Costa Mesa City Council
May 2, 2023

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 2, 2023
*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 as a courtesy virtually via Zoom Webinar. If the Zoom feature is having system outages or experiencing other critical issues, the meeting will continue in person.

TRANSLATION SERVICES AVAILABLE / SERVICIOS DE TRADUCCIÓN DISPONIBLE Please contact the City Clerk at (714) 754-5225 to request language interpreting services for City meetings. Notification at least 48 hours prior to the meeting will enable the City to make arrangements.

Favor de comunicarse con la Secretaria Municipal al (714) 754-5225 para solicitar servicios de interpretación de idioma para las juntas de la Ciudad. Se pide notificación por lo mínimo 48 horas de anticipación, esto permite que la Ciudad haga los arreglos necesarios.

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 2, 2023
Zoom Webinar: (For both 4:00 p.m. and 6:00 p.m. meetings) Please click the link below to join the webinar:
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Enter Webinar ID: 983 7639 0419/ Password: 905283
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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.

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.

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 2, 2023
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, for both videos and pictures. Please e-mail to the City Clerk at [email protected] NO LATER THAN 12:00 Noon on the date of the meeting. If you do not receive confirmation from the city prior to the meeting, please call the City Clerks office at 714-754-5225.

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.

In compliance with the Americans with Disabilities Act, Assistive Listening headphones are available and can be checked out from the City Clerk. If you need special assistance to participate in this meeting, please contact the City Clerk at (714) 754-5225. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II].

En conformidad con la Ley de Estadounidenses con Discapacidades (ADA), aparatos de asistencia están disponibles y podrán ser prestados notificando a la Secretaria Municipal. Si necesita asistencia especial para participar en esta junta, comuníquese con la oficina de la Secretaria Municipal al (714) 754-5225. Se pide dar notificación a la Ciudad por lo mínimo 48 horas de anticipación para garantizar accesibilidad razonable a la junta. [28 CFR

35.102.35.104 ADA Title II].

3 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023
CLOSED SESSION - 4:00 P.M.

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

ANTICIPATED LITIGATION - THREE CASES
Pursuant to California Government Code Section 54956.9 (d)(2)

4 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023

REGULAR MEETING OF THE CITY COUNCIL AND SUCCESSOR AGENCY

TO THE REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY
MAY 2, 2023 – 6:00 P.M.

JOHN STEPHENS
Mayor

JEFFREY HARLAN ANDREA MARR Mayor Pro Tem - District 6 Council Member - District 3

MANUEL CHAVEZ LOREN GAMEROS
Council Member - District 4 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

MOMENT OF SOLEMN EXPRESSION
[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
PRESENTATIONS:

1. Presentation: Vanguard University Men’s Volleyball National Champion

2. Presentation: Vanguard University Women's Beach Volleyball National Champion

5 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Comments on Consent Calendar items may also be heard at this time.

Comments are limited to 3 minutes, or as otherwise directed.

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 Chavez

2. Council Member Gameros

3. Council Member Harper

4. Council Member Marr

5. Council Member Reynolds

6. Mayor Pro Tem Harlan

7. Mayor Stephens
REPORT – CITY MANAGER
REPORT – CITY ATTORNEY
CONSENT CALENDAR (Items 1-9)
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.

1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL

ORDINANCES AND RESOLUTIONS
23-1173
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 23-1174
RECOMMENDATION:

City Council receive and file Claims received by the City Clerk: Julie May, Britt Lisa Meyer, Robert Edmund Meyer, Suzanne Tarvin, Ken Zammit.

6 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023

3. ADOPTION OF WARRANT RESOLUTION 23-1176
RECOMMENDATION:

City Council approve Warrant Resolution No. 2698.

1. Summary Check Register week of March 27 2023

2. Summary Check Register week of April 3 2023

3. Summary Check Register week of April 10 2023

4. Summary Check Register week of April 17 2023
Attachments:

4. MINUTES 23-1175
RECOMMENDATION:

City Council approve the Minutes of the Study Session meetings of March 14, 2023 and April 11, 2023 and Regular meetings of March 21, 2023 and April 4, 2023.

1. 03-14-2023 Draft Minutes

2. 03-21-2023 Draft Minutes

3. 04-04-2023 Draft Minutes

4. 04-11-2023 Draft Minutes
Attachments:

5. BUSINESS IMPROVEMENT AREA (BIA) REAUTHORIZATION,

RESOLUTION OF INTENTION, AND REVIEW OF ANNUAL REPORT
23-1166
RECOMMENDATION:

Staff recommends the City Council:

1. Approve the 2022-2023 Annual Report for the Business Improvement Area (BIA) (Attachment 1).

2. Receive and file the audited financial report for Fiscal Years Ended June 30, 2021 and June 30, 2022 (Attachment 2).

3. Adopt the Resolution declaring the City ’s intention to levy an annual assessment for Fiscal Year 2023-24 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. 2022-2023 Annual Report

2. Audit for Fiscal Year Ending June 2022

3. Resolution of Intent 2023-24 BIA Authorization
Attachments:

7 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023

6. LICENSE PLATE READER CAMERA MOBILE SYSTEM 23-1149
RECOMMENDATION:

Staff recommends the City Council:

1. Authorize the use of National Cooperative Purchasing Alliance (NCPA) Contract #05-81 with IPS Group, Inc. for the purchase of a License Plate Reader Mobile System.

2. Authorize the purchase of the License Plate Reader Mobile System, in the amount of $127,085.74 through National Cooperative Purchasing Alliance.

LPR NCPA QuoteAttachments:

7. RESOLUTION TO EXECUTE RIGHT-OF-WAY CERTIFICATIONS WITH

THE CALIFORNIA DEPARTMENT OF TRANSPORTATION
(CALTRANS)
23-1154
RECOMMENDATION:

Staff recommends the City Council adopt Resolution No. 2023-xx (Attachment 1) authorizing the Public Works Director or designee(s) to execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, and/or Fund Transfer Agreements, including Right-of-Way Certifications, and any other certifications, amendments, and documents to facilitate processes related to the California Department of Transportation (Caltrans) and Federal Highway Administration (FHWA).

1. Draft Resolution

2. Resolution 07-01
Attachments:

8. AUTHORIZE THE USE OF SOURCEWELL ’S NATIONAL
COOPERATIVE AGREEMENT 032119 WITH QUINN COMPANY FOR
THE PURCHASE OF ONE (1) NEW CATERPILLAR INC. MODEL: 308 EXCAVATOR AND ONE (1) CATERPILLAR INC. MODEL: 262d3 SKID

STEER LOADER
23-1183
RECOMMENDATION:

Staff recommends the City Council authorize the use of Sourcewell’s Cooperative Agreement No. 032119 with Caterpillar Inc. for the purchase of one (1) Caterpillar In. Model: 308 Excavator; and one (1) Caterpillar Inc. Model:
262D3 Skid Steer Loader for $294,235.37 from Quinn Company.

QuotesAttachments:

8 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023

9. MICROSOFT ® ENTERPRISE AGREEMENT LICENSING

COMPLIANCE
23-1181
RECOMMENDATION:

Staff recommends the City Council approve the true-up of the Microsoft ® Enterprise Agreement with SoftwareONE in the amount of $279,050.60.

1. License Agreement

2. Quote
Attachments:

AT THIS TIME COUNCIL WILL ADDRESS ANY ITEMS PULLED FROM THE CONSENT

CALENDAR
------------------------------END OF CONSENT CALENDAR------------------------------- PUBLIC HEARINGS: (Next Page)
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)

9 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023

1. FISCAL YEAR (FY) 2023-2024 ANNUAL ACTION PLAN IDENTIFYING

FUNDING PRIORITIES FOR THE COMMUNITY DEVELOPMENT

BLOCK GRANT ( CDBG) AND HOME INVESTMENT PARTNERSHIPS

GRANT (HOME) PROGRAMS
23-1180
RECOMMENDATION:

Staff recommends the City Council:

1. Hold a Public Hearing regarding the FY 2023-2024 Annual Action Plan.

2. Approve the recommended allocation of $1,689,303 for FY 2023-2024 Community Development Block Grant, which includes the annual allocation of $1,010,506, $78,797 in prior year( s) uncommitted program funds, and $600,000 in re-programmed CDBG funds.

3. Approve the recommended allocation of $549,260 for the Fiscal Year 2023-2024 HOME Investment Partnerships Grant, which includes the annual allocation of $509,260 and $40,000 in program income (lien/HOME loan repayments).

4. Adopt Resolution No. 2023-XX in order to:
a. Approve the FY 2023-2024 Annual Action Plan.
b. Authorize the City Manager, or the City Manager ’s designee, to submit the FY 2023-2024 Annual Action Plan to the U .S.

Department of Housing and Urban Development.
c. Designate the City Manager, or the City Manager ’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by HUD, and execute all subrecipient agreements for the use of funds approved in the FY 2023-2024 Annual Action Plan.

5. Provide direction regarding potential changes to the City ’s Tenant-Based Rental Assistance (TBRA) and Single-family Rehabilitation Grant and Loan Programs, as described in the staff report.

1. Resolution

2. Public Services Grant Recommendations

3. Draft 23-24 Annual Action Plan
Attachments:

10 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023
OLD BUSINESS:

1. AWARD OF STREET SWEEPING SERVICES 23-1186
RECOMMENDATION:

Staff recommends the City Council:

1. Award a Maintenance Services Agreement (MSA) for citywide street sweeping services to Sweeping Corp of America (SCA) for an initial two-year period with three one-year renewal periods for a not to exceed annual amount of $1,467,791.

2. Authorize a ten percent (10%) contingency annually for emergency response, special events and other unforeseen costs and approval for Consumer Price Index (CPI) escalation and de-escalation.

3. Authorize the City Manager and City Clerk to execute the agreement and future amendments to this agreement within Council authorized limits.

Maintenance Services Agreement with SCAAttachments:

2. CONSIDERATION OF MODEL FLYING ACTIVITY AT FAIRVIEW
PARK
23-1190
RECOMMENDATION:

Staff recommends that an environmental compatibility and biological resource assessment be completed by MIG Consulting LLC, as envisioned by the Fairview Park Master Plan Update, including the existing flying field location and/or other potential locations at Fairview Park, and that the temporary suspension of flying field activity be continued until such assessment is completed, due to current biological activity at the site.

1. US Fish & Wildlife Service Correspondence

2. Biological Sensitivity Map - Fairview Park Master Plan (1998)

3. California Dept. of Fish & Wildlife Correspondence

4. Excerpt of 4-12-23 Unofficial Fairview Park Steering Committee Minutes

5. Excerpts from Fairview Park Master Plan - References to Model Aircraft
Attachments:

11 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda May 2, 2023
NEW BUSINESS: NONE.

ADDITIONAL COUNCIL /BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND

SUGGESTIONS

ADJOURNMENT

12 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1173 Meeting Date: 5/2/2023
TITLE:

PROCEDURAL WAIVER: WAIVE THE FULL READING 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.

13 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1174 Meeting Date: 5/2/2023
TITLE:

READING FOLDER
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:

City Council receive and file Claims received by the City Clerk: Julie May, Britt Lisa Meyer, Robert Edmund Meyer, Suzanne Tarvin, Ken Zammit.

14 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1176 Meeting Date: 5/2/2023
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. 2698.

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. 23-07 On Cycle for $3,065,466.79 and 23-08 On Cycle for 3,063,714.42 and City operating expenses for $ 4,843,408.80.

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1175 Meeting Date: 5/2/2023
TITLE:

MINUTES
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:

City Council approve the Minutes of the Study Session meetings of March 14, 2023 and April 11, 2023 and Regular meetings of March 21, 2023 and April 4, 2023.

136
Minutes – Study Session – March 14, 2023 Page 1 of 2

CITY OF COSTA MESA

STUDY SESSION MEETING OF THE CITY COUNCIL
MARCH 14, 2023 – 5:00 P.M. MINUTES
CALL TO ORDER – The Study Session meeting was called to order by Mayor Stephens at 5:02 p.m.

PLEDGE OF ALLEGIANCE – Led by the Mayor.

ROLL CALL

Present: Council Member Chavez, Council Member Gameros, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: Council Member Harper
PUBLIC COMMENTS:

Speaker requested improvements at Brentwood Park, and provided a petition.

Andy Campbell, Fairview Park Steering Committee member, spoke on the committee having the opportunity to review the Capital Improvement Projects, spoke on a project pertaining to a recirculation pump for the wetlands, and a focus on the bluffs and mesa restorations.

Cynthia D’Agosta, Fairview Park Steering Committee member, spoke on having more communication on the park grant money received before decisions are made, spoke on restoration of the bluffs and wetlands, and spoke on fencing, signage, and trails that need to be updated.

Hank Castignetti, Orange County Model Engineers, spoke on working with the Fairview Park Advisory Committee on projects in Fairview Park.

STUDY SESSION ITEM:

1. PUBLIC WORKS DEPARTMENT OVERVIEW AND STATE GRANT PROJECTS Presentation by Mr. Sethuraman, Public Works Director, Mr. Yang, City Engineer, Ms.

Rosales, Transportation Manager, Mr. Ryan, Maintenance Services Manager City Council recessed into a break at 6:45 p.m.

City Council reconvened at 6:58 p.m.
137
Minutes – Study Session – March 14, 2023 Page 2 of 2
City Council conducted a study session providing feedback on Capital Improvement Projects, programs, services, and grant projects.

ADJOURNMENT –The Mayor adjourned the meeting at 7:57 p.m.

Minutes adopted on this 2nd day of May, 2023.
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
138
Minutes – Regular Meeting – March 21, 2023 Page 1 of 12

REGULAR CITY COUNCIL AND SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY
MARCH 21, 2023 – 6:00 P.M. - MINUTES
CALL TO ORDER – The Closed Session meeting was called to order by Mayor Stephens at 4:00 p.m.

ROLL CALL

Present: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

PUBLIC COMMENTS – NONE.

CLOSED SESSION ITEMS:

1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: Carrin A. Leaman vs. City of Costa Mesa Orange County Superior Courts Case No. 30-2021-01196302-CU-OR-CJC

2. CONFERENCE WITH LEGAL COUNSEL

ANTICIPATED LITIGATION - ONE CASE
Pursuant to California Government Code Section 54956.9 (d)(2)

3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to California Government Code Section 54957, (b)(1) Title: City Manager
City Council recessed at 4:03 p.m. for Closed Session.

Closed Session adjourned at 5:49 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 6:01 P.M.

NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE
A video was played of the National Anthem and Mayor Stephens led the Pledge of Allegiance.

MOMENT OF SOLEMN EXPRESSION - Led by Mr. John Begin.
139
Minutes – Regular Meeting – March 21, 2023 Page 2 of 12

ROLL CALL

Present: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

CITY ATTORNEY CLOSED SESSION REPORT – No reportable action.

PRESENTATIONS:

Mayor Stephens recognized Pacifica Christian High School Boys’ Basketball Team for winning the CIF SoCal Regional Division II championship.

Mayor Stephens presented a proclamation to Hengameh Abraham in recognition of 2023 Nowrūz- Persian New Year.

Ralph Taboada, Chair and Bridget Gleason, Vice Chair, presented the Active Transportation Committee annual report.

PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Speaker, encouraged improvements at Brentwood Park.

T.J. Kelly spoke on a cat having an infected wound, expressed concerns on Newport Animal Hospital, and requested an audit.

Jay Humphrey, Costa Mesa, spoke on recognition for student academic achievements, requested the Active Transportation Committee to address electric bikes, spoke on Measure K and an inclusionary housing ordinance.

Speaker, spoke on high rents, on safety issues at their apartment, and the landlord not making repairs.

Janis Celeste, Fentanyl Solutions Inc., spoke on their mission and preventing Fentanyl deaths.

Juana Trejo spoke on homelessness, high rents and substandard living conditions, invited council to tour their districts, and spoke on Project Homekey and housing for veterans and seniors.

Speaker, spoke on high rents, and on substandard living conditions.

Speaker, spoke on a proposed State Emergency Operations Center at Fairview Developmental Center site, spoke on the Active Transportation Committee recommendations, and requested the meetings to be recorded.

Speaker, spoke on safety in schools, safety on the streets, and spoke on drugs destroying youth.

Kevin Cook thanked the City for providing sandbags.
140
Minutes – Regular Meeting – March 21, 2023 Page 3 of 12

COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Council Member Marr spoke on Newport Animal Hospital, spoke on Project Homekey and that it is housing for veterans and seniors, spoke on the proposed Emergency Operations Center at Fairview Developmental Center site, spoke on meeting with residents to tour neighborhoods, and spoke on having a representative at the Airport Commission meetings.

Council Member Reynolds spoke on priorities and the Council’s Strategic Planning retreat, acknowledged women on staff for Women’s History Month, spoke on an event on March 29 th highlighting women in engineering fields at the Norma Hertzog Community Center, spoke on committee appointments and requested the City Council review the purpose, scope, and duties of the committees prior to appointments.

Council Member Chavez spoke on the Save Our Youth bike safety event, spoke on addressing citizen concerns on safety issues, engagement with the community to build trust, the difficulty of high rents and living conditions, spoke on the possibility of inspecting apartments, requested the Council review the purpose, scope, and duties of the committees prior to appointments and one person only on one committee or commission at a time, and requested to adjourn the meeting in memory of Huy Pham.

Council Member Gameros thanked staff for their hard work.

Council Member Harper thanked people for public comments, spoke on Fentanyl and drug issues, requested to look at committees and subcommittees and provide clear objectives, thanked staff for the installation of the Flock camera system, and requested an update on the Costa Mesa Tennis Center Request For Proposal.

Mayor Pro Tem Harlan spoke on improvements at Brentwood Park, requested an Inclusionary Housing Ordinance update, spoke on the Motel 6 Homekey conversion, and congratulated the El Matador for their 57th anniversary.

Mayor Stephens spoke on attending the Women Making a Difference event in Dana Point honoring Roxy Fyad and Jennifer Friend from Project Hope Alliance, spoke on hosting Nate Robbins on his podcast, spoke on addressing homelessness, and recognized the 10 th anniversary of Trellis.

REPORT – CITY MANAGER – Ms. Farrell Harrison spoke on the first art crawl, provided a homelessness update, spoke on the rental assistance programs available, spoke on a Fair Housing workshop for Spanish speakers on March 23 rd at 5:00 p.m., spoke on a bicycle wayfinding signage project and a public outreach zoom webinar, will follow up on a representative at the Airport Commission meetings, spoke on Project Homekey, spoke on Parks and Recreation Department employment positions available, spoke on an investigation regarding the cat incident and Newport Animal Hospital, and Carol Molina, Finance Director provided an update on the Tennis Center Request For Proposal.

REPORT – CITY ATTORNEY – Ms. Hall Barlow stated that the claim from Mr. Corum regarding a house fire has been dismissed.
141
Minutes – Regular Meeting – March 21, 2023 Page 4 of 12 CONSENT CALENDAR (Items 1-10)
MOVED/SECOND: Council Member Chavez/Mayor Pro Tem Harlan MOTION: Approve recommended actions for consent calendar items 1-10.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: Council Member Gameros recused himself on item 3 the Warrant Resolution due to his wife working at Priceless Pets.

Motion carried: 7-0

1. PROCEDURAL WAIVER: WAIVE THE FULL READING 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: Mario Andrade, Eric Irwin, Jesse Isais, Joe Marchese, Linda Paz, Javier Rodriguez, Lieu Tran.

3. ADOPTION OF WARRANT RESOLUTION
Council Member Gameros recused himself on this item due to his wife working for Priceless Pets.

ACTION:

City Council approved Warrant Resolution No. 2696.

4. MINUTES
ACTION:

City Council approved the Minutes of the Regular meeting of March 7, 2023.

5. INCREASE COMPENSATION TO VINCENT BENJAMIN GROUP, LLC AGREEMENT

FOR TEMPORARY STAFFING SERVICES
ACTION:

1. City Council approved the increase of an additional $100,000 to the Vincent Benjamin Group, LLC agreement and revised language for temporary Citywide staffing services.

2. Authorized the City Manager and City Clerk to accept and execute future amendments to the agreement.
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6. CITY E-MAIL MANAGEMENT POLICY
ACTION:

City Council adopted Resolution No. 2023-04 approving the City E-Mail Management Policy.

7. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,

CALIFORNIA, DECLARING THE TERMINATION OF THE LOCAL STATE OF EMERGENCY DECLARED BY PROCLAMATION 2020-01 AND RATIFIED BY RESOLUTION NO. 2020-09, RESCINDING RESOLUTION NO. 2020-09 AND RESOLUTION NO. 2021-24
ACTION:

City Council adopted Resolution No. 2023-05 to terminate the City’s State of Emergency related to the COVID-19 Pandemic and certain related emergency actions.

8. RESOLUTION AUTHORIZING STREET CLOSURES FOR THE 2023 ORANGE

COUNTY MARATHON RUNNING FESTIVAL
ACTION:

City Council adopted Resolution No. 2023-06, designating event routes for the 2023 Orange County (OC) Marathon Running Festival and approving the temporary street closures for May 6, 2023 and May 7, 2023, as requested for the 2023 OC Marathon Running Festival.

9. AUTHORIZE THE USE OF SOURCEWELL’S NATIONAL COOPERATIVE

AGREEMENT WITH NATIONAL AUTO FLEET FOR THE PURCHASE OF
TWENTY-ONE (21) ALLMAND PORTABLE LIGHT TOWERS
ACTION:

1. City Council authorized the use of Sourcewell’s National Cooperative Agreement No. 091521-NAF with National Auto Fleet Group for the purchase of twenty-one (21) Allmand GR Series portable light towers.

2. Authorized the purchase of twenty-one (21) Allmand GR Series portable light towers for $310,971.15 through National Auto Fleet Group.

10. APPROVAL FOR THE PURCHASE OF AUTOMATIC EXTERNAL DEFIBRILLATORS FOR FIRE DEPARTMENT AND CITY FACILITIES AND PURCHASE OF “X” SERIES

ADVANCED MONITOR /DEFIBRILLATORS
ACTION:

1. City Council authorized the use of GPO NPP contract no. PS20200 with Zoll Medical Corporation for the purchase of thirty-one (31) AEDs for the Fire Department and twenty-four (24) for City Facilities. (Attachment 1)

2. Authorized the use of GPO NPP contract no. PS2022 with Zoll Medical Corporation for the purchase of twelve (12) “X” Series Advanced Monitors/Defibrillators. (Attachment 2)
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3. Approved and authorized the City Manager and City Clerk to execute the necessary documents to purchase the automatic external defibrillators (AED’s) and “X” series monitors/defibrillators.
------------------------------END OF CONSENT CALENDAR------------------------------- PUBLIC HEARINGS: NONE.
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.) OLD BUSINESS: NONE.

City Council recessed into a break at 8:00 p.m.

City Council reconvened at 8:13 p.m.

NEW BUSINESS:

1. ADOPTION OF THE SIDE LETTERS OF AGREEMENT BETWEEN THE CITY OF

COSTA MESA (CITY) AND THE COSTA MESA POLICE MANAGEMENT

ASSOCIATION (CMPMA), THE COSTA MESA FIRE MANAGEMENT ASSOCIATION (CMFMA), THE COSTA MESA FIREFIGHTERS ASSOCIATION (CMFA), ADOPTION

OF ACCOMPANYING SALARY RESOLUTIONS FOR THE CMPMA, CMFMA, CMFA,

COSTA MESA DIVISION MANAGERS ASSOCIATION (CMDMA), EXECUTIVE

EMPLOYEES, AND THE CONFIDENTIAL MANAGEMENT UNIT
Presentation by Ms. Lee, Human Resources Manager.

Public Comments: None.

MOVED/SECOND: Council Member Marr/Council Member Gameros MOTION: Approve recommended actions.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0
ACTION:

1. City Council approved and Adopted the Side Letter of Agreement between the City of Costa Mesa and CMPMA.

2. Approved and Adopted the Side Letter of Agreement between the City of Costa Mesa and CMFMA.
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3. Approved and Adopted the Side Letter of Agreement between the City of Costa Mesa and CMFA.

4. Approved and Adopted Resolution Nos. 2023-07, 2023-08, 2023-09, 2023-10, 2023-11, and 2023-12 revising the pay ranges for CMPMA, CMFMA, CMFA, CMDMA, Unrepresented Executive Employees and the Confidential Management Unit.

5. Approved the Fiscal Impact Analyses.

6. Authorized the City Manager and members of the City’s Negotiation Team to execute the MOU documents and appropriate into the respective departmental budgets.

2. FISCAL YEAR 2022-23 MID-YEAR BUDGET UPDATE AND ADJUSTMENTS

INCLUDING RECOMMENDED STAFFING CHANGES
Presentation by Ms. Molina, Finance Director.

Public Comments: None.

MOVED/SECOND: Council Member Marr/Council Member Chavez MOTION: Approve recommended actions.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0
ACTION:

1. City Council approved FY 2022-23 Budget Carryovers from the prior year in the General Fund and the various Capital Projects Funds for multi-year projects.

2. Approved key staffing changes and compensation adjustments in order to: recruit for and hire certain hard to fill classifications in the Parks and Community Services Department; enhance productivity in the Public Works, Development Services and Information Technology Departments; and create stronger succession plans in the City Manager’s Office and Police Department. a. Approved Resolution No. 2023-13, approving the new classification and salary/pay ranges for a Deputy City Manager and Deputy Police Chief and compensation adjustments for the Assistant City Manager. b. Approved Resolution No. 2023-14, approving new classifications and salary/pay ranges for the Planning and Sustainable Development Manager and a Deputy Director of Public Works.
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Minutes – Regular Meeting – March 21, 2023 Page 8 of 12 c. Approved Resolution No. 2023-15, approving compensation adjustments and title changes for Parks and Community Services classifications and a title change for the Principal Civil Engineer.
d. Approved Resolution No. 2023-16, approving compensation adjustments for Community Services Leaders and Lifeguards.

3. PROFESSIONAL ARCHITECTURAL AND ENGINEERING SERVICES FOR THE DESIGN OF FIRE STATION NO. 4 TRAINING FACILITY
Presentation by Mr. Yang, City Engineer.

Public Comments:

Betina Eastman spoke on considering bird strike through glass.

Speaker, spoke on College Hospital.

MOVED/SECOND: Council Member Gameros/Council Member Chavez MOTION: Approve recommended actions.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0
ACTION:

1. City Council awarded the Professional Services Agreement to PBK Architects, Inc., 8163 Rochester Avenue, Suite 100, Rancho Cucamonga, California, for two years, with three one-year renewal periods, in an amount not to exceed $362,000.

