City of Costa Mesa
REGULAR CITY COUNCIL AND SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND HOUSING AUTHORITY
Agenda
City Council Chambers
77 Fair Drive
6:00 PMTuesday, May 17, 2022
*Note: All agency memberships are reflected in the title "Council Member" 4:00 P.M. Closed Session
The City Council meetings are presented in a hybrid format, both in-person at City Hall and virtually via Zoom Webinar. Pursuant to the State of California Assembly Bill 361(Gov. Code §54953(b)(3)) the City Council Members and staff may choose to participate in person or by video conference.
You may participate via the following options:
1. Attending in person: Attendees are encouraged to wear masks at their discretion. If you are feeling ill, you may still participate in the meeting via Zoom.
2. Members of the public can view the City Council meetings live on COSTA MESA TV (SPECTRUM CHANNEL 3 AND AT&T U-VERSE CHANNEL 99) or
http://costamesa.granicus.com/player/camera/2?publish_id=10&redirect=true and online at youtube.com/costamesatv.
1 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
3. Zoom Webinar: (For both 4:00 p.m. and 6:00 p.m. meetings) Please click the link below to join the webinar:
https://us06web.zoom.us/j/98376390419?pwd=dnpFelc5TnU4a3BKWVIyRVZMallZZz09 Or sign into Zoom.com and “Join a Meeting”
Enter Webinar ID: 983 7639 0419/ Password: 905283
• If Zoom is not already installed on your computer, click “Download & Run Zoom” on the launch page and press “Run” when prompted by your browser. If Zoom has previously been installed on your computer, please allow a few moments for the application to launch automatically.
• Select “Join Audio via Computer.”
• The virtual conference room will open. If you receive a message reading, “Please wait for the host to start this meeting,” simply remain in the room until the meeting begins.
• During the Public Comment Period, use the “raise hand” feature located in the participants’ window and wait for city staff to announce your name and unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.
Participate via telephone: (For both 4:00 p.m. and 6:00 p.m. meetings) Call: 1 669 900 6833 Enter Webinar ID: 983 7639 0419/ Password: 905283 During the Public Comment Period, press *9 to add yourself to the queue and wait for city staff to announce your name/phone number and press *6 to unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.
4. Additionally, members of the public who wish to make a written comment on a specific agenda item, may submit a written comment via email to the City Clerk at [email protected]. Comments received by 12:00 p.m. on the date of the meeting will be provided to the City Council, made available to the public, and will be part of the meeting record.
5. Please know that it is important for the City to allow public participation at this meeting. If you are unable to participate in the meeting via the processes set forth above, please contact the City Clerk at (714) 754-5225 or [email protected] and staff will attempt to accommodate you. While the City does not expect there to be any changes to the above process for participating in this meeting, if there is a change, the City will post the information as soon as possible to the City’s website.
2 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
Note that records submitted by the public will not be redacted in any way and will be posted online as submitted, including any personal contact information. All pictures, PowerPoints, and videos submitted for display at a public meeting must be previously reviewed by staff to verify appropriateness for general audiences. No links to YouTube videos or other streaming services will be accepted, a direct video file will need to be emailed to staff prior to each meeting in order to minimize complications and to play the video without delay. The video must be one of the following formats, .mp4, .mov or .wmv. Only one file may be included per speaker for public comments. Please e-mail to the City Clerk at [email protected] NO LATER THAN 12:00 Noon on the date of the meeting.
Note regarding agenda-related documents provided to a majority of the City Council after distribution of the City Council agenda packet (GC §54957.5): Any related documents provided to a majority of the City Council after distribution of the City Council Agenda Packets will be made available for public inspection. Such documents will be posted on the city’s website and will be available at the City Clerk's office, 77 Fair Drive, Costa Mesa, CA 92626.
All cell phones and other electronic devices are to be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to conduct a phone conversation.
Free Wi-Fi is available in the Council Chambers during the meetings. The network username available is: CM_Council. The password is: cmcouncil1953.
As a LEED Gold Certified City, Costa Mesa is fully committed to environmental sustainability.
A minimum number of hard copies of the agenda will be available in the Council Chambers.
For your convenience, a binder of the entire agenda packet will be at the table in the foyer of the Council Chambers for viewing.
The City of Costa Mesa aims to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is currently provided, the Clerks office will attempt to accommodate in a reasonable manner. Note, Closed Captioning is available via the Zoom application. Please contact the City Clerk’s office 24 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible 714-754-5225 or at [email protected].
El objetivo de la Ciudad de Costa Mesa es cumplir con la ley de Estadounidenses con Discapacidades (ADA) en todos los aspectos. Si como asistente o participante en esta junta, usted necesita asistencia especial, más allá de lo que actualmente se proporciona, la oficina del Secretario de la Ciudad intentara de complacer en una forma razonable. Favor de comunicarse con la oficina del Secretario de la Ciudad con 24 horas de anticipación para informarnos de sus necesidades y determinar si alojamiento es realizable al 714-754-5225 o [email protected].
3 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS Members of the public are welcome to address the City Council only on those items on the Closed Session agenda. Each member of the public will be given a total of three minutes to speak on all items on the Closed Session agenda.
CLOSED SESSION ITEMS:
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION – ONE CASE
Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: Costa Mesa v. Newport Mesa Unified School District, Orange County Superior Court Case No. 30-2021-01179397-CU-WM-CXC.
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION – ONE CASE
Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: Insight Psychology and Addiction, Inc. v. City of Costa Mesa, U.S. District Court, Central District of California, Case No. 8:20 cv 00504 JVS JDE
3. CONFERENCE WITH LEGAL COUNSEL - INITIATION OF LITIGATION - ONE CASE
Pursuant to California Government Code Section 54956.9(d)(4), Potential Litigation
4. THREAT TO SECURITY
Pursuant to California Government Code Section 54957(a), Consultation with: City Manager and Police Chief
4 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
REGULAR MEETING OF THE CITY COUNCIL AND SUCCESSOR AGENCY
TO THE REDEVELOPMENT AGENCY AND HOUSING AUTHORITY
MAY 17, 2022 – 6:00 P.M.
JOHN STEPHENS
Mayor
MANUEL CHAVEZ ANDREA MARR
Council Member - District 4 Mayor Pro Tem - District 3
JEFFREY HARLAN LOREN GAMEROS
Council Member - District 6 Council Member - District 2
ARLIS REYNOLDS DON HARPER
Council Member - District 5 Council Member - District 1
KIMBERLY HALL BARLOW LORI ANN FARRELL HARRISON
City Attorney City Manager
CALL TO ORDER
NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE - Mrs. McVeigh First Grade Class, Sonora Elementary School
MOMENT OF SOLEMN EXPRESSION - Pastor David Manne, Calvary Chapel, Costa Mesa [Per Council Policy 000-12, these presentations are made by community volunteers stating their own views. The City Council disclaims any intent to endorse or sponsor the views of any speaker.]
ROLL CALL
CITY ATTORNEY CLOSED SESSION REPORT
5 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
PRESENTATIONS:
1. Proclamation: National Emergency Medical Services Week 2022 22-700 Proclamation: EMS WeekAttachments:
2. Proclamation: National Public Works Week 2022 22-702 Proclamation: Public Works WeekAttachments:
3. Proclamation: Mental Health Awareness Month 2022 22-703 Proclamation: Mental Health AwarenessAttachments:
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Comments are limited to 3 minutes, or as otherwise directed.
Comments on Consent Calendar items may also be heard at this time.
COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Each council member is limited to 4 minutes. Additional comments will be heard at the end of the meeting.
1. Council Member Harlan
2. Council Member Harper
3. Council Member Reynolds
4. Council Member Chavez
5. Council Member Gameros
6. Mayor Pro Tem Marr
7. Mayor Stephens
REPORT – CITY MANAGER
REPORT – CITY ATTORNEY
CONSENT CALENDAR (Items 1-11)
All matters listed under the Consent Calendar are considered to be routine and will be acted upon in one motion. There will be no separate discussion of these items unless members of the City Council, staff, or the public request specific items to be discussed and/or removed from the Consent Calendar for discussion.
6 REGULAR CITY COUNCIL AND
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HOUSING AUTHORITY
Agenda May 17, 2022
1. PROCEDURAL WAIVER: APPROVE THE READING BY TITLE ONLY
OF ALL ORDINANCES AND RESOLUTIONS
22-691
RECOMMENDATION:
City Council, Agency Board, and Housing Authority approve the reading by title only and waive full reading of Ordinances and Resolutions.
2. READING FOLDER 22-692
RECOMMENDATION:
City Council receive and file Claims received by the City Clerk: Marco Camberos, Juliet Cannon, Riccardo Grad, William Henry Saylor.
3. ADOPTION OF WARRANT RESOLUTION 22-694
RECOMMENDATION:
City Council approve Warrant Resolution No. 2680
Summary Check Register week of 4.25.22 .pdf
Summary Check Register Week of 5.2.22.pdf
Attachments:
4. MINUTES 22-696
RECOMMENDATION:
City Council approve the Minutes of the Regular meeting of April 19, 2022 and the Special Study Session of April 26, 2022.
1. 04-19-2022 Draft Minutes
2. 04-26-2022 Draft Special Study Session Minutes
Attachments:
7 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
5. ADOPTION OF A RESOLUTION TO ALLOW MEMBERS OF THE CITY
COUNCIL, COMMISSIONS AND COMMITTEES TO PARTICIPATE IN
THE MEETINGS REMOTELY, AS NEEDED, DUE TO HEALTH AND
SAFETY CONCERNS FOR THE MEMBERS AND THE PUBLIC
22-695
RECOMMENDATION:
Staff recommends the City Council adopt Resolution 2022-xx to allow the members of the City Council, Commissions, and Committees to participate in the meetings remotely, as needed, via Zoom due to:
· The current State of Emergency and global pandemic, which continues to directly impact the ability of the members of the City ’s legislative bodies to meet safely in person.
· Federal, State and /or local officials continue to impose or recommend measures to promote social distancing.
1. Draft Resolution No. 2022-XXAttachments:
6. REQUEST TO CANCEL THE REGULAR CITY COUNCIL MEETING OF JULY 5, 2022
22-699
RECOMMENDATION:
Staff recommends the City Council cancel the regular meeting of Tuesday, July 5, 2022.
8 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
7. BUSINESS IMPROVEMENT AREA (BIA) REAUTHORIZATION,
RESOLUTION OF INTENTION, AND REVIEW OF ANNUAL REPORT
22-681
RECOMMENDATION:
Staff recommends the City Council:
1. Approve the 2021-2022 Annual Report for the Business Improvement Area (BIA) (Attachment 1).
2. Receive and file the audited financial report for Fiscal Years 2020 and 2021 (Attachment 2).
3. Adopt the Resolution declaring the City ’s intention to levy an annual assessment for Fiscal Year 2022-23 for the Business Improvement Area covering certain Costa Mesa hotels and motels and setting the time and place for a Public Hearing on the proposal (Attachment 3).
1. Travel Costa Mesa Annual Report 2021-22
2. Audit Fiscal Year Ending June 2021
3. Resolution of Intent 2022-23 BIA Authorization
Attachments:
8. DESIGNATION OF CITY NEGOTIATORS FOR THE COSTA MESA
POLICE ASSOCIATION (CMPA) MEET AND CONFER AND
AUTHORIZATION TO PROCEED WITH THE FINANCIAL ANALYSIS
OF THE CURRENT MOU PER THE TRANSPARENCY IN LABOR
NEGOTIATIONS COUNCIL POLICY
22-697
RECOMMENDATION:
Staff recommends the City Council:
1. Designate Liebert Cassidy Whitmore Partner Peter Brown as the Principal Negotiator and City Manager Lori Ann Farrell Harrison, Assistant City Manager Susan Price, Assistant to the City Manager Alma Reyes, Human Resources Manager Kasama Lee, and Finance Director Carol Molina as the City’s representatives in negotiations with the CMPA.
2. Authorize staff to have the independent fiscal analysis of the current CMPA 2018-2024 Memorandum of Understanding (MOU) completed per the requirements of the Transparency In Labor Negotiations Council Policy (hereinafter policy).
9 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
9. APPROVAL FOR THE PURCHASE OF SERVERS FOR LAND
MANAGEMENT SYSTEM WITH DELL MARKETING, L.P.
22-642
RECOMMENDATION:
Staff recommends the City Council:
1. Authorize the use of NASPO ValuePoint Master Price Agreement (State of California) No. 15-70-34-003 with Dell Marketing, L .P. for the purchase of servers for the new Land Management System (LMS).
2. Approve and authorize the City Manager and City Clerk to execute the necessary documents to purchase servers for the new LMS System from Dell Marketing, L.P.
1. Dell Quote for Replacement Servers (LMS)Attachments:
10. RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-23 FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
22-680
RECOMMENDATION:
Staff recommends the City Council adopt Resolution No. 2022-xx, approving Sunflower Avenue Pavement Rehabilitation Project for funding with Road Maintenance and Rehabilitation Account (RMRA) revenues for Fiscal Year 2022-23.
1. SB 1 ResolutionAttachments:
10 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
11. APPROVAL OF A STREET CLOSURE AND ALCOHOL SERVICE FOR THE 2022 COSTA MESA-NEWPORT HARBOR LIONS CLUB FISH
FRY EVENT TO BE HELD AT LIONS PARK, 570 W. 18th STREET ON JUNE 3-5, 2022.
22-684
RECOMMENDATION:
Staff recommends the City Council:
1. Adopt Resolution No. 2022-xx, approving the closure of a portion of Park Avenue between 18th Street and 19th Street for the Costa Mesa-Newport Harbor Lions Club 2022 Fish Fry event beginning June 3 and ending June 6, 2022 (Attachment 1).
2. Approve a request from the Costa Mesa-Newport Harbor Lions Club to sell wine and beer at Lions Park, 570 W. 18th Street, for the 2022 Fish Fry event to be held on June 3-5, 2022.
1. Resolution No. 2022-XX
2. License Agreement with Costa Mesa-Newport Harbor Lions Club 9.17.2022
3. ABC License | Form - 221
Attachments:
AT THIS TIME COUNCIL WILL ADDRESS ANY ITEMS PULLED FROM THE CONSENT
CALENDAR
------------------------------END OF CONSENT CALENDAR-------------------------------
11 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
HOUSING AUTHORITY
Agenda May 17, 2022
PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)
1. CONDUCT TAX EQUITY AND FISCAL RESPONSIBILITY ACT
(TEFRA) HEARING, ADOPT A RESOLUTION APPROVING THE
ISSUANCE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
REVENUE OBLIGATIONS FOR THE BENEFIT OF VANGUARD
UNIVERSITY OF SOUTHERN CALIFORNIA IN AN AMOUNT
NOT-TO-EXCEED $30,000,000
22-678
RECOMMENDATION:
Staff recommends the City Council:
1. Conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986 to receive comments relating to the issuance by the California Enterprise Development Authority (the “Authority”) of not to exceed $30,000,000 in the Authority ’s Revenue Obligations ( the “Obligations”) for the benefit of Vanguard University of Southern California, a California nonprofit public benefit corporation ( the “Borrower”).
2. Adopt a Resolution approving the issuance of the Obligations by the Authority to finance and refinance the Facilities for the benefit of the Borrower.
1. ResolutionAttachments:
OLD BUSINESS: NONE.
12 REGULAR CITY COUNCIL AND
SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND
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Agenda May 17, 2022
NEW BUSINESS:
1. INTRODUCTION OF AN ORDINANCE ADDING CHAPTER XV
(UNLAWFUL POSSESSION OF A CATALYTIC CONVERTER) TO
TITLE 11 (OFFENSES-MISCELLANEOUS) OF THE COSTA MESA
MUNICIPAL CODE TO ESTABLISH REGULATIONS PROHIBITING
THE UNLAWFUL POSSESSION OF CATALYTIC CONVERTERS IN
THE CITY
22-683
RECOMMENDATION:
Staff recommends the City Council:
Introduce for first reading, by title only, Ordinance No. 2022-xx, adding Chapter XV (Unlawful Possession of a Catalytic Converter) to Title 11 (Offenses-Miscellaneous) of the Costa Mesa Municipal Code to establish regulations prohibiting the unlawful possession of catalytic converters in the City.
1. Draft OrdinanceAttachments:
2. TERMINATION OF JAIL SERVICES CONTRACT BETWEEN ALLIED
UNIVERSAL AND THE CITY OF COSTA MESA
22-705
RECOMMENDATION:
Staff recommends the City Council:
1. Terminate the Professional Services Agreement for jail services between Allied Universal, assignor of G 4S Secure Solutions (USA) Inc. and the City of Costa Mesa.
2. Authorize the City Manager or her designee to negotiate an agreement with the City of Huntington Beach for temporary jail services and /or to hire temporary staffing to operate the Costa Mesa Jail.
1. Amendment 1 to PSA with G4S Secure Solutions (USA) Inc.Attachments:
ADDITIONAL COUNCIL /BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND
SUGGESTIONS
ADJOURNMENT
13 City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-700 Meeting Date: 5/17/2022
TITLE:
Proclamation: National Emergency Medical Services Week 2022 DEPARTMENT: City Manager’s Office
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City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-702 Meeting Date: 5/17/2022
TITLE:
Proclamation: National Public Works Week 2022
DEPARTMENT: City Manager’s Office
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18 City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-703 Meeting Date: 5/17/2022
TITLE:
Proclamation: Mental Health Awareness Month 2022
DEPARTMENT: City Manager’s Office
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21 City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-691 Meeting Date: 5/17/2022
TITLE:
PROCEDURAL WAIVER: APPROVE THE READING BY TITLE ONLY OF ALL ORDINANCES AND
RESOLUTIONS
RECOMMENDATION:
City Council, Agency Board, and Housing Authority approve the reading by title only and waive full reading of Ordinances and Resolutions.
22 City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-692 Meeting Date: 5/17/2022
TITLE:
READING FOLDER
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:
City Council receive and file Claims received by the City Clerk: Marco Camberos, Juliet Cannon, Riccardo Grad, William Henry Saylor.
23 City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-694 Meeting Date: 5/17/2022
TITLE:
ADOPTION OF WARRANT RESOLUTION
DEPARTMENT: Finance Department
PRESENTED BY: Carol Molina, Finance Director
CONTACT INFORMATION: Carol Molina at (714) 754-5243
RECOMMENDATION:
City Council approve Warrant Resolution No. 2680
BACKGROUND:
In accordance with Section 37202 of the California Government Code, the Director of Finance or their designated representative hereby certify to the accuracy of the following demands and to the availability of funds for payment thereof.
FISCAL REVIEW:
Funding Payroll Register No. 22-09 On Cycle for $ 2,811,914.95 and City operating expenses for $2,371,479.64
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Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-696 Meeting Date: 5/17/2022
TITLE:
MINUTES
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:
City Council approve the Minutes of the Regular meeting of April 19, 2022 and the Special Study Session of April 26, 2022.
69 Minutes – Regular Meeting – April 19, 2022 Page 1 of 8
CITY OF COSTA MESA
REGULAR CITY COUNCIL AND SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND HOUSING AUTHORITY
MINUTES – APRIL 19, 2022
CLOSED SESSION 4:00 P.M.
CALL TO ORDER - The Closed Session meeting was called to order by Mayor Stephens at 4:01 p.m.
ROLL CALL
Present: Council Member Chavez, Council Member Reynolds (arrived 4:05 p.m.), Council Member Harlan, Council Member Harper, Mayor Pro Tem Marr (arrived 4:30 p.m.) and Mayor Stephens.
Absent: Council Member Gameros.
PUBLIC COMMENTS – NONE.
CLOSED SESSION ITEMS:
1. PUBLIC EMPLOYMENT WORKERS’ COMPENSATION CLAIM
Pursuant to California Government Code Section 54956.9(d)(1) WCAB NO. ADJ12260822
2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: City of Costa Mesa v. Ohio House, LLC, a California limited liability corporation; Richard Perlin, Nancy Perlin, Dolores Perlin, and Brandon Stump as individuals, United States District Court, Central District of California, Case No. 8:19-cv-01710 DOC (KESx).
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to California Government Code Section 54956.9(d)(1) Name of Case: Katherine Sherouse individually and doing business as Camp Lila v.
City of Costa Mesa, et al., United States District Court, Central District of California, Civil Action No. 8:22-cv-00756-JVS-ADSx 4.
4. CONFERENCE WITH LEGAL COUNSEL-INITIATION OF LITIGATION-ONE CASE Pursuant to California Government Code Section 54956.9(d)(2), Potential Litigation 70 Minutes – Regular Meeting – April 19, 2022 Page 2 of 8 City Council recessed at 4:04 p.m. for Closed Session.
Closed Session adjourned at 5:20 p.m.
REGULAR MEETING OF THE CITY COUNCIL AND SUCCESSOR AGENCY
TO THE REDEVELOPMENT AGENCY
APRIL 5, 2022 – 6:00 P.M.
CALL TO ORDER - The Regular City Council and Successor Agency to the Redevelopment Agency and Housing Authority meeting was called to order by Mayor Stephens at 6:00 p.m.
NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE
A video was played of the National Anthem and Council Member Harlan led the Pledge of Allegiance.
MOMENT OF SOLEMN EXPRESSION
Led by Mr. John Begin.
ROLL CALL
Present: Council Member Chavez, Council Member Gameros (via Zoom), Council Member Harlan, Council Member Harper, Council Member Reynolds (via Zoom), Mayor Pro Tem Marr and Mayor Stephens.
Absent: None.
CITY ATTORNEY CLOSED SESSION REPORT - No reportable action.
PRESENTATIONS
Mayor Stephens presented a proclamation in Remembrance of the Armenian Genocide.
Mayor Stephens presented a proclamation for Let’s Be Kind Month.
Mayor Stephens presented a proclamation for National Public Safety Telecommunications Week.
Mayor Stephens presented a proclamation for Arbor Day and Earth Day.
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Speaker, spoke on the rapid rise of rents and on affordable housing.
Wendy Leece, commended Chair McDonald on the presentation, thanked the City Council for the Sexual Assault Awareness Month Proclamation, requested additional police focus on massage parlors, spoke on speeding problems, and spoke on Camp Lila.
Matt Garcia, President of the Harbor Soaring Society, spoke on his application to the Fairview Park Steering Committee, and preserving open space.
71 Minutes – Regular Meeting – April 19, 2022 Page 3 of 8 Chris Collum, spoke on problems associated with a fire at his home.
Speaker, spoke on noise issues around his home at 2:00 a.m. from a local bar and food truck.
Speaker, spoke on a complaint of a potential animal abuse, and thanked the police department for checking into the matter.
Hank Castignetti, Orange County Model Engineers, spoke on the number of guests who visited over the week-end, and thanked the Goat Hill Lions Club for donating Easter baskets.
COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Council Member Harper spoke on Let’s Be Kind Month.
Council Member Reynolds thanked staff for the meaningful proclamations, spoke on the rapid rise of rents, housing affordability and providing information on available resources, spoke on Earth Day events, community walks and bike rides.
Council Member Chavez spoke on responding to public commenters, thanked first responders and spoke on a recent ride-along with the police department, encouraged the reporting of graffiti and bulky items pick up on the Costa Mesa App, expressed concerns on speeding on Meyer’s Place., and thanked the Parks and Recreation department for SpringFest.
Council Member Harlan spoke on presenting a proclamation to Dr. Henry Louria in honor of his 96th birthday, and thanked Ivis Torres, Management Aide for preparing the proclamation.
Mayor Pro Tem Marr spoke on attending a meeting with Supervisor Bartlett, attending the South Orange County multi-model stakeholders meeting, spoke in support of active transportation projects, and spoke on replacing turf with California native plants.
Mayor Stephens thanked all parties involved in the Ohio House Case and spoke on the decision in favor of the City, thanked Jennifer Le, Director of Economic and Development Services, and thanked Sy Everett and Everett Dorey law firm, recognized Brenda Green, City Clerk, for receiving the City Clerk Award of Distinction 2022 for Technology and Innovation, spoke on responding to public speaker comments, spoke on tenant and landlord rights and asked staff to prepare educational pieces on rights and issues related to rents.
REPORT – CITY MANAGER – Ms. Farrell Harrison thanked everybody for their kind comments on staff, thanked the speaker for sharing the story on potential animal abuse and the police department’s favorable response, spoke on releasing educational information on rental assistance, bulky items pick-up, and fair housing,and legal aid, congratulated the legal team on the Ohio House decision, congratulated Brenda Green, City Clerk, thanked Council Member Reynolds for nominating Ms. Green, spoke on the Earth Day Festival on April 22 nd, and congratulated the Public Services staff for recent awards from the American Society of Civil Engineers (ASCE) for:
Outstanding Architectural Engineering Project – Norma Hertzog Community Center Outstanding Transportation Project – Merrimac Way Bicycle Facility. 72 Minutes – Regular Meeting – April 19, 2022 Page 4 of 8 REPORT – CITY ATTORNEY – Ms. Hall Barlow indicated that she had responded to Mr.
Collum, and thanked the Everett Dorey law firm for their work on the Ohio House case.
CONSENT CALENDAR
MOVED/SECOND: Council Member Chavez/Mayor Pro Marr
MOTION: Approve recommended actions for Consent Calendar Item Nos. 1 through 6 except for item #5 which was pulled from the Consent Calendar.
The motion carried by the following roll call vote:
Ayes: Council Member Chavez, Council Member Gameros, Council Member Harlan, Council Member Harper, Council Member Reynolds, Mayor Pro Tem Marr, and Mayor Stephens.
Nays: None
Absent: None
Motion carried: 7-0
CONSENT CALENDAR ITEMS
1. PROCEDURAL WAIVER: APPROVE THE READING BY TITLE ONLY OF ALL
ORDINANCES AND RESOLUTIONS
ACTION: City Council, Agency Board, and Housing Authority approved the reading by title only and waived full reading of Ordinances and Resolutions.
