Business Improvement Area Reauthorization
and Levy Annual Assessment
June 21, 2022
Background
• May 17, 2022: City Council adopted Resolution No. 2022- 23 declaring the intention to levy an annual assessment for FY 2022-2023 and set a public hearing on June 21, 2022
City Council meeting.
• City received and filed TCM’s annual report and financial audit.
• Currently, 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.
• Participation in the BIA is voluntary. However, each year all participant and non-participant hotels/motels are notified about the Public Hearing and the opportunity to join the BIA.
BIA Reauthorization and Levy of Annual
Assessment
• For FY 22-23, the proposed levy is three percent (3%), which is transmitted by the hotels to the City and ninety- nine percent (99%) of the assessment is remitted to
TCM. The remaining one percent (1%) is retained by the
City to offset administrative costs.
• 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.
• City utilizes TCM funding for City signature community events and marketing efforts for an annual total of
$164,000. This year the City is proposing to use Federal American Rescue Plan Act (ARPA) to fund these
activities.
FY 2021-2022 Highlights
• Travel Costa Mesa continues its dedication to
showcasing the City of Costa Mesa as the City of the
Arts and partnered with influencers and content creators to amplify messaging across various platforms, summer
and holiday co-ops with Visit California, and meetings
guide videos.
• TCM continued its efforts in marketing, media and
communications relations, and group sales.
• TCM’s website increased new website users and page
views over the calendar year. Organic search traffic grew considerably due to search engine optimization efforts, gaining 140.50% year over year.
• Group sales continued with partner hotels, where TCM
generated over 200 leads, representing over 800,000
room nights, and booked 25 meetings and events with
4,799 rooms at partner hotels.
5 Travel Costa Mesa
Recommendations
State law mandates (Streets and Highways Code § 36533)
specific procedures to be followed in the establishment of a business improvement area and the levying of a voluntary annual assessment.
1. Conduct a public hearing regarding the Business
Improvement Area (BIA) reauthorization and levy of the
annual assessment for Fiscal Year 2022-2023.
2. Adopt Resolution 2022-xx, confirming the annual report filed by Travel Costa Mesa and levying an annual
assessment for Fiscal Year 2022-23 for the Business
Improvement Area covering certain Costa Mesa hotels and motels.
3. Approve the use of $164,000 in Federal American Rescue Plan Funds as revenue recovery for City activities,
programs and events, until annual hotel tax and BIA
revenues are restored to normal levels.
INTRODUCTION OF AN ORDINANCE TO
APPROVE CODE AMENDMENT FOR CMMC
PERTAINING TO PARKING BY PERMIT ONLY
AND AUTHORIZE RELATED FEES
Public Works Department
City Council Meeting
June 21, 2022
BACKGROUND
May 3, 2022 City Council Meeting:
• Approved the Revised Residential Permit Parking (RPP) Program Guidelines and Policies.
• Authorized staff and City Attorney to initiate amendments to the Costa Mesa Municipal Code (CMMC) incorporating proposed changes to the RPP program and return for approval through a Public Hearing process.
• Approved in concept the implementation of an annual residential parking permit fee with an escalating rate structure and discount for qualifying low-income residents.
• Proposed Fee Rates to be reviewed and considered by
City Council at a Future Meeting.
3 GUIDING PRINCIPLES IN DEVELOPMENT OF RPP PROGRAM
Develop equitable programs that appropriately balance the parking needs of all residents, businesses, and visitors, while enabling the on-street parking supply to serve the community fairly and enhance access for all.
Equitable
Access
Implement financially sustainable strategies that modernize and streamline parking program management.
Sustainable
Solutions
Create an efficient and adaptable parking system that is optimized for the City’s current needs but can be
incrementally updated and adjusted over time.
Efficient
Program
Management
KEY FEATURES OF THE NEW PROGRAM
RPP limited to areas experiencing external parking impacts from commercial areas, neighboring cities, Fairgrounds and recreational areas.
No change in petition and staff review process.
One permit per eligible driver.
All housing types within impacted areas eligible for permits.
Annual permit parking fee with escalating rate structure.
ATTORNEY GENERAL’S OPINION #14-304
“In issuing long
-
term residential parking permits, local authorities may not distinguish among residents based on the type of dwelling in which they live” Proposed Amendments
to Title 10 of CMMC
• Incorporate changes to the Residential Permit
Parking program
• Pertain to Parking by Permit Only.
• Require the payment of related fees to be adopted by
the City Council at a future meeting.
Residential Permit Support
Services for Implementation
• Original PSA with Dixon Resources Unlimited approved
by City Council in 2020.
• RPP management support services needed from Dixon
for the implementation phase to:
• Support the transition and implementation of the permit processes.
• Provide guidance for the new permit fee structure.
