tourism Marketing District Management District Plan Page 1
I. INTRODUCTION AND OVERVIEW
Developed by Santa Monica hotels and the Santa Monica Convention and Visitors Bureau, the Santa
Monica Tourism Marketing District (SMTMD) is a benefit assessment district proposed to help
fund marketing and sales promotion efforts for Santa Monica lodging businesses. This approach
has been used successfully in other destination areas throughout the country to improve tourism and
drive additional room nights.
Location: The proposed SMTMD includes all lodging businesses located within the boundaries
of the City of Santa Monica with an average daily rate of $100 and above.
Services: Marketing and sales promotions to increase tourism and to market Santa Monica
lodging businesses as tourist, meeting and event destinations.
Budget: The total assessment collected in year one is anticipated to be approximately
$3,204,677.74. The assessment funds are intended to supplement, not supplant,
existing funding for marketing programs.
Cost: The assessment is a fixed amount per occupied room per night. Based on the
benefit received, assessments will not be collected on stays of more than thirty (30)
consecutive days, nor on stays which are pursuant to contracts or written agreements
which were executed prior to January 1, 2013, regardless of the date of the stay. The
amount charged per occupied room per night is based on the businessesÈ average
daily rate based on the previous yearÈs performance. Assessment rates are:
Average Daily Assessment Per
Rate Room Per Night
$100 - $200 $2.00
$200 - $300 $3.00
Over $300 $4.00
Assessment rates may be subject to an annual increase of no more than $0.25 per
year. The maximum assessment rate for each category each year is:
Year $100 - $200 $200 - $300 Over $300
1 $ 2.00 $ 3.00 $ 4.00
2 $ 2.25 $ 3.25 $ 4.25
3 $ 2.50 $ 3.50 $ 4.50
4 $ 2.75 $ 3.75 $ 4.75
5 $ 3.00 $ 4.00 $ 5.00
Formation: TMD formation requires submittal of petitions from lodging businesses representing
more than 50% of the total annual assessment followed by a City Council hearing
Santa Monica Tourism Marketing District Management District Plan Page 2
and an opportunity for a written protest. The assessed lodging business owners will
receive notice of the public hearing by mail. If there is a majority written protest, the
TMD will not be formed.
Duration: The proposed SMTMD will have a five-year life, beginning January 1, 2013 and
ending December 31, 2017. Once per year beginning on the anniversary of the
formation of the district there is a 30-day period in which owners paying more than
50% of the assessment may protest and terminate the district.
Santa Monica Tourism Marketing District Management District Plan Page 3
II. WHY A TOURISM MARKETING DISTRICT FOR SANTA
MONICA?
There are several reasons why now is the right time to form a TMD in Santa Monica; the most
compelling reasons are below
1.Stable Funding for Tourism Promotion
The SMTMD will provide a stable source of funding for consistent tourism promotion
efforts in partnership with the City of Santa Monica. The SMTMD funds are intended to
supplement, not supplant, existing funding for marketing programs. Should existing levels
of funding for marketing programs be reduced, it is the intention of lodging businesses to
petition to disestablish the SMTMD.
2.An Opportunity for Increasing City Tax Revenues
As lodging business occupancy, rates, and revenue per available room (RevPar) increase, so
too will the CityÈs TOT revenue. An increase in visitors from our target audience will also
produce an increase in sales tax revenues from overall tourist spending. This represents a
substantial return to the City.
3.Remain Competitive by Growing Market Share of Visitors
The funding will ensure that more adequate financing exists for the investment required to
help target and increase the number overnight visitors consuming rooms at assessed hotels.
It will allow further implementation of strategies and programs in currently producing
markets and build emerging international markets.
Santa Monica Tourism Marketing District Management District Plan Page 4
III. BACKGROUND
Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the
market-based promotion of tourism districts. TMDs allow lodging and tourism-related business
owners to organize their efforts to increase tourism. Tourism-related business owners within the
district fund a TMD, and those funds are used to provide services that the businesses desire and that
benefit the lodging businesses within the District.
