SR 06-22-2021 3E
City Council Report
City Council Meeting: June 22, 2021
Agenda Item: 3.E
1 of 5
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan
Recommended Action
Staff recommends that the City Council approve the Santa Monica Tourism Marketing
District Fiscal Year 2021-22 Budget and Work Plan.
Summary
Tourism is an essential component to the economic recovery and vitality of Santa
Monica. Given the importance of branding and marketing to tourism, local hotels, in
partnership with Santa Monica Travel and Tourism (SMTT), established the Santa
Monica Tourism and Marketing District (SMTMD) in 2012. Funding for the marketing
programs and activities of the SMTMD are derived from assessments and revenues
collected from the hotels operating within the boundaries of the SMTMD. The
attached 2021-2022 SMTMD Annual Report (Annual Report) summarizes the
SMTMD’s proposed programs and activities for FY 2021-22, including the SMTMD
budget, hotel report, and marketing plan. Staff recommends that Council review and
approve the Annual Report in accordance with the State laws governing tourism
marketing districts.
Discussion
Under California Streets and Highway Code Section 36650, the Santa Monica
Tourism and Marketing District (SMTMD) is required to prepare Annual Reports
providing the following information:
• Any proposed changes to the boundaries of the tourism marketing
district or to any benefit zones or classification within the district,
• The improvements, maintenance, and activities for that fiscal year,
3.E
Packet Pg. 50
2 of 5
• An estimate of the cost of providing the improvements,
maintenance, and activities for that fiscal year,
• 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,
• The estimated amount of any surplus or deficit in revenues to be
carried over from a previous fiscal year,
• The estimated amount of contributions to be made from sources
other than assessments levied pursuant to this part.
In accordance with Section 36650, the SMTMD has submitted its 2021-2022
SMTMD Annual Report (Attachment A), including the work plan and budget for
Council approval. The following overview summarizes the proposed expenditures
to be funded with SMTMD assessments in the upcoming fiscal year.
SMTMD Reporting Year FY 2021-22
Revenues
Estimated TMD Assessments 4,424,509
Bank Interest 1,400
Total Revenues* $4,425,909
Expenditures
Cost of Programs
Travel Industry Sales 1,268,800
Marketing 1,264,072
Visitor Services
Meetings, incentives, conferences and
exhibitions
66,930
180,000
Client Services 20,000
General and Administrative Services 442,500
Salaries 962,382
Benefits & Payroll Taxes 221,225
Contingency Fund -
Total Expenses $4,425,909
3.E
Packet Pg. 51
3 of 5
Estimated Carry-over from Previous Fiscal Year $396,333
Estimated In-Kind Contributions $335,000
* This does not include $2,821,316 in City funding included in the FY 2021-22 Proposed Budget for a
services agreement with SMTT that the City provides SMTT annually to continue SMTT’s tourism
and marketing programs, operate Visitors Centers, produce collateral materials, create brand
awareness, and promote Santa Monica through print and social media.
In 2020, with the support of the City of Santa Monica, residents, business and
community leadership, SMTT completed the Santa Monica Experience Management
Plan (SMEP) which outlines eight strategies to optimize the Santa Monica experience
of our residents and visitors by 2030, therefore helping to preserve Santa Monica’s
quality of life. The SMEP will remain a priority in the recovery process of the tourism
industry along with the city’s Economic Recovery Task Force, Chamber of Commerce
and Downtown Santa Monica priorities to help guide and support implementation of
those strategies for overall destination success.
The SMTMD expenditures and services for FY 2021-22 are budgeted at $4,425,909
to focus on recovery and destination promotion to serve as a catalyst for economic
recovery. The attached annual work plan reflects the initiatives and programs focused
on five strategic areas:
1. Drive Balanced Demand for the Destination
2. Enhance the Brand and Steward the Destination Experience
3. Champion the Value of Tourism
4. Strengthen Strategic Partnerships and Relationships
5. Ensure Operational Excellence
The FY21/22 workplan also leverages Visit California and Los Angeles Tourism’s
efforts. SMTT will also conduct exploratory activities toward markets with potential
growth for Santa Monica, including United Arab Emirates, as well as evaluating part-
time representation with a focus on Canada, Australia, Mexico and Brazil. With that
lens, strengthening and enhancing Santa Monica as a brand, marketing and
promoting Santa Monica as a tourism destination, increasing occupancy, establishing
partnerships within the tourism community, private sector and government entities to
3.E
Packet Pg. 52
4 of 5
position Santa Monica as a filming destination, and expanding a presence in
emerging markets would continue to be core goals of the SMTMD.
The proposed FY 2021-22 budget was approved by the Tourism Marketing
District Committee and the Santa Monica Travel and Tourism (SMTT) Board of
Directors at a joint meeting on March 10, 2021. Council may approve the annual
report or may modify any section contained in the annual report and approve it
as modified. As the assessment formulas in the SMTMD remain as approved in
2017, staff recommends Council approve the attached Annual Report.
Past Council Actions
Meeting Date Description
12/11/2012 Council adopted Resolution No. 10722 (CCS) establishing
the Santa Monica Tourism Marketing District (SMTMD).
11/1/2016 Council adopted Resolution 11005 (CCS) extending the
SMTMD by nine and one-half years beginning in January 1,
2018 through June 30, 2027.
7/14/2020 Council approved the Annual Report for FY 2020-21
(Calendar Year 2021) representing the fourth report for the
SMTMD renewal term.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Nia Tang, Senior Development Analyst
Approved
Forwarded to Council
3.E
Packet Pg. 53
5 of 5
Attachments:
A. Attachment A. SMTMD Annual Report
3.E
Packet Pg. 54
SMTMD Annual Report for Fiscal Year 2021 – 2022 Page 1 of 7 April 1, 2021
2021 – 2022 SMTMD Annual Report
Santa Monica Travel & Tourism
April 1, 2021
Introduction
This report outlines the annual Tourism Marketing District plan from Santa Monica Travel
& Tourism, a not-for-profit organization that works to strengthen our local economy by
enhancing and promoting our community as a distinctive, compelling and welcoming
travel destination.
Background
Pursuant to Section 36650 of the Property and Business Improvement District Law of
1994, Streets and Highways Code Division 18, Santa Monica Travel and Tourism submits
annual reports outlining the improvements and activities to be provided for the calendar
year.
Submitted to:
Jennifer Taylor, Economic Development Manager, City of Santa Monica
Gigi Decavalles-Hughes, Director of Finance, City of Santa Monica
Prepared by:
Misti Kerns, President/CEO of Santa Monica Travel & Tourism
For the Period of:
Fiscal Year 2021 – 2022
Submitted on April 1, 2021: ________
Enclosures:
Attachment A. 2021–2022 Budget
Attachment B. ADR Report for 2020
Attachment C. Tourism Marketing District Plan
Attachment D. 2021–2022 Programs and Services
3.E.a
Packet Pg. 55 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2021 – 2022 Page 2 of 7 April 1, 2021
Santa Monica Travel and Tourism
TMD Report Plan for Fiscal Year 2021 – 2022
Section One – Proposed Boundary Changes
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section
(b)(1): Any proposed changes in the boundaries of the improvement district or in any benefit zones or
classification of businesses within the district.
Response: In the fiscal year 2021 – 2022, there will be no changes in the boundaries of
the improvement district.
3.E.a
Packet Pg. 56 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2021 – 2022 Page 3 of 7 April 1, 2021
Section Two – Programs and Services for Fiscal Year 2021 – 2022
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section
(b)(2): The improvements and activities to be provided for that fiscal year.
Programs and Services:
See Attachment D: 2021–2022 Programs and Services.
3.E.a
Packet Pg. 57 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2021 – 2022 Page 4 of 7 April 1, 2021
Section Three – Approved Draft Budget for Fiscal Year 2021 – 2022
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section
(b)(3): An estimate of the cost of providing the improvements and the activities for that fiscal year.
Response: See Attachment A. 2021–2022 Budget. The 2021-2022 Budget was
presented to the SMTT Board of Directors on March 10, 2021. Minutes from the March
10, 2021 Board of Directors Meeting adopting the 2021-2022 budget will be presented at
the May 12, 2021 Joint Annual Board and TMD Committee Meeting. Following the May
12, 2021 meeting, SMTT will forward the final minutes within 48 hours to the Economic
Development Department.
3.E.a
Packet Pg. 58 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2021 – 2022 Page 5 of 7 April 1, 2021
Section Four – Assessment Rates
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section
(b)(4): The method and basis of levying the assessment in sufficient detail to allow each business owner
to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
Response:
Pursuant to Section V(B) of the Management District Plan, assessment rates may be
increased annually by a maximum of $0.25 for Tier 1 and 2 lodging businesses and a
maximum of $0.10 for Tier 3 lodging businesses. Assessment rates are based on the
assessed lodging businesses’ average daily rate, based on the previous year’s
performance. Lodging businesses with an average daily rate less than $100 will not be
included in the district or assessed.
The TMD Hotel Committee will hold a Special TMD Meeting on Wednesday, May 12,
2021 to vote on July 1, 2021 – June 30, 2022 assessment rates which determine January
1, 2022 collection rates.
Average Daily Rate Assessment Per Occupied Room Per Night
Effective January 1, 2022
Tier 3: $100-$199.99 $1.90
Tier 2: $200-$300 $5.25
Tier 1: Over $300 $6.25
See Attachment B. ADR Report for 2020. The attached ADR report outlines the average
daily rate for hotel rooms and projects the tier rating for every qualified lodging business
within the City of Santa Monica.
3.E.a
Packet Pg. 59 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2021 – 2022 Page 6 of 7 April 1, 2021
Section Five – Carryover Dollars from Fiscal Year 2019-2020
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section
(b)(5): The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal
year.
Response: The TMD carryover dollars from fiscal year ending June 30, 2020 were
$396,332.50.
The contingency balance for fiscal year ending June 30, 2020 was $366,889.17 (6.83%of
the annual funds per the SMTMD plan).
3.E.a
Packet Pg. 60 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2021 – 2022 Page 7 of 7 April 1, 2021
Section Six – Estimated In-Kind Contributions for Fiscal Year 2020-
2021
Definition: Per section 36650 Report by Owners Association; Approval or modification by city council section
(b)(6): The estimated amount of any contributions to be made from sources other than assessments levied
pursuant to this part.
Response: The projected in-kind contributions for the year 2020-2021 are $335,000.
These are additional contributions from local businesses (in-kind) towards programs and
services.
3.E.a
Packet Pg. 61 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
Santa Monica Travel Tourism
FISCAL YEAR 2021-2022 BUDGET SHEET
Confidential Financial Data
Revenues
City Contract Revenue $2,821,316 98.39%-$ 0.00%2,821,316$ 38.68%
Estimated TMD Revenue - 0.00%4,424,509 99.97%4,424,509 60.66%
Bank Interest 2,500 0.09%1,400 0.03%3,900 0.05%
Other Income 2,640 0.09%- 0.00%2,640 0.04%
Retail Revenue 41,000 1.43%- 0.00%41,000 0.56%
Total Revenues 2,867,456$ 100.00%4,425,909$ 100.00%7,293,365$ 100.00%
Cost of Programs
Travel Industry Sales -$ 0.00%1,268,800$ 28.67%1,268,800$ 17.40%
Marketing 383,142 13.36%1,264,072 28.56%1,647,214$ 22.59%
Visitor Services 186,778 6.51%66,930 1.51%253,708$ 3.48%
MICE - 0.00%180,000 4.07%180,000$ 2.47%
Client Services 169,871 5.92%20,000 0.45%189,871$ 2.60%
Total Cost of Programs 739,791$ 25.80%2,799,802$ 63.26%3,539,593$ 48.53%
General & Administrative 750,981$ 26.19%442,500$ 10.00%1,193,481$ 16.36%
Salaries & Benefits 1,339,684$ 46.72%962,382$ 21.74%2,302,066$ 31.56%
Contingency Fund -$ 0.00%221,225$ 5.00%221,225$ 3.03%
Fixed Asset 37,000$ 1.29%-$ 0.00%37,000$ 0.51%
Total Expenses 2,867,456$ 100.00%4,425,909$ 100.00%7,293,365$ 100.00%
Net Increase (Decrease)-$ 0.00%(0)$ 0.00%(0)$ 0.00%
City Contract TMD Total Budget
3.E.a
Packet Pg. 62 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22
LODGING TIER CLASSIFICATION
FOR SANTA MONICA TOURISM
MANAGEMENT DISTRICT
FOR
February 2021
3.E.a
Packet Pg. 63 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
1
February 10, 2021
Misti Kerns, President CEO
Santa Monica Travel & Tourism
2427 S. Main Street
Santa Monica, CA 90405
Dear Ms. Kerns:
In accordance with our agreement, we have performed an analysis and have categorized Santa
Monica hotels in order to determine the appropriate Tourism Marketing District (TMD) tier and
assessment for calendar year 2021.