2. READING FOLDER
ACTION:
City Council received and filed Claims received by the City Clerk: Camp Lila; Sohelia Nasiri.
3. ADOPTION OF WARRANT RESOLUTION
ACTION:
City Council approved Warrant Resolution No. 2678
4. ADOPTION OF A RESOLUTION TO ALLOW MEMBERS OF THE CITY COUNCIL,
COMMISSIONS AND COMMITTEES TO PARTICIPATE IN THE MEETINGS
REMOTELY, AS NEEDED, DUE TO HEALTH AND SAFETY CONCERNS FOR THE
MEMBERS AND THE PUBLIC
ACTION:
City Council adopted Resolution 2022-20 allowing members of the City Council, Commissions, and Committees to participate in the meetings, as needed, via Zoom due to:
The current State of Emergency and global pandemic, which continues to impact the ability of the members of the City’s legislative bodies to meet safely in person.
73 Minutes – Regular Meeting – April 19, 2022 Page 5 of 8 Federal, State and/or local officials continue to impose or recommend measures to promote social distancing.
6. MONTHLY UPDATE OF STRATEGIC PLAN GOALS AND OBJECTIVES ACTION:
City council approved the April 2022 update to the City of Costa Mesa’s Strategic Plan Goals and Objectives.
AT THIS TIME THE CITY COUNCIL WILL ADDRESS ANY ITEMS WITHDRAWN FROM THE CONSENT CALENDAR.
5. SERVICE AGREEMENT AMENDMENTS WITH TYLER TECHNOLOGIES AND PARK CONSULTING PERTAINING TO IMPLEMENTATION OF THE CITY’S LAND
MANAGEMENT SYSTEM (LMS) UPDATE
Council Member Harlan inquired on the increase in the budget and the hiring of consultants in lieu of staff working on the project.
Ms. Le responded the launch date is mid-2023, staff has budgeted for ongoing maintenance costs, and that both staff and the consultants with special expertise are working on the project.
MOVED/SECOND: Council Member Harlan/Mayor Pro Tem Marr
The motion carried by the following roll call vote:
Ayes: Council Member Chavez, Council Member Gameros, Council Member Harlan, Council Member Harper, Council Member Reynolds, Mayor Pro Tem Marr, and Mayor Stephens.
Nays: None
Absent: None
Motion carried: 7-0
ACTION:
1. City Council authorized the City Manager and City Clerk to execute Amendment No. 2 with Tyler Technologies, increasing the total compensation to a not-to-exceed amount of $1,060,856, in substantially the form as attached and in such final form as approved by the City Attorney.
2. Authorized the City Manager and City Clerk to execute Amendment No. 3 with Park Consulting Group, increasing the total compensation to a not-to-exceed amount of $393,250.
3. Authorized the City Manager to approve future amendments to the agreement with Park Consulting Group in an amount not-to-exceed $100,000.
PUBLIC HEARINGS – NONE.
OLD BUSINESS: NONE.
74 Minutes – Regular Meeting – April 19, 2022 Page 6 of 8 NEW BUSINESS:
1. PROFESSIONAL SERVICES AGREEMENT FOR COMMERCIAL KITCHEN
OPERATION AND MEAL SERVICES FOR THE COSTA MESA BRIDGE SHELTER Presentation by Nate Robbins, Neighborhood Improvement Manager.
MOVED/SECOND: Council Member Chavez/Mayor Pro Tem Marr
The motion carried by the following roll call vote:
Ayes: Council Member Chavez, Council Member Gameros, Council Member Harlan, Council Member Harper, Council Member Reynolds, Mayor Pro Tem Marr, and Mayor Stephens.
Nays: None
Absent: None
Motion carried: 7-0
ACTION:
1. City Council awarded a Professional Services Agreement (PSA) to Bracken’s Kitchen, for a term of 1 year with 3 one-year renewal options, in an amount not to exceed $327,600 annually for commercial kitchen operation and meal services for the Costa Mesa Bridge Shelter.
2. Authorized the City Manager and the City Clerk to execute the agreement and any future amendments to the agreement.
3. AWARD OF CONTRACT FOR CITYWIDE LANDSCAPE MAINTENANCE SERVICES Presentation by Robert Ryan, Maintenance Services Manager Discussion ensued on additional trash receptacles in the parks, the criteria on the bids and ratings, open space vegetation management, adding language in the scope of services that mowing services will be coordinated with a contracted biologist to ensure there is no conflict with restoration efforts and bird nesting season, removal of invasive weeds, additional trash pick-up on 19th street, the times parks open and close and incorporating sustainability green policy measures into the contact.
MOVED/SECOND: Mayor Pro Tem Marr/Council Member Chavez
The motion carried by the following roll call vote:
Ayes: Council Member Chavez, Council Member Gameros, Council Member Harlan, Council Member Harper, Council Member Reynolds, Mayor Pro Tem Marr, and Mayor Stephens.
Nays: None
Absent: None
Motion carried: 7-0
75 Minutes – Regular Meeting – April 19, 2022 Page 7 of 8 ACTION:
1. City Council approved the proposed Maintenance Services Agreement (MSA) with Brightview Landscape Services, Inc. for citywide parks and landscape maintenance services, in an amount not to exceed $2,364,061 annually, for an initial term of three (3) years with two (2) optional one-year extensions for a total of five years.
2. Approved a 10% contingency annually for irrigation and landscape repairs and other unforeseen costs and approval for Consumer Price Index (CPI) escalation and de-escalation.
3. Authorized the City Manager and City Clerk to execute the MSA and future amendments to the agreement within Council authorized limits with Brightview Landscape Services, Inc.
4. Added language in the scope of services that mowing services will be coordinated with a contracted biologist to ensure there is no conflict with restoration efforts and bird nesting season and to utilize sustainability green policy measures when feasible.
ADDITIONAL COUNCIL/BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS – None.
ADJOURNMENT – The Mayor adjourned the meeting at 7:57 p.m. 76 Minutes – Regular Meeting – April 19, 2022 Page 8 of 8 Minutes adopted on this 17th day of May, 2022.
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
77 Minutes – Special Study Session – April 26, 2022, Page 1 of 2
CITY OF COSTA MESA
REGULAR CITY COUNCIL AND SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY AND HOUSING AUTHORITY
SPECIAL STUDY SESSION - MINUTES
APRIL 26, 2022 – 5:00 P.M.
CALL TO ORDER - The Special Study Session meeting was called to order by Mayor Stephens at 5:00 p.m.
PLEDGE OF ALLEGIANCE – Mayor Stephens led the Pledge of Allegiance.
ROLL CALL
Present: Council Member Chavez, Council Member Gameros (via Zoom), Council Member Harlan, Council Member Reynolds, Mayor Pro Tem Marr, and Mayor Stephens.
Absent: Council Member Harper
STUDY SESSION ITEM:
FISCAL YEAR 2022-23 PROPOSED CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET AND FIVE-YEAR (2022-23 TO 2026-27) CIP STUDY SESSION
Presentation by Mr. Sethuraman, Public Services Director, Ms. Molina, Finance Director, Mr.
Seung, City Engineer, and Ms. Farrell Harrison, City Manager.
Public Comments:
Flo Martin, requested additional funding for Active Transportation projects.
Ralph Taboada, provided a powerpoint slide, and requesting prioritizing Active Transportation projects.
Speaker, spoke on rising rent costs and affordable housing.
Speaker, spoke on rising rent costs and affordable housing.
Speaker, spoke on rising rent costs and affordable housing.
Cynthia McDonald, requested current budgeted monies that are not being spent to be applied to other projects, spoke on cost sharing with the school district, and requested bike racks. 78 Minutes – Special Study Session – April 26, 2022, Page 2 of 2 Aaron McCall, requested more monies for protected bike paths, prioritizing funding for the climate action plan, and requested cooling centers.
Speaker, spoke in support of funding for housing and rental assistance, a fund for youth housing, expressed concern on rising rent prices.
Marc Vukcevich, requested additional funding for Active Transportation projects.
Discussion ensued on the bike infrastructure improvements, improving roads for all users, incorporating green alleys, the climate action plan, community connections, sidewalk improvements, improvements on Victoria St. West of the 55 freeway, improvements to the bus stops and shelters, community spaces for opportunities to gather, safe routes to schools, a page on the website on the status of projects, school district crossing guards, additional bike racks and bike racks for private property owners, applying current budgeted monies to other projects, wayfinding signage, the progress on projects and accomplishments, and the final improvements at the Lions Park project.
ADJOURNMENT – The Mayor adjourned the Special Study Session at 7:25 p.m.
Minutes adopted on this 17th day of May, 2022.
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
79 City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-695 Meeting Date: 5/17/2022
TITLE:
ADOPTION OF A RESOLUTION TO ALLOW MEMBERS OF THE CITY COUNCIL, COMMISSIONS
AND COMMITTEES TO PARTICIPATE IN THE MEETINGS REMOTELY, AS NEEDED, DUE TO
HEALTH AND SAFETY CONCERNS FOR THE MEMBERS AND THE PUBLIC DEPARTMENT: CITY MANAGER’S OFFICE/CITY CLERK DIVISION
PRESENTED BY: BRENDA GREEN, CITY CLERK
CONTACT INFORMATION: BRENDA GREEN, CITY CLERK, (714) 754-5221 RECOMMENDATION:
Staff recommends the City Council adopt Resolution 2022-xx to allow the members of the City Council, Commissions, and Committees to participate in the meetings remotely, as needed, via Zoom due to:
· The current State of Emergency and global pandemic, which continues to directly impact the ability of the members of the City’s legislative bodies to meet safely in person. · Federal, State and/or local officials continue to impose or recommend measures to promote social distancing.
BACKGROUND:
Pursuant to AB 361, the City Council will need to declare every 30 days that the City’slegislative bodies and individual members can continue to meet remotely, as needed, in order to ensure the health and safety of the members and the public.
On September 17, 2021 the Governor signed into law AB 361, which allows local legislative bodies to continue to meet remotely, and waive certain Brown Act posting requirements if:
· The local agency holds a meeting during a declared state of emergency; · State or local health officials have imposed or recommended measures to promote social distancing; and
· Legislative bodies declare the need to meet remotely due to present risks to the health or safety of all attendees.
ANALYSIS:
The City meets the requirements of AB 361 to continue holding meetings remotely in order to ensure the health and safety of the members, public and its employees. Both the California Department of Public Health and the County of Orange Public Health Officer have issued recommendations that
80 File #: 22-695 Meeting Date: 5/17/2022
Public Health and the County of Orange Public Health Officer have issued recommendations that members of vulnerable populations (such as older adults and those persons with an elevated risk due to certain medical conditions) continue to practice social distancing. The City cannot ensure social distancing requirements are always met inside the Council Chambers and/or Conference Rooms where the City Council, Commissions, and Committees meet, making it difficult for members of these bodies, City staff, and members of the public to consistently socially distance from each other with absolute certainty.
Staff recommends that the City Council adopt the proposed resolution making the required findings that the City Council, Commission and Committee meetings can continue to meet remotely, as needed, pursuant to the requirements of AB 361.
ALTERNATIVES:
City Council may choose not to hold City Council, Commission and Committee meetings remotely via Zoom. The City would then be required to hold all public meetings in-person.
FISCAL REVIEW:
There is no fiscal impact associated with this item.
LEGAL REVIEW:
The City Attorney’sOffice has reviewed this agenda report, has prepared the proposed Resolution, and approves them as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goal:
· Strengthen the Public’s Safety and Improve the Quality of Life.
CONCLUSION:
Staff recommends the City Council adopt Resolution 2022-xx to allow the members of the City Council, Commissions, and Committees to participate in the meetings remotely, as needed, via Zoom due to:
· The current State of Emergency and global pandemic, which continues to directly impact the ability of the members of the City’s legislative bodies to meet safely in person. · Federal, State and/or local officials continue to impose or recommend measures to promote social distancing.
81 ATTACHMENT 1
Resolution No. 2022-xx Page 1 of 2
RESOLUTION NO. 2022-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA MAKING
THE LEGALLY REQUIRED FINDINGS TO CONTINUE TO AUTHORIZE THE CONDUCT OF REMOTE “TELEPHONIC” MEETINGS DURING THE STATE OF
EMERGENCY
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS:
WHEREAS, on March 4, 2020, pursuant to California Gov. Code Section 8625, the Governor declared a state of emergency;
WHEREAS, on September 17, 2021, Governor Newsom signed AB 361, which bill went into immediate effect as urgency legislation;
WHEREAS, AB 361 added subsection (e) to Section 54953 to authorize legislative bodies to conduct remote meetings provided the legislative body makes speci fied findings;
WHEREAS, as of September 19, 2021, the COVID -19 pandemic has killed more than 67,612 Californians;
WHEREAS, social distancing measures decrease the chance of spread of COVID- 19;
WHEREAS, this legislative body previously adopted a resolution to authorize this legislative body to conduct remote “telephonic” meetings; WHEREAS, Government Code 54953(e)(3) authorizes this legislative body to continue to conduct remote “telephonic” meetings provided that it has timely made the findings specified therein.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Costa Mesa does hereby declare that it has reconsidered the circumstances of the state of emergency declared by the Governor and at least one of the following is true: (a) the state of emergency, continues to directly impact the ability of the members of this legislative body to meet safely in person; and/or (2) state or local officials continue to impose or recommend measures to promote social distancing.
82 ATTACHMENT 1
Resolution No. 2022-xx Page 2 of 2
PASSED AND ADOPTED this __ day of ___, 2022.
___________________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ ___________________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2022-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the ___ day of ___, 2022, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this __ day of __, 2022.
_________________________________
BRENDA GREEN, CITY CLERK
83 City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-699 Meeting Date: 5/17/2022
TITLE:
REQUEST TO CANCEL THE REGULAR CITY COUNCIL MEETING OF JULY 5, 2022 DEPARTMENT: CITY MANAGER’S OFFICE/CITY CLERK DIVISION
PRESENTED BY: BRENDA GREEN, CITY CLERK
CONTACT INFORMATION: BRENDA GREEN, CITY CLERK, (714) 754-5221 RECOMMENDATION:
Staff recommends the City Council cancel the regular meeting of Tuesday, July 5, 2022.
BACKGROUND:
The City conducts regularly scheduled City Council meetings on the first and third Tuesday of the month. The July 5th meeting follows the July 4th holiday weekend celebration and attendance at the meeting during a holiday week tends to decline. Moreover, cancelling the July 5th meeting would allow City Council members and staff an opportunity to schedule planned time off adjoining the holiday week-end.
ANALYSIS:
The City Council has the legal authority to establish meeting dates and times and to cancel or reschedule such meetings with proper public notice. Cancelling the July 5th meeting in May is well in advance for proper noticing and allows staff enough time to place items on the June 7th, June 21st, or July 19th agenda.
ALTERNATIVES:
The City Council may decide to still hold the meeting on Tuesday, July 5, 2022.
FISCAL REVIEW:
The Finance Department has reviewed and verified there is no fiscal impact.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the report and approved as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item is administrative in nature.
84 File #: 22-699 Meeting Date: 5/17/2022
CONCLUSION:
Staff recommends the City Council cancel the regular meeting of Tuesday, July 5, 2022.
85 City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-681 Meeting Date: 5/17/2022
TITLE:
BUSINESS IMPROVEMENT AREA (BIA) REAUTHORIZATION, RESOLUTION OF INTENTION, AND
REVIEW OF ANNUAL REPORT
DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: ALMA REYES, ASSISTANT TO THE CITY MANAGER CONTACT INFORMATION: ALMA REYES, ASSISTANT TO THE CITY MANAGER, (714) 754-5090 RECOMMENDATION:
Staff recommends the City Council:
1. Approve the 2021-2022 Annual Report for the Business Improvement Area (BIA) (Attachment 1).
2. Receive and file the audited financial report for Fiscal Years 2020 and 2021 (Attachment 2).
3. Adopt the Resolution declaring the City’s intention to levy an annual assessment for Fiscal Year 2022-23 for the Business Improvement Area covering certain Costa Mesa hotels and motels and setting the time and place for a Public Hearing on the proposal (Attachment 3).
BACKGROUND:
The Parking and Business Improvement Area Law of 1989 (Streets and Highways Code §§ 36500, et seq.) enables cities to impose an assessment fee on businesses within an area designated by the City.
On July 5, 1995, the City Council adopted Ordinance No. 95-9 to establish a Business Improvement Area (BIA) for the purpose of assisting the hotel and motel industry in its promotion of tourism within the City.
The City Council authorized the City Manager to enter into an agreement with the Costa Mesa Tourism and Promotion Council to develop and administer the BIA. In 2001, the Costa Mesa Conference & Visitor Bureau (CVB), now known as Travel Costa Mesa (TCM), became the administrator of the BIA.
In accordance with TCM bylaws, TCM’sBoard of Directors is currently comprised of eleven (11) General Managers from the eleven (11) participating hotels and motels, one member of the City Council, and the City Manager’s designee.
86 File #: 22-681 Meeting Date: 5/17/2022
Since November 2010, the City levies a three percent (3%) special assessment on the eleven (11) participating hotels in the BIA based on the sale of overnight guestroom stays in the partner hotels (2,375 total available rooms). The levy is transmitted by the hotels to the City and ninety-nine point nine percent (99.9%) of the assessment is remitted to TCM. The remaining one percent is retained by the City to offset administrative costs.
ANALYSIS:
Currently, the number of properties included in the BIA assessment levy is limited to the eleven (11) hotels and motels that have expressed an interest in participating in the program as detailed in the proposed Resolution of Intention (Attachment 3). Upon adoption of the Resolution of Intention, property owners of the participating hotels will be notified in writing within seven (7) days of the assessment renewal. Subsequently, the Resolution will be published in the Daily Pilot at least seven (7) days prior to the public hearing scheduled for June 7, 2022 at 7 p.m. City staff will also notify all the hotels and motels in the City not currently included in the BIA to allow them the opportunity to participate in the BIA.
Property owners will be provided an opportunity to speak in support of, protest the annual assessment, and/or address any concerns regarding the BIA at the public hearing. The City Council will vote to adopt or deny the resolution levying an annual assessment for the upcoming fiscal year, and makes the ultimate decision as to the size of and the properties to be included in the BIA. Upon the approval of the annual assessment, the three percent (3%) assessment is collected along with the City’sTransient Occupancy Tax (TOT). The hotels and motels included in the BIA are required to itemize the BIA levy as a separate assessment. The staff at TCM manage the day-to-day activities and provide all services to administer the BIA.
Per the agreement between the City of Costa Mesa and TCM and as required by Streets and Highways Code section 36533, TCM is required to provide an annual report describing the programs and activities implemented during the previous fiscal year as well as the status of the programs and activities implemented during the current fiscal year (Attachment 1). The City Council may approve the report as filed or modify the report and approve it as modified. Once the City Council approves the report, it may adopt the resolution of intention to levy the annual assessment.
Further, in accordance with the agreement between the City and TCM, the annual audit for Fiscal Years 2020 and 2021 has been completed by KMJ Corbin & Company, an independent auditor, and paid for by assessment funds. The audit is intended to ensure that the assessment revenue is expended for public purposes as specified within the resolution and that no expenditures are made in a manner contrary to the agreement. The City Council is requested to receive and file the independent audit (Attachment 2).
Highlights of the 2021-2022 Fiscal Year
Travel Costa Mesa continues its dedication to showcasing the City of Costa Mesa as the City of the ArtsTM and further enhancing the City’sbrand as a premier destination City in Orange County. Their efforts included innovative ways to partner with influencers and content creators to amplify messaging across various platforms, summer and holiday co-ops with Visit California, and meetings
87 File #: 22-681 Meeting Date: 5/17/2022
guide videos.
Despite the varied opportunities for economic activity within the tourism industry due to the Delta and Omicron COVID-19 variants in the fall and winter of 2021, TCM continued its efforts in marketing, media and communications relations, and group sales.
TCM’swebsite increased new website users by 6.73% and page views by 5.05% over the calendar year. Organic search traffic grew considerably due to search engine optimization efforts, gaining 140.50% year over year.
Media and community relations continued with influencers and traditional publication sites, such as Benzinga, MarketWatch, Yahoo Finance, Voice of OC, Los Angeles Times, Daily Pilot, StreetInsider, Michelin Guide, Visit California, and more. TCM’spress releases throughout this time generated over 361.6 million cumulative impressions, a 31.5% increase from the previous fiscal year.
Group sales continued with partner hotels, where TCM generated over 200 leads, representing over 800,000 room nights, and booked 25 meeting and events with 4,799 rooms at partner hotels.
ALTERNATIVES:
City Council may choose to deny the resolution of intention, which will prevent the public hearing from taking place to consider levying an annual assessment for the upcoming fiscal year.
FISCAL REVIEW:
According to the audit report, TCM’scash equity as of June 30, 2021 totaled $2,219,851. Based on the 2021-22 annual report, TCM is forecasting to come in at $2.184 million for the current fiscal year.
As of February 2022, BIA revenues were at $1.592 million, a 125% increase from the previous fiscal year. However, FY 21-22 forecasting shows a 6% decrease compared to FY 20-21.
The City receives one percent (1%) of the BIA revenue/assessment as partial reimbursement for its collection and administrative costs. The one percent (1%) allocated to the City for reimbursement is estimated at $21,840 for the 2021-2022 Fiscal Year.
Since 2014, TCM has also provided funding to the City to support community-wide marketing and community events that attract many visitors to Costa Mesa under a Professional Services Agreement (PSA). The City began budgeting the TCM Community Events Programing for a total of $164,000 within the City’sfinancial system. This budget is typically added annually as an addendum to the existing Professional Services Agreement between the City and TCM, approved by City Council at a public hearing.
In March 2020, the COVID-19 pandemic triggered suspension of all community events and a majority of City programs. The on-going pandemic had a significant financial impact on TCM’s operational budget, resulting in the suspension of TCM’s community events budget for Citywide marketing and support of community events, for example, ARTventure, Annual Snoopy House, Summer Concerts in the Park, and more.
Although the TCM community event funds were not available during FY 20-21 and FY 21-22, City staff managed to host community events, following all State and Federal COVID-19 guidelines. The expenses for the events, historically funded by TCM, were absorbed in the General Fund from
88 File #: 22-681 Meeting Date: 5/17/2022
expenses for the events, historically funded by TCM, were absorbed in the General Fund from department vacancy savings.
As the country emerges from the pandemic and State guidelines loosen, the City intends to resume all special community events and marketing efforts to pre-pandemic levels.
LEGAL REVIEW:
The City Attorney’s Office reviewed this report, and has reviewed and approved the resolution as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the City Council’s continuous efforts to promote the City of Costa Mesa for its rich and vibrant community that offers many attractions for residents, visitors and businesses.
CONCLUSION:
Adoption of the resolution of intent is the initial step in the reauthorization of the BIA assessment.
State law mandates the specific procedure to be followed in the establishment of such an area. Staff will make a presentation to the City Council on the implementation of the BIA assessment at the public hearing on June 1, 2021; however, the City Council must approve the annual report and the proposed resolution of intention before the hearing can be scheduled to consider the levying of an annual assessment.
Therefore, staff recommends that the City Council:
1. Approve the 2021-22 Annual Report for the Business Improvement Area (BIA) (Attachment 1).
2. Receive and file audited financial report for Fiscal Years 2020 and 2021 (Attachment 2).
3. Adopt Resolution 22-xx, declaring the City’sintention to levy an annual assessment for Fiscal Year 2022-23 for business improvement area covering certain Costa Mesa hotels and motels and setting the time and place for a public hearing on the proposal (Attachment 3).
89 2 0 2 1/ 2 2 ANNUAL REP O RT
ATTACHMENT 1
90 4 President’s Message
5 Mission of Travel Costa Mesa
6 Travel Costa Mesa Funding
8 Lodging/Hotel Partners
10 Travel Sentiment
12 U.S. Travel Association
14 Visit California’s Recovery
18 Marketing Costa Mesa
24 Media & Community Relations
28 Group Sales
31 Travel Costa Mesa Leadership
TABLE OF
CONTENTS
91 3// TRAVEL C OSTA MESA //
92 PRESIDENT’S
MESSAGE
Resilience is the
ability to adapt to
new circumstances
when life predicts
the unpredictable”
— Salvatore R. Maddi
THIS fiscal year, Travel Costa Mesa (TCM)
continued to be flexible and adaptable as
we created opportunities to amplify our
strategy. June and July 2021 brought on
hope and growing economic activity for the
tourism industry: summer weekend travel
from the domestic leisure market increased in
occupancy and in average daily rate compared
to 2019. At that time, we saw reason to be
excited as vaccination rates were climbing and
so did the desire to travel. As we approached
the end of fall and winter, the delta and
omicron COVID-19 variants caused an
additional change in direction.
U.S. Travel Association, the national, non-profit
organization representing all components of
the travel industry, continued to lobby and
ensure funding was available for the industry,
which has been hit hardest throughout the last
// 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
24 months. Their advocacy efforts impacted
the travel and tourism industry and enabled
funding that supported the return to leisure
travel. Safe in-person meetings and events
were also prioritized, and communication was
shared on how to conduct them safely.
Visit California, our state’s destination
marketing organization, continues to invest
in creating traveler demand. In June 2021,
Visit California received a $95 million state
stimulus to be used for marketing. The
stimulus strategy includes cultivating the
California brand, trigger active consideration,
and drive market development both in and
out of state. These funds are also assisting
destination marketing organizations to
develop flexible collaborative marketing
opportunities that build brand awareness
through digital platforms.
93 MISSION
STATEMENT
Travel Costa Mesa enhances and promotes
the destination brand experience, further
increasing visitor spending for industry
and community economic viability,
sustainability, and quality of life.