• Ensure seamless integration with existing parking
technologies.
• Manage extensive public outreach and education campaign.
Fiscal Review
• Funding for the new Residential Permit Parking
Program approved in the FY 22-23 budget.
• Funding of proposed amendment to PSA with
Dixon Resources Unlimited included in budget
for RPP Program.
Staff
Recommendations
Staff recommends the City Council:
1. Introduce for first reading, by title only, Ordinance No. 2022-xx to approve Code Amendment CO-2022-xx, amending Article 3 of Title 10 of the CMMC pertaining to parking by permit only. Residential Permit Parking program guidelines and policies.
2. Approve proposed Amendment No. 3 to the Professional Services Agreement with Dixon Resources Unlimited increasing the maximum compensation by $60,950 for Residential Permit Parking Support Services, for a total not-to-exceed amount of $192,950.
3. Authorize the City Manager and the City Clerk to execute the amendment and future authorized amendments to the agreement.
QUESTIONS?
RENTAL ASSISTANCE UPDATE
June 21, 2022
2 BACKGROUND
Pre-Pandemic (January 2020)
• 5% Cap (+CPI) on Rent Increases (twice over 12-month period) • Included “Just Cause” evictions for non-payment of rent • Buildings undergoing substantial rehab are exempt
• Annual Rent Increases = Economic Displacement
COVID-19 Pandemic Emerges (March 2020)
• Housing, food, and income insecurity = Inability to pay rent • Low vacancy rates + higher rents = Inability to secure/maintain housing Eviction Moratorium (April 2020)
• Council adopts a City-wide Eviction Moratorium
CDBG-CV Rental Assistance Program (October 2020 and June 2021) • Council allocates a total of $842,321 in CDBG-CV funds to rental assistance HOME TBRA Program (November 2020 and November 2021)
• Council allocates a total of $300,000 in HOME funds to rental assistance 3 RENTAL ASSISTANCE SUMMARY
Rental Assistance Providers
Award
Amount
Expended
Amount
Remaining
Balance Contract Status
SPIN (Families) CDBG-CV $457,000 $239,937 $217,063 Expires 6/2023 Families Forward (Families) CDBG-CV $55,000 $8,924 $46,076 Expires 8/2023 Mercy House (Individuals) CDBG-CV $330,321 $308,009 $22,312 Expires 6/2023 CDBG-CV TOTALS $842,321 $556,870 $285,451
Families Forward (TBRA) HOME $300,000 $26,274 $273,726 Expires 11/2022 ALL TOTALS $1,142,321 $583,144 $559,177
4 RENTAL ASSISTANCEACCOMPLISHMENTS
Support
Staffing
$147,248
(23%)
Rent Payments
$435,896
(77%)
EXPENDITURE RATIO
82 216
0 50
100
150
200
250
Households Assisted Persons in HH Assisted
COSTA MESA RESIDENTS
ASSISTED TO-DATE
Total Rental Assistance Expenditures - $583,144
Average Rent Per Household - $5,315
5 PROGRAMMATIC ENHANCEMENTS
THREE-PRONGED APPROACH
Expand Eligibility
Enhance Outreach
Increase Funding
6 BROADENING ELIGIBILITY CRITERIA
CDBG-CV
Existing Eligibility Proposed Eligibility
80% AMI 80% AMI
3 Months of Assistance ($6,000 Cap) 6 Months of Assistance (No Cap) Direct COVID-19 Impact COVID-19 Impact Prevention/Economic Recovery Gap Rental Assistance/Rental Arrears Gap Rental Assistance/Eviction Prevention/RentalArrears
HOME (TBRA)
Existing Eligibility Proposed Eligibility
50% AMI 60% AMI (for enrollment)
3-6 months of Assistance Up to 24 months of Assistance
(income under 80% AMI to remain eligible)
Deposit and/or Rental Assistance (new unit only) Deposit and/or Rental Assistance (new unit) AND Gap Rental Assistance (existing unit)
Locally Homeless
Residency Requirement (36 months in Costa Mesa)
Homeless or At-Risk of Homelessness
“Live, Work, School” Ties to Costa Mesa
7 COMMUNITY OUTREACH EFFORTS
• Targeted redistribution of Spanish and English program flyers • Social Media Posts (i.e. Facebook, Instagram, Next Door, Nixle, etc.) • Costa Mesa Minute and El Minuto de Costa Mesa episodes
8 COMMUNITY OUTREACH EFFORTS
TARGETED OUTREACH
• English Learner Advisory Committee (ELAC) event at Costa Mesa High School • Paularino Elementary Open House
• Wilson Learning Center 2022 Promotion Ceremony (K-12)
OUTREACH TO COMMUNITY ORGANIZATIONS
• Save Our Youth
• Wilson Learning Center
• Las Promotoras (Costa Mesa)
• Think Together
• Melinda Hoag Smith Center for Healthy Living
• NMUSD
• Project Hope Alliance
• Latino Health Access
• Human Options
• Resilience OC
9 COMMUNITY OUTREACH EFFORTS
RESOURCE FAIRS
• City-wide
WORKSHOPS
• Fair Housing
• Legal Aid
• Rental Assistance
SERVICE PROVIDERS
• All three providers (MH, FF, SPIN) hosted a table in front of City Hall prior to tonight’s Council Meeting.