2. Authorized the City Manager and the City Clerk to execute the agreement and any future amendments to the agreement within Council authorized limits. 146
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4. DISCUSSION REGARDING ENVIRONMENTAL INCOMPATIBILITY OF MODEL

AIRCRAFT FLYING FIELD AT FAIRVIEW PARK AND CONSIDERATION OF STAFF’S RECOMMENDATION TO CLOSE THE MODEL AIRCRAFT FLYING FIELD

TO PROTECT SENSITIVE AND RARE SPECIES AND HABITATS AT THE SITE Presentation by Mr. Dalton, Fairview Park Administrator.

Council Member Marr clarified that only allowing gliders is under consideration.

Discussion ensued on impacts to the vernal pools, the difference between motorized aircraft and gliders, the frequency of flyers at the park, tracking measures, shifting the landing space, enforcement strategies, frequency of rangers at the park, nesting season, status of the master plan and timeline, flight operational guidelines, options outside of the park, ideal flying conditions, the number of permits typically issued, permit cost, signage, staff resources, retrieval protocols when a plane falls into a vernal pool, the location of the launch site, and regulatory agencies.

Public Comments:

Kyle Nazeer spoke on considering deterrents and incentives, spoke on the 4th Amendment search and seizure rules, and spoke on encouraging good behavior.

Bill Shaeffer, spoke in support of allowing glider flying.

Speaker on behalf of the Sea and Sage Audubon Society, spoke in support of closing the flying field.

Richard Morley spoke in support of allowing glider flying.

Speaker, spoke on the Police Department.

Jim Hanson, Costa Mesa, spoke in support of allowing glider flying.

Jay Humphrey, Costa Mesa, spoke in support of closing the flying field.

Andy Campbell, Costa Mesa, spoke in support of closing the flying field.

Josh Johnson, Costa Mesa, spoke in support of allowing glider flying.

Annie Younglove, Costa Mesa, spoke on CT programs for high school students, and spoke on benefits and opportunities for students.

Betina Eastman, spoke in support of closing the flying field.

Speaker, spoke in support of allowing glider flying.
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Minutes – Regular Meeting – March 21, 2023 Page 10 of 12 Adam Ereth, Costa Mesa, spoke on Fairview Park being a mixed-use park for passive recreation, spoke on the Orange County Model Engineers long term use in the park, glider flying is an allowable use in Measure AA, and recommended options.

Speaker, spoke in support of allowing glider flying.

Daniel Rossovsky spoke in support of allowing glider flying.

Cassius Rutherford spoke in support of allowing glider flying.

James Robertson spoke in support of allowing glider flying.

Wendy Leece, Costa Mesa, spoke in support of closing the flying field.

Daniel Baume spoke in support of closing the flying field.

Speaker, spoke in support of allowing glider flying.

Cynthia McDonald spoke in support of closing the flying field.

Donald Wittenberg spoke in support of allowing glider flying.

Kevin Cook spoke in support of allowing glider flying.

Jim Erickson, Costa Mesa, spoke in support of allowing glider flying.

Mike Costello spoke in support of allowing glider flying.

Henry Smith spoke in support of allowing glider flying.

Speaker, spoke in support of allowing glider flying.

Speaker, spoke on Measure AA, spoke in support of allowing glider flying, and that the item should go to a vote of the people.

Cynthia D’Agosta spoke in support of closing the flying field.

Puneet Singh spoke in support of allowing glider flying.

John Rittenhouse spoke in support of allowing glider flying.

Hank Castignetti spoke in support of closing the flying field. 148
Minutes – Regular Meeting – March 21, 2023 Page 11 of 12 Discussion ensued on scientific data on harmful effect on species, degradation to the vernal pools and habitat due to encroachment, data on endangered species thriving during the shutdown, revisiting the compatibility study and recommendations to Council from the Fairview Park Steering Committee and the Parks and Community Services Commission, any notice of violations from regulatory agencies and compliance issues, a 2019 correspondence from the U.S. Department of Fish and Wildlife Service regarding endangered species and a series of recommendations, and conservation easements and mitigation agreements.

MOVED/SECOND: Council Member Reynolds/Council Member Marr MOTION: Continue the item to the April 18, 2023 City Council meeting.

Council Member Reynolds spoke to the motion which will allow time to review new information and conflicting information, review impacts and consequences, spoke on the Fairview Park Master Plan Update that will be a comprehensive update, and to explore alternative solutions and impacts.

The Council clarified public comments will be allowed at the April 18th meeting.

Council Member Marr spoke to the motion that there is time to postpone to address issues and additional questions, reviewing what the Master Plan allows, and forming a compromise.

Mayor Stephens requested any excerpts from the Master Plan pertaining to the flyfield and would like to see contracts or wording in the contracts that are a potential risk.

Council Member Gameros spoke on an operating model like the Orange County Model Engineers.

Council Member Chavez spoke on waiting to make a decision until after the Fairview Park Master Plan Update is completed.

Council Member Harper stated that Fairview Park is not a nature reserve and suggested special enforcement during the busiest flying times.

MOVED/SECOND: Council Member Reynolds/Council Member Marr MOTION: Continue the item to be heard at the April 18, 2023 City Council meeting.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0
ACTION:

City Council continued the item to be heard at the April 18, 2023 City Council meeting. 149
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ADDITIONAL COUNCIL/BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS – NONE.

ADJOURNMENT –The Mayor adjourned the meeting at 11:46 p.m. in memory of Huy Pham.

Minutes adopted on this 2nd day of May, 2023.
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
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REGULAR CITY COUNCIL AND SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY*
APRIL 4, 2023 – 6:00 P.M. - MINUTES
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 Gameros, Council Member Harper, Council Member Marr (arrived at 4:15 p.m.) Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

PUBLIC COMMENTS – NONE.

CLOSED SESSION ITEMS:

1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - ONE CASE Pursuant to California Government Code Section 54956.9 (d)(2)

2. THREAT TO SECURITY
Pursuant to California Government Code Section 54957(a) Consultation with: Costa Mesa Director of Emergency Services, City Manager, Police Chief, Fire Chief.

3. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to California Government Code Section 54957, (b)(1) Title: City Manager

4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: Yellowstone Women’s First Step House, Inc., and Sober Living Network, Inc. v. City of Costa Mesa, United States District Court, Central District of California, Case No. SACV14-01852 JVS.

Ms. Hall Barlow, City Attorney, removed item number 1 from the closed session agenda and requested to add one item relating to the national opioid litigation. This was brought to the attention of the City after the agenda had been posted and needed to be considered prior to the next regularly scheduled meeting.
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MOVED/SECOND: Mayor Stephens/ Council Member Chavez
MOTION: Approve adding the additional item relating to the national opioid litigation to the closed session agenda. Pursuant to California Government Code Section 54956.9 (d)(1) Existing Litigation.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: Council Member Marr.

Abstain: None.

Motion carried: 6-0
City Council recessed at 4:03 p.m. for Closed Session.

Closed Session adjourned at 5:50 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 Mayor Stephens led the Pledge of Allegiance.

MOMENT OF SOLEMN EXPRESSION - Led by Pastor David Manne.

ROLL CALL

Present: Council Member Chavez, Council Member Gameros, Council Member Harper (left at 10:40 p.m.), Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

CITY ATTORNEY CLOSED SESSION REPORT – Ms. Hall Barlow stated that the City Council voted to participate in the settlements with Teva, Walgreens, CVS, Walmart, and Allergan in regard to the national opioid litigation by the following vote:

MOVED/SECOND: Council Member Chavez/Council Member Marr MOTION: Approve participating the national opioid litigation.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0
PRESENTATIONS:

Mayor Stephens recognized the Orange Coast College Women’s Basketball Team CCCAA State Champion.
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Mayor Stephens presented a proclamation to Dan Stefano, Costa Mesa Fire Chief, in recognition of 2023 National Public Safety Telecommunications Week.

Mayor Stephens presented a proclamation to Jennifer Friend, Chief Executive Officer of Project Hope Alliance, in recognition of 2023 National Community Development Week.

PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Speaker, recognized Council Member Marr on her new titles, achievements, and positions.

Speaker, expressed concern about cameras/license plate readers on traffic lights, and spoke against cameras at every intersection.

Kim Hendricks spoke on Fairview Nature Park and the fly field.

Len Redmond, spoke on Fairview Park, overgrown plants, problems with electric bikes, and recognized 911 responders.

Speaker, spoke on problems with electric bikes at Fairview Park, and on the speed humps on Royal Palm Drive.

Juana Trejo, requested information on Paularino Ave. improvements, spoke on landlords continuing to raise rents, invited the City Council to visit District 3, spoke on overcrowding in apartments, spoke on hope for low income communities, and fears of being evicted.

Jenn Tanaka, congratulated Council Member Marr on her new doctorate degree, spoke on the rental assistance program, and spoke on an inclusionary housing policy.

Wendy Leece spoke on the restoration and preservation of Fairview Park, and compliance with federal regulations.

Sue Lester, representing the Wetlands and Wildlife Care Center in Huntington Beach, requested Costa Mesa contribute to the non-profit center.

Speaker, spoke on the bus stops on Wilson, Harbor, and Placentia, spoke on having compassion for the homeless people, spoke on people that need rental assistance and the barriers to applying.

Leticia Ortiz spoke on having three jobs to pay the rent and to eat, spoke on a place next to McDonalds on 19th Street and requested a police presence due to potential drugs, spoke on monitoring local businesses that sell drugs.

Speaker, spoke on protecting Fairview Park, and is opposed to the flyers.

Cynthia McDonald, Costa Mesa, spoke on the State proposed Emergency Operations Center at Fairview Developmental Center, and the Environmental Impact Report, inquired if the City will submit formal comments, and spoke on an Inclusionary Housing Ordinance.

Speaker, spoke on preserving Fairview Park.
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Hank Castignetti spoke on April 15 th and 16 th are free train ride days, spoke on preserving Fairview Park, and requested thoughts and prayers for Dr. Mehren who is very ill.

Debby Koken, Fairview Park Alliance, spoke on a restoration event at Fairview Park on Saturday at 9:00 a.m. for removing non-native plants.

COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Council Member Reynolds acknowledged community members, spoke on the proposed Emergency Operations Center and the City preparing a formal response, spoke on the cost of living, spoke on food insecurity and resources available, spoke on addressing homelessness, spoke on speeding and safe streets, spoke on an event on April 29 th for bike helmet fitting, on May 27th Estancia High School is hosting a bike event with free helmets and safety education for e-bikes, spoke on attending an event with Council Member Marr regarding careers in engineering, and thanked Kelly Dalton for the Fairview Park vernal pool tour.

Council Member Chavez thanked first responders, welcomed students attending the meeting, thanked the Spanish speaking community for continuing to address the issues and raising concerns, attended a community outreach meeting at Northgate Market with Council Member Gameros, thanked all involved with the Bike Rodeo, spoke on the Joann Street bike trail encampments and graffiti, and congratulated the Estancia Eagles baseball team for winning the Battle of the Bell.

Council Member Gameros spoke on Springfest at Lions Park on Saturday, attending the Northgate community event and the bike rodeo, requested the status of opening the Luke Davis field.

Council Member Harper spoke on Driving While Distracted month and shared a video.

Council Member Marr spoke on an annual ride along with the Police Department, spoke on attending the women in engineering event, spoke on learning about barriers to rental assistance, wished everyone a Happy Easter, and offered prayers to Dr. Mehren and family.

Mayor Pro Tem Harlan spoke on a Daisy Troop visiting City Hall, congratulated Dr. Marr, and wished everyone a Happy Passover and Happy Easter.

Mayor Stephens requested staff to follow up on the Wildlife Center donation, wished everyone a Happy Easter and Holy Week, spoke on the good street conditions in Costa Mesa, spoke on the Flock cameras article in the LA Times, spoke on the City resource guide, praised Dr.

Mehren, congratulated Dr. Marr, and spoke in memory of Henry Segerstrom on his 100th birthday.

REPORT – CITY MANAGER – Ms. Farrell Harrison, spoke on the proposed State and Regional Operations Center at the Fairview Developmental Center site and the City providing a formal response, spoke on celebrating Earth Day on April 22 nd, Spring Fest on April 8 th, congratulated Dr. Marr, and wished all a Happy Easter, Passover, and Ramadan.

REPORT – CITY ATTORNEY – Ms. Hall Barlow, congratulated Dr. Marr on her achievement. 154
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CONSENT CALENDAR (Items 1-5)
MOVED/SECOND: Mayor Pro Tem Harlan/ Council Member Chavez MOTION: Approve recommended actions for consent calendar items 1-5 except for item No. 4.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: Council Member Gameros recused himself on item 3 the Warrant Resolution due to his wife working at Priceless Pets.

Motion carried: 7-0

1. PROCEDURAL WAIVER: WAIVE THE FULL READING 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: Mercury Insurance Company (Robert Wilson), Austen Kelekian, Lili Mayer, Tien Nguyen, Gerardo Quintana, Nathan Rivera, Deborah Wilkinson.

3. WARRANT RESOLUTION
Council Member Gameros recused himself on this item due to his wife working at Priceless Pets.

ACTION:

City Council approved Warrant Resolution No. 2697.

5. THIRD PARTY WORKERS’ COMPENSATION CLAIMS ADMINISTRATION

SERVICES
ACTION:

1. City Council awarded the contract for Third Party Workers Compensation Claims Administration Services per Request for Proposal (RFP) to AdminSure, Inc.

2. Authorized the City Manager and City Clerk to execute the five (5) year Professional Services Agreement for the contract.
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ITEMS PULLED FROM THE CONSENT CALENDAR

4. A RESOLUTION RECOGNIZING AND DECLARING JUNE 19 OF EACH YEAR AS A

PAID CITY HOLIDAY IN OBSERVANCE OF JUNETEENTH
Council Member Harper spoke on the financial impacts and that the financial analysis should provide all the costs, stated the item should not have been placed on consent calendar, and on the total number of holidays employees receive.

Public Comments:

Speaker, spoke on June 19 th being a Federal and State holiday, and the City of Los Angeles recognizing June 19th.

Andrew Barnes spoke on the financial impacts and the financial analysis providing all the costs.

MOVED/SECOND: Council Member Marr/Council Member Reynolds MOTION: Approve recommended actions.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: Council Member Harper.

Absent: None.

Abstain: None.

Motion carried: 6-1
ACTION:

City Council adopted Resolution No. 2023-17 declaring Juneteenth as a City holiday. ---------------------------------------END OF CONSENT CALENDAR---------------------------------------- PUBLIC HEARINGS: NONE.
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.) OLD BUSINESS: NONE.

City Council recessed into a break at 7:58 p.m.

City Council reconvened at 8:13 p.m.
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NEW BUSINESS:

1. THE COSTA MESA LOCAL HAZARD MITIGATION PLAN
Presentation by Ms. Emrick, Acting Emergency Services Manager.

Public Comments: None.

MOVED/SECOND: Mayor Stephens/Council Member Chavez
MOTION: Approve recommended actions.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: None.

Abstain: None.

Motion carried: 7-0
ACTION:

City Council adopted Resolution No. 2023-18 to approve the City of Costa Mesa’s Local Hazard Mitigation Plan.

2. REVIEW OF CITY COMMITTEES
Presentation by Ms. Farrell Harrison, City Manager and Ms. Green, City Clerk.

Public Comments:

Ralph Taboada spoke on a lack of communication with committee members, different points of view regarding the creation of ad hoc Committees, the subcommittees do not utilize staff time, and spoke on the work being done in the subcommittees.

Speaker, spoke on the committee structure and standards, staff time, and Council Members evaluating committees.

Cynthia McDonald spoke on volunteers that want to participate, spoke on City Council attending meetings, committee work plans, and spoke on the purpose of ad hoc Committees.

Speaker, spoke on participating at meetings and is opposed to decreasing committee membership.

Speaker, spoke in opposition to the recommended changes, and spoke on reviewing the work plans and schedules for each committee.

Speaker, spoke on voting to receive and file, citizen involvement, keeping FiPAC meetings monthly, and on ad hoc Committees compliance with the Brown Act. 157
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Speaker, spoke on the purpose of the committees, City Council input from the committees, the number of committee members, time limits, community input, and is in support of committee meetings via zoom.

Andrew Barnes spoke on the Brown Act, not decreasing public involvement and transparency, spoke on decreasing the number of staff that attend meetings, and in support of additional funding for staff.

MOVED/SECOND: Mayor Stephens/Council Member Gameros
MOTION: Continue the item to the July 18, 2023 to allow time for the City Council to review the committees purpose, scope, and duties.

Discussion ensued on scope of work, statement of purpose, staffing impacts, frequency of meetings, the number of ad hoc committees, and a process for addressing concerns.

Council Member Chavez spoke in opposition of the motion.

MOVED/SECOND: Mayor Stephens/Council Member Gameros
MOTION: Continue the item to the July 18, 2023 to allow time for the City Council to review the committees purpose, scope, and duties.

The motion carried by the following roll call vote:

Ayes: Council Member Gameros, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: Council Member Chavez.

Absent: Council Member Harper.

Abstain: None.

Motion carried: 5-1-1
ACTION:

City Council continued the item to the July 18, 2023 to allow time for the City Council to review the committees purpose, scope, and duties.
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3. LICENSE AGREEMENT WITH THE COSTA MESA-NEWPORT HARBOR LIONS CLUB
Presentation by Mr. Stoddart, Recreation Supervisor.

Public Comments:

Speaker, spoke on the 76 th Fish Fry in City, is looking forward to working with the City, and the money goes back into the community.

MOVED/SECOND: Council Member Reynolds/Council Member Marr MOTION: Approve recommended actions.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.

Absent: Council Member Harper.

Abstain: None.

Motion carried: 6-0-1
ACTION:

1. City Council approved the license agreement between the City of Costa Mesa and the Costa Mesa-Newport Harbor Lions Club to host the annual Fish Fry event at the Lions Park Campus beginning in 2023.

2. Authorized the City Manager and City Clerk to execute the agreement and all future amendments to the agreement.

ADDITIONAL COUNCIL/BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS – NONE.

ADJOURNMENT – The Mayor adjourned the meeting at 10:57 p.m. in memory of Henry Segerstrom’s 100th birthday.
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___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
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Minutes – Study Session – April 11, 2023 Page 1 of 4

CITY OF COSTA MESA

STUDY SESSION MEETING OF THE CITY COUNCIL
APRIL 11, 2023 – 5:00 P.M. MINUTES
CALL TO ORDER – The Study Session meeting was called to order by Mayor Stephens at 5:01 p.m.

PLEDGE OF ALLEGIANCE – Led by the Mayor.

ROLL CALL

Present: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

PUBLIC COMMENTS:

Speaker, spoke in support of Active Transportation Plan projects.

Speaker, spoke in support of Brentwood Park Improvements.

Speaker, spoke in support of improvements at the Tennis Center and LED lighting, the skate park, Active Transportation Committee projects, and spoke on funding for projects on Adams Ave.

Speaker, spoke in support of the Brentwood Park improvements.

Speaker, spoke in support of the Brentwood Park improvements, and requested ADA compliant benches and access.

Speaker, spoke in support of the Brentwood Park improvements.

Andy Campbell spoke in support of the budget for Fairview Park, and spoke on reconsidering the pump station recirculation project.

Speaker, spoke in support of the Brentwood Park improvements.

Speaker, spoke in support of the Brentwood Park improvements.

Katie Crawford spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion.
161
Minutes – Study Session – April 11, 2023 Page 2 of 4
Lynn Toohey spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion.

Marisa Swain spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion.

Cynthia McDonald spoke in support of the recommendations from the Active Transportation Committee, spoke on putting bike racks next to facilities, and spoke in support of the tennis center upgrades.

Jacqueline Dresow spoke in support of the Brentwood Park improvements.

Bob Torribio spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion.

Susan Theran spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion.

Speaker spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion, spoke on lawn maintenance being cut too low, and grading hills.

James Wright spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion, and spoke on the lawn maintenance.

Mariah McDaniel spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion, spoke on the lawn maintenance, and home values.

Emily Cohen spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion.

Jon Crawford spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion, and expressed concern on parking.

Speaker, spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion, and requested more community input on the improvements.

Mike & Rosi spoke in support of the playground improvements at Brentwood Park, but are opposed to any expansion, and supports green space.

Speaker, spoke in support of the playground improvements at Brentwood Park, but is opposed to any expansion, and requested community input on the improvements. 162
Minutes – Study Session – April 11, 2023 Page 3 of 4
NEW BUSINESS:

1. FISCAL YEAR 2023-24 PROPOSED CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET AND FIVE-YEAR (2023-24 TO 2027-28) CIP STUDY SESSION Presentation by Mr. Sethuraman, Public Works Director,
The City Council provided feedback and general direction on the Fiscal Year (FY) 2023-24 Proposed Capital Improvement Program (CIP) Budget and the Five-Year (FY 2023-24 to FY 2027-28) CIP.

ADJOURNMENT – The Mayor adjourned the meeting at 7:11 p.m. in memory of the USS Thresher.

Minutes adopted on this 2nd day of May, 2023.
163
Minutes – Study Session – April 11, 2023 Page 4 of 4
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
164

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1166 Meeting Date: 5/2/2023
TITLE:

BUSINESS IMPROVEMENT AREA (BIA) REAUTHORIZATION, RESOLUTION OF INTENTION,

AND REVIEW OF ANNUAL REPORT
DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: ALMA REYES, DEPUTY CITY MANAGER
CONTACT INFORMATION: ALMA REYES, DEPUTY CITY MANAGER, (714) 754-5090 RECOMMENDATION:

Staff recommends the City Council:

1. Approve the 2022-2023 Annual Report for the Business Improvement Area (BIA) (Attachment 1).

2. Receive and file the audited financial report for Fiscal Years Ended June 30, 2021 and June 30, 2022 (Attachment 2).

3. Adopt the Resolution declaring the City’s intention to levy an annual assessment for Fiscal Year 2023-24 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

165
File #: 23-1166 Meeting Date: 5/2/2023
Council, and the City Manager’s designee.

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- percent (99%) of the special 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 6, 2023, 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 Ended June 30, 2021 and June 30, 2022 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 2022-2023 Fiscal Year
Travel Costa Mesa continues its dedication to showcasing the City of Costa Mesa as the City of the Arts and further enhancing the City’s brand as a premier destination in Orange County. The celebration of the City’smost anticipated opening of the decade, the Orange County Museum of Art (OCMA), was one of the year’s highlights. In addition, TCM continued an “always-on”marketing

166
File #: 23-1166 Meeting Date: 5/2/2023
(OCMA), was one of the year’s highlights. In addition, TCM continued an “always-on”marketing strategy in 2022-23, mixing brand awareness campaigns with promotions to help increase hotel occupancy during times of need. Website traffic increase, with new website users increased by

28.8% and page views increased by 27.8%. Successful campaigns included the Create Your Escape Close to Home, Road Trip, What If, What Will You See Next in Costa Mesa, and other sub- campaigns.

Leisure travel during the summer was substantial due to continued pent-up demand and group business travel was on an upward trajectory. Overall occupancy grew 7% and average daily rate grew 22% compared to 2021. Compared to 2019 levels, the overall weekend occupancy segment was 81.1%, almost fully recovered, and the transient weekday occupancy segment was 47.5% of the overall business, down only one percentage point. The weekday contract occupancy segment was 7%, approximately half of what it was in 2019. However, Costa Mesa’sweekday group segment exceeded 2019 numbers by 2%. TCM pursued group sales success by attending 12 industry trade shows in FY 2022-23, with 254 leads generated and 73,899 lead room nights of these leads generated.

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, 2022 totaled $2,599,536. Based on the 2022-23 annual report, TCM is forecasting $2.9 million in revenues for the current fiscal year, a 121% increase from the prior fiscal year. As of February 2023, BIA revenues were at $2.1 million.

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 $29,000 for the 2022-23 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.

This budget 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. Although the TCM community event funds were not available during FY 2020-21 and FY 2021-22, the City intends to resume all special community events and marketing efforts to pre-pandemic levels and reinstate the TCM funding in FY 2023-24.

LEGAL REVIEW:

The City Attorney’sOffice reviewed this report, and has reviewed and approved the resolution as to form.

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File #: 23-1166 Meeting Date: 5/2/2023
CITY COUNCIL GOALS AND PRIORITIES:

This item supports the City Council’scontinuous 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 6, 2023; 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 2022-23 Annual Report for the Business Improvement Area (BIA) (Attachment 1).

2. Receive and file audited financial report for Fiscal Years Ended June 30, 2021 and June 30, 2022 (Attachment 2).

3. Adopt Resolution 23-xx, declaring the City’sintention to levy an annual assessment for Fiscal Year 2023-24 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).

168
2022/23 ANNUAL REPORT
169
3// TRAVEL COSTA MESA //
TABLE OF CONTENTS 4 President’s Message
6 Funding Source
8 Lodging/Hotel Partners
10 Travel Sentiment
12 U.S. Travel Association
14 Visit California
18 Marketing
24 PR & Media Coverage
28 Group Sales
31 Travel Costa Mesa Leadership
170
3// TRAVEL COSTA MESA //
TABLE OF CONTENTS 4 President’s Message
6 Funding Source
8 Lodging/Hotel Partners
10 Travel Sentiment
12 U.S. Travel Association
14 Visit California
18 Marketing
24 PR & Media Coverage
28 Group Sales
31 Travel Costa Mesa Leadership
171
4 5// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

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.

KEY

OBJECTIVE
Increase brand awareness for the
city of Costa Mesa as a desirable,
overnight, leisure Orange County
destination.

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.

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.

PRESIDENT’S

MESSAGE
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.

THE aura of how Travel Costa Mesa (TCM)
began the new fiscal year was rooted in
optimism. Travel from a leisure perspective
was robust as we entered into summer
with continued pent-up demand and group
business travel was on an upward trajectory.

The celebration of the city’s most anticipated
opening of the decade, the Orange County
Museum of Art (OCMA), was the catalyst for
a first-ever “Arts You’ll Fall For” marketing
campaign. In February 2023, TCM launched
“What Will You See Next, ” a new branding
campaign designed to inspire and excite
travelers to visit the City of the Arts
®.

TCM’s marketing efforts focused on the drive
market—a radius of consumers within a few
hours of the city—and that aim will continue.

Content creators injected travel inspiration
into arts and culture, dining, and shopping
niches. Summer and holiday co-ops with
Visit California (VCA), the state’s destination
marketing organization, were also launched, as
was an inspiring new meeting guide for event
planners. New group business opportunities
continued to grow as the organization’s
destination sales executive completed a dozen
in-person trade shows.