Tourism Marketing District services may include, but are not limited to:
Marketing of the Destination
Tourism Promotion Activities
Sales Lead Generation
Visitor services to increase room night consumption
In California, Tourism Marketing Districts are formed pursuant to the Property and Business
Improvement District Law of 1994 (PBID Law). This law allows for the creation of a special
benefit assessment district to raise funds within a specific geographic area.
The key difference between
TMDs and other special benefit assessment districts is that funds raised are returned to the private non-profit
corporation governing the district.
There are many benefits to Tourism Marketing Districts:
Designed, created and governed by those who will pay the assessment;
Provide a stable funding source for tourism promotion;
Customized to fit the needs of each destination;
Allow for a wide range of services, including those listed above; and
Funds cannot be diverted for other government programs.
The Property and Business Improvement District Law of 1994 is provided in Appendix 1 of this
document.
Santa Monica Tourism Marketing District Management District Plan Page 5
IV. BOUNDARY
The SMTMD will include all lodging businesses, existing and in the future, available for public
occupancy within the boundaries of the City of Santa Monica.
The boundary currently includes 31 lodging businesses. Please see the map below. A complete
listing of lodging businesses within the proposed SMTMD can be found on Appendix 2 of this Plan.
After the TMD is formed, the TMD hotel committee intends to research the feasibility of expanding
the TMD to include businesses other than hotels.
Santa Monica Tourism Marketing District Management District Plan Page 6
V. SERVICE PLAN AND BUDGET
A.Assessment
The assessment is a fixed amount per occupied room per night. Based on the benefit received,
assessments will not be collected on stays of more than thirty (30) consecutive days, nor on stays
which are pursuant to contracts or written agreements which were executed prior to January 1, 2013,
regardless of the date of the stay. The amount charged per occupied room per night is based on the
businessesÈ average daily rate based on the previous yearÈs performance. Assessment rates are:
Average Daily Assessment Per
Rate Room Per Night
$100 - $200 $2.00
$200 - $300 $3.00
Over $300 $4.00
Assessment rates may be subject to an annual increase of no more than $0.25 per year. The
maximum assessment rate for each category each year is:
Year $100 - $200 $200 - $300 Over $300
1 $ 2.00 $ 3.00 $ 4.00
2 $ 2.25 $ 3.25 $ 4.25
3 $ 2.50 $ 3.50 $ 4.50
4 $ 2.75 $ 3.75 $ 4.75
5 $ 3.00 $ 4.00 $ 5.00
Bonds will not be issued.
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. The assessment shall be described as the
ÅTourism Marketing District AssessmentÆ or ÅTMD AssessmentÆ on the guestÈs documentation.
B.Determination of Specific Benefit
State law requires that assessment funds be expended on a specific benefit conferred directly to the
payors that is not provided to those not charged, and which does not exceed the reasonable cost to the
City of conferring the benefit.
The specific benefit the district will provide to assessed lodging businesses, and will not provide to non-
assessed lodging businesses, is room night sales. The programs and services provided with the district
funds will be designed specifically to drive room night sales at assessed lodging businesses. Only
assessed lodging businesses will be featured in marketing materials, receive sales leads generated from
district-funded activities, be featured in advertising campaigns, and benefit from other district-funded
services. Non-assessed lodging businesses will not receive these and any other district-funded services.
Santa Monica Tourism Marketing District Management District Plan Page 7
C.Time and Manner for Collecting Assessments
The SMTMD assessment will be implemented beginning January 1, 2013 and will continue for five
years through December 31, 2017. The City of Santa Monica will be responsible for collecting the
assessment (including any delinquencies, penalties and interest) on a monthly basis, at the same time
and in the same manner as transient occupancy taxes are collected, from each lodging business
located in the boundaries of the SMTMD. The City shall take all reasonable efforts to collect the
assessments from each lodging business. The City of Santa Monica shall forward the assessments on
a quarterly or monthly basis to the Santa Monica Convention and Visitors Bureau (SMCVB) which
will have the responsibility of managing TMD programs as provided in this Management District
Plan.
