SR 06-14-2022 3H
City Council
Report
City Council Meeting: June 14, 2022
Agenda Item: 3.H
1 of 5
To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Approval of Santa Monica Travel and Tourism Fiscal Year 2022-23 Budget
and Work Plan
Recommended Action
Staff recommends that the City Council approve the Santa Monica Tourism Marketing
District Fiscal Year 2022-23 Budget and Work Plan.
Summary
Tourism is essential to the City’s economic recovery and vitality. In 2012, in
partnership with local hotels, Santa Monica Travel and Tourism (SMTT) established
the Santa Monica Tourism and Marketing District (SMTMD). The purpose of the
SMTMD is to increase overnight room sales with targeted marketing and
promotions. 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 2022-2023 SMTMD Annual Report
(Annual Report) summarizes the SMTMD’s proposed programs and activities for
FY 2022-23, including the SMTMD work plan, budget, hotel report, and marketing
plan. Staff recommends that Council receive and approve the Annual Report in
accordance with the State laws governing tourism marketing districts.
Discussion
Under Streets and Highway Code Section 36650, the Santa Monica Tourism and
Marketing District (SMTMD) is required to prepare Annual Reports providing the
following information:
3.H
Packet Pg. 798
2 of 5
• 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,
• 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 2022-2023
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 2022-23
Revenues
Estimated TMD Assessments 5,224,108
Bank Interest 1,800
Total Revenues* $5,225,908
Expenditures
Cost of Programs
Travel Industry Sales 1,428,655
Marketing 1,464,072
Visitor Services
Meetings, incentives, conferences and
exhibitions
66,930
280,000
Client Services 5,000
General and Administrative Services 522,500
3.H
Packet Pg. 799
3 of 5
Salaries 1,197,546
Benefits & Payroll Taxes 261,205
Contingency Fund -
Total Expenses $5,225,908
Estimated Carry-over from Previous Fiscal Year $0
Estimated In-Kind Contributions $265,000
* This does not include $2,877,743 in City funding included in the FY 2022-23 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.
The SMTMD expenditures and services for FY 2022-23 are budgeted at $5,225,908
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 FY22/23 workplan continues to leverage Visit California and Los Angeles
Tourism’s efforts. SMTT will continue to reach and extend its presence into key
domestic California, border states, New York, Chicago, and Arizona and international
markets – the United Kingdom, Canada, Mexico, and the European Union – to
ensure Santa Monica is well positioned to attract a balanced and wide range of
visitors. Additionally, SMTT will explore re-engaging with the Australian and New
Zealand markets as airlift increases.
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
3.H
Packet Pg. 800
4 of 5
government entities to 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 2022-23 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 May 11, 2022. 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).
Attachment B
11/1/2016 Council adopted Resolution 11005 (CCS) extending the
SMTMD by nine and one-half years beginning on January 1,
2018 through June 30, 2027.
Attachment C
6/22/2021 Council approved the Annual Report for FY 2021-22
(Calendar Year 2022) representing the fifth report for the
SMTMD renewal term.
Attachment D
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
3.H
Packet Pg. 801
5 of 5
Prepared By: Nia Tang, Senior Development Analyst
Approved
Forwarded to Council
Attachments:
A. 2022-2023 SMTMD Annual Report
B. 12/11/2012 Staff Report (Web Link)
C. 11/01/2016 Staff Report (Web Link)
D. 06/22/2021 Staff Report (Web Link)
3.H
Packet Pg. 802
SMTMD Annual Report for Fiscal Year 2022 – 2023 Page 1 of 7 April 1, 2022
2022 – 2023 SMTMD Annual Report
Santa Monica Travel & Tourism
April 1, 2022
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 2022 – 2023
Submitted on April 1, 2022: ________
Enclosures:
Attachment A. 2022–2023 Budget
Attachment B. ADR Report for 2021
Attachment C. Tourism Marketing District Plan
Attachment D. 2022–2023 Programs and Services
3.H.a
Packet Pg. 803 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2022 – 2023 Page 2 of 7 April 1, 2022
Santa Monica Travel and Tourism
TMD Report Plan for Fiscal Year 2022 – 2023
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 2022 – 2023, there will be no changes in the boundaries of
the improvement district.
3.H.a
Packet Pg. 804 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2022 – 2023 Page 3 of 7 April 1, 2022
Section Two – Programs and Services for Fiscal Year 2022 – 2023
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: 2022–2023 Programs and Services.
3.H.a
Packet Pg. 805 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2022 – 2023 Page 4 of 7 April 1, 2022
Section Three – Approved Budget for Fiscal Year 2022 – 2023
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. 2022–2023 Budget. The 2022-2023 Budget was
presented to the SMTT Board of Directors on March 9, 2022, where the Board of Directors
approved the budget as presented unanimously. Minutes from the March 9, 2022, Board
of Directors Meeting adopting the 2022-2023 budget will be presented at the May 11,
2022, Joint Annual Board and TMD Committee Meeting. Following the May 18, 2022,
meeting, SMTT will forward the final minutes within 48 hours to the Economic
Development Department.
3.H.a
Packet Pg. 806 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2022 – 2023 Page 5 of 7 April 1, 2022
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 18,
2022, to vote on moving the July 1, 2022, assessment start date to January 1, 2023, along
with reviewing and voting on whether to increase the TMD collection rates. The proposed
assessment rates for calendar year 2023 are below:
Average Daily Rate Assessment Per Occupied Room Per Night
Proposed for January 1, 2023
Tier 3: $100-$199.99 $2.00
Tier 2: $200-$300 $5.50
Tier 1: Over $300 $6.50
See Attachment B. ADR Report for 2021. 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.H.a
Packet Pg. 807 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2022 – 2023 Page 6 of 7 April 1, 2022
Section Five – Carryover Dollars from Fiscal Year 2020-2021
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 were no TMD carryover dollars from fiscal year ending June 30, 2021.
The contingency balance for fiscal year ending June 30, 2021, was $367,439 (13.74% of
the annual funds per the SMTMD plan).
3.H.a
Packet Pg. 808 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
SMTMD Annual Report for Fiscal Year 2022 – 2023 Page 7 of 7 April 1, 2022
Section Six – Estimated In-Kind Contributions for Fiscal Year 2022-
2023
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 2022-2023 are $265,000.
These are additional contributions from local businesses (in-kind) towards programs and
services.