U.S. Travel Association, the national, non-profit
organization representing all components
of the travel industry, focused on restoring
international inbound travel, meetings, events,
and business travel, facilitating opportunities
for the industry to work together and address
industry issues.

Visit California’s core objectives included
cultivating the California brand while
triggering engagement, active consideration,
and drive-market development. Its focus
centered around restoring travel spending by
increasing domestic leisure travel, professional
meetings and events, international visitation,
and urban tourism. This fiscal year, VCA
received $15 million in marketing funds from

OUR VISION WILL BE

GUIDED BY CREATIVITY,

CONSUMER TRENDS,

AND BEST PRACTICES

THAT KEEPS VISITORS

WONDERING WHAT
THEY WILL SEE NEXT.
the state to continue to support the ongoing recovery
of California’s tourism economy. Domestic tourism
marketing programs targeted to increase travel to
destinations within the state were supplemented with
these funds.

As 2022 came to an end, occupancy for the
country grew to 62.7 percent, up over eight
percent compared to the previous year. California
outperformed the country with an occupancy of

67.5 percent, up over 10 percent compared to the
previous year. Hotel average daily rates increased
19 percent across the country and 21 percent
in California. As 2023 progresses, U.S. Travel
Association is forecasting a slight softening of leisure travel demand compared to 2022. However, business
travel and pent-up demand for meetings, events,
conventions, and tradeshows is expected to increase
in 2023.

TCM’s priority is to support the travel and tourism
industry for its partners. Our efforts are focused
on increasing brand awareness for Costa Mesa,
marketing the city as a desirable, overnight Orange
County destination for both leisure and group
business. As we plan for the upcoming fiscal year, our
vision will be guided by creativity, consumer trends,
and best practices that keeps visitors wondering what
they will see next.

Paulette Lombardi-Fries

PRESIDENT, TRAVEL COSTA MESA
172
4 5// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

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.

KEY

OBJECTIVE
Increase brand awareness for the
city of Costa Mesa as a desirable,
overnight, leisure Orange County
destination.

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.

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.

PRESIDENT’S

MESSAGE
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.

THE aura of how Travel Costa Mesa (TCM)
began the new fiscal year was rooted in
optimism. Travel from a leisure perspective
was robust as we entered into summer
with continued pent-up demand and group
business travel was on an upward trajectory.

The celebration of the city’s most anticipated
opening of the decade, the Orange County
Museum of Art (OCMA), was the catalyst for
a first-ever “Arts You’ll Fall For” marketing
campaign. In February 2023, TCM launched
“What Will You See Next, ” a new branding
campaign designed to inspire and excite
travelers to visit the City of the Arts®.

TCM’s marketing efforts focused on the drive
market—a radius of consumers within a few
hours of the city—and that aim will continue.

Content creators injected travel inspiration
into arts and culture, dining, and shopping
niches. Summer and holiday co-ops with
Visit California (VCA), the state’s destination
marketing organization, were also launched, as
was an inspiring new meeting guide for event
planners. New group business opportunities
continued to grow as the organization’s
destination sales executive completed a dozen
in-person trade shows.

U.S. Travel Association, the national, non-profit
organization representing all components
of the travel industry, focused on restoring
international inbound travel, meetings, events,
and business travel, facilitating opportunities
for the industry to work together and address
industry issues.

Visit California’s core objectives included
cultivating the California brand while
triggering engagement, active consideration,
and drive-market development. Its focus
centered around restoring travel spending by
increasing domestic leisure travel, professional
meetings and events, international visitation,
and urban tourism. This fiscal year, VCA
received $15 million in marketing funds from

OUR VISION WILL BE

GUIDED BY CREATIVITY,

CONSUMER TRENDS,

AND BEST PRACTICES

THAT KEEPS VISITORS

WONDERING WHAT
THEY WILL SEE NEXT.
the state to continue to support the ongoing recovery
of California’s tourism economy. Domestic tourism
marketing programs targeted to increase travel to
destinations within the state were supplemented with
these funds.

As 2022 came to an end, occupancy for the
country grew to 62.7 percent, up over eight
percent compared to the previous year. California
outperformed the country with an occupancy of

67.5 percent, up over 10 percent compared to the
previous year. Hotel average daily rates increased
19 percent across the country and 21 percent
in California. As 2023 progresses, U.S. Travel
Association is forecasting a slight softening of leisure travel demand compared to 2022. However, business
travel and pent-up demand for meetings, events,
conventions, and tradeshows is expected to increase
in 2023.

TCM’s priority is to support the travel and tourism
industry for its partners. Our efforts are focused
on increasing brand awareness for Costa Mesa,
marketing the city as a desirable, overnight Orange
County destination for both leisure and group
business. As we plan for the upcoming fiscal year, our
vision will be guided by creativity, consumer trends,
and best practices that keeps visitors wondering what
they will see next.

Paulette Lombardi-Fries

PRESIDENT, TRAVEL COSTA MESA
173
6 7// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // PRIMARY EXPENSES (FY 2022-23 PROJECTIONS)BIA REVENUE
3500
3000
2500
2000
1500
1000

0.500

0.000
Business Improvement Area (BIA)
Assessment
Travel Costa Mesa (TCM) is entirely funded
through the City of Costa Mesa’s Business
Improvement Area (BIA) assessment. Each
of the 11 Costa Mesa partner hotels listed
in this annual report collects a 3% levy from
overnight hotel guests (2,375 total available
rooms). All of the Transient Occupancy T ax
(TOT) that the City collects goes into its
general fund.

Business owners shall pay the BIA 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 should contact the City and TCM.

This is a voluntary program for hotel partners.

TCM forecasts BIA revenue to reach $2.9M
for fiscal year (FY) 2022-23, a +121% year-
over-year (YOY). As of February 2023, BIA
funds are at $2.1M.
$972K
/parenleft.case/hyphen.case/five.osf/eight.osf% YOY/parenright.case FY 2020-21 FY 2021-22 FY 2022-23
$2.3M
/parenleft.case+/one.osf/three.osf/seven.osf% YOY/parenright.case $2.9M
/parenleft.case+/one.osf/two.osf/one.osf% YOY/parenright.case

MARKETING
53%

ADMINISTRATIVE
7%

EMPLOYEE
32%
SALES
8%

FUNDING
SOURCE
100%
$
of TCM’s funding
comes from BIA
In addition to the above primary expenses, $476K in existing reserves will be used for hotel marketing funds.
174
6 7// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // PRIMARY EXPENSES (FY 2022-23 PROJECTIONS)BIA REVENUE
3500
3000
2500
2000
1500
1000

0.500

0.000
Business Improvement Area (BIA)
Assessment
Travel Costa Mesa (TCM) is entirely funded
through the City of Costa Mesa’s Business
Improvement Area (BIA) assessment. Each
of the 11 Costa Mesa partner hotels listed
in this annual report collects a 3% levy from
overnight hotel guests (2,375 total available
rooms). All of the Transient Occupancy T ax
(TOT) that the City collects goes into its
general fund.

Business owners shall pay the BIA 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 should contact the City and TCM.

This is a voluntary program for hotel partners.

TCM forecasts BIA revenue to reach $2.9M
for fiscal year (FY) 2022-23, a +121% year-
over-year (YOY). As of February 2023, BIA
funds are at $2.1M.
$972K
/parenleft.case/hyphen.case/five.osf/eight.osf% YOY/parenright.case FY 2020-21 FY 2021-22 FY 2022-23
$2.3M
/parenleft.case+/one.osf/three.osf/seven.osf% YOY/parenright.case $2.9M
/parenleft.case+/one.osf/two.osf/one.osf% YOY/parenright.case

MARKETING
53%

ADMINISTRATIVE
7%

EMPLOYEE
32%
SALES
8%

FUNDING
SOURCE
100%
$
of TCM’s funding
comes from BIA
In addition to the above primary expenses, $476K in existing reserves will be used for hotel marketing funds.
175
8 9// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // Avenue of the Arts Costa Mesa, A Tribute Portfolio Hotel Rosanna Inc. Rosanna Inc. 3350 Avenue of the Arts 3350 Avenue of the Arts 3350 Avenue of the Arts Costa Mesa, CA 92626 Costa Mesa, CA 92626 Costa Mesa, CA 92626 Ayres Hotel Costa Mesa Newport Country Inn & Suites, Inc. Newport Country Inn & Suites, Inc. 325 Bristol St. 355 Bristol St., Ste. A 355 Bristol St., Ste. A Costa Mesa, CA 92626 Costa Mesa, CA 92626 Costa Mesa, CA 92626 Best Western Plus Newport Mesa Inn James Hsuen & Shang-Pu Lee James Hsuen & Shang-Pu Lee 2642 Newport Blvd. 2642 Newport Blvd. 2642 Newport Blvd.

Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa, CA 92627 Crowne Plaza Costa Mesa Orange County Brighton Management Bright Bristol Street, LLC 3131 Bristol St. 20342 SW Acacia St. 3131 Bristol St.

Costa Mesa, CA 92626 Newport Beach, CA 92660 Costa Mesa, CA 92626 Hilton Orange County/Costa Mesa Ashford TRS CM LLC Remington Lodging & Hospitality LP 3050 Bristol St. 14185 Dallas Pkwy, Ste. 1100 14185 Dallas Pkwy, Ste. 1100 Costa Mesa, CA 92626 Dallas, TX 75254 Dallas, TX 75254
Holiday Inn Express & Suites Costa Mesa Narendra B. Patel Narendra B. Patel 2070 Newport Blvd. 2070 Newport Blvd. 2070 Newport Blvd.

Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa Marriott HEI Hotels & Resorts Starwood Capital Group 500 Anton Blvd. 101 Merritt 7 Corporate Park, 1st Fl. 591 W. Putnam Ave.

Costa Mesa, CA 92626 Greenwich, CT 06830 Greenwich, CT 06830 OC Hotel Costa Mesa SAI KSP INC. Sanjay Panchal
2430 Newport Blvd. 11556 Manchester Way 11556 Manchester Way Costa Mesa, CA 92627 Porter Ranch, CA 91326 Porter Ranch, CA 91326 Ramada by Wyndham Costa Mesa/Newport Beach B.D. Inn Inc./Ramada Ltd. B.D. Inn Inc./Ramada Ltd. 1680 Superior Ave. 1680 Superior Ave. 1680 Superior Ave.

Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa, CA 92627 Residence Inn by Marriott Costa Mesa Newport Beach Marriott International BRE Select Hotels & Resorts 881 Baker St. 10400 Fernwood Rd. 6201 15th Ave.

Costa Mesa, CA 92626 Bethesda, MD 20817 Brooklyn, NY 11219 The Westin South Coast Plaza Host Hotels & Resorts Secon Properties 686 Anton Blvd. 6903 Rockledge Dr., Ste. 1500 3315 Fairview Rd.

Costa Mesa, CA 92626 Bethesda, MD 20817 Costa Mesa, CA 92626 LODGING + ADDRESS B USINESS OWNER PROPERTY OWNER
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
$200
$190
$180
$170
$160
$150
$140
$130
$120
$110
$100
Hotel Inventory Update
Orange County continues to draw investors and capital into the area with extensive renovations. Highlights include:
• Pendry Newport Beach (replacing Fashion Island
Hotel) is expected to welcome guests in summer
2023. The high-end hotel will have 295 rooms, 82
suites, and a wellness spa.
• The Irvine Company sold Hotel Irvine to Hyatt and
will undergo an extensive renovation that will include
541 guest rooms. Anticipated opening date is fall
2023.
• Element Irvine opened in July of 2022 with 124
rooms.
• Residence Inn by Marriott Anaheim Brea completed
their new build with 138 suites.

Hilton Orange County/Costa Mesa Ayres Hote Costa Mesal The Westin South Coast Plaza, Costa Mesa

LODGING/ HOTEL

PARTNERS
Looking Forward With Positive Results
Costa Mesa, like many other Orange County cities, saw performance metrics increase in calendar year 2022 as leisure pent up demand grew during the pandemic.
• Overall occupancy grew +7% and average daily rate grew +22% compared to 2021.
• Compared to 2019 levels, the overall weekend occupancy segment was

81.1%, almost fully recovered, and the transient weekday occupancy segment was 47.5% of the overall business, down only one percentage point. • The weekday contract occupancy segment was +7%, approximately half of what it was in 2019. However, Costa Mesa’s weekday group segment exceeded 2019 numbers by 2%.

In 2023, weekday group and transient demand is expected to grow modestly.

TCM HOTEL PARTNERS
In 2022, Orange County hotels ($201 ADR, 71.3% occupancy) outpaced California hotels ($187 ADR, 67.5% occupancy) and U.S. hotels ($149 ADR, 62.7% occupancy).

OCCUPANCY AVERAGE DAILY RATE (ADR)
2019 2020 2021 2022 2019 2020 2021 2022

78.8%
$147

42.3%
$127

58.5%
$136
73%
$166
176
8 9// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // Avenue of the Arts Costa Mesa, A Tribute Portfolio Hotel Rosanna Inc. Rosanna Inc. 3350 Avenue of the Arts 3350 Avenue of the Arts 3350 Avenue of the Arts Costa Mesa, CA 92626 Costa Mesa, CA 92626 Costa Mesa, CA 92626 Ayres Hotel Costa Mesa Newport Country Inn & Suites, Inc. Newport Country Inn & Suites, Inc. 325 Bristol St. 355 Bristol St., Ste. A 355 Bristol St., Ste. A Costa Mesa, CA 92626 Costa Mesa, CA 92626 Costa Mesa, CA 92626 Best Western Plus Newport Mesa Inn James Hsuen & Shang-Pu Lee James Hsuen & Shang-Pu Lee 2642 Newport Blvd. 2642 Newport Blvd. 2642 Newport Blvd.

Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa, CA 92627 Crowne Plaza Costa Mesa Orange County Brighton Management Bright Bristol Street, LLC 3131 Bristol St. 20342 SW Acacia St. 3131 Bristol St.

Costa Mesa, CA 92626 Newport Beach, CA 92660 Costa Mesa, CA 92626 Hilton Orange County/Costa Mesa Ashford TRS CM LLC Remington Lodging & Hospitality LP 3050 Bristol St. 14185 Dallas Pkwy, Ste. 1100 14185 Dallas Pkwy, Ste. 1100 Costa Mesa, CA 92626 Dallas, TX 75254 Dallas, TX 75254
Holiday Inn Express & Suites Costa Mesa Narendra B. Patel Narendra B. Patel 2070 Newport Blvd. 2070 Newport Blvd. 2070 Newport Blvd.

Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa Marriott HEI Hotels & Resorts Starwood Capital Group 500 Anton Blvd. 101 Merritt 7 Corporate Park, 1st Fl. 591 W. Putnam Ave.

Costa Mesa, CA 92626 Greenwich, CT 06830 Greenwich, CT 06830 OC Hotel Costa Mesa SAI KSP INC. Sanjay Panchal
2430 Newport Blvd. 11556 Manchester Way 11556 Manchester Way Costa Mesa, CA 92627 Porter Ranch, CA 91326 Porter Ranch, CA 91326 Ramada by Wyndham Costa Mesa/Newport Beach B.D. Inn Inc./Ramada Ltd. B.D. Inn Inc./Ramada Ltd. 1680 Superior Ave. 1680 Superior Ave. 1680 Superior Ave.

Costa Mesa, CA 92627 Costa Mesa, CA 92627 Costa Mesa, CA 92627 Residence Inn by Marriott Costa Mesa Newport Beach Marriott International BRE Select Hotels & Resorts 881 Baker St. 10400 Fernwood Rd. 6201 15th Ave.

Costa Mesa, CA 92626 Bethesda, MD 20817 Brooklyn, NY 11219 The Westin South Coast Plaza Host Hotels & Resorts Secon Properties 686 Anton Blvd. 6903 Rockledge Dr., Ste. 1500 3315 Fairview Rd.

Costa Mesa, CA 92626 Bethesda, MD 20817 Costa Mesa, CA 92626 LODGING + ADDRESS B USINESS OWNER PROPERTY OWNER
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
$200
$190
$180
$170
$160
$150
$140
$130
$120
$110
$100
Hotel Inventory Update
Orange County continues to draw investors and capital into the area with extensive renovations. Highlights include:
• Pendry Newport Beach (replacing Fashion Island
Hotel) is expected to welcome guests in summer
2023. The high-end hotel will have 295 rooms, 82
suites, and a wellness spa.
• The Irvine Company sold Hotel Irvine to Hyatt and
will undergo an extensive renovation that will include
541 guest rooms. Anticipated opening date is fall
2023.
• Element Irvine opened in July of 2022 with 124
rooms.
• Residence Inn by Marriott Anaheim Brea completed
their new build with 138 suites.

Hilton Orange County/Costa Mesa Ayres Hote Costa Mesal The Westin South Coast Plaza, Costa Mesa

LODGING/ HOTEL

PARTNERS
Looking Forward With Positive Results
Costa Mesa, like many other Orange County cities, saw performance metrics increase in calendar year 2022 as leisure pent up demand grew during the pandemic.
• Overall occupancy grew +7% and average daily rate grew +22% compared to 2021.
• Compared to 2019 levels, the overall weekend occupancy segment was

81.1%, almost fully recovered, and the transient weekday occupancy segment was 47.5% of the overall business, down only one percentage point. • The weekday contract occupancy segment was +7%, approximately half of what it was in 2019. However, Costa Mesa’s weekday group segment exceeded 2019 numbers by 2%.

In 2023, weekday group and transient demand is expected to grow modestly.

TCM HOTEL PARTNERS
In 2022, Orange County hotels ($201 ADR, 71.3% occupancy) outpaced California hotels ($187 ADR, 67.5% occupancy) and U.S. hotels ($149 ADR, 62.7% occupancy).

OCCUPANCY AVERAGE DAILY RATE (ADR)
2019 2020 2021 2022 2019 2020 2021 2022

78.8%
$147

42.3%
$127

58.5%
$136
73%
$166
177
10 11// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // Leisure Travel
America’s level of excitement to travel is at
a three-year high according to Destination
Analysts, an independent research firm
that surveyed thousands of adult American
travelers about their perceptions and
behaviors around travel since the pandemic.

The following findings, which were shared with
the tourism community, represent over 4,000
surveys collected in January 2023 across four
U.S. regions.

Business Travel
In the next 12 months, the top reasons consumers plan to travel for business will be to meet and work with customers and for industry conferences and events, according to research by Expedia Group Media Solutions. Looking by generation, the groups most likely to travel for work are Millennials (born 1981-1996) at 45% and Gen Zs (born 1997-2012) at 40%.

Additionally, more than a quarter (27%) of
business travelers are prioritizing leisure trips
according to Ipsos, a global market research
company. Direct flight options (48%) and
flight availability (45%) are the top factors in
business travel.

Remote and hybrid work arrangements are key
topics. According to JD Power, nearly four in
five business travelers work remotely at least
some of the time. Of note, 64% of executives
agree that having more remote employees will
increase business travel spending for internal
meetings.

TRAVEL

SENTIMENT
84% CURRENTL Y HAVE

TRAVEL PLANS
IN THE NEXT 12 MONTHS, 50% OF
AMERICANS HAVE 15 OR MORE DAYS

AVAILABLE FOR LEISURE TRAVEL
TOP 3 TRAVEL MOTIVATORS

71.2%
Quality time
with loved
ones

70.6%
Creating
new
memories

69.4%
Experiencing
new places
to travel
With hybrid work, every weekend
can be a holiday weekend…hybrid
work environments untether
workers from the office and give
them the newfound flexibility to
travel far more often than before.

This is not pent-up demand, it’s
the new normal.
— Scott Kirby, CEO, United Airlines
178
10 11// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // Leisure Travel
America’s level of excitement to travel is at
a three-year high according to Destination
Analysts, an independent research firm
that surveyed thousands of adult American
travelers about their perceptions and
behaviors around travel since the pandemic.

The following findings, which were shared with
the tourism community, represent over 4,000
surveys collected in January 2023 across four
U.S. regions.

Business Travel
In the next 12 months, the top reasons consumers plan to travel for business will be to meet and work with customers and for industry conferences and events, according to research by Expedia Group Media Solutions. Looking by generation, the groups most likely to travel for work are Millennials (born 1981-1996) at 45% and Gen Zs (born 1997-2012) at 40%.

Additionally, more than a quarter (27%) of
business travelers are prioritizing leisure trips
according to Ipsos, a global market research
company. Direct flight options (48%) and
flight availability (45%) are the top factors in
business travel.

Remote and hybrid work arrangements are key
topics. According to JD Power, nearly four in
five business travelers work remotely at least
some of the time. Of note, 64% of executives
agree that having more remote employees will
increase business travel spending for internal
meetings.

TRAVEL

SENTIMENT
84% CURRENTL Y HAVE

TRAVEL PLANS
IN THE NEXT 12 MONTHS, 50% OF
AMERICANS HAVE 15 OR MORE DAYS

AVAILABLE FOR LEISURE TRAVEL
TOP 3 TRAVEL MOTIVATORS

71.2%
Quality time
with loved
ones

70.6%
Creating
new
memories

69.4%
Experiencing
new places
to travel
With hybrid work, every weekend
can be a holiday weekend…hybrid
work environments untether
workers from the office and give
them the newfound flexibility to
travel far more often than before.

This is not pent-up demand, it’s
the new normal.
— Scott Kirby, CEO, United Airlines
179
12 13// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // U.S. TRAVEL

ASSOCIATION
U.S. Travel Association is a non-profit
organization that represents and advocates
for all components of the travel industry while
promoting and facilitating travel to the U.S. In
September 2022, Geoff Freeman became its
new president and CEO after Roger Dow’s
17 years of invaluable leadership and service
to the industry. Throughout 2022, U.S. Travel
focused on many issues within the travel
and tourism segment while shaping policy,
developing data, testifying before congress,
engaging with the international travel
community at tradeshows, and having a strong
presence in media coverage.

International Inbound Travel
In November 2021, the U.S. reopened its
borders for vaccinated foreign travelers
after more than 18 months of restrictions
on international travel. Despite this positive
news, inbound travel in 2022 reached 66% of
what it was in 2019, and overseas travelers
(total number of trips) were 50.2M in 2022
compared to 79.4M in 2019. Visitation from
China and Japan is recovering slowly, while
Canada, Mexico, the United Kingdom, and
Germany now rank as the top visitor markets
for the U.S.

The U.S. travel industry received another boost
in June 2022 when pre-departure COVID-19
testing requirements for all inbound American
travelers were lifted. Visa wait times for
international travelers remains a challenge,
however. Visitor visa (B-1/B-2) interviews
currently exceed 400 days for first-time
applicants. As a result of the waiting period,
many international visitors have opted for
alternative destinations. In December 2022,
U.S. Travel launched its “They Wait, We Lose”
campaign, featuring testimonials of people and
businesses impacted by long visitor wait times.

Business Travel
An acceleration for business
travel due to pent-up
demand for meetings, events,
conventions and tradeshows
is expected in 2023. While the
number of visitations in this
segment may recover next year,
business travel spending may
not for another four years as
inflation is taken into account.

U.S. Travel, T ourism Economics,
and J.D. Power collaborated in
2022 to develop a quarterly survey representing business travelers and corporate executives. The results were reported through U.S. Travel’s Business Travel Tracker. The following results represent the fourth quarter survey taken from the end of November 2022 to the end of December 2022. There were 790 business traveler respondents and 109 corporate executives.

Sustainability
In April 2022, U.S. Travel launched the Sustainable Travel Coalition, a group dedicated to the development and
advancement of strategies that will enable a sustainable future.

With more than 70 members, the coalition informs on issues within its organizations and perceived future challenges, focusing on these sustainable goals:
• Spotlight industry progress by showcasing innovative
technologies and call attention to the ongoing actions and leadership of travel professionals in the sustainable space • Amplify industry goals and commitments to conservation, best practices, waste and emission reductions, and both long- and short-term investments
• Highlight why sustainability matters and its importance to travel’s future
• Play offense by identifying and promoting proactive policies to help the industry achieve its goals.
• Defend against harmful policies that slow progress toward sustainability goals or penalize the industry without
progress.
2022 Highlights
JUNE 8: U.S. Travel sends a letter to congressional tax writers, advising on a range of environmental tax and trade policies.

AUGUST 16: The Inflation Reduction Act, which contains
many of the policy priorities included in the Sustainable Travel Coalition’s priorities, including a $370B investment in climate and energy programs, is signed into federal law.

SEPTEMBER 14: President Biden attends the Detroit Auto
Show and observes the private sector investments that are making road travel more environmentally friendly.

SEPTEMBER 20: U.S. Travel hosts its second annual “Future of Travel Mobility” conference highlighting sustainability progress across travel and transportation.

SEPTEMBER 23: The Department of Energy releases a plan to increase the production of sustainable aviation fuels.

SEPTEMBER 27: The Department of Transportation gives its final approval for construction to begin on a nationwide network of electric vehicle charging
DECEMBER 23: The Omnibus Travel and T ourism Act passes and includes a provision directing the FAA to prioritize research on sustainable aviation fuels.
180
12 13// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // U.S. TRAVEL

ASSOCIATION
U.S. Travel Association is a non-profit
organization that represents and advocates
for all components of the travel industry while
promoting and facilitating travel to the U.S. In
September 2022, Geoff Freeman became its
new president and CEO after Roger Dow’s
17 years of invaluable leadership and service
to the industry. Throughout 2022, U.S. Travel
focused on many issues within the travel
and tourism segment while shaping policy,
developing data, testifying before congress,
engaging with the international travel
community at tradeshows, and having a strong
presence in media coverage.

International Inbound Travel
In November 2021, the U.S. reopened its
borders for vaccinated foreign travelers
after more than 18 months of restrictions
on international travel. Despite this positive
news, inbound travel in 2022 reached 66% of
what it was in 2019, and overseas travelers
(total number of trips) were 50.2M in 2022
compared to 79.4M in 2019. Visitation from
China and Japan is recovering slowly, while
Canada, Mexico, the United Kingdom, and
Germany now rank as the top visitor markets
for the U.S.

The U.S. travel industry received another boost
in June 2022 when pre-departure COVID-19
testing requirements for all inbound American
travelers were lifted. Visa wait times for
international travelers remains a challenge,
however. Visitor visa (B-1/B-2) interviews
currently exceed 400 days for first-time
applicants. As a result of the waiting period,
many international visitors have opted for
alternative destinations. In December 2022,
U.S. Travel launched its “They Wait, We Lose”
campaign, featuring testimonials of people and
businesses impacted by long visitor wait times.

Business Travel
An acceleration for business
travel due to pent-up
demand for meetings, events,
conventions and tradeshows
is expected in 2023. While the
number of visitations in this
segment may recover next year,
business travel spending may
not for another four years as
inflation is taken into account.