D.Penalties and Interest
If any business shall fail or refuse to remit to the City the assessment due on or before the last day of
the month in which the assessment becomes due, there shall be added to the assessment a penalty of
ten percent (10%) of the amount of the assessment. If the assessment remains delinquent and
unpaid thereafter for a period of thirty days, there shall be an additional penalty of ten percent
(10%).
E.Service Plan Budget Summary
A summary of the annual service plan budget for the SMTMD is provided on the following pages.
The total five year improvement and service plan budget is projected at approximately $3,204,677.74
annually, or $16,023,388.68 through December 31, 2017.
F.Annual Service Plan
A service plan budget has been developed to deliver services throughout the District. An annual
service plan and budget will be developed and approved by the SMCVB Board. Please see the
budget below.
Santa Monica Tourism Marketing District
Annual Budget, Years One through Five
Percent of Dollar
Category
Budget Amount
Sales and Marketing
85%
$2,723,976.07
Administration
10%
$320,467.77
Contingency/Renewal
5%
$160,233.89
Total Annual Budget
100%
$3,204,677.74
Sales and Marketing
A sales and marketing program will promote Santa Monica lodging businesses as tourist and meeting
destinations. The sales and marketing program will have a central theme of promoting Santa
Monica as a desirable place to visit overnight, and may include the following activities:
Internet marketing efforts to increase awareness and optimize internet presence;
Print ads in magazines and newspapers targeted at potential visitors;
Television ads targeted at potential visitors;
Radio ads targeted at potential visitors;
Santa Monica Tourism Marketing District Management District Plan Page 8
Attendance of trade shows;
Sales blitzes;
Familiarization tours;
Research and analytics;
Translation services;
Staff to implement and support expanded marketing and promotions efforts;
External public relations firms;
Preparation and production of collateral promotional materials such as brochures, flyers and
maps;
Attendance of professional industry conferences and affiliation events;
Lead generation activities designed to attract tourists and group events to Santa Monica;
Director of Sales and General Manager meetings to plan and coordinate tourism promotion
efforts;
Education of hospitality staff on service and safety (related to alcohol and food) designed to
create a visitor experience that will bring repeat visits; and
Education of lodging business management and the ownersÈ association on marketing
strategies best suited to meet Santa MonicaÈs needs.
Administration and Operations
The administrative and operations portion of the budget shall be utilized for staffing costs, office
costs, and other general administrative costs.
Contingency/Renewal
A prudent portion of the budget will be set aside in a contingency fund, to be used for unforeseeable
costs in carrying out the sales and marketing programs. If at the expiration of the district there are
contingency funds remaining, and business owners wish to renew the district, the remaining
contingency funds may be used for renewal costs.
G.Adjustments
The annual service plan shall remain consistent with the budget herein. Although actual revenues
will fluctuate due to market conditions, the proportional allocations of the budget shall remain the
same. However, the SMCVB board shall have the authority to adjust budget allocations between the
categories by no more than fifteen percent (15%) per year.
Santa Monica Tourism Marketing District Management District Plan Page 9
VI. GOVERNANCE
A.OwnersÈ 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 OwnersÈ Association of the TMD as defined in Streets and Highways
Code ¤36614.5. The Santa Monica Convention and Visitors Bureau (Bureau) will serve as the
OwnersÈ Association for the TMD.
The Bureau shall form a new standing advisory committee, to be known as the ÅTMD hotel
committee.Æ The TMD hotel committee shall have between 4 and 9 members, of which at least
four will be representatives of assessed lodging businesses. The TMD hotel committee shall be
responsible for making recommendations to the SMCVB board regarding TMD funds and
programs.