3.H.a
Packet Pg. 809 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
Santa Monica Travel Tourism
FISCAL YEAR 2022-2023 BUDGET SHEET
Confidential Financial Data
Revenues
City Contract Revenue $2,877,743 97.79%-$ 0.00%2,877,743$ 35.23%
Estimated TMD Revenue - 0.00%5,224,108 99.97%5,224,108 63.95%
Bank Interest 2,500 0.08%1,800 0.03%4,300 0.05%
Other Income 17,400 0.59%- 0.00%17,400 0.21%
Retail Revenue 45,000 1.53%- 0.00%45,000 0.55%
Total Revenues 2,942,643$ 100.00%5,225,908$ 100.00%8,168,551$ 100.00%
Cost of Programs
Travel Industry Sales -$ 0.00%1,428,655$ 27.34%1,428,655$ 17.49%
Marketing 288,142 9.79%1,464,072 28.02%1,752,214$ 21.45%
Visitor Services 131,054 4.45%66,930 1.28%197,984$ 2.42%
MICE - 0.00%280,000 5.36%280,000$ 3.43%
Client Services 152,000 5.17%5,000 0.10%157,000$ 1.92%
Total Cost of Programs 571,196$ 19.41%3,244,657$ 62.09%3,815,853$ 46.71%
General & Administrative 809,454$ 27.51%522,500$ 10.00%1,331,954$ 16.31%
Salaries & Benefits 1,524,993$ 51.82%1,197,546$ 22.92%2,722,539$ 33.33%
Contingency Fund -$ 0.00%261,205$ 5.00%261,205$ 3.20%
Fixed Asset 37,000$ 1.26%-$ 0.00%37,000$ 0.45%
Total Expenses 2,942,643$ 100.00%5,225,908$ 100.00%8,168,551$ 100.00%
Net Increase (Decrease)-$ 0.00%(0)$ 0.00%(0)$ 0.00%
City Contract TMD Total Budget
3.H.a
Packet Pg. 810 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District
LODGING TIER CLASSIFICATION
FOR SANTA MONICA TOURISM
MANAGEMENT DISTRICT
FOR
February 2022
3.H.a
Packet Pg. 811 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
1
February 28, 2022
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 2022.
The TMD was established by the City of Santa Monica to fund tourism marketing. The TMD
hotels collect a specified flat assessment per room night sold commensurate with their tier
based on their just completed calendar year annual Average Daily Rate (ADR), in this case for
2021.
Per our discussions with you and our understanding of the Santa Monica Tourism Marketing
District Management District Plan, and 2021 rate data, hotels within Santa Monica subject to
the TMD assessment are categorized as follows for the calendar 2022 assessment year:
Tier 1: Hotels with an annual average rate of $300.00 or more, to be assessed at a rate
of $6.25 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 $5.25 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 $1.90 per hotel room night sold.
Non-Assessed: Hotels with an annual average rate below $100.00
Our methodology consisted of reviewing and recalculating available and occupied rooms, and
revenues data for all Santa Monica hotels, from SMTT.
Of note, given the COVID-19 pandemic, many hotels operated at less than full availability and/
or at reduced room rates during some of 2021. However, unlike 2020 when many hotels were
______________________________________________________________________________
1041 S. Gramercy Drive, Los Angeles CA 90019
323-735-4464
www.lsconsult.com
3.H.a
Packet Pg. 812 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2
closed for extended periods, for 2022 all hotels are classified in the appropriate tier based on
their actual 2021 ADR performance.
Our determination of the appropriate tier category for 2022 for each of 41 Santa Monica
lodging properties is listed below.
Hotel 2022 Tier ADR 2021 Tier 2022 Result
Hotels to Stay in Same Tier in 2022 from 2021
Tier 1 - 12 Hotels with ADR $300+
Hotel Casa del Mar 1 $717.27 1 Stay in Current Tier
Cottage 1 N/a 1 Stay in Current Tier
Fairmont Miramar 1 $474.48 1 Stay in Current Tier
The Georgian 1 $291.09 1 Stay in Current Tier
JW Marriott 1 $335.67 1 Stay in Current Tier
Loews 1 $511.02 1 Stay in Current Tier
Oceana 1 $674.44 1 Stay in Current Tier
Palihouse 1 $366.70 1 Stay in Current Tier
Proper Hotel 1 $497.06 1 Stay in Current Tier
Shangri-La Hotel 1 $309.72 1 Stay in Current Tier
Shutters 1 $747.16 1 Stay in Current Tier
Viceroy 1 $392.47 1 Stay in Current Tier
Tier 2 – 8 Hotels ADR $200-299
The Ambrose 2 $299.69 2 Stay in Current Tier
CalMar 2 $210.04 2 Stay in Current Tier
Courtyard 2 $228.58 2 Stay in Current Tier
Hampton Inn 2 $211.15 2 Stay in Current Tier
Hilton Hotel 2 $293.12 2 Stay in Current Tier
Huntley 2 $297.36 2 Stay in Current Tier
Le Meridien 2 $272.48 2 Stay in Current Tier
Wyndham 2 $231.29 2 Stay in Current Tier
Tier 3 11 Hotels ADR $100-199
Hotel Carmel 3 $175.16 3 Stay in Current Tier
Comfort Inn 3 $158.75 3 Stay in Current Tier
Days Inn 3 $147.31 3 Stay in Current Tier
Gateway 3 $163.86 3 Stay in Current Tier
Ocean Park 3 $139.04 3 Stay in Current Tier
Palm Motel 3 $143.53 3 Stay in Current Tier
Rest Haven 3 $132.14 3 Stay in Current Tier
Santa Monica Motel 3 $139.59 3 Stay in Current Tier
Sea Shore Motel 3 $186.30 3 Stay in Current Tier
Sea View Motel 3 n/a 3 Stay in Current Tier
Sure Stay Best Western 3 $157.10 3 Stay in Current Tier
4 Hotels Move Up One Tier, to Tier 2 from Tier 3
Bayside 2 $211.84 3 Move up to Tier 2
Ocean Lodge 2 $222.18 3 Move up to Tier 2
3.H.a
Packet Pg. 813 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
3
Hotel 2022 Tier ADR 2021 Tier 2022 Result
Ocean View 2 $226.41 3 Move up to Tier 2
Sea Blue Hotel 2 $239.90 3 Move up to Tier 2
1 Hotel Moves Down One Tier, to Tier 2 from Tier 1
Shore Hotel 2 $250.24 1 Move down to Tier 2
Summary of All Hotels by 2022 Tier
Tier 1: 12 Hotels with a 2021 ADR of $300.00+
• Hotel Casa del Mar
• The Cottage Santa Monica
• Fairmont Miramar Hotel & Bungalows
• 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
• Viceroy Santa Monica
Tier 2: 13 Hotels with 2021 ADR of $200.00 to $299.99
• The Ambrose Hotel
• Bayside Hotel
• Cal Mar Hotel Suites
• Courtyard by Marriott
• Hampton Hotel
• Hilton Hotel (formerly Doubletree)
• The Huntley Hotel
• Le Meridien Delfina
• Ocean Lodge
• Ocean View Hotel
• Sea Blue Hotel (former Hotel California)
• Shore Hotel
• Wyndham Santa Monica at the Pier
3.H.a
Packet Pg. 814 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
4
Tier 3: 11 Hotels with a 2020 ADR of $100.00 to $199.99
• Hotel Carmel
• Comfort Inn
• Days Inn
• Gateway Hotel (former Best Western)
• Ocean Park Inn
• Palm Motel
• Rest Haven Motel
• Santa Monica Motel
• Sea Shore Motel
• Sea View
• SureStay Hotel (former Travelodge)
Data for five motels was not provided, and we assume this is due to an ADR below $100.00 and
therefore exempt from the TMD assessment for the current year.
