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Home My WebLink About2011/08/16 Item 06ITY COUNCIL STATEMENT ~~f(~ CITY OF '"~'~ CHULA VISTA AUGUST 16, 2011, Item (q ITEM TITLE: PRESENTATION BY TFE CHULA VISTA CHAMBER OF COMMERCE OF A REPORT ON THE OPERATIONS, STRATEGIC GOALS AND OBJECTIVES, AND FINANCIAL REPORT FOR THE SECOND YEAR OF THE CHULA VISTA TOURISM MARKETING DISTRICT SUBMITTED BY: PRINCIPAL ECONOMIC DEVELOPMENT SPE _LIST DIRECTOR OF ECO IC DEVELOPMEN r~^~ZO REVIEWED BY: CITY MANAGE 4/STHS VOTE: YES ~ NO SUMMARY On July 14 2009 the City Council adopted a resolution that established the Chula Vista Tourism Marketing District (CVTMD). The CVTMD is required to prepare and submit an annual report to the City Council. The Chula Vista Chamber of Commerce acting as the owners' association for the CVTMD will present the report to City Council and be available for questions. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a Project as defined under Section 15378 of the CEQA Guidelines; therefore pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus no environmental review is necessary. RECOMMENDATION That City Council accept the report and provide the Chamber of Commerce and staff with direction as appropriate. BOARDS/COMMISSION RECOMMENDATION Not applicable. 6-1 Meeting Date: 08-16-11 Item No:~_ Page 2 of 3 DISCUSSION On July 14 2009 the City Council adopted a resolution that established the Chula Vista Tourism Marketing District (CVTMD). Typically, a TMD would invest in marketing and promotion to attract additional visitors to local hotels and motels. A TMD might also market opportunities for those visitors to use the products and services of additional local businesses all of which contribute to local business prosperity, the creation of jobs and a sustainable local economy that funds local community services. According to the California Property and Business Improvement District Law of 1994 (as amended January 2009), Streets and Highways Code Sections 36650 and 36651, Business Improvement District (BID) Owners' Associations are required to prepare and submit an annual report to the City Council for each year following the first fiscal year of operation of a BID. The CVTMD is in its second year of operation. The Chula Vista Chamber of Commerce, acting as the owners association for the CVTMD, has created an annual report and tonight will deliver the report. Staff has requested that the Chamber of Commerce include information regarding the operations, strategic goals and objectives, and a financial report of the CVTMD, as part of the required report to the City Council. Under the CVTMD, an assessment of 2.5% is levied on short-term gross room rental revenues for lodging businesses. All existing lodging businesses in the City are subject to the assessment. The CVTMD originally consisted of 23 motel hotel properties. One property has recently converted to apartments and is no longer part of the District. Any new lodging businesses opening subsequent to the formation of the CVTMD will also be subject to the assessment charges. Currently, there are no new motel/hotels planned at this time. (a list of all motel/hotels is included in Attachment 1). The CVTMD funds activities such as advertising in local and regional publications, participation in professional industry conferences, development of the Convention and Visitors Bureau website and e-newsletter, and the staffing and operation of the Visitor Center. For the first year of the CVTMD (Fiscal Year 2010), the total assessments collected totaled $315,442. During this period, the City collected approximately $2.03 million in Transient Occupancy Taxes (TOT). The Fiscal Year 2011 CVTMD budget was projected to be $390,406, and actual revenues and expenditures were $414,347. TOT revenue for the City was approximately $2.05 million. The increase in CVTMD revenue was attributed to the efforts of the CVTMD and the improvement in the overall economy. For Fiscal Year 2012, the CVTMD budget is $412,823. The Chamber of Commerce and the City anticipate that room nights and average daily room rates will be relatively consistent with the current year. As permitted by State law (as cited above), the City Council may approve the report as filed by the owners association or may modify any section contained in the report and approve it as modified. If the City Council chooses to modify the improvements and/or activities funded with the revenue derived from the levy of the existing assessments, it may do so by adopting a resolution determining to make the modifications and holding a public hearing on the proposed changes. 