The TMD was established by the City of Santa Monica for tourism marketing. To fund the TMD,
hotels collect a specified flat assessment fee per room night sold commensurate with their
position/tier based on annual ADR, in this case for calendar year 2020.
Per our discussions with you and our understanding of the Santa Monica Tourism Marketing
District Management District Plan, and 2021 TMD Update, hotels within Santa Monica subject
to the TMD assessment are categorized as follows for the calendar 2021 assessment year:
Tier 1: Hotels with an annual average rate of $300.00 or more, to be assessed at a rate
of $6.00 per hotel room night sold.
Tier 2: Hotels with an annual average rate of $200.00 to $299.99, to be assessed at a
rate of $5.00 per hotel room night sold.
Tier 3: Hotels with an annual average rate of $100.00 to $199.99, to be assessed at a
rate of $1.80 per hotel room night sold.
Non-Assessed: Hotels with an annual average rate below $100.00
Our methodology consisted of accessing available and occupied rooms and revenues data from
all Santa Monica 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 the figures
aligned. Several requested an audit of 2020 ADR, which we performed.
______________________________________________________________________________
1041 S. Gramercy Drive, Los Angeles CA 90019
323-735-4464
www.lsconsult.com
3.E.a
Packet Pg. 64 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2
Of note, given the COVID-19 pandemic, many hotels operated at less than full availability and/
or at reduced room rates during most of 2020. On this basis hotels, as listed and footnoted
below qualify to be reclassified in 2021 (from 2020) and are shown in the new tier. Ten hotels
were audited separately to verify classification. Seventeen hotels volunteered to remain in
their current tier.
Our determination of the appropriate tier category for 2021 for each of 41 qualifying Santa
Monica lodging properties is listed below.
Tier 1: 13 Hotels with a 2020 ADR of $300.00+
• The Ambrose Hotel 3
• Fairmont Miramar Hotel & Bungalows
• Hotel Casa del Mar
• The Georgian Hotel
• J W Marriott Santa Monica Le Merigot
• Loews Santa Monica Beach Hotel
• Oceana Beach Club Hotel
• Palihouse Santa Monica
• Proper Hotel
• Shangri-La Hotel
• Shutters on the Beach
• The Cottage Santa Monica
• Viceroy Santa Monica
Tier 2: 8 Hotels with a 2020 ADR of $200.00 to $299.99
• Bayside Hotel
• Cal Mar Hotel Suites 1
• Doubletree Suites by Hilton Hotel 1
• The Huntley Hotel 1, 2
• Le Meridien Delfina
• Sea Blue Hotel (former Hotel California)
• Shore Hotel 2
• Wyndham Santa Monica at the Pier 1
_________________________________________________________________________
1 Hotel audited
2 Hotel moved to lower ADR tier
3 Hotel moved to higher ADR tier
3.E.a
Packet Pg. 65 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
3
Tier 3: 15 Hotels with a 2020 ADR of $100.00 to $199.99
• Comfort Inn 1
• Courtyard by Marriott 1
• Days Inn 1
• Gateway Hotel (former Best Western)
• Hampton Hotel 1,2
• Hotel Carmel
• Ocean Lodge 2
• Ocean Park Inn
• Ocean View Hotel 1
• Palm Motel
• Rest Haven Motel
• Santa Monica Motel 1
• Sea Shore Motel
• Sea View
• SureStay Hotel (former Travelodge)
In addition, the following five 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
• Pavilions Motel
We appreciate your cooperation and resources to facilitate and the opportunity to assist you
with this review.
Please feel free to contact me if you have any questions or comments, or for further
interpretation of our findings.
Sincerely,
Lauren Schlau
President
3.E.a
Packet Pg. 66 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2018-2027
September 29, 2016 Prepared pursuant to the Property and Business Improvement District Law of
1994, Streets and Highways Code section 36600 et seq.
SANTA MONICA TOURISM
MARKETING DISTRICT
MANAGEMENT DISTRICT PLAN
3.E.a
Packet Pg. 67 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
CONTENTS
I. OVERVIEW ........................................................................................................................................ 2
II. ACCOMPLISHMENTS ..................................................................................................................... 4
III. BACKGROUND ................................................................................................................................ 6
IV. BOUNDARY ....................................................................................................................................... 7
V. BUDGET AND SERVICES ............................................................................................................. 8
A. Annual Service Plan ............................................................................................................ 8
B. Annual Budget .................................................................................................................... 9
C. California Constitutional Compliance .............................................................................. 10
D. Assessment ........................................................................................................................ 13
E. Penalties and Interest ........................................................................................................ 13
F. Time and Manner for Collecting Assessments ................................................................. 14
VI. GOVERNANCE ............................................................................................................................... 15
A. Owners’ Association ......................................................................................................... 15
B. Brown Act and California Public Records Act Compliance ............................................ 15
C. Annual Report ................................................................................................................... 15
D. Milestone Report ............................................................................................................... 15
APPENDIX 1 – LAW .................................................................................................................................... 17
APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 28
APPENDIX 3 – BENEFIT STUDY .......................................................................................................... 29
APPENDIX 4 – TIER BENEFITS ............................................................................................................. 30
Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
3.E.a
Packet Pg. 68 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 2
September 29, 2016
I. OVERVIEW
Developed by Santa Monica Travel & Tourism (SMTT), the Santa Monica Tourism Marketing District
(SMTMD) is an assessment district proposed to provide specific benefits to payors, by funding
marketing and sales promotion efforts for assessed businesses. The SMTMD was formed in 2012 for
a five (5) year term; lodging businesses now wish to renew it for an additional nine and one-half (9.5)
years.
Location: The renewed SMTMD includes all lodging businesses located within the boundaries
of the City of Santa Monica with an average daily rate of $100 or more, as shown on
the map in section IV.
Services: The SMTMD is designed to provide specific benefits directly to payors by increasing
room night sales. Marketing and sales promotions will increase overnight tourism and
market payors as tourist, meeting and event destinations, thereby increasing room
night sales.
Budget: The total SMTMD annual budget for each full year of operation is anticipated to be
approximately $4,130,000. The initial “year” of operation will be a partial year
consisting of six months, for which the anticipated budget is $2,065,000. This budget
is expected to fluctuate as room sales and the assessment rate do, as detailed in Section
V.
Cost: The assessment is a fixed amount per occupied room per night. The assessment is
based on the businesses’ average daily rate, based on the previous year’s performance.
Average daily rate figures shall be updated annually. Based on the benefit received,
assessments will not be collected on: stays of more than thirty (30) consecutive days;
and stays paid by any Federal, State of California, or City of Santa Monica, official or
employee when on official business provided that an exempt certificate is executed at
the time of registration. Lodging businesses with an average daily rate less than $100
will not be included in the district or assessed. Assessment rates are:
Tier Average Daily
Rate
Assessment Per Occupied Room
Per Night
1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 - $199.99 $1.50
Assessment rates may be subject to an annual increase of no more than twenty-five
cents ($0.25) per year for Tier 1 and Tier 2 lodging businesses and no more than ten
cents ($0.10) per year for Tier 3 lodging businesses. The table below demonstrates the
maximum with the assumption that the rates will be increased by the maximum
amounts for each category in each year of the SMTMD’s nine and one-half (9.5) year
term, as it is a required disclosure, it is not the anticipated course of action. The
maximum assessment rate for each category is:
3.E.a
Packet Pg. 69 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 3
September 29, 2016
Year $100 - $199.99 $200 - $299.99 $300 and Above
2018* $1.50 $4.25 $5.25
2018-19 $1.60 $4.50 $5.50
2019-20 $1.70 $4.75 $5.75
2020-21 $1.80 $5.00 $6.00
2021-22 $1.90 $5.25 $6.25
2022-23 $2.00 $5.50 $6.50
2023-24 $2.10 $5.75 $6.75
2024-25 $2.20 $6.00 $7.00
2025-26 $2.30 $6.25 $7.25
2026-27 $2.40 $6.50 $7.50
*The initial “year” is January 1, 2018 through June 30, 2018
Collection: The City will be responsible for collecting the assessment on a monthly basis (including
any delinquencies, penalties and interest) from each lodging business located in the
boundaries of the SMTMD. The City shall take all reasonable efforts to collect the
assessments from each lodging business.
Duration: The renewed SMTMD will have a nine and one-half (9.5) year life, beginning January
1, 2018 through June 30, 2027. Once per year, beginning on the anniversary of district
renewal, there is a 30-day period in which owners paying more than fifty percent (50%)
of the assessment may protest and initiate a City Council hearing on district
disestablishment.
Management: Santa Monica Travel & Tourism will continue to serve as the SMTMD’s Owners’
Association. The Owners’ Association is charged with managing funds and
implementing programs in accordance with this Plan, and must provide annual reports
to the City Council.
3.E.a
Packet Pg. 70 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 4
September 29, 2016
II. ACCOMPLISHMENTS
The SMTMD is being renewed for the following reasons:
1. The SMTMD has funded excellent marketing programs and strategies
In the first five (5) year term of the SMTMD, the District has funded:
x Creation of 5-year strategic plan for the destination with input provided by the TMD Hotel
Committee;
x Focus Groups conducted in seven (7) domestic and international target markets to assess
perceptions of the destination brand;
x Integrated advertising campaigns targeted to domestic target markets to drive travel during
Santa Monica’s soft season (paid search, behavioral retargeting, display, paid social,
eNewsletter sponsorships).
x Entirely redesigned SantaMonica.com, including new white labeled booking site to drive
bookings directly to assessed lodging businesses’ websites. New website recognized with
industry design awards for structure, concept and functionality;
x Redesigned logo, brand style guide, destination photography and video; and
x New and improved Official Visitor Guide and Map with award-winning publishing partner.
2. The SMTMD has funded enhanced business development programs for key
international target markets
x United Kingdom, Australia and Brazil:
o Full time representation in all three markets;
o Enhanced public relations support;
o B2B and B2C integrated campaigns with performance metrics and sales analysis;
o Brand enhancing partnerships with travel trade clientele (Visit California and Brand
USA);
o Sales and media missions including key hotel partners for targeted markets;
o Tradeshow participation; and
o Ongoing trade relationship development and trainings.
x France and Germany:
o Part-time representation;
o B2B campaigns with sales and social media performance metrics;
o Tradeshow participation; and
o Ongoing trade relationship development and trainings.
3. The SMTMD has funded initiatives to increase the meetings and incentives market
Santa Monica Travel and Tourism has executed over twenty meetings and incentive (MICE) programs
with the objective of increasing qualified meetings and incentives business to the destination.
x Sales missions were conducted in New York, Toronto, Washington DC, Chicago,
Minneapolis, San Francisco, Orange County and San Diego;
x SMTT exhibited at IMEX America, IncentiveWorks, and Incentive Travel Exchange,
conducting over 500 meetings with key buyers;
x SMTT hosted nearly thirty (30) meeting planners to the destination to experience first hand
what their clients would be booking; and
3.E.a
Packet Pg. 71 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 5
September 29, 2016
x SMTT engaged a third party consultant to conduct focus groups with these meeting planners
to better understand future meetings and incentives business opportunity for the destination.
3.E.a
Packet Pg. 72 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 6
September 29, 2016
III. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed
in West Hollywood, California in 1989. Since then, ninety-five (95) California destinations have
followed suit. In recent years, other states have begun adopting the California model – Montana,
South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other
states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark,
New Jersey used an existing business improvement district law to form a TBID. And, some cities,
like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs
without a state law.
California’s TMDs collectively raise
over $200 million for local
destination marketing. With
competitors raising their budgets,
and increasing rivalry for visitor
dollars, it is important that Santa
Monica lodging businesses
continue to invest in stable,
lodging-specific marketing
programs.