• American Motel
• American Youth Hostel
• Holiday Motel
• Ocean Park Hotel
• Pavilions Motel
We appreciate your 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.H.a
Packet Pg. 815 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 816 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 817 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 818 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 819 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 820 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 821 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 822 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 823 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 824 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 825 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 826 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 827 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 828 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 829 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 830 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 831 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 832 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 833 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 834 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 835 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 836 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 837 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 838 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 839 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 840 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 841 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 842 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 843 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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.H.a
Packet Pg. 844 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
SMTMD Management District Plan 29
September 29, 2016
APPENDIX 3 – BENEFIT STUDY
3.H.a
Packet Pg. 845 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
SANTA MONICA TRAVEL & TOURISM
ANNUAL PROGRAMS AND SERVICES
July 1, 2022 – June 30, 2023
3.H.a
Packet Pg. 846 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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,
On behalf of the entire Board of Directors and Santa Monica Travel & Tourism staff, I feel
optimistic as we present our fiscal year operational plan, covering July 1, 2022, through
June 30, 2023. Public health mitigation efforts - while varied in approach and results -
have led to the loosening of restrictions that are opening travel domestically and, more
slowly, internationally.
We’ve come a long way over the past couple of years and while it appears that the worst
of the pandemic is waning, we are still seeing the effects of the economic crisis. Hiring
challenges, continued supply chain disruptions, diminished revenues, and an anticipated
slow return to travel from several countries due to ongoing quarantine requirements,
continue to impact our hotels, restaurants, attractions, retail establishments and daily
lives.
While our community continues to emerge from this crisis, one thing is clear. We are not
just recovering from the pandemic. In many ways, we’re all rebuilding. Total travel
spending in the United States fell from $1.17 trillion in 2019 to $680 billion in 2020 (42%
loss in spending). In 2021, total travel spending was anticipated to be $877 billion
reflecting a significant rebound which brings the optimistic outlook.
While we continue to monitor and analyze travel sentiment research, we need to be
responsive and nimble to local, regional, and global market trends as we focus on the
next 2-year period as the rebuilding phase.
There is hope around the corner as travel spending in the U.S. is forecasted to grow to
$1.06 trillion in 2022, with international spending anticipated to increase by more than
200% this year. This is good news as we at SMTT strive to have an estimated 50% of
visitation from international origin as these visitors stay longer, spend more, and use
public transportation while visiting.
We continue our reach and presence into key domestic California, border states, New
York, Chicago, and Arizona and international markets - the United Kingdom, Canada,
Mexico, and the European Union - to ensure Santa Monica is well positioned to attract a
balance and wide range of visitors.
3.H.a
Packet Pg. 847 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
3
Tourism continues to be a critical source of jobs and revenue that contributes to a thriving
and sustainable economy. Pre-pandemic, visitor spending was nearly $2 billion 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.
To ensure a strong, resilient, and vibrant Santa Monica, our internal work is just as
important as our external efforts. This year, Santa Monica Travel & Tourism, will begin
implementing the Santa Monica Experience Management Plan (SMEP) - a roadmap for
the future which outlines eight strategies to optimize the Santa Monica experience of our
residents and visitors by 2030 to preserve and enhance quality of life. The SMEP was
delayed due to covid-19 and will be reintroduced as many of the experiences we offer in
Santa Monica are continually evolving as our businesses and city rebuild services and
staffing.
This plan is a collaborative vision created with the support of the City of Santa Monica
along with business and community leadership. The SMEP will remain a priority as we
rebuild the tourism industry and guide implementation of those strategies for destination
success.
We look forward with optimism, but with reflection on the devastating impacts that come
with a global disruption. Rebuilding our community will take investments, partnerships,
innovation, and collaboration to ensure our businesses are strong, that jobs stay here,
and much-needed tourism revenues continue to support critical city services for our
residents and our visitors.
We’ve been challenged like never before, yet, working together - and believing in our
community and each other - will help us succeed. Offering a vibrant and thriving
destination experience for our residents and visitors is our shared priority.
We will rebuild together. That’s our Santa Monica way.
In gratitude,
Misti Kerns
President/CEO
Santa Monica Travel & Tourism
3.H.a
Packet Pg. 848 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 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 is supported through two funding sources, the organization
operates from one cohesive strategic plan. This year, our two-year rolling strategic plan will align
with the strategies in the Santa Monica Experience Management Plan that will provide a roadmap
for destination success through 2030.
During the challenges of the pandemic, we’ve had to remain 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 have shifted in response to emergent activity, our five strategic areas of focus
or “lanes of work” remain:
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 aligned
with our various departments. Further details on City-funded programs are outlined for reference.
Promoting the destination serves as a catalyst of economic development. Santa Monica Travel &
Tourism’s purpose is to build, protect and promote Santa Monica’s brand and international
reputation, attract decision makers and new investments, and help local businesses expand their
global reach. Destination promotion helps sustain and create additional local jobs that spur
economic growth in the city and improves the quality of life for Santa Monica residents.
When the Santa Monica Tourism Marketing District was established in 2013, it was not meant to
replace City funding. It was meant to demonstrate public-private partnership between the City of
Santa Monica and the hotel community, facilitating a unique approach to increasing employment,
taxes, and revenues.
There are hundreds of Santa Monica businesses (beyond our hotels) that directly benefit from a
strong visitor base. City funding ensures the promotion of those local businesses and provides
opportunities for them to reach and serve that visitor base. Small businesses are some of the
most dependent on us as they often are less able to gain high visibility themselves to reach
domestic and international visitors to stimulate visitor spending. This is more critical than ever as
we rebuild from the economic downturn.
City funding allows us to provide basic services to more than 8 million visitors once they are in
our community - to help steer them to our businesses in every neighborhood and communicate
local ordinances and public safety tips to ensure they responsibly enjoy their Santa Monica
experience; an area that will require further attention as visitation grows.
3.H.a
Packet Pg. 849 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
5
Having a base of City funding permits 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 additional markets including, but not limited to,
Canada, Mexico, Australia, and Scandinavia.