ª
In 1995, Travel Costa Mesa was formed as a
non-profit corporation to market the city of
Costa Mesa as a desirable, leisure overnight
destination in Orange County.
VISION
STATEMENT
Travel Costa Mesa is the engaged destination
marketing leader, supporting, and selling the
city’s distinct visitor brand experiences and
advocating community tourism benefits.
ª
TCM’s marketing efforts continue to focus
on the drive market, a radius of consumers
within a few hours of our city. An explosion of
influencers amplifying our messaging about
the amazing things to experience in Costa
Mesa, summer and holiday co-ops with Visit
California, and meetings guide videos are just
a sampling of the completed projects this year.
New group business opportunities for TCM are
becoming fruitful with the addition of in-person
trade shows that our destination sales executive
has been attending.
As 2022 progresses, we look to a brighter
future which includes pent up demand for
leisure travel and the return of some corporate
travel. Reports and surveys from U.S. Travel
Association, Visit California, and Destinations
Analysts continue to be essential for us to
create forecasts, compare pre-pandemic
business to this year, and understand current
travel sentiment.
According to Tourism Economics, a full recovery
for the industry could take two more years.
TCM is dedicated to supporting travel and
tourism for its partners and those that rely
on the industry to keep their doors open. Our
strategies must remain flexible as marketing
opportunities evolve, but the goal of increasing
brand awareness for the city of Costa Mesa as
a desirable Orange County destination for both
leisure and group business is our top priority.
Paulette Lombardi-Fries
PRESIDENT, TRAVEL COSTA MESA
// TRA V EL COSTA M ESA //
KEY
OBJECTIVE
Increase brand awareness for the city
of Costa Mesa as a desirable, overnight,
leisure Orange County destination.
ª
SALES
OBJECTIVE
Increase brand awareness and new group room
nights for the city of Costa Mesa – to make it
the preferred Orange County destination ideal
for small to mid-size business and boost the
economic benefits throughout the city.
94 Business Improvement
0 TCM
FUNDING
TCM Funding
TRAVEL COSTA MESA IS ENTIRELY FUNDED through
a Business Improvement Assessment (BIA). Each of the
11 Costa Mesa partner hotels listed in this annual report collects a 3 percent levy from overnight hotel guests
(2,375 total available rooms). All Transient Occupancy
Tax (TOT) that the city of Costa Mesa collects goes into its general fund.
BUSINESS IMPROVEMENT ASSESSMENT (BIA)
Business owners shall pay the assessment to the Costa
Mesa City Finance Department on a monthly basis. A
penalty and interest shall be assessed on late payments.
New hotel and motel businesses that are interested in
participating in the BIA should contact the City and TCM.
This is a voluntary program for hotel partners.
4 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
95 D
C
D
FISCAL YEAR 2021/2022
TCM is forecasting BIA revenue to come in at
$2.184M for the current fiscal year. As of February
2022, BIA funds are at $1.592M. TCM forecasts
a 125 percent increase from previous fiscal year
2020-2021. However, fiscal year 2021-2022 is
forecasted to come in at a 6 percent decrease,
compared to fiscal year 2019-2020. TCM’s highest
record of BIA was in fiscal year 2018-2019 in
which revenue reached $2.767M.
BIA REVENUE
FY 20 20 -20 21 FY 20 21-20 22
2500
2000
1500
1000
0.500
0.000
$972K
% YOY
$2.184 M
FORECASTED
OY
PRIMARY EXPENSES FY 2021/2022
The following represents the primary expense
projections for the current fiscal year:
A
B
C
A .Total Marketing Expenses 27%
B. Total Employee Expenses 32%
C. Total Administrative Expenses: 8%
D .Total Sales Expenses: 8%
*Additional BIA revenue will be used towards
marketing for group business and transient markets
**In addition to the above expenses, existing reserves
will be used for hotel marketing funds in the amount
of $476k and $50k for group sales incentives.
// TRA V EL COSTA M ESA //
96 LODGING + ADDRESS BUSINESS OWNER PROPERTY OWNER
Avenue of the Arts
Costa Mesa, A Tribute
Portfolio Hotel
3350 Avenue of the Arts Rosanna Inc. Rosanna Inc.
Costa Mesa, CA 92626 3350 Avenue of the Arts 3350 Avenue of the Arts Costa Mesa, CA 92626 Costa Mesa, CA 92626
Ayres Hotel Costa Mesa
325 Bristol St. Newport Country Inn & Suites, Inc. Newport Country Inn & Suites, Inc.
Costa Mesa, CA 92626 355 Bristol St., Ste. A 355 Bristol St., Ste. A Costa Mesa, CA 92626 Costa Mesa, CA 92626
Best Western Plus
Newport Mesa Inn
2642 Newport Blvd. James Hsuen & Shang-Pu Lee James Hsuen & Shang-Pu Lee Costa Mesa, CA 92627 2642 Newport Blvd. 2642 Newport Blvd.
Costa Mesa, CA 92627 Costa Mesa, CA 92627
Crowne Plaza
3131 Bristol St. Brighton Management Bright Bristol Street, LLC Costa Mesa, CA 92626 20342 SW Acacia St. 3131 Bristol Street Newport Beach, CA 92660 Costa Mesa, CA 92626
Hilton
3050 Bristol Street Ashford TRS CM LLC Remington Lodging & Hospitality LP Costa Mesa, CA 92626 14185 Dallas Pkwy, Ste. 1100 14185 Dallas Pkwy, Ste. 1100 Dallas, TX 75254 Dallas, TX 75254
Holiday Inn Express
Hotel & Suites
2070 Newport Blvd. Narendra B. Patel Narendra B. Patel
Costa Mesa, CA 92627 2070 Newport Blvd. 2070 Newport Blvd.
Costa Mesa, CA 92627 Costa Mesa, CA 92627
OC Hotel Costa Mesa
(Formerly BLVD Hotel)
2430 Newport Blvd. Sai Hospitality Services, LLC Sanjay Panchal Costa Mesa, CA 92627 11556 Manchester Way 11556 Manchester Way Porter Ranch, CA 91326 Porter Ranch, CA 91326
Marriott
500 Anton Blvd. Starwood Capital Group HEI Hotels & Resorts Costa Mesa, CA 92626 591 West Putnam Ave. 101 Merritt 7 Corporate Park, 1st Flr Greenwich, CT 06830 Norwalk, CT 06851
Ramada Inn & Suites
1680 Superior Ave. B.D. Inn Inc./Ramada Ltd. B.D. Inn Inc./Ramada Ltd.
Costa Mesa, CA 92627 1680 Superior Ave. 1680 Superior Ave.
Costa Mesa, CA 92627 Costa Mesa, CA 92627
Residence Inn by Marriott
881 Baker St. Marriott International BRE Select Hotels & Resorts Costa Mesa, CA 92626 10400 Fernwood Rd. 6201 15th Ave.
Bethesda, MD 20817 Brooklyn, NY 11219
The Westin
South Coast Plaza
686 Anton Blvd. Host Hotels & Resorts CJ Segerstrom & Sons Costa Mesa, CA 92626 6903 Rockledge Dr., Ste. 1500 c/o South Coast Plaza Bethesda, MD 20817 686 Anton Blvd.
Costa Mesa, CA 92626
5 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
LODGING/
HOTEL
PARTNERS
97 2021
2021
2020
2020
2019
2019
PUSHING FORWARD IN COSTA MESA
HOTEL group segments hopeful return and corporate long-term business shifts will be key to navigating towards a successful recovery. Transient and group business for our hotel partners continue to struggle. Measurements of success have been compared to 2019 results with little attention drawn to what transpired in 2020. Our 11 partnering hotels achieved a 58.5 percent occupancy in 2021, which is down over 25 percent compared to 2019. Average daily rate in 2021 was $137.45 down 6.8 percent to 2019. Revpar, which is the calculation of revenue per available room for our hotel set, was down over 31.5 percent comparing 2021 to 2019. All segments of travel are not expected to fully recover until 2024.
OCCUPANCY OF HOTEL PARTNERS
(2019 - 2021)
Hilton Costa Mesa Ayres Hotel
HOTEL INVENTORY FOR THE STATE
The Golden State had a record number of guestroom openings in 2021. However, developers that completed or were close to finalizing their projects in 2020 held off until the following year as noted by Alan Reay, president of the Atlas Hospitality Group (AHG). According to his company’s “California Hotel Development Survey 2021”, a total of 12,027 new guestrooms opened in California compared to a then-record 11,795 in 2019 and 88 hotels opened in 2021 compared to 92 in 2019.
Higher-end, limited-service properties such as Residence Inn, SpringHill Suites, and Hilton Garden Inn made up the majority of new builds. Marriott International-branded hotels led California in guestroom openings with 3,886 rooms. The company also led in development with 34 properties under construction and totaling 4,797 rooms. Los Angeles had 21 new hotels open that totaled 3,249 rooms while the largest hotel that opened was The Westin Anaheim Resort with 613.
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
AVERAGE DAILY RATE OF HOTEL PARTNERS
(2019 -2021)
AVG
DAILY
RATE
$155.00
$150.00
$145.00
$140.00
$135.00
$130.00
$125.00
$120.00
$115.00
$110.00
Costa Mesa Marriott’s modern & sleek room renovation
// TRA V EL COSTA M ESA //
98 TRAVEL
SENTIMENT
FOR the past 24 months, we have been studying an independent weekly research study conducted by Destinations Analysts that surveyed over 1,200 American travelers about their perceptions and behaviors surrounding travel. The results were turbulent, as new variants were identified throughout the year and travel sentiment fluctuated. But scenic beauty, warm weather, outdoor activities, road trips, and dining in regional restaurants are currently interests that remain top of mind for travelers.
Throughout February 2022, coronavirus cases dropped and optimism about the pandemic’s course in the next month increased. Urban, beach locations, and small towns are currently the top three desired destinations. Family, romantic getaways, girlfriend, solo, and reunion trips are most desired, with fun and relaxation as top of mind for these travelers. By the end of February, over 82 percent of Americans were looking forward to traveling. In fact, 61.5 percent said travel is a high-budget priority. Twenty percent already have leisure trips planned.
April, May, June, and July are forecasted to be strong travel months. The booking window for planning remains short. Those that plan on taking a seven-day break are booking their vacation less than 60 days out. States of interest are New York, Florida, Las Vegas, California, and Hawaii. Thirty percent of American travelers are interested in vacationing abroad. Italy and France are at the top of the list with Canada, Mexico, the Caribbean, and Japan following.
// 20 2 1-2 0 2 2 AN N UAL REP O RT //
10 99
11 11
2022 Travel Sentiment Trends
want to visit places
they’ve never been to
want to try to limit
their personal impact
on the environment
tend to prefer active
time vs. down time on
vacation
Source: Destination Analysts – February 2022 month-end survey of over 1,200 American travelers // TRA V EL COSTA M ESA //
54% 53% 47%100
REPRESENTING and advocating for all components in the travel industry, U.S. Travel Association is a nonprofit national organization that promotes and facilitates travel to the United States. This organization worked with the U.S. government to secure language in the American Rescue Plan Act that specified funds could be used to aid in the travel and tourism industry.
Grant monies from the U.S. Economic Development Administration were specified for travel, tourism, and outdoor recreation. Airline and airport-relief grants supported workers as well as prevention, preparedness, and response measures to aide in the fight against COVID-19.
Paycheck protection plan and employee-retention tax credit programs were also supported and pushed for.
Strategic priorities throughout the year focused on the return of business travel, meetings and events, increase leisure demand, safely restore international travel, communicating the power of travel, strengthening and convening membership and paving the future of travel. of full-time employees
agree that taking vacation is
IMPORTANT TO THEIR
JOB SATISFACTION
Source: Destination Analysts – December 2021
12 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
U.S. TRAVEL
ASSOCIATION
77%
101
Business at Hand
The national travel industry recovery for the leisure segment continues to be strong. Even during the COVID-19 omicron and delta surge, many travelers carried on with their vacation plans. Business travel continues to lag and postponing of meetings and group business occurred once again in the winter. International arrivals in 2021 were down over 73 percent compared to 2019.
TRAVEL FORECAST | FALL 2021
VOLUME
U.S TRAVEL FORECAST - VOLUME TRAVEL FORECAST 2019 2020 2021 2022 2023 2024 2025
Total # of trips 2.40 B 1.60 B 2.04 B 2.29 B 2.47 B 2.57 B 2.61 B Domestic Person Trips 2.32 B 2.53 B
Leisure 1.84 B 2.04 B
Business 464 M 492M
Auto 2.13 B 2.32 B
Air 189 M 214 M
International Arrivals 79 M 84 M
Canada 21 M 24 M
Mexico 18 M 19 M
Overseas 40 M 8 M 10 M 22M 31 M 38 M 41 M
Sources: Tourism Economics and U.S. Travel Association
Total travel spending for 2021 is estimated at $877 billion compared to $1.17 trillion in 2019. Domestic travel spending, which includes leisure and business, was down 15 percent.
International spending in 2019 totaled $181 billion compared to $40 billion in 2021 with the SYM P H O N Y TOURISM ECONOMICS largest differential coming from the leisure segment.
Cumulative Losses Since January 2020
TRAVEL FORECAST | FALL 2021
SPENDING
U.S TRAVEL FORECAST - SPENDING TRAVEL FORECAST 2019 2020 2021 2022 2023 2024 2025
Total Travel Spending $1.17 T $680 B $877 B $1.06 T $1.16 T $1.23 T $1.26 T Domestic $992B $1.06 T
Leisure $722 B $776 B
Business $270 B $284 B
Transient $157 B $169 B
Group $113 B $115 B
International $181 B $198 B
Leisure $145 B $162 B
Business $36 B $36 B
Transient $22 B $4.6 B $5 B $16 B $19 B $22 B $22 B
Group $14 B $2.7 B $3 B $8 B $11 B $13 B $14 B
Sources: Tourism Economics and U.S. Travel Association
United States, through December 2021
Travel Spending
(difference)
Federal Taxes
U.S. Travel Spending Year-to-Date by State
YTD through December 2021, % change vs. 2019
State Taxes
U.S. total
-20%
$13,64 2M
Local Taxes
// TRA V EL COSTA M ESA //
1.58 B 2.O2 B 2.24 B 2.40 B 2.29 B
1.40 B 1.77 B 1.86 B 1.95 B 2.01 B
181 M 250 M 371 M 446 M 484 M
1.50 B 1.89 B 2.07 B 2.21 B 2.29 B
79 M 131 M 166 M 189 M 206 M
19 M 21 M 52M 68 M 78 M
5 M 3 M 14M 18 M 22 M
7 M 9 M 17M 18 M 19 M
$642 B $838 B $932B $997 B $1.04 T
$555 B $702 B $726 B $745 B $766 B
$88 B $136 B $206 B $252 B $277 B
$59 B $93 B $127 B $152 B $164 B
$28 B $43 B $79 B $100 B $113 B
$38 B $40 B $131 B $159 B $183 B
$31 B $32 B $107 B $130 B $148 B
$7.3 B $8 B $24 B $30 B $35 B
$730 .7B
$53,118 M
$22,978 M
102
Variables Used in Analyzing the Marketing Landscape
ALTHOUGH the domestic leisure markets throughout the country assisted in the road to recovery, travel spending in total for 2021 will equate to just two-thirds of 2019 overall spending. California’s domestic leisure market is expected to recover in 2022. However, domestic business, including meetings and events and international segments, will take two more years to fully recover compared to 2019 levels.
THE KEY OBJECTIVE of Visit California
(VCA), our state’s destination marketing
organization, is to restore and increase
domestic leisure travel, professional meetings
and events (the first time in marketing to this
segment), international travel, and urban
tourism in California.
13 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
VISIT
CALIFORNIA’S
RECOVERY
103
Visit California’s $95 million stimulus from the governor’s office for fiscal year 2021/2022 allowed for partnership opportunities with destination marketing organizations throughout the state and the continuation of inspiring the California dream. TCM took advantage of this partnership and was able to amplify our reach with a summer, winter holiday and spring campaign this fiscal year. Calling All Californians, Road Trip Republic, What If and always on search and content distribution programming was continued and new programs such as urban core, Kidifornia/snow, culinary and business/ group travel were added to VCA’s plan.
In 2022, VCA’s top international prospects will be Mexico and Canada. Those markets, in addition to the United Kingdom, Germany, and Australia, pose the highest likelihood to visit California, which is above pre-pandemic levels. While VCA’s historic and expected future value of China will keep it as a priority market, political pressure and COVID-19 protocols create an uncertainty there. Public health, economic factors, and consumer sentiment are being used to determine international opportunities.
Likelihood to Visit California vs. Pre-Pandemic Baseline 56 4
7 57
26 29
22 33
40 25 24 25
31 38
21 42
31 22
25 Australia Canada China France Germany Japan Mexico South U.K.
Korea
3.0 10.3 -15.9 -1.3 5.6 -16.7 9.9 -11.1 2.7
11.5% 46.4% -28.4% 5.2% 22.2% -44.4% 21.1% -26.5% 12.2% Baseline Jan 2022 wave
Point difference
and % change
In 2021, occupancy levels for the state of California reached just over 61 percent compared to just over 49 percent in 2020. July and August 2021 were the two highest months of occupancy within the first half of fiscal year 2021/22. Areas within the state with the highest occupancies include the Inland Empire, Shasta Cascade, North Coast, and Central Valley. Average daily rates within the state for 2021 reached $153.85 vs $130.28 in 2020.
// TRA V EL COSTA M ESA //
104
2022 Forecast Hotel Occupancy Relative to 2019
Source: Tourism Economics, Lodging Forecast ( Dec. 2021) Cumulative Local & State Taxes Lost / Jan 2020-Dec 2021 Source: Tourism Economics on behalf of USTA
14 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
VISIT
CALIFORNIA’S
RECOVERY
105
CALIFORNIA AIRLIFT
(California Totals)
TOTALS
2021 2020 2019
% Change
from 2020
% Change
from 2020
John Wayne Airport, Orange County (SNA)
January 4,263,584 17,927,298 17,509,241 -76.2% -75.6%
February -73.5%
March -65.1%
April -57.1%
May -48.7%
June -40.7%
July -34.4%
August -37.6%
September -35.0%
October -30.8%
YTD* 102,657,744 68,103,219 199,738,365 50.7% -48.6%
DOMESTIC
2021 2020 2019
% Change
from 2020
% Change
from 2020
January 3,705,606 14,409,007 14,014,502 -74.3% -73.6%
February -70.3%
March -60.8%
April -51.4%
May -42.2%
June -33.2%
July -26.4%
August -30.9%
September -27.2%
October -23.1%
YTD* 93,261,961 58,547,293 162,276,589 59.3% -42.5%
INTERNATIONAL
2021 2020 2019
% Change
from 2020
% Change
from 2020
January 557,978 3,518,291 3,494,739 -84.1% -84.0%
February -87.7%
March -84.8%
April -82.2%
May -77.1%
June -72.3%
July -67.6%
August -66.3%
September -68.0%
October -65.7%
YTD* 9,395,783 9,555,926 37,461,776 -1.7% -74.9%
1. Aircraft used for regularly scheduled air service, configured with not more thatn seventy (70) seats, and operation at weights not more than ninty thousand (90,000) pounds.
2. All-Cargo Carriers: 1,373 tons Passenger Carriers (incidential belly cargo): 77 tons Current cargo tonnage figures in this report are for: November 2021
3. Includes all Canada and Mexico Commerical passengers and operations. // TRA V EL COSTA M ESA //
Sources: individual airports. * Note: Monthly figures may not sum to YTD due to data revisions. Airports include Airports include Los Angeles, Burbank, Long Beach, Ontario, Orange County, Oakland, Sacramento, San Diego, San Jose, San Francisco
4,251,879 16,150,142 16,048,966 -73.7%
6,830,848 8,520,466 19,545,437 -19.8%
8,431,744 739,133 19,652,201 1040.8%
10,618,628 1,591,004 20,696,477 567.4%
12,932,248 3,198,022 21,814,825 304.4%
14,935,685 4,482,725 22,755,030 233.2%
13,961,995 4,885,769 22,378,689 187.5%
12,526,728 4,929,772 19,257,968 154.1%
13,904,405 5,708,888 20,079,531 143.6%
3,890,582 13,509,201 13,100,720 -71.2%
6,303,117 7,052,175 16,082,812 -10.6%
7,787,037 654,059 16,033,953 1090.6%
9,738,031 1,507,544 16,854,310 546.0%
11,773,788 3,011,044 17,633,938 291.0%
13,507,627 4,172,590 18,344,723 223.7%
12,528,251 4,476,438 18,126,708 179.9%
11,358,746 4,529,101 15,609,239 150.8%
12,669,176 5,226,134 16,475,684 142.4%
361,297 2,640,941 2,948,246 -86.3%
527,731 1,468,291 3,462,625 -64.1%
644,707 85,074 3,618,248 657.8%
880,597 83,460 3,842,167 955.1%
1,158,460 186,978 4,180,887 519.6%
1,428,058 310,135 4,410,307 360.5%
1,433,744 379,331 4,251,981 278.0%
1,167,982 400,671 3,648,729 191.5%
1,235,229 482,754 3,603,847 155.9%
106
Promote brand
awareness of
Costa Mesa
Promote safe
travel to Costa
Mesa in our
creative and in
our content
AS WE ENTERED 2021, TCM continued to work through the challenges of a once-in-a- century pandemic. The early months showed signs of improvement, though we had some dips due to the delta and omicron variants that caused increased bursts of COVID cases throughout the year. While 2021 continued to be a difficult year for the tourism industry, we seemed to have figured out how to market safe travel through these times, including imagery with masks, avoiding group imagery, highlighting outdoor experiences, and the like.
TCM returned to our “always-on” marketing strategy— we mixed brand awareness with promotional campaigns during need times to help increase hotel room night occupancy.
Besides a couple of small campaigns, we did not promote travel to Costa Mesa in much of 2021. Our most important goals were to:
Continue strong
support for our local
retail and dining
businesses through
the pandemic by
sharing promotional
offers and special
events
TCM continued marketing only to nearby drive markets in Los Angeles, San Diego, the Inland Empire, and even communities within Orange County for “staycations” or trips close to home.
We did begin to do more public relations (brand) outreach to areas in greater California and even the West Coast, as applicable. While we began to build our marketing budget back up from where it had been reduced in 2020, our online marketing budget was still only 62 percent of what it was in 2019.
15 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
MARKETING
COSTA MESA
. 3
111... 222.. 33 ..
107
S
E
O
WEBSITE TRAFFIC
Travelcostamesa.com ended calendar year 2021 with total website users up 4.05 percent (312,796 vs. 300,616) and sessions up 6.51 percent (372,296 vs. 349,539) over the previous year. Clearly, the pandemic continued to cause our traffic to struggle with growth.
It was an interesting year for website traffic. Where we saw channels driving huge growth last year (for example, our Taboola content marketing channel), they didn’t drive the same numbers in 2021. Why? We surmise it is primarily due to the first half of 2021 (January to June) when there were multiple factors: less ads, higher cost per click, more competition, and breaks in ads. Subsequently, based on changes in blog selection, bidding parameters, and optimization, it has picked up. In fact, cost per click is now the most competitive in Taboola, which may not be sustainable, but it will definitely be more competitive than in recent past.
We increased new website users by 6.73 percent (316,673 vs. 296,717) and pageviews by
5.05 percent (565,640 vs. 538,473) year over calendar year. The second half of 2021 (July to December) already performed significantly better than the first half:we increased in total users by 56.75 percent, total sessions by 61.62 percent and total pageviews by 70.38 percent. The chart below shows total growth the last half of 2021 compared to the last half of 2020. Things are getting better.
We were excited by the growth of our organic search traffic, which had a 140.50 percent gain year over year (95,654 vs. 39,773) due to our search engine optimization efforts. Every result we get from an organic search is “free” traffic to TCM— not earned without cost of labor, but without paid advertising. // TRA V EL COSTA M ESA //
SEARCH ENGINE OPTIMIZATION
WHAT IS SEO?
Search engine optimization (SEO) is the process of
improving the quality and quantity of website traffic
to a website or a web page from search engines.
SEO targets unpaid traffic rather than direct traffic
or paid traffic.
Source: Wikipedia
Another great story from our owned media channels
was email marketing. Over the past year, we have
worked hard on the health of our email list by
archiving old email addresses and making sure the
users we had were truly interested and engaged in
TCM’s monthly email newsletter.
From a Mailchimp “Email Marketing Benchmark
and Statistics by Industry” study in October 2019,
emails in the travel sector had an average open
rate of 20.44 percent. TCM’s average email open
rate for the last half of 2021 was 30.58 percent,
over 10 percent higher than the industry average.
Our holiday 2021 email had our best open rate
ever at 37.39 percent. Our June 2021 email, which
featured a “California Reopens” message, had our
best click-to-open rate (CTOR) with 9.5 percent—
TCM’s average CTOR was 4.67 percent last year.
108
“CREATE YOUR ESCAPE… CLOSE TO HOME” CAMPAIGN
In March and April of 2021, we launched our first big promotional campaign of the year, returning us closer to the promotion levels we had been performing at prior to the pandemic. We used a message we felt was appropriate for the time and that performed well before: “Create your Escape… Close to Home.” Our messaging included a $100 gift card to South Coast Plaza that was being offered by five of our hotel partners, with the other remaining six asking to just promote their top offers from their site. We had 3,600 page visits for the campaign.
“FIND YOUR HAPPY” CAMPAIGN
To continue our strategy of messaging
with a lean towards hope, fun, and
happiness, we launched the “Find your
Happy” campaign in summer 2021, that
included six videos with social campaign
support. Host Nathan Nguyen (@
noonatnathaniels) took viewers to six
great spots in the city offering happy
hours, including SOCIAL, Country
Club, and Playa Mesa. We had created
the videos pre-pandemic but had to
postpone the launch. We consider this
great “evergreen” content that we’ll use
again in the future— currently they are
on travelcostamesa.com, as well as our
Facebook page and Vimeo channel.