TMDs utilize the efficiencies of
private sector operation in the
market-based promotion of
tourism districts. TMDs allow
lodging business owners to
organize their efforts to increase room night sales. Lodging business owners within the TMD pay an
assessment and those funds are used to provide services that increase room night sales.
In California, TMDs are formed pursuant to the Property and Business Improvement District Law of
1994. This law allows for the creation of a benefit assessment district to raise funds within a specific
geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are
returned to the private non-profit corporation governing the district.
There are many benefits to TMDs:
x Funds must be spent on services and improvements that provide a specific benefit only to those
who pay;
x Funds cannot be diverted to general government programs;
x They are customized to fit the needs of payors in each destination;
x They allow for a wide range of services;
x They are designed, created and governed by those who will pay the assessment; and
x They provide a stable, long-term funding source for tourism promotion.
1 2 4 6 9 12
19 24 28 31
37
45
60 63
72
80
88
95
0
10
20
30
40
50
60
70
80
90
100
198919952000200120022003200420052006200720082009201020112012201320142015Number of Districts Operating Per Year
3.E.a
Packet Pg. 73 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 7
September 29, 2016
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 with an average daily rate of $100 or
more. Lodging businesses whose average daily rate increases to $100 will be assessed upon
determination of the increase; likewise, lodging businesses whose average daily rate decreases to below
$100 will not be assessed upon determination of the decrease. Average daily rate figures shall be
updated annually.
Lodging business means: Any public or private hotel, inn, hostelry, tourist home or house motel,
rooming house or other lodging place within the City of Santa Monica offering lodging, wherein the
owner and operator thereof, for compensation, furnishes lodging to any transient.
The boundary, as shown in the map below, currently includes thirty-two (32) lodging businesses. A
complete listing of lodging businesses within the renewed SMTMD can be found in Appendix 2.
3.E.a
Packet Pg. 74 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 8
September 29, 2016
V. BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to
the payors that are not provided to those not charged, and which do not exceed the reasonable cost
to the City of conferring the benefits or granting the privileges. The privileges and services provided
with the SMTMD funds are sales and marketing programs available only to assessed businesses. The
assessment rate for each Tier will be commensurate with privileges and services provided to assessed
businesses in each Tier as detailed in Appendix 4.
A service plan budget has been developed to deliver services that benefit the assessed businesses. A
detailed annual budget will be developed and approved by the SMTT TMD Committee and the SMTT
Board. The table below illustrates the initial annual budget allocations for the first partial fiscal year.
The total SMTMD annual budget for each full year of operation is anticipated to be approximately
$4,130,000. The initial “year” of operating will be a partial year consisting of six months, for which
the anticipated budget is $2,065,000.
Although actual revenues will fluctuate due to market conditions and assessment rate increases, the
proportional allocations of the budget shall remain the same. However, the City and the SMTT board
shall have the authority to adjust budget allocations between the categories by no more than fifteen
percent (15%) of the total budget per year. A description of the proposed improvements and activities
for the initial year of operation is below. The same activities are proposed for subsequent years. In
the event of a legal challenge against the SMTMD, any and all assessment funds may be used for the
costs of defending the SMTMD.
Each budget category includes all costs related to providing that service, in accordance with Generally
Accepted Accounting Procedures (GAAP). For example, the sales and marketing budget includes the
cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff
time dedicated purely to administrative tasks is allocated to the administrative portion of the budget.
The costs of an individual staff member may be allocated to multiple budget categories, as appropriate
Sales & Marketing,
$1,755,250 , 85%
Administration,
$206,500 , 10%
Contingency/Reserve, $103,250 , 5%
FY 2018 Budget (January -June) -$2,065,000
3.E.a
Packet Pg. 75 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 9
September 29, 2016
in accordance with GAAP. The staffing levels necessary to provide the services below will be
determined by SMTT on an as-needed basis. Staff costs will be allocated based on work performed.
Sales and Marketing
A sales and marketing program will promote assessed businesses as tourist, meeting, and event
destinations. The sales and marketing program will have a central theme of promoting Santa Monica
as a desirable place for overnight visits. The program will have the goal of increasing overnight
visitation and room night sales at assessed businesses, and may include the following activities:
x Internet marketing efforts to increase awareness and optimize internet presence to drive
overnight visitation and room sales to assessed businesses;
x Print ads in magazines and newspapers, television ads, and radio ads targeted at potential
visitors to drive overnight visitation and room sales to assessed businesses;
x Attendance of trade shows to promote assessed businesses;
x Sales blitzes for assessed businesses;
x Familiarization tours of assessed businesses;
x Research and analytics to promote assessed businesses;
x Translation services designed to drive overnight visitation and room sales to assessed
businesses;
x Staff to implement and support expanded marketing and promotion efforts to promote
assessed businesses;
x External public relations firms to promote assessed businesses;
x Preparation and production of collateral promotional materials such as brochures, flyers and
maps featuring assessed businesses;
x Attendance of professional industry conferences and affiliation events to promote assessed
businesses;
x Lead generation activities designed to attract tourists and group events to assessed businesses;
x Director of Sales and General Manager meetings to plan and coordinate tourism promotion
efforts for assessed businesses; and
x Development and maintenance of a website designed to promote assessed businesses.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing
costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there
are contingency funds collected, they may be held in a reserve fund or utilized for other program,
administration or renewal costs at the discretion of the Owners’ Association. Policies relating to
contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies
from the reserve fund shall be set by the SMTT TMD Committee and the SMTT Board of Directors.
The reserve fund may be used for the costs of renewing the District.
B. Annual Budget
The total nine and one-half (9.5) year improvement and service plan budget is projected at
approximately $4,130,000 annually, or $57,530,913 through 2027 if the maximum assessment rate
increases are adopted. Fiscal year 2018 covers the six month period from January to June 2018,
resulting in a lower budget for the first six months of district operation. This budget is expected to
fluctuate as room sales change and if the assessment rate is increased. The initial assessment rate is:
3.E.a
Packet Pg. 76 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 10
September 29, 2016
Tier Average Daily Rate Assessment Per Occupied Room Per Night
1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 - $199.99 $1.50
The SMTT may increase the assessment rate by a maximum of $0.25 per year for Tier 1 and Tier 2
lodging businesses and no more than ten cent ($0.10) per year for Tier 3 lodging businesses. The
assessment rate might not increase starting in fiscal year 2018-19, the increases may be implemented
in later years at the discretion of the Owners’ Association. The table below demonstrates the
maximum with the assumption that the rates will be increased by the maximum amounts for each
category in each year of the SMTMD’s nine and one-half (9.5) year term, as it is a required disclosure,
it is not the anticipated course of action. Additionally, a three percent (3%) annual increase in the
total budget is shown, to account for estimated increased room night sales as a result of SMTMD
efforts. This three percent (3%) annual increase is a conservative estimate based on the effects of
similarly sized TMD budgets. If the maximum annual assessment increases are adopted by the SMTT
Board, the estimated annual budget will increase as shown in the table below.
Estimated Annual Budget If Maximum Assessment Rates Are Adopted
2018-2027
FY Sales &
Marketing Administration Contingency/Reserve Total
2018* $1,755,250 $206,500 $103,250 $2,065,000
2018-19 $3,813,041 $448,593 $224,297 $4,485,931
2019-20 $4,130,576 $485,950 $242,975 $4,859,501
2020-21 $4,463,730 $525,145 $262,572 $5,251,447
2021-22 $4,813,157 $566,254 $283,127 $5,662,537
2022-23 $5,179,531 $609,357 $304,678 $6,093,566
2023-24 $5,563,556 $654,536 $327,268 $6,545,360
2024-25 $5,965,962 $701,878 $350,939 $7,018,778
2025-26 $6,387,504 $751,471 $375,736 $7,514,710
2026-27 $6,828,969 $803,408 $401,704 $8,034,082
Total $48,901,276 $5,753,091 $2,876,546 $57,530,913
*Fiscal year 2018 only covers a 6 month period (January – June). The estimate for the first year of operation of the
district is $4,130,000 which translates to approximately $344,166.67 per month. The subsequent years in the table
above use the $4,130,000 figure as a base number for all calculations.
C. California Constitutional Compliance
The SMTMD assessment is not a property-based assessment subject to the requirements of
Proposition 218. The Court has found, “Proposition 218 limited the term ‘assessments’ to levies on
real property.”1 Rather, the SMTMD assessment is a business-based assessment, and is subject to
Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.
Two of these exceptions apply to the SMTMD, a “specific benefit” and a “specific government
service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the
City of conferring the benefits or providing the services.
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
3.E.a
Packet Pg. 77 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 11
September 29, 2016
1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or
privilege granted directly to the payor that is not provided to those not charged, and which does not
exceed the reasonable costs to the local government of conferring the benefit or granting the
privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed
lodging businesses, and are intended only to provide benefits and services directly to those businesses
paying the assessment. These services are tailored not to serve the general public, businesses in
general, or parcels of land, but rather to serve the specific lodging businesses within the District. The
activities described in this Plan are specifically targeted to increase room night sales for assessed
lodging businesses within the boundaries of the District, and are narrowly tailored. SMTMD funds
will be used exclusively to provide the specific benefit of increased room night sales directly to the
assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in SMTMD
programs, or to directly generate sales for non-assessed businesses. The activities paid for from
assessment revenues are business services constituting and providing specific benefits to the assessed
businesses.
The assessment imposed by this District is for a specific benefit conferred directly to the payors that
is not provided to those not charged. The specific benefit conferred directly to the payors is an
increase in room night sales. The specific benefit of an increase in room night sales for assessed
lodging businesses will be provided only to lodging businesses paying the district assessment, with
marketing and sales programs promoting lodging businesses paying the district assessment. The
marketing and sales programs will be designed to increase room night sales at each assessed lodging
businesses. Because they are necessary to provide the marketing and sales programs that specifically
benefit the assessed lodging businesses, the administration and contingency services also provide the
specific benefit of increased room night sales to the assessed lodging businesses.
Although the District, in providing specific benefits to payors, may produce incidental benefits to
non-paying businesses, the incidental benefit does not preclude the services from being considered a
specific benefit. The legislature has found that, “A specific benefit is not excluded from classification
as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without
cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided
directly to the payor that is not provided to those not charged, and which does not exceed the
reasonable costs to the local government of providing the service or product.”4 The legislature has
recognized that marketing and promotions services like those to be provided by the SMTMD are
government services within the meaning of Proposition 265. Destination marketing services are
frequently funded and provided by local governments. In the case of the SMTMD, the district is
formed and services are overseen by the Santa Monica City Council. Further, the legislature has
determined that “a specific government service is not excluded from classification as a ‘specific
government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without
cost to the payor as a consequence of providing the specific government service to the payor.”6
2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
3.E.a
Packet Pg. 78 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 12
September 29, 2016
3. Reasonable Cost
District services will be implemented carefully to ensure they do not exceed the reasonable cost of
such services. The full amount assessed will be used to provide the services described herein. Funds
will be managed by SMTT, and reports submitted on an annual basis to the City. Only assessed
lodging businesses will be featured in marketing materials, receive sales leads generated from district-
funded activities, be featured in advertising campaigns, and benefit from other district-funded services.
Non-assessed lodging businesses will not receive these, nor any other, district-funded services and
benefits.
The District-funded programs are all targeted directly at and feature only assessed businesses. It is,
however, possible that there will be a spill over benefit to non-assessed businesses. If non-assessed
lodging businesses receive incremental room nights, that portion of the promotion or program
generating those room nights shall be paid with non-District funds. SMTMD funds shall only be
spent to benefit the assessed businesses, and shall not be spent on that portion of any program which
directly generates incidental room nights for non-assessed businesses.
4. Benefit to NonPayors
The specific benefits provided by the SMTMD will only be directly provided to the assessed
businesses; they will not be directly provided to non-assessed businesses. Possible indirect benefit
does not preclude the SMTMD services from being considered a specific benefit. The legislature has
directly indicated, in the context of tourism marketing districts, that services are not precluded from
classification as a specific benefit merely because an indirect benefit to a nonpayor occurs as a
consequence of providing the service and without cost to the payor.7
Although the legislature does not require the cost of any incidental benefit to non-payors be separated
from the assessment, out of an abundance of caution a study was conducted on benefit generated by
the SMTMD programs. The study is attached as Appendix 3. The study found that 6.6% of marketing
programs generate incidental room night sales at non-assessed lodging businesses. Although it is not
required, the portion of programs that generate this benefit will be paid for with non-assessment
funds. Assessment funds will only fund that portion of the programs (93.4%) which represents a
specific benefit to the assessed businesses. For example, if a program costs $100,000 total, the
SMTMD will fund $93,400 and the remaining $6,600 will be sourced from non-assessment funds.