FUNDING SOURCES
City Contract, $2,822,094
City Other Income, $17,400
City Retail Revenue, $45,000
TMD Collections,
$5,224,108
Funding Sources
City Contract City Other Income City Retail Revenue TMD Collections
3.H.a
Packet Pg. 850 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
6
Marketing, $288,142
Visitor Services, $131,054
Client Services,
$152,000
General &
Administrative,
$753,805
Salaries & Benefits,
$1,524,993
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 on par
with the industry at 38% due to
COVID-19 loss of TMD income.
3.H.a
Packet Pg. 851 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
7
Programs and services utilizing city funding are outlined below by department:
Marketing
● Partnership with Visit California and Brand USA to take advantage of professional
meetings and events co-opportunities to further penetrate the Meetings, Incentives,
Conferences and Exhibitions (MICE) business, both domestically and internationally
● Research and Economic Impact Report – conducted quarterly and annually
● Continued community sponsorships based on past partnerships such as ICE at Santa
Monica, 4th of July Parade, Summer Soulstice, Buy Local Most Loved, Sister City
Association, Santa Monica Police Activities League, Chrysalis, local youth music groups,
and Santa Monica Restaurant Week
● Traveler and resident outreach through local education and advertising campaigns
promoting visitor centers, car-free messaging, sustainability, public safety, crisis
communications (as needed), messaging local ordinances, and economic impact
● Production and distribution of official visitor guides and official visitors maps within Santa
Monica and across California, domestic feeder markets, international offices, and trade
shows
● Free programs for local businesses such as Santa Monica Restaurant Week campaign
● Free Partner Portal that allows for businesses to have a 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 and
trade professionals, and media about Santa Monica’s overall visitor experience
● Build awareness of Santa Monica as an attractive and unique travel destination
● Expand Santa Monica’s competitiveness for groups by advising and supporting group
marketers
● Review, periodically, public, and private facilities and services in Santa Monica necessary
for travel and tourism activities to advise the city and business community of concerns and
needed improvements that align with the Experience Management Plan
● Provide client services as needed for small meetings and conference groups
● Provide virtual and printed collateral pieces, including but not limited to the official Santa
Monica visitors guide, map, and corporate planner publications
● Partner with the City to fully utilize City facilities when feasible
● To assist and explore opportunities to expand and improve existing products, services and
experiences
● Promptly answer all correspondence related to convention and visitors’ facilities in Santa
Monica and disseminate information through correspondence, media publicity and
personal contacts that favorably advertises advantages and opportunities
● Promote travel and tourism activities that will bring additional revenue to the city and local
businesses
3.H.a
Packet Pg. 852 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
8
Visitor Services
● Operate three visitor information center locations, including a mobile visitor center which
serves community events. Visitor center staff provides information and services to
residents and many of Santa Monica’s 8 million annual visitors
● Support local community events including but not limited to National Night Out,
Paddleboard Festival, Wellbeing Festival, Miracle on Main Street, COAST, State of the
City, American Film Market, Taste of Santa Monica, Buy Local, Last Sundays, MAINopoly,
HOWL-O-WEEN, Summer SOULstice, ICE, Annual Christmas Tree Lighting at Santa
Monica Place, Meet Me Under the Fig Tree, Sustainable Quality Awards, Twilight on the
Pier and SMPD Roll Calls
● Continue, as needed through the pandemic, to serve as City-wide distribution point for
PPE resources and information for Santa Monica businesses and residents
● Share information and celebrate the positive impacts of tourism for the community at the
Annual Tourism Summit, which is a gathering of business, civic and nonprofit
organizations. The Tourism Summit is a shared expense between City and TMD
● Provide curbside drop-off service for Santa MoniCARES donation collections benefiting
Santa Monica based nonprofits
● Respond to text-on-demand requests 7 days a week during operating hours at visitor
information centers
Travel Industry Sales
● Since the Tourism Marketing District was established in 2013, no City funds have been
used for this department. However, due to the COVID-19 crisis, a significant drop in hotel
occupancy and closures, we are forced to temporarily utilize City funding as we continue
to work to retain current overnight business from which TMD funds are derived while
sourcing new leads and new hotel booked business.
SMTT’s five strategic areas of focus - our “lanes of work” - are the foundation of our annual work
plan. Here we outline the programs, initiatives and staff efforts that help propel our strategies to
success for the destination:
LANE 1: Drive Balanced Demand for the Destination
To drive balanced demand for the destination, all programs and campaigns are rooted in five
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
3.H.a
Packet Pg. 853 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
9
It is important to emphasize that several major sporting events, potentially including the 2026
FIFA World Cup, 2022 Spirit Awards, 2022 LA Marathon, 2022 MLB All Star Game, 2023
Wrestle Mania, 2023 123rd US Open Championship, 2024 NCAA Division I Men's Basketball
West Region Championship, 2026 FIFA World Cup Candidate Host City, 2026 US Women's
Open and 2028 Summer Olympics will be hosted in the Greater Los Angeles Area in the next
six years. As such, it is crucial for SMTT to utilize and work on these relationships for future
programs.
SMTT will gauge 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
● Retail and sales taxes 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 bookings
● Overall economic growth year over year
TRAVEL TRADE – DOMESTIC & INTERNATIONAL MARKETS
Original planned investment: $1,268,800
2022-2023 investment at $1,428,655
The new year begins with the world still emerging from a global pandemic, however, there have
been several signs of steady progress within the last six months. First, the reopening of U.S.
borders to vaccinated international travelers in late 2021 allowed the travel trade to resume
booking trips to the U.S. Second, as global vaccination rates have rapidly increased, numerous
countries and regions including the United Kingdom, the European Union, Canada, and Australia
have dropped travel bans and relaxed COVID-related travel rules for their citizens. While Asian
nations will be slower to reopen, these signs give us reason to be cautiously optimistic about the
future state of travel in the coming year.
Listed below is our proposed plan and framework to keep Santa Monica top of mind among travel
3.H.a
Packet Pg. 854 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
10
agents, tour operators, and meeting planners during this crucial time. We will increase
international programs in countries which have historically been top source markets for our
destination, and which are expected to have the fastest travel recovery. We will also build upon
the domestic programs and partnerships which we established in the last year to ensure that a
diversified and holistic approach is taken.
It is important to note that all areas below are based on available budget, and that this plan is
subject to change. If we have learned anything from the past two years, it is that we must be able
to adapt and pivot as conditions continue to change.
Primary Markets:
● United States
● United Kingdom/Ireland
Secondary Markets:
● France
● Germany
● Canada
Exploratory Markets:
● Mexico
● Australia
Investing in the luxury segment will be a focal point for our domestic and international strategies.
In the last year, SMTT established marketing partnerships with three of the leading luxury travel
networks including Virtuoso, Travel Leaders, and Signature Travel Network. These partnerships
give us exclusive access to luxury advisors and clients in North America and abroad, and will
provide us with opportunities for joint marketing, webinars, trade shows, and events.