U.S. Travel, T ourism Economics,
and J.D. Power collaborated in
2022 to develop a quarterly survey representing business travelers and corporate executives. The results were reported through U.S. Travel’s Business Travel Tracker. The following results represent the fourth quarter survey taken from the end of November 2022 to the end of December 2022. There were 790 business traveler respondents and 109 corporate executives.

Sustainability
In April 2022, U.S. Travel launched the Sustainable Travel Coalition, a group dedicated to the development and
advancement of strategies that will enable a sustainable future.

With more than 70 members, the coalition informs on issues within its organizations and perceived future challenges, focusing on these sustainable goals:
• Spotlight industry progress by showcasing innovative
technologies and call attention to the ongoing actions and leadership of travel professionals in the sustainable space • Amplify industry goals and commitments to conservation, best practices, waste and emission reductions, and both long- and short-term investments
• Highlight why sustainability matters and its importance to travel’s future
• Play offense by identifying and promoting proactive policies to help the industry achieve its goals.
• Defend against harmful policies that slow progress toward sustainability goals or penalize the industry without
progress.
2022 Highlights
JUNE 8: U.S. Travel sends a letter to congressional tax writers, advising on a range of environmental tax and trade policies.

AUGUST 16: The Inflation Reduction Act, which contains
many of the policy priorities included in the Sustainable Travel Coalition’s priorities, including a $370B investment in climate and energy programs, is signed into federal law.

SEPTEMBER 14: President Biden attends the Detroit Auto
Show and observes the private sector investments that are making road travel more environmentally friendly.

SEPTEMBER 20: U.S. Travel hosts its second annual “Future of Travel Mobility” conference highlighting sustainability progress across travel and transportation.

SEPTEMBER 23: The Department of Energy releases a plan to increase the production of sustainable aviation fuels.

SEPTEMBER 27: The Department of Transportation gives its final approval for construction to begin on a nationwide network of electric vehicle charging
DECEMBER 23: The Omnibus Travel and T ourism Act passes and includes a provision directing the FAA to prioritize research on sustainable aviation fuels.
181
14 15// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // VISIT

CALIFORNIA
Visit California is focused on restoring
travel spending by increasing leisure
travel, professional meetings and events,
international visitation, and urban recovery.

The state’s destination marketing organization
uses research from T ourism Economics to
forecast visitation and traveler spending in the
Golden State.

Travel Visitation
Visitation to California reached 259.8M in
2022 (+21% YOY), and is expected to increase
to 279.1M (+8% YOY) in 2023. International
visitation increased 115% in 2022 compared
to the previous year, and is expected in 2023 to
reach 81% of the 2019 volume.

Total Travel Visitation
Domestic Visitation
International Visitation
182
14 15// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // VISIT

CALIFORNIA
Visit California is focused on restoring
travel spending by increasing leisure
travel, professional meetings and events,
international visitation, and urban recovery.

The state’s destination marketing organization
uses research from T ourism Economics to
forecast visitation and traveler spending in the
Golden State.

Travel Visitation
Visitation to California reached 259.8M in
2022 (+21% YOY), and is expected to increase
to 279.1M (+8% YOY) in 2023. International
visitation increased 115% in 2022 compared
to the previous year, and is expected in 2023 to
reach 81% of the 2019 volume.

Total Travel Visitation
Domestic Visitation
International Visitation
183
16 17// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // Travel Spending
Visitor travel spending reached $135B in
2022 (+35% YOY) and is expected to grow
to $154.4B in 2023, surpassing the previous
high of $144.9B from 2019. Leisure travel is
expected to recover in 2023 to 100% of 2019
levels and business travel will recover to 88%.

International spending reached $16.4B in
2022 (+202% YOY) and 58% of 2019 levels.

Sourced from individual airports. Monthly figures
may not sum to YTD totals due to data revisions.

VISIT

CALIFORNIA
184
16 17// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // Travel Spending
Visitor travel spending reached $135B in
2022 (+35% YOY) and is expected to grow
to $154.4B in 2023, surpassing the previous
high of $144.9B from 2019. Leisure travel is
expected to recover in 2023 to 100% of 2019
levels and business travel will recover to 88%.

International spending reached $16.4B in
2022 (+202% YOY) and 58% of 2019 levels.

Sourced from individual airports. Monthly figures
may not sum to YTD totals due to data revisions.

VISIT

CALIFORNIA
185
18 19// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // T arget audiences in drive
markets, as well as those with
very short flights
Host media from review
and news perspectives, and
continue public relations
branding activities on a wider
scale (flight markets okay)
Build trust and introduce
Costa Mesa to new viewers
through social/public relations
connections

MARKETING
TCM continued an “always-on” marketing
strategy in 2022-23, mixing brand awareness
campaigns with promotions to help increase
hotel occupancy during times of need. The
focus was on marketing efforts to nearby drive
markets in Los Angeles, San Diego, Inland
Empire; communities within Orange County
for “staycations” or trips close to home; and
smaller summer sub-campaigns to Arizona
and Nevada. The leisure market continued to
improve, and with more people working from
home and during their vacation time, leisure
time expanded to not just the weekends.

Website Traffic
The return of a “normal” level of spend for TCM advertising definitely showed up in its increased website traffic in calendar year 2022. T otal website users were +30.75% (408,973 vs. 312,796) with sessions +27.82% (475,878 vs. 372,296) over the previous year. New website users were +28.82% (407,950 vs. 316,673) and page views were +27.78% (722,750 vs. 565,640) year-over-year (YOY).

Organic search traffic (20.5%) remained similar to 2021, when the website saw a +140% spike in organic search traffic largely due to TCM’s increase in paid ad and social efforts. Clear positive responses were seen with the ad campaigns, particularly display, which drove 22.9% of the traffic.

The biggest YOY increase was referral traffic, which drove 22.1% of overall traffic (as opposed to 14.5% in 2021). Referral traffic refers to visitors that arrive to a website from another source, like through a hyperlink on another domain. When someone clicks on the hyperlink, Google Analytics tracks the traffic as a referral visit, and the originating website is called a “referrer. ” T aboola, TCM’s paid content marketing platform, was the top referrer in 2022. Traffic from content marketing actualized +116.13% (69,708 sessions vs. 32,129) YOY. Travelzoo was the second-highest referral source as TCM placed cost-per-click ads throughout the year during its tactical campaigns.

While most of the referral traffic was paid, TCM did have a couple of unpaid referral sources that increased last year, including traffic from Visit California (+309% YOY). While this is not a hard-and-fast rule, unpaid referral traffic usually achieves superior bounce rate, page/session, and session durations due to the fact that they are often coming from a trusted source. Visit California is an excellent example, and a visitor from its website to TCM is a highly qualified one. Last year, referral traffic from Visit California had a session time more than three times as long as those from other unpaid referrals.

22.91%

DISPLAY ADS

22.1%

REFERRAL

20.50%

ORGANIC SEARCH

15.47%

PAID SEARCH

13.48%
DIRECT

35.95%

LOS ANGELES

4.70%

SAN DIEGO

2.14%

SAN FRANCISCO

1.49%

LONG BEACH

1.47%

RIVERSIDE

48.41%

CALIFORNIA

WEBSITE

TRAFFIC

DRIVERS

TOP WEBSITE VISITORS

BY STATE
TOP

WEBSITE

VISITORS

BY CITY
(OUTSIDE OF OC)
Top 10 Pages Visited
In 2022, websites continued to be a key tool for
marketers despite seeing declines in overall web
traffic when compared to the previous year. While
traffic was -6%, web conversions grew +11%,
demonstrating the importance of having web-based
conversion paths for your online audience. ”
— Hubspot (February 2023)

4.75%
TEXAS

4.33%

NEW YORK

3.86%

FLORIDA

3.70%

ILLINOIS

1. Hotel specials and discounts

2. Home page

3. Summer hotel deals

4. Holiday hotel deals

5. City of the Arts
®

6. Spring break hotel deals

7. Pet Expo

8. Stay

9. “What If” tactical campaign

10. Calendar
Website Usage
TCM saw a big lift in tablet users from the
previous year (+179.83% or 28,280 vs.
10,106). While the primary traffic source
was from mobile devices, desktop users
did increase in the total mix similar to the
previous year, which was likely attributed
to more remote workers. In 2022, 71.33%
of web traffic was from mobile devices,

21.78% was from desktop, and 6.89% was
from tablets.
186
18 19// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // T arget audiences in drive
markets, as well as those with
very short flights
Host media from review
and news perspectives, and
continue public relations
branding activities on a wider
scale (flight markets okay)
Build trust and introduce
Costa Mesa to new viewers
through social/public relations
connections

MARKETING
TCM continued an “always-on” marketing
strategy in 2022-23, mixing brand awareness
campaigns with promotions to help increase
hotel occupancy during times of need. The
focus was on marketing efforts to nearby drive
markets in Los Angeles, San Diego, Inland
Empire; communities within Orange County
for “staycations” or trips close to home; and
smaller summer sub-campaigns to Arizona
and Nevada. The leisure market continued to
improve, and with more people working from
home and during their vacation time, leisure
time expanded to not just the weekends.

Website Traffic
The return of a “normal” level of spend for TCM advertising definitely showed up in its increased website traffic in calendar year 2022. T otal website users were +30.75% (408,973 vs. 312,796) with sessions +27.82% (475,878 vs. 372,296) over the previous year. New website users were +28.82% (407,950 vs. 316,673) and page views were +27.78% (722,750 vs. 565,640) year-over-year (YOY).

Organic search traffic (20.5%) remained similar to 2021, when the website saw a +140% spike in organic search traffic largely due to TCM’s increase in paid ad and social efforts. Clear positive responses were seen with the ad campaigns, particularly display, which drove 22.9% of the traffic.

The biggest YOY increase was referral traffic, which drove 22.1% of overall traffic (as opposed to 14.5% in 2021). Referral traffic refers to visitors that arrive to a website from another source, like through a hyperlink on another domain. When someone clicks on the hyperlink, Google Analytics tracks the traffic as a referral visit, and the originating website is called a “referrer. ” T aboola, TCM’s paid content marketing platform, was the top referrer in 2022. Traffic from content marketing actualized +116.13% (69,708 sessions vs. 32,129) YOY. Travelzoo was the second-highest referral source as TCM placed cost-per-click ads throughout the year during its tactical campaigns.

While most of the referral traffic was paid, TCM did have a couple of unpaid referral sources that increased last year, including traffic from Visit California (+309% YOY). While this is not a hard-and-fast rule, unpaid referral traffic usually achieves superior bounce rate, page/session, and session durations due to the fact that they are often coming from a trusted source. Visit California is an excellent example, and a visitor from its website to TCM is a highly qualified one. Last year, referral traffic from Visit California had a session time more than three times as long as those from other unpaid referrals.

22.91%

DISPLAY ADS

22.1%

REFERRAL

20.50%

ORGANIC SEARCH

15.47%

PAID SEARCH

13.48%
DIRECT

35.95%

LOS ANGELES

4.70%

SAN DIEGO

2.14%

SAN FRANCISCO

1.49%

LONG BEACH

1.47%

RIVERSIDE

48.41%

CALIFORNIA

WEBSITE

TRAFFIC

DRIVERS

TOP WEBSITE VISITORS

BY STATE
TOP

WEBSITE

VISITORS

BY CITY
(OUTSIDE OF OC)
Top 10 Pages Visited
In 2022, websites continued to be a key tool for
marketers despite seeing declines in overall web
traffic when compared to the previous year. While
traffic was -6%, web conversions grew +11%,
demonstrating the importance of having web-based
conversion paths for your online audience. ”
— Hubspot (February 2023)

4.75%
TEXAS

4.33%

NEW YORK

3.86%

FLORIDA

3.70%

ILLINOIS

1. Hotel specials and discounts

2. Hom
e page

3. Summer hotel deals

4. Holiday hotel deals

5. City of the Arts
®

6. Spring break hotel deals

7. Pet Expo

8. Stay

9. “What If” tactical campaign

10. Calendar
Website Usage
TCM saw a big lift in tablet users from the
previous year (+179.83% or 28,280 vs.
10,106). While the primary traffic source
was from mobile devices, desktop users
did increase in the total mix similar to the
previous year, which was likely attributed
to more remote workers. In 2022, 71.33%
of web traffic was from mobile devices,

21.78% was from desktop, and 6.89% was
from tablets.
187
20 21// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

MARKETING
In 2022-23, TCM produced several
successful PR initiatives across the country to
promote Costa Mesa as a destination.
“Create Your Escape - Close to
Home” Spring Campaign
TCM launched a spring campaign in 2022
centered around the drive market. The ad
creative featured hotel deals as low as $92
while reinforcing Costa Mesa’s other great
attributes: shopping, the arts, bike riding
tr
ails, and close proximity to beaches,
Disneyland Resort, and other Orange County
attractions. The results were excellent:
13,500+ web page sessions, 900+ hotel
leads, and among TCM’s top 10 most visited
pages of the year.
*According to a Nielson advertising study, 64% of people who saw messaging on a wrapped vehicle remembered seeing it within 30 days. “Road Trip” Summer Campaign
The summer campaign was all about the
road trip. Featuring simple and direct
messages (“Foodies Eat in Costa Mesa”
and “Fork in the Road? Eat With It. ”),
this new twist for TCM got some great
attention over the campaign including an
evening news segment on FOX 11 Los
Angeles. TCM also launched paid display,
social content, and organic support
through its owned email and PR channels.

T argeting the L.A. area, TCM placed ads on
Uber and Lyft cars through Carvertise, as
well as out-of-home (OOH) opportunities
for the first time with five billboards.
“Road Trip” was TCM’s most successful
2022 campaign, garnering 36.3K visits to
its web page and 1,400+ leads.

Impressions
Display Ads, Email, Content, Social: 16.75M
Print: 1.525M
OOH: 5.037M
Carvertise (Uber and Lyft)*: 3.37M
Broadcast TV: 27.1K on KTTV
($18,282 in
media value!)
Summer Sub-Campaigns
Due to the success of last year’s “Beat the
Heat” campaign, TCM launched another
sub-campaign targeting Arizona again
and adding Nevada. Using primarily food
and beach imagery, the online and social
content featured Costa Mesa as a road
trip destination for those in the summer
heat. The campaign included targeted paid
social ads, as well as secured placement in
the Phoenix New Times summer guide and
email blast.

TCM also launched multiple content
marketing pieces for the OC Fair, one of
the biggest events of the year. On the home
page, TCM prominently displayed a banner
ad that linked to its page about the OC
Fair, driving additional organic traffic and
resulting in nearly 3,500 visits.
“What If” Holiday Campaign
Mirroring Visit California’s “What If” messaging and
utilizing additional state funding, TCM launched a year- end holiday campaign. The advertising creative featured messages like “What if you could find the perfect gift
in Costa Mesa?” and ran from mid-November 2022 to
January 1, 2023. The campaign’s web page, which touted
events happening in Costa Mesa, was the fourth most
visited page of the year. Boosted by display ads, social, and PR efforts, the holiday campaign brought 1,600+ leads and approximately 29K website visits.
188
20 21// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

MARKETING
In 2022-23, Travel Costa Mesa produced
several successful PR initiatives across
the country to promote Costa Mesa as a
destination.
“Create Your Escape - Close to
Home” Spring Campaign
TCM launched a spring campaign in 2022
centered around the drive market. The ad
creative featured hotel deals as low as $92
while reinforcing Costa Mesa’s other great
attributes: shopping, the arts, bike riding trails,
and close proximity to beaches, Disneyland
Resort, and other Orange County attractions.

The results were excellent: 13,500+ web page
sessions, 900+ hotel leads, and among TCM’s
top 10 most visited pages of the year.
*According to a Nielson advertising study, 64% of people who saw messaging on a wrapped vehicle remembered seeing it within 30 days. “Road Trip” Summer Campaign
The summer campaign was all about the
road trip. Featuring simple and direct
messages (“Foodies Eat in Costa Mesa”
and “Fork in the Road? Eat With It. ”),
this new twist for TCM got some great
attention over the campaign including an
evening news segment on FOX 11 Los
Angeles. TCM also launched paid display,
social content, and organic support
through its owned email and PR channels.

T argeting the L.A. area, TCM placed ads on
Uber and Lyft cars through Carvertise, as
well as out-of-home (OOH) opportunities
for the first time with five billboards.
“Road Trip” was TCM’s most successful
2022 campaign, garnering 36.3K visits to
its web page and 1,400+ leads.

Impressions
Display Ads, Email, Content, Social: 16.75M
Print: 1.525M
OOH: 5.037M
Carvertise (Uber and Lyft)*: 3.37M
Broadcast TV: 27.1K on KTTV
($18,282 in
media value!)
Summer Sub-Campaigns
Due to the success of last year’s “Beat the
Heat” campaign, TCM launched another
sub-campaign targeting Arizona again
and adding Nevada. Using primarily food
and beach imagery, the online and social
content featured Costa Mesa as a road
trip destination for those in the summer
heat. The campaign included targeted paid
social ads, as well as secured placement in
the Phoenix New Times summer guide and
email blast.

TCM also launched multiple content
marketing pieces for the OC Fair, one of
the biggest events of the year. On the home
page, TCM prominently displayed a banner
ad that linked to its page about the OC
Fair, driving additional organic traffic and
resulting in nearly 3,500 visits.
“What If” Holiday Campaign
Mirroring Visit California’s “What If” messaging and
utilizing additional state funding, TCM launched a year- end holiday campaign. The advertising creative featured messages like “What if you could find the perfect gift
in Costa Mesa?” and ran from mid-November 2022 to
January 1, 2023. The campaign’s web page, which touted
events happening in Costa Mesa, was the fourth most
visited page of the year. Boosted by display ads, social, and PR efforts, the holiday campaign brought 1,600+ leads and approximately 29K website visits.
189
22 23// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

MARKETING
Travelzoo Sponsored Page
In November 2022, TCM partnered with
Travelzoo to create a sponsored page on the
travel company’s site. “Recharge with a Costa
Mesa getaway, ” focuses on activities in the
city and dining, introducing Costa Mesa to
new visitors. Travelzoo promoted the page in
January 2023 with social posts and an email
blast. Since its launch, the sponsored page has
6,300+ views with a great clickthrough rate
(CTR) of 16%.

Meetings and Events
TCM created a variety of sales and marketing
materials to promote Costa Mesa as an elite
meetings destination. It revamped its Meetings and
Events page to reorganize the information and make
it more efficient for the visitor; added a pop-up call
to action (“Find out about meeting incentives!”)
for RFPs and quicker responses with leads going
directly to the team’s destination sales executive;
and produced a new Meetings Guide, which can
be found digitally on the site. For tradeshows,
TCM also created a one-page collateral piece and a
tabletop display with imagery from its new branding
campaign.

Using its “Meet What’s Possible” initiative to
encourage a return of meetings business, Visit
California funded a print insert called “Destination
California” for the winter 2022 issue of Meetings
& Conventions magazine. Destination marketing
organizations in California were given the
opportunity to purchase editorial and ad space in
the magazine for half the normal rate. TCM had a
two-page editorial spread, highlighting Costa Mesa’s
event spaces and meeting incentives.

Lunar New Year and Valentine’s Day Campaigns
Through its blog and social channels, TCM continued to showcase all the Lunar New Year events happening in Costa Mesa,
particularly at South Coast Plaza (SCP) and the annual T et Festival at OC Fair and Event Center. Launched in January 2023, TCM also partnered with a Costa Mesa hotel property to offer a special holiday package. An Instagram reel (@travelcostamesa) highlighting SCP’s Lunar New Year display was TCM’s most popular of the year receiving 12.7K organic views.

For Valentine’s Day, TCM capitalized on a previously well- performing blog called “Best Valentine’s Day Ideas in Orange County. Using Google Ads, as well as paid social ads on Facebook and Instagram, the campaign’s web page received 8,000+ visits. “What Will You See Next in Costa
Mesa?” Branding Campaign
In February 2023, TCM launched a new
branding video called “What Will You See
Next in Costa Mesa. ” Using a series of quick
transitions, the video takes three visitors to
various destinations around Costa Mesa while
highlighting the arts, food, and shopping. In
the ad campaign, the phrase “See What’s Next”
is also used. Supported by paid social, digital
display, a press release, and a print ad in Visit
California’s California Road Trips Guide, the
branding campaign will be used throughout
2023 and can be adapted seasonally.

We don’t expect a decline
in ad dollars or a decline
in ad traffic; we expect a
reallocation and shift of
budgets. The next best option
to cookie-based behavioral
targeting is anything keyword
or keyword contextual-based
advertising. ”
— VP of Search, (Cogniscient Media)
Website Privacy Developments
Online privacy is “the level of privacy protection an individual has while connected to the Internet, ” says Google. It covers the amount of online security available for personal and financial data, communications, and preferences. As more people are concerned about their online privacy, ad companies (and therefore marketers) must think about how to adjust their campaigns to ensure they are as effective as possible given some personal data used to target users will be unavailable.

Browser cookies (aka web, Internet, or HTTP cookies) are small blocks of data created by a web server while a user is browsing a website. The cookie is placed on the user’s computer or other device by the user’s browser or site visited. With today’s users concerned about privacy, many browsers and sites have moved to a “cookie-less” environment, limiting the amount of user data publishers can acquire and analyze.

Due to these changes, TCM will continue to partner with the data company ADARA for its paid display ads.

As a trusted partner, ADARA can still cross-check customer data and model behaviors without cookies (Many other sites, such as large hotel chains, prefer to keep its relationship with ADARA private.) TCM will also refine its marketing strategy to account for the loss of the data by utilizing new out-of-home ad opportunities in target markets, using partners with their own data acquired with consumer consent, and doing contextual advertising—putting ads of interest with matching content of interest.

The Golden State for Sustainable,
Innovative, Outdoor and Inclusive Events

DESTINATION
001_MCMAIN 1001_MCMAIN 1 10/24/22 6:37 PM10/24/22 6:37 PM

DESTINATION

DESTINATION
C
osta Mesa is the perfect
location for a small- to
mid-size meeting or
incentive event. Y our guests will love
Southern California’s hospitality and a
selection of welcoming hotels from the
world’s most recognizable brands.

The uniqueness of Costa Mesa’s event
space sets it apart from other cities.

Select from an elegant event overlooking
the architectural mastery of Segerstrom
Center for the Arts, or a casual event at the
OC Fair & Event Center for larger groups.

And with its central location, Costa Mesa
is the perfect spot to allow your guests to
see the world-famous attractions Southern
California is known for, including
spectacular beaches and the Disneyland®
Resort.

Orange County’s 300+ days of sunshine
and moderate climate can give your
guests a seamless indoor-to-outdoor
event experience. Along with the city’s
walkability, your guests will
enjoy a variety of award-
winning dining options,
world-class shopping,
performing arts and
luxurious comfort
at some of the top
hotels in Southern
California. Art, music,
and theater are some of Costa
Mesa’s signature activities,
underscoring its reputation
as the City of the Arts®. Costa
Mesa is truly the cultural
epicenter of Orange County,
attracting visitors from
around the world.

Looking for exceptional
dining during your visit?
Costa Mesa offers over 150
restaurants and the only three Michelin-
starred restaurants in Orange County,
not to mention celebrity chefs like Amar
Santana. Enjoy fine dining at Mastro’s
Steakhouse, the critically acclaimed
Shanghainese dumpling restaurant Din
Tai Fung, or modern French cuisine at
Michelin-starred Knife Pleat.

TRAVEL ESSENTIALS
John Wayne Airport, Orange County
is just 4 miles from the city center.

MEETING AND EVENT VENUES
For events on a larger scale, Costa Mesa
offers the OC Fair & Event Center, with
seven different buildings from 13,400 to
36,000 square feet of event space. There
are several various outdoor possibilities
that can hold groups of 1,500 to 3,000,
and the 8,200-seat Pacific Amphitheater
can be rented for concerts or large-scale
presentations requiring a stage. The Hilton
is the city’s largest hotel, offering 50,000
square feet of indoor/outdoor meeting
space, from boardrooms to banquet rooms,
and two private outdoor courtyards.

THINGS TO DO
Plan your meeting or party in the incredible
outdoor sculpture garden California
Scenario, created by world-famous artist
Isamu Noguchi. The Japanese-influenced
“Noguchi Garden” features landscape and
design elements celebrating California.

This truly unique 70,000-square-foot space
containing desert streams, forests and a
rock fountain, accommodates events of
approximately 100 guests. Catering and
event planning services are provided
exclusively by the incomparable Mastro’s
Steakhouse, just next to the garden.

FOR MORE INFORMATION:

Travel Costa Mesa
Debbie Megna, Destination
Sales Executive
(909) 851-7865, or (714) 786-8585
[email protected]
travelcostamesa.com

A SPECIAL PLANNER INCENTIVE
Costa Mesa is offering meeting planners cash incentives upon booking and actualization of their first meeting or event at a Costa Mesa partner hotel. The qualified booking must be a minimum of 25 cumulative room nights. Offer subject to availability. For more details, contact Debbie Megna at [email protected].

Costa Mesa
Unique. Intimate. Welcoming. Y our new meetings
destination in Orange County.

November/December 202214 visitcalifornia.com/meetings
014_MCMAIN 14014_MCMAIN 14 12/21/22 11:47 PM12/21/22 11:47 PM 190
22 23// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

MARKETING
Travelzoo Sponsored Page
In November 2022, TCM partnered with
Travelzoo to create a sponsored page on the
travel company’s site. “Recharge with a Costa
Mesa getaway, ” focuses on activities in the
city and dining, introducing Costa Mesa to
new visitors. Travelzoo promoted the page in
January 2023 with social posts and an email
blast. Since its launch, the sponsored page has
6,300+ views with a great clickthrough rate
(CTR) of 16%.

Meetings and Events
TCM created a variety of sales and marketing
materials to promote Costa Mesa as an elite
meetings destination. It revamped its Meetings and
Events page to reorganize the information and make
it more efficient for the visitor; added a pop-up call
to action (“Find out about meeting incentives!”)
for RFPs and quicker responses with leads going
directly to the team’s destination sales executive;
and produced a new Meetings Guide, which can
be found digitally on the site. For tradeshows,
TCM also created a one-page collateral piece and a
tabletop display with imagery from its new branding
campaign.

Using its “Meet What’s Possible” initiative to
encourage a return of meetings business, Visit
California funded a print insert called “Destination
California” for the winter 2022 issue of Meetings
& Conventions magazine. Destination marketing
organizations in California were given the
opportunity to purchase editorial and ad space in
the magazine for half the normal rate. TCM had a
two-page editorial spread, highlighting Costa Mesa’s
event spaces and meeting incentives.