The amount of the assessment is no more than necessary to cover the reasonable costs of the proposed
activities, and the manner in which the costs are allocated to a business owner bear a fair share or
reasonable relationship to the businesses’ benefits received from the proposed activities. The benefit
study in Appendix 3 found that the benefits provided by the SMTMD do not exceed the reasonable
cost.
The programs provided with District funding receive additional non-assessment funding in the form
of grants, corporate sponsorships, event income, transient occupancy tax, and other funds. These
funding sources shall be equal to or exceed the amount of benefit conferred to non-payors annually
by the District’s services. These non-assessment funds will be used to pay for the benefit to non-
payors provided by the proposed services, ensuring that assessments will only be used to provide
benefits to assessed businesses.
7 AB 483 Ting (2014)
3.E.a
Packet Pg. 79 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 13
September 29, 2016
D. Assessment
The assessment is a fixed amount per occupied room per night. The assessment is based on the
businesses’ average daily rate, based on the previous year’s performance. Average daily rate figures
shall be updated annually. Based on the benefit received, assessments will not be collected on: stays
of more than thirty (30) consecutive days; and stays paid by any Federal, State of California, or City of
Santa Monica, official or employee when on official business provided that an exempt certificate is
executed at the time of registration. Lodging businesses with an average daily rate less than $100 will
not be included in the district or assessed. Assessment rates are:
Tier Average Daily Rate Assessment Per Occupied Room Per Night
1 $300 and above $5.25
2 $200 - $299.99 $4.25
3 $100 -$199.99 $1.50
Assessment rates may be subject to an annual increase of no more than twenty-five cents ($0.25) per
year for Tier 1 and Tier 2 lodging businesses and no more than ten cent ($0.10) per year for Tier 3
lodging businesses. The table below demonstrates the maximum with the assumption that the rates
will be increased by the maximum amount for each category in each year of the SMTMD’s nine and
one-half (9.5) year term, as it is a required disclosure, it is not the anticipated course of action. The
maximum assessment rate for each category is:
FY $100 - $199.99 $200 - $299.99 $300 and Above
2018* $1.50 $4.25 $5.25
2018-19 $1.60 $4.50 $5.50
2019-20 $1.70 $4.75 $5.75
2020-21 $1.80 $5.00 $6.00
2021-22 $1.90 $5.25 $6.25
2022-23 $2.00 $5.50 $6.50
2023-24 $2.10 $5.75 $6.75
2024-25 $2.20 $6.00 $7.00
2025-26 $2.30 $6.25 $7.25
2026-27 $2.40 $6.50 $7.50
*Fiscal year 2018 only covers a 6 month period (January – June).
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the
assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of
assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the
amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for
payment from the business. The assessment shall be disclosed as the “TMD Assessment.” The
assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if
it is passed on to transients. The assessment shall not be considered revenue for any purposes,
including calculation of transient occupancy taxes.
Bonds shall not be issued.
E. 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
3.E.a
Packet Pg. 80 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 14
September 29, 2016
unpaid thereafter for a period of thirty (30) days, there shall be an additional penalty of ten percent
(10%).
F. Time and Manner for Collecting Assessments
The SMTMD assessment will be implemented beginning January 1, 2018 and will continue for nine
and one-half (9.5) years through June 30, 2027. The City will be responsible for collecting the
assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging
with an average daily rate of $100 or more. The City shall take all reasonable efforts to collect the
assessments from each lodging business. The City shall forward the assessments collected to the
Owners’ Association.
3.E.a
Packet Pg. 81 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 15
September 29, 2016
VI. GOVERNANCE
A. Owners’ Association
The City Council, through adoption of this Management District Plan, has the right, pursuant to
Streets and Highways Code §36651, to identify the body that shall implement the proposed program,
which shall be the Owners’ Association of the SMTMD as defined in Streets and Highways Code
§366612. The City Council has determined that Santa Monica Travel & Tourism will serve as the
Owners’ Association for the SMTMD.
The SMTT standing advisory committee, known as the “TMD Hotel Committee” shall continue to
be responsible for making recommendations to the SMTT Board regarding SMTMD funds and
programs. The TMD Hotel Committee shall have between four (4) and nine (9) members, of which
at least four (4) will be representatives of assessed lodging businesses.
Annually, SMTT shall hold a joint SMTT 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 SMTMD funds for the upcoming fiscal year.
B. Brown Act and California Public Records Act Compliance
An Owners’ Association is a private entity and may not be considered a public entity for any purpose,
nor may its board members or staff be considered to be public officials for any purpose. The Owners’
Association is, however, subject to government regulations relating to transparency, namely the Ralph
M. Brown Act and the California Public Records Act. These regulations are designed to promote
public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown
Act (Government Code §54950 et seq.). Thus, meetings of the SMTT board and certain committees
must be held in compliance with the public notice and other requirements of the Brown Act. The
Owners’ Association is also subject to the record keeping and disclosure requirements of the California
Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and
the vote or abstention on that action of each member present for the action.
C. Annual Report
SMTT shall present an annual report at the end of each year of operation to the City Council pursuant
to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
x Any proposed changes in the boundaries of the improvement district or in any benefit zones
or classification of businesses within the district.
x The improvements and activities to be provided for that fiscal year.
x An estimate of the cost of providing the improvements and the activities for that fiscal year.
x The method and basis of levying the assessment in sufficient detail to allow each business
owner to estimate the amount of the assessment to be levied against his or her business for
that fiscal year.
x The estimated amount of any surplus or deficit revenues to be carried over from a previous
fiscal year.
x The estimated amount of any contributions to be made from sources other than assessments
levied pursuant to this part.
D. Milestone Report
SMTT shall prepare a five-year Milestone Report, which will be due in May 2022 prior to the City’s
approval of the annual report for Fiscal Year 2022-2023. The Milestone Report shall be submitted to
3.E.a
Packet Pg. 82 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 16
September 29, 2016
the City and all assessed businesses. It shall include all information required in the annual report, as
well as historical program and performance data, including key performance indicators for lodging
businesses such as average daily rate, revenue per available room, and occupancy rates. The Milestone
Report may serve as the annual report for Fiscal Year 2022-2023. If lodging businesses are not
satisfied with the results of the Milestone Report, they may petition the City to disestablish the District
pursuant to Streets and Highways Code section 36650.
3.E.a
Packet Pg. 83 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 17
September 29, 2016
APPENDIX 1 – LAW
STREETS AND HIGHWAYS CODE
Division 18. Parking
Part 7. Property and Business Improvement District Law of 1994
Cal Sts & Hy Code Div. 18, Pt. 7 Note (2015)
*** This document is current through the 2015 Supplement ***
(All 2014 legislation)
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:
(a) Businesses located and operating within business districts in some of this state’s communities are economically
disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and
activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts
in order to create jobs, attract new businesses, and prevent the erosion of the business districts.
(c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance,
and activities through the levy of assessments upon the businesses or real property that receive benefits from those
improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or businesses in a
business district are not taxes for the general benefit of a city, even if property or persons not assessed receive
incidental or collateral effects that benefit them.
(e) Property and business improvement districts formed throughout this state have conferred special benefits upon
properties and businesses within their districts and have made those properties and businesses more useful by
providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the
incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts
studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts
have become even more important tools with which communities can combat blight, promote economic
opportunities, and create a clean and safe environment.
(g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII
D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities,
expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-
based districts may only levy assessments for special benefits.
(h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its
interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in
property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act,
which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-
based districts, contributing to blight and other underutilization of property.
(2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed
inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special
3.E.a
Packet Pg. 84 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 18
September 29, 2016
benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those
special benefits are inherently part of those special benefits. The mere fact that special benefits produce incidental or
collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits
or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding
restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with
regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions
on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy
assessments within property and business improvement districts, to ensure that those assessments conform to all
constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.
This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of
improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments
Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a
different method of levying assessments for similar or additional purposes from those set forth in this part. A
property and business improvement district created pursuant to this part is expressly exempt from the provisions of
the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with
Section 2800)).
36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law,
as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall
remain in full force and effect. Assessments levied under this part are not special taxes.
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment.
(e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services
supplemental to those normally provided by the municipality.
(f) Other services provided for the purpose of conferring special benefit upon assessed businesses and real property
located in the district.
36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and
providing activities that will provide certain benefits to properties or businesses located within a property and
business improvement district.
36607. “Business”
3.E.a
Packet Pg. 85 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 19
September 29, 2016
“Business” means all types of businesses and includes financial institutions and professions.
36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with
Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which
includes only cities, counties, or a city and county, or the State of California.
36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission,
or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as
defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an
estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs.
(c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets.
(j) Facilities or equipment, or both, to enhance security of persons and property within the area.
(k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622.
36612. “Owners’ Association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement
improvements, maintenance, and activities specified in the management district plan. An owners’ association may
be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and
may not be considered a public entity for any purpose, nor may its board members or staff be considered to be
public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph
M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government
Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and
with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the
Government Code), for all records relating to activities of the district.
3.E.a
Packet Pg. 86 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 20
September 29, 2016
36614. “Property”
“Property” means real property situated within a district.
36614.5. “Property and business improvement district”; “District”
“Property and business improvement district,” or “district,” means a property and business improvement district
established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property.
36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment.
36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise
known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the
owner of the business. “Owner” means either a business owner or a property owner. The city council has no
obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership
shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property
owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the
signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient.
36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above
general benefits conferred on real property located in a district or to the public at large. Special benefit includes
incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based
districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit
excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
36617. Alternative 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
3.E.a
Packet Pg. 87 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 21
September 29, 2016
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
(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who
will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to
form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment
attributable to property or a business owned by the same property or business owner that is in excess of 40 percent
of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is
signed by property or business owners who will pay more than 50 percent of the total amount of assessments
proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a summary of the
management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained.
(3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the
proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the
district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed
district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and
statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature
and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district.
(2) A time and place for a public hearing on the establishment of the property and business improvement
district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of
property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on
businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably
determine whether a business is located within the district boundaries. If the assessment will be levied on property
and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business
owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for
establishment or extension in a manner sufficient to identify the affected property and businesses included, which
may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property
assessment district shall not overlap with the boundaries of another existing property assessment district created
pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap
with other assessment districts established pursuant to other provisions of law, including, but not limited to, the
Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does
not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another
business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business
assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this
part.
(d) The improvements, maintenance, and activities proposed for each year of operation of the district and the
maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the
same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the
same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of
this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service
in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated
3.E.a
Packet Pg. 88 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 22
September 29, 2016
based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the
district is not significantly different, the amount proposed to be expended in the initial year and a statement that a
similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment
in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied
against his or her property or business. The plan also shall state whether bonds will be issued to finance
improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of
years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these
limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments
until the maximum maturity of the bonds. The management district plan may set forth specific increases in
assessments for each year of operation of the district.
(i) The proposed time for implementation and completion of the management district plan.
(j) Any proposed rules and regulations to be applicable to the district.
(k) (1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for
properties to be assessed, and a statement of the method or methods by which the expenses of a district will be
imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business,
to defray the cost thereof.
(2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be
determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance
and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on
any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special
benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special
benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public
agency, the State of California, or the United States shall not be exempt from assessment unless the governmental
entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special
benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance,
or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from
the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified
parcel.
(l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located
within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any.
(n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified
by the State of California supporting all assessments contemplated by the management district plan.
(o) Any other item or matter required to be incorporated therein by the city council.
36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing
procedure shall comply with Section 53753 of the Government Code.
(b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing
procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the
owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested
person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city
council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn
in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of
the business in which the person subscribing the protest is interested sufficient to identify the business and, if a
person subscribing is not shown on the official records of the city as the owner of the business, the protest shall
contain or be accompanied by written evidence that the person subscribing is the owner of the business or the
authorized representative. A written protest that does not comply with this section shall not be counted in
determining a majority protest. If written protests are received from the owners or authorized representatives of
businesses in the proposed district that will pay 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.