In North America, SMTT will expand our presence in Canada in partnership with a new
representation firm. Pre-pandemic, Canadian travelers were among the top spenders and hotel
visitors to our destination, and we are eager to welcome these visitors back. Santa Monica also
has an opportunity to grow business during our winter and shoulder seasons among Canadian
snowbirds.
Along those lines, we will be looking to our neighbor to the south, Mexico, and exploring
opportunities to potentially grow visitation from this market.
Overseas, we will be focused on strengthening our relationships and driving room nights with the
travel trade in key markets such as the United Kingdom, Ireland, France, and Germany. We will
also explore re-engaging with the Australian and New Zealand markets as airlift increases.
3.H.a
Packet Pg. 855 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
11
United States
Travel Network/Consortia Partnerships:
● Virtuoso
● Travel Leaders
● Signature Travel Network
● AAA
Trade Shows/Events:
● ILTM North America
● Private Luxury Americas
● Brand USA Marketplace
● Virtuoso Travel Week
● Travel Leaders Elevate
● Signature Travel Conference
Training Program:
● Virtuoso Web15
United Kingdom/Ireland
Trade Shows/Events:
● Santa Monica Sales & Media Mission
● Visit California Sales & Media Mission
● Brand USA Travel Week Europe
● Visit USA Roadshow
● Aer Lingus Roadshow
● Unite USA Event
Campaigns:
● Santa Monica at Brighton Brand Activation
● British Airways Holidays
● SoCal Triangle Joint Promotion (with Greater Palm Springs & San Diego)
● Tour Operator Co-Ops
Training Programs:
● Visit California STAR Module
3.H.a
Packet Pg. 856 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
12
Canada
Travel Network/Consortia Partnerships:
● Virtuoso
● Travel Leaders
● Signature Travel Network
Trade Shows/Events:
● Santa Monica Sales & Media Mission
● Visit California Sales & Media Mission
● Travel Marketplace
● Travel Leaders Roadshow
● ILTM North America
● Private Luxury Americas
● Virtuoso Travel Week
Campaigns:
● Vision Travel
● Air Canada Vacations
● Travel Brands
● Tour Operator Co-Ops
Training Programs:
● Virtuoso Web15
France
Trade Shows/Events:
● IFTM Top Resa
● Visit USA Workshops
● Brand USA Travel Week Europe
● Visit California Roadshow
● Luxury Events with Virtuoso and Serandipians Agencies
Campaigns:
● Miles Attack Travel Agent Incentive Loyalty Program
● Tour Operator Co-Ops
3.H.a
Packet Pg. 857 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
13
Training Programs:
● Visit California STAR Module
Germany
Trade Shows/Events:
● Visit USA Germany Roadshow
● Visit USA Consumer Shows
● Brand USA Travel Week Europe
Campaigns:
● CANUSA
● CRD
● SoCal Triangle Joint Promotion (with Greater Palm Springs & San Diego)
● Tour Operator Co-Ops
Training Programs:
● Visit California STAR Module
Australia/New Zealand
Trade Shows/Events:
● Visit California Sales & Media Mission
● Los Angeles Tourism & Convention Board Roadshow
● Visit USA Roadshow
● ILTM Asia Pacific
Campaigns:
● Helloworld
● Flight Center
Training Programs:
● Visit California STAR Module
Global
3.H.a
Packet Pg. 858 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
14
Trade Shows/Events:
● ILTM Cannes, North America and Asia Pacific
● California Luxury Forum
● Virtuoso Travel Week and Forums
● Private Luxury Events
● IPW
● RTO Summit West and East
● Go West
● Brand USA Travel Week Europe
● Brand USA Marketplace
Campaigns:
● Bonotel
● Hotelbeds
● Visit California Co-Ops
● Brand USA Co-Ops
● Airline/United Co-Ops
Training Programs:
● Visit California STAR Module
To leverage Visit California and the Los Angeles Tourism & Convention Board’s efforts, SMTT
may also participate in exploratory activities toward markets with potential growth for Santa
Monica including but not limited to Australia and Scandinavia. Activities may include participation
in sales missions, familiarization trips, and industry events.
SANTA MONICA MEET
Original Investment: $180,000
2022-2023 investment at $280,000
Amidst the pandemic, SMTT’s group sales team (i.e., Santa Monica Meet) has worked tirelessly
to represent our destination as a top choice for meetings and events. Looking ahead, Santa
Monica Meet will continue to do this by fortifying and building strategic partnerships with meetings-
focused media partners as well as attending their events to showcase our beach city to planners.
The future is also looking brighter with the news of several major sporting events coming to the
greater Los Angeles region in the next six years. Some of these include the 2022 MLB All-Star
Game, 2023 College Football Playoff, 2023 WrestleMania, 2023 U.S. Open Championship, 2024
NCAA Division I Men's Basketball West Region Championship, 2028 Olympic and Paralympic
Games and potentially the 2026 FIFA World Cup.
3.H.a
Packet Pg. 859 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
15
Santa Monica hotels are looking to secure new group business and prepare for these events,
especially after a successful 2022 Super Bowl in Los Angeles.
In the aftermath of the pandemic and in anticipation of these events, we have seen the (return for
proposal) RFP lead time both lengthen and shorten, and consequently, our destination and hotels
will continue to receive leads as soon as the next couple of months and continuing for the next
two years.
Key factors that will contribute to the success of the group sales efforts will be:
● Visit California’s Professional Meetings & Events (PME) Taskforce and programming
● SMTT’s Client Advisory Board
● Site inspection assistance for qualified meeting planners
● New video and photography assets (virtual tours, updated meeting space images, hotel
videos, etc.)
● Focusing on groups that are a fit for Santa Monica hotels (i.e., 25-125 rooms on peak)
As outlined below, Santa Monica Meet will exhibit at key trade shows and events to engage
meeting professionals:
Maintaining Relationships:
● Meeting Professionals International Southern California Chapter – committee member
● Society for Incentive Travel Excellence Southern California Chapter – active sponsor
● West Coast DMO Alliance Programming and Events
● Establishing and nurturing relationships with key intermediary companies such as
ConferenceDirect, HelmsBriscoe, HPN, Meetings Made Easy, and more
Sales Missions in Key Target Markets:
● Southern California
● Phoenix/Scottsdale
● Northern California
● New York City
● Dallas
Trade Shows:
● IMEX America
● MeetingsToday
● SmartMeetings
● Connect
● M&I
● NorthStar
3.H.a
Packet Pg. 860 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
16
Additionally, Santa Monica Meet will renew its partnership with Cvent and look at ways to secure
business via new or alternative channels such as Facebook groups and Tour Connection.
However, the foundation of our group sales efforts will continue to be rooted in representing our
beach city as a top destination for memorable and impactful events and securing new and repeat
business for the future.