6-2 Meeting Date: 08-16-ll Item No: Page 3 of 3 If the modification includes the levy of new or increased assessments, the City Council is required to follow procedures similar to those used to initially establish the CVTMD, including written notices to all affected business owners and the opportunity for affected business owners to submit written protests. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(I) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT There will be no fiscal impact to the City's General Fund as a result of this action. ONGOING FISCAL IMPACT There will be no fiscal impact to the City's General Fund as a result of this action. However, a successful CVTMD effort will foster a higher occupancy rate that will in turn generate greater Transient Occupancy Taxes, as well as sales tax increases and local jobs creation. Thus, an increasingly successful CVTMD will result in a positive impact on the General Fund. ATTACHMENTS 1. Chula Vista Tourism and Marketing District Report 2. Chula Vista Convention and Visitors Bureau Strategic Plan 3. CVTMD Management District Plan Prepared by Craig Ruiz, Principal Economic DevelopmentSpecialisd, Administration/Economic Development 6-3 Attachment 1 Chula Vista Tourism Marketing District Annual Budget, Year Two Services Descriptions Total Provided SALES and MARKETING $167,239.64 Sales and Marketing programs and activities will be designed to attract overnight groups. These activities may include: • Lead Generation • Trade Shows • Sales Blitzes • Familiaziza[ion Tours • Advertising • Collateral • Marketing Programs • Local Property Visits • Director of Sales Meetings • General Manager Meetings • Professional Industry Conferences /Affiliation Events • Staffing Costs COMMUNICATIONS and PUBLIC RELATIONS $220,160.92 Communications and Public Relations activities and services will build greater awareness of the Chula Vista businesses and [he Chula Vista region as a tourism, meeting, and event destination. These activities may include: • Public, Community and Media Relations • Familiarizations Tours • CVB Events • Membership Solicitation /Maintenance • Local Trade Shows and E~~ents • CVB Web Site and Electronic Newsletter • CVB Newsletter • Speaking Engagements • Visitor Information /Servicing • Staffing Costs ADMINISTRATIVE/OPERATIONS $1,000.00 • Office Administrative/Operational Expenses • Legal/Accounting • Staffing Costs Contingency / TMD Renewal (5%) $2,005.69 This prudent fiscal reserve is [o buffer the organization for any unexpected revenue changes and/or allow the District to fund TMD modification and/or renewal costs. Total Tourism District Budget $390,406.25 6-4 Chula Vista Tourism Marketing District Year Two Actual July 2010 -June 2011 Services Descriptions Total Provided SALES and MARKETING Sales and Marketing programs and activities will be designed to attract overnight groups. These activities may include: • Lead Generation • Trade Shows • Sales Blitzes • Familiarization Tours • Advertising • Collateral • Marketing Programs • Local Property Visits • Director of Sales Meetings • General Manager Meetings • Professional Industry Conferences /Affiliation Events • Staffing Costs COMMUNICATIONS and PUBLIC RELATIONS Communications and Public Relations activities and services will build greater awareness of the Chula Vista businesses and the Chula Vista region as a tourism, meeting, and event destination. These activities may include: • Public, Community and Media Relations • Familiarizations Tours • CVB Events • Membership Solicitation /Maintenance • Local Trade Shows and Events • CVB \'~/eb Site and Electronic Newsletter • CVB Newsletter • Speaking Engagements • Visitor Information /Servicing • Staffing Costs ADMINISTRATIVE/OPERATIONS • Office Administrative/Operational Expenses • LegaUAccounting • Staffing Costs Contingency / TMD Renewal (5%) This prudent fiscal reserve is to buffer the organization for any unexpected revenue changes and/or allow the DisVict to fund TMD mndiFcation and/or renewal costs. $444.80 Total Tourism Marketing District Actuals $414,347.73 ~ $186,339.70 $226,563.23 $1,000.00 6-5 12:08 PM Chula Vista Tourism Marketing District o]2sn, Transaction Detail By Account Accrual eaaia July 2010 through June 2011 Type Date Num Name Memo Olr Split Amount 100 Tourism Marketing District 101 TMD Assessment Deposit ]/1512070 447893 City Of Chula Uista Tourism Mark... T.M.D Acdt 11... 