Annually, the Bureau shall hold a joint SMCVB board and TMD hotel committee meeting which
will be open to the public. The purpose of the annual meeting will be mutual approval of the
budget and programs for TMD funds for the upcoming fiscal year.
D.Brown Act and California Public Records Act Compliance
The OwnersÈ Association is subject to government regulations relating to transparency, namely the
Ralph M. Brown Act and the California Public Records Act, designed to promote public
accountability. The OwnersÈ Association of a TMD is considered a legislative body under the Ralph
M. Brown Act (Government Code ¤54950 et seq.). Thus, meetings of the BureauÈs board to the
extent TMD business is conducted, and meetings of the TMD committee where a majority of the
members of the board are present, must be held in compliance with the public notice and other
requirements of the Brown Act. The OwnerÈs Association is also subject to the record keeping and
disclosure requirements of the California Public Records Act.
E.Annual Report
The BureauÈs board shall provide an annual report at the end of each fiscal year of operation to the
City Council pursuant to Streets and Highways Code ¤36650 (see Appendix 1).
Santa Monica Tourism Marketing District Management District Plan Page 10
APPENDIX 1 Ã THE PROPERTY AND BUSINESS IMPROVEMENT
DISTRICT LAW OF 1994
PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994
STREETS AND HIGHWAYS CODE
Division 18. Parking
*** THIS DOCUMENT IS CURRENT THROUGH 2009-2010 EXTRAORDINARY SESSIONS 1-5, ***
AND 7, AND URGENCY LEGISLATION THROUGH CH 4 OF THE 2010 REGULAR SESSION
¤ 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
The Legislature finds and declares all of the following:
Businesses located and operating within the business districts of this state's communities
(a)
are economically disadvantaged, are underutilized, and are unable to attract customers due to
inadequate facilities, services, and activities in the business districts.
It is in the public interest to promote the economic revitalization and physical
(b)
maintenance of the business districts of its cities in order to create jobs, attract new businesses,
and prevent the erosion of the business districts.
It is of particular local benefit to allow cities to fund business related improvements,
(c)
maintenance, and activities through the levy of assessments upon the businesses or real property
that benefits from those improvements.
Assessments levied for the purpose of providing improvements and promoting activities
(d)
that benefit real property or businesses are not taxes for the general benefit of a city, but are
assessments for the improvements and activities which confer special benefits upon the real
property or businesses for which the improvements and activities are provided.
¤ 36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize
cities to levy assessments within a business improvement area. 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.
Santa Monica Tourism Marketing District Management District Plan Page 11
¤ 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 in this part that conflicts with any other provision of law shall prevail over the
other provision of law.
¤ 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.
¤ 36605. \[Section repealed 2001.\]
¤ 36606. "Assessment"
"Assessment" means a levy for the purpose of acquiring, constructing, installing, or
maintaining improvements and promoting activities which will benefit the properties or
businesses located within a property and business improvement district.
¤ 36607. "Business"
"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.
Santa Monica Tourism Marketing District Management District Plan Page 12
¤ 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.
¤ 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:
Parking facilities.
(a)
Benches, booths, kiosks, display cases, pedestrian shelters and signs.
(b)
Trash receptacles and public restrooms.
(c)
Lighting and heating facilities.
(d)
Decorations.
(e)
Parks.
(f)
Fountains.
(g)
Planting areas.
(h)
Closing, opening, widening, or narrowing of existing streets.
(i)
Facilities or equipment, or both, to enhance security of persons and property within the
(j)
area.
Ramps, sidewalks, plazas, and pedestrian malls.
(k)
Rehabilitation or removal of existing structures.
(l)
¤ 36611. "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.
¤ 36612. "Property"
"Property" means real property situated within a district.
¤ 36613. "Activities"
"Activities" means, but is not limited to, all of the following:
Promotion of public events which benefit businesses or real property in the district.
(a)
Santa Monica Tourism Marketing District Management District Plan Page 13
Furnishing of music in any public place within the district.
(b)
Promotion of tourism within the district.