Lunar New Year and Valentine’s Day Campaigns
Through its blog and social channels, TCM continued to showcase all the Lunar New Year events happening in Costa Mesa,
particularly at South Coast Plaza (SCP) and the annual T et Festival at OC Fair and Event Center. Launched in January 2023, TCM also partnered with a Costa Mesa hotel property to offer a special holiday package. An Instagram reel (@travelcostamesa) highlighting SCP’s Lunar New Year display was TCM’s most popular of the year receiving 12.7K organic views.

For Valentine’s Day, TCM capitalized on a previously well- performing blog called “Best Valentine’s Day Ideas in Orange County. Using Google Ads, as well as paid social ads on Facebook and Instagram, the campaign’s web page received 8,000+ visits. “What Will You See Next in Costa
Mesa?” Branding Campaign
In February 2023, TCM launched a new
branding video called “What Will You See
Next in Costa Mesa. ” Using a series of quick
transitions, the video takes three visitors to
various destinations around Costa Mesa while
highlighting the arts, food, and shopping. In
the ad campaign, the phrase “See What’s Next”
is also used. Supported by paid social, digital
display, a press release, and a print ad in Visit
California’s California Road Trips Guide, the
branding campaign will be used throughout
2023 and can be adapted seasonally.

We don’t expect a decline
in ad dollars or a decline
in ad traffic; we expect a
reallocation and shift of
budgets. The next best option
to cookie-based behavioral
targeting is anything keyword
or keyword contextual-based
advertising. ”
— VP of Search, (Cogniscient Media)
Website Privacy Developments
Online privacy is “the level of privacy protection an individual has while connected to the Internet, ” says Google. It covers the amount of online security available for personal and financial data, communications, and preferences. As more people are concerned about their online privacy, ad companies (and therefore marketers) must think about how to adjust their campaigns to ensure they are as effective as possible given some personal data used to target users will be unavailable.

Browser cookies (aka web, Internet, or HTTP cookies) are small blocks of data created by a web server while a user is browsing a website. The cookie is placed on the user’s computer or other device by the user’s browser or site visited. With today’s users concerned about privacy, many browsers and sites have moved to a “cookie-less” environment, limiting the amount of user data publishers can acquire and analyze.

Due to these changes, TCM will continue to partner with the data company ADARA for its paid display ads.

As a trusted partner, ADARA can still cross-check customer data and model behaviors without cookies (Many other sites, such as large hotel chains, prefer to keep its relationship with ADARA private.) TCM will also refine its marketing strategy to account for the loss of the data by utilizing new out-of-home ad opportunities in target markets, using partners with their own data acquired with consumer consent, and doing contextual advertising—putting ads of interest with matching content of interest.

The Golden State for Sustainable,
Innovative, Outdoor and Inclusive Events

DESTINATION
001_MCMAIN 1001_MCMAIN 1 10/24/22 6:37 PM10/24/22 6:37 PM

DESTINATION

DESTINATION
C
osta Mesa is the perfect
location for a small- to
mid-size meeting or
incentive event. Y our guests will love
Southern California’s hospitality and a
selection of welcoming hotels from the
world’s most recognizable brands.

The uniqueness of Costa Mesa’s event
space sets it apart from other cities.

Select from an elegant event overlooking
the architectural mastery of Segerstrom
Center for the Arts, or a casual event at the
OC Fair & Event Center for larger groups.

And with its central location, Costa Mesa
is the perfect spot to allow your guests to
see the world-famous attractions Southern
California is known for, including
spectacular beaches and the Disneyland®
Resort.

Orange County’s 300+ days of sunshine
and moderate climate can give your
guests a seamless indoor-to-outdoor
event experience. Along with the city’s
walkability, your guests will
enjoy a variety of award-
winning dining options,
world-class shopping,
performing arts and
luxurious comfort
at some of the top
hotels in Southern
California. Art, music,
and theater are some of Costa
Mesa’s signature activities,
underscoring its reputation
as the City of the Arts®. Costa
Mesa is truly the cultural
epicenter of Orange County,
attracting visitors from
around the world.

Looking for exceptional
dining during your visit?
Costa Mesa offers over 150
restaurants and the only three Michelin-
starred restaurants in Orange County,
not to mention celebrity chefs like Amar
Santana. Enjoy fine dining at Mastro’s
Steakhouse, the critically acclaimed
Shanghainese dumpling restaurant Din
Tai Fung, or modern French cuisine at
Michelin-starred Knife Pleat.

TRAVEL ESSENTIALS
John Wayne Airport, Orange County
is just 4 miles from the city center.

MEETING AND EVENT VENUES
For events on a larger scale, Costa Mesa
offers the OC Fair & Event Center, with
seven different buildings from 13,400 to
36,000 square feet of event space. There
are several various outdoor possibilities
that can hold groups of 1,500 to 3,000,
and the 8,200-seat Pacific Amphitheater
can be rented for concerts or large-scale
presentations requiring a stage. The Hilton
is the city’s largest hotel, offering 50,000
square feet of indoor/outdoor meeting
space, from boardrooms to banquet rooms,
and two private outdoor courtyards.

THINGS TO DO
Plan your meeting or party in the incredible
outdoor sculpture garden California
Scenario, created by world-famous artist
Isamu Noguchi. The Japanese-influenced
“Noguchi Garden” features landscape and
design elements celebrating California.

This truly unique 70,000-square-foot space
containing desert streams, forests and a
rock fountain, accommodates events of
approximately 100 guests. Catering and
event planning services are provided
exclusively by the incomparable Mastro’s
Steakhouse, just next to the garden.

FOR MORE INFORMATION:

Travel Costa Mesa
Debbie Megna, Destination
Sales Executive
(909) 851-7865, or (714) 786-8585
[email protected]
travelcostamesa.com

A SPECIAL PLANNER INCENTIVE
Costa Mesa is offering meeting planners cash incentives upon booking and actualization of their first meeting or event at a Costa Mesa partner hotel. The qualified booking must be a minimum of 25 cumulative room nights. Offer subject to availability. For more details, contact Debbie Megna at [email protected].

Costa Mesa
Unique. Intimate. Welcoming. Y our new meetings
destination in Orange County.

November/December 202214 visitcalifornia.com/meetings
014_MCMAIN 14014_MCMAIN 14 12/21/22 11:47 PM12/21/22 11:47 PM 191
24 25// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

PR & MEDIA

COVERAGE
Travel Costa Mesa sends its press releases
through PR Wire, a division of Cision. Since
January 2022, it has sent 10 press releases
that were picked up 1,300+ times by various
media outlets and exposed to a potential
audience of 300.9M.

FOX 11 Los Angeles Primetime
News
In July 2022, FOX 11 Los Angeles reporter
Cristy Fajardo saw TCM’s summer campaign
billboards in L.A. and drove down to cover
Costa Mesa’s food scene for its evening July
25 news show. The television spot received

27.1K impressions with a media value of
$18,282.

OCMA Opening Events
TCM provided immense support for the opening
of the Orange County Museum of Art (OCMA)
in October 2022. The team hosted its first mega
FAM event, inviting 15 local and national journalists
to Costa Mesa for a media-exclusive view of
the museum, dinner at Knife Pleat, a showing of
Hamilton at Segerstrom Center for the Arts, and a
stay at Avenue of the Arts Hotel. Journalists from
magazines (Iconic Life, Modern Luxury, Southern
California Life and Westways), newspapers (LA
Weekly), and online travel shows (The Golf and Travel
Show) attended the event, as did freelance writers
(one of which completed a piece for the New Y ork
Post).

TCM also invited six influencer partners to the
OCMA grand opening event, hosting dinners near
the Segerstrom Center for the Arts campus with
some staying at the Costa Mesa Marriott. Through
outreach, two other influencers posted about the
OCMA opening. From all eight influencers, TCM’s
outreach garnered 1.77M impressions and a wide
variety of Instagram stories and posts.

The Travel Mom
In September 2022, Emily Kaufman’s
The Travel Mom broadcast on Costa
Mesa was picked up 12 times in
Phoenix, Dallas, Sacramento, and
Las Vegas, along with national
online coverage on Y ahoo! News and
NewsBreak. TCM received 27.6M
impressions, 116K viewers, and $418K
in media value–arguably the most
successful paid PR campaign that TCM
has ever done.

IFWTWA Annual
Conference
TCM was a title sponsor for
International Food and Wine
Travel Writers Association’s
(IFWTWA) annual conference
in September 2022 in St.

Petersburg, Florida. Armed with
new marketing materials, the
team had the opportunity to
introduce Costa Mesa for a few
minutes to conference attendees
and answer questions about the
destination. TCM has formed a
solid relationship with IFWTWA
members and will include them
in ongoing event news and invite
them to familiarization (FAM) trips
whenever applicable.
192
24 25// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

PR & MEDIA

COVERAGE
Travel Costa Mesa sends its press releases
through PR Wire, a division of Cision. Since
January 2022, it has sent 10 press releases
that were picked up 1,300+ times by various
media outlets and exposed to a potential
audience of 300.9M.

FOX 11 Los Angeles Primetime
News
In July 2022, FOX 11 Los Angeles reporter
Cristy Fajardo saw TCM’s summer campaign
billboards in L.A. and drove down to cover
Costa Mesa’s food scene for its evening July
25 news show. The television spot received

27.1K impressions with a media value of
$18,282.

OCMA Opening Events
TCM provided immense support for the opening
of the Orange County Museum of Art (OCMA)
in October 2022. The team hosted its first mega
FAM event, inviting 15 local and national journalists
to Costa Mesa for a media-exclusive view of
the museum, dinner at Knife Pleat, a showing of
Hamilton at Segerstrom Center for the Arts, and a
stay at Avenue of the Arts Hotel. Journalists from
magazines (Iconic Life, Modern Luxury, Southern
California Life and Westways), newspapers (LA
Weekly), and online travel shows (The Golf and Travel
Show) attended the event, as did freelance writers
(one of which completed a piece for the New Y ork
Post).

TCM also invited six influencer partners to the
OCMA grand opening event, hosting dinners near
the Segerstrom Center for the Arts campus with
some staying at the Costa Mesa Marriott. Through
outreach, two other influencers posted about the
OCMA opening. From all eight influencers, TCM’s
outreach garnered 1.77M impressions and a wide
variety of Instagram stories and posts.

The Travel Mom
In September 2022, Emily Kaufman’s
The Travel Mom broadcast on Costa
Mesa was picked up 12 times in
Phoenix, Dallas, Sacramento, and
Las Vegas, along with national
online coverage on Y ahoo! News and
NewsBreak. TCM received 27.6M
impressions, 116K viewers, and $418K
in media value–arguably the most
successful paid PR campaign that TCM
has ever done.

IFWTWA Annual
Conference
TCM was a title sponsor for
International Food and Wine
Travel Writers Association’s
(IFWTWA) annual conference
in September 2022 in St.

Petersburg, Florida. Armed with
new marketing materials, the
team had the opportunity to
introduce Costa Mesa for a few
minutes to conference attendees
and answer questions about the
destination. TCM has formed a
solid relationship with IFWTWA
members and will include them
in ongoing event news and invite
them to familiarization (FAM) trips
whenever applicable.
193
26 27// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

PR & MEDIA

COVERAGE
NBC California Live
TCM’s relationship with The Travel Mom brought an introduction to Laila Muhammad of NBC California Live, and she was invited to visit OCMA.

Muhammad produced a segment for her show at no cost to TCM, including an interview with the museum’s CEO Heidi Zuckerman. Airing at the end of 2022, the segment received 125K television viewers in L.A., San Diego, and San Francisco and 1.2M impressions online,with a total media value of $89K.

Growth of TikT ok
TikT ok can’t be overlooked in social media marketing. According to Insider Intelligence, the short-form video platform now hosts 750M monthly users worldwide, making it the third largest social media network. About 34% of travelers were also influenced by TikT ok in 2022, an increase of 10 percentage points from the previous year, according to a “Portrait of American Travelers, ” an annual survey by MMGY Global.

Travel organizations and practitioners will continue investing resources on TikT ok in order to reach global audiences. Small accounts on the platform have as much of an opportunity to go viral and stack video views as very large accounts because the TikT ok algorithm rewards creativity, authenticity, and uniqueness in travel discovery.

Food and Travel Magazine
The editors of Food and Travel Magazine saw TCM’s media blitz for the opening of OCMA and contacted the team about covering Costa Mesa.

In their winter 2022 issue, they highlighted the city’s foodie scene in a four-page feature titled “Costa Mesa: Where Food, Art & Culture Collide, ” which had an estimated 800K readership.

Press Clippings Sampling
Press Clippings Sampling
Video reels are by far the most viewed
and engaged content on TikTok,
Instagram, and Facebook, and TCM created more of them in 2022 than ever before.

Top 5
Best-Performing
Reels
Press Clippings Sampling
Major
national
coverage
Including NY
Times,
Forbes, LA
Times,
TimeOut and
more!
Press Clippings Sampling
Major
national
coverage
Including NY
Times,
Forbes, LA
Times,
TimeOut and
more!
Social Media Followers
@travelcostamesa
TikTok: 6 39 (started Oct 2021)
Instagram: 9,721 (+18.4% YOY)
Facebook: 6,485 (+4.7% YOY)
Twitter: 12,701 (-0.8% YOY)
Early decision making is where a lot
of our respondents talk about how
TikT ok influences their decision of
where to go and where to stay”
— Clayton Reid, CEO, MMGY Global

12.7K views, 457 likes
Lunar New Year at South Coast Plaza
11K views, 358 likes
Asian American and Pacific
Islanders Heritage Month at Anjin
8K views, 177 likes
Wild Goose T avern feature

7.5K views, 335 likes
The CAMP intro
7K views, 322 likes
The LAB intro
Going forward, TCM will keep creating original destination video content for social channels or acquire them from its partners. This area has been challenging in 2022 because the social media and content manager full-time position has been vacant for much of the year, and TCM’s influencer program has been on pause since November 2022. We look forward to getting the position filled in 2023 and return to full activity on these programs.
194
26 27// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

PR & MEDIA

COVERAGE
NBC California Live
TCM’s relationship with The Travel Mom brought an introduction to Laila Muhammad of NBC California Live, and she was invited to visit OCMA.

Muhammad produced a segment for her show at no cost to TCM, including an interview with the museum’s CEO Heidi Zuckerman. Airing at the end of 2022, the segment received 125K television viewers in L.A., San Diego, and San Francisco and 1.2M impressions online,with a total media value of $89K.

Growth of TikT ok
TikT ok can’t be overlooked in social media marketing. According to Insider Intelligence, the short-form video platform now hosts 750M monthly users worldwide, making it the third largest social media network. About 34% of travelers were also influenced by TikT ok in 2022, an increase of 10 percentage points from the previous year, according to a “Portrait of American Travelers, ” an annual survey by MMGY Global.

Travel organizations and practitioners will continue investing resources on TikT ok in order to reach global audiences. Small accounts on the platform have as much of an opportunity to go viral and stack video views as very large accounts because the TikT ok algorithm rewards creativity, authenticity, and uniqueness in travel discovery.

Food and Travel Magazine
The editors of Food and Travel Magazine saw TCM’s media blitz for the opening of OCMA and contacted the team about covering Costa Mesa.

In their winter 2022 issue, they highlighted the city’s foodie scene in a four-page feature titled “Costa Mesa: Where Food, Art & Culture Collide, ” which had an estimated 800K readership.

Press Clippings Sampling
Press Clippings Sampling
Video reels are by far the most viewed
and engaged content on TikTok,
Instagram, and Facebook, and TCM created more of them in 2022 than ever before.

Top 5
Best-Performing
Reels
Press Clippings Sampling
Major
national
coverage
Including NY
Times,
Forbes, LA
Times,
TimeOut and
more!
Press Clippings Sampling
Major
national
coverage
Including NY
Times,
Forbes, LA
Times,
TimeOut and
more!
Social Media Followers
@travelcostamesa
TikTok: 6 39 (started Oct 2021)
Instagram: 9,721 (+18.4% YOY)
Facebook: 6,485 (+4.7% YOY)
Twitter: 12,701 (-0.8% YOY)
Early decision making is where a lot
of our respondents talk about how
TikT ok influences their decision of
where to go and where to stay”
— Clayton Reid, CEO, MMGY Global

12.7K views, 457 likes
Lunar New Year at South Coast Plaza
11K views, 358 likes
Asian American and Pacific
Islanders Heritage Month at Anjin
8K views, 177 likes
Wild Goose T avern feature

7.5K views, 335 likes
The CAMP intro
7K views, 322 likes
The LAB intro
Going forward, TCM will keep creating original destination video content for social channels or acquire them from its partners. This area has been challenging in 2022 because the social media and content manager full-time position has been vacant for much of the year, and TCM’s influencer program has been on pause since November 2022. We look forward to getting the position filled in 2023 and return to full activity on these programs.
195
28 29// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // GROUP
SALES
Selling the City of Arts®
For the past several years, COVID-19 has challenged overall business and recovery. Late in 2022 into the start of 2023, it has become less of a concern due to successful social distancing practices, immunizations, and overall better health practices.

Although COVID-19 will continue to be a discussion in the meeting industry, wellness and mindfulness is predicted to be a bigger topic in 2023.

Normalization is another prediction for 2023. Internationally, Europe has somewhat normalized even though it is still four to five months behind the U.S. Visitation from Canada and Mexico is expected to increase again in 2023, while Japan and China have been replaced by France and Spain among the top 10 countries to travel to the U.S.

Pricing is a subject of concern as inflation is expected to remain elevated at least through 2023. Everyday costs for labor, gas, energy, and food pricing have contributed to hotel rates being higher than before the pandemic. And while budgets are flexing, costs remain the top concern according to new data from Cvent and the meetings group. One drawback to higher prices is the attendance levels at meetings and events will continue to lag.

Moving Forward
TCM has found group sales success by attending industry trade shows. In fiscal year 2022-23, its destination sales executive will have attended 12 trade shows, each carefully selected to target small- and mid-sized group business (10 to 300 room nights peak). For every show, attendees receive an email introduction prior to the trade show showcasing what Costa Mesa has to offer potential groups. One-on-one appointments are scheduled with follow-ups based on the needs of each particular group. Along with newly created collateral, the destination sales executive utilizes the new Meetings Guide, an invaluable resource for planners and a time-saving communicator.

It is not in our DNA to be alone, so
groups, now more than ever, yearn
for the chance to meet. ”
— Michael Dominguez, President and CEO,
Associated Luxury Hotel International
TCM will also host more familiarization (FAM) tours for meeting planners, big and small. In October 2022, it hosted 10 planners for the opening of the Orange County Museum of Art (OCMA), providing a tour of Costa Mesa’s hotels, restaurants, and attractions. Highlights of the trip included a performance of Hamilton at Segerstrom Center for the Arts (SCFTA) and a Moke cruiser tour of Costa Mesa street murals. Two more mini FAMs are planned, centered around performances of Mean Girls and Chicago at SCFTA.

By the Numbers
By the Numbers
TCM Sales Activity 2022-2023

ROOM NIGHTS BOOKED
ENDING February 2023
7,953

LEADS GENERATED
254

IN-PERSON SITE VISITS
37 LEAD ROOM NIGHTS
OF THE 254 LEADS GENERATED
73,899

ACCOUNTS
2,790
Solicitations
4,061
Moving forward, TCM will keep aligning with travel- and meeting-oriented associations and groups, reach out persistently to its growing database, and uncover new contacts for potential business. From July 2022 to February 2023, TCM generated 250+ leads representing 73,000+ room nights. TCM has booked 59 meetings and events (compared to 25 in fiscal year 2021-22) with 7,953 rooms contracted at its partnering hotels (compared to 4,799 in fiscal year 2021-22).

The focus will remain on generating hotel room nights in Costa Mesa, not only to bring in revenue for hotel partners, but also to provide ancillary revenue to other segments including restaurants, shopping, transportation, attractions, and more.

Every booked lead in Costa Mesa is an opportunity for businesses to benefit from it.

Current Memberships
• California DMO Alliance (formerly West Coast DMO Alliance) • California Society of Association Executives (CalSAE) • HelmsBriscoe
• Hospitality Performance Network (HPN)
• Orange County Sports Commission (OCSC)
196
28 29// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT // GROUP
SALES
Selling the City of Arts®
For the past several years, COVID-19 has challenged overall business and recovery. Late in 2022 into the start of 2023, it has become less of a concern due to successful social distancing practices, immunizations, and overall better health practices.

Although COVID-19 will continue to be a discussion in the meeting industry, wellness and mindfulness is predicted to be a bigger topic in 2023.

Normalization is another prediction for 2023. Internationally, Europe has somewhat normalized even though it is still four to five months behind the U.S. Visitation from Canada and Mexico is expected to increase again in 2023, while Japan and China have been replaced by France and Spain among the top 10 countries to travel to the U.S.

Pricing is a subject of concern as inflation is expected to remain elevated at least through 2023. Everyday costs for labor, gas, energy, and food pricing have contributed to hotel rates being higher than before the pandemic. And while budgets are flexing, costs remain the top concern according to new data from Cvent and the meetings group. One drawback to higher prices is the attendance levels at meetings and events will continue to lag.

Moving Forward
TCM has found group sales success by attending industry trade shows. In fiscal year 2022-23, its destination sales executive will have attended 12 trade shows, each carefully selected to target small- and mid-sized group business (10 to 300 room nights peak). For every show, attendees receive an email introduction prior to the trade show showcasing what Costa Mesa has to offer potential groups. One-on-one appointments are scheduled with follow-ups based on the needs of each particular group. Along with newly created collateral, the destination sales executive utilizes the new Meetings Guide, an invaluable resource for planners and a time-saving communicator.

It is not in our DNA to be alone, so
groups, now more than ever, yearn
for the chance to meet. ”
— Michael Dominguez, President and CEO,
Associated Luxury Hotel International
TCM will also host more familiarization (FAM) tours for meeting planners, big and small. In October 2022, it hosted 10 planners for the opening of the Orange County Museum of Art (OCMA), providing a tour of Costa Mesa’s hotels, restaurants, and attractions. Highlights of the trip included a performance of Hamilton at Segerstrom Center for the Arts (SCFTA) and a Moke cruiser tour of Costa Mesa street murals. Two more mini FAMs are planned, centered around performances of Mean Girls and Chicago at SCFTA.

By the Numbers
By the Numbers
TCM Sales Activity 2022-2023

ROOM NIGHTS BOOKED
ENDING February 2023
7,953

LEADS GENERATED
254

IN-PERSON SITE VISITS
37 LEAD ROOM NIGHTS
OF THE 254 LEADS GENERATED
73,899

ACCOUNTS
2,790
Solicitations
4,061
Moving forward, TCM will keep aligning with travel- and meeting-oriented associations and groups, reach out persistently to its growing database, and uncover new contacts for potential business. From July 2022 to February 2023, TCM generated 250+ leads representing 73,000+ room nights. TCM has booked 59 meetings and events (compared to 25 in fiscal year 2021-22) with 7,953 rooms contracted at its partnering hotels (compared to 4,799 in fiscal year 2021-22).

The focus will remain on generating hotel room nights in Costa Mesa, not only to bring in revenue for hotel partners, but also to provide ancillary revenue to other segments including restaurants, shopping, transportation, attractions, and more.

Every booked lead in Costa Mesa is an opportunity for businesses to benefit from it.

Current Memberships
• California DMO Alliance (formerly West Coast DMO Alliance) • California Society of Association Executives (CalSAE) • HelmsBriscoe
• Hospitality Performance Network (HPN)
• Orange County Sports Commission (OCSC)
197
30 31// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

EXECUTIVE COMMITTEE
Ronnie Dalgado CHAIRPERSON, GENERAL MANAGER
& VP OF OPERATIONS, Holiday Inn
Express & Suites Costa Mesa
Susan O’Brien Moore VICE PRESIDENT, GENERAL MANAGER,
Ayres Hotel Costa Mesa
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
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
Hugo Barba GENERAL MANAGER, Marriott
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
Debbie Megna DESTINATION SALES EXECUTIVE
Jessica Placentia OPERATIONS MANAGER
GROUP
SALES

TRAVEL COSTA MESA

LEADERSHIP
About OCSC
The county’s sports commission
is a valuable resource for TCM to
promote Costa Mesa’s fields and
facilities that boost group sales.

TCM, along with Destination
Irvine, Visit Huntington Beach,
Visit Anaheim, Travel Santa Ana,
Visit Laguna Beach, and other
local attractions (like OC Vibe,
OC Fair & Event Center and
Honda Center) will continue
to work with the OCSC to
encourage overnight group hotel
room nights. In 2022, the sports
commission produced 172 leads
and Costa Mesa received 10
of these. Venue availability and
restrictions continue to make it
challenging to secure fields and
venues in Costa Mesa.

T arget Markets
Due to shortened lead times brought on
by the pandemic, larger convention-type
meetings have been replaced with smaller,
short-term meetings. This is ideal for Costa
Mesa given the limited meeting spaces
among its hotels. According to Cvent, the
booking window is increasing with 22.8% of
TCM leads being more than 12 months out.

However, meetings within a four to six month
window (19.6%) are strong. Attendance is
also increasing with 31.5% of TCM leads
involving programs with 201+ attendees.

The following markets remain TCM’s focus:
• Association (State/Regional/National): Associations depend on annual meeting dues for their survival. Without these meetings, associations will either not survive, or they will need a new revenue stream to stay viable. Although these groups tend to be larger in size and more rate conscious, this is still great business for either mid-week or weekend. TCM will continue its membership with CalSAE and will continue to attend their largest show of the year Seasonal Spectacular. In addition, some of our other shows like Destination West and Smart Meetings will have opportunities to meet with association meeting planners and/or intermediaries who book this business. Visits to Sacramento are planned this fiscal year. • Corporate: Along with the many opportunities for corporate groups to meet, there are also opportunities, in this sector, for other types of travel like internal team meetings, on-site visits and monitoring and meeting and working with local customers. It will be important to be visible among our local corporations for this type of travel.
• Sports: The sports market is highly competitive in Orange County. We will continue to work with the OCSC in addition to the local colleges & universities for out-of-the-area visiting teams.
• SMERFE (Social, Military, Educational, Religious, Fraternal, and Ethnic): These groups are typically more price sensitive, and some can be larger in nature. A lot of these groups will meet on the weekends and/or are date flexible for any need dates that the city’s hotel partners may experience. TCM will continue to get these types of leads from groups that meet at the OC Fair & Event Center and work with off-site venues to house their social clientele. 198
30 31// TRAVEL COSTA MESA //// 2022-2023 ANNUAL REPORT //

EXECUTIVE COMMITTEE
Ronnie Dalgado CHAIRPERSON, GENERAL MANAGER
& VP OF OPERATIONS, Holiday Inn
Express & Suites Costa Mesa
Susan O’Brien Moore VICE PRESIDENT, GENERAL MANAGER, Ayres Hotel Costa Mesa
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
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
Hugo Barba GENERAL MANAGER, Marriott
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
Debbie Megna DESTINATION SALES EXECUTIVE
Jessica Placentia OPERATIONS MANAGER
GROUP
SALES

TRAVEL COSTA MESA

LEADERSHIP
About OCSC
The county’s sports commission
is a valuable resource for TCM to
promote Costa Mesa’s fields and
facilities that boost group sales.