“SOCAL… SO COOL” CAMPAIGN
We launched the “SoCal…So COOL” summer campaign in June for local visitors who would be interested in a “staycation” or a quick trip away. Pairing it with the “Beat the Heat” Arizona campaign, we used a double-meaning messaging— Costa Mesa being the coolest city in Orange County and also cooler with perfect beach weather compared to cities in hotter climates.
“SoCal…So COOL” was our most successful campaign of the year, garnering 800 hotel leads and approximately 52,000 site visits. We ran ads on Uber and Lyft cars in the Los Angeles area and received over 3 million impressions. Per a Nielsen out-of-home advertising study, 64 percent of people who saw messaging on a wrapped vehicle remembered it within 30 days of seeing it.
2 0 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
MARKETING
COSTA MESA
109
“BEAT THE HEAT” CAMPAIGN
“Beat the Heat” was a smaller
social and blog campaign in
summer 2021 that we ran in
Arizona only. We worked with
Arizona Foothills Magazine to
create online and social content
featuring Costa Mesa as a “Get
Cool” destination for those in the
oppressive heat in Arizona.
We focused mostly on the major
metropolitan areas of Phoenix
and Tucson, and also placed a
billboard on the I-10 westbound at
Quartzite, Arizona.
KNIFE PLEAT CAMPAIGN
In October 2021, we got the exciting
news that Knife Pleat in South Coast
Plaza received its first Michelin star. To
celebrate, we changed our website’s
home page leaderboard and promoted
the accolade in our email and social
media accounts. This is an exciting
feather in the Costa Mesa cap, as we now
have three Michelin-star restaurants, and
the only three Michelin-star restaurants
in all of Orange County.
HOLIDAY CAMPAIGN
We created a holiday campaign
that used Visit California’s “What
If” messaging to utilize additional
state funding. The campaign ran
from mid-November 2021 to
January 2022 and was our fourth
most visited page for the year.
We featured events happening
in the city in public relations and
social messaging, along with
display ads to the campaign page.
It brought just over 700 leads and
approximately 75,000 site visits.
// TRA V EL COSTA M ESA //
WHAT ARE OWNED MEDIA CHANNELS?
Owned media is any kind of organic content
delivery channel that you have control over.
This might include your blog, website, YouTube
channel, or Facebook page. It does require an
investment in time and resources to create, but
you don’t directly pay for reach.
Source: theagencyguide.com
USAGE
We saw an interesting lift in desktop users in 2021,
a 36.61 percent increase (64,798 vs. 47,433) from
the previous year. We could attribute this to more
remote workers or visitors continuing to spend
more time at home. However, the primary traffic
source to travelcostamesa.com is from mobile
devices. In 2021, 76.09 percent of our traffic was
from mobile devices, 20.68 percent was from
desktop, and 3.23 percent was from tablets.
Desktop vs Mobile vs Tablet Share Worldwide
desktop increase
from 2020
to 2021 mobile devices
36.61%
76.09%
20.68%3.23%
desktop
tablets
2 1
110
VISIT CALIFORNIA CO-OP CAMPAIGNS
In a unique opportunity from Visit California, destination marketing organizations (DMOs) in the state were invited to participate in a co-op whereby those DMOs would get a discount on advertising spend with five vendor partners. TCM continued participation in this initiative, which was extended for 2021, due to additional funds being allocated to Visit California from the state.
To maximize use of the funding, we combined our promotional campaigns with the Visit California “What If” messaging so we could have a direct financial return on these investments. In 2021, we completed programs that expect a financial return from Visit California of just over $50,000.
CONTENT UPDATES
We continued to keep our COVID-19 coverage current as the pandemic continued, including having a button on the home page directing people to our latest COVID-19 information. We also kept a business updates page and a hotel safety and cleanliness page.
Visit California launched a “California is Back – All Dreams Welcome” campaign, and TCM participated in the campaign in 2021. We posted social, blog, and site content in support of the messaging.
We created a new “Outdoor Patio” dining page on our site, listing restaurants that offered outdoor dining and their hours. TCM also joined the Visit California Travel Story Network, where social stories created by DMO partners could be featured on the Visit California home page and would also help in the Visit California/Google stories search campaign. Our LGBT pride month story was featured on the Visit California home page. 2 2 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
MARKETING
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111
TOP 10 WEBPAGES VISITED
1. Summer Hotel Deals
2. Hotel Specials
and Discounts
3. OC Fair
4. Holiday Hotel Deals
5. OC Swap Meet
6. What if Costa Mesa?
7. Homepage
8. OC Night Market
9. Eatcation® (main)
10. Spring Break Hotel Deals
WEBSITE
TRAFFIC
DRIVERS
29.93%
ORGANIC SEARCH
20.50%
DISPLAY ADS
15.47%
PAID SEARCH
14.50%
REFERRAL (most from
content marketing and
Facebook)
13.48%
DIRECT
MEETINGS CAMPAIGN BUILD
Due to the pandemic, meetings and events scheduled in Costa Mesa have taken a large downturn. TCM’s board of directors has told us that regaining meetings and event business in this city is a key priority going forward. TCM is creating a new marketing campaign from scratch to focus on a paid meetings/events strategy. This strategy includes:
1. The creation of a new meetings guide, which will be completed in spring 2022. The last one was created in 2011.
2. TCM has shot new content in April for the meetings video and guide.
A new meetings video was launched in summer 2021 and lives on the travelcostamesa.com meetings page, on our Vimeo channel, and on LinkedIn.
3. Paid placement on Cvent. From Cvent’s Facebook page: “The comprehensive Cvent event marketing and management platform offers software solutions to event organizers and marketers for online event registration, venue selection, event marketing and management, virtual and onsite solutions, and attendee engagement. Cvent’s suite of products automate and simplify the entire event management process and maximize the impact of in-person, virtual, and hybrid events. Hotels and venues use Cvent’s supplier and venue solutions to win more group and corporate travel business through Cvent’s sourcing platforms and to service their customers directly, efficiently, and profitably.”
4. Paid placement on the Helms & Briscoe site, a property management company where we can offer Costa Mesa’s meeting and event services.
VISIT CALIFORNIA POPPY AWARD
2022 FINALIST
There’s no question people continue to look
to destination marketing organizations to get
information about planning a trip and even while
visiting a city. While it has been a tough year, we
remain optimistic about our role in returning
travel and tourism to our city. In early 2022, TCM
was named a finalist for a Poppy Award from Visit
California for our influencer marketing campaign
in 2021. The competition for the awards were
fierce, and though TCM did not win, we were
recognized as a finalist in a year with a record
number of entries.
// TRA V EL COSTA M ESA //
56.86%
CALIFORNIA
4.00%
TEXAS
3.29%
NEW YORK
3.00%
FLORIDA
2.82%
ILLINOIS
TOP
WEBSITE
VISITORS
BY CITY
(OUTSIDE OF OC)
TOP
WEBSITE
VISITORS
BY STATE
27.10%
LOS ANGELES
3.67%
SAN DIEGO
2.11%
LONG BEACH
1.92%
RIVERSIDE
1.44%
SAN
FRANCISCO
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Travel Costa Mesa‘s director of
public relations and community
relations position was changed
in August 2021 to become the
director of media and community
relations. This shift represents TCM’s
understanding of the importance
of social media, and influencers
particularly, as part of our overall
marketing strategy. TCM hired
Bobby Navarro, who came to
the organization with a depth of
experience in marketing and social
media promotion, along with strong
influencer relationships.
In 2021, we decided to make a
move in media relations to align
our social messages, our influencer
partnerships, and our media
communication into a cohesive
earned media strategy. Our goal
was representing what was best
to showcase in Costa Mesa during
key periods while also taking
into consideration our target
markets. This type of strategy
creates multiple opportunities
of engagement for potential
consumers and increases the
likelihood that the consumer will
engage with the content, especially
when the content is being directed
to individuals in our target drive
markets of San Diego, Los Angeles,
and the Inland Empire.
As a consumer is exposed to Costa
Mesa more times in different ways
(i.e. on TCM social or blog, on their
favorite news sites, and/or through
their favorite influencer), they are
more likely to engage and consider
the city for their next leisure travel
experience.
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MEDIA &
COMMUNITY
RELATIONS
113
MEDIA PITCHES
The director of media and community relations repositioned the national and regional press releases to be more targeted and newsworthy in order to receive the most pick up from publications and the highest interest from readers. For example, in various public relations channels, we submitted specially curated press releases strictly about our food news or arts news to respective journalists or media who were focused on this type of content.
“Largest Art Organization in Southern California Brings Broadway Back in a Big Way” “35th Anniversary of Segerstrom Center of the Arts, Broadway Tours, and World Class Performances… ”
“The West Coast’s Largest Shopping Destination Redefines Retail” “Cha Cha Matcha at Tiffany’s Blue Box Café, Collage
Culinary Experience, and 55th Anniversary of South Coast Plaza”
MEDIA COVERAGE
From March 2021 to February 2022 seven press
releases were sent and the director of media and
community relations worked on two joint press
partnerships which resulted in:
OVER
361,637,200
CUMULATIVE IMPRESSIONS
31.5%
“Celebrate ‘National Plan for Vacation Day’ by Visiting One of the Hottest Lifestyle Destinations in California”
“Moulin, Tableau Kitchen and Bar, and Butcher’s Brasserie is Now Open… ” // TRA V EL COSTA M ESA //
INCREASE FROM FY2020-21
We continue to notice a majority of impressions are
coming from food and beverage coverage, and that
there is strength in positioning the city as having
“the most,” “the best,” or “the first” of something.
These commonly used tactics have garnished more
interest and allowed for increased visibility to the
city and to TCM partners.
Coverage has spanned publications and sites such
as Benzinga, MarketWatch, Yahoo Finance, Voice
of OC, Los Angeles Times, Daily Pilot, StreetInsider,
Michelin Guide, Visit California, and more.
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114
INFLUENCER PROGRAM
Influencer marketing is a fast-growing
tool for promotion. Research from
eMarketer shows that 72.5 percent
of marketers are expected to be
utilizing these means by the end of
2022.
With over 50 percent of consumers
stating that social media and word
of mouth are their preferred ways to
learn about new brands, the director
of media and community relations
made a huge pivot into increasing
the quantity and the quality of the
influencers that came to visit and
share on behalf of TCM.
From August to February 2021, TCM and our partner hotels have hosted nearly 50 influencers with followers ranging from 10,000 to 4.2 million. This is 10 times the number of influencers reported visiting in FY2020-21, and 100 times the biggest influencer reported visiting in that same year. The cumulative following of all the influencers that have been hosted from August 2021 to February 2022 has surpassed 22 million, which is a 21,900 percent increase from the cumulative following reported in FY2020-21.
Based on the formula provided by Intellifluence and pricing decks provided by these influencers, what we received in earned (non-paid) media through influencer marketing from August to February 2021 would have cost more than $220,000 (a conservative estimation). This doesn’t include the thousands of IG stories, hotel mentions, and influencers that posted multiple times on their profile which would all increase this estimation.
Influencer Value Formula
In a 2021 study done by Intellifluence, who manages 150,000 influencers around the world, influencers no longer get paid one to two cents per follower but are typically being compensated more after reaching specific thresholds.
>20K = AVERAGE $272 PER POST
>60K = AVERAGE $745 PER POST
>90K = AVERAGE $1,200 PER POST
~150K = $2,100 PER POST*
~300K = $5,000 PER POST*
~500K = $7,000 PER POST*
1,000,000+ = $10,000+ PER POST
TCM has also begun working
with established and trending
brands (and their influencer
strategy) in order to create
unique experiences that receive
more influencer attention, most
recently with Collage Culinary
Experience and Loungefly.
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MEDIA &
COMMUNITY
RELATIONS
115
The director of media and community relations has found that creating a thematic itinerary around events in the city has resonated with influencers and motivates them to support Costa Mesa without monetary compensation. We have seen that with our dining itinerary in October with Collage Culinary Experience, our holiday itinerary in December, and our Valentine’s Day itinerary in February with Loungefly.
COMMUNITY RELATIONS
For FY2021-22, TCM begun a
promotional content program in
order to support underrepresented
groups while also promoting various
neighborhoods and businesses in Costa
Mesa that support, are owned by, or
resonate with these groups.
In February 2021, we honored Black
History Month by sharing the journey
of a black content creator and her
adventures in Costa Mesa. We were
also able to promote a black-owned
business as well as a black artist that
was coming to perform in Costa Mesa.
The entire program received over
34 million impressions and drove
diversity in our social platforms while
also letting us build relationships with
new businesses. We plan to continue
this initiative in 2022 with Asian
Pacific American Heritage Month in
May, LGBTQ+ Pride Month in June,
and Hispanic Heritage Month from
September 15 to October 15.
Additionally, we are working with
nonprofit organizations based in the
city and/or supporting Costa Mesa
with press release inclusions and social
media support to be able to maximize
the impact we can make on and for
these organizations, including Share
Our Selves and Project Hope Alliance.
// TRA V EL COSTA M ESA //
MEDIA VISITS
TCM receives countless requests from media
and influencers to be hosted, and we choose the
writers with the most potential for coverage or
offer the best chance of greatest exposure. Through
the program TravMedia and our partners at Visit
California we have also been fortunate to be
able to host some talented writers and build new
relationships with key media.
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116
RAMPING UP
AS THE NEW fiscal year began, hope was abundant that COVID-19 would be in the rear- view mirror— but that was not the case. Booked groups (defined as 10 or more room nights per day) were being pushed and new group opportunities were far and few between. The size of groups was smaller, and the booking window shrunk to a few months or even weeks.
Weekend business needs became an everyday need. This was the new norm.
But as 2021 progressed, it was no longer the competitive landscape it has always been.
Groups were collaborating and working together instead of against each other. Next came the emergence of the West Coast DMO Alliance, a group of destination marketing organizations coming together to discuss best practices, trends, and ways to work with each other through the pandemic and beyond. At inception, 10 members joined and currently there are 20 with a continual wait list.
Industry experts such as Michael Dominguez, president and CEO of Associated Luxury Hotels International, projects the end of surges in 2022— and if one does pop up, he believes that the tools, organization, and the unity developed over the last 20 months will help to avoid the deficits events and hotels have experienced since 2019. International events, he said, may take some time to come back as discrepancies between how individual countries are responding to each surge make it hard to gauge the return of events abroad.
Dominguez highlights three major predictions for events in 2022: the last half should see a significant change, we will learn how to deliver a good hybrid experience, and the deconstructing of meetings. As the year progresses, Dominguez believes many new, more focused meetings will take place, and he shares that now is the time to focus on diverse ways to deliver a meeting space.
FORGE AHEAD
With the completion of a variety of sales initiatives that include meetings collateral— a COVID guide, a video for meeting planners, and group incentives—TCM has hit the ground running. Since October 2021, the destination sales executive has attended seven industry events and three more are scheduled by fiscal year end. This includes aligning with travel/ meeting-oriented associations and groups, persistently reaching out to the organization’s growing database, and uncovering new contacts for potential business. TCM’s focus is on small to mid-size group business (10 to 300 room nights peak).
July 2021 through the end of February 2022, TCM generated over 200 leads representing over 80,000 room nights. TCM has booked 25 meetings and events with 4,799 rooms contracted at our partnering hotels. More opportunities are given to our hotels as 2 8 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
GROUP SALES
117
planners may not be familiar with all properties and affords the end user the opportunity for multiple options within the city. The role of the destination sales executive is greater than that of generating room nights. Generated hotel room nights not only bring in revenue to our hotel partners, but they also bring ancillary revenue to other segments including restaurants, shopping, transportation, attractions and so much more. Every booked lead in Costa Mesa is an opportunity for businesses to benefit from it.
BY THE NUMBERS
TCM Sales Activity 2021-2022
Room Nights
Booked
ENDING FEBRUARY 2022
Lead Room Nights
In-Person
Site Visits
Webinars
Leads
Generated
Solicitations
OF THE 207 LEADS GENERATED
TRADESHOWS MEAN BUSINESS
TCM attended a variety of tradeshows to
attract new business, develop business
we have/had, to network, and to have the
ability to attend a variety of educational
opportunities. Since October 2021,
the destination sales executive along
with some of our hotel partners have
participated in seven tradeshows. As we
look to the end of the fiscal year, three
more scheduled. As TCM is a newer
destination marketing organization,
participating in the various tradeshows,
collectively selling our 11 partners, and
having exposure to meeting planners
to talk about Costa Mesa has been an
excellent experience.
// TRA V EL COSTA M ESA // 2 9
4 ,799
80 ,672
14 12
20 7
6,4 65
118
MEMBERSHIPS
California Society of Association Executives (CalSAE)
HelmsBriscoe
Meeting Planners International (MPI)
Orange County Sports Commission (OCSC)
Religious Conference Management Association (RCMA)
Society for Incentive Travel Excellence (SITE)
West Coast DMO Alliance
ORANGE COUNTY SPORTS COMMISSION (OCSC)
TCM, along with Visit Anaheim, Visit Huntington Beach,
Destination Irvine, Visit Laguna Beach, and other local attractions, will continue to work with the OCSC to promote Costa Mesa fields and facilities that encourage overnight group hotel room nights.
To date, the OCSC has produced 123 leads (Costa Mesa receiving 11) that produced 29 contracts for Orange County (as a whole) during the last year. Cancellations, smaller group sizes, and teams moving to neighboring states have been a challenge during the pandemic but like other segments, business is on the upswing.
TARGET MARKETS
TCM has primarily focused on marketing to the leisure transient guest for the past decade. The destination sales executive’s role, however, encompasses weekday and weekend group business. Trends in booking reveal that group opportunities are within a shorter booking window of time and are smaller in size. The following markets are the focus:
Associations (State/Regional/National) – Associations depend on annual meeting dues for their survival. Most by-laws encourage groups to meet on an annual basis. Without these meetings, associations will either not survive and/or they will need a new revenue stream to stay viable.
Corporate – With many companies still working from home, travel has not returned to the levels of 2019. However, more companies will be traveling in 2022 versus what actualized in 2021.
Sports – The sports market has become highly competitive in Orange County. We continue to work with the Orange County Sports Commission (OCSC) in addition to the local colleges and universities for out-of-the-area visiting teams.
SMERFE (Social, Military, Educational, Religious, Fraternal, and Ethnic) 3 0 // 2 0 2 1-2 0 2 2 AN N UAL REP O RT //
GROUP SALES
119
TRAVEL COSTA MESA LEADERSHIP
EXECUTIVE COMMITTEE
Ronnie Dalgado CHAIRPERSON, GENERAL MANAGER & VP of Operations, Holiday Inn Express & Suites Costa Mesa Hector Santa Cruz VICE PRESIDENT, GENERAL MANAGER, Costa Mesa Marriott Sue Cooke TREASURER, GENERAL MANAGER, Residence Inn by Marriott by Costa Mesa Paul Sanford SECRETARY, GENERAL MANAGER-ASSET MANAGER, Avenue of the Arts, A Tribute Portfolio Hotel
DIRECTORS
Susan O’Brien Moore GENERAL MANAGER, Ayres Hotel Costa Mesa Naj Ekhlas GENERAL MANAGER, Best Western Plus Newport Mesa Inn Howard Haberman GENERAL MANAGER, Crowne Plaza Costa Mesa Orange County Benito Benitez GENERAL MANAGER, Hilton Orange County/Costa Mesa Nimisha Solanki GENERAL MANAGER, OC Hotel Costa Mesa Albert Gosch GENERAL MANAGER, Ramada by Wyndham Costa Mesa/Newport Beach Mike Hall GENERAL MANAGER, The Westin South Coast Plaza, Costa Mesa John Stephens MAYOR, City of Costa Mesa Lori Ann Farrell Harrison CITY MANAGER, City of Costa Mesa
ADVISOR
Brian Chuan SENIOR DIRECTOR OF INTERNATIONAL & DOMESTIC MARKETS, South Coast Plaza
STAFF
Paulette Lombardi-Fries PRESIDENT
Kim Glen VICE PRESIDENT OF MARKETING Bobby Navarro DIRECTOR OF MEDIA AND COMMUNITY RELATIONS Debbie Megna DESTINATION SALES EXECUTIVE Jessica Placentia OPERATIONS MANAGER // TRA V EL COSTA M ESA //
3 1
120
TRA V ELCO STA M ESA .CO M
121
1 TRAVEL COSTA MESA
(A Non-Profit Organization)
FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
with
INDEPENDENT AUDITORS’ REPORT THEREON
ATTACHMENT 2
122
2 TRAVEL COSTA MESA
(A Non-Profit Organization)
TABLE OF CONTENTS
Independent Auditors' Report ................................................................................................. 1-2 Financial Statements:
Statements of Assets, Liabilities and Net Assets – Cash Basis ......................................... 3 Statements of Revenue and Expenses – Cash Basis .......................................................... 4 Notes to Financial Statements ....................................................................................... 5-13 123
3 INDEPENDENT AUDITORS’ REPORT
To the Board of Directors of
Travel Costa Mesa
We have audited the accompanying financial statements of Travel Costa Mesa (the “Organization”), which comprise the statements of assets, liabilities and net assets – cash basis as of June 30, 2021 and 2020, and the related statements of revenue and expenses – cash basis for the years then ended, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the cash basis of accounting described in Note 1; this includes determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Organization’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
p 949 431 0997 f 714 544 1034 2855 Michelle Dr Suite 350 Irvine CA 92606 kmjpartnerscpa.com p 818 999 5885 f 818 704 4668 20720 Ventura Blvd Suite 160 Woodland Hills CA 91364 124
4 Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and net assets of Travel Costa Mesa as of June 30, 2021 and 2020, and its revenue and expenses for the years then ended in accordance with the cash basis of accounting described in Note 1.
Basis of Accounting
We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
KMJ Corbin & Company LLP
Irvine, California
January 12, 2022
125
5 TRAVEL COSTA MESA
(A Non-Profit Organization)
STATEMENTS OF ASSETS, LIABILITIES AND NET ASSETS - CASH BASIS June 30,
2021 2020
ASSETS
Cash $ 2,219,851 $ 2,166,138
LIABILITIES
Current liabilities $ - $ -
Commitments and contingencies
NET ASSETS
Net assets without donor restrictions 2,219,851 2,166,138 Total liabilities and net assets $ 2,219,851 $ 2,166,138 See accompanying notes to financial statements
3 126
6 TRAVEL COSTA MESA
(A Non-Profit Organization)
STATEMENTS OF REVENUE AND EXPENSES - CASH BASIS
For The Years Ended June 30,
2021 2020
CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS
Revenues and other income:
Business improvement area assessment, net of
handling fees $ 962,654 $ 2,300,254
PPP grant income 88,050 -
Employee retention credit 42,000 -
California small nonprofit business grant 25,000 -
Interest income 2,330 2,657
Net revenues and other income 1,120,034 2,302,911
Expenses:
Hotel marketing funds 1,999 222,851
Marketing 323,350 839,435
Salaries and benefits 568,544 552,981
ART shuttle bus - 10,500
General and administrative 172,428 178,738
Total expenses 1,066,321 1,804,505
Increase in net assets without donor restrictions 53,713 498,406 Net assets without donor restrictions, beginning of year 2,166,138 1,667,732 Net assets without donor restrictions, end of year $ 2,219,851 $ 2,166,138 See accompanying notes to financial statements
4 127
7 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
Nature of Activities
Travel Costa Mesa (the “Organization”) is a California non-profit corporation formed in 1995 to market the City of Costa Mesa (the “City”) as a leisure travel and group business destination.
The vision of the Organization is to be a destination-marketing leader by supporting and selling the City’s distinct visitor brand experiences and advocating community tourism benefits. The Organization’s mission is to enhance and promote the City’s brand experience, thus increasing visitor spending for industry and community economic viability, sustainability and quality of life.
The Organization is funded by the eleven member hotels that comprise the Business Improvement Area (“BIA”) established by the City. The member hotels are Costa Mesa Marriott, Hilton Costa Mesa, Holiday Inn Express & Suites, Residence Inn by Marriott, Avenue of the Arts, A Tribute Portfolio Hotel, Ayres Hotel, The Westin South Coast Plaza, Ramada Inn and Suites Costa Mesa, Best Western Plus Newport Mesa Inn, Crowne Plaza, and OC Hotel Costa Mesa.
California state law provides that BIA assessments are to be used for the purposes specified in the authorizing resolution that established the assessment. The City’s resolution that established the BIA stated that its purpose is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel business within the City.
Basis of Presentation
The accompanying financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Consequently, revenues are recognized when received rather than when earned, and expenses are recognized when disbursed rather than when the obligation is incurred.
Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets and changes therein are classified and reported as follows:
Without donor restrictions – Net assets that are not subject to donor-imposed stipulations.
These assets are available to support the Organization’s general activities and operations at the discretion of the Board of Directors.
5 128
8 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
With donor restrictions - Net assets that are subject to donor-imposed restrictions. Some donor- imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that such resources be maintained in perpetuity. Generally, the donors of these assets permit the Organization to use all or part of the income earned on related investments for general or specific purposes.
As of and for the years ended June 30, 2021 and 2020, the Organization had no net assets with donor restrictions.
Revenues are reported as increases in net assets without donor restrictions unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restrictions. Gains and losses on investments and other assets are reported as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulations or by law.
Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section 501(c)(6) of the United States Internal Revenue Code and for California state income taxes under Section 23701(d) of the California Revenue and Taxation Code; therefore, the Organization has no provision for federal or state income taxes. During the years ended June 30, 2021 and 2020, the Organization had no unrelated business income.