3.E.a
Packet Pg. 89 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 23
September 29, 2016
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and
a new or increased business assessment, the notice and protest and hearing procedure for the property assessment
shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall
comply with subdivision (b). If a majority protest is received from either the property or business owners, that
respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied
unless the improvement or other special benefit was proposed to be funded by assessing both property and business
owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or
modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with
the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the
public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and
business improvement district that will exclude territory that will not benefit from the proposed improvements,
maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district
shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business
improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all
of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the
proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within
the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed
district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and
statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and
extent of the improvements, maintenance, and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention.
(3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy
assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the
resolution shall be subject to any amendments to this part.
(6) A statement that the improvements, maintenance, and activities to be conferred on businesses and
properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments
within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any
purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing
concerning establishment of the district.
(7) A finding that the property or businesses within the area of the property and business improvement
district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and,
for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties
within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to
Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management
district plan.
36626. Resolution establishing district
If the city council, following the public hearing, desires to establish the proposed property and business
improvement district, and the city council has not made changes pursuant to Section 36624, or has made changes
that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the
district. The resolution shall contain all of the information specified in Section 36625.
36627. Notice and assessment diagram
3.E.a
Packet Pg. 90 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 24
September 29, 2016
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625 or
Section 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. No
other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant
to this part.
36628. Establishment of separate benefit zones within district; Categories of businesses
The city council may establish one or more separate benefit zones within the district based upon the degree of
benefit derived from the improvements or activities to be provided within the benefit zone and may impose a
different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may
also define categories of businesses based upon the degree of benefit that each will derive from the improvements or
activities to be provided within the district and may impose a different assessment or rate of assessment on each
category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant
to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the
distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property-
based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622.
36629. Provisions and procedures applicable to benefit zones and business categories
All provisions of this part applicable to the establishment, modification, or disestablishment of a property and
business improvement district apply to the establishment, modification, or disestablishment of benefit zones or
categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of
business, follow the procedure to establish, modify, or disestablish a property and business improvement district.
36630. Expiration of district; Creation of new district
If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of
Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
36631. Time and manner of collection of assessment; Delinquent payments
The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by
the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the
same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and
penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be
charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses;
Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit
to the real property within the property and business improvement district. The city council may classify properties
for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the
businesses within the property and business improvement district. The city council may classify businesses for
purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this
part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not
to benefit from the improvements and service funded through these assessments, and shall not be subject to any
assessment pursuant to this part.
3.E.a
Packet Pg. 91 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 25
September 29, 2016
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the
action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to
Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after
the entry of judgment.
36634. Service contracts authorized to establish levels of city services
The city council may execute baseline service contracts that would establish levels of city services that would
continue after a property and business improvement district has been formed.
36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any
modification of the management district plan shall be made pursuant to this chapter.
36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention;
Modification of improvements and activities by adoption of resolution after public hearing
(a) Upon the written request of the owners’ association, the city council may modify the management district plan
after conducting one public hearing on the proposed modifications. The city council may modify the improvements
and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution
determining to make the modifications after holding a public hearing on the proposed modifications. If the
modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623.
Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at
least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before
the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public
hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the
resolution of intention.
36637. Reflection of modification in notices recorded and maps
Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant
to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments
(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated
cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to
Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds,
under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with
Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7
of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the
issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as
necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified
in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements,
specify the number of annual installments and the fiscal years during which they are to be collected. The amount of
debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over
30 years.
3.E.a
Packet Pg. 92 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 26
September 29, 2016
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond
issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely
retirement of the debt.
36650. Report by owners’ association; Approval or modification by city council
(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which
assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities
described in the report. The owners’ association’s first report shall be due after the first year of operation of the
district. The report may propose changes, including, but not limited to, the boundaries of the property and business
improvement district or any benefit zones within the district, the basis and method of levying the assessments, and
any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name,
specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the
following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any
benefit zones or classification of property or businesses within the district.
(2) The improvements, maintenance, and activities to be provided for that fiscal year.
(3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or
business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or
business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied
pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular
contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and
36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an
authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any
commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements and activitites
The management district plan may, but is not required to, state that an owners’ association will provide the
improvements, maintenance, and activities described in the management district plan. If the management district
plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide
services.
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit
(a) Any district previously established whose term has expired, or will expire, may be renewed by following the
procedures for establishment as provided in this chapter.
(b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the
sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes
additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit
only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses
included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of
these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds,
until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments,
improvements, or activities of a renewed district be the same as the original or prior district.
36670. Circumstances permitting disestablishment of district; Procedure
3.E.a
Packet Pg. 93 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 27
September 29, 2016
(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness,
outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by
resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in
connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may
request disestablishment of the district. The first such period shall begin one year after the date of establishment of
the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the
establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon
the written petition of the owners or authorized representatives of real property or the owners or authorized
representatives of businesses in the 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.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing
required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place
of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the
assessments levied within the property and business improvement district. The notice of the hearing on
disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner
of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not
less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not
more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district;
Calculation of refund; Use of outstanding revenue collected after disestab-lishment of district
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all
outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the
revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses
then located and operating within the district in which assessments were levied by applying the same method and
basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or
expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and
activities specified in the management district plan.
(b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was
used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of
any refund.
3.E.a
Packet Pg. 94 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 28
September 29, 2016
APPENDIX 2 – ASSESSED BUSINESSES
BUSINESS NAME BUSINESS MAILING ADDRESS
Bayside Hotel 2001 Ocean Avenue, Santa Monica, CA 90405
Best Western Plus Gateway Hotel
Santa Monica
1920 Santa Monica Boulevard, Santa Monica, CA
90404
Cal Mar Hotel Suites 220 California Avenue, Santa Monica, CA 90403
Comfort Inn Santa Monica-West Los
Angeles
2815 Santa Monica Boulevard, Santa Monica, CA
90404
Days Inn Santa Monica/Los Angeles 3007 Santa Monica Boulevard, Santa Monica, CA
90404
DoubleTree Suites by Hilton Hotel
Santa Monica
1707 Fourth Street, Santa Monica, CA 90401
Fairmont Miramar Hotel & Bungalows 101 Wilshire Boulevard, Santa Monica, CA 90401
Hotel Carmel 201 Broadway, Santa Monica, CA 90401
Hotel Cassa Del Mar 1910 Ocean Way, Santa Monica, CA 90405
Hotel Shangri-La at the Ocean 1301 Ocean Avenue, Santa Monica, CA 90401
Huntley Santa Monica Beach 1111 Second Street, Santa Monica, CA 90403
JW Marriott Santa Monica Le Merigot 1740 Ocean Avenue, Santa Monica, CA 90401
Le Meridien Delfina Santa Monica 530 Pico Boulevard, Santa Monica, CA 90405
Loews Santa Monica Beach Hotel 1700 Ocean Avenue, Santa Monica, CA 90401
Ocean Lodge Hotel Corporation 1667 Ocean Avenue, Santa Monica, CA 90401
Ocean Park Inn 2452 Lincoln Boulevard, Santa Monica, CA 90405
Ocean View Hotel 1447 Ocean Avenue, Santa Monica, CA 90401
Oceana Beach Club Hotel 11766 Wilshire Boulevard, Los Angeles, CA 90025
Palihouse Santa Monica 1001 Third Street, Santa Monica, CA 90403
Rest Haven Motel 815 Grant Street, Santa Monica, CA 90405
Santa Monica Motel 2102 Lincoln Boulevard, Santa Monica, CA 90405
Santa Monica Pico Travelodge 3102 Pico Boulevard, Santa Monica, CA 90405
Sea Shore Motel 2637 Main Street, Santa Monica, CA 90405
Seaview Hotel 1760 Ocean Avenue, Santa Monica, CA 90401
Shore Hotel 1515 Ocean Avenue, Santa Monica, CA 90401
Shutters on the Beach Hotel One Pico Boulevard, Santa Monica, CA 90405
The Ambrose Hotel 1255 20th Street, Santa Monica, CA 90404
The Cottage Santa Monica 2219 Ocean Avenue, Santa Monica, CA 90405
The Georgian Hotel 1415 Ocean Avenue, Santa Monica, CA 90401
The Hotel California 1670 Ocean Avenue, Santa Monica, CA 90401
Viceroy Santa Monica 1819 Ocean Avenue, Santa Monica, CA 90401
Wyndham Santa Monica – At The Pier 120 Colorado Avenue, Santa Monica, CA 90401
3.E.a
Packet Pg. 95 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SMTMD Management District Plan 29
September 29, 2016
APPENDIX 3 – BENEFIT STUDY
3.E.a
Packet Pg. 96 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
SANTA MONICA TRAVEL & TOURISM
ANNUAL PROGRAMS AND SERVICES
July 1, 2021 – June 30, 2022
3.E.a
Packet Pg. 97 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
2
Executive Summary
Dear Santa Monica Community and Tourism Business Partners,
I write this today on behalf of the entire Board of Directors, Tourism Marketing Committee and
Santa Monica Travel & Tourism staff members, as we are beginning to emerge from a global
pandemic. As most travel was halted last year and remains so, it is no surprise that the U.S.
Travel industry has taken a mighty blow, $500 billion loss in travel spending has cost the U.S.
$1.1 trillion in economic output. Prior to the pandemic, direct travel jobs accounted for 6% of the
workforce and total travel-supported jobs accounted for 11%. But in 2020, direct travel jobs
accounted for a disproportionate 35% of jobs lost and total travel supported jobs accounted for a
staggering 65%. The effects have been felt right here at home with an estimated 50% loss across
the board in unemployment and revenues. However, we are an industry of strength and remain
focused on our recovery. Vaccines are being issued at a greater pace and the future looks more
promising than it has in over a year. Our community is strong and the experiences we offer in
Santa Monica will continue to lead us on this winding road to recovery. It will take much work,
asking the hard questions while providing a clear but flexible strategy moving ahead. We are
optimistic but also realistic as we present our fiscal year operational plan, covering July 1, 2021
through June 30, 2022.
Coronavirus is unfortunately the newest of the challenges facing the tourism industry this year. In
2019, Santa Monica, like many U.S. and California travel destinations were experiencing a
moderate hotel occupancy decline reflecting in lower overall visitor spending. There are a number
of economic and political factors that have shaped the travel situation for both domestic and
international visitors. Santa Monica’s tourism industry will experience a shift as a result, while we
continue to have barriers in allowing international travel into the country. This will change of
course, over time, but with our origin of visitation derived from nearly 50% international, a pivot is
required for the short term to focus on and draw from audiences in our local, regional, in-state
and surrounding state markets. It is important for our long-term strategy, that we keep our
representation and relationships in our top producing international markets strong which will allow
us to move efficiently as international borders reopen.
Our response in these uncertain times includes continual monitoring and analyzing of traveler
sentiment, to be nimble and responsive to local, regional and global market trends, while
considering how the destination will serve and retain its residents and focus on safely attracting
future visitors. In 2020 Santa Monica Travel & Tourism, with the support of the City of Santa
Monica, residents, business and community leadership, completed the Santa Monica Experience
Management Plan (SMEP) which outlines 8 strategies to optimize the Santa Monica experience
of our residents and visitors by 2030, therefore helping to preserve Santa Monica’s quality of life.
The SMEP will remain a priority in the recovery process of the tourism industry along with the
city’s Economic Recovery Task Force, Chamber of Commerce and Downtown Santa Monica
priorities to help guide and support implementation of those strategies for overall destination
success.
3.E.a
Packet Pg. 98 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
3
Tourism has been one of the most significant local contributors to Santa Monica's thriving and
sustainable economy and Santa Monica Travel & Tourism has tracked tourism since 1983. In
2019, visitor spending was nearly $2 billion dollars with transient occupancy tax generating over
$58 million into the City of Santa Monica’s general fund, providing for essential city services
including police and fire, parks, libraries, education and road improvements. But tourism, as we
are seeing right now, is not invincible.
In 2020, Santa Monica’s vital tourism industry suffered - along with almost everywhere else - the
impacts of the unprecedented COVID-19 pandemic. The steep declines in 2020 were especially
stark coming off record years of 2018 and 2019. Overall, 2020 visitor volume of 2.0 million fell by
76% from 2019. With daily per-capita spend down by 10%, and the anemic visitor volume, 2020
visitor spending totaled $453 million, off by 76% from $1.89 billion in 2019. These decreases
impacted visitor supported taxes; lodging tax slipped 68% and visitor retail taxes fell by 78%.