TCM, along with Destination
Irvine, Visit Huntington Beach,
Visit Anaheim, Travel Santa Ana,
Visit Laguna Beach, and other
local attractions (like OC Vibe,
OC Fair & Event Center and
Honda Center) will continue
to work with the OCSC to
encourage overnight group hotel
room nights. In 2022, the sports
commission produced 172 leads
and Costa Mesa received 10
of these. Venue availability and
restrictions continue to make it
challenging to secure fields and
venues in Costa Mesa.

T arget Markets
Due to shortened lead times brought on
by the pandemic, larger convention-type
meetings have been replaced with smaller,
short-term meetings. This is ideal for Costa
Mesa given the limited meeting spaces
among its hotels. According to Cvent, the
booking window is increasing with 22.8% of
TCM leads being more than 12 months out.

However, meetings within a four to six month
window (19.6%) are strong. Attendance is
also increasing with 31.5% of TCM leads
involving programs with 201+ attendees.

The following markets remain TCM’s focus:
• Association (State/Regional/National): Associations depend on annual meeting dues for their survival. Without these meetings, associations will either not survive, or they will need a new revenue stream to stay viable. Although these groups tend to be larger in size and more rate conscious, this is still great business for either mid-week or weekend. TCM will continue its membership with CalSAE and will continue to attend their largest show of the year Seasonal Spectacular. In addition, some of our other shows like Destination West and Smart Meetings will have opportunities to meet with association meeting planners and/or intermediaries who book this business. Visits to Sacramento are planned this fiscal year. • Corporate: Along with the many opportunities for corporate groups to meet, there are also opportunities, in this sector, for other types of travel like internal team meetings, on-site visits and monitoring and meeting and working with local customers. It will be important to be visible among our local corporations for this type of travel.
• Sports: The sports market is highly competitive in Orange County. We will continue to work with the OCSC in addition to the local colleges & universities for out-of-the-area visiting teams.
• SMERFE (Social, Military, Educational, Religious, Fraternal, and Ethnic): These groups are typically more price sensitive, and some can be larger in nature. A lot of these groups will meet on the weekends and/or are date flexible for any need dates that the city’s hotel partners may experience. TCM will continue to get these types of leads from groups that meet at the OC Fair & Event Center and work with off-site venues to house their social clientele. 199
TRAVELCOSTAMESA.COM
200

TRAVEL COSTA MESA
(A Non-Profit Organization)

FINANCIAL STATEMENTS
For The Years Ended June 30, 2022 and 2021
with
INDEPENDENT AUDITORS’ REPORT THEREON
Attachment 2
201
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 ....................................................................................... 5-13 202
INDEPENDENT AUDITORS’ REPORT To the Board of Directors of Travel Costa Mesa Opinion 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, 2022 and 2021, and the related statements of revenue and expenses – cash basis for the years then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the assets, liabilities, and net assets – cash basis of the Organization as of June 30, 2022 and 2021, and revenue and expenses – cash basis for the years then ended in accordance with the cash basis of accounting described in Note 1. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (“GAAS”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Organization and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter - 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. Responsibilities of Management 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 and for 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. 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 203
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Organization’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control- related matters that we identified during the audit. KMJ Corbin & Company LLP Irvine, California February 9, 2023 204
TRAVEL COSTA MESA (A Non-Profit Organization) STATEMENTS OF ASSETS, LIABILITIES AND NET ASSETS - CASH BASIS See accompanying notes to financial statements 3

June 30, ASSETS 2022 2021
Cash $ 2,599,536 $ 2,219,851 LIABILITIES Current liabilities $ - $ - Commitments and contingencies NET ASSETS Net assets without donor restrictions 2,599,536 2,219,851 Total liabilities and net assets $ 2,599,536 $ 2,219,851 205
TRAVEL COSTA MESA (A Non-Profit Organization) STATEMENTS OF REVENUE AND EXPENSES - CASH BASIS See accompanying notes to financial statements 4

For The Years Ended June 30, 2022 2021 CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS Revenues and other income: Business improvement area assessment, net of handling fees $ 2,375,662 $ 962,654 PPP grant income - 88,050 Employee retention credit 42,000 42,000 California small nonprofit business grant - 25,000 Interest income 929 2,330 Net revenues and other income 2,418,591 1,120,034 Expenses: Hotel marketing funds 461,058 1,999 Marketing 569,591 323,350 Sales department (CRM, Meetings, Conferences, Tradeshows, Memberships/Dues, Travel, Site Visits, FAMs, Mileage and Parking) 129,581 - Group incentive program 31,500 - Salaries and benefits (6 employees) 718,245 568,544 General and administrative 128,931 172,428 Total expenses 2,038,906 1,066,321 Increase in net assets without donor restrictions 379,685 53,713 Net assets without donor restrictions, beginning of year 2,219,851 2,166,138 Net assets without donor restrictions, end of year $ 2,599,536 $ 2,219,851 206
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 5 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. 207
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 6 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, 2022 and 2021, 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, 2022 and 2021, 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, 2022 and 2021, 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 2018. 208
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 7 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, 2022 and 2021, 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% of the net revenues of the Organization for both of the fiscal years ended June 30, 2022 and 2021. Other income amounts received in the year ended June 30, 2022 consist of an employee retention credit amount received from the Internal Revenue Service totaling $42,000. Such amount is not conditional and has therefore been recorded as income. 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. 209
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 8 NOTE 1 – NATURE OF ACTIVITIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Recent Accounting Pronouncements 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, 2022, the Organization has $2,599,536 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. 210
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 9 NOTE 3 – CASH Cash consists of demand deposits at the following institutions as of June 30: 2022 2021 Citizens Business Bank $ 479,193 $ 639,346 Pacific Premier Bank 2,120,343 1,580,505 $ 2,599,536 $ 2,219,851 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 2022 and 2021, 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. NOTE 4 – HOTEL MARKETING FUNDS EXPENSE During portions of each of the fiscal years ended June 30, 2022 and 2021, 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 fiscal 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 $461,058 and $1,999 for fiscal years ended June 30, 2022 and 2021, 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 – GROUP INCENTIVE PROGRAM During the fiscal year ended June 30, 2022, the Organization implemented a group incentive program which is used for certain qualifying groups and was created to assist the Organization’s partners and the City with group business. The group incentive program funds totaled $31,500 during the year ended June 30, 2022. The fiscal 2022 group incentive funds were paid from the Organization’s bank reserves, not from the operating account. 211
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 10 NOTE 6 – 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, 2022 and 2021, marketing expenses totaled $569,591 and $323,350, respectively. Marketing expenses include online marketing, video and photography production, community sponsorships, brochures, print advertising and various promotions. NOTE 7 – STATEMENT OF FUNCTIONAL EXPENSES The statements of functional expenses for the years ended June 30 are as follows: 2022 2021 Program Activities General and Administrative Total Total (Summarized) Salaries and benefits $ 604,148 $ 114,097 $ 718,245 $ 568,544 Marketing 11,798 - 11,798 32,017 Hotel marketing funds 461,058 - 461,058 1,999 Online marketing 557,793 - 557,793 291,333 Sales department (CRM, Meetings, Conferences, Tradeshows, Memberships/Dues, Travel, Site Visits, FAMs, Mileage & Parking) 129,581 - 129,581 - Group incentive program 31,500 - 31,500 - Office lease, copier lease & janitorial service 24,273 4,867 29,140 83,850 Travel, meetings, conferences and mileage 20,822 - 20,822 2,534 Accounting and fees - 10,350 10,350 12,030 Insurance - 20,642 20,642 20,314 Dues and subscriptions - 10,065 10,065 33,202 Moving expenses - 9,344 9,344 - Office supplies - 8,185 8,185 942 Telephone, internet and IT 12,539 5,211 17,750 19,027 Banking charges - 325 325 70 Filing fee and state assessment - 139 139 151 Postage - 151 151 308 Parking - 382 382 - Recruiting services - 1,296 1,296 - Professional services - 340 340 - Total functional expenses $ 1,853,512 $ 185,394 $ 2,038,906 $ 1,066,321 212
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 11 NOTE 8 – PPP GRANT On February 22, 2021, the Organization 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 Organization met certain criteria. At June 30, 2021, the Organization 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 Organization received full forgiveness of the PPP note. NOTE 9 – 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. Employee Deferred Compensation As a result of declining operations following the outbreak of the coronavirus disease (“COVID- 19”), the Organization undertook certain cost cutting measures during the year ended June 30, 2021 which resulted in employee deferred compensation of approximately $95,000. The Organization has agreed to repay these wages back to the employees over a 6-month period, with the final installment paid in September 2022. As of June 30, 2022, the repayment amount due to employees totaled approximately $47,000. No liability has been recorded for this commitment in the accompanying statement of assets, liabilities, and net assets – cash basis as of June 30, 2022. 213
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 12 NOTE 9 – COMMITMENTS AND CONTINGENCIES, continued 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 the fiscal years ended June 30, 2022 and 2021 totaled $29,140 and $83,850, respectively. Future minimum lease obligations as of June 30, 2022 consist of the following: Years Ending June 30, 2023 $ 40,685 2024 41,445 2025 14,160 $ 96,290 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. 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 10 – 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, 2022 and 2021, Safe Harbor contributions totaled approximately $15,000, which are recorded in salaries and benefits in the accompanying statements of revenue and expenses – cash basis. 214
TRAVEL COSTA MESA (A Non-Profit Organization) NOTES TO FINANCIAL STATEMENTS For The Years Ended June 30, 2022 and 2021 13 NOTE 11 – 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 12 – SUBSEQUENT EVENTS Management has evaluated and determined that no other events have occurred through February 9, 2023, the date that the financial statements were issued, which would require inclusion or disclosure in its financial statements, except as disclosed herein. 215
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Resolution No. 2023-xx Page 1 of 10

RESOLUTION NO. 2023-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 2023-24 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 HEREBY FINDS AND DECLARES 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, create 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, att ached 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 216
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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 pro ceedings 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 2, 202 3 City Council meeting filed with the City Clerk set forth a detailed description of the activities to be provided in the 2023-24 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 3-24 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 b y 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 217
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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 2023-24 shall be 7:00 p.m. on June 7, 2023. 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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(f) If written protests 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 cause 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 7, 2023 public hearing.

PASSED AND ADOPTED this 2nd day of May, 2023.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney

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Resolution No. 2023-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 3-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 2nd day of May, 2023, 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 2nd day of May, 2023.

___________________________
Brenda Green, City Clerk
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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 2023-2024.

The following businesses will be included in the BIA that is established 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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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

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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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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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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 b usinesses commenced after the effective date of this resolution will be exempt from the levy of assessment.

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1149 Meeting Date: 5/2/2023
TITLE:

LICENSE PLATE READER CAMERA MOBILE SYSTEM
DEPARTMENT: PUBLIC WORKS DEPARTMENT/ TRANSPORTATION

SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: JENNIFER ROSALES, TRANSPORTATION SERVICES MANAGER, (714) 754-5343
RECOMMENDATION:

Staff recommends the City Council:

1. Authorize the use of National Cooperative Purchasing Alliance (NCPA) Contract #05-81 with IPS Group, Inc. for the purchase of a License Plate Reader Mobile System.

2. Authorize the purchase of the License Plate Reader Mobile System, in the amount of $127,085.74 through National Cooperative Purchasing Alliance.

BACKGROUND:

At the July 19, 2022 regular meeting, the City Council approved the amendments to the Costa Mesa Municipal Code (CMMC) incorporating proposed changes to the Residential Permit Parking (RPP) program through a Public Hearing process. A Professional Services Agreement with Data Ticket Inc. for parking citation processing services was entered into agreement on January 1, 2022. Amendment No. 1 to this agreement was approved by the City Council on January 17, 2023 to add the RPP program into the City’sexisting parking citation management system database and provide an online permit application program for residential parking permits. The online residential permit parking portal and management system database is under development and anticipated to be complete at the end of April.

ANALYSIS:

In order to implement the revised RPP program, the purchase of License Plate Reader Recognition (LPR) cameras and associated equipment are needed for installation on four (4) Police Department vehicles. The use of mobile license plate recognition technology will significantly improve enforcement efficiency and coverage by automating enforcement processes. Instead of verifying that each vehicle has a valid physical permit displayed, the LPR system will automate the process by using the license plate number as the permit identifier with real-time information and is compatible with the permit management system database under development by Data Ticket Inc. These LPR cameras will enable Police Department parking enforcement officers to enforce residential permit

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File #: 23-1149 Meeting Date: 5/2/2023
cameras will enable Police Department parking enforcement officers to enforce residential permit parking, time-limited parking, abandoned vehicle abatement, and continue to identify stolen vehicles using the LPR system. This will enhance enforcement efficiency and support the implementation of virtual residential parking permits and other plate-based solutions.

LPR technology will optimize operations and is an important parking management tool that improves enforcement efficiency and coverage. The LPR Mobile System purchase includes installation, system start-up and configuration, training, and client portal software for synchronization with the permit parking management system.

Purchasing the LPR Mobile System and equipment through the National Cooperative Purchasing Alliance meets all requirements set forth in the City of Costa Mesa’s Purchasing Policy and all requirements set forth by the State of California in regards to regional cooperative purchasing agreements. IPS Group, Inc. is established in an approved vendor list following a nationwide competitive bid process. This assures that the City receives the lowest available pricing and meets the competitive bid process requirements. The total cost for four LPR cameras including all installation and setup costs is $127,085.74.

ALTERNATIVES:

The City Council may elect to not approve the LPR Mobile System and equipment purchase.

However, this would result in delays in the implementation of the revised RPP program, as staff would need to secure the LPR Mobile system for enforcement from another vendor for this purpose.

In addition, another vendor’sLPR Mobile system may not be compatible with the Police Department’s existing parking citation management system and the residential parking permit management system under development.

FISCAL REVIEW:

Funding for the implementation of the revised Citywide Residential Permit Parking program was approved in the FY 2022-23 budget. The cost of the LPR Mobile System and equipment is $127,085.74 which will be absorbed in the Public Work’sdepartment FY 2022-23 budget. There will be annual recurring costs of $13,300 for FY 2023-24 through FY 2026-27 which will be funded by fees collected through the RPP program and approved through the budget process.

LEGAL REVIEW:

The City Attorney’s Office has reviewed this report and approves it as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goals:
· Achieve long-term fiscal sustainability
· Strengthen the public’s safety and improve the quality of life · Advance environmental sustainability and climate resiliency

227
File #: 23-1149 Meeting Date: 5/2/2023
CONCLUSION:

Staff recommends the City Council:

1. Authorize the use of National Cooperative Purchasing Alliance (NCPA) Contract #05-81 with IPS Group, Inc. for the purchase of a License Plate Reader Mobile System.

2. Authorize the purchase of the License Plate Reader Mobile System, in the amount of $127,085.74 through National Cooperative Purchasing Alliance.

228
IPS-2022-121699567

7737 Kenamar Court,
San Diego, CA 92121
IPS Sales Quote
Rep P.O. No. Terms FOB Contract
RR Net 30 San Diego
Mobile System Hardware
Initial One Time Cost
Qty Item # Description
(4) Mobile LPR SYS-1
CDM-3-122-L5M
Mobile LPR 3-Camera L5M High-Definition System (Expandable to 4 Cams) Hardware:
● Qty=1 6mm lens package
● Qty=2 8mm lens package
● VLP-5200 Processing Unit
● Wiring harness w/ ignition control (Direct to Battery) o Single point power connection
● Field installed GPS antenna
Software:
● CarDetector Mobile LPR software application for MDC unit o LPR vehicle license plate scanning / real time alerting o Full suite of LPR tools including video tool set
Subtotal Price (Excluding sales tax) $48,000.00
Qty Item # Description
(12) CAM-MOUNT-FLAT-

ASSY-SET
Universal LPR Camera Mounting Bracket
● RAM Ball Mount with Flat Base
● Mounted directly to vehicle surface
o Requires drilling
● Includes Locking Plate, Thumb Screw and Locking Screw ● One per camera
Subtotal Price (Excluding sales tax) $1,800.00
Date Quote # Customer Sub-Contractor
2/16/2023 IPS-2022-
121699567
IPS Group (1) None
ATTACHMENT 1
229
IPS-2022-121699567

Qty Item # Description
(4) VS-TBLT-301Y-KIT Vigilant Tablet Kit - 301Y
● 10.1" Rugged Tablet with Intel 8th Generation Core i7 processor o Touch screen
o Power Supply
● Docking Station
● GPS/LTE Antenna
● Mouse
● Mounting Hardware
● Keyboard Sold Separately
Subtotal Price (Excluding sales tax) $16,000.00
Qty Item # Description
(4) TAB-CTAHO-01 RAM Base Plate and Pole for Chevy Tahoe ● RAM Base Plate and Pole for Chevy Tahoe for mounting of the docking station and keyboard/mouse
Subtotal Price (Excluding sales tax) $1,720.00
On Site Field Commissioning and Installation
Qty Item # Description
(4) SSU-SYS-COM Vigilant System Start Up & Commissioning of 'In Field' LPR system ● Vigilant technician to visit customer site
● Includes system start up, configuration and commissioning of LPR system ● Includes CDM/CDF Training
● Applies to mobile (1 System) and fixed (1 Camera) LPR systems Subtotal Price (Excluding sales tax) $3,980.00
Qty Item # Description
(4) VS-Install Installation of 4-camera mobile LPR system ● One-time cost
Subtotal Price (Excluding sales tax) $7,600.00
Qty Item # Description
(1) VS-TRVL-01 Vigilant Travel via Client Site Visit
● Vigilant certified technician to visit client site
● Includes all travel costs for onsite support services Subtotal Price (Excluding sales tax) $1,550.00
Vigilant Hosted Account Setup
Qty Item # Description
(1) SSU-LN-COM Vigilant Start Up & Configuration of Hosted/Managed Server Account ● New client account setup
● Required for all hosted/managed client accounts
Subtotal Price (Excluding sales tax) $1,275.00
ATTACHMENT 1
230
IPS-2022-121699567

Qty Item # Description
(1) VS-CLIENTPORTAL-
H
Client Portal Account
● Vigilant Client Portal account for management of client-owned LPR data and systems
● Management of users, data sharing and access control permissions ● Use of Vigilant's patented analytic tools
Subtotal Price (Excluding sales tax) $0.00
Parking Enforcement Toolkit and Parking Integrations - Year One Annual Recurring Fees
Qty Item # Description
(3) VS-VPS-PI-INT Parking Integration
● Enables integration for payment validation using LPR
● Integration allows for credentials to be entered into the Client Portal software for synchronization of parking locations and paid vehicles to Vigilant LPR systems ● Annual fee, per integration
Subtotal Price (Excluding sales tax) $3,000.00
Qty Item # Description
(4) VS-VPS-PT-01 Parking Enforcement System Toolkit
● Annual fee per-system
● Toolkit enables Vigilant LPR systems to receive alerts on chalking (timed parking) violations as well as whitelist violations for vehicles that have not paid, do not have permits, or are otherwise not on a registered list of vehicles ● Included with a Vigilant Mobile System Subscription
Subtotal Price (Excluding sales tax) $4,000.00
Shipping / Freight
FedEx Ground
Qty Item # Description
(4) VS-SHP-01 Vigilant Shipping Charges - Mobile
● Applies to each Mobile LPR System
● Shipping Method is FOB Shipping
Subtotal Price (Excluding sales tax) $520.00
ATTACHMENT 1
231
IPS-2022-121699567

Vigilant Camera Licenses Fees - Year One
Qty Item # Description
(1) VSBSCSVC-04 Vigilant LPR Basic Service Package for Hosted/Managed LPR Deployments ● Managed/hosted server account services by Vigilant
o Includes access to all LEARN or Client Portal and CarDetector software updates
● Priced per camera per year for over 60 total camera units ● Requires new/existing Enterprise Service Agreement (ESA) Subtotal Price (Excluding sales tax) $3,300.00
Optional Extended Warranty
Qty Item # Description
(4) CDMS34HWW 3-Camera Mobile LPR System - Extended Hardware Warranty - Years 2 through 5 ● Full mobile LPR hardware component replacement warranty ● Applies to 3-Camera hardware system kit
● Valid for 4 years from standard warranty expiration
Subtotal Price (Excluding sales tax) $25,200.00

Quote Notes:

1. All prices are quoted in USD and will remain firm and in effect for 60 days.

2. Returns or exchanges will incur a 15% restocking fee.

3. Orders requiring immediate shipment may be subject to a 15% QuickShip fee.

4. All hardware components to have standard One (1) year hardware warranty.

5. All software to have standard one (1) year warranty for manufacturer defects.

6. Motorola's Master Customer Agreement and all applicable addenda, available at https://www.motorolasolutions.com/en_us/about/legal.html shall govern the products and services, and is incorporated herein by this reference.

7. System proposed can perform permit, time limit, and scofflaw enforcement.

8. Sales Tax is not included in the quote.

9. Does not include in-vehicle cellular hotspot (MIFI / Cradlepoint)

10. You have one year of factory warranty with every purchase. Extended warranty is available for years 2-5. This purchase must be made with the original procurement or within the year one factory warranty period for all the additional years you wish to cover. It is not a year by year renewal.

11. Installation has been included as part of this proposal.

12. NCPA Contract # 05-81

13. Total Price $117,945.00 (Excluding sales tax)

ATTACHMENT 1
232
IPS-2022-121699567

Annual Recurring Costs
Line Item Year 2 Year 3 Year 4 Year 5
CLK (Software) $6,300 $6,300 $6,300 $6,300
Integrations $3,000 $3,000 $3,000 $3,000
Parking Toolkit $4,000 $4,000 $4,000 $4,000
Total $13,300 $13,300 $13,300 $13,300

Signature
Phone # Fax # E-mail
858-568-7648 858-408-7839 [email protected]

ATTACHMENT 1
233

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1154 Meeting Date: 5/2/2023
TITLE:

RESOLUTION TO EXECUTE RIGHT-OF-WAY CERTIFICATIONS WITH THE CALIFORNIA

DEPARTMENT OF TRANSPORTATION (CALTRANS)
DEPARTMENT: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: SEUNG YANG, P.E., CITY ENGINEER (714) 754-5633 RECOMMENDATION:

Staff recommends the City Council adopt Resolution No. 2023-xx (Attachment 1) authorizing the Public Works Director or designee(s) to execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, and/or Fund Transfer Agreements, including Right-of-Way Certifications, and any other certifications, amendments, and documents to facilitate processes related to the California Department of Transportation (Caltrans) and Federal Highway Administration (FHWA).

BACKGROUND:

The City of Costa Mesa (City) is eligible to receive Federal and/or State funding for certain transportation projects, through the California Department of Transportation (Caltrans) through various federal and state funding sources. Caltrans requires that agreements and right-of-way (ROW) certifications with other documents need to be signed by City staff as designated by City Council resolution authorizing designees to execute said agreements and ROW certifications.

On January 2, 2007, the City Council passed Resolution No. 07-01 (Attachment 2) entering into a revised 2006 Master Agreement No. 12-5312R that authorized the City Manager and the Director of Public Services (now Public Works Director) to execute future revisions to the Master Agreement on behalf of the City. However, the language in the resolution as well as previously required provisions of the Intermodal Surface Transportation Efficiency Act (ISTEA) are no longer applicable. Therefore, a new resolution is required that properly authorizes execution of ROW certifications.

ANALYSIS:

For all Federal and State funded projects, the Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, and/or Fund Transfer Agreements will need to be executed with Caltrans before such funds can be claimed. The City will work on projects within a reasonable time after receipt of notification from the State that funds have been approved. These projects will be carried to completion with reasonable diligence and will comply with the provisions of the California Environmental Quality Act (CEQA), the National Environmental Policy Act (NEPA), the Americans with Disabilities Act (ADA), and any other federal, state, and/or local laws, rules and/or

234
File #: 23-1154 Meeting Date: 5/2/2023
Americans with Disabilities Act (ADA), and any other federal, state, and/or local laws, rules and/or regulations where applicable.

The proposed resolution authorizes the Public Works Director or designee(s) to execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, Fund Transfer Agreements, and any amendments thereto, and also authorizes ROW certifications and any other certifications and documents to facilitate Caltrans and FHWA processes.

This resolution would also apply to Caltrans funded projects.

ENVIRONMENTAL DETERMINATION:

The proposed action is Categorically Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15306, 15307 and 15308 of the CEQA Guidelines.

ALTERNATIVES:

The City Council may elect not to adopt the proposed resolution. However, this alternative is not recommended as this may jeopardize or delay the City’s ability to secure Federal and/or State funding for street improvement and transportation projects.

FISCAL REVIEW:

There are no fiscal impacts associated with this item. Projects receiving Federal and State grant funds are included in the Capital Improvement Program (CIP) along with match requirements and are approved through the budget process.

LEGAL REVIEW:

The City Attorney’sOffice has reviewed this agenda report and resolution and approves them both as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goals:
· Strengthen the Public's Safety, and Improve the Quality of Life · Maintain and Enhance the City’s Infrastructure, Facilities, Equipment and Technology CONCLUSION:

Staff recommends the City Council adopt Resolution No. 2023-xx authorizing the Public Works Director or designee(s) to execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, and/or Fund Transfer Agreements, including Right-of-Way Certifications, and any other certifications, amendments, and documents to facilitate processes related to the California Department of Transportation (Caltrans) and Federal Highway Administration (FHWA).