Lane 2: Enhance the Brand and Steward the Destination Experience
SANTA MONICA EXPERIENCE MANAGEMENT PLAN
With the Santa Monica Experience Management Plan complete, and a relaunch this year, we will
continue to focus on implementing programs according to our eight key 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
With recent leadership changes at the City, Downtown Santa Monica, Inc., and Santa Monica
Chamber of Commerce, it is key to strengthen partner collaboration on implementing the plan.
A governance committee will be reenacted to ensure that progress is made on each strategy and
to prioritize short-and long-term goals. While SMTT is spearheading this process, we will not
control or own all the initiatives that will be pursued. A consultant has been retained to facilitate
the first year of the implementation phase and guide the process city wide. Some of the highlights
of the work that SMTT will take the lead on in the first 24 months include coordinating a Santa
Monica Art Month with bookable hotel packages, creating a partnership with the Santa Monica
Conservancy, Historical Museum and knowledgeable residents, to offer historical walking tours in
all eight neighborhoods that highlights Santa Monica’s unique history, and working in partnership
with Sustainable Works to increase the number of hotels that are either Green Certified
Businesses or State-certified in sustainability practices.
BRAND CAMPAIGN
SMTT will introduce a revitalized brand in the fall of 2022, to rebuild brand strength as we adjust
to life with COVID-19. Working with agency partners and taking learnings from the City’s shared
identity project, our own economic impact study research findings, and the impact of COVID-19,
we will develop a campaign that will resonate with travelers in a post pandemic world.
We will focus our efforts on top domestic feeder markets (San Francisco, Chicago, New York City,
3.H.a
Packet Pg. 861 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
17
Phoenix, Seattle, and Washington DC), key international markets that are opening quickly:
potentials are Canada, Mexico, United Kingdom, France, and Germany, and leverage co-
opportunities with partner organizations such as Visit California and Brand USA.
As we enter spring and summer 2022 and the ever-changing post COVID world, we will be nimble
and ready to pivot based on domestic and international market travel trends. We will move forward
with paid media plans in the top domestic and international markets stated above to create
emotional connections to Santa Monica beyond landmarks to drive overnight visitation. We will
continue with the Santa Monica Shines messaging as the new campaign is developed: Santa
Monica Shines is a community-wide effort that spotlights the sunny disposition of our people, as
well as the way they work together to elevate everyone here in LA’s beachside city and make our
wonderful destination the cleanest and safest anywhere. This singular positive message unites a
platform of ideas and tactics that enable partners to reach locals and visitors alike. The paid media
plan includes the following tactics:
● Programmatic digital: providing unique targeting capabilities developed purely for the
travel sector
● Paid social: Instagram and Facebook
● Booking sites: Expedia, Tripadvisor
● Sponsored and native content: collaborations with partners like Lonely Planet, Matador,
AFAR, Smithsonian, etc.
The campaign(s) will focus and deliver on the following key performance indicators:
● Increase direct bookings to hotels and increase TOT revenues
● Increase weekday hotel stays and business travel
● Increase referrals to Santa Monica businesses via Partner Portal
● Drive traffic to SantaMonica.com campaign landing page
● Increase bookings through online travel agencies
● Increase social media presence and drive traffic to SantaMonica.com
SMTT in conjunction with partner agency, MMGY Global, is working with the City of Santa Monica
and various stakeholders to develop a shared brand identity. The goal of this project is to capture
the essence of Santa Monica, help build consensus within the community and build a platform for
future decision making. Extensive qualitative and quantitative research was conducted including
interviews with key stakeholders from the city, residents, and business community. Research
findings and brand architecture have been presented to the City and will be shared with City
Council Members and other key stakeholders.
VISITOR CENTERS
Santa Monica Travel & Tourism will operate three Visitor Information Centers as well as our
mobile Visitor Center in Santa Monica. We are available to serve our Santa Monica visitors 365
days a year and serve as a safe-haven and resource center when the need arises such as being
the PPE distribution hub for the Santa Monica community during the pandemic.
3.H.a
Packet Pg. 862 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
18
All locations of 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
● Santa Monica-themed retail products such as postcards, key chains, magnets, hats, t-
shirts, sweatshirts, and books about Santa Monica
● Language translations
With the addition of the online shop, santamonica.myshopify.com we have grown our retail sales
where locals and former and future visitors may place retail orders from our online shop
worldwide.
CONTENT AND SOCIAL MEDIA
SMTT’s social media strategy for the coming year will be to increase engagement and followers
outside of the greater Los Angeles area, with a focus on top domestic feeder markets and
international destinations. We will be partnering with a local agency to assist with organic
community management and content generation that will showcase the best of Santa Monica,
highlighting and sharing experiences within the destination including outdoor dining, arts and
culture, and outdoor activities. We also plan to expand our social media presence by exploring
new and underutilized platforms such as Tik Tok, LinkedIn and Pinterest and partnering with key
travel industry influencers who align with the values of Santa Monica, to promote the destination
to their followers.
Pre-pandemic, SMTT had launched monthly hotel and concierge event email blasts, providing
Santa Monica’s business improvement districts and City information team with a tool for ensuring
hotel guests and residents know about the latest happenings in each neighborhood.
SMTT will continue to compile content from Santa Monica businesses for promotion through
social media channels, website, and email. With the resurgence of events and activities in 2022,
we will look to bring back the hotel e-newsletter to keep information flow through numerous
channels.
SMTT will continue to work with key targeted publications and freelance journalists to develop
timely articles and blog posts to ensure content on SantaMonica.com is attracting organic traffic
and addressing visitor needs and highlighting how the destination is on the cutting edge of travel,
culinary, health and wellness, shopping, and sustainability trends.
SMTT is exploring custom publishing partners to produce the 2022-2023 visitor guide and map.
We are in discussions with our current partner, Los Angeles Magazine, as well as other publishers
who create guides and maps for other top destinations. We are pushing for new innovative ways
to design, print, sell advertising space and distribute and will decide on a partner by the end of FY
2022, in time for new printed guides and maps to be produced by December 2022. We are
3.H.a
Packet Pg. 863 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
19
considering cost savings by partnering with other LA-based DMOs to create a map of the LA
region with a title sponsorship to cover costs of printing and distribution. In addition to local and
domestic distribution we plan to expand our distribution back to international markets in the winter
of 2022-2023 and have already begun distribution in Canada.
SANTAMONICA.COM
SMTT will launch a completely enhanced website and mobile friendly in the summer of 2022. The
look and feel of the site will be modernized to drive more engagement with strong visuals
portraying Santa Monica as the quintessential California coastal city. The enhancements will
address overall performance of the site, redesign the content to better match user needs and
expectations, and simplify the navigation. The new SantaMonica.com will be a crucial resource
for travelers at all stages of the traveler's journey and educate them on why they should choose
Santa Monica as their destination, in addition to featuring all the incredible offerings of the region.
We will also be re-designing the meeting planner portion of the site to bring events, conferences,
and meetings to Santa Monica hotels and venues.