The Organization annually evaluates tax positions as part of the preparation of its exempt tax return. This process includes an analysis of whether tax positions the Organization takes with regard to a particular item of income or deduction would meet the definition of an uncertain tax position under current accounting guidance. The Organization believes its tax positions are appropriate based on current facts and circumstances. The Organization’s policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. At June 30, 2021 and 2020, the Organization did not have any unrecognized tax benefits.
The Organization is no longer subject to U.S. Federal and state income tax examinations by tax authorities for tax years before 2017.
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9 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Use of Estimates
The preparation of financial statements in conformity with the cash basis of accounting requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Significant estimates made by the Organization’s management include, but are not limited to, the allocation of expenses to program expenses. Actual results could differ from those estimates.
Revenues and Other Income
The City levies a special assessment on the eleven-member hotels in the BIA based on the sale of overnight guest room stays. For the fiscal years ended June 30, 2021 and 2020, the levy was three percent (3%). The levy is transmitted by the hotels to the City and is remitted to the Organization, net of a one percent (1%) handling fee. The net levy is 99.9% of the net revenues of the Organization for fiscal years ended June 30, 2021 and 2020, respectively.
Other income amounts received in the year ended June 30, 2021 consist of a Paycheck Protection Program (“PPP”) grant (see Note 7) totaling $88,050, a California small nonprofit grant totaling $25,000, and an employee retention credit amount received from the Internal Revenue Service totaling $42,000. Such amounts are not conditional and have therefore been recorded as income.
Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a functional basis in Note 6. The Organization incurs expenses that directly relate to, and can be assigned to, a specific program or supporting activity. The Organization also conducts a number of activities which benefit both its program objectives as well as supporting services. These costs, which are not specifically attributable to a specific program or supporting activity, are allocated by management on a consistent basis among program and supporting services benefited, based on either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort incurred by personnel.
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10 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 provides additional guidance to clarify the principles for recognizing revenue. The standard and subsequent amendments are intended to develop a common revenue standard for removing inconsistencies and weaknesses, improve comparability, provide more useful information to users through improved disclosure requirements, and simplify the preparation of financial statements.
The Organization adopted this standard on July 1, 2020 with no impact on the Organization’s financial statements or related disclosures.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires organizations that lease assets (lessees) to recognize the assets and related liabilities for the rights and obligations created by the leases on the statement of financial position for leases with terms exceeding 12 months. ASU No. 2016-02 defines a lease as a contract or part of a contract that conveys the right to control the use of identified assets for a period of time in exchange for consideration. The lessee in a lease will be required to initially measure the right-of-use asset and the lease liability at the present value of the remaining lease payments, as well as capitalize initial direct costs as part of the right-of-use asset. ASU No. 2016-02, as amended, is effective for the Organization for fiscal year 2023. Early adoption is permitted. The Organization is currently evaluating the impact that the adoption of ASU No. 2016-02 will have on its financial statements.
NOTE 2 – LIQUIDITY AND AVAILABILITY
At June 30, 2021, the Organization has $2,219,851 of financial assets available within one year of the date of the statement of assets, liabilities and net assets – cash basis to meet cash needs for general expenditures, all of which consist of cash. None of the financial assets are subject to donor or other contractual restrictions that make them unavailable for general expenditures within one year of the statement of assets, liabilities and net assets – cash basis. The Organization has a goal to maintain financial assets, which consist of cash, on hand to meet twelve months of normal operating expenses. The Organization has a policy to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due.
Funding for the Organization is dependent on the hotel room nights booked in the City each year and the subsequent portion of the levy that is allocated through the City to the Organization.
Annual revenue fluctuates depending on annual visitors to the City. As a result, the Organization closely monitors the monthly projected and received revenue to determine if any change needs to be made to budgeted expenditures.
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11 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 2 – LIQUIDITY AND AVAILABILITY, continued
In December 2019, a novel strain of coronavirus disease (“COVID-19”) was first reported in Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization declared COVID-19 a global pandemic. The extent of COVID-19’s effect on the Organization’s operational and financial performance will depend on future developments, including the duration, spread and intensity of the pandemic, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. The Organization is currently analyzing the potential impacts to all of its business segments. At this time, it is not possible to determine the magnitude of the overall impact of COVID-19 on the Organization. However, it could have a material adverse effect on the Organization’s financial condition, liquidity and results of operations. In the short term, one of the impacts of the pandemic is that the Organization’s revenues have declined, but the Organization cannot predict whether this decline is temporary or not.
During the years ended June 30, 2021 and 2020, the Organization took certain cost cutting measures including suspending marketing efforts, reducing other expenses, and reducing payroll through pay cuts. The Organization believes these measures, along with its existing cash, will be sufficient to cover its cash flow requirements for at least the next twelve months from the date of issuance of these financial statements (see Note 3). However, there can be no assurance that the Organization will not use its existing capital resources sooner than currently expected.
NOTE 3 – CASH
Cash consists of demand deposits at the following institutions as of June 30:
2021 2020
Citizens Business Bank $ 639,346 $ 951,262
Pacific Premier Bank 1,580,505 1,214,876
$ 2,219,851 $ 2,166,138
The Organization maintains cash deposits at institutions which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At various times during 2021 and 2020, the Organization maintained balances in excess of FDIC limits. The Organization periodically reviews the quality of the financial institutions it has deposits with to minimize risk of loss. 9 132
12 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 4 – HOTEL MARKETING FUNDS EXPENSE
During portions of each of the fiscal years ended June 30, 2021 and 2020, the Organization allocated $200 per room to each BIA member hotel for hotel-specific marketing purposes. The allocation subsidizes hotel-specific advertising and marketing efforts that also include the Organization’s logo. Vendor invoices are either paid by the hotel and reimbursed by the Organization or paid directly by the Organization.
Samples of advertising and marketing material must be submitted showing the Organization’s logo for reimbursement. For advertising or marketing material where the Organization’s logo cannot be used, the Organization requests that the hotel partners use the following verbiage, “Hotel partner name is a proud partner of Travel Costa Mesa.” During the last quarter of the year ended June 30, 2020 the Organization suspended all hotel marketing funds in a cost saving effort as a result of COVID-19; such funds were reinstated as of June 17, 2021. Hotel marketing funds expense totaled $1,999 and $222,851 for fiscal years ended June 30, 2021 and 2020, respectively. The fiscal 2021 hotel marketing funds were paid from the Organization’s bank reserves, not from the operating bank account. If the hotels do not use all their allocated funds, the funds revert to the Organization.
NOTE 5 – MARKETING EXPENSE
The Organization incurs marketing expenses related to its mission of promoting the City as a tourist destination. For the fiscal years ended June 30, 2021 and 2020, marketing expenses totaled $323,350 and $839,435, respectively.
Marketing expenses include online marketing, video and photography production, community sponsorships, brochures, print advertising, various promotions, and tradeshow costs. 10 133
13 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 6 – STATEMENT OF FUNCTIONAL EXPENSES
The statements of functional expenses for the years ended June 30 are as follows:
2021 2020
Program
Activities
General and
Administrative Total Total
(Summarized)
Salaries and benefits $ 477,114 $ 91,430 $ 568,544 $ 552,981 Marketing 32,017 - 32,017 145,281
ART shuttle bus - - - 10,500
Hotel marketing funds 1,999 - 1,999 222,851
Online marketing 291,333 - 291,333 694,154
Office lease 70,025 13,825 83,850 70,981
Travel, meetings, conferences and mileage - 2,534 2,534 31,372 Accounting and fees - 12,030 12,030 11,658
Insurance - 20,314 20,314 15,027
Dues and subscriptions - 33,202 33,202 24,300
Office supplies - 942 942 5,997
Telephone and internet 13,873 5,154 19,027 14,902
Professional services - - - 1,879
Recruiting services - - - 1,580
Bank charges - 70 70 79
Filing fee and state assessment - 151 151 258
Parking fees - - - 183
Postage - 308 308 522
Total functional expenses $ 886,361 $ 179,960 $ 1,066,321 $ 1,804,505 NOTE 7 – PPP GRANT
On February 22, 2021, the Company entered into a promissory note agreement for $88,050 with Citizens Business Bank under the PPP, which is administered by the U.S. Small Business Administration (“SBA”) and established as part of the Coronavirus Aid, Relief, and Economic Security Act. This PPP note bore interest at 1.0% per annum and was scheduled to mature in February 2026 with the first six months of interest and principal payments deferred. The amount borrowed under the PPP note was eligible for forgiveness if the Company met certain criteria. At June 30, 2021, the Company believed it was probable that the PPP note would be forgiven, and accordingly, recorded the proceeds from the PPP as government grant revenue of $88,050. In August 2021, the Company received full forgiveness of the PPP note. 11 134
14 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 8 – COMMITMENTS AND CONTINGENCIES
Guarantees and Indemnities
The Organization has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions.
The Organization indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of California. In connection with its facility lease, the Organization has indemnified its lessor for certain claims arising from the use of the facilities. The duration of the guarantees and indemnities varies and is generally tied to the life of the agreement. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Organization could be obligated to make. Historically, the Organization has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying statements of assets, liabilities and net assets – cash basis.
Operating Leases
The Organization has a lease for office space through October 2024. The Organization also has a lease for a color copier through September 30, 2022. Total rent expense for fiscal years ended June 30, 2021 and 2020 totaled $83,850 and $70,981, respectively.
Future minimum lease obligations as of June 30, 2021 consist of the following:
Years Ending
June 30,
2022 $ 26,600
2023 40,200
2024 41,400
2025 14,200
$ 122,400
Litigation
In the ordinary course of business, the Organization may face various claims brought by third parties and they may, from time to time, make claims or take legal actions to assert their rights.
Any of these claims could subject the Organization to costly litigation and, while the Organization generally believes that it has adequate insurance to cover many different types of potential liabilities, its insurance carriers may deny coverage or its policy limits may be inadequate to fully satisfy any damage awards or settlements.
12 135
15 TRAVEL COSTA MESA
(A Non-Profit Organization)
NOTES TO FINANCIAL STATEMENTS
For The Years Ended June 30, 2021 and 2020
NOTE 8 – COMMITMENTS AND CONTINGENCIES, continued
If this were to happen, the payment of any such awards could have a material adverse effect on the Organization’s operations and financial position. Additionally, any such claims, whether or not successful, could damage the Organization’s reputation and business.
NOTE 9 – EMPLOYEE BENEFIT PLAN
The Organization sponsors a defined contribution salary deferral plan (the “Plan”) covering all employees. Beginning in April 2012, the Board of Directors agreed to Safe Harbor contributions of 3% of the eligible employee’s salary. During each of the fiscal years ended June 30, 2021 and 2020, Safe Harbor contributions totaled approximately $12,000, which are recorded in salaries and benefits in the accompanying statements of revenue and expenses – cash basis.
NOTE 10 – RISKS AND UNCERTAINTIES
Due to the nature of the Organization’s business, the Organization’s revenue is entirely dependent on the City and the member hotels. The City established the BIA and collects the BIA levy from the eleven hotels in Costa Mesa and the member hotels are voluntary participants (see Note 1). A cancellation of the BIA or withdrawal of the member hotels would adversely and severely impact the Organization’s financial position.
NOTE 11 – SUBSEQUENT EVENTS
Management has evaluated and determined that no other events have occurred through January 12, 2022, the date that the financial statements were issued, which would require inclusion or disclosure in its financial statements except as disclosed herein. 13 136
Resolution No. 2022-xx Page 1 of 10
RESOLUTION NO. 2022-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2022-23 FOR A BUSINESS IMPROVEMENT AREA COVERING
CERTAIN COSTA MESA HOTELS AND MOTELS AND SETTING THE TIME AND
PLACE FOR A PUBLIC HEARING ON THE PROPOSAL
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, in adopting the Parking and Business Improvement Area Law of 1989 (California Streets & Highways Code § § 36500 et seq.), the California Legislature authorized cities to levy assessments on businesses in order to promote economic revitalization and tourism, cr eate jobs, attract new businesses, and prevent erosion of business districts; and
WHEREAS, on July 5, 1995, by Ordinance No. 95 -9, the City Council adopted a business improvement area, commonly known as the Costa Mesa Tourism & Promotion Business Improvement Area (the “BIA”), the purpose of which is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel businesses within the City; and
WHEREAS, the eleven (11) hotels and motels listed in Exhibit A, attached hereto and incorporated herein, are currently subject to the assessment; and WHEREAS, the City Council appointed the general managers of the 11 hotels and motels subject to the assessment to serve as the advisory board as required by California Streets and Highways Code Section 36530; and
WHEREAS, said advisory board is known as Travel Costa Mesa (“TCM”); and WHEREAS, the City Council has voted to continue the special assessment for the BIA each year since its inception, and it has been levied upon the 11 hotel and motel businesses listed in Exhibit A; and
WHEREAS, in January 2000, the City Council approved an increase in the assessment, raising the assessment from one percent (1%) to two percent (2%) based on the sale of overnight room stays; and
WHEREAS, in November 2010, the City Council approved an increase in the ATTACHMENT 3
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Resolution No. 2022-xx Page 2 of 10
assessment, raising the assessment from two percent (2%) to three percent (3%) based on the sale of overnight room stays; and
WHEREAS, this Resolution of Intention will commence proceedings under the Parking and Business Improvement Area Law of 1989 to levy the annual assessment of the Costa Mesa Tourism & Promotion Business Improvement Area for the 2022-23 fiscal year; and
WHEREAS, the Agenda Report and its attachments for the May 17, 2022 City Council meeting filed with the City Clerk set forth a detailed description of the activities to be provided in the 2022-23 fiscal year, the boundaries of the Business Improvement Area, the benefit zone of the area, and the proposed assessments to be levied upon the businesses within the area for the coming fiscal year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows:
Section 1. Intention; Assessment. The City Council hereby declares its intention to levy and collect assessments in the Costa Mesa Tourism & Promotion Business Improvement Area for Fiscal Year 202 2-23 pursuant to California Streets & Highways Code §§ 36500 et seq. The boundaries of the Costa Mesa Tourism & Promotion Business Improvement Area are the 11 motels and hotels listed in Exhibit A. The proposed amount of the annual a ssessment is three percent (3%) based on th e sale of overnight room stays. New hotel and motel businesses commenced after the effective date of the resolution levying the assessment will be exempt from the levy of assessment, pursuant to California Streets & Highways Code § 36531.
Section 2 . Annual Report . An annual report on the Costa Mesa Tourism & Promotion Business Improvement Area has been prepared by TCM, acting as the advisory board, as required by California Streets & Highways Code §§ 36533 and 36534.
Said report is on file in the City Clerk’s Office.
Section 3 . Types of Activities t o Be Funded . The proposed type or types of activities to be funded by and through the annual levy of assessments on businesses within the Costa Mesa Tourism & Promotion Business Improvement Area are specified in the referenced annual report and Exhibit B, attached hereto and incorporated herein.
Section 4. Method and Basis of Levy. To allow each business owner to estimate 138
Resolution No. 2022-xx Page 3 of 10
the amount of the assessment to be levied against his or her business, t he proposed method and basis of levying the assessment is set forth in the TCM’s annual report relative to the Costa Mesa Tourism & Promotion Business Improvement Area.
Section 5. Time and Place of Public Hearing . The time and plac e of the public hearing on the levy of an annual assessment for Fiscal Year 2022-23 shall be 7:00 p.m. on June 21, 2022. At the public hearing set forth above, the testimony of all interested persons for or against the annual levy of the assessment for the Business Improvement Area, the extent of the area, and/or the furnishing of specific types of improvements or activities will be heard by the City Council.
Section 6 . Protests. Consistent with California Streets & Highways Code §§ 36524 and 36525, the following rules shall apply to all protests:
(a) A protest may be made orally or in wr iting by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made.
(b) Every written protest shall be filed with the City Clerk ’s Office, Costa Mesa City Hall, 77 Fair Drive, Room 101 , Costa Mesa, California 92626, at or before the time fixed for the public hearing as set forth above. (c) The City Council may waive any irregularity in the form or content of any written protest, and, at the public hearing, may correct minor defects in the proceedings.
(d) A written protest may be withdrawn in writing at any time before the conclusion of the public hearing.
(e) Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business , the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business.
A written protest which does not comply with this section shall not be counted in determining a majority protest.
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Resolution No. 2022-xx Page 4 of 10
(f) If written protest s are received from the owners of businesses in the proposed Business Improvement Area which will pay fifty percent (50%) or more of the assessments to be levied and protests are not withdrawn so as to reduce the protests to less than the fifty percent (50 %), no further proceedings on the proposal to continue to levy the Business Improvement Area assessment, as specified by this Resolution, shall be taken by the City Council for a period of one year from the date of the fi nding of a majority protest.
(g) If the majority protest is only against the furnishing of a specified type or types of impr ovement or activity within the Business Improvement A rea, those types of improvements or activities shall be eliminated.
Section 7. Publication. The City Clerk shall ca use this Resolution of Intention to be published once in a newspaper of general circulation in the City at least seven (7) days before the June 21, 2022 public hearing.
PASSED AND ADOPTED this 17th day of May, 2022.
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
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Resolution No. 2022-xx Page 5 of 10
THIS PAGE IS RESERVED FOR THE CITY CLERK’S OFFICE.
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 202 2-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 17th day of May, 2022, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of May, 2022.
___________________________
Brenda Green, City Clerk
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Resolution No. 2022-xx Page 6 of 10
EXHIBIT A
The Business Improvement Area (“BIA”) benefit zone encompasses the entire City of Costa Mesa boundaries. It is anticipated that the entire City, including businesses and residents, will benefit from increased revenues generated by the activities financed by the BIA assessment. There are no proposed changes in the boundaries of the BIA for Fiscal Year 2022-2023.
The following businesses will be included in the BIA that is establi shed pursuant to California Streets & Highways Code §§ 36500 et seq., the businesses commonly known as:
Avenue of the Arts, A Tribute Portfolio Hotel
Property Address: 3350 Avenue of the Arts, Costa Mesa
Business Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627
Property Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92627
Ayres Country Inn & Suites
Property Address: 325 Bristol Street, Costa Mesa
Business Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A
Costa Mesa, CA 92626
Property Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A
Costa Mesa, CA 92626
Best Western Plus Newport Mesa Inn
Property Address: 2642 Newport Boulevard, Costa Mesa
Business Owner: James Hsuen
Shang-Pu Lee
2642 Newport Boulevard,
Costa Mesa, CA 92627
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Resolution No. 2022-xx Page 7 of 10
Property Owner: James Hsuen
Shang-Pu Lee
2642 Newport Boulevard,
Costa Mesa, CA 92627
Crowne Plaza
Property Address: 3131 Bristol Street, Costa Mesa
Business Owner: Brighton Management
20342 SW Acacia St.
Newport Beach, CA 92660
Property Owner: Bright Bristol Street LLC
3131 Bristol Street
Costa Mesa, CA 92626
Hilton
Property Address: 3050 Bristol Street, Costa Mesa
Business Owner: Ashford TRS CM LLC
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254
Property Owner: Remington Lodging & Hospitality LP
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254
Holiday Inn Express Hotel & Suites
Property Address: 2070 Newport Boulevard, Costa Mesa
Business Owner: Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
Property Owner: Narendra B. Patel
2070 Newport Blvd.
Costa Mesa, CA 92667
143
Resolution No. 2022-xx Page 8 of 10
Costa Mesa Marriott
Property Address: 500 Anton Boulevard, Costa Mesa
Business Owner: Starwood Capital Group
591 West Putnam Avenue
Greenwich, CT 06830
Property Owner: HEI Hotels & Resorts
101 Merritt 7 Corporate Park, 1st Floor
Norwalk, CT 06851
OC Hotel Costa Mesa (Formerly BLVD Hotel)
Property Address: 2430 Newport Boulevard, Costa Mesa
Business Owner: Sai Hospitality Services, LLC
11556 Manchester Way
Porter Ranch, CA 91326
Property Owner: Sanjay Panchal
11556 Manchester Way
Porter Ranch, CA 91326
Ramada Inn & Suites Costa Mesa
Property Address: 1680 Superior Avenue, Costa Mesa
Business Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.
Costa Mesa, CA 92627
Property Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Ave.
Costa Mesa, CA 92627
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Resolution No. 2022-xx Page 9 of 10
Residence Inn by Marriott
Property Address: 881 Baker Street, Costa Mesa
Business Owner: Marriott International
10400 Fernwood Rd.
Bethesda, MD 20817
Property Owner: BRE Select Hotels and Resorts
6201 15th Avenue
Brooklyn, NY 11219
The Westin South Coast Plaza Hotel
Property Address: 686 Anton Boulevard, Costa Mesa
Business Owner: Host Hotels & Resorts
6903 Rockledge Dr., Suite 1500
Bethesda, MD 20817
Property Owner: CJ Segerstrom & Sons
c/o South Coast Plaza
686 Anton Boulevard
Costa Mesa, CA 92626
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Resolution No. 2022-xx Page 10 of 10
EXHIBIT B
The BIA assessment will be used to fund Travel Costa Mesa (“TCM”) . TCM will fund activities to promote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City.
Revenue
A three percent (3%) levy will be assessed against each of the 11 hotels listed in Exhibit A, based on the net revenue from the sale of overnight room stays.
Business owners shall pay the assessment to the Costa Mesa Finance Department on a monthly basis. A penalty and interest shall be assessed on late payments.
Note: New hotel and motel businesses commenced after the effective date of this resolution will be exempt from the levy of assessment.
146
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-697 Meeting Date: 5/17/2022
TITLE:
DESIGNATION OF CITY NEGOTIATORS FOR THE COSTA MESA POLICE ASSOCIATION (CMPA)
MEET AND CONFER AND AUTHORIZATION TO PROCEED WITH THE FINANCIAL ANALYSIS OF
THE CURRENT MOU PER THE TRANSPARENCY IN LABOR NEGOTIATIONS COUNCIL POLICY DEPARTMENT: CITY MANAGER’S OFFICE- HUMAN RESOURCES DIVISION PRESENTED BY: KASAMA LEE, HUMAN RESOURCES MANAGER
CONTACT INFORMATION: KASAMA LEE, HUMAN RESOURCES MANAGER, (714) 754- 5169
RECOMMENDATION:
Staff recommends the City Council:
1. Designate Liebert Cassidy Whitmore Partner Peter Brown as the Principal Negotiator and City Manager Lori Ann Farrell Harrison, Assistant City Manager Susan Price, Assistant to the City Manager Alma Reyes, Human Resources Manager Kasama Lee, and Finance Director Carol Molina as the City’s representatives in negotiations with the CMPA.
2. Authorize staff to have the independent fiscal analysis of the current CMPA 2018-2024 Memorandum of Understanding (MOU) completed per the requirements of the Transparency In Labor Negotiations Council Policy (hereinafter policy).
BACKGROUND:
Per the policy, the City Council must designate a Principal Negotiator who “shallhave extensive prior experience in negotiating public employee collective bargaining agreements and shall be free from any actual or potential conflict of interest with respect to the bargaining unit.” The City Council may also designate one more employees to be present during negotiations and to assist the Principal Negotiator as the City Council and/or Principal Negotiator deem appropriate.
ANALYSIS:
Staff recommends that the City Council designate Liebert Cassidy Whitmore Partner Peter Brown as the Principal Negotiator and City Manager Lori Ann Farrell Harrison, Assistant City Manager Susan Price, Assistant to the City Manager Alma Reyes, Human Resources Manager Kasama Lee, Human Resources Manager and Finance Director Carol Molina as the City’srepresentatives in negotiations with the CMPA. Furthermore, Section 2, Economic Analysis of the policy requires that the Finance Director prepare an economic analysis that must be verified by an independent auditor. Staff recommends that the City Council authorize staff to have the independent fiscal analysis of the
147
File #: 22-697 Meeting Date: 5/17/2022
current CMPA MOU completed per the requirements of the policy.
In April 2022, the CMPA contacted the City requesting to exercise its option to reopen negotiations as described in the July 2020 side letter.
ALTERNATIVES:
An alternative is to propose other designated representative(s).
FISCAL REVIEW:
The funds are budgeted in the General Fund in the Human Resources Division budget for outside legal counsel for negotiations.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the report and approved it as to form.
CONCLUSION:
Staff recommends that the City Council:
1. Designate Liebert Cassidy Whitmore Partner Peter Brown as the Principal Negotiator and City Manager Lori Ann Farrell Harrison, Assistant City Manager Susan Price, Assistant to the City Manager Alma Reyes, Human Resources Manager Kasama Lee, and Finance Director Carol Molina as the City’s representatives in negotiation with CMPA.
2. Authorize staff to have the independent fiscal analysis of the current CMPA 2018-2024 Memorandum of Understanding (MOU) completed per the requirements of the Transparency In Labor Negotiations Council Policy.
148
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-642 Meeting Date: 5/17/2022
TITLE:
APPROVAL FOR THE PURCHASE OF SERVERS FOR LAND MANAGEMENT SYSTEM WITH DELL MARKETING, L.P.
DEPARTMENT: INFORMATION TECHNOLOGY
PRESENTED BY: STEVE ELY, DIRECTOR
CONTACT INFORMATION: STEVE ELY, DIRECTOR 714-754-4891
RECOMMENDATION:
Staff recommends the City Council:
1. Authorize the use of NASPO ValuePoint Master Price Agreement (State of California) No. 15- 70-34-003 with Dell Marketing, L.P. for the purchase of servers for the new Land Management System (LMS).
2. Approve and authorize the City Manager and City Clerk to execute the necessary documents to purchase servers for the new LMS System from Dell Marketing, L.P.
BACKGROUND:
In 2017, staff determined the City’sLand Management System, Permits Plus, no longer met the City’sneeds. In addition, there were no software upgrades available, and if the system were to fail, there would be no technical support provided. In November 2017, the City released a formal RFP solicitation for a complete LMS replacement. Six vendors submitted formal proposals; the evaluation panel reviewed the submissions, and ultimately recommended Tyler Technologies’Energov Solution to Council.