(c)
Marketing and economic development, including retail retention and recruitment.
(d)
Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
(e)
municipal services supplemental to those normally provided by the municipality.
Activities which benefit businesses and real property located in the district.
(f)
¤ 36614. "Management district plan"; "Plan"
"Management district plan" or "plan" means a proposal as defined in Section 36622.
¤ 36614.5. "Owners' association"
"Owners' association" means a private nonprofit entity that is under contract with a city to
administer or implement activities and improvements 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 documents relating
to activities of the district.
¤ 36615. "Property owner"; "Owner"
"Property owner" or "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. The
city council has no obligation to obtain other information as to the ownership of land, and its
determination of ownership shall be final and conclusive for the purposes of this part. Wherever
this subdivision requires the signature of the property owner, the signature of the authorized
agent of the property owner shall be sufficient.
¤ 36616. "Tenant"
"Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit,
other than an owner.
Santa Monica Tourism Marketing District Management District Plan Page 14
¤ 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.
¤ 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 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
Upon the submission of a written petition, signed by the property or business owners in
(a)
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.
The petition of property or business owners required under subdivision (a) shall include a
(b)
summary of the management district plan. That summary shall include all of the following:
A map showing the boundaries of the district.
(1)
Information specifying where the complete management district plan can be obtained.
(2)
Information specifying that the complete management district plan shall be furnished
(3)
upon request.
The resolution of intention described in subdivision (a) shall contain all of the following:
(c)
A brief description of the proposed activities and improvements, the amount of the
(1)
proposed assessment, a statement as to whether the assessment will be levied on property or
Santa Monica Tourism Marketing District Management District Plan Page 15
businesses within the district, a statement as to whether bonds will be issued, and a description of
the exterior boundaries of the proposed district. 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 and activities and the location and extent of the proposed district.
A time and place for a public hearing on the establishment of the property and business
(2)
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 contain all of the following:
A map of the district in sufficient detail to locate each parcel of property and, if
(a)
businesses are to be assessed, each business within the district.
The name of the proposed district.
(b)
A description of the boundaries of the district, including the boundaries of benefit zones,
(c)
proposed for establishment or extension in a manner sufficient to identify the affected lands and
businesses included. 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.
The improvements and activities proposed for each year of operation of the district and
(d)
the maximum cost thereof.
The total annual amount proposed to be expended for improvements, maintenance and
(e)
operations, and debt service in each year of operation of the district.
The proposed source or sources of financing, including the proposed method and basis of
(f)
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.
The time and manner of collecting the assessments.
(g)
The specific number of years in which assessments will be levied. In a new district, the
(h)
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.
The proposed time for implementation and completion of the management district plan.
(i)
Any proposed rules and regulations to be applicable to the district.
(j)
Santa Monica Tourism Marketing District Management District Plan Page 16
A list of the properties or businesses to be assessed, including the assessor's parcel
(k)
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, including operation
and maintenance. The plan may provide that all or any class or category of real property which is
exempt by law from real property taxation may nevertheless be included within the boundaries of
the district but shall not be subject to assessment on real property.
Any other item or matter required to be incorporated therein by the city council.
(l)
¤ 36623. Procedure to levy assessment
If a city council proposes to levy a new or increased property assessment, the notice and
(a)
protest and hearing procedure shall comply with Section 53753 of the Government Code.
If a city council proposes to levy a new or increased business assessment, the notice and
(b)
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. A written protest which does
not comply with this section shall not be counted in determining a majority protest. If written
protests are received from the owners of businesses in the proposed district which will pay 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.
¤ 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
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 or
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.
Santa Monica Tourism Marketing District Management District Plan Page 17
¤ 36625. Resolution of formation
If the city council, following the public hearing, decides to establish the proposed
(a)
property and business improvement district, the city council shall adopt a resolution of formation
that shall contain all of the following:
A brief description of the proposed activities and improvements, the amount of the
(1)
proposed assessment, a statement as to whether the assessment will be levied on property or
businesses within the district, a statement about whether bonds will be issued, and a description
of the exterior boundaries of the proposed district. 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 and activities and the location and extent of the proposed district.