36,303.13 Deposit 8/12/2010 448712 City Of Ghula Vista Tourism Mark... T M.0 Acctl 11... 37491.05 Deposit 9110[2010 449501 City Of Chula Vista Tourism MaM1._ T. M.p Acdl ll_. 61,046.19 Deposit 10/82010 450257 City Of Chula Vista Tourism Mark... T.M.p Acdt 11 _. 44 ]24.23 Deposit 11/52010 4511]1 City Of Chula Vista Twnsm MaM_ T.M.^ACd11t.. 33,9932] peposi[ 12110/2010 452252 City Of Chula Vista Tourism Mark... T. M.O Acctl 11... 32,047.50 Deposit 1/142011 452906 City Ot Chula Vista Tourism Mark... T.M.D ACdl 11... 27,255.41 Deposit 21222011 454226 City Ot Chula Vista Tourism MaB... T.M.^ACCq 11... 30,525.11 Deposit 31142011 454]52 Cily Of Chula Vista Tourism Mark._ T. M.D Acctl 11... 22,286.74 Deposit 4182011 455422 City Of Chula Vista Tourism Mark... T.M.^ Acdk it... 19]18.18 Deposit 51912911 455136 City 01 Chula Vista Twrism Mark. T.MD Accq it... 33,0]3.19 Deposit 61132011 457061 City Of Chula Vista Tourism Mark.. T.M D Acdt 11... 35,882.33 Total 101 TMp Assess ment 414,347.73 Total 100 Tourism Marketing DisVic! 414,347.]3 TOTAL H4,14T.T3 Page 1 6-6 Chula Vista Tourism Marketing District Annual Budget, Year Three Services Descriptions Total Provided SALES and MARKETING $159,882.28 Sales and Marketing programs and activities will be designed to attract overnight groups. These activities may include: • Lead Generation • Trade Shows • Sales Blitzes • Familiarization Tours • Advertising • Collateral • Marketing Programs • Local Property Visits • Director of Sales Meetings • General Manager Meetings • Professional Industry Conferences /Affiliation Events • Staffing Costs COMMUNICATIONS and PUBLIC RELATIONS $250,865.76 Communications and Public Relations activities and services will build greater awazeness of the Chula Vista businesses and the Chula Vista region as a tourism, meeting, and event destination. These activities may include: • Public, Community and Media Relations • Familiarizations Tours • CVB Events • Membership Solicitation /Maintenance • Local Trade Shows and Events • CVB Web Site and Electronic Newsletter • CVB Newsletter • Speaking Engagements • Visitor Information /Servicing • Staffing Costs ADMINISTRATIVE/OPERATIONS $1,000.00 • Office Administrative/Operational Expenses • Legal/Accounting • Staffing Costs Contingency /TMD Renewal (5%) $1,075.86 This prudent fiscal reserve is to buffer the organization for any unexpected revenue changes and/or allow the District to fund TMD Total Tourism District Budget $412,823.90 ~ 6-7 Chula Vista Lodging Establishments Bay Breeze Inn & Suites 692 H Street Bay Cities Motel 864 Broadway Best Western Chula Vista Inn 946 Broadway Best Western - Otay Valley 4450 Main St Best Western South Bay Inn 710 E Street Best Choice Inn 778 Broadway Big 7 Motel 333 Broadway Comfort Inn & Suites 632 E St Chula Vista Travel Inn 394 Broadway Days Inn Chula Vista 699 E Street EI Primero Hotel 416 Third Ave Good Nite Inn 225 Bay Blvd Harbor View Motel 1089 Broadway Highway Inn 70 Broadway La Quinta Inn 150 Bonita Rd Motel 6 745 E Street Palomar Inn 801 Palomar St Palomar Motel 1160 Walnut Ave Ramada Inn South 91 Bonita Rd Riviera Motel 372 Broadway Traveler Inn & Suites 235 Woodlawn Vagabond Inn 230 Broadway 6-8 Attachment 2 Chula Vista Convention & Visitors Bureau Strategic Plan Mission: The Chula Vista Convention & Visitors Bureau focuses on developing Chula Vista as a destination city by generating and promoting tourism, while expanding and attracting visitors to our community. Vision: It is our vision to create a Visitor Center office that represents an International Visitor Information Center using the latest in technology and an interactive environment, to welcome and assist guests from all over the world. Goal: Partner with The City of Chula V ista to create a visitor center in a central, visible, high traffic, street level, accessible location in the Ciry