On October 1, 2019, Council authorized the City Manager and the City Clerk to execute an agreement with Tyler Technologies, Inc. to implement Energov Solution for the City.
The Energov Solution will provide a Citywide system that will serve all Departments that process applications, permits, licensing, and citations. Over the course of the project, the original specifications were determined not to be adequate, that the existing servers must be more robust to accommodate the growing needs of the project. Using best practices based on information from surrounding Cities, it was determined that six new servers are necessary to support the system.
ANALYSIS:
Six new servers are needed to run the new Land Management System due to increased resource requirements and the best practice of segregating the Production, Testing, and Development
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File #: 22-642 Meeting Date: 5/17/2022
requirements and the best practice of segregating the Production, Testing, and Development environments. The evaluation and analysis of retrofitting the existing servers to meet the need were not sustainable and too costly. In addition, the current technical support for the existing Dell hardware expires on October 24, 2022, and needs to be renewed or replaced. The new hardware will also be scaled to support the future Enterprise Resource Planning (ERP) System.
Staff solicited quotes for the additional servers from its existing vendor Dell Marketing L.P. based on its National Association of State Procurement Officials (NASPO) ValuePoint Cooperative Purchasing Program Master Agreement. Purchasing this equipment through the State of California’sParticipating Addendum meets all requirements set forth in the City of Costa Mesa’s Purchasing Policy as permitted by Section 2-165(b)(5) of the Costa Mesa Municipal Code, and all requirements in regards to regional, state, and national cooperative purchasing agreements.
ALTERNATIVES:
The City Council could choose not to approve the purchase of these servers, which would stall the progress of the LMS project and provide a more costly option of retrofitting the existing servers.
FISCAL REVIEW:
Funding for this purchase totaling $160,000 is included in the Information Technology Replacement Fund (Fund 603), under the FY2021-22 Land Management Systems Project (#200086).
LEGAL REVIEW:
The City Attorney’s Office has reviewed the documents and approved them as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports this City Council’s goals for 2022:
· Strengthen the Public’s Safety and Improve the Quality of Life · Achieve Long-Term Fiscal Sustainability
CONCLUSION:
The purchase of new servers will meet the needs of the LMS project and provide the necessary hardware support to ensure successful completion of the LMS implementation, as well as support the hardware needs for the future ERP system implementation.
Staff recommends the City Council:
1. Authorize the use of NASPO ValuePoint Master Price Agreement (State of California) No. 15- 70-34-003 with Dell Marketing, L.P. for the purchase of servers for the new Land Management System (LMS).
2. Approve and authorize the City Manager and City Clerk to execute the necessary documents to purchase servers for the new LMS System from Dell Marketing, L.P.
150
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Quote No. 3000119032869.4
Total $158,811.01
Customer # 1484189
Quoted On May. 05, 2022
Expires by Jun. 04, 2022
Sales Rep Jackson Bailey
Phone (800) 456-3355, 6179032
Email [email protected]
Billing To ACCOUNTS PAYABLE
CITY OF COSTA MESA
Contract Name Dell NASPO Computer
Equipment PA - California
PO BOX 1200
COSTA MESA, CA 92628-1200
Contract Code C000000181156
Customer Agreement # MNWNC-108/7157034003
Solution ID 16043766.4
Deal ID 23494912
Mes s age from your Sales Rep
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Shipping Group
Shipping To
ADAM SILVA
CITY OF COSTA MESA
77 FAIR DR
COSTA MESA, CA 92626-6546
(714) 754-5620
Shipping Method
Standard Delivery
Product Unit Price Quantity Subtotal
PowerEdge R650 - [amer_r650_14796] $24,753.48 6 $148,520.88
ATTACHMENT 1
151
Subtotal:
Shipping:
Environmental Fee:
Non-Taxable Amount:
Taxable Amount:
Es timated Tax:
Total:
$148,520.88
$0.00
$0.00
$15,745.26
$132,775.62
$10,290.13
$158,811.01
152
Shipping Group Details
Shipping To
ADAM SILVA
CITY OF COSTA MESA
77 FAIR DR
COSTA MESA, CA 92626-6546
(714) 754-5620
Shipping Method
Standard Delivery
PowerEdge R650 - [amer_r650_14796]
Estimated delivery if purchased today:
Jul. 07, 2022
Contract # C000000181156
Customer Agreement # MNWNC-108/7157034003
Quantity Subtotal
$24,753.48 6 $148,520.88
Des cription SKU Unit Price Quantity Subtotal
PowerEdge R650 Server 210-AYJZ - 6 -
No Backplane 379-BDSY - 6 -
No Backplane 379-BDSV - 6 -
No Rear Storage 379-BDTE - 6 -
Trusted Platform Module 2.0 V3 461-AAIG - 6 -
No HD, No Backplane, 2CPU 321-BGGC - 6 -
Intel Xeon Gold 5320 2.2G, 26C/52T, 11.2GT/s, 39M Cache, Turbo, HT (185W) DDR4-2933
Intel Xeon Gold 5320 2.2G, 26C/52T, 11.2GT/s, 39M Cache, Turbo, HT (185W) DDR4-2933
338-CBXZ
338-CBXZ
-
-
6 -
6 -
Additional Processor Selected 379-BDCO - 6 -
Heatsink for 2 CPU configuration (CPU more than 165W) 412-AAVM - 6 - Performance Optimized 370-AAIP - 6 -
3200MT/s RDIMMs 370-AEVR - 6 -
Diskless Configuration (No RAID, No Controller) 780-BCDH - 6 - No Controller 405-AACD - 6 -
No Hard Drive 400-ABHL - 6 -
Performance BIOS Settings 384-BBBL - 6 -
UEFI BIOS Boot Mode with GPT Partition 800-BBDM - 6 -
4 High Performance Fans for 2 CPU 750-ADIH - 6 -
Dual, Hot-plug, Redundant Power Supply (1+1), 1400W, Mixed Mode 450-AIQZ - 6 - Riser Config 0, 2CPU, Half Length, Low Profile, 3 x16 Slots, SW GPU Capable
PowerEdge R650 Motherboard with Broadcom 5720 Dual Port 1Gb On-Board LOM
330-BBRP
329-BFGW
-
-
6 -
6 -
OpenManage Enterprise Advanced 528-BIYY - 6 -
iDRAC9 Datacenter 15G 528-CRVW - 6 -
Mellanox ConnectX-5 Dual Port 10/25GbE SFP28, OCP NIC 3.0 540-BCOF - 6 - LCD Bezel 325-BECJ - 6 -
Luggage Tray x8 and x10 Chassis, R650 350-BCEI - 6 -
BOSS-S2 controller card + with 2 M.2 240GB (RAID 1) 403-BCMG - 6 - BOSS Cables and Bracket for R650 403-BCNP - 6 -
153
No Quick Sync 350-BBXM - 6 -
iDRAC,Factory Generated Password 379-BCSF - 6 -
iDRAC Group Manager, Disabled 379-BCQY - 6 -
VMware ESXi 6.7 U3 Embedded Image (License Not Included) 634-BRIO - 6 - No Media Required 605-BBFN - 6 -
OpenManage Integration for VMware vCenter - 1 host increment, 5 year license - Digitally Fulfilled 634-BJBC
-
6 -
Cable Management Arm 770-BDMT - 6 -
ReadyRails Sliding Rails Without Cable Management Arm or Strain Relief Bar 770-BECD - 6 -
No Systems Documentation, No OpenManage DVD Kit 631-AACK - 6 - PowerEdge R650 Shipping 340-CUQR - 6 -
R650 Ship 8x2.5 340-CUQO - 6 -
PowerEdge Non BIS Marking 389-DYHB - 6 -
PowerEdge R650 No CCC Marking, No CE Marking 389-DYIC - 6 - Custom Configuration 817-BBBB - 6 -
Dell Hardware Limited Warranty Plus Onsite Service 853-2137 - 6 - ProSupport Plus Mission Critical 4-Hour 7x24 Onsite Service with Emergency Dispatch 3 Years
ProSupport Plus Mission Critical 4-Hour 7x24 Onsite Service with Emergency Dispatch 2 Years Extended
ProSupport Plus Mission Critical 7x24 Technical Support and Assistance 5 Years
Thank you for choosing Dell ProSupport Plus. For tech support, visit //www.dell.com/contactdell
853-2179
853-2205
853-2206
951-2015
-
-
-
-
6 -
6 -
6 -
6 -
Dell Limited Hardware Warranty Plus Service, Extended Year(s) 975-3462 - 6 - On-Site Installation Declined 900-9997 - 6 -
64GB RDIMM, 3200MT/s, Dual Rank 370-AEVP - 144 -
Power Cord - C13, 3M, 125V, 15A (North America, Guam, North Marianas, Philippines, Samoa, Vietnam) 450-AALV - 12 -
Broadcom 5719 Quad Port 1GbE BASE-T Adapter, PCIe Low Profile 540-BBDF - 12 - QLogic FastLinQ 41262 Dual Port 10/25GbE SFP28 Adapter, PCIe Low Profile 540-BBZJ - 6 -
Subtotal:
Shipping:
Environmental Fee:
Es timated Tax:
Total:
$148,520.88
$0.00
$0.00
$10,290.13
$158,811.01
154
Important Notes
Terms of Sale
This Quote will, if Customer issues a purchase order for the quoted items that is accepted by Supplier, constitute a contract between the entity issuing this Quote (“Supplier”) and the entity to whom this Quote was issued (“Customer”). Unless otherwise stated herein, pricing is valid for thirty days from the date of this Quote. All product, pricing and other information is based on the latest information available and is subject to change. Supplier reserves the right to cancel this Quote and Customer purchase orders arising from pricing errors. Taxes and/or freight charges listed on this Quote are only estimates. The final amounts shall be stated on the relevant invoice. Additional freight charges will be applied if Customer requests expedited shipping. Please indicate any tax exemption status on your purchase order and send your tax exemption certificate to [email protected] or [email protected], as applicable.
Governing Terms : This Quote is subject to: (a) a separate written agreement between Customer or Customer’s affiliate and Supplier or a Supplier´s affiliate to the extent that it expressly applies to the products and/or services in this Quote or, to the extent there is no such agreement, to the applicable set of Dell’s Terms of Sale (available at www.dell.com/terms or www.dell.com/oemterms), or for cloud/as-a- Service offerings, the applicable cloud terms of service (identified on the Offer Specific Terms referenced below); and (b) the terms referenced herein (collectively, the “Governing Terms”). Different Governing Terms may apply to different products and services on this Quote. The Governing Terms apply to the exclusion of all terms and conditions incorporated in or referred to in any documentation submitted by Customer to Supplier.
Supplier Software Licens es and Services Des criptions: Customer’s use of any Supplier software is subject to the license terms accompanying the software, or in the absence of accompanying terms, the applicable terms posted on www.Dell.com/eula. Descriptions and terms for Supplier-branded standard services are stated at www.dell.com/servicecontracts/global or for certain infrastructure products at www.dellemc.com/en-us/customer-services/product-warranty-and-service-descriptions.htm.
Offer-Specific, Third Party and Program Specific Terms: Customer’s use of third-party software is subject to the license terms that accompany the software. Certain Supplier-branded and third-party products and services listed on this Quote are subject to additional, specific terms stated on www.dell.com/offeringspecificterms (“Offer Specific Terms”).
In cas e of Res ale only: Should Customer procure any products or services for resale, whether on standalone basis or as part of a solution, Customer shall include the applicable software license terms, services terms, and/or offer-specific terms in a written agreement with the end- user and provide written evidence of doing so upon receipt of request from Supplier.
In cas e of Financing only: If Customer intends to enter into a financing arrangement (“Financing Agreement”) for the products and/or services on this Quote with Dell Financial Services LLC or other funding source pre-approved by Supplier (“FS”), Customer may issue its purchase order to Supplier or to FS. If issued to FS, Supplier will fulfill and invoice FS upon confirmation that: (a) FS intends to enter into a Financing Agreement with Customer for this order; and (b) FS agrees to procure these items from Supplier. Notwithstanding the Financing Agreement, Customer’s use (and Customer’s resale of and the end-user’s use) of these items in the order is subject to the applicable governing agreement between Customer and Supplier, except that title shall transfer from Supplier to FS instead of to Customer. If FS notifies Supplier after shipment that Customer is no longer pursuing a Financing Agreement for these items, or if Customer fails to enter into such Financing Agreement within 120 days after shipment by Supplier, Customer shall promptly pay the Supplier invoice amounts directly to Supplier.
Customer represents that this transaction does not involve: (a) use of U.S. Government funds; (b) use by or resale to the U.S. Government; or (c) maintenance and support of the product(s) listed in this document within classified spaces. Customer further represents that this transaction does not require Supplier’s compliance with any statute, regulation or information technology standard applicable to a U.S.
Government procurement.
For certain products shipped to end users in California, a State Environmental Fee will be applied to Customer’s invoice. Supplier encourages customers to dispose of electronic equipment properly.
Electronically linked terms and descriptions are available in hard copy upon request. ^Dell Bus ines s Credit (DBC): Offered to business customers by WebBank, Member FDIC, who determines qualifications for and terms of credit. Taxes, shipping and other charges are extra and vary. Minimum monthly payments are the greater of $15 or 3% of the new balance shown on the monthly billing statement. Dell and the Dell logo are trademarks of Dell Inc.
155
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-680 Meeting Date: 5/17/2022
TITLE:
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-23 FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 DEPARTMENT: PUBLIC SERVICES DEPARTMENT/ENGINEERING DIVISION PRESENTED BY: RAJA SETHURAMAN, PUBLIC SERVICES DIRECTOR CONTACT INFORMATION: SEUNG YANG, P.E., CITY ENGINEER (714) 754-5633 RECOMMENDATION:
Staff recommends the City Council adopt Resolution No. 2022-xx, approving Sunflower Avenue Pavement Rehabilitation Project for funding with Road Maintenance and Rehabilitation Account (RMRA) revenues for Fiscal Year 2022-23.
BACKGROUND:
Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017), was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide. SB 1 increased several taxes and fees to raise billions of dollars annually in new transportation revenues. Moreover, SB 1 provides for adjustments for inflation every year so that the purchasing power of the revenues does not diminish as it has historically.
SB 1 prioritized this funding towards critical maintenance, rehabilitation, and safety improvements on state highways, local streets and roads, and bridges, and to improve the state’s trade corridors, transit, and active transportation facilities.
As part of SB 1’svarious accountability and transparency measures, and according to the California Transportation Commission’s (CTC) Reporting Guidelines for Local Streets and Roads Funding Program, the City is required to submit annually a proposed project list to the CTC by July 1st of each year and subsequently provide year end updates on the progress and expenditures of previously proposed projects by October 1st of each year.
ANALYSIS:
It is estimated the City will receive $2,570,782 from RMRA funding in FY 2022-23. To be eligible for funding, the City must submit a proposed project list to the CTC by July 1, 2022, along with an adopted resolution documenting the City Council’s approval of the project proposed to be implemented with specific RMRA funding allocations. The City is proposing that the FY 2022-23 RMRA funding be allocated towards construction of the following new street improvement project that
156
File #: 22-680 Meeting Date: 5/17/2022
would not have otherwise been funded:
· Sunflower Avenue Pavement Rehabilitation Project (Harbor Boulevard to Bear Street) The City will work on improving Sunflower Avenue between Harbor Boulevard and Bear Street. In addition to roadway rehabilitation, the project will enhance bicycle facilities and pedestrian access within Costa Mesa portion of the street. The proposed RMRA funding, programmed for the construction phase, will enable the transition of Sunflower Avenue to be a more complete street that promotes Active Transportation.
SB 1 requires that the project list include the following components: description and location of the proposed project, proposed schedule for its completion, and the estimated useful life of the improvement. The required project components are reflected in the proposed resolution.
This improvement project will benefit all the residents and businesses in the community, and will be included in the FY 2022-23 Capital Improvement Program (CIP) budget for City Council adoption.
ALTERNATIVES:
The City Council may elect not to adopt the proposed resolution. Staff does not recommend this action, as it would result in continued deterioration of Sunflower Avenue and potentially more expensive repairs if continually deferred, as well as deferral of the bicycle and pedestrian improvements.
FISCAL REVIEW:
The City anticipates receiving $2,570,782 in FY 2022-23 from RMRA funding based on the January 2022 State Department of Finance statewide RMRA revenue projections. The approved project will be included in the FY 2022-23 proposed CIP budget.
LEGAL REVIEW:
The City Attorney’sOffice has reviewed the report, prepared the resolution, and approves them as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council goal:
· Maintain and enhance the City’s infrastructure, facilities, equipment and technology.
CONCLUSION:
Staff recommends that the City Council adopt Resolution No. 2022-xx, approving Sunflower Avenue Pavement Rehabilitation Project for funding with Road Maintenance and Rehabilitation Account (RMRA) revenues for Fiscal Year 2022-23.
157
ATTACHMENT 1
Resolution No. 2022-xx Page 1 of 4
RESOLUTION NO. 2022-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING A LIST OF P ROJECTS FOR FISCAL Y EAR 2022-23 FUNDED BY SENATE BILL 1 (SB 1), THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES HEREBY FIND AND DECLAREAS FOLLOWS:
WHEREAS, the Governor signed Senate Bill 1 (SB 1) , the Road Repair and Accountability Act of 2017, into law in April 2017 in order to address the significant multi- modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City are aware of the projects proposed for funding in the community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimated $2,570,782 in RMRA funding in Fiscal Year 2022-23 from SB 1; and
WHEREAS, this is the sixth year in which the City of Costa Mesa is receiving SB 1 funding. It will enable the City to continue essential road maintenance and rehabilitation projects and increase access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate one local street and road and provide resources for similar projects in the future; and WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an overall good condition, with 158
ATTACHMENT 1
Resolution No. 2022-xx Page 2 of 4
some streets identified in poor condition, and this revenue will help the City increase the quality of such streets and assist in bringing citywide streets and roads into an excellent condition; and
WHEREAS, the SB 1 project list and overall investment in local streets and roads infrastructure, with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting -edge technology, materials and practices , will have significant positive co-benefits statewide.
NOW, THEREFORE , THE CITY COUNCIL OF THE CITY OF C OSTA MESA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The foregoing recitals are true and correct.
Section 2. The Fiscal Year 2022-23 list of project(s) planned to be funded with Road Maintenance and Rehabilitation Account revenues includes:
FY 2022-23 List of Project(s)
Project Title: Sunflower Avenue Improvement Project
(from Harbor Boulevard to Bear Street)
Project Description: This project will include rehabilitation and repair of the existing pavement and aims to enhance bicycle
facilities and pedestrian access. Striping, markings,
and bicycle facilities wi ll be consistent with the City’s Active Transportation Plan (ATP). The proposed
RMRA funding, programmed for the construction
phase, will enable the transition of Sunflower Avenue
to be a more complete street that promotes Active
Transportation. These RMRA funds will be used
towards rehabilitation of Sunflower Avenue, from
Harbor Boulevard to Bear Street.
Proposed Schedule for
Construction:
Estimated Useful Life of
Improvement:
Estimated Start Date: March 2023
Estimated Completion Date: August 2023
10 years
159
ATTACHMENT 1
Resolution No. 2022-xx Page 3 of 4
PASSED AND ADOPTED this 17th day of May, 2022.
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney 160
ATTACHMENT 1
Resolution No. 2022-xx Page 4 of 4
THIS PAGE IS RESERVED FOR CITY CLERK’S OFFICE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is t he original of Resolution No. 2022-__ and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 17th day of May, 2022, by the following roll call vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of May, 2022.
________________________
Brenda Green, City Clerk
161
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-684 Meeting Date: 5/17/2022
TITLE:
APPROVAL OF A STREET CLOSURE AND ALCOHOL SERVICE FOR THE 2022 COSTA MESA- NEWPORT HARBOR LIONS CLUB FISH FRY EVENT TO BE HELD AT LIONS PARK, 570 W. 18th STREET ON JUNE 3-5, 2022.
DEPARTMENT: PARKS AND COMMUNITY SERVICES DEPARTMENT
PRESENTED BY: JASON MINTER, PARKS AND COMMUNITY SERVICES
DIRECTOR
CONTACT INFORMATION: (714) 754 - 5065
RECOMMENDATION:
Staff recommends the City Council:
1. Adopt Resolution No. 2022-xx, approving the closure of a portion of Park Avenue between 18th Street and 19th Street for the Costa Mesa-Newport Harbor Lions Club 2022 Fish Fry event beginning June 3 and ending June 6, 2022 (Attachment 1).
2. Approve a request from the Costa Mesa-Newport Harbor Lions Club to sell wine and beer at Lions Park, 570 W. 18th Street, for the 2022 Fish Fry event to be held on June 3-5, 2022.
BACKGROUND:
For over 70 years, the Costa Mesa-Newport Harbor Lions Club has hosted the annual Fish Fry event in Costa Mesa. The event is rich in tradition and has become a community staple, until it was canceled for two years due to the COVID-19 pandemic. The event has changed throughout the years, but traditionally includes community booth spaces, a stage with live music entertainment, a beer and wine garden, carnival rides, and fried fish meals for purchase. In its best years, this event has been known to attract a crowd of approximately 10,000-15,000 visitors between its start on Friday evening through its closing on Sunday evening.
The Fish Fry event serves as a means for the local chapter of the Lions Club to provide scholarship funds for local schools, clubs, and organizations. The event was typically held at Lions Park before moving to Fairview Park in 2012 due to the Lions Park construction project.
In 2019 the City Council approved a License Agreement with the Costa Mesa-Newport Harbor Lions Club to relocate the Fish Fry back to Lions Park (Attachment 2). Traditionally the Fish Fry has been held on a Friday, Saturday, and Sunday around Memorial Day weekend, although it was held in late September in 2018 and 2019 for environmental reasons. The current license agreement terms and conditions include event management support provided by City staff from the Parks and Community
162
File #: 22-684 Meeting Date: 5/17/2022
conditions include event management support provided by City staff from the Parks and Community Services Department for the planning and hosting of the event, Public Services for maintenance and traffic control services during the event, and Police Department support throughout the duration of the event. Other forms of City support include event sponsorships as well as promotional and marketing materials leading up to the Fish Fry.
ANALYSIS:
The Costa Mesa-Newport Harbor Lions Club (Club) began hosting an annual Fish Fry event at Lions Park in 1946 as a fundraiser event to support community organizations, including local schools, charities, and non-profit organizations. The Club is a 501(c)(3) non-profit organization whose fundraising efforts provide support throughout the area and provide an entertainment filled weekend to the community.
The 2022 Fish Fry event will be relocated to its original place at Lions Park, per the 2019 License Agreement. The event will include a stage for musical performances, community and vendor booths, food booths (including the Club’sfamous fried fish), carnival rides and activities for all ages. Event setup will begin on Thursday, June 2, and be completed on Friday, June. 3. All event breakdown will be completed by the end of day on Monday, June 6. The hours for the 2022 Fish Fry are:
· Friday, June 3; 5:00 - 10:00 pm
· Saturday, June 4; 11:00 am - 10:00 pm
· Sunday, June 5; 11:00 am - 10:00 pm
Street Closure Impacts and Community Outreach Efforts
The Club is requesting the approval of an encroachment permit for the closure of a portion of Park Avenue between 18th Street and the Lions Park parking lot entrance off Park Avenue for the purpose of placing equipment, booths, and carnival rides for the duration of the Fish Fry event. To address and mitigate impacts attributed to the proposed closure, staff from the Parks and Community Services, Public Services, and Fire Departments will be working with the Club to develop a plan that ensures the following:
· A fire lane remains available at all times, including during setup, cleanup, and all event hours; · Proper barriers, signage, and delineation is in place for the safety of the participants, employees, volunteers, pedestrians, bicyclists, and vehicles; · Parking and traffic plan that will be reviewed by the Public Services Department, Transportation Division, prior to any event staging;
· Develop an event layout designating areas and activities; and · Promotion of active transportation, ridesharing, shuttles, and Uber/Lift to minimize parking impact on the neighboring residents and businesses.
The primary reasons for the encroachment permit request are due to the improvements that have taken place at Lions Park over the last few years. The layout of Lions Park has changed considerably with the construction of the Donald Dungan Library, the creation of a 1-acre designated event lawn,
163
File #: 22-684 Meeting Date: 5/17/2022
the relocation of the parking lot, and added landscaping and storm water management infrastructure.
The license agreement that was approved in 2019 included a list of the City’s duties and responsibilities (page 3, Attachment 2), which include the following:
· Waiver of the special events application fee ($425);
· Allow licensee to host an annual golf tournament at the Costa Mesa Country Club; with an estimated value of $10,000;
· Provide marketing and promotional support (waiver of recreation guide ad fee - $250); · City to sponsor the event with a contribution not to exceed $5,000; and · City to provide personnel for special event services, including event production and management. This includes staff from the Parks and Community Services Department, Public Safety Departments (Police and Fire and Rescue), and Public Services Department.
Staff will be requesting an event summary from the Club at the conclusion of the Fish Fry, including its financial success.
In addition, the Club is requesting that the City Council authorize the sale of wine and beer for the 2022 Fish Fry per Costa Mesa Municipal Code Title 11, Chapter 1, Section 11-3, Drinking in Public; “ no person shall drink or consume wine, beer, whiskey, brandy or any alcoholic liquors or beverage on public streets, including public alleys, sidewalks and parkways, nor in public restrooms, parking lots, vacant lots, parked in motor vehicles or public parks except in any area of a public park where drinking has been expressly approved by the City Council or its designee and is so posted.” In accordance with the municipal code, the City Council must approve a variance to allow the consumption of alcohol at this public park facility. The Club is responsible for contacting the Alcoholic Beverage Control office (ABC) to obtain a license to operate a wine and beer garden. ABC requires the Club to complete an application (Form 221) for a temporary license to sell and serve wine and beer at the event. The ABC requires the Club to follow all the rules and regulations outlined in Form 221 (Attachment 3). The operation of the wine and beer garden will be supervised by a designated adult member of the Club who either has had ABC training, training as a public safety officer or other applicable training.