235
ATTACHMENT 1

RESOLUTION NO. 2023-XX

RESOLUTION AUTHORIZING THE PUBLIC WORKS

DIRECTOR OR DESIGNEE (S) TO EXECUTE ALL

RELATED AGREEMENTS, CERTIFICATIONS,

AMENDMENTS, AND DOCUMENTS TO FACILITATE

PROCESSES RELATED TO THE CALIFORNIA

DEPARTMENT OF TRANSPORTATION (CALTRANS) AND

FEDERAL HIGHWAY ADMINISTRATION (FHWA)
WHEREAS, the City of Cost Mesa is eligible to receive Federal and/or State funding for certain Transportation Projects, through the California Department of Transportation (Caltrans); and
WHEREAS, Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements need to be executed with Caltrans before such funds could be claimed; and
WHEREAS, right-of-way certifications, amendments, and any other certifications need to be executed with Caltrans before such funds can be claimed; and WHEREAS, the City of Costa Mesa will cause work on a project to be commenced within a reasonable time after receipt of notification from Caltrans that funds have been approved and that the project will be carried to completion with in reasonable time and diligence; and
WHEREAS, the City of Costa Mesa will comply, where applicable, with provisions of the California Environmental Quality Act (CEQA), the National Environmental Policy Act (NEPA), the Americans with Disabilities Act (ADA), and any other F ederal, state and/or local laws, rules and/or regulations.

NOW, THEREFORE, the City Council of the City Costa Mesa hereby resolves as follows below:

Section 1. The City of Costa Mesa hereby authorizes the Public Works Director or designee(s) to execute all Master Agreements, Pr ogram Supplemental Agreements, F und Exchange Agreements, and/or Fund Transfer Agreements, including Right-of-Way Certifications , and any other certifications , amendments, and documents to facilitate processes related to the California Departm ent of Transportation (Caltrans) and Federal Highway Administration (FHWA). 236
ATTACHMENT 1

Section 2. The City of Costa Mesa agrees to fund any additional costs over the identified programmed amount.

APPROVED AND ADOPTED by the City Council of the City of Costa Mesa at its regularly scheduled meeting held on the 18th day of April, 2023.

John Stephens
Mayor
ATTEST:

Brenda Green
City Clerk
237
ATTACHMENT 1

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, California, DO HEREBY CERTIFY that the foregoing resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 18 th day of April, 2023, and that it was so adopted by called vote as follows:

AYES:

NOES:

Brenda Green
City Clerk
238
RESOLUTION NO. 07- 1

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF COSTA MESA, CALIFORNIA, APPROVING THE

REVISED MASTER AGREEMENT ADMINISTERING

AGENCY- STATE AGREEMENT FOR FEDERAL AID

PROJECTS AND AUTHORIZING THE CITY MANAGER

AND DIRECTOR OF PUBLIC SERVICES TO SIGN

FUTURE MODIFICATIONS AND PROGRAM

SUPPLEMENT AGREEMENTS TO THE ADMINISTERING
AGENCY- STATE AGREEMENT.

WHEREAS, the City of Costa Mesa entered into a Master Agreement, Administering Agency-State Agreement No. 12-5312, for Federal-aid projects, modified November 29, 1995; and June 25, 1997; and
WHEREAS, the City of Costa Mesa has been asked to approve and execute a revised 2006 Master Agreement, now numbered 12-5312R, and Program Supplement Agreement No. 050- N; and
WHEREAS, this revised Master Agreement reflects new provisions of the Intermodal Surface Transportation Efficiency Act ( ISTEA) and the reengineered local assistance procedures; and
WHEREAS, in the past, the City of Costa Mesa has entered into an Administering Agency- State Agreement with the California Department of Transportation ( CALTRANS) fortransportationconstructionprojectsinvolvingStateand local funds; and
WHEREAS, program supplements require authorizing signatures from City officials; and
WHEREAS, it would benefitthe Cityto authorizethe Directorof Public Services to continue to sign program supplements under the modified Master Agreement of 2006;
WHEREAS, it would benefitthe Cityto authorizethe CityManagerto execute future revisions to the Master Agreement;
NOW, THEREFORE, BE IT RESOLVED that the 2006 Master Agreement Administering Agency State Agreement for Federal Aid Projects, No. 12- 5312R, and the ATTACHMENT 2
239
ProgramSupplementAgreementNo. 050-Narehereby approvedandtheCityManager is authorized to sign the Master Agreement as revised and Program Supplement Agreement No. 050- N;
BE IT FURTHER RESOLVED that the Director of Public Services is hereafter authorized to sign program supplements to Master Agreement No. 12-5312R, and the City Manager is authorized to execute future revisions to the Master Agreement on behalf of the City.

PASSED AND ADOPTED this
2nd
day of January, 2007
0L ,/
Allan R. Mansoor, Mayor
ATTEST: APPROVED AS TO FORM:
31a 4,e--(
6J
Juli olcik, City Clerk KimberlyHall Barlow, City Attorney 2 ATTACHMENT 2
240

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )
I, JULIE FOLCIK, City Clerkof the City of Costa Mesa, DO HEREBY CERTIFY thattheaboveandforegoingisthe originalof ResolutionNo. 07-1 andwas dulypassed andadoptedbytheCityCounciloftheCityof CostaMesaata regularmeetingheldon the
2nd
day of January, 2007, by the followingrollcall vote, to wit:

AYES: COUNCIL MEMBERS: MANSOOR, BEVER, DIXON, LEECE NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: FOLEY
INWITNESSWHEREOF, I haveherebyset myhandandaffixed thesealof the City of Costa Mesa this
3rd
day of January, 2007.
c-
46, 0

LIE FOLCIK, CITY CLERK
SEAL)
3 ATTACHMENT 2
241

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1183 Meeting Date: 5/2/2023
TITLE:

AUTHORIZE THE USE OF SOURCEWELL’S NATIONAL COOPERATIVE AGREEMENT 032119 WITH QUINN COMPANY FOR THE PURCHASE OF ONE (1) NEW CATERPILLAR INC. MODEL:
308 EXCAVATOR AND ONE (1) CATERPILLAR INC. MODEL: 262D3 SKID STEER LOADER DEPARTMENT: PUBLIC WORKS/MAINTENANCE SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: ROBERT RYAN, MAINTENANCE SERVICES MANAGER, (714) 327-7499
RECOMMENDATION:

Staff recommends the City Council authorize the use of Sourcewell’sCooperative Agreement No. 032119 with Caterpillar Inc. for the purchase of one (1) Caterpillar In. Model: 308 Excavator; and one (1) Caterpillar Inc. Model: 262D3 Skid Steer Loader for $294,235.37 from Quinn Company.

BACKGROUND:

Consistent with past practices, new and/or replacement vehicle and equipment requests are evaluated during the annual budget process along with Equipment Maintenance staff recommendations. Staff identified the subject equipment, an Excavator and a Skid Steer Loader, for replacement as part of Fiscal Year 2022-23 Budget.

The Maintenance Services Division is responsible for the care, maintenance, repair and alteration of the City's parks and parkways, trees, traffic signs and markings, street sweeping, storm water systems, and roadways. The division depends on a variety of heavy equipment including, but not limited to, four tractors that perform a variety of work associated with that maintenance.

The four City-owned tractors currently supporting the Maintenance Service Division are all older models that break down regularly and require constant maintenance. The acquisition of parts and support services for these pieces of equipment is challenging. Some parts have been discontinued and are obsolete.

ANALYSIS:

The purchase of the subject two (2) pieces of equipment will upgrade the City’sfleet of operable equipment and will facilitate the maintenance work to City infrastructure, thereby improving the City’s ability to serve the community and its stakeholders. The procurement of the excavator and skid steer loader replaces four old City-owned tractors, decreasing the City’sfleet by two pieces of equipment.

This will improve efficiencies and decrease maintenance costs.

242
File #: 23-1183 Meeting Date: 5/2/2023
Purchasing the equipment through Sourcewell meets all requirements outlined in the City of Costa Mesa’s Purchasing Policy and all requirements set forth by the State of California in regard to regional cooperative purchasing agreements. Sourcewell established an approved vendor list following a nationwide competitive bid process. This process confirms that the City still receives the lowest available pricing and meets the competitive bid process requirements. The City has utilized Sourcewell successfully for several previous related purchases.

The Quinn Company, an authorized Sourcewell dealer, provided quotes and specifications for the subject equipment and are included in Attachment 1. The quotes total an amount of $294,235.37, including applicable taxes and delivery.

ALTERNATIVES:

The City Council could choose not to authorize the use of the cooperative agreement with Caterpillar Inc. This will require staff to initiate a formal procurement process, which will take significantly more time to complete. In addition, a formal procurement may not result in lower prices than the proposed Sourcewell pricing.

FISCAL REVIEW:

The purchase of these two tractors were approved in the Fiscal Year 2022/2023 budget and funded through the Vehicle Replacement Fund.

LEGAL REVIEW:

The City Attorney’s Office has reviewed this report and approves it 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 authorize the use of Sourcewell’sCooperative Agreement No. 032119 with Caterpillar Inc. for the purchase of one (1) Caterpillar In. Model: 308 Excavator; and one (1) Caterpillar Inc. Model: 262D3 Skid Steer Loader for $294,235.37 from Quinn Company.

243

QUINN ID
156200-01
January 17, 2023

CITY OF COSTA MESA
PO BOX 1200
COSTA MESA, California 92626
Attention: BRENDAN CARPENTER
ATTACHMENT 1
Quote 156200-01
Quinn Company would like to thank you for your interest in our company and our products, and are pleased to quote the following for your consideration.

One (1) New Caterpillar Inc. Model: 26203 Skid Steer Loader STOCK NUMBER: SERIAL NUMBER: YEAR: 2023
Quinn Company would like to thank you for the opportunity of quoting on your equipment needs. This quotation is valid for 30 days, ----after which time we reserve the right to re-quote. If there are any questions, please do not hesitate to contact me.

Sincerely,
---------- - -- --- -- -- - -
Jeff Liebl
Governmental Machine Sales Representative
714 713-5110
[email protected]
1 244
One (1) New Caterpillar Inc. Model: 262D3 Skid Steer Loader Standard Equipment

POWERTRAIN
Cat C3.3B diesel engine
-Gross horsepower per SAE J1349

74.3 hp (55.4 kW)@2400 RPM
-Electric fuel priming pump
-Glow plugs starting aid
-Liquid cooled, direct injection
- ---· ---- -····Air cleaner, dual element, radial seal S-0-S sampling valve, hydraulic oil
Filter, cartridge type, hydraulic

HYDRAULICS
ISO or H pattern controls:

Electro/hydraulic implement control

ELECTRICAL
12 volt electrical system
BO ampere alternator
Ignition key start/stop/aux switch
------1-ight .
-Gauge backlighting

OPERATOR ENVIRONMENT
Operator warning system indicators:
-Air filter restriction
-Alternator output
-Armrest raised/operator out of seat
-Engine coolant temperature
· ---Engine oil pressure
-Glow plug activation
-Hydraulic filter restriction
-Hydraulic oil temperature
-Park brake engages
-Engine emission system
Gauges: fuel level and hour meter
Storage compartment with netting
Ergonomic contoured armrest
Control interlock system, when operator
FRAMES
Lift linkage, vertical path
Filters, canister type, fuel
and water separator
Radiator/ hydraulic oil
cooler (side-by-side)
Spring applied, hydraulically released,
parking brakes
Hydrostatic transmission
Four wheel chain drive
Electro/hydraulic hydrostatic
transmission control
-Two rear tail lights
-Dome light
Backup alarm
Ele-ctrical-oatl'er,b·eacon
leaves seat or armrest raised:
-Hydraulic system disables
-Hydrostatic transmission disables
-Parking brake engages
ROPS cab, open, tilt up
Anti-theft security system w/6-button
keypad
FOPS, level I
Top and rear windows
Floormat
Interior rear view mirror
USB charging port
Horn
Hand (dial) throttle, electronic
Belly pan cleanout
Quote 166200-01
2 245
Chassis, one piece welded
Machine tie down points (6)

OTHER STANDARD EQUIPMENT
. . . .... __ .. Engine enclosure - lockable
Extended life antifreeze (-37C, -34F)
Work tool coupler
Hydraulic oil level sight gauge
Radiator coolant level sight gauge
Radiator expansion bottle
Cat ToughGuard TM hose

MACHINE SPECIFICATIONS
262D3 SKID STEER LOADER
------ - LANE 3 ORDER

CAB PACKAGE, ULTRA

RIDE CONTROL
BATTERY,HD,DISCONNECT, 850 CCA

REAR LIGHTS

DOOR, CAB, GLASS
SEAT BELT, 3"
PRODUCT LINK, CELLULAR PL243
TIRES, 12/16.5 CAT 10PR
CERTIFICATION ARR, P65

INSTRUCTIONS, ANSI, USA

SERIALIZED TECHNICAL MEDIA KIT

SHIPP/NG/STORAGE PROTECTION
ltM�EtrtEVEt;-ANS

FILM, RIDE CONTROL, ANSI
PACK. DOMESTIC TRUCK
BUCKET-GP, 74", BOCE
BUCKET-MP, 68", BOT
CARRIAGE, PAL C2, 46", SSL
FORK, PAL C2, 48" X 4" X 1.5"

SOLID TRACTION TIRES

WARRANTY & COVERAGE
Support. lift arm
Rear bumper, welded
Heavy duty flat faced quick disconnects
with integrated pressure release
Split D-ring to route work tool hoses
along side of left lift arm
Variable speed hydraulic cooling fan
Per SAE J818-2007 and EN 474-3:2006 and
ISO 14397-1:2007
512-4262
OP-9003
588-9091
556-5899
568-5602
356-6082
539-8060
542-6995
566-7115
185-8666
563-1163
512-3741
421-8926
OP-2266
2135=923
422-3445
OP-0210
279-5373
426-6487
351-9371
195-8545
Standard Warranty:

Extended Coverage:
24 MONTHS/ 2,000 HOURS FULL MACHINE
262-60 M0/2500 HR PREMIER (Tier 4)
CSA 36 MO/ 1,500 HOURS PARTS ONLY (INCLUDES SOS} (QUINN CVA) Quote 156200-01
3 246
Quote 156200-01

LIST PRICE
SOURCEWELL CONTRACT 032119 -21%

DISCOUNTED SALE PRICE

TIRE FEE
SALES TAX (7.75%)

AFTER TAX BALANCE

PAYMENT TERMS
Cash Invoice Terms
tet 10 Days
$94,403;27
F.O.B/TERMS:

Subject to Factory Order. Request to be submitted for order with signed quote. Lead time unknown untll order acknowledged by Caterpillar.

Accepted by ______________ on _______ _
OPTIONS:
....... Components
BROOM, UTILITY, BU115, BOCE

MOUNTING BRACKET, NOZZLE

KIT, WATER SPRINKLER
COLD PLANER, PC306
KIT, WATER SPRAY, PCX06/8
KIT, WATER TANK, 44 US GAL
Signature
Ref No. Qty
493-2258
257-3140
256-9335
529-5790
231-2591
571-6876
$110,894.62
-$23,287.87
$87,606.75
$7.00
$6,789.52
$94,403.27
Sell
$6,569.00
$35.00
$235.00
$26,319.00
$265.00
$2,340.00
4 247
QUINN
156206-02
Jan 12, 2023

CITY OF COSTA MESA
PO BOX 1200
COSTA MESA, California 92626
Attention: MIKE TUCKER
3'1'1
Quote 156206-02
Quinn Company would like to thank you for your interest in our company and our products, and are pleased to quote the following for your consideration.

One (1) New Caterpillar Inc. Model: 308 Excavator
STOCK NUMBER: NS0019176 SERIAL NUMBER: 0GG807833 YEAR: 2023 Quinn Company would like to thank you for the opportunity of quoting on your equipment needs. This quotation is valid for 30 days, ----after which time we reserve the right to re-quote. If there are any questions. please do not hesitate to contact me.

Sincerely,
Jeff Liebl
Governmental Machine Sales Representative
714 713-5110
[email protected]
5 248
Standard Equipment

POWERTRAIN
CAT C3.38 diesel engine
ISO 9249/EEC 80/1270
Rated net power 55kW/72hp
Automatic engine Idle
Automatic swing brake

UNDERCARRIAGE
Greased and lubricated track
Hydraulic track adjusters

HYDRAULICS
Smart tech electronic pump
Variable displacement piston pump
Load sensing/flow sharing hydraulics
Power on demand

ELECTRICAL
60 ampere alternator
850 CCA maintenance free battery
Battery disconnect
Circuit breaker
lgn iHon key stop switch

OPERATOR ENVIRONMENT
Sealed and pressurized cab
... ····--· ______ Ergonomic joysticks control levers
Adjustable wrist rests
Air conditioner/heater with defroster &
Automatic temp control
Coat hook
Color LCD monitor:
- Fuel level, coolant temp, & warning
indicators
- Maintenance and machine monitoring
- Performance & machine adjustments
- Numberic security code
- Multiple languages
- Hour meter
- Ground level wakeup switch
- Jog dial control interface
On& (1) New Caterpillar Inc. Model: 308 Excavator
Automatic two speed travel
Fuel water seperatdr with indicator
Radial seal air
filter
Double element with warning indicator
Extended life coolant - 37C
Tie down eyes on track frame
Hydraulic temperature monitoring
Accumulator - certified
Hydro advanced hydraulic oil
Signaling/Warning horn
Work lights
- Cab, boom left, front right
- Courtesy safety Ii ght
Hydraulic lockout for all controls
LED interior light
Literature holder
Mirror rear view - Cab left
Molded footrests
Openable front windshield with assist &
integragted lower window
Rear window emergency exit
Removable washable floor mat
Retractable seat belt
Seat, fabric, high back, suspension
Travel control pedals with hand levers
Utility space for mobile phone
Front post mounted windshield wiper &
washer
Skylight
Quote 156206-02
6 249
Cup holder
FLUIDS
Extended life coolant • 37C

OTHER STANDARD EQUIPMENT
Accumulator, certification
Caterpillar corporate "one key" system
Door locks on cab door and external
enclosure doors
Lockable fuel cap
Beacon Socket
Ecology drain -engine
Radial seal engine air filter, double
element with restriction indicator
______ Side by side engine & hydraulic oil
cooler
Hydraulic fluid temperature monitoring
Joystick travel and steering mode
Travel cruise control
Mounting bosses for front & top guard
Hydro advanced hydraulic oil
High definition hydraulics
- load sensing/flow sharing
Power on demand
Rear reflectors
Roll over protect ive structure (ROPS)
(ISO 12117-2)
Product link elite lite (regulations
apply)
Auxiliary hydraulic lines:
- 1-way and 2-way (combined function)
- Auxiliary line quick disconnects
- In cab adjustable auxiliary flow
- Continuous flow
Quote 156206-02
7 250

MACHINE SPECIFICATIONS
308 07A CR MHE DCA8D

DRAIN, ECOLOGY

HEATER, WATER JACKET

SEAT, AIR SUSP, FABRIC, HEATED
BELT, SEAT, 3" RETRACTABLE

ALARM, TRAVEL

MONITOR NEXT GEN, ADVANCED, CR

LIGHTS, LED

INTEGRATED RADIO

CAMERA, REAR VIEW
ELECTRICAL ARR, C3.3 HRC
308 07A CR MINI EXCAVATOR

BOOM, SWING

LINES, BOOM
------ LINES, STICK
LINES, QC, LNG STK, 3 LINE
ENGINE, EPA TIER 4 FINAL
CONTROL, QC, 3 LINE

CAT KEY, WITH PASSCODE OPTION

INSTRUCTIONS, ANSI

INSTRUCTIONS, CANADA

COUNTERWE IGHT, EXTRA

FILM, COUPLER, ISO

SOFTWARE, PROPORTIONAL CONTROL
SOFlWARE, STICK STEER CONTROL
SOFTWARE, 2 WAY CONTROL
SOFTWARE,1CODED START
RODUCTtlNK;""CEttUl:-ARPtE643

STD BLADE, STD U/C, TG W/PAD

STICK, LONG

LINKAGE, BUCKET W/ LIFTING EYE

EOU HOUSE SWING COVER, ST

WIRING GP

COVER GP

PLUG GP
LANE 2 ORDER

ATHENS DEALER PDI & FUEL
THUMB,HYD + COUPLER,PG,HYD, 8T
BUCKET-HD, 24", 8.1 FT3, 7T

SHIPPING/STORAGE PROTECTION

SERIALIZED TECHNICAL MEDIA KIT

PACKING, LAST MILE PROGRAM
BUCKET-HD, 18", 5.4 FT3, 7T
BUCKET-HD, 36", 13.8 FT3, 7T

PINS, BUCKET, SOMM
BRACKET, MHE 8T, 50MM, XL
BUCKET-GRADING, 47", 14.6FT3,7T
WHEEL, 18", 1/4 PL
615-9672
382-8757
415-2556
510-6070
510-6085
511-6157
511-6177
511-6217
511-6219
511-6235
511-6253
512-1401
512-2573
514-8055
514-8067
516-1613
518-6184
520-0778
522-6460
523-3993
523-9613
525-6657
555-8731
557-1709
557-1710
557-1711
557-1713
557=5"
1 2
562-3698
563-2071
568-1567
605-3340
604-0125
605-3336
605-3339
OP-9002
590-9287
504-6175
295-5952
OP-2266
421-8926
OP-4299
295-5951
295-5954
308-0324
564-9840
388-9666
517-6996
Quote 156206-02
8 251

WARRANTY & COVERAGE
Standard Warranty:

Extended Coverage·
CSA

LIST PRICE
24 MONTHS / 2,000 HOURS FULL MACHINE
60 MO/2500 HR PREMIER (Total Machine)
36 MO/ 1,500 HOURS PARTS ONLY (Filter Kits for first 3 Services) SOURCEWELL CONTRACT 032119 DISCOUNT -20%

DISCOUNTED SALE PRICE
SALES TAX (7.75%)

AFTER TAX BALANCE

PAYMENT TERMS
Cash Invoice Terms
INET 10 DAYS
,$199,832.10
F.O.B/TERMS:

On order arriving end of January 12, 2023
Reservation with signed quote or PO
Quote 156206-02
$231,823.78
-$43,364.76
$185,459.02
$14,373.07
$199,832.10
9 252

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1181 Meeting Date: 5/2/2023
TITLE:

MICROSOFT ® ENTERPRISE AGREEMENT LICENSING COMPLIANCE
DEPARTMENT: INFORMATION TECHNOLOGY (I.T.) DEPARTMENT
PRESENTED BY: STEVE ELY, DIRECTOR
CONTACT INFORMATION: STEVE ELY, DIRECTOR, (714) 754-4891 RECOMMENDATION:

Staff recommends the City Council approve the true-up of the Microsoft ® Enterprise Agreement with SoftwareONE in the amount of $279,050.60.

BACKGROUND:

As part of its information technology practices, the City upgrades and deploys core City software in a timeframe that keeps City software versions at, or near, current commercial release versions. This practice helps to ensure that critical City software is current with security-related improvements and product enhancements.

In August 2012, the City entered into the initial three-year Enterprise Agreement with Microsoft ® through CompuCom. In August 2015, the City renewed the agreement for an additional three years, which expired on August 1, 2018. In August 2018, the City renewed the agreement for another three- year term, which expired on August 31, 2021. SoftwareONE acquired the CompuCom agreement in 2015.

On July 20, 2021, the City Council approved a three-year renewal of the Enterprise Agreement with Microsoft ® through SoftwareONE, Agreement Number: 8084445, Enrollment Number: 60026000 (Attachment Number 1) in the amount of not-to-exceed $289,729.80, payable in three annual payments of $96,576.60. The term of the agreement is from September 1, 2021, to August 31, 2024.

During the life of the agreement, the City has saved money through volume purchasing, and greatly simplifying licensing management and compliance. Software pricing is obtained through the County of Riverside Master Microsoft ® Enterprise Agreement Number 8084445, Select Plus Agreement Number 7756479, Microsoft ® Premier, Unified, and MCS Support Services (Licensing Solution Provider Agreement Number PSA-0001530).

253
File #: 23-1181 Meeting Date: 5/2/2023
ANALYSIS:

Microsoft ® Enterprise Agreement is a volume perpetual licensing program that enables organizations with 250+ users the flexibility to purchase cloud services, software licenses, and updates under one agreement at a lower price than when purchased separately. The City currently has an agreement through SoftwareONE for the following products:
· CoreCAL - Client Access Licenses
· Exchange Server Enterprise
· Office Professional Plus
· Microsoft ® Project
· SQL Server Standard Core
· Visio Professional
· Visual Studio Professional with MSDN
· Windows Server Datacenter Core 2-Processor
· Windows Server Standard Core 2-Processor
The agreement states the City is required to submit an annual true-up to account for new additions in its software usage since the anniversary date of the City’senrollment in the agreement. If there are no changes, an update statement must be submitted. This submittal is due 30 - 60 days prior to the City’s Enrollment Anniversary.

The true-up option is designed for customers with a significant number of licenses and a growing user base to seamlessly accommodate new users without the need to initiate individual transactions for each request.

A software asset management review (SAM) conducted in August 2022, determined the City has increased software usage. The Department worked with SoftwareONE to complete the review. With the addition of new employees and servers into the environment, the Department needs to align the Enterprise Agreement with the total number of licenses that the Department had added previously.

This true-up process was conducted by an inventory of all the qualified devices, users, and processors additions:
· 455 Core CAL ALng LSA UCAL
· 40 Exchange Ent CAL ALng LSA User CAL with Services
· 195 Office Professional Plus ALng LSA
· 118 Win Server DC Core ALng LSA 2L
· 29 Win Server Standard Core ALng LSA 2L
On March 23, 2023, the vendor submitted quote number 45008 (Attachment Number 2) in the amount of $279,050.60. This amount paid will bring the City into compliance with the terms of the Enterprise Agreement.

ALTERNATIVES:

If the City does not true-up to match the current license usage, the City would be out of compliance of the Microsoft ® Enterprise Agreement.

254
File #: 23-1181 Meeting Date: 5/2/2023
FISCAL REVIEW:

The $279,050.60 true-up is a one-time cost included in the Information Technology Department’s Fiscal Year 2022-23 Adopted Budget.

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 the following City Council’s goal:
· Maintain and Enhance the City’s Infrastructure, Facilities, and Equipment CONCLUSION:

Staff recommends the City Council approve the true-up of the Microsoft ® Enterprise Agreement with SoftwareONE in the amount of $279,050.60.