The goals of the new SantaMonica.com website is to:
● Reintroduce Santa Monica as ‘home base’ destination and differentiate it from Los
Angeles and other SoCal destinations
● Stabilize occupancy and serve the local business community
● Highlight creating experiences and connection in Santa Monica
● Drive overnight visitation during shoulder seasons
The goals of the meetings website are:
● Attract events and meetings to Santa Monica hotels and venues for overnight experiences
● Educate meeting planners on the available hotels, venues and destination differentiators
that make it the ultimate meeting destination
● Show off the outside-the-boardroom activities for attendees to enjoy
SANTA MONICA RESTAURANTS
SMTT is partnering with Santa Monica restaurants owners, chefs, and hotels to build a culinary
advisory committee to celebrate our culinary experiences and access to fresh foods. The
committee will develop programs to increase overall sales and experiences in our food and
beverage businesses and elevate Santa Monica’s reputation as a foodie destination.
MEDIA RELATIONS
SMTT will continue to share the innovative efforts our community is taking to be a leader in
sustainability. Media and consumer interest in this topic has grown significantly and we’re
fortunate that the City of Santa Monica has prioritized sustainability since the development of the
Sustainable City Plan in 1994. The City’s 2022 LEED Platinum certification has already provided
3.H.a
Packet Pg. 864 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
20
new opportunities to tell our story of sustainability.
We will continue to urge local businesses to engage in programs like the Green Business
Certification program and Sustainable Quality Awards to amplify the community’s efforts and
showcase how visitors can travel and enjoy Santa Monica responsibly.
SMTT is also focusing storytelling opportunities on our community as a highly desirable
destination for foodies as we showcase our culinary strengths, diverse dining options, and
introduce audiences to our roster of renowned chefs and farmers markets. SMTT will continue to
identify themed press visits and itineraries that focus on the community’s culinary expertise as
well as the new experiential product in market and focus more on attendance at local events to
showcase how much is happening in our community that visitors can enjoy.
Health and wellness are additional areas of outreach to travel journalists, who continue to show
interest in the abundance of opportunities including beach yoga, beach spinning, biking tours, spa
experiences, and healthful eating.
SMTT will engage journalists from the region and nation, and as international travel continues to
rebound, we will seek fresh opportunities to host visits from journalists from Europe, North
America, and the United Kingdom. A new public relations partnership in Canada will foster
engagement with top writers from Vancouver, Toronto, and other key Canadian cities.
SMTT will leverage opportunities to connect with journalists on Visit California media missions
and international activations with other partners in the following markets:
● Canada
● Mexico
● United Kingdom
We will also be engaging a media monitoring and distribution platform in 2022 to increase
domestic and global reach to journalists, bloggers and influencers and measure effectiveness of
our public relations output.
CRISIS COMMUNICATIONS
The crisis communications plan continues to be updated to reflect emergent issues and aligned
messaging needs. Lessons learned and best practices from the pandemic underscore the need
for nimbleness and community partnerships in delivering swift, accurate and effective
communications. We continue to create new media holding statements and refine existing ones
to ensure we are ready to respond when appropriate.
Our team has also focused on relationships with the City of Santa Monica and Santa Monica
Police, Fire and Communications Departments public information officers and the
communications teams in California destination marketing organizations to ensure the
relationships are built and emergency contact information is shared so we can respond to crises
3.H.a
Packet Pg. 865 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
21
and support each other’s efforts. Throughout the COVID-19 crisis and the implementation of the
Pier Task Force, we have worked in conjunction with City of Santa Monica teams to share official
messages to our business community, visitors, and Santa Monica residents on SantaMonica.com,
social media channels, community newsletter, and news updates.
We have also supported economic development efforts to cultivate a citywide list of businesses
that are open and offering specials to residents during this challenging time to encourage the
community to buy local and support these businesses.
LANE 3: Champion the Value of Tourism
BOARD ENGAGEMENT
The implementation of the Santa Monica Experience Management Plan will provide opportunities
for our Board of Directors and various stakeholders from residents to businesses to further
engage. SMTT will look to these groups, 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 aligned with the eight strategies
identified in the plan.
SMTT will also identify opportunities for members of its Board of Directors to address myths about
the tourism industry and to champion the value of tourism 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, cultural exchanges, community
events and media interviews.
SMTT leadership will continue to work in collaboration with the SMTT Board of Directors and TMD
Committee representatives to ensure engagement at regularly scheduled meetings with agendas
focused on raising awareness of important projects and driving discussion and feedback. The
practice of distributing electronic board member-focused communications in months where there
is not a regularly scheduled board meeting has proven to be effective and useful. SMTT will
continue this practice in the year ahead to outline issues of interest to its Board Directors.
COMMUNITY & CIVIC RELATIONS
SMTT will continue to be a vocal champion on behalf of the tourism industry when required while
demonstrating the importance and positive economic impacts of tourism to the community,
utilizing the following channels as examples:
● Annual Tourism Summit
● National Travel and Tourism Week
● Community event presence and collateral distribution:
3.H.a
Packet Pg. 866 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
22
o Buy Local Most Loved Contest
o COAST
o City of Santa Monica Wellbeing Summit
o Downtown Santa Monica Holiday events/ICE
o OWL Breakfast
o Main Street Holiday event
o Main Street Last Sunday event
o Martin Luther King Day 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
● Extra Bedroom Program, annual offering of hotel discounts to residents over the holiday
season
● SantaMonica.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
The Santa MoniCARES foundation launched in 2017 as a coalition of representatives from Santa
Monica Travel & Tourism and community partners. The mission of Santa MoniCARES is to
harness the hospitable nature and generosity of Santa Monica’s tourism industry to provide
support to our local nonprofit agencies. Santa MoniCARES will focus on community engagement
through a series of events and activities that further promote our efforts. Focus on workforce
development by offering interview skills and resume-building through our nonprofit partners will
be at the forefront. The foundation plans on expanding LGBTQ+ program support by once again
sponsoring the annual Santa Monica High School Gay Student Associations Annual Queer Prom
and will host a fundraising mixer to raise funds for local LGBTQ+ associations. The foundation
will also plan targeted fundraising events to benefit local nonprofits through its network of tourism-
serving businesses.
A newly revamped website will make it easier for nonprofit agencies and residents to partner with
Santa MoniCARES through procured fundraising events, volunteerism, and donation
opportunities. An additional feature on the Santa MoniCARES website will allow the public to
choose where their donation dollars are spent. One hundred percent of a donation can be directed
to the type of nonprofit donors choose to support such as education, environmental protection,
hunger, the arts, elderly assistance, workforce development, diversity, equity and inclusion
programs, and cultural programs.