Thus, visitor spending supported just 3,100 local jobs in 2020 versus 12,010 in 2019. Of note,
international and domestic volume changed places, with domestic share rising to 75% and
International at 25% of total Santa Monica visitation and 29% of total spending It will take further
investments, partnerships, flexibility and innovation to ensure our valuable employees are back
to work, and that our much-needed tourism revenues are flowing into the city’s coffers once again.
More than ever, we must get back to basics and offer a safe and clean experience to those who
live, work and visit here. To encourage innovation in our city and the business community as it is
crucial to our future success. The importance of working together to provide diverse, compelling
and memorable destination experiences for our residents and visitors cannot be understated. The
competition will be fierce, with most destinations trying to attract the same visitor and we will need
one another in our destination to support and to motivate. As we have learned from past crisis
and disruptions, if we work together, we can emerge from this crisis stronger. We are up for the
challenge and ask you to join us!
In gratitude,
Misti Kerns
President/CEO
Santa Monica Travel & Tourism
3.E.a
Packet Pg. 99 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
4
One Plan, Two Funding Sources
While Santa Monica Travel & Tourism has two funding sources, SMTT is one organization
that works from one strategic plan. The SMTT Board of Directors and the SMTMD Hotel
Committee developed a five-year strategic plan that runs from 2017 – 2022 so we’re
making strides in the initiatives identified in that plan while remaining nimble and
conscious of the need to continually respond to shifts in the travel industry and the
community. While the needs, programs and markets may shift, our 5 strategic areas of
focus or “lanes of work” remain the same:
1. Drive Balanced Demand for the Destination
2. Enhance the Brand and Steward the Destination Experience
3. Champion the Value of Tourism
4. Strengthen Strategic Partnerships and Relationships
5. Ensure Operational Excellence
This annual work plan details our initiatives and programs according to the above
strategic areas of focus. The following provides an overview of our funding sources and
our expenditures according to our various departments. Further details on City-funded
programs are outlined for reference.
Destination promotion acts as a catalyst of economic development. SMTT’s purpose is to
build, protect and promote Santa Monica’s brand and international reputation, creating
familiarity to attract decision makers and new investments and to help local businesses
expand their global reach. Destination promotion helps sustain and create additional jobs
and economic growth for the city helping to improve the quality of life for Santa Monica
residents.
When the Santa Monica Tourism Marketing District was established in 2013, it was never
meant to replace City funding. It was meant to demonstrate public private partnership
between the City of Santa Monica and the hotel community offering a unique approach
of increasing employment, taxes and revenues.
There are hundreds of Santa Monica businesses (beyond our hotels) who directly benefit
from a strong visitor base. City funding ensures the promotion of and provides
opportunities for those local businesses to reach and serve that visitor base. Small
businesses are some of the most dependent on us as they often are not able to represent
3.E.a
Packet Pg. 100 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
5
themselves and reach domestic and international visitors to stimulate visitor spending
right here at home.
City funding permits us to serve 8 over million visitors once they are in our community,
steer them to our businesses in every neighborhood and to communicate local ordinances
and public safety tips to ensure they enjoy their Santa Monica experience responsibly.
Having a strong, stable base of city funding allows SMTT to utilize its Tourism Marketing
District funding to maintain a consistent presence in top producing domestic and
international markets while beginning to establish brand awareness in strong emerging
markets as they are identified moving forward.
FUNDING SOURCES 2021-2022
City Contract,
$2,832,380
City Other Income,
$2,640
City Retail Revenue,
$41,000
TMD Collections,
$4,424,509
Funding Sources
City Contract City Other Income City Retail Revenue TMD Collections
3.E.a
Packet Pg. 101 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
6
CITY FUNDS 2021-2022
Marketing, $383,142
Visitor Services, $186,778
Client Services,
$169,871
General & Administrative,
$762,045
Salaries & Benefits,
$1,339,684
Fixed Asset, $37,000
City Funds
Marketing Visitor Services Client Services General & Administrative Salaries & Benefits Fixed Asset
According to a 2018 survey among
destination marketing organizations across
the United States and Canada, the average
allocation of total annual budget toward
salaries and benefits is 38%. SMTT is
currently under industry standard at 31%
(combined with TMD funds) due to COVID-
19 layoffs in 2020. Staffing costs will
increase by 6-8% over the next 1-2 years.
3.E.a
Packet Pg. 102 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
7
City Funding Specific Programs & Services by Department
Marketing
• Research and Economic Impact Report – conducted quarterly and annually,
weekly tracking of hotel performance
• Community sponsorships examples (Covid responses signage, face masks,
Business Improvement District activities ICE at Santa Monica, 4th of July Parade,
Summer, Soulstice, Pier events, cultural installations, Buy Local Most Loved,
Sister City Association, Santa Monica Police Activities League, Chrysalis, Local
youth music groups, etc.)
• Partnership with City of Santa Monica to co-lead the development of Santa Monica
Shared Identity, which will include research support and campaign development
• Founding partner and promotional lead for Santa Monica Shines Assurance
Program
• Buy Local Santa Monica (SMTT is a member of the Buy Local Executive
Committee and we look forward to continued support and co-op programs to
promote local businesses
• Traveler and resident outreach - local education/advertising campaigns (promoting
Visitor Centers, car-free messaging, sustainability, public safety, local ordinances,
economic impact, etc.)
• Production and Distribution of Official Visitor Guides and Official Visitors Maps
within Santa Monica and across California Note digital will be expanded and print
is under review due to covid-19 impacts and business closures.
• Free programs for local businesses to promote their season special offers to local
and regional audiences
• Partner Portal allows for businesses to have a free customizable landing page on
SantaMonica.com
• Roundtable Education Sessions for local businesses
• Search engine optimization to drive organic traffic to SantaMonica.com
• Act as the central source of information to inform, educate, and advise visitors,
travel, trade, and media about the overall visitor experience that Santa Monica has
to offer
• Build Awareness of Santa Monica as an attractive and unique travel destination
• Expand Santa Monica’s ability to compete for groups by advising and supporting
group marketers
3.E.a
Packet Pg. 103 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
8
• Review, from time to time, the facilities and services, both public and private, in
Santa Monica necessary to support travel and tourism activities and advise the city
and the business Community of problems and needed improvements for support
of such activities
• Provide client services as needed for conference groups
• Provide virtual and printed collateral pieces
• Cooperate with the city to utilize City facilities to the fullest extent feasible and to
assist and explore opportunities to expand and improve existing products and
services in the city
• Promptly answer all correspondence relative to convention and visitors’ facilities
and points of interest in Santa Monica and disseminate information by
correspondence and media publicity with personal contacts favorably advertising
such advantages and opportunities
• Promote travel and tourism activities that will bring additional revenue to the city
and to businesses within the city
• The Annual Tourism Summit, which is a gathering of business, civic and non-profit
organizations to share information and celebrate the positive impacts of tourism in
our community.
Visitor Services
• Operational costs to operate 3 Visitor Center locations (4TH location on hold due to
Promenade 3.0), including a mobile visitor center which serves at community and
domestic events. Our visitor center staff provides information and services to
residents and many of Santa Monica’s 8 million annual visitors.
• “The I am Santa Monica” program, will be expanded to include a virtual, interactive
workshop designed to encourage and empower Santa Monica residents,
businesses and their employees and those searching for employment to become
better informed about Santa Monica and all it has to offer.
• Serves as a point of contact and distribution for items made available to Santa
Monica businesses and its residents.
3.E.a
Packet Pg. 104 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
9
LANE 1: Drive Balanced Demand for the Destination
In order to drive balanced demand for the destination, all programs and campaigns are
rooted in 5 key sales and marketing strategies:
1. Build Destination Awareness Among Consumers
2. Engage and Inform the Travel Trade
3. Influence Decision-makers for Targeted Meeting and Incentive Business
4. Drive Business During Need Periods
5. Leverage Strength of Visit California, Los Angeles Tourism and Brand USA
SMTT will gage success in its efforts according to these Key Performance Indicators:
Destination Performance
• Occupancy
• Average Daily Rate
• Revenue Per Available Room
• Visitor Makeup (% Domestic vs. International)
• Transient Occupancy Tax Generated
• Tourism Marketing District Collections
• Employment sustained in our industry
SMTT Programs Performance
• Room Nights Booked During Campaigns
• Website Traffic and Links out to Partner Websites
• Incentive and Meetings Business Booked
• Travel trade contracts and bookings
• Overall economic growth year over year
Travel Trade- International & Domestic Markets
If there’s one thing planning during a pandemic has taught us, it’s to remain flexible,
nimble, and ready to jump the minute we see an opportunity. As we began to reinvest in
the international markets in April of 2021 (and spent most of last year building a robust
domestic campaign), the stage has been set for a leisure travel comeback that should
see some gains in the coming year.
For the next six months, we’ll be watching closely the factors that would directly impact
bookings: flight schedules, border openings, Los Angeles regional and state measures,
virus outbreaks, vaccine rollouts, traveler sentiment, quarantine measures, rapid testing
availability at airports/hotels, and federal CDC and global WHO guidelines.
3.E.a
Packet Pg. 105 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
10
Our new 2021-22 calendar-year begins with the world slowly emerging from a global
pandemic that has forced seasoned travelers to stay at home, cancel or postpone
vacation and business trips, kept us from our friends and family and given us plenty of
time to dream about our next trip. As the vaccine rollout picks up speed and international
borders begin to open, news outlets around the world are reporting of pent-up demand in
our feeder markets.
Below is the plan framework we have envisioned executing this year, beginning with some
global international efforts along with a renewed domestic focus, with a slow reopening
of our international offices starting April 1, 2021. As we start to recover and funding begins
to return, from July 2021 on we will look at increasing our international efforts focusing on
markets that have the fastest rebound and where our presence will affect the quickest
response from travelers to visitation. All areas below are based on available budget
permitting and will be analyzed twice a month through the recovery.
International Update
All of our international offices were put on pause as of March of 2020. During that time
and due to those strong relationships with our partners, we continued to receive data on
a weekly basis from each office (United Kingdom, France, Germany and India) with
updates on travel agencies, airline performance and routes, virus spread, testing and
vaccine roll out information.
On April 1, 2021, we will reopen the international offices and will be, budget permitting
expanding into more North American feeder markets like Canada & Mexico, all based on
the factors listed above that we are closely monitoring. We are well aware that our
typically more profitable markets (like Canada and Australia) may not recover or even
open at the same time as our secondary markets, but we will remain ready to evaluate
and engage as opportunities arise.
Primary International Markets:
• United Kingdom & Ireland
• Australia &New Zealand
• Canada
Secondary International Markets:
• Germany
• France
• India
• Mexico
3.E.a
Packet Pg. 106 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
11
Looking ahead, we know that the luxury travel has traditionally been and is poised to be
the market that will rebound the fastest, and we are well-positioned to take full advantage
of this. We are planning a promotional and sales program focused on the Canadian and
Mexican markets, assessing our international footprint and including a domestic-focused
approach, and leaning on online travel agencies globally. It’s important to remember that
our international visitors stay longer with us, spend more in market, utilize public transport
and do not change travel plans based on inclement weather forecasts which helps to
insulate us from any local or regional downturn.
Nothing is “off the table” as we reevaluate each contract, market, program and
scope of work, making sure that when the time is right, we are poised to strike
strategically, efficiently and with enough bandwidth and force to ensure
influencing travel back to Santa Monica.
To leverage Visit California and Los Angeles Tourism’s efforts, SMTT will also continue
to conduct exploratory activities toward markets with potential growth for Santa Monica,
including UAE, as well as looking into part-time representation with a focus on luxury in
Canada, Australia, Mexico and Brazil. Activities may include participation in or cultivating
our own sales missions, familiarization trips catered to travel trade and industry training
forums.
We are also planning that when borders reopen, we will once again engage our
international clients in their home markets, with planned travel trade activities in Germany,
Dubai, France, and the United Kingdom.