The number, date of adoption, and title of the resolution of intention.
(2)
The time and place where the public hearing was held concerning the establishment of
(3)
the district.
A determination regarding any protests received. The city shall not establish the district
(4)
or levy assessments if a majority protest was received.
A statement that the properties or businesses in the district established by the resolution
(5)
shall be subject to any amendments to this part.
A statement that the improvements and activities to be provided in the district will be
(6)
funded by the levy of the assessments. The revenue from the levy of assessments within a district
shall not be used to provide improvements 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.
A finding that the property or businesses within the area of the property and business
(7)
improvement district will be benefited by the improvements and activities funded by the
assessments proposed to be levied.
The adoption of the resolution of formation and recordation of the notice and map
(b)
pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years
referred to in the management district plan.
¤ 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 paragraphs (1) to (8), inclusive, of subdivision (b) of Section
36625, but need not contain information about the preliminary resolution if none has been
adopted.
Santa Monica Tourism Marketing District Management District Plan Page 18
¤ 36626.5. \[Section repealed 1999.\]
¤ 36626.6. \[Section repealed 1999.\]
¤ 36626.7. \[Section repealed 1999.\]
¤ 36627. Notice and assessment diagram
Following adoption of the resolution establishing the district pursuant to Section 36625 or
36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section
3114. If the assessment is levied on businesses, the text of the recorded notice shall be modified
to reflect that the assessment will be levied on businesses, or specified categories of businesses,
within the area of the district. 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 and activities.
¤ 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 parking and business improvement area.
Santa Monica Tourism Marketing District Management District Plan Page 19
¤ 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 a new
district established pursuant to this part.
¤ 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 establishing the management district
plan described in Section 36622. 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 shall 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
The assessments levied on real property pursuant to this part shall be levied on the basis
(a)
of the estimated benefit to the real property within the property and business improvement
district. The city council may classify properties for purposes of determining the benefit to
property of the improvements and activities provided pursuant to this part.
Assessments levied on businesses pursuant to this part shall be levied on the basis of the
(b)
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.
Properties zoned solely for residential use, or that are zoned for agricultural use, are
(c)
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.
Santa Monica Tourism Marketing District Management District Plan Page 20
¤ 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; Modification of improvements and activities by adoption of resolution after
public hearing
Upon the written request of the owners' association, the city council may modify the
(a)
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 meetings and public hearings pursuant to this section shall
comply with both of the following:
The resolution of intention shall be published in a newspaper of general circulation in the
(1)
city once at least seven days before the public meeting.
A complete copy of the resolution of intention shall be mailed by first class mail, at least
(2)
10 days before the public meeting, to each business owner or property owner affected by the
proposed modification.
The city council shall adopt a resolution of intention which states the proposed
(b)
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.
¤ 36640. Bonds authorized; Procedure; Restriction on reduction or termination of
assessments
The city council may, by resolution, determine and declare that bonds shall be issued to
(a)
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)) or in conjunction with Marks-Roos Local
Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7
Santa Monica Tourism Marketing District Management District Plan Page 21
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.
The resolution adopted pursuant to subdivision (a) shall generally describe the proposed
(b)
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.
Notwithstanding any other provision of this part, assessments levied to pay the principal
(c)
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.
¤ 36641. \[Section repealed 2001.\]
¤ 36642. \[Section repealed 2001.\]
¤ 36643. \[Section repealed 2001.\]
¤ 36650. Report by owners' association; Approval or modification by city council
The owners' association shall cause to be prepared a report for each fiscal year, except the
(a)
first year, for which assessments are to be levied and collected to pay the costs of the
improvements 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.
The report shall be filed with the clerk and shall refer to the property and business
(b)
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:
Any proposed changes in the boundaries of the property and business improvement
(1)
district or in any benefit zones or classification of property or businesses within the district.