of Chula Vista. Provide a site for public outreach for the community of Chula Vista and our visitors. Create an atmosphere which promotes our city as a great place to live, work and play... Catch [he Spirit! We want visitors to: • Select Chula Vista & San Diego County as a destination; • Feel welcomed, informed and educated so they take full advantage of Chula V ista attractions, accommodations, dining and shopping, as well as current scheduled entertainment, activities and events; • Treat the Visitor Information Center (VIC) as an attraction- the window to the rest of their stay- a destination in itself • Maintain or lengthen the duration of their stay; • Say "WOW!" & consequently promote the City of Chula Vista through positive word-of-mouth; • Return to Chula Vista and its attractions ofren. Objectives: 1. The ultimate objective is to ensure that the Chula Vista Visitor Information Center (VIC) and Chula Vista Convention & Visitors Bureau (CONVIS) supports and promote Chula Vista's sales and marketing efforts by responding to visitor inquiries in a professional, friendly, accurate and timely manner. The VIC and CONVIS will render valuable information services to visitors from around the world and project a positive image while representing the City of Chula Vista, San Diego County & Port of San Diego. 2. To maximize attendance at all of the attractions, accommodations and activities in Chula Vista and San Diego County by providing pertinent information via the latest in multi-media technology as well as through La Jolla & San Diego Official Visitor Guides, brochures, maps and promotional materials for guests visiting the Chula Vista VIC and Chula Vista CONVIS. 3. That the VIC becomes the primary resource for Chula Vista in order to assist and support local attractions, concierges, etc. 4. To maximize revenue generation through retail sales, attraction and tour ticket sales, restaurant reservations and sponsorship opportunities; and optional services such as access to the Internet and e-mail, phone card vending machine, travel books, visitor sundries and souvenirs. 5. To further support a team of volunteers by continuing to develop a formal volunteer program that includes recruitment, training, scheduling and motivating community volunteers to assist with information dissemination in a friendly and unbiased manner and in a variety of foreign languages. 6. Collaborate with the City of Chula Vista, the Chula Vista Chamber of Commerce and CONVIS for multimedia coverage to further mazket the City of Chula Vista, i.e. press, radio, television, magazines and promotional material. 6}9 Chula Vista CONVIS Strategic Plan Iu order to successfully achieve the Vision, Goals and Objectives listed above; there are three categories which must be addressed. 1. Internal space needs 2. External location needs 3. Resources 1. INTERNAL SPACE NEEDS: walk-in center 1200 sq. ft. Public Space: ' • Reception area • Signage in several languages and for people with vazious disabilities • Counter space • Professionally designed information and interpretive displays for the City of Chula V ista, San Diego County and Port. • Pleasing graphics that depict the City of Chula Vista and San Diego County • Interactive displays, videos, kiosks with information and scenes re: Chula Vista and San Diego County • State of the art information retrieval systems (example, CD's with headphones and/or video screens [o view/listen to information of Chula Vista; (virtual reality) • Internet access for visitors to send/receive a-mail • Retail sales area and gift shop • Postage stamp vending machine • Attraction & tour ticket sales area • Brochure distribution racks • Public phones, including one for the hearing impaired (TDD) • Regional locator map and public transportation map displayed for viewing • Wall space and backlit display space to lease for advertising purposes • Thematic decor, ambiance to coordinate with Chula Vista and San Diego Convis advertising and promotional themes- carry out the Chula Vista "brand." • Welcoming decor- banners, flags, displays, maps, light and bright, a visual experience, "We're glad you are here" • Accessible features for travelers with disabilities • Public restrooms for each gender, families and people with disabilities as well as daily custodial