• Mercy House has reassigned the lead of their RA program to a bilingual case worker with an English/Spanish voicemail.
• SPIN is updating their call in number to go to an extension (rather than their general mailbox), which will be in both English and Spanish. • Families Forward is currently discussing how they can update their process to accommodate community feedback.
10 ADDITIONAL RENTAL ASSISTANCE FUNDING
Rental Assistance Providers Award
Amount
Expended
Amount
Remaining
Balance
Contract
Expiration
SPIN (Families) CDBG-CV $457,000 $239,937 $217,063 06/01/23 Families Forward (Families) CDBG-CV $55,000 $8,924 $46,076 08/01/23 Mercy House (Individuals) CDBG-CV $330,321 $308,009 $22,312 06/01/23 Mercy House (Individuals) CDBG-CV $62,312 $0 $62,312 07/01/23 CDBG-CV TOTALS $904,633 $556,870 $347,763
Families Forward (TBRA) HOME $300,000 $26,274 $273,726 11/01/22 NEW Costa Mesa Rental Assistance Program $500,000 $0 $500,000 ALL TOTALS $1,704,633 $583,144 $1,121,489
11 STAFF RECOMMENDATIONS
1. Approve proposed Amendment No. 2 (Attachment 1) to the Subrecipient Agreement (SRA) with Mercy House Living Centers increasing the compensation by $62,312, for a total Not-To-Exceed amount of $392,633 for program administration for the City’s CDBG-CV Rental Assistance Program for lower-income households without children.
2. Appropriate an allocation of $500,000 in American Rescue Plan Act (ARPA) funds to augment the HUD funded Rental Assistance Program for Costa Mesa renters, and required ancillary services, if eligible, from this or any other Federal or City available and eligible Fund, as needed;
3. Authorize the City Manager and the City Clerk to execute any new agreements and any and all amendments to existing agreements for the augmented ARPA funding for the Rental Assistance Program to assist Costa Mesa renters to overcome housing instability.
QUESTIONS?
JASON MINTER, Parks & Community Services Director
LAURETTE GARNER, Arts Specialist
JUNE 21, 2022
ARTS COMMISSION REPORT
BACKGROUND
• 1984 - the City Council adopted the motto “City of the Arts” to memorialize the City’s commitment to the development of the arts, including the creation of a Cultural Arts Committee
• 1999 - City Council approved Resolution 99-54 adopting modifications to the City Seal to include the “City of the Arts” motto
• 2018 - Orange County Museum of Art unveils plans for a new location at the Segerstrom Center for the Arts
• 2019 - the Parks and Recreation Commission was renamed the Parks, Arts and Community Services Commission, and both the arts and senior services were added to its purview
• 2021 - City Council approved and adopted the Arts and Culture Master Plan Connector (2006) by Richard Serra
3 • The Arts and Culture Master Plan included establishing an Arts Commission to reflect the Council’s desire for an ongoing policy focus • A new seven (7) member Commission would serve to attract those residents best qualified by virtue of knowledge and experience for the overall development of the arts
• Per the Master Plan the general ideology of the Arts Commission shall be:
• to ensure that the City of Costa Mesa is a place where creativity can flourish • imagination, inspiration and innovation are held in high regard • arts education is essential to all
• arts and culture promotes civic pride and enriches the daily lives of the community • Revise the name of the Parks, Arts and Community Services Commission • Remove the Arts language and responsibilities
• Rename as Parks and Community Services Commission (formally known as the Parks and Recreation Commission)
SUMMARY & ANALYSIS
California Scenario (1982) by Isamu Noguchi
Orange County Museum of Art (rendering)
4 PENDING ART PROJECTS FOR THE COMMISSION
• Implementation of a revised Utility Box Art Program
• Public Art Policy – Currently being drafted by Arts OC • Enhancements to the City’s current Arts Policies
• Would be reviewed by the new Commission in Fall 2022
• Review of potential Public Art Ordinances
• Consideration of Public/Private Development Fees for Art (1% Art Fee) • Consideration of the Potential Development of a Community Art Center • Creation of a Public Art Garden including Selection of Artists Mural by Joshua Madrid at The Lab
Thalo Sun (2021) by Gabriella Kohr at The Lab
STAFF RECOMMENDS TO COUNCIL:
• Read by title only, waive further reading and introduce Ordinance 2022-23 to rename the Parks, Arts and Community Services Commission to Parks and Community Services Commission and remove arts related language. • Read by title only, waive further reading and introduce Ordinance 2022-24 to establish an Arts Commission that would serve as an advisory Commission to the City Council in matters related to the City’s Arts and Culture Master Plan.