Domestic Update
We spent the majority of last year engaging with a number of domestic producers that
took the accomplishments we had on the international fronts and converted them to
domestic gains. A major campaign with national and global wholesaler Hotelbeds is
already in play with a program focused on a 6-month sales incentive rollout across the
country and backed by Visit California. Concurrently, we are also in talks with leading tour
operator ATI to capitalize on their relationship with AAA offices across the country, and
exploring sales programs with Bonotel, United Airlines, American Express Fine Hotels &
Resorts, and other Southern California partners.
We have a solid plan in place with the largest network of domestic luxury travel agents,
Virtuoso, as well as other consortia of agents including Travel Agent Magazine and its
show in Las Vegas, GTM, Traveler Made and Private Luxury Events domestic program.
We are planning a combination of trade shows, virtual and in-person events, training
3.E.a
Packet Pg. 107 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
12
programs, familiarization tours (FAMs), direct mail and social campaigns for domestic
agents to keep us engaged in the domestic market.
Also of note is our ongoing relationship with Connect Travel, which allows us to meet with
top leisure and MICE (meetings, incentive, conferencing and exhibitions) clients, both
domestically and globally, through one-on-one virtual and in-person appointments.
The current trend is a much shorter booking window, to pivot to this consumer we are
also looking into programs to drive short term hotel stays among domestic travelers.
Coming off the success of domestic campaigns last year, we are exploring additional
programs with Travelzoo, TripAdvisor, AAA, and other Visit California in-state co-ops.
Additionally, our successful domestic partnership with United Airlines will dovetail
perfectly into larger, broader campaigns in our international feeder markets as borders
reopen.
SANTA MONICA MEET
The meetings and events sectors have remained shuttered since March of last year.
Currently California is the last state in the nation to allow any form of meetings to be held.
This has resulted in group bookings to move to other states costing business now but
also for the future as many groups will book 2-3 years in advance. As we emerge from
the wide felt spread of the pandemic no health guidelines have been released for
meetings regardless of size by the state or the county of Los Angeles. We have been
receiving a small fraction of the number of RFPs previously received. We will continue to
offer fair-share opportunities to stakeholders and pursue this important market when
permitted.
Just prior to the start of the pandemic, Santa Monica’s Group Sales Team launched a
new suite of MICE resources called “Santa Monica Meet.” This will be the cornerstone in
positioning Santa Monica as the premier meetings and incentive beach
destination. “Santa Monica Meet” assets include a microsite, mobile app and videos
showcasing hotels, restaurants, venues and activities tailored to groups in our beach
city.
Santa Monica’s Group Sales Team will continue to leverage these assets and exhibit at
key tradeshows and events to engage meeting professionals when the time is right, but
for now most shows and events have moved to a virtual format or been canceled. Funding
this year will allow us to meet planners when and where they are ready to meet us, bring
FAMs back to the area once we are allowed, continue to reach out to meeting planners
with mailers and special offers to keep Santa Monica relevant and top of mind in the
industry.
3.E.a
Packet Pg. 108 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
13
The Group Sales Team will also continue its year-round presence on Cvent, which is the
top resource used by meeting planners for posting RFPs. The team will lead strategic
partnerships with HelmsBriscoe, Conference Direct, GMID, Site SoCal and Hospitality
Performance Network (HPN) which provides an excellent opportunity to network with top
global meeting professionals, partake in training opportunities, and attend industry-led
events resulting in stronger relationships and more definite group room bookings.
Lane 2: Enhance the Brand and Steward the Destination Experience
SANTA MONICA EXPERIENCE MANAGEMENT PLAN
SMTT was just about to begin larger community outreach and implementation of the
Santa Monica Experience Management Plan when COVID-19 hit. While the outreach and
implementation plan for the SMEMP were put on hold due to the pandemic, the
community actually started making strides according to the 8 strategies with its work on
the Economic Recovery Task Force and other efforts from the business improvement
districts and Chamber of Commerce.
SMEMP 8 Strategies
1. Support and enhance Santa Monica’s most important facets
2. Highlight and leverage cultural and historic experiences
3. Foster memorable accommodation experiences that enhance the value
proposition
4. Promote a diversity of retail, dining and evening experiences
5. Support livability for Santa Monica residents
6. Facilitate the viability of small and unique businesses
7. Enhance mobility for visitors and residents
8. Ensure Santa Monica continues to be a clean and safe place
In FYE’22, SMTT will catalog the progress made out of necessity during the pandemic
and identify longer term projects surrounding these strategies with stakeholder groups.
SHARED IDENTITY INITIATIVE
Last fiscal year, SMTT partnered with the City of Santa Monica to create a citywide shared
identity, a roadmap for various community organizations to utilize in their outreach efforts.
SMTT anticipates that this shared identity will lay the foundation for SMTT’s own brand
refresh, which will serve to re-introduce (post Covid) Santa Monica as a travel destination
of choice. This will include exploring a new or revised Brand Promise, logo, advertising
campaigns, brand partnerships, design style guide, collateral, photography and more.
3.E.a
Packet Pg. 109 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
14
SANTAMONICA.COM
While SMTT continues to receive positive feedback on the design and functionality of
SantaMonica.com, the site was built six years ago. In order to remain competitive in this
digital world we must adapt to the latest technologies and upgrade the usability and
the utility, not just the visual design. SMTT will work with its digital agency Noble Studios
to build a new SantaMonica.com that will focus on providing a branded experience for our
potential customers with additional free opportunities for our local businesses to gain
exposure to a wider audience by amplifying spaces for video, photography, blog posts
and user generated content while remaining search engine optimized. We will look to
deploy the new website in 2022 as part of the overall destination brand refresh.
This year SMTT will leverage data from a new research partner, SeeSource to ascertain
geographic target markets that make the most sense for future domestic visitation. SMTT
will also take learnings from the two Santa Monica Shines paid media campaigns that
were launched last fiscal year in terms of the best channels for paid media investment.
The new data from SeeSource will also complement STR data in determining what travel
patterns look like as more folks are vaccinated and if we should continue focusing our
budget on driving shoulder season business, mid-week business, or a more year-round
format.
VISITOR CENTERS
Santa Monica Travel & Tourism in FY 2021/2022 will operate 3 Visitor Information
Centers as well as our mobile Visitor Center in the City of Santa Monica. The 4th location
on Third St. will close temporarily and a new presence on the Promenade will be
determined with the Promenade Vitality Project. We are available to assist our Santa
Monica visitors 365 days a year and serve as a safe haven and resource center when the
need arises. All of our Visitor Information Centers provide:
• friendly, trained and knowledgeable Travel Specialists
• complimentary Official Santa Monica Maps, Visitor Guides and Street Art Guides
• information on restaurants, attractions, hotels, dining, museums, galleries,
entertainment and local ordinances etc.
• Text on demand for visitor information
• Santa Monica themed retail products such as postcards, key chains, magnets,
hats, t-shirts, sweatshirts and books about Santa Monica
• Distribution of local clean up kits for residents and visitors to help keep beaches
and neighborhoods clean
With the addition of the online shop, https://santamonica.myshopify.com/ we have grown
3.E.a
Packet Pg. 110 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
15
our retail sales where locals and potential or former visitors may place retail orders from
our online shop worldwide. We will further engage our hospitality and business partners
and offer bulk ordering for Santa Monica themed products retail items
CONTENT AND SOCIAL MEDIA
Santa Monica is a destination that welcomes all. Before the pandemic upended
international travel, one could walk down Third Street Promenade or Santa Monica Pier
at any point in the year and hear a number of accents and languages spoken. Our
community is surrounded by Los Angeles, which is one of the most diverse cities in the
country. However, this past year, our community faced the truth that it’s business
community and residential community is not as diverse as its visitors. We will work in
partnership with the City of Santa Monica to support the Black Agenda. We will also
ensure diverse voices are amplified and represented in the content we deploy, whether
that is advertising campaigns, social media, photos, video content and blog posts. We will
also ensure that as we hire video production companies, photographers, writers and
content creators that they are based in Los Angeles and represent a diverse group of
talent.
SMTT will continue to work with freelance writers to develop timely articles and blog posts
to ensure content on SantaMonica.com is attracting organic traffic, addressing visitor
needs, highlighting small businesses and how the destination is on the cutting edge of
travel, culinary and shopping trends.
Last year, SMTT created two new video series to show our audience what Santa Monica
looks like in a state of sector re-openings and to utilize the voices from local business
owners to share tips for how to dine, shop and stay active safely during the pandemic.
This year SMTT will identify content creators based in Los Angeles to create new video
content and to also leverage their audiences for further earned awareness. We will also
work in partnership with the Business Development team and our local hotels to identify
what type of video content is needed to attract meetings, incentive and conference,
business and international leisure.
SMTT is currently gathering partner input from our partners on how best to approach the
Official Santa Monica Visitors Guide and Official Santa Monica Visitors Map. We
anticipate that a slower 2020 tourism season will allow us to keep our current pieces,
which normally last a full calendar year, in distribution an additional 6 months. We’re
hoping that this will give our local businesses time to recover and identify unique and
affordable advertising opportunities for them. We may also explore a model where the
printing of these pieces is offset by a few large sponsors and advertisers rather than
relying on a traditional advertising sales model. SMTT will continue to proactively
distribute the guides and maps to hotels and attractions within Santa Monica and
3.E.a
Packet Pg. 111 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
16
throughout Southern California and out international offices but will also leverage
relationships with magazines in key target markets (Chicago, Dallas, Boston for example)
as well as expand our coverage to more distribution hubs (Seattle, Oakland, Monterey,
Vancouver and Tijuana airports, for example) to inspire our target audience to consider
Santa Monica for an upcoming trip.
SANTA MONICA RESTAURANT WEEK
Last year due to the pandemic, SMTT did not hold an annual Santa Monica Restaurant
Week. This year we will assemble a focus group of restaurant owners and chefs to identify
strategies for how we can best support our local restaurant partners, whether that’s from
ongoing programs, a signature annual event or seasonal specials. Visit California has
chosen not to continue with their annual California Restaurant month in January based
on feedback from the industry on the desire to provide more year-round programming
that could support wineries, breweries and culinary events. This gives SMTT more
flexibility in identifying the future of Santa Monica Restaurant week and SMTT’s
promotional efforts for our local restaurant industry with support and guidance from the
industry itself.
MEDIA RELATIONS
This year SMTT will focus on building back its media relations program with the help of
two new Communications team members. These new team members will build a media
relations strategy that responds to key trends identified by travel journalists:
• Sustainable travel
• Diversity, Equity and Inclusion
• Small Outdoor Meetings and Conferences or Hybrid Networking
• Private Experiences
• Strides in Travel Technology
• Outdoor adventures in big cites
• Deeper immersions into a destination
The Communications team will work in partnership with the Business Development team
to identify international markets that are ready to invest in public relations activities and
when to begin soliciting international press familiarization tours. Some markets may
warrant a full public relations agency of record arrangement, while others may simply
warrant one-time project fees to support in-market events or business development sales
missions. We will need to remain flexible throughout the recovery phase.
3.E.a
Packet Pg. 112 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
17
CRISIS COMMUNICATIONS
Last year was certainly a crash course in crisis communications due to the pandemic and
the civil unrest that unfolded in Santa Monica on May 31st. Both events drove a number
of learnings that can be applied to our crisis communications plan, including:
• SMTT’s participation in the Economic Recovery Task Force’s Communications
and Outreach Committee
• Creating an ongoing strategy for updating key contacts in our CRM system
• Identifying and optimizing proper communication channels for amplifying Official
City of Santa Monica public safety information
• Utilizing our Visitor Center location as a place for community members or
businesses to pick up materials and resources
• Making statements on behalf of the organization as it relates to activism
This year, SMTT will continue to update its crisis communications plan on a quarterly
basis and add new holding statements as new issues arise. As SMTT rebuilds its
communications staff, we will provide crisis and general media training for these
individuals as well as the SMTT leadership team and Chair of the SMTT Board of
Directors and Tourism Marketing District.
LANE 3: Champion The Value of Tourism
BOARD ENGAGEMENT
This year as SMTT revisits the Santa Monica Experience Management Plan, there will be
additional opportunities for our Board of Directors to further engage. SMTT will look to its
Board and TMD committee members to help raise awareness of the plan and its positive
impact to the community by sharing it with their colleagues, neighbors and the various
community organizations in which they’re involved. Areas will be identified for involvement
for each member via task forces according the 8 strategies identified in the Santa Monica
Experience Management Plan.