The improvements and activities to be provided for that fiscal year.
(2)
An estimate of the cost of providing the improvements and the activities for that fiscal
(3)
year.
The method and basis of levying the assessment in sufficient detail to allow each real
(4)
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.
The amount of any surplus or deficit revenues to be carried over from a previous fiscal
(5)
year.
Santa Monica Tourism Marketing District Management District Plan Page 22
The amount of any contributions to be made from sources other than assessments levied
(6)
pursuant to this part.
The city council may approve the report as filed by the owners' association or may
(c)
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 and activities
The management district plan may, but is not required to, state that an owners' association
will provide the improvements or 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.
¤ 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
Any district previously established whose term has expired, may be renewed by following
(a)
the procedures for establishment as provided in this chapter.
Upon renewal, any remaining revenues derived from the levy of assessments, or any
(b)
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.
Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is
(c)
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.
¤ 36670. Circumstances permitting disestablishment of district; Procedure
Any district established or extended pursuant to the provisions of this part, where there is
(a)
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:
If the city council finds there has been misappropriation of funds, malfeasance, or a
(1)
violation of law in connection with the management of the district, it shall notice a hearing on
disestablishment.
During the operation of the district, there shall be a 30-day period each year in which
(2)
assessees may request disestablishment of the district. The first such period shall begin one year
Santa Monica Tourism Marketing District Management District Plan Page 23
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 of real property or of businesses in the area 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.
The city council shall adopt a resolution of intention to disestablish the district prior to
(b)
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 of district; Calculation of
refund; Use of outstanding revenue collected after disestablishment of district
Upon the disestablishment of a district, any remaining revenues, after all outstanding
(a)
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. All outstanding assessment
revenue collected after disestablishment shall be spent on improvements and activities specified
in the management district plan.
If the disestablishment occurs before an assessment is levied for the fiscal year, the
(b)
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.
Santa Monica Tourism Marketing District Management District Plan Page 24
APPENDIX 2 Ã LODGING BUSINESSES TO BE ASSESSED WITHIN
THE SMTMD
Business Name Street Address
The Ambrose 1255 20th St
Bayside 2001 Ocean Ave
Best Western PLUS Gateway Hotel 1920 Santa Monica Blvd
Cal Mar Hotel Suites 220 California Ave
Comfort Inn Santa Monica 2815 Santa Monica Blvd
Days Inn Santa Monica 3007 Santa Monica Blvd
DoubleTree Suites by Hilton 1707 Fourth St
The Embassy Hotel Apartments 1001 Third St
Fairmont Miramar Hotel & Bungalows 101 Wilshire Blvd
Holiday Inn Santa Monica at the Pier 120 Colorado Ave
Holiday Motel 1102 Pico Blvd
Hotel California 1670 Ocean Ave
Hotel Carmel 201 Broadway
Hotel Casa Del Mar 1910 Ocean Way
Hotel Shangri-La 1301 Ocean Ave
Huntley Santa Monica Beach 1111 Second St
JW Marroitt Santa Monica Le Merigot 1740 Ocean Ave
Loews Santa Monica Beach Hotel 1700 Ocean Ave
Ocean Lodge 1667 Ocean Ave
Ocean View Hotel 1447 Ocean Ave
Oceana Beach Club Hotel 849 Ocean Ave
Santa Monica Pico Travelodge 3102 Pico Blvd
Rest Haven 815 Grant Street
Santa Monica Motel 2102 Lincoln Blvd.
Sea Shore Motel 2637 Main St
Seaview Hotel 1760 Ocean Ave
Sheraton Delfina Santa Monica 530 W. Pico Blvd
Shore Hotel 1515 Ocean Ave
Shutters on the Beach One Pico Blvd
The Georgian Hotel 1415 Ocean Ave
Viceroy Santa Monica 1819 Ocean Ave
Santa Monica Tourism Marketing District Management District Plan Page 25