3.H.a
Packet Pg. 867 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
23
Santa MoniCARES will continue to be a leader in donation drives and collection points for our
local nonprofits in need, to collect gently used clothing, food, blankets, and toiletries. Internally,
SMTT has included Santa MoniCARES mission and values as part of our SMTT onboarding
process for new employees. Santa MoniCARES is a key component to SMTT’s identity within the
community to show that tourism cares about its residents not just its visitors. Employee
volunteerism events and activities are regularly planned throughout the year. We require Santa
MoniCARES components at every industry event or program SMTT produces.
TOURISM INDUSTRY LEADERSHIP
SMTT will continue to shine as a proactive member of the tourism industry to share best practices
by leveraging memberships with the following industry associations and taking opportunities to
serve on leadership committees, boards of directors, and attending or speaking at their annual
conferences:
● Brand USA
● California Travel Association
● Destinations International
● Destination Marketing Association West
● eTourism Summit
● Meeting Professionals International
● CMP (certified meetings professional) status
● Society for Incentive Travel Excellence
● SxSW
● U.S. Travel Association’s Chairman’s Circle
● Visit California’s various leadership and committee roles
● Southern California Association Governments-GLUE Council -Tourism Representative
● Santa Monica Bay Restoration Commission -Tourism Representative
SMTT will 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 – Todd Mitsuhata, Director of Global Business Development
● Marketing - Michael Gurreri, Chief Marketing Officer
● Public Relations/Crisis - Cara Rene, Director of Communications
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 that’s why last year Santa Monica Travel & Tourism
generated over $262,000 of in-kind support and $41,000 in Fairshare participation fees from
3.H.a
Packet Pg. 868 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
24
tourism-serving businesses to further support SMTT programs. These valuable contributions do
not come automatically. They are derived from ongoing dialogue and education with our tourism
business partners and through demonstrating a high standard of excellence, engagement, and
ROI with our programs.
To ensure our partners are aware of all the ways they can work with SMTT, our
organization will continue to utilize the following channels:
● Quarterly General Managers meetings
● Quarterly Marketing Committee and Director of Sales meetings
● Roundtable trainings and discussions
● Partner Portal
● Hospitality networking events showcasing new venues and opportunities to work with
SMTT
● New business intro program
● Monthly community newsletter
● Annual Tourism Summit
SMTT will continue to solicit sponsorships for its Annual Tourism Summit to offset program costs.
This year the organization will collect feedback from sponsors to identify opportunities for new
and increased innovative sponsorship revenues.
I AM SANTA MONICA
“I Am Santa Monica" is an interactive business workshop designed to educate Santa Monica
residents, businesses, and employees to become better informed about all Santa Monica has to
offer. The class is designed specifically to inform and educate tourism-serving employees of
businesses in Santa Monica about the destination with a focus on customer service and hospitality
training. This free 2-hour interactive learning workshop includes a bus tour of Santa Monica and
ends with a classroom session reviewing detailed materials for participants to take home upon
completion. Trained individuals become “Official Information Ambassadors” and are equipped
with a database of facts, figures, and “Did You Know” anecdotes about Santa Monica for use in
customer interactions. Each “student” receives a certificate and package of information.
The program is now being expanded with a digital version to offer the valuable classroom
resources to students who are unable to participate at in-person sessions. The class can now be
curated to a business’ individual needs and private classes are also available.
I AM YOUR DESTINATION PROGRAM
“I Am Destination” is the framework of the I Am Santa Monica program that we solicit to other
cities who want to offer their own class designed specifically for any tourism destination. The
program sells for $15,000 and 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. As part of our digital I am Santa Monica
3.H.a
Packet Pg. 869 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
25
creation, a templated version is available for an additional $5,000.
LANE 5: Ensure Operational Excellence
SMTT’s leadership team created a four-quarter performance review process that focuses on the
forward approach to employee development and retention. At the employee's annual hire date, a
one-page self-evaluation is completed for the previous year. Upon completion, employees will
meet quarterly with their supervisors to discuss individual performance and professional
development goals and to address or adjust goals as needed.
Baseline qualifications by title have been created to help drive employee success and offer further
opportunities for advancement within SMTT. A salary and benefit survey will be completed in 2022
with industry researchers to ensure we are aligned with the industry and region in our offerings.
We continue with our quarterly team building events as they have been a success. Group
familiarization tours will be regular monthly events along with site visits and lunch with the CEO
so that each team member gets one-on-one time with leadership.
Retention will continue to be at the forefront of SMTT by expanding our recruitment efforts along
with a 21+ point onboarding process that ensures new staff comprehend the important values and
policies that make us unique. SMTT works with a local insurance broker to offer a comprehensive
and cost affordable benefits package.
We continue to be a leader in equipment, technology, and efforts to remain environmentally
friendly. When decommissioned, SMTT laptops, iPads and cell phones are erased to Department
of Defense standards then donated to either the Police Activities League, if the students can
utilize, or nonprofit Laptop Elf Company that recycles the equipment for underprivileged youth
and teachers or are recycled through one of the City of Santa Monica’s hazardous waste
programs.
EMERGENCY PREPAREDNESS
We will be reviewing our emergency preparedness plan for 2022-2023 and updating as needed.
We plan on certifying additional employees via the City of Santa Monica’s Community Emergency
Response (CERT).
Additionally, SMTT frontline visitor staff have received de-escalation training in case of an
emergent situation.
We have also launched our Emergency Outreach Cell Phone Contact System aptly named “Dial
My Calls”. This voice broadcasting system allows us to send voice messages to an entire list of
phone numbers in seconds. We can also create a text message and send it to everyone on our
list. It allows SMTT to keep track of responses and reply with our two-way SMS.
SMTT has also provided information on the City’s new visitor emergency text alert system to our
3.H.a
Packet Pg. 870 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)
2427 Main St, Santa Monica, CA 90405
santamonica.com
310.319.6263
26
hotel general managers so they can share the service with their guests in the event of a large-
scale community concern.
DESTINATION MARKETING ACCREDITATION PROGRAM (DMAP)
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 management. The process includes submitting
documentation of over 110 rigorous standards, including annual operations plan, HR policies,
technology plan, an updated crisis communications plan, a commitment to consumer research,
adoption of the DMAP code of ethics and many other standards. SMTT submitted an annual
progress report in 2022 and was re-certified as an approved DMAP Destination.
IN CLOSING
Santa Monica Travel & Tourism thanks the City of Santa Monica for its ongoing support and
partnership in ensuring that the tourism industry remains a valued contributor to a vibrant and
thriving economy. While our challenges have been significant over the past two years, our
outlined strategies, along with the collaboration and partnership of the city and community and
business leadership, will ensure that we rebuild our community to best serve our residents,
visitors, and businesses well into the future.
3.H.a
Packet Pg. 871 Attachment: 2022-2023 SMTMD Annual Report (5126 : Santa Monica Tourism and Marketing District Fiscal Year 2022-23 Budget and Work Plan)