As SMTT will finish the 5th year of its 5-year strategic plan in at the end of this fiscal year,
we will plan to engage our Board of Directors and TMD committee to help us identify
priorities for SMTT and if we should look to create more short-term plans or create a new
5-year strategic plan.
This past year truly demonstrated how tourism contributes to a thriving sustainable Santa
Monica economy. In the absence of the millions of dollars that are contributed to the City
of Santa Monica via transient occupancy taxes and sales taxes generated by visitors, the
3.E.a
Packet Pg. 113 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
18
City of Santa Monica had to cut its staff and many non-essential programs. Our board
members have a unique opportunity to help their fellow residents more thoroughly
understand tourism’s important role in the quality of life for residents and economic
opportunities for businesses. SMTT will identify opportunities for members of its Board of
Directors to address myths about the tourism industry in speaking engagements in front
of community stakeholder groups such as the neighborhood associations and service
organizations. SMTT will also focus on continued board development opportunities,
including participation at industry conferences, familiarization tours, stakeholder meetings
and cultural exchanges.
SMTT’s leadership will continue to work in collaboration with the SMTT Board of Directors
and TMD Committee representatives to ensure engagement at both regularly scheduled
meetings with agendas focused on raising awareness of important projects and driving
discussion and feedback. The practice of electronic board member-focused
communication on months where there is not a regularly scheduled board meeting has
proven to be useful. SMTT will continue this practice in the year ahead to outline issues
of interest to board members.
COMMUNITY & CIVIC RELATIONS
SMTT will continue to be vocal advocates for the tourism industry, demonstrating the
importance and economic impact of tourism to the community, utilizing the following
channels, whether these events take place in person, virtually or a hybrid:
• Annual Tourism Summit
• Sponsorship of or some form of at:
o Buy Local Most Loved Ceremony
o COAST
o Downtown Santa Monica Holiday events/ICE
o OWL Event
o Main Street Holiday event
o Main Street Last Sunday event
o National Night Out
o New Heroes Celebration
o OPA 4th of July Parade
o Pico Boulevard Holiday event
o Police Activities League Recognition Dinner
o Santa Monica Pier 360
o State of the City
o Sustainable Quality Awards
o Art installations in various neighborhoods
3.E.a
Packet Pg. 114 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
19
• Extra Bedroom Program, annual offering of hotel discounts to residents over the
holiday season
• SantaMonicaTourism.com
• Seascape
• Speaking opportunities at City Council, Kiwanis Club, Rotary Club, Santa Monica
High School Career Day
• “Tourism Talks” column in Santa Monica Daily Press
SANTA MONICARES
Fundraising efforts will continue to be a focus of our non-profit organization. When
meeting restrictions are eased in late 2021 and early 2022, several in-person fundraising
events are planned.
In addition to fundraising efforts, Santa MoniCARES will continue to focus on serving the
homeless community by collecting unused toiletries to provide to those in need and
seasonal clothing and blanket drives in alignment with local nonprofit agencies.
To help further raise awareness of all the positive work being done in our local community,
Santa MoniCARES will also launch a new newsletter, Sea the Good. Good news makes
people smile, warms the heart and helps build a perspective that it’s not all bad news out
there. This newsletter will share the latest happenings across Santa MoniCARES various
efforts as well as other happy news from Santa Monica. Launching July 1, 2021.
TOURISM INDUSTRY LEADERSHIP
SMTT will continue to shine as a proactive member of the tourism industry and to share
best practices by leveraging membership with the following industry associations and
taking opportunities to serve on leadership committees, Board of Directors, speak at or
attend their annual conferences or submit SMTT projects for industry recognition:
• Brand USA
• California Travel Association
• Destinations International
• Destination Marketing Association West
• ETourism Summit
• Meeting Professionals International
• Society for Incentive Travel Excellence
• South by Southwest
• U.S. Travel Association’s Chairman’s Circle
• U.S. Travel Association’s Destinations Council Emerging Leader Program
3.E.a
Packet Pg. 115 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
20
• Visit California various leadership and committee roles
SMTT will also further leverage the strength of Visit California by aligning staff to Visit
California-led committees relevant to their positions:
• DMO CEO – Misti Kerns, President/CEO
• International – Brian Wright, Director of Business Development
• Brand and Content, Research – Kim Sidoriak, CMO
LANE 4: Strengthen Strategic Partnerships
As we navigate economic and political uncertainty, providing cost effective and
valuable programs for our partners is of critical importance. Our tourism business
partners look to SMTT to best represent the brand of Santa Monica and historically
Santa Monica Travel & Tourism generates over $250,000 of in-kind support and
$40,000 in Fairshare participation fees from tourism serving businesses to support
SMTT programs annually. These valuable contributions do not come
automatically. They come from ongoing dialogue and education with our tourism
business partners and from demonstrating a high standard of excellence and
engagement with our programs. To ensure our partners are aware of all of the
ways they can work with SMTT, our organization will utilize the following channels:
• General Managers Meetings
• Director of Sales and Marketing Meetings
• Roundtable Trainings and Discussions
• Partner Portal
• On-line descriptions, costs and registration for fair share opportunities
• Hospitality Networking Events showcasing new Venues
• Community Newsletter
• Focus groups and task force input
SMTT will also continue to solicit sponsorships for its Annual Tourism Summit as a way
to entirely offset program costs. This year the organization will collect feedback from
sponsors to identify opportunities for new and innovative offerings and increased
sponsorship revenues.
SMTT will also identify partners within the community and beyond the community to form
promotional partnerships. These partnerships may take the form of generating In-Kind
services or paid sponsorship of SMTT programs. SMTT staff will reach out to travel
endemic brands such as airlines and tour operators and will also look to Santa Monica-
based consumer brands to leverage their hometown pride and global reach.
3.E.a
Packet Pg. 116 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
21
SANTA MONICA SHINES ASSURANCE PROGRAM
Last fiscal year, SMTT partnered with the City of Santa Monica, Santa Monica College,
Arrow Up Training and Sustainable works to create the Santa Monica Shines Assurance
Program, which is free training program for Santa Monica businesses to navigate the
changing environment due to COVID-19. To date, almost 100 businesses have
completed the program to earn the Shines Assurance seal for their storefront. This year,
SMTT will continue to lead the promotional efforts for the program, focusing on raising
consumer awareness of the businesses who have earned the Shines Assurance seals.
Research shows that health and safety is a top priority for travelers, so it is imperative to
demonstrate our community’s commitment to following health protocols to protect
customers and employees.
I AM SANTA MONICA
“I Am Santa Monica" is an interactive business workshop designed to encourage and
empower Santa Monica residents, businesses and their existing and potential employees
to become better informed about Santa Monica and all it has to offer. The I am Santa
Monica Program will undergo a restructure from a strictly in person program to an
additional online educational portal designed to offer a level of efficiently and safety in a
post-Covid lifestyle.
We will continue to provide this free 2-hour interactive learning workshop and tour of
Santa Monica which has been designed specifically to inform and educate residents,
stakeholders and tourism serving employees of businesses in Santa Monica about the
destination with a focus on customer service and hospitality training. Trained individuals
become “Official information Ambassadors” and are armed with a database of facts,
figures, and “Did You Know” anecdotes about Santa Monica for use in customer
interaction.
With a number of new tourism serving businesses opening or soon to be open in the
destination, SMTT has a unique opportunity to engage new employees on the
destination’s brand and any local ordinances to better communicate responsible
visitation and travel. SMTT will continue to update the program materials based on
ongoing destination changes and local ordinances. While the success of the I Am Santa
Monica Program and its certification of nearly 3,000 frontline employees has made
excellent progress, we must always look for new ways to innovate and improve the
Santa Monica guest experience. SMTT will continue to outreach new businesses who
would benefit from training their staff on the program as it will be a video-based training
program to reach more employees without added operational costs.
3.E.a
Packet Pg. 117 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
22
I AM YOUR DESTINATION PROGRAM
The I am Your Destination Program will undergo a restructure from a strictly in person
program to an additional online educational portal designed to offer a level of
efficiently and safety in a post-Covid lifestyle. SMTT will continue to work with an
outside independent contractor to solicit the I am Your Destination program, which is
a framework for adapting I am Santa Monica to any tourism destination. SMTT is
proactively targeting United States destinations for potential purchase and utilizing
attendance at industry trade shows and forums to attract destination marketing
organizations to the program.
LANE 5: Ensure Operational Excellence
EMPLOYEE RETENTION
Santa Monica Travel & Tourism has prided itself as an organization that has recruited the
best and brightest in the tourism industry. Over the past year many of those talented
individuals were laid off due to the Covid 19 impacts. We have started to notify them that
we are rehiring, but many have found other employment. As we rebuild our team it is
important to note that while we have many employees, who have worked at SMTT 5+
years we are now a much smaller team going into next year. The main focus on Lane 5
for 2021-2022 will be retention and hiring of key positions in our sales, marketing and
visitor services departments. We plan on doing that by implementing the following
strategies and procedural updates:
Staffing: Each position was evaluated throughout 2020 to determine cross-
departmental project functionality. As we onboard new team members, we have
set new standards and functionality in each role. As TMD funds become available
and through additional PPP funds, we have begun the process of filling positions
in March 2020 with a plan to be fully staffed to pre-Covid levels by September
2022/23.
Onboarding and Orientation: We have improved our onboarding process for
every new hire to set them up for success from the very start. Going forward we
will focus on their role but also SMTT’s culture and how they can contribute and
thrive. We want day one to set the tone for the employee's entire tenure at SMTT.
All onboarding forms have transitioned to electronic to streamline the process and
provide additional efficiencies.
Company Culture: Going forward a hybrid work environment for some and
additional monthly team building activities are in place for all to keep a positive and
supportive work environment. Open door communications and individual staff
3.E.a
Packet Pg. 118 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
23
check-ins were vital in 2020 due to the lockdown, those methods continue to prove
successful in keeping our culture intact.
Annual Performance Reviews: Our annual performance review process is a
customized 12-month goal setting procedure. We’re looking to be proactive rather
than reactive with this approach. Employees will meet quarterly with their direct
reports to review quarterly goals to ensure they’re on track to meet their one-year
goals. Rather than looking backwards after a year, we are looking forward at
success.
Training & Development: Investing in employee professional development will
continue to be a high priority with educational opportunities and assigned
community engagement events to involve staff members with industry and
community networking.
Wellness Offerings: Budget permitting we will continue with our Wellness
Wednesday program along with more online educational options, healthy snacks,
field trips, meetings outside, ergonomic workspaces, bringing in nutritional
coaches and following the city’s lead on health and wellness.
EMERGENCY PREPAREDNESS
Another Lane 5 Focus for 2021/2022 will be re-examining our emergency preparedness
plan and updating as needed. The 2020 Covid pandemic set emergency plans in motion
and updates were made over the course of 2020. In addition, all new hires will be required
to sign off on our Covid-19 safety protocols and internal emergency preparedness plan.
Every employee will be Covid Assured certified via https://www.santamonica.com/santa-
monica-shines-assurance-program/. In addition, a minimum of 4 staff members are
certified via the City of Santa Monica’s Community Emergency Response (CERT).
We participate annually in California’s Great Shakeout; launching our Emergency
Outreach Cell Phone Contact System aptly named “Dial My Calls”. This voice
broadcasting system allows us to send voice message to an entire list of phone numbers
in seconds. We can also create a text message and send to everyone on our list. It allows
SMTT to keep track of responses and reply back with our 2-way SMS.
DMAP 4 YEAR CERTIFICATION –July 2021
Santa Monica Travel & Tourism has long been proud of its participation in the
Destination Marketing Accreditation Program (DMAP) through Destinations
International. This globally recognized program serves as a visible industry distinction
that defines quality and performance standards in destination marketing and
3.E.a
Packet Pg. 119 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
24
management. Organizations must re-apply to the program every 4 years and SMTT will
complete the application process in June 2021. The process includes submitting
documentation of over 110 rigorous standards including having a technology plan, an
updated crisis communications plan, a commitment to consumer research, adoption of
the DMAP code of ethics a formal annual audit along with a number of other standards.
3.E.a
Packet Pg. 120 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
25
END
3.E.a
Packet Pg. 121 Attachment: Attachment A. SMTMD Annual Report (4581 : SM Travel + Tourism – Adopt FY21/22 Proposed Budget and Work Plan)