• Authorize a $100.00 per month stipend for the Arts Commissioners.
Segerstrom Center for the Arts
Questions
June 21, 2022
Professional Services Agreement
Economic Development Strategic Plan
2 Direction
from
Leadership
Feedback
from the
Community
Best
Practices &
Case
Studies
3 1. RFP Details
• Release of RFP - April 5, 2022
• Proposals Due May 3, 2022
2. Required of all Proposals
• Responsive to Scope of Work
• Must have worked on previous Strategic Plan
• Provide sample of work
• Provide references
3. Conducted a comprehensive interview with top three
candidates on May 18, 2022
4. Checked references for lead candidate
4 Recommended Consulting Team
Wallace Walrod – Project Manager
Tech Coast Consulting Group
• Decades of experience and knowledge of Orange County economics Robert Kleinheinz – Lead Consultant
Kleinheinz Economics
• Experience in translating research into practical application Rebecca Alvarez – Community Outreach Specialist
Nonprofit Strategies
• 20 years of community outreach & marketing
Benjamin Palmer – Researcher
SEED Consulting
• Substantial research and analysis in Orange County
5 Studies &
Baseline
Vision / Goal
Setting
Develop Action
Plan &
Priorities
Develop Tools,
Metrics,
Models, and
Resources
Provide
Materials for
Ongoing
Implementation
& Branding
Scope of Work
6 Studies & Baseline
Market &
Industry Cluster
Analysis
Cost/Benefit
Analysis &
Implementation
Plan for
Citywide Fiber
E-Commerce
Trends &
Strategy
Site Value Index
for all
properties
within the City
7 Studies & Baseline
ESTABLISH BASE YEARSWOT
8 Studies & Baseline
Outreach
1. Regular meetings with
Blue Ribbon Panel
2. Outreach meetings
within Economic Enclaves
3. Community surveys/
interviews
Proposed goals & metrics
Vision / Goal Setting
City Council
9 Action Plan
Economic Cycle
Score Score
Score Score
Potential
Action
Expansion Contraction
Saliency &
Resources
High
Low
Create an objective scoring
system that allows for
potential actions to be
evaluated against economic
factors to determine
economic value and
priorities.
10 Tools, Models, &
Resources
1. Resource assessment
2. Development Transfer Opportunity program
3. Economic Benefit Model to evaluate the fiscal and
economic impact of specific projects
4. Recommendations for grant applications and useful
partnerships (e.g. opportunity zones etc)
5. Content for the Costa Mesa BAC website
6. GIS layers and spatial analysis
11 Materials for
Implementation & Branding
1. Outreach and branding materials
2. A rendered and marketable first year action plan
3. “Pitch deck” for the City and each economic enclave
4. Coordinate with local artist for branding materials
5. Refresh of the Costa Mesa BAC Website
6. Annual evaluation materials to track overall health of City, enclaves, and success of actions
12 Tech Coast Consulting Group (TCCG)
• TCCG Team developed the 2019-2023 Orange County's
Comprehensive Economic Development Strategy Report which is the regional CEDS for the City of Costa Mesa.
• TCCG Team has worked with a variety of California cities and counties, providing economic based work products including strategic plans for Long Beach and San Francisco.
13 Outreach Specialist
Rebecca Alvarez, TCCG’s community engagement
specialist, engages with nonprofit organizations where
their strategic vision must be informed by community
input and buy in. Experienced in one on one interviews, leading group discussions with subject matter experts,
and holding town hall meetings in both English and
Spanish.
14 Tech Coast Consulting Group (TCCG)
15 Recommendation
• Authorize the City Manager and City Clerk to execute an agreement with TCCG Tech Coast Consulting Group LLC (TCCG), for a not to exceed amount of $200,000 for the term of 1 year with additional 4 one-year renewal options, in substantially the form as attached and in such final form as approved by the City Attorney.
• Authorize the City Manager and City Clerk to execute future amendments with TCCG including any potential increases in compensation as long as the amendments are within the annual budget.
June 21, 2022
Professional Services Agreement
Economic Development Strategic Plan
17 Art Coordination Component
The City required the proposal to include the coordination of a local City artist to assist in the development of the visual material for the project. • Dynamic infographics
• Clarifying visuals
• Vibrant key messages
• Front end material should be mostly visual
• Digital medium for final deliverable
• Content consumable for video, online, and printable
• These tools will be used for branding, marketing, and community buy-in