ALTERNATIVES:
The City Council may elect to deny the requests. Staff does not recommend this action as the Lion’s Club Fish Fry is a long-standing Costa Mesa tradition that generates significant revenue for the Costa Mesa-Newport Harbor Lion’s Club and their year round philanthropic activities (i.e. scholarships, grants, etc).
164
File #: 22-684 Meeting Date: 5/17/2022
FISCAL REVIEW:
Costs incurred by the City include those mentioned above, as well as staffing from the following Departments: Parks and Community Services Department, Public Safety Departments (Police and Fire and Rescue), and Public Services Department.
LEGAL REVIEW:
The City Attorney’s Office has prepared Resolution 22-XX and reviewed and approved this report as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the Following City Council Goal:
· Strengthen the Public Safety and Improve the Quality of Life.
CONCLUSION:
It is recommended that the City Council approve Resolution 22-XX for the closure of a portion of Park Avenue between 18th Street and the parking lot entrance on Park Avenue and the request to sell wine and beer in support of the 2022 Costa Mesa-Newport Harbor Lions Club Fish Fry event. Staff will continue to work with representatives from the Costa Mesa-Newport Harbor Lions Club to help provide a seamless transition from the previous events at Fairview Park to the long-standing home of the Fish Fry at Lions Park.
165
ATTACHMENT 1
Resolution No. 2022-xx Page 1 of 4
RESOLUTION NO. 2022-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DESIGNATING A STREET CLOSURE FOR THE 2022 FISH FRY
THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES HEREBY FIND AND DECLARE AS FOLLOWS:
WHEREAS, because of the impact that special events have on City streets and traffic when a full or partial street closure is required for such special events, the City Council of the City of Costa Mesa finds that it is crucial that any such routes be thoroughly reviewed and analyzed to enable careful planning of such special events in order to minimize impacts to the general public where such street closures are permitted; and WHEREAS, in accordance with Section 9-208.9 of the Costa Mesa Municipal Code, Event Routes, after thorough review, analysis, and planning, the City Council does hereby establish the following routes and necessary full and partial street closures for the 2022 Costa Mesa-Newport Harbor Lions Club Fish Fry.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows:
Section 1. The 2022 Costa Mesa-Newport Harbor Lions Club Fish Fry event street closure is hereby established as shown by the map attached hereto as Exhibit “A” and incorporated herein.
Section 2. The streets listed in Exhibit “B,” attached hereto and incorporated herein, will be subject to full and partial street closures for the 2022 Costa Mesa-Newport Harbor Lions Club Fish Fry. Said closures will be as set forth in Exhibit “B”. Street Closure would begin at 9:00 am on June 2nd, and would reopen at 10:00 am on June 6th.
PASSED AND ADOPTED this 17th day of May, 2022.
_______________________________
John Stephens, Mayor
166
ATTACHMENT 1
Resolution No. 2022-xx Page 2 of 4
ATTEST: APPROVED AS TO FORM:
_______________________________ _______________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2022-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 17th day of May, 2022, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of May, 2022.
_______________________________
BRENDA GREEN, CITY CLERK (SEAL)
167
Fire Lane Fire Lane Fire LaneFire Lane Fire Lane Fire Lane Carnival Rides
Water Filled K Rails
Fish Pit (Kitchen)
E E
E Electrical Outlets
E Stage
Beer Garden
with Fencing
Around
Fish Pit Kitchen
40’ X 20’
Water K-Rails
Generators 290 KVA
Trash Area
Trash Area
Booths
Fire LaneFire Lane
Picnic Tables
Chairs
Bathrooms Wash Stations
Beer Wagon
Wash
Station
Bathrooms
Wash Stations
1 Refrigerator truck
2 Soft serve ice cream
3 Funnel cake
4 Twisted Brisket food truck
42” Delineator posts
Electrical Lines
1 4
3 2
FERRIS
WHEEL
50’ X 40’
ZIPPER
Ferris Wheel 50’ x 40’
Games 15’ x 15’
Zipper 60’ x 60’
Mardi Gras 72’ x 20’
Super Slide 100’ x 20’
Bear Affair 35’ x 35’
Airplane Ride 30’ x 30’
SUPER SLIDE MARDI GRAS
GAME GAME
EXHIBIT B
2022 PROPOSED FISH FRY LAYOUT
Resolution No. 2022-xx Page 3 of 4
168
ATTACHMENT 1
Resolution No. 2022-xx Page 4 of 4
EXHIBIT C
FISH FRY – AFFECTED STREETS ON ROUTE
STREET FROM TO CLOSURE
TYPE
SIDE OF
STREET
Park Avenue 18th Street
Approximately
500ft South of 19th
Street
Full Both
Note:
NB lane is reserved as a Fire lane.
SB lane adjacent to the Lions Park perimeter will be used for carnival games and mechanical rides.
169
1 License Agreement
Lions Club Fish Fry
CITY OF COSTA MESA
LICENSE AGREEMENT
WITH
COSTA MESA
-
NEWPORT HARBOR LIONS CLUB
THIS
LICENSE AGREEMENT
(“Agreement”)
is made and entered
into this
17th
day of
September
,
2019 (“Effective Date”), by and between the
CITY OF COSTA MESA
, a municipal corporation (
“City” or
“Licensor”
), an
d COSTA MESA
-
NEWPORT HARBOR LIONS CLUB , a California non
profit corporation
(“Licensee
”
).
WITNESSETH:
WHEREAS, City is the owner of the real property located at 570 W. 18th Street, Costa Mesa, California and all appurtenances thereon known as the Lions Park Campus
(“Property”)
;
and
WHEREAS, since 1946, Licensee
has held an annual Fish Fry event
(“Fish Fry”) in the City as a
fundraising event to support community organizations; and
WHEREAS, Licensee
uses
proceeds from the Fish Fry to support local schools, charities and non
-
profit organizations; and
WHEREAS, t he Fish Fry adds community value by creating an event that attracts thousands of attendees each year; and
WHEREAS, Licensee used City’s Lions Park to host the Fish Fry
until 2012
; and
WHEREAS, since 2012, Licensee has held the Fish Fry in Fairview Park; and
WHEREAS, the California Department of Fish and Wildlife has recommended that the Fish Fry be moved from Fairview Park; and
WHEREAS, City and Licensee now desire to have the Fish Fry held at the Property, commencing in 2020; and
WHEREAS, the Licensor and Licensee desire to execute this Agreement to set forth their rights, obligations, and liabilities relating to Licensee’s use of the Property; and
WHEREAS, the City and Licensee agree that this Agreement and the Fish Fry serve the public purpose and benefit
of
creating an event for the
community
, promoting
community
stewardship, and providing financial
support to schools, charities and non-profit organizations
located and active
within the
City of
Costa Mesa.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:
1.0. GRANT OF LICENSE
Commencing January 1, 2020, Licensor grants to Licensee a non-exclusive license (the “License”) to use a portion of the Property, as delineated in Exhibit “A,” attached hereto and incorporated herein (the “Licensed Area”) on the first weekend after Memorial Day each year (each a “License Period”).
Notwithstanding the foregoing, Licensee agrees that City may, in its disc retion, require the 2020 Fish Fry to ATTACHMENT 2
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Lions Club Fish Fry
be held in September 2020 due to construction at the Property.
2.0. LIMITED USE OF LICENSED AREA
Licensee’s use of the Property shall be limited to use of the Licensed Area for the exclusive purpose of hosting the Fish Fry event only. Such event may include carnival rides, bingo, a car show, vendors, entertainment, and parades. Licensee shall not use the Licensed Area for any other purpose or business without first obtaining Licensor’s written consent.
3.0. LICENSE FEE
In exchange for Licensee’s organization and hosting of the Fish Fry event, City grants the License to Licensee for no fee.
4.0. TERM AND TERMINATION
4.1. Term. The performance of this Agreement shall commence on January 1, 2020 and continue for a period of ten (10) years, ending on December 31, 2030, unless previously terminated as provided herein.
This Agreement shall automatically extend for one (1) additional ten (10) year period, unless either party, at least thirty (30) days prior to the expiration of the term, provides written notice to the other party indicating that it does not desire to extend the term.
4.2. Termination. Either party may terminate this Agreement by providing six (6) months’ written notice to the other party, either by certified mail or personal delivery.
5.0. LICENSEE’S DUTIES AND RESPONSIBILITIES
Licensee shall:
(a) Be responsible for all aspects of the Fish Fry event.
(b) Submit a Special Event Permit application for each year’s Fish Fry in accordance with Section 9-208 of the Costa Mesa Municipal Code.
(c) Provide to City, at no cost, the use of one (1) booth space at each year’s Fish Fry, to be used at the City’s discretion.
(d) Obtain at least sixty (60) days’ advance written approval from City of the layout for the Fish Fry, including but not limited to placement of booths, stage, dance floor, and carnival rides.
Licensee shall arrange the event in accordance with the approved layout. Licensee shall not change the layout without City’s written approval.
(e) Provide twenty-four (24) hour security services at the Licensed Area during each License Period. The number of security guards required to provide such services shall be as directed by City.
(f) Remove all personal property at the conclusion of each License Period.
(g) Leave the Licensed Area in the condition it was provided to Licensee at the inception of each License Period and each day thereof.
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(h) Enforce all City policies and rules pertaining to the general code of conduct while at the Property.
(i) Comply with, and require its guests and invitees to comply with, any and all City rules, regulations, and guidelines applicable to use of the Licensed Area.
(j) Promptly notify the City of needed repairs and/or dangerous conditions in the Licensed Area.
(k) Comply with all reasonable requests made by City.
6.0. CITY’S DUTIES AND RESPONSIBILITIES
City agrees to:
(a) Provide a staff person to oversee the Property during the License Periods.
(b) Provide staff members to assist with event production and management, as directed by the City’s Parks and Community Services Director.
(c) Provide marketing and promotional support in connection with each Fish Fry.
(d) Waive the Special Events Permit Fee for each Fish Fry.
(e) Waive the costs of providing special event Police Department services for each Fish Fry.
(f) Contribute to each year’s Fish Fry as an official Three Day Event Sponsor, or similar level of sponsor if the sponsor levels change, of the event, in an amount to be determined by the City.
Notwithstanding the foregoing, City’s annual sponsorship contribution shall not exceed Five Thousand Dollars ($5,000.00).
(g) Permit Licensee to use the refrigeration units located in City facilities adjacent to the Licensed Area, if such units are available and the adjacent City facilities are not being utilized for a separate event.
(h) Maintain the Licensed Area in a safe and clean condition.
(i) Perform any needed maintenance and repairs of the Licensed Area.
(j) Provide Licensee with notice as soon as practical of the unavailability of the Licensed Area, unless such unavailability is due to unanticipated emergency or causes beyond Licensor’s control. In the event the Licensed Area becomes unavailable, City will attempt to provide Licensee with an alternative location for the Fish Fry.
(k) Allow Licensee to host an annual golf tournament at one of the two public golf courses located at the Costa Mesa Country Club as a fundraiser to benefit the Fish Fry . The City will w aive green fees and other related fees for such tournament. The terms and conditions of Licensee’s use shall subject to written agreement of the parties.
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7.0. SIGNS
Licensee shall coordinate with City regarding the placement of advertisements relating to the Fish Fry on City property.
8.0. ENTRY BY CITY AND PUBLIC
The Fish Fry shall be open to the public at no charge. City and the general public shall have unrestricted access to the Licensed Area at all times during Licensee’s use.
9.0. ACCEPTANCE OF LICENSED AREA
Licensor makes no warranty or representation of any kind whatsoever regardin g the condition of the Licensed Area or its fitness for Licensee’s use, or any use. Licensee accepts and agrees to use the Licensed Area in its current “as-is” condition, without any obligation of Licensor to perform or pay for any improvement thereto.
10.0. ALTERATIONS, ADDITIONS, IMPROVEMENTS
Licensor reserves the right to alter, change, or work on the Licensed Area during the term of this Agreement.
Licensee shall not make any alterations, additions, or improvements to the Licensed Area or Property without prior written approval from Licensor.
11.0. UTILITIES AND TAXES
11.1. Utilities. Licensor shall provide power and water to the Property and pay all fees and charges in connection therewith.
11.2. Taxes. Licensee shall pay all taxes which may be levied or assessed as a result of this Agreement or Licensee’s use of the Property . Although it is not anticipated that this License will create a possessory interest in the Property, Licensee understands that a possessory interest may be created and vested in Licensee as a result of this Agreement and that such interest may be subject to property taxation . Licensee understands that Licensee may be subject to the payment of property taxes levied on such possessory interest.
If property taxes are levied due to a possessory interest, Licensee shall pay such taxes.
12.0. NO INTEREST IN PROPERTY
Licensee understands and agrees that this is a license agreement, not a lease agreement. No tenancy is established by this Agreement and Licensee shall have no interest in the Property as a result of this Agreement or Licensee’s use of the Licensed Area.
13.0. INSURANCE
13.1. Minimum Scope and Limits of Insurance. Licensee shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, rated “A,” Class X, or better in the mos t recent Best’s Key Insurance Rating Guide, and approved by City:
(a) Commercial general liability, including premises -operations, products/completed 173
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Lions Club Fish Fry
operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than Two Million Dollars ($2,000,000.00), combined single limits, per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit.
13.2. Endorsements. The commercial general liability insurance policy shall contain or be endorsed to contain the following provisions:
(a) Additional insureds: “The City of Costa Mesa and its elected and appointed boards, officers, officials, agents, employees, and volunteers are addition al insureds with respect to: liability arising out of activities performed by or on behalf of Costa Mesa- Newport Harbor Lions C lub pursuant to its contract with the City; products and completed operations of Costa Mesa-Newport Harbor Lions C lub; premises owned, occupied or used by Costa Mesa-Newport Harbor Lions Club.”
(b) Notice: “Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor the coverage or limits reduced, until thirty (30) days after written notice is given to City.”
(c) Other insurance: “Costa Mesa-Newport Harbor Lions Club’s insurance coverage shall be primary insurance as respects the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Costa Mesa shall be excess and not contributing with the insurance provided by this policy.”
(d) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Costa Mesa, its officers, officials, agents, employees, and volunteers.
(e) Licensee’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
13.3. Deductible or Self-Insured Retention. If any of such policies provide for a deductible or self- insured retention to provide such coverage, the amount of such deductible or self -insured retention shall be approved in advance by City. No policy of insurance issued as to which the City is an additional insured shall contain a provision which requires that no insured except the named insured can satisfy any such deductible or self-insured retention.
13.4. Certificates of Insurance. Licensee shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to using the Property . The certificates of insurance shall be attached hereto as Exhibi t “B” and incorporated herein by this reference.
14.0. INDEMNIFICATION AND RELEASE
14.1. Licensee agrees to defend, indemnify, and hold free and harmless City, its elected officials, officers, agents, volunteers and employees (“Indemnitees”), at Licensee’s sole expense, from and against any and all claims, demands, suits, actions or proceedings of any kind or nature arising out of this Agreement or the use or occupancy of the Property by, or the act s, errors or omissions of , Licensee, its officers, agents, members, volunteers, employees, occupan ts, invitees, visitors, guests, or other users , and/or authorized subcontractors. Notwithstanding the foregoing, Licensee shall not be responsible for claims, actions, 174
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complaints, or suits arising out of the sole active negligence or willful misconduct of the Indemnitees.
14.2. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by Licensee, its officers, agents, volunteers, employees, occupants, invitees, visitors, guests, or other users and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions, or misconduct of Licensee, its officers, agents, volunteers, employees, invitees, visitors, guests, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the Indemnitees based upon Licensee’s use or occupancy of the Property pursuant to this Agreement, whether or not Licensee, its officers, agents, volunteers, employees, invitees, visitors, guests, and/or authorized subcontractors are asserted to be liable.
14.3. Licensee hereby releases Indem nitees from any claims, demands, obligations, liabilities, damages, injuries, breaches of duty, causes of action, losses, costs and expenses, including, without limitation, attorneys’ fees, whether known or unknown, which arise out of or are incurred in connection with the use of the Property by Licensee, including, without limitation, any damage or injury to Licensee or to its property arising out of or in connection with this Agreement.
15.0. GENERAL PROVISIONS
15.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotia tions.
This Agreement may be modified only in writing and signed by the par ties in interest at the time of such modification. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto, including exhibits to this Agreement.
15.2. Notices. Except as set forth here in, a ny notices, documents, correspondence or other communications concerning this Agreement may be provided by personal delivery or mail and shall be addressed as set forth below. Such communication shall be deemed served or delivered: (a) at the time of delivery if such communication is sent by personal delivery, and (b) 48 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail. Either party may change its address by giving notice in writing to the other party.
IF TO LICENSEE:
IF TO CITY:
Costa Mesa-Newport Harbor Lions Club
P.O. Box 10628
Costa Mesa, CA 92627
Attn: President
City of Costa Mesa
Parks and Community Services Department
77 Fair Drive
Costa Mesa, CA 92626
Attn: Justin Martin
15.3. Assignment and Subletting. Licensee shall not assign this Agreement or license or sublet the Property or any part thereof without the prior written consent of City.
15.4. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties h ereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California.
15.5. Attorneys’ Fees. In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, 175
7 License Agreement
Lions Club Fish Fry
including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.
15.6. Public Records Act Disclosure. Licensee has been advised and is aware that this Agreement and all reports, documents, information and data furnished or prepared by Licensee pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code section 6250 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term i s defined in California Government Code section 6254.7, and of which Licensee informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.
15.7. Force Majeure. In the event of damage or destruction of the Property by any act of God, fire, national or local calamity, strike, labor dispute, civil disturbance, accident, epidemic, act or regulation of any public authority, interruption in or delay of transportation services, or any event of any other kind or character whatsoever, whether similar or dissimilar to the foregoing events, which shall render the practicable fulfillment by City of its obligations under this Agreement impossible, this Agreement shall be null and void and City shall be released of all responsibility hereunder and shall not be held responsible by Licensee for any resulting damage. In the event of any such occurrence or threat thereof, City shall have the right in its discretion to suspend or terminate any use by Licensee of the Property, to cause the Property to be vacated, or to take such action for such duration as City in its sole discretion deems necessary or appropriate.
15.8. No Third-Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Licensee and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement.
15.9. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.
15.10. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
15.11. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.
15.12. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized re presentative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall an y waiver constitute a continuing waiver.
15.13. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provi sion in any other 176
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circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaire d, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.
15.14. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.
15.15. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.
COSTA MESA-NEWPORT HARBOR LIONS CLUB
_______________________________________ Date: __________________________ Signature
_______________________________________
Name and Title
CITY OF COSTA MESA
_______________________________________ Date: __________________________ Katrina Foley
Mayor
ATTEST:
_______________________________________ Date: __________________________ Brenda Green
City Clerk
APPROVED AS TO FORM:
_______________________________________ Date: __________________________ Kimberly Hall Barlow
City Attorney
DEPARTMENTAL APPROVAL:
_______________________________________ Date: __________________________ Justin Martin
Acting Assistant City Manager
_______________________________________ Date: __________________________ Yvette Aguilar
Acting Parks and Community Services Director
178
EXHIBIT A
DESCRIPTION OF LICENSED AREA
179
180
EXHIBIT B
CERTIFICATES OF INSURANCE
181
182
Department of Alcoholic Beverage Control
DAILY LICENSE APPLICATION/AUTHORIZATION - Non Transferable State of California
Gavin Newsom, Governor
ABC-221 (rev. 07/21)
Instructions: Complete all items.
Submit to local ABC District Office with required fee (Cashier's Check or Money Order) payable to ABC. Once license is issued, fee cannot be refunded. For a listing of ABC District Offices please visit http://www.abc.ca.gov/distmap.html Pursuant to the authority granted by the organization named below, the undersigned hereby applies for the license(s) described below.
LICENSE NUMBER
GEO CODE
RECEIPT NUMBER
FEE
$
1. ORGANIZATION'S NAME
CONDITIONS REQUIRED
Yes
No
DIAGRAM REQUIRED
Yes
No
2. LICENSE TYPE (Check appropriate license type AND organization type) a.
Daily General ($75.00)
(Includes beer, wine and distilled spirits)
Political Party/Affiliate Supporting Candidate for
Public Office or Ballot Measure
Organization Formed for Specific Charitable or Civic Purpose Other:
Fraternal Organization in Existence Over Five Years
with Regular Membership
Religious Organization
Vessel per Section 24045.10 B&P ($50.00)
b.
Special Daily Beer & Wine ($50.00)
Charitable
Civic
Fraternal
Religious
Social
Cultural
Political Other:
Amateur Sports Organization
c.
Special Temporary License ($100.00)
(Different privileges depending on statute)
Television Station per Section 24045.2 or 24045.9 B&P
Nonprofit Corporation per Sections 24045.4 and 24045.6 B&P Person conducting Estate Wine Sale per Section 24045.8 B&P Women's Educational and Charitable Organization per
Section 24045.3 B&P
Other Special Temporary Licenses, per Section
License number
Amount $
3. EVENT TYPE
Dinner
Dance
Wedding
Lunch
Picnic
Barbeque
Festival
Sports Event
Concert
Birthday
Mixer
Carnival
Dinner Dance
Social Gathering
Other:
4. TOTAL # OF DAYS
5. ESTIMATED ATTENDANCE
6. HOURS OF ALCOHOLIC BEVERAGE SALES, SERVICE AND/OR CONSUMPTION From To
7. EVENT DATE(S)
8. EVENT IS OPEN TO THE PUBLIC
Yes No
9. EVENT LOCATION (Give facility name, if any, street number and name, and city)
10. LOCATION IS WITHIN THE CITY LIMITS
Yes No
11. TYPE OF ENTERTAINMENT
12. SECURITY GUARDS
Yes
No
If yes, how many?
13. AUTHORIZED REPRESENTATIVE'S NAME
14. REPRESENTATIVE'S TELEPHONE NUMBER
15. REPRESENTATIVE'S ADDRESS
16. ORGANIZATION'S MAILING ADDRESS (If different from #15 above)
17. CONTACT EMAIL ADDRESS
18. AUTHORIZED REPRESENTATIVE'S SIGNATURE
19. DATE SIGNED
PROPERTY OWNER APPROVAL BY (Name), REQUIRED
PHONE NUMBER
PROPERTY OWNER SIGNATURE
DATE SIGNED
LAW ENFORCEMENT APPROVAL BY (Name), IF APPLICABLE
PHONE NUMBER
LAW ENFORCEMENT SIGNATURE
DATE SIGNED
DISTRICT OFFICE APPROVAL BY (Name)
ABC EMPLOYEE SIGNATURE
ISSUANCE DATE
The above-named organization is hereby licensed, pursuant to the California Business and Professions Code Division 9 and California Code of Regulations, to engage in the temporary sale of alcoholic beverages for consumption at the above named location for the period authorized above.
This license may be revoked summarily by the Department if, in the opinion of the Department and/or the local law enforcement agency, it is necessary to protect the safety, welfare, health, peace and morals of the people of the State.
ATTACHMENT 3
183
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-678 Meeting Date: 5/17/2022
TITLE:
CONDUCT TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA) HEARING, ADOPT A
RESOLUTION APPROVING THE ISSUANCE CALIFORNIA ENTERPRISE DEVELOPMENT
AUTHORITY REVENUE OBLIGATIONS FOR THE BENEFIT OF VANGUARD UNIVERSITY OF SOUTHERN CALIFORNIA IN AN AMOUNT NOT-TO-EXCEED $30,000,000 DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING
DIVISION
PRESENTED BY: DANIEL INLOES, ECONOMIC DEVELOPMENT ADMINISTRATOR CONTACT INFORMATION: DANIEL INLOES, (714) 754-5088;
[email protected]
RECOMMENDATION:
Staff recommends the City Council:
1. Conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986 to receive comments relating to the issuance by the California Enterprise Development Authority (the “Authority”)of not to exceed $30,000,000 in the Authority’sRevenue Obligations (the “Obligations”)for the benefit of Vanguard University of Southern California, a California nonprofit public benefit corporation (the “Borrower”).
2. Adopt a Resolution approving the issuance of the Obligations by the Authority to finance and refinance the Facilities for the benefit of the Borrower.
BACKGROUND:
California Enterprise Development Authority (CEDA)
CEDA (hereafter the “Authority”)is a joint exercise of powers authority (JPA) established by the California Association for Local Economic Development (CALED) whose purpose is to issue tax- exempt and taxable conduit revenue bonds to fund commercial and industrial development projects within member jurisdictions. Federal and state laws provide the ability for cities and counties to join together under cooperative agreements to form joint powers authorities to issue tax-exempt and taxable bonds to fund projects that provide a public benefit and serve the needs of residents within the jurisdictions of the participating members. Cities and counties in California utilize joint powers authorities primarily for economies of scale, to access specialized transaction knowledge and resources, and to avoid using valuable local staff time on these types of transactions.
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The Authority is a joint powers authority created by the cities of Selma, Lancaster and Eureka. There are approximately 200 cities and counties who are associate members of the Authority. The Authority’s activities are dedicated to providing economic development assistance to member jurisdictions as an extension of the economic development assistance provided by CALED to its members. The City became an associate member of the Authority on September 3, 2019. As an Associate Member of the Authority, the City is eligible to participate in the Authority’s programs.
The Borrower
The Borrower and the Authority have requested that the City conduct a Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”)hearing and approve a resolution in accordance with Internal Revenue Code Section 147(f) authorizing the issuance of tax-exempt obligations by the Authority in an amount not to exceed $30,000,000. A TEFRA hearing is required by the Internal Revenue Code (“Code”)before tax-exempt debt can be issued for the benefit of a private nonprofit corporation. The hearing gives the public an opportunity to comment on the use of tax-exempt funds by the Borrower.