services (this will depend on location and public restrooms in the area) Behind the Scenes • Office space for supervisor and staff with bookcases, file cabinets, computers, phones and desk space for volunteers • Space for office machines: fax, copier, postage machine, printers, telephone and voice mail equipment • Wiring for computers, Internet, phone lines • Storage for visitor guides, brochures, office supplies, promotional items, retail items, cleaning _ equipment, light bulbs, historical records • Break room- with refrigerator, microwave, coffee, sink, lockers for staff, water cooler • Restrooms for staff • Coat rack • Cash register and built in safe • Phone system that interfaces with Chula Vista CONVIS • Appropriate heating and air conditioning 6~ ~ Chula Vista CONVIS Strategic Plan 2. EXTERNAL LOCATION NEEDS: • Central Chula Vista location • Access to public transportation • Ground floor, street level, drive by access • Attractive architectural design • Parking area/ arrangements for staff & volunteers • Several 15 minute free parking places for visitors wanting to "run in & pick up a guide" and /or metered and validated parking azeas • Fagade and front entrance facing major street- currently E Street • Neon signs and directional signs (in several languages or international symbol signs) from freeways and major arteries, to attract visitors to Visitor Center (and subsequently, Chula Vista businesses) • Well lit -create sense of "safety" for area • 24-hour security • 24 hour information available via direct dial phones on exterior of visitor center and or electronic visitor information kiosk • Area for leased coffee cart operation Revenue Sources/ Customer Service/ Retail Sales • Sell tour and attraction tickets • Sell Chula Vista t-shirts, sweatshirts, caps, bags, logo items • Sell transit [ickeU passes • Museum tickets/ Balboa Pazk passport • Souvenirs • Sundries, film, suntan lotion • Postcards, videos • Maps • Souvenir penny machine with Chula Vista and San Diego scenes • Phone card vending machine • Sell sponsorship space • Multilingual staff, guides, information resources • Accommodation and/or restaurant reservation service • Advertising panel with dedicated phone lines for self service reservations and info • Mexican insurance lease space • Services/ business center o Public phones- including for the deaf o Place to sit and go through information they have gathered o Change machine o Stamps o Access to interne[ and to pick up their e-mail o Currency exchange lease space 3. CONVIS/ VIC RESOURCES: • Bilingual staff with a combined total of 15 years of visitor center experience • Establish a volunteer program with dedicated, knowledgeable, trained volunteers • Establish a motel association to bring together motel/hotel owners and managers and the City of Chula Vista Police Department and City Code enforcement to work on raising the bar (work on increasing AAA ratings) • Proven methods of information dissemination • Recognized "hospitality training" programs far high school, college • Regional, national and international marketing opportunities 6-~ ~ Chula Vista CONVIS Strategic Plan FUNDING AND MANAGEMENT RECOMMENDATIONS: L Tourism Marketing District TBID, The City of Chula Vista and TAVA PBID and sponsors shaze operating and staffing costs. 2. Cost recovery revenue is obtained through the channels listed previously. 3. Chula Vista CONVIS and the City of Chula Vista work together to obtain a major corporate sponsor (i.e. Airlines, American Express Travel, etc) 4. The Center be managed and operated by the Chula Visa Chamber of Commerce The Chula Vista Visitor Information Center (V IC) plays a crucial role within and for our City. In many instances they are the first and final link in Chula Vista's Marketing Plan- service to the Visitor. By utilizing San Diego's aggressive advertising campaign, we will attract the visitor and then responsible for providing friendly and hospitable service. The happy visitor is the repeat visitor. Our Chula Vista Visitor Center is a site for public outreach for Chula Vista businesses, providing the fundamental visibility and accessibility to travelers and residents alike to the City of Chula Vista. 6 q~ 2 Chula Vista CONVIS Strategic Plan %~T~c rin,atti~ ~ 3 ~'I~~JI.,~. ~%I~TA'~"~~Ji21~S1~~I ~'~A12I~ET'Il~~i ~~5~`~IC ~l.L~.1.d~i...H 1'~1.Y~$.iltir $. 