255
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257
258
259
260
261
262
263
264
265
266
267
268
269
270
Enterprise Enrollment Product Selection Form
EA-EASProdSelForm(WW)(ENG)

MS Quote Auto
Proposal ID Enrollment Number
1109822.003
Language: English (United States)
Enrolled Affiliate's Enterprise Products and Enterprise Online Services summary for the initial order:

Profile Qualified
Devices Qualified Users Device / User
Ratio Enterprise Product Platform CAL Licensing
Model
Enterprise 560 450 1.2

No User Licenses
Products Enterprise Quantity
Office Professional Plus
Office Professional Plus 560
Client Access License (CAL)
Core CAL
Core CAL 450
Enrolled Affiliate’s Product Quantities:

Price Group 1 2 3 4
Enterprise Products Office Professional Plus +
Office 365 ProPlus + Office
365 (Plans E3 and E5) +
Microsoft 365 Enterprise
Client Access License +
Office 365 (Plans E1, E3
and E5) + Microsoft 365
Enterprise
Client Access
License + Windows
Intune + EMS USL +
Microsoft 365
Enterprise
Win E3 + Win E5 +
Win VDA +
Microsoft 365
Enterprise
Quantity 560 450 450 0
Enrolled Affiliate’s Price Level:

Product Offering / Pool Price Level
Enterprise Products and Enterprise Online Services USLs: Unless otherwise indicated in associated contract documents, Price level set using the highest quantity from Groups 1 through 4. D Additional Product Application Pool: Unless otherwise indicated in associated contract documents, Price level set using quantity from Group 1. D
Additional Product Server Pool: Unless otherwise indicated in associated contract documents, Price level set using the highest quantity from Group 2 or 3. D
Additional Product Systems Pool: Unless otherwise indicated in associated contract documents, Price level set using quantity from Group 4. D
NOTES
271
Enterprise Enrollment Product Selection Form
EA-EASProdSelForm(WW)(ENG)

MS Quote Auto
Unless otherwise indicated in the associated contract documents, the price level for each Product offering / pool is set as descr bed above, based upon the quantity to price level mapping below:

Quantity of Licenses and Software Assurance Price Level 2,399 and below A
2,400 to 5,999 B
6,000 to 14,999 C
15,000 and above D
Note 1: Enterprise Online Services may not be available in all locations. Please see the Product List for a list of locations where these may be purchased.

Note 2: Unless otherwise indicated in associated Agreement documents, the CAL selection must be the same across the Enterprise for each Profile.

Note 3: If Enrolled Affiliate does not order an Enterprise Product or Enterprise Online Service associated with an applicable Product pool, the price level for Additional Products in the same pool will be price level “A” throughout the term of the Enrollment. Refer to the Qualifying Government Entity Addendum pricing provision for more details on price leveling. 272

City of Costa Mesa
Microsoft Volume Licensing - Channel Price Sheet - Final Pricing Quote Number: 1109822.003 Billing currency: USD
Creation Date: 8/23/2021 Term Of Agreement: 3 Years
Effective Duration: 30 days Opportunity ID:

Enrollment Number: Payment Schedule: Annual
Language: English (United States)
Price List Month: August 2021 Framework ID: US - California Unified GVT-E6 Indirect Enterprise Enrollment - Renewal Quote
Customer Contact
Adam Silva City of Costa Mesa
Phone: 714-754-5620 77 Fair drive, 1st Floor
Fax: Costa Mesa, CA, United States, 92626-6520
[email protected]
Partner Contact(s)
Reseller
MS dnu.Admin US SoftwareONE, Inc.

Phone: 262-317-5555 20875 Crossroads Circle, Suite 1
Fax: Waukesha, WI, United States, 53186-4093
[email protected]
Microsoft Contact
Jordan Stratton
701-492-3665
[email protected]
New Purchases
Purchase Order Information
Sections Purchase Order Number Purchase Order Date
Section 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Signature Date Name(Print) Title
Direct Partner (LAR)
Microsoft Affiliate
U S - P O - 1 1 3 4 5 3 5 08/27/2021 08/27/2021 Erick Chavez Operations Analyst
273
City of Costa Mesa
Quote Number:1109822.003
W0;PLSS0;B0;G0;Y0;R0;TL0;P0;BD0;BL0;BDSL0;BM0;BE0;E0;BV0;BDGM0;BOGM0

MS Quote Auto
Quote Summary
Summary Item Totals (USD)
Customer Earned Price (3 Years) 289,729.80
Total Credit Amount 0.00
Total Annual Payment Year 1 96,576.60
Total Annual Payment Year 2 96,576.60
Total Annual Payment Year 3 96,576.60
274
City of Costa Mesa
Quote Number:1109822.003
W0;PLSS0;B0;G0;Y0;R0;TL0;P0;BD0;BL0;BDSL0;BM0;BE0;E0;BV0;BDGM0;BOGM0

MS Quote Auto
SECTION 1 - Licenses and Software Assurance
Pricing & Usage Year 1
Product Description Part Number Net Unit Price (USD) License Quantity Usage Country Extended Amount (USD) Enterprise
OfficeProPlus ALNG SA MVL 269-05704 98.76 560 United States 55,305.60 CoreCAL ALNG SA MVL UsrCAL W06-00446 46 92 450 United States 21,114.00 Additional Products
Prjct Std ALNG SA MVL 076-01912 115.44 11 United States 1,269.84 VisioPro ALNG SA MVL D87-01159 98 88 4 United States 395.52 VSProSubMSDN ALNG SA MVL 77D-00111 303 24 1 United States 303.24 ExchgSvrEnt ALNG SA MVL 395-02504 715 80 1 United States 715.80 SQLSvrStdCore ALNG SA MVL 2Lic CoreLic 7NQ-00292 579 00 13 United States 7,527.00 WinSvrDCCore ALNG SA MVL 2Lic CoreLic 9EA-00278 124 32 80 United States 9,945.60 Total Year 1 Payment 96,576.60
Invoice Date: Enrollment Effective Date or if received after Enrollment Effective Date upon our acceptance Pricing & Usage Year 2
Product Description Part Number Net Unit Price (USD) License Quantity Usage Country Extended Amount (USD) Enterprise
OfficeProPlus ALNG SA MVL 269-05704 98.76 560 United States 55,305.60 CoreCAL ALNG SA MVL UsrCAL W06-00446 46 92 450 United States 21,114.00 Additional Products
Prjct Std ALNG SA MVL 076-01912 115.44 11 United States 1,269.84 VisioPro ALNG SA MVL D87-01159 98 88 4 United States 395.52 VSProSubMSDN ALNG SA MVL 77D-00111 303 24 1 United States 303.24 ExchgSvrEnt ALNG SA MVL 395-02504 715 80 1 United States 715.80 SQLSvrStdCore ALNG SA MVL 2Lic CoreLic 7NQ-00292 579 00 13 United States 7,527.00 WinSvrDCCore ALNG SA MVL 2Lic CoreLic 9EA-00278 124 32 80 United States 9,945.60 Total Year 2 Payment 96,576.60
275
City of Costa Mesa
Quote Number:1109822.003
W0;PLSS0;B0;G0;Y0;R0;TL0;P0;BD0;BL0;BDSL0;BM0;BE0;E0;BV0;BDGM0;BOGM0

MS Quote Auto
Invoice Date: 1st Anniversary Date
Pricing & Usage Year 3
Product Description Part Number Net Unit Price (USD) License Quantity Usage Country Extended Amount (USD) Enterprise
OfficeProPlus ALNG SA MVL 269-05704 98.76 560 United States 55,305.60 CoreCAL ALNG SA MVL UsrCAL W06-00446 46 92 450 United States 21,114.00 Additional Products
Prjct Std ALNG SA MVL 076-01912 115.44 11 United States 1,269.84 VisioPro ALNG SA MVL D87-01159 98 88 4 United States 395.52 VSProSubMSDN ALNG SA MVL 77D-00111 303 24 1 United States 303.24 ExchgSvrEnt ALNG SA MVL 395-02504 715 80 1 United States 715.80 SQLSvrStdCore ALNG SA MVL 2Lic CoreLic 7NQ-00292 579 00 13 United States 7,527.00 WinSvrDCCore ALNG SA MVL 2Lic CoreLic 9EA-00278 124 32 80 United States 9,945.60 Total Year 3 Payment 96,576.60
Invoice Date: 2nd Anniversary Date
TOTAL SECTION 1 VALUE YEARS 1 - 3 289,729.80
TOTAL DEAL VALUE YEARS 1 - 3 289,729.80
276
City of Costa Mesa
Quote Number:1109822.003
W0;PLSS0;B0;G0;Y0;R0;TL0;P0;BD0;BL0;BDSL0;BM0;BE0;E0;BV0;BDGM0;BOGM0

MS Quote Auto
Future Pricing
Enterprise Products
Product Description Part Number Pricing Information
Net Unit True up Price (USD)
True-Ups - Enterprise Products Year 1 - Payment 1 Year 2 - Payment 1 Year 3 - Payment 1 OfficeProPlus ALNG LicSAPk MVL 269-05623 525.90 437.46 349.02 CoreCAL ALNG LicSAPk MVL UsrCAL W06-00445 264.72 222.48 180.24 Additional Products
Product Description Part Number Pricing Information
Net Unit True up Price (USD)
True-Ups Year 1 - Payment 1 Year 2 - Payment 1 Year 3 - Payment 1 Prjct Std ALNG LicSAPk MVL 076-01776 686.52 571.08 455.64 VisioPro ALNG LicSAPk MVL D87-01057 588.24 489.36 390.48 VSProSubMSDN ALNG LicSAPk MVL 77D-00110 886.62 583.38 280.14 ExchgSvrEnt ALNG LicSAPk MVL 395-02412 4,652.58 3,936.78 3,220.98 SQLSvrStdCore ALNG LicSAPk MVL 2Lic CoreLic 7NQ-00302 3,763.50 3,184.50 2,605.50 WinSvrDCCore ALNG LicSAPk MVL 2Lic CoreLic 9EA-00039 808.20 683.88 559.56 277
City of Costa Mesa
Quote Number:1109822.003
W0;PLSS0;B0;G0;Y0;R0;TL0;P0;BD0;BL0;BDSL0;BM0;BE0;E0;BV0;BDGM0;BOGM0

MS Quote Auto
Product Notes

Note 1: If the payment structure is changed, the list price may not reflect the actual list price but may be updated to reflect the payment structure chosen.

Note 2: Purchase Orders should include taxes where applicable.

Note 3: True-ups are only applicable to Enterprise Products, eligible Enterprise Online Services and Additional Products (including eligible Online Services but not Service Offerings).

Terms and Conditions

The Channel Price Sheet is confidential between the licensing Microsoft affiliate and the Channel Partner. DO NOT forward the Channel Price Sheet document to the end-customer.

Unless otherwise indicated on the Channel Price Sheet and in a signed customer amendment, Microsoft will invoice Reseller in 3 equal annual installments. The first installment will be invoiced upon acceptance of the Enrollment, and thereafter on the anniversary of the Enrollment.

SoftwareONE, Inc. by signing below, acknowledges that it has read the E6 referred to in the Channel Price Sheet (including any amendments to that Enrollment), and SoftwareONE, Inc. acknowledges that pursuant to the terms of that enrollment, the customer may have rights to terminate the enrollment under certain circumstances, that may reduce the total proposal value. All pricing and other terms are subject to change by us at any time until execution and delivery by all par ies of the final enrollment and all other necessary legal documentation. Please do not sign or process his price sheet unless Final Price Sheet is indicated on top of the first page.

PLEASE NOTE: At the start of each term of an Enrollment, price levels are established for that term based upon terms in the applicable Agreement and Enrollment. For Direct Enrollments, final pricing is established by the licensing Microsoft affiliate based on the applicable price levels and other factors. For Indirect Enrollments, final pricing is established by the Customer's reseller based on the applicable price levels and other factors. Therefore, Customers should not expect to receive the same pricing across different Enrollments, particularly when the Enrollments are under different channel models (Direct and Indirect). If an Affiliate is not included under this Enrollment, but signs a separate Enrollment, hat Affiliate may be subject to pricing other than what has been established in this Enrollment. While the payment on an initial order and any order for Online Services may be spread annually across he term of the Enrollment, any subsequent addi
ional product and true-up orders for License & Software Assurance are invoiced in total unless otherwise specified. 278
Quoted to: City of Costa Mesa
Michael Steinke
Date: 3/23/2023 [email protected]
Quote#: 45008
Expires: 4/22/2023 EA# 60026000 - Expires 8/31/2024
Quantity Part # Description Unit Price Ext. Price
455 W06-00445 Core CAL ALng LSA UCAL $227.15 $103,353.25 40 PGI-00268 Exchange Ent CAL ALng LSA User CAL with Services $76.08 $3,043.20 195 269-05623 Office Professional Plus ALng LSA $446.65 $87,096.75 118 9EA-00039 Win Server DC Core ALng LSA 2L $698.25 $82,393.50 29 9EM-00562 Win Server Standard Core ALng LSA 2L $109.10 $3,163.90 Sub-Total $279,050.60
Tax
ESD - nontaxable. Please type "Electronic Software
Delivery" on your PO. -$
Shipping No Charge
Total 279,050.60$
Prices good for 30 days
Pass-Through Warranty and Other Rights. As a reseller, end-user warranties and liabilities (with respect to any third party software products p
rovided by SoftwareONE) shall be provided as a pass-through from the manufacturer of such products.

All software products are subject to the
license agreement of the applicable software supplier, as provided with the software packaging or in the software at time of shipment.

Quoted by Jason Carmer
Phone 214-580-5899 Email [email protected]
Important: Please provide the email address of the recipient designated to receive a SoftwareONE order confirmation and/or receive electronic software deliveries. please email inside sales at [email protected] for order inquiries Attachment 2
279

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1180 Meeting Date: 5/2/2023
TITLE:

FISCAL YEAR (FY) 2023-2024 ANNUAL ACTION PLAN IDENTIFYING FUNDING PRIORITIES

FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT

PARTNERSHIPS GRANT (HOME) PROGRAMS
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/HOUSING AND

COMMUNITY DEVELOPMENT DIVISION
PRESENTED BY: MIKELLE DAILY, GRANT ADMINISTRATOR
CONTACT INFORMATION: MIKELLE DAILY, GRANT ADMINISTRATOR, (714) 754-5678 RECOMMENDATION:

Staff recommends the City Council:

1. Hold a Public Hearing regarding the FY 2023-2024 Annual Action Plan.

2. Approve the recommended allocation of $1,689,303 for FY 2023-2024 Community Development Block Grant, which includes the annual allocation of $1,010,506, $78,797 in prior year(s) uncommitted program funds, and $600,000 in re-programmed CDBG funds.

3. Approve the recommended allocation of $549,260 for the Fiscal Year 2023-2024 HOME Investment Partnerships Grant, which includes the annual allocation of $509,260 and $40,000 in program income (lien/HOME loan repayments).

4. Adopt Resolution No. 2023-XX in order to:
a. Approve the FY 2023-2024 Annual Action Plan.
b. Authorize the City Manager, or the City Manager’sdesignee, to submit the FY 2023- 2024 Annual Action Plan to the U.S. Department of Housing and Urban Development. c. Designate the City Manager, or the City Manager’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by HUD, and execute all subrecipient agreements for the use of funds approved in the FY 2023-2024 Annual Action Plan.

5. Provide direction regarding potential changes to the City’sTenant-Based Rental Assistance (TBRA) and Single-family Rehabilitation Grant and Loan Programs, as described in the staff report.

280
File #: 23-1180 Meeting Date: 5/2/2023
BACKGROUND:

Costa Mesa is a recipient of two U.S. Department of Housing and Urban Development (HUD) grant program funds: the Community Development Block Grant (CDBG) Program and the HOME Investment Partnerships Program (HOME). These two HUD programs annually provide approximately $1.6 million to the City and can be used for various activities that assist low- and moderate- income Costa Mesa residents.

The Housing and Community Development Division (HCD) of the Development Services Department is responsible for administering the City’s CDBG and HOME grants. CDBG and HOME-funded activities must address the needs outlined in the City’s Consolidated Plan.

FIVE-YEAR CONSOLIDATED PLAN
The Consolidated Plan is a five-year planning document required by HUD for all communities receiving federal community development grant funds. The current Consolidated Plan was approved by the City Council on May 19, 2020 and covers FY 2020-21 through FY 2024-25. The following five- year goals are identified in the 2020-2024 Consolidated Plan:
· Goal 1: Housing Preservation - To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement, and rental housing acquisition/rehabilitation
· Goal 2: Infrastructure and Facility Improvements - To enhance the suitability of the living environment through improvements to public infrastructure and facilities · Goal 3: Homeless Continuum of Care - To provide supportive services and housing assistance for homeless persons and homelessness prevention
· Goal 4: Public Social Service - To provide services for low- and moderate-income persons, and those with special needs, including fair housing services · Goal 5: Program Administration - To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of programs and services and complying with all HUD program requirement
The Consolidated Plan also includes a five-year strategic plan that identifies community needs, and strategies, programs and resources to address those needs. Its five-year cycle will end on June 30, 2025. The Consolidated Plan can be found on the City’s website at:
<https://www.costamesaca.gov/home/showpublisheddocument/45289/637503703596400000>

ANNUAL ACTION PLAN
The Annual Action Plan is the component of the Consolidated Plan that is revised annually. It links the goals identified in the City’s2020-2024 Consolidated Plan to the planned annual expenditure of CDBG and HOME funds. The City must submit the Annual Action Plan to HUD in May of each year to comply with HUD requirements and continue to receive these federal funds. The deadline for

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submittal to HUD for this year is May 16, 2023.

The City is required to provide a 30-day public comment period and to hold a public hearing before approving and submitting the Annual Action Plan to HUD.

ANALYSIS:

PROPOSED 2023-24 ANNUAL ACTION PLAN
Fiscal Year 2023-24 is the fourth year of the five-year 2020-2024 Consolidated Plan cycle. The period covered by the FY 2023-24 Action Plan begins July 1, 2023 and ends June 30, 2024.

Both CDBG and HOME funds have specific program requirements. For example, CDBG funds must be utilized to achieve one of three national objectives: 1) elimination of run- down areas, 2) to meet an urgent need (e.g. declared disaster), or 3) to benefit low- and moderate- income persons. HOME funds must be used to preserve or increase housing opportunities for low- income residents in Costa Mesa.

Lower income persons are defined by HUD as an individual with a household income equal to or less than 80 percent of the County median income. (The 2022 median family income for Orange County is $119,000). Income limits are based on family size and are adjusted annually by HUD. Income limits for 2023 are expected to be released on or around May 15, 2023. HUD 2022 Orange County (OC) income limits are shown below:

CDBG Funds
The City will receive $1,010,506 in CDBG funds for FY 2023-24. Additionally, $78,797 in prior year uncommitted funds and $600,000 in re-programmed CDBG funds will be available to CDBG-eligible activities. Staff is recommending funding in five primary program areas: 1) Capital Improvements 2) Public Services Grants 3) Housing Rehabilitation Administration 4) Community Improvement/Code Enforcement, and 5) Program Administration.

Capital Improvements
CDBG funds may be used to improve infrastructure and public facilities, provided the primary beneficiaries are low- and moderate- income Costa Mesa residents. Eligible improvements listed in

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beneficiaries are low- and moderate- income Costa Mesa residents. Eligible improvements listed in the Consolidated Plan include:
- Public Facilities
o accessibility and facility improvements
- Park Facility Improvements
o Park improvements - various parks in CDBG eligible areas; equipment replacement, fencing, signage, trail restoration
o Park expansion/development - various parks in CDBG eligible areas; master plan updates; management and restoration plans
- Homeless Shelter Improvements
- Community Center Improvements
- Fire station improvements (including fire equipment)
- Library Improvements
- Other public facilities that serve special needs populations Capital projects funded with CDBG funds must be appropriate for the amount of funding available, consistent with the Consolidated Plan, and capable of being completed and funds expended within required CDBG timelines.

HCD staff solicited proposals for eligible projects from City departments. The Public Works Department requested funds for a continuation of the Westside Residential Street Improvements Project which was allocated $600,000 in CDBG funds in the previous FY 2022-23 Annual Action Plan. However, since then, alternative grant funding sources have been identified for the Westside Residential Street Improvements Project. Therefore, $678,797 in prior year funds plus $246,830 in FY 2023-24 CDBG funds are available for programming toward infrastructure and facility improvements this fiscal year.

As such, available CDBG funds (approximately $925,627) are proposed to be used for the purchase of a Triple Combination Pumper/Fire Engine with required outfitting. The new fire engine will be based at Fire Station 3, 1865 Park Ave., Costa Mesa, CA, located in the southwest portion of the City and serving the area of the City with the greatest socio-economic diversity.

Public Services
The City is allowed to earmark up to 15% of its annual CDBG allocation to fund public services.

Based on the FY 2023-24 CDBG allocation, staff is recommending the City allocate the maximum allowable amount of $151,575 for public services.

Public services are defined as social service programs that primarily benefit low- and moderate- income residents. These programs may be administered by City staff or by local nonprofit agencies through a subrecipient agreement. Staff recommends allocating $30,000 to fund the City’sSenior

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through a subrecipient agreement. Staff recommends allocating $30,000 to fund the City’sSenior Center Community Outreach Worker position. The City’sCommunity Outreach Worker assists senior clients by connecting them to appropriate community agencies, services and resources and provides support for their physical, mental, emotional and social health. This leaves $121,575 available to fund public services grants (PSGs) for community-based non-profit organizations.

On January 13, 2023, the City released a request for PSG applications. On February 13, 2023, the City received twelve PSG applications requesting a total of $264,000. On March 15, 2023, the City’s Housing and Public Service Grant Committee (H&PSG Committee) convened to review grant applications, listen to presentations from non-profit organizations applying for grant funds, and develop public service grant funding recommendations for the City Council’sconsideration. Grant amounts may be between a minimum of $15,000 and a maximum of $30,000 to ensure that grants are impactful, while serving diverse eligible populations.

The H&PSG Committee recommends funding seven of the twelve PSG applications received, refer to Table 1 below. The Fair Housing Foundation application will be funded with administration funds this year. (Funding of Fair Housing is a HUD requirement and is eligible for funding out of the administration or the PSG portion of the CDBG allocation).

The H&PSG Committee’s ratings, rankings, and grant recommendations are provided as an attachment to this report for the City Council’s consideration. The attachment also includes a summary of grant applications and a three-year funding history of CDBG public service grants. The H&PSG Committee’s grant recommendations are listed in the proposed CDBG budget below. A complete copy of all PSG applications submitted are posted on the City’s website at:Applications | City of Costa Mesa (costamesaca.gov) <https://www.costamesaca.gov/government/departments-and -divisions/economic-and-development-services/housing-and-community-development/cdbg-public- service-grant-applications>.

Housing Rehabilitation Program Administration
Staff recommends allocating $50,000 in CDBG funding for staff and other direct costs associated with administering the City’s HOME-funded housing rehabilitation program. Examples of eligible costs include costs associated with staff preparation of work specifications, property inspections, and loan/grant application processing. Refer to the discussion under the HOME funds section of this report for further details regarding the Housing Rehabilitation program.

Community Improvement/Code Enforcement
CDBG funds may be used for code enforcement activities, provided the program primarily benefits low- and moderate- income persons, and that such activities “together with public or private improvements, rehabilitation, or services to be provided, may be expected to arrest the decline of the area.” The core of this regulation is that any CDBG-funded code enforcement activity must have a direct connection to rehabilitation or improvement of housing in a CDBG-eligible area. For FY 2023- 24, staff recommends an allocation of $360,000 in CDBG funds to support the work effort of two full- time and one part-time City Community Improvement Officer. Activity will be limited to eligible low and moderate income Census Tract Block Groups identified by HUD. The goal of community improvement activities in these areas is to connect property owners, residents and other members of the community with resources and programs to resolve substandard housing conditions in an overall

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the community with resources and programs to resolve substandard housing conditions in an overall effort to improve the quality of life within these neighborhoods.

Administration
HUD allows the City to allocate up to 20 percent of its annual grant for planning and program administration. Based on the City’sFY 2023-24 allocation, a maximum of $202,101 can be allocated for program administration. Eligible program administration expenditures include program staff salaries and benefits, contract services, legal services, direct program operating costs and fair housing costs (if not funded through the public services allocation).

The City is required by HUD to fund a Fair Housing Program, which provides education, counseling and enforcement services for Costa Mesa households. Staff recommends allocating $20,000 from administration to fund the Fair Housing Foundation to provide fair housing services to the community and comply with federal regulations.

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HOME Funds
The City will receive a HOME grant allocation of $509,260 for FY 2023-24. Additionally, $40,000 in HOME program income (i.e. HOME lien/loan repayments) is available for HOME-funded activities.

The City must reserve a minimum of 15 percent of annual HOME funds for an affordable housing project to be undertaken by a qualified nonprofit housing developer known as a Community Housing Development Organization (CHDO). The City is also allowed to use a maximum of 10 percent of HOME funds for program administration. Staff is recommending to allocate FY 2023-24 HOME funds for four activities: 1) Single-family housing rehabilitation loans and grants program, 2) Affordable Housing Development (CHDO reservation - required), 3) Tenant Based Rental Assistance (TBRA) program, and 4) Program Administration.

Single-family Housing Rehabilitation Grant and Loan Program Staff is recommending allocating $271,945 in HOME funds for the City’sHousing Rehabilitation Loan and Grant Program. Program funds must be used to correct nonconforming uses, remedy code violations, and repair and improve deteriorating properties, with the goal of providing decent and safe housing conditions. The program offers grants up to $12,500 for mobile homes and $17,500 for single family homes, as well as deferred zero interest loans up to $50,000. Rehabilitated property value after rehabilitation cannot exceed 95 percent of the HUD median purchase price for the City, which was calculated as $1,026,000 for FY 2022-23 and will be recalculated in May 2023 for FY 2023 -24. In addition, the subject property must be owner-occupied and serve as the principal residence of the eligible low- to very-low income household applying.

The proposed allocation is estimated to fund approximately 10 grants and one loan annually.

Historically, this program has primarily funded improvements to mobile homes and focused on grants instead of loans. Existing program loans were primarily funded between 1997 and 2013. Since 2013, the number of loan applications has sharply declined. In fact, in the last 5 years, 98% of program participants received funds via grants and 94% of program participants were mobile home residents.

Community Housing Development Organization (CHDO) Affordable Housing Funds HOME program regulations require that a minimum of 15 percent of the City’sannual grant allocation be reserved for a CHDO (a community-based nonprofit development entity). Based on the City’sFY 2023-24 HOME grant, $76,389 is the minimum CHDO set-aside requirement. HUD has suspended the 24-month commitment deadline requirement indefinitely for CHDO set-aside funds. As a result, these funds are set aside and accrue each year pending an eligible development application from a CHDO. Most recently, CHDO funds were used to assist the Motel 6 residential project.

Tenant Based Rental Assistance (TBRA)
Staff is recommending allocating $150,000 in HOME funds for the City’s Tenant Based Rental Assistance Program. A “pilot”TBRA program funded by HOME dollars was originally offered in Fiscal Year 2020-21. The pilot program was based on a similar TBRA program implemented in the City of Huntington Beach and was administered in Costa Mesa by Families Forward. Since the contract for Families Forward to implement the pilot program expires in June 2023, staff released an RFP to solicit proposals to administer a permanent TBRA program for Costa Mesa. Should the Council