The proceeds of the Obligations will be used to finance and refinance the construction, development, improvement, installation, equipping and furnishing of certain educational and ancillary facilities located at the Borrower’sVanguard University of Southern California campus at 55 Fair Drive and 2374 Newport Boulevard in Costa Mesa (the “Campus”), including, but not limited to, an approximately 61,000-square-foot gymnasium/event center with locker rooms, a weight room, athletic training room and various athletic offices, classrooms, laboratories and administrative offices, and other campus improvements (collectively, the “Facilities”). The proceeds of the Obligations will also be used to pay certain costs of issuance and capitalized interest in connection with the issuance of the Obligations.
Founded in 1920, the Borrower is a Section 501(c)(3) organization and owns and operates a private university with an enrollment of approximately 2,250 students in connection with its charitable religious purposes. The Facilities will enrich the lives of students on the Campus and help improve the Borrower’s programs in the City.
The issuance of the Obligations as tax-exempt will reduce financing and debt service costs for the Borrower. In order to satisfy the requirements for the obligations to be issued as tax-exempt, an applicable elected representative, which is also a member of the Authority, is required to conduct the TEFRA hearing and approve the issuance of the tax-exempt obligations in accordance with Section147(f) of the Code. The City Council of the City of Costa Mesa constitutes an applicable elected representative under Section 147(f) of the Code.
A public notice of the public hearing was published on behalf of the City at least seven days prior to the hearing in the Daily Pilot newspaper by the law firm of Kutak Rock LLP.
ANALYSIS:
Vanguard University of Southern California has operated in Costa Mesa at 55 Fair Drive since 1950.
A Master Plan for the future expansion of Vanguard University of Southern California was approved by the City Council on February 19, 2019 by a 5-2 vote (Councilmembers Marr and Reynolds voting no). The Master Plan allowed for the overall expansion of the university including additional administrative buildings, additional classroom buildings, and student housing, a parking structure, and campus beautification and infrastructure upgrades. Once constructed, the additions to Vanguard
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and campus beautification and infrastructure upgrades. Once constructed, the additions to Vanguard University of Southern California will constitute a substantial addition to the university and increase the footprint of educational facilities within the City of Costa Mesa.
CEDA currently has over 16 member cities in Orange County, which include Newport Beach, Huntington Beach, Irvine, and Santa Ana. Partnering with CEDA allows for qualified projects to receive fiscal support through this joint powers authority to ensure qualifying projects are built.
Qualifying projects include non-profit facilities, manufacturing facilities and clean energy upgrades.
Supporting the issuance of Obligations to Vanguard University of Southern California will increase the potential success of the project, expedite the construction process, and help to build and open this community educational resource.
A previous TEFRA hearing for this project was held on March 3, 2020 where City Council approved a resolution approving the issuance of tax-exempt obligations by the California Enterprise Development Authority (CEDA) in an amount not-to-exceed $42,000,000 to finance and refinance certain facilities for the benefit of Vanguard University of Southern California, a California nonprofit public benefit corporation. This TEFRA hearing is for a second hearing and approval from the City of Costa Mesa as an applicable representative body so Vanguard University of Southern California might secure additional financing through CEDA.
ALTERNATIVES:
The City Council could decide not to approve the Resolution and Vanguard University of Southern California would need to seek authorization from another applicable elected representative body such as the County of Orange or secure a different financing source for its campus at 55 Fair Drive.
FISCAL REVIEW:
There is no fiscal impact to the City. The adoption of the Resolution approving the financing and refinancing of the Facilities and the issuance of the Obligations complies with the requirements of Section 147(f) of the Internal Revenue Code of 1986. The City does not bear any responsibility for the tax-exempt status of the interest on the Obligations, the debt service on the Obligations or any other matter related to the Obligations.
LEGAL REVIEW:
The City Attorney’soffice has reviewed the Agenda Report and Resolution and approves it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item is administrative in nature.
CONCLUSION:
Staff recommends the City Council:
1. Conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986 to receive comments relating to the issuance of the Obligations by the Authority to finance and
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refinance the Facilities.
2. Adopt a Resolution approving the issuance of the Obligations by the Authority to finance and refinance the Vanguard University of Southern California Facilities for the benefit of the Borrower.
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RESOLUTION NO. 2022-XX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA APPROVING
THE ISSUANCE BY CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY OF NOT TO EXCEED $30,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE
AUTHORITY'S REVENUE OBLIGATIONS FOR THE BENEFIT OF VANGUARD
UNIVERSITY OF SOUTHERN CALIFORNIA FOR THE PURPOSE OF FINANCING
AND REFINANCING THE COST OF ACQUISITION, CONSTRUCTION,
DEVELOPMENT, INSTALLATION, EQUIPPING AND FURNISHING OF
EDUCATIONAL FACILITIES AND OTHER MATTERS RELATING THERETO HEREIN
SPECIFIED
THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS AND DECLARES AS FOLLOWS:
WHEREAS, Vanguard University of Southern California, a California nonprofit religious corporation, and/or a related or successor entity (the “Borrower”) has requested that the California Enterprise Development Authority (the “Authority”) issue tax -exempt and/or taxable revenue obligations in an amount not to exceed $30,000,000 (the “Obligations”), for and on behalf of the Borrower, pursuant to the provisions of Chapter 5 of Division 7 of Title 1 of the Government Code of the State (commencing with Section 6500) (the “Act”), to (a) finance and refinance the construction, development, improvement, installation, equipping and furnishing of certain educational and ancillary facilities located at the Borrower’s campus at 55 Fair Drive and 2374 Newport Boulevard, both located in Costa Mesa, California (the “Campus”), including, but not limi ted to, an approximately 61,000-square-foot gymnasium/event center with locker rooms, a weight room, athletic training room and various athletic offices, classrooms, laboratories and administrative offices, and other campus improvements (collectively, the “Facilities”), and (b) pay certain costs of issuance and capitalized interest in connection with such financing and refinancing; and
WHEREAS, the Borrower owns and operates the Facilities as part of its university with the purpose of furthering the Borrower’s mission of educating students to pursue the values of truth, virtue and service; and
WHEREAS, the City of Costa Mesa (the “City”) is an Associate Member of the Authority and is eligible to participate in the Authority’s financing programs; and ATTACHMENT 1
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WHEREAS, the issuance of the Obligations shall be subject to the approval of and execution by the Authori ty of all financing documents relating thereto to which the Authority is a party; and
WHEREAS, the Facilities are located within the territorial limits of City; and WHEREAS, the interest on the Obligations may qualify for tax exemption under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”) only if the Obligations are approved in accordance with Section 147(f) of the Code; and WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is the applicable elected representative required to approve the issue within the meaning of Section 147(f) of the Code; and
WHEREAS, the Borrower and the Authority have requ ested the City Council to approve the issuance of the Obligations in order to satisfy the public approval requirements of Section 147(f) of the Code; and
WHEREAS, it is intended that this Resolution shall comply with the public approval requirements of Sec tion 147(f) of the Code; provided, however, that this Resolution is neither intended to nor shall it constitute an approval by the City Council of the Facilities for any other purpose; and
WHEREAS, a public hearing was held by the City Council on this 17th day of May, 2022, at the meeting which commenced at the hour of 6:00 p.m., in the Council Chambers of the City of Costa Mesa, 77 Fair Drive , Costa Mesa, California 92626, following a duly published notice thereof in a newspaper of general circulation in the City of Costa Mesa, on May 6, 2022, and all persons desiring to be heard have been heard;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES as follows:
Section 1. The City Council hereby finds and determines that all of the recitals are true and correct.
Section 2. The City Council hereby approves the issuance of the Obligations by the Authority, from time to time, pursuant to a plan of finance, which Obligations may be tax-exempt and/or taxable as approved by the Authority in its resolution, in an amount not to exceed $30,000,000 to finance and refinance the costs of the Facilities. This resolution shall constitute “host” approval of the issuance of the Obligations within the meaning of 189
Resolution No. 2022-xx Page 3 of 4
Section 147(f) of the Code and shall constitute the approval of the issuance of the Obligations within the meaning of the Act; provided, however, that this Resolution shall not constitute an approval by the City Council of the Facilities for any other purpose. The City shall not bear any res ponsibility for the tax -exempt status of the interest on the Obligations, the payment of the principal of or interest on the Obligations or any other matter related to the Obligations. The City does not have any responsibility for the debt and is not pledging any assets as security for the debt.
Section 3. All actions heretofore taken by the officers, employees and agents of the City with respect to the approval of the Obligations are hereby approved, confirmed and ratified, and the officers and employees of the City and their authorized deputies and agents are hereby authorized and directed, jointly and severally, to execute and deliver any and all certificates and documents which they or bond counsel may deem necessary or advisable in order to consummat e the Obligations and otherwise to effectuate the purposes of this Resolution.
Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing for the Facilities; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation or operation of the Facilities; or (iii) make any contribution or advance any funds whatsoever to the Authority.
Section 5. This Resolution shall take effect from and after adoption.
Section 6. The City Clerk of the City of Costa Mesa shall certify the adoption of this resolution, and thenceforth and thereafter the same shall be in full force and effect. 190
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PASSED AND ADOPTED this 17th day of May, 2022.
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 2022-XX and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 17th day of May 2022, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of May 2022.
_________________________________
BRENDA GREEN, CITY CLERK
191
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-683 Meeting Date: 5/17/2022
TITLE:
INTRODUCTION OF AN ORDINANCE ADDING CHAPTER XV (UNLAWFUL POSSESSION OF A CATALYTIC CONVERTER) TO TITLE 11 (OFFENSES-MISCELLANEOUS) OF THE COSTA MESA
MUNICIPAL CODE TO ESTABLISH REGULATIONS PROHIBITING THE UNLAWFUL POSSESSION
OF CATALYTIC CONVERTERS IN THE CITY
DEPARTMENT: POLICE DEPARTMENT
PRESENTED BY: BRYAN WADKINS, LIEUTENANT
CONTACT INFORMATION: BRYAN WADKINS, LIEUTENANT, (714)754-5292 RECOMMENDATION:
Staff recommends the City Council:
Introduce for first reading, by title only, Ordinance No. 2022-xx, adding Chapter XV (Unlawful Possession of a Catalytic Converter) to Title 11 (Offenses-Miscellaneous) of the Costa Mesa Municipal Code to establish regulations prohibiting the unlawful possession of catalytic converters in the City.
BACKGROUND:
In recent years, the residents of Costa Mesa have been the victims of hundreds of catalytic converter thefts. Unsuspecting victims park their cars and while they are away, criminals quickly remove the catalytic converter from their vehicles using power tools. The theft of catalytic converters is one of the fastest growing crimes in Costa Mesa, having increased from 26 in 2019 to 318 in 2021, a 1,223% increase in two years.
Catalytic converter thefts are on the rise statewide because individuals are incentivized to commit catalytic converter thefts for multiple reasons including, but not limited to:
· The ease and undetectable nature of committing the thefts in a matter of seconds using common tools.
· The ability to recycle catalytic converters at scrap metal yards for high dollar returns ranging from $200 to $1,200 per catalytic converter.
· Loopholes in current laws protecting criminals from prosecution unless a victim can be identified.
The individuals who are in possession of stolen catalytic converters recycle them for substantial profit, while victims of these thefts suffer consequences of paying thousands of dollars in repairs, the inconvenience of repairing their vehicles and feeling unsafe in their community.
Based on current laws, if a suspect is found to be in possession of numerous catalytic converters,
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Based on current laws, if a suspect is found to be in possession of numerous catalytic converters, police have the burden to prove the catalytic converters are stolen. Law enforcement must do this by identifying the specific victim associated with the stolen catalytic converter. This task can be nearly impossible due to catalytic converters not having identifying serial numbers that can be traced.
Currently, there are no City, State or Federal laws that punish the possession of unlawfully obtained catalytic converters without identifying the associated victim. Nor are there any laws that require individuals to provide proof to law enforcement as to how they obtained a catalytic converter. These issues limit law enforcement’sability to protect the public by preventing law enforcement from seizing suspected stolen catalytic converters when no victim can be identified.
In order to help address the rise in catalytic converter theft issues, the Costa Mesa Police Department has used multiple means to educate the public to this emerging crime and increased directed patrol, even employing bait cars and drones in an effort to catch catalytic converter thieves in the act. The Costa Mesa Police Department has also organized events with a local automotive business to etch identifying information on catalytic converters to assist in their recovery if stolen.
Although etching crime prevention outreach is helpful, accounting for nearly fifty catalytic converter etchings in Costa Mesa, it is not enough to significantly reduce this crime.
ANALYSIS:
The residents of Costa Mesa and the Costa Mesa Police Department are in need of legislation regarding these issues in order to:
· Deter crime by establishing zero-tolerance for catalytic converter thefts. · Establish sanctions for possessing stolen catalytic converters. · Prevent criminals from profiting from the sale and recycling of stolen catalytic converters. · Provide justice to the victims of catalytic converter thefts whose cases would otherwise go unsolved.
· Reducing Part 1 crime statistics, which have been substantially increased by catalytic converter thefts.
· Minimizing the fiscal and personnel impact that the City of Costa Mesa invests in deterring and investigating catalytic converter thefts.
The proposed ordinance would add a new Chapter XV (Unlawful Possession of a Catalytic Converter) to Title 11 (Offenses-Miscellaneous) of the Costa Mesa Municipal Code. The proposed ordinance makes it unlawful for any person to possess any catalytic converter that is not attached to a vehicle unless the person has valid documentation or other proof to verify that the person is in lawful possession of the catalytic converter. It also makes it unlawful for any person to knowingly falsify, or cause to be falsified, any information in any documentation or other proof intended to show lawful possession of a catalytic converter. Violations of the chapter are deemed misdemeanors.
Other cities in Orange County, including Irvine, Huntington Beach and Mission Viejo, have adopted similar ordinances.
The adoption of the proposed ordinance will provide the Costa Mesa Police Department with clearly established legal authority to assist in protecting the public and deterring this criminal activity.
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ALTERNATIVES:
City Council could elect to not introduce the proposed ordinance, leaving enforcement of catalytic converter thefts as they are today, absent future changes to State law.
FISCAL REVIEW:
There is no fiscal impact to the Introduction of the Ordinance.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and approved it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the City Council Goal:
· Strengthen the public’s safety and improve the quality of life.
CONCLUSION:
Staff recommends that the City Council:
Introduce for first reading, by title only, Ordinance No. 2022-xx, adding Chapter XV (Unlawful Possession of a Catalytic Converter) to Title 11 (Offenses-Miscellaneous) of the Costa Mesa Municipal Code to establish regulations prohibiting the unlawful possession of catalytic converters in the City.
194
Attachment - 1
ORDINANCE NO. 2022-xx
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA ,
CALIFORNIA, ADDING CHAPTER XV (UNLAWFUL POSSESSION OF A CATALYTIC CONVERTER) TO TITLE 11 (OFFENSES —MISCELLANEOUS) OF THE COSTA
MESA MUNICIPAL CODE TO ESTABLISH REGULATIONS PROHIBITING THE
UNLAWFUL POSSESSION OF CATALTYIC CONVERTERS IN THE CITY
WHEREAS, the City of Costa Mesa, pursuant to its police power, may enact regulations for the public peace, morals, and welfare of the City; and
WHEREAS, in recent years, the residents of the City of Costa Mesa have been the victims of hundreds of catalytic converter thefts; and
WHEREAS, the theft of catalytic converters is one of the fastest growing crimes in Costa Mesa, increasing from 26 in 2019 to 218 in 2021, a 1,223% increase; and
WHEREAS, catalytic converters contain expensive precious metals including platinum, palladium and rhodium; and
WHEREAS, individuals in possession of stolen catalytic converters often recycle them for substantial profit, while victims of these thefts suffer the consequences of paying thousands of dollars in repairs, the inconvenience of repairing their vehicles, and feeling unsafe in their community; and
WHEREAS, catalytic converter thefts are on the rise statewide because individuals are incentivized to commit catalytic converter thefts for multiple reasons including, but not limited to: (1) the ease and undetectable nature of committing the thefts in a manner of seconds using commonly available tools, (2) the ability to recycle catalytic converters at scrap metal yards for high dollar returns, ranging from $200 to $1,200 per catalytic converter, and (3) loopholes in current laws protecting suspected criminals from prosecution unless a victim can be identified; and
WHEREAS, finding the victims of these crimes is nearly impossible due to the manner in which the catalytic converter thefts occur and lack of identifying markers to link a stolen catalytic converter to the victim; and
WHEREAS, the inability to identify victims of catalytic converter thefts has stymied the ability to successfully prosecute individuals for the thefts; and
WHEREAS, there are currently no City, State or Federal laws applicable within the City of Costa Mesa to define and punish catalytic converter thefts absent an identifiable victim; and
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Ordinance No. 2022-xx Page 2 of 5
WHEREAS, there are currently no City, State or Federal laws applicable within the City of Costa Mesa to define and punish the recycling or sale o f unlawfully obtained catalytic converters, thus incentivizing criminal enterprise of catalytic converter thefts; and
WHEREAS, there are currently no City, State or Federal laws applicable within the City of Costa Mesa requiring individuals to provide proof to la w enforcement as to how they obtained catalytic converters, thus limiting law enforcement’s ability to (1) protect the public by preventing catalytic converter thefts and (2) seize suspected stolen catalytic converters when no victim is present; and
WHEREAS, this Ordinance is necessary to provide the Costa Mesa Police Department a means to protect the public, deter this criminal activity and promote a more productive use of Costa Mesa Police Department staff resources by staff responsible for investigating catalytic converter thefts; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES ORDAIN AS FOLLOWS:
Section 1. Recitals. The City Council finds that all the recitals, facts and conclusions set forth above in the preamble of this Ordinance are true and correct.
Section 2. Amendment to Title 11 . Title 11 (Offenses —Miscellaneous) of the Costa Mesa Municipal Code is hereby amended to add Chapter XV (Unlawful Possession of a Catalytic Converter) as follows:
CHAPTER XV. UNLAWFUL POSSESSION OF A CATALYTIC CONVERTER
11-400. Definitions. The following terms as used in this chapter shall, unless the context already indicates otherwise, have the respective meanings herein set forth herein.
(a) Documentation or other proof means written document(s) that clearly identify the vehicle from which the catalytic converter originated based on the totality of the circumstances and includes, but is not limited to, the following types of documents:
(1) Bill of sale from the original owner with photographs.
(2) Documentation from an auto body shop proving the owner relinquished the catalytic converter to the auto body shop.
(3) Verifiable electronic communication from the previous owner to the possessor relinquishing ownership of the catalytic converter.
(4) Photographs of the vehicle from which the catalytic converter originated. 196
Ordinance No. 2022-xx Page 3 of 5
(5) Vehicle registration associated with the catalytic converter containing an etched associated license plate number or vehicle identification number.
(b) Lawful possession means being the lawful owner of the catalytic converter or in possession of the catalytic converter with the lawful owner’s written consent. It is not required to prove the catalytic converter was stolen to establish the possession is not a lawful possession.
11-401. Unlawful possession of a catalytic converter.
It shall be unlawful for any person to possess any catalytic converter that is not attached to a vehicle unless the person has valid documentation or other proof to verify that the person is in lawful possession of the catalytic converter.
11-402. Falsification of proof of ownership.
It shall be unlawful for any person to knowingly falsify or cause to be falsified any information in any documentation or other proof intended to show lawful possession of a catalytic converter.
11-403. Violations; penalties.
(a) Each and every violation of this chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by this Code. Each and every catalytic conv erter unlawfully possessed shall constitute a separate violation of this chapter.
(b) Violation of any provision of this chapter shall be deemed a misdemeanor punishable pursuant to the provisions of section 1-33 of this Code.
(c) The remedies provided herein are not to be construed as exclusive remedies. The city is authorized to pursue any proceedings or remedies provided by law.
Section 3. Environmental Compliance. This Ordinance has been reviewed for compliance with the California Environmental Quality Ac t (CEQA) and the CEQA Guidelines, and has been found to be exempt pursuant to Section 15061(b)(3) (General Rule) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a signif icant effect on the environment.
Section 4. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance.
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Section 5. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, senten ce, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases are portions be declared invalid or unconstitutional.
Section 6. Effective Date . This Ordinance shall become effecti ve thirty (30) days after its adoption.
Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be posted or published in the manner required by law.
PASSED AND ADOPTED this xx day of xx, 2022.
_____________________________
John Stephens, Mayor
ATTEST:
______________________________
Brenda Green, City Clerk
APPROVED AS TO FORM:
______________________________
Kimberly Hall Barlow, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2022-xx was duly introduced for first reading at the regular meeting of the City Council held on the 17th day of May, 2022, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the xx day of xx, 2022, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this _____ day of __________, 2022.
________________________________
BRENDA GREEN, CITY CLERK
(SEAL)
199
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 22-705 Meeting Date: 5/17/2022
TITLE:
TERMINATION OF JAIL SERVICES CONTRACT BETWEEN ALLIED UNIVERSAL AND THE CITY
OF COSTA MESA
DEPARTMENT: Police Department
PRESENTED BY: Joyce LaPointe, Captain
CONTACT INFORMATION: Joyce LaPointe, Captain, 714-754-5663 RECOMMENDATION:
Staff recommends the City Council:
1. Terminate the Professional Services Agreement for jail services between Allied Universal, assignor of G4S Secure Solutions (USA) Inc. and the City of Costa Mesa.
2. Authorize the City Manager or her designee to negotiate an agreement with the City of Huntington Beach for temporary jail services and/or to hire temporary staffing to operate the Costa Mesa Jail.
BACKGROUND:
In June 2013, the City of Costa Mesa began contracting for jail services with G4S Secure Solutions (USA) Inc. (“G4S”)at a cost not-to-exceed the total amount of $743,329.60 per year. The contract was for a three-year term, with the option to extend the term of the contract for two additional one- year periods. The City and G4S exercised the extension options, extending the term through June 25, 2018. The cost for the two additional years was not-to-exceed the total amount of $748,329.60 per year.
In November 2017, the City released a Request for Proposal (RFP No. 18-06) for jail services in anticipation of the current G4S contract expiring on June 25, 2018. The City received one response to the RFP, which was from G4S. The proposal was for jail services at a cost not-to-exceed: Year 1 - $851,260.80; Year 2 - $887,490.24; and Year 3 - $924,098.24. The proposed contract with G4S contained two optional one-year extension options, the first of which was exercised in June 2021, with an expiration date of June 30, 2022. The Agreement provides that the City may terminate the Agreement at any time, effective upon delivery of the notice of termination.
As outlined below, due to the resignation of the majority of jail services personnel, Allied Universal is unable to meet Costa Mesa’sneeds pursuant to the contract, staff is recommending that the contract with Allied Universal as assignee of G4S be terminated effective May 18, 2022 at 11:59 p.m., and the City Manager or her designee be authorized to negotiate for temporary jail services with the City of Huntington Beach and/or to retain temporary staffing to operate the jail pending Council action on a
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Huntington Beach and/or to retain temporary staffing to operate the jail pending Council action on a permanent alternative for the City’s jail services.
ANALYSIS:
Police Department Staff was recently informed that a mass resignation of employees of Allied Universal who work in the Costa Mesa jail has occurred, unrelated to any action by the City. As of May 19, there will only be 2 properly trained and experienced jailers available from Allied Universal to staff the Costa Mesa jail, which is insufficient to maintain the jail operations. Hiring, doing background checks and training for new personnel is a minimum three-month process, and cannot be accomplished by the time the available staffing is reduced to two persons. There are no other private companies who provide this service. Staff met with Allied Universal managers on May 12, 2022 but no viable alternative plan for staffing the City’s jail were provided by the contractor.
While the services of Allied Universal’spersonnel have been good, these experienced personnel are resigning from Allied Universal, leaving the City no legal options but to close the City’sjail temporarily while staffing options are fully evaluated. In the meantime, staff seeks Council authority to negotiate a Memorandum of Understanding with the City of Huntington Beach to provide temporary jail services to Costa Mesa. This will reduce by several hours the time needed for a sworn officer to be out of the field during transport and booking of an arrestee directly to the Orange County Jail. In addition, staff seeks Council authority to explore the possibility of temporary staffing of the Costa Mesa jail with properly trained and experienced personnel while long term options are assessed.
ALTERNATIVES:
No other alternatives have been considered.
FISCAL REVIEW:
The City’scost for jail services is budgeted annually based upon the approved and active contract for jail services. The costs for jail services through G4S Secure Solutions (USA) Inc./Allied Universal for the current fiscal year are $924,098.24. The early termination of the contract would reduce the contract costs by approximately $77,000.
The costs of contracting with City of Huntington Beach for temporary jail services and/or hiring temporary employees to staff the jail is unknown at this time, but should be absorbable in the Police Department’scurrent budget and the expected 2022-23 FY budget until such time as City Council is presented with and selects a permanent option for staffing the Costa Mesa City Jail.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and approved it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the City Council Goal:
· Strengthen the public’s safety and improve the quality of life.
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CONCLUSION:
The current contract with Allied Universal, successor to G4S expires June 30, 2022. However, the contractor cannot provide sufficient trained and qualified personnel to operate the City’sjail after May 18, 2022. Therefore, the Agreement with Allied Universal should be terminated, and the City Manager authorized to explore other options for jail services, including contracting with Huntington Beach or using temporary staffing, while staff evaluates permanent options and returns to the City Council for action.
Staff recommends that the City Council terminate the Professional Services Agreement with Allied Universal, successor to G4S, for jail services and authorize the City Manager to contract with City of Huntington Beach and/or utilize temporary staffing to maintain jail operations pending selection of a permanent solution to staffing.
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