3F J1.~ 1 g'L.~4.r 1. 1../J.L9.:. ~I Submitted to the Chula Vista Chamber of Commerce And the Chula Vista Convention and Visitors Bureau April28, 2009 by Downtown Resources I~ow~TQwrv . ~ ~ 6-13 CHULA VISTA TOURISM MARKETING DISTRICT MANAGEMENT DISTRICT PLAN TABLE OF CONTENTS L INTRODUCTION AND OVERVIEW .................................................................... .......2 II. WHY A TOURISM MARKETING DISTRICT FOR CHULA VISTA? ................ .......4 III. WHAT IS A TOURISM MARKETING DISTRICT? ............................................. .......5 IV. CHULA VISTA TOURISM MARKETING DISTRICT BOUNDARY ................. .......6 V. SERVICE PLAN AND BUDGET ........................................................................... .......7 VI. TOURISM MAKERTING DISTRICT GOVERNANCE ........................................ .....10 APPEN DIX 1 -THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 ... ...................................................................................................... .....1 1 APPEN DIX 2 -LODGING BUSINESSES TO BE ASSESSED WITHIN CHULA VISTA TMD ... .................................................................................................................................. ....21 Chula Vista Tourism Marketing District Management District Plan Page 1 6-14 I. d"~''1'I3(?DLIt"fl£)N A~1D QVF,R4'fF.~,' Developed by the Chula Vista Chamber of Commerce (CVCC) and the Chula Vista Convention and Visitors Bureau (CVCVB), the Chula Vista Tourism Marketing District (CVTMD) is a benefit assessment district proposed to help fund marketing and sales promotion efforts for Chula Vista lodging businesses, and to pay for capital infrastructure west of Highway 5 and within the Eastern Urban Center. This approach has been used successfully in other destination areas throughout the country to improve tourism and drive additional room nights. Location: The proposed CVTMD includes all lodging businesses located within the boundaries of the city of Chula Vista. Services: Marketing and sales promotions to increase tourism and to market Chula Vista as a tourist, meeting and event destination. Budget: The total CVTMD budget for yeaz one of its five (5) year operation is a base of approximately $650,000. Cost: Annual assessment rates are 2.5% of gross short term (stays less than 31 days) room rental revenue on lodging businesses. The District shall have three zones. Zone 1 shall include the area of Chula Vista east of Interstate 5 with the exception of the Eastem Urban Center. Zone 2 shall include all hotels and motels west of Interstate 5. Zone 3 shall include all hotels and motels in the Eastern Urban Center. The Eastern Urban Center is bound by State Route 125 to the west, Birch Road to the north, Eastlake Parkway to the east and the future extension of Hunte Parkway to the south. Bonds may be issued in Zone 2 and Zone 3. In Zone 1, the monies collected from the special assessment will go to the Owners' Association. In Zone 2 and Zone 3, 2.0% of the 2.5% collected will go towazds capital improvements, and the remaining 0.5% will go to Owners' Association. At the Council's discretion, this 2% in assessments collected in Zones 2 and 3 may be used to repay a capital infrastructure bond if Council chooses to issue bonds. Until and unless bonds are issued in Zones 2 and 3, any funds collected in these zones will go to the CVCC and used in the same way as monies collected in Zone 1. Lodging business stays of 31 or more consecutive days shall not be assessed. Based on the benefit received, stays at RV parks and campgrounds within the Boundaries of the CVTMD shall not be assessed. Formation: TMD formation requires submittal of petitions from lodging businesses representing more than 50% of the total annual assessment followed by a City Council hearing and an opportunity for a written protest. The assessed lodging business owners will receive notice of the public hearing by mail. If there is a majority written protest, the TMD will not be formed. Chula Vista Tourism Marketing District Management District Plan Page 2 6-15 Duration: The proposed District CVTMD will have afive-year life. The assessments used to repay bond debt shall have a term of 30 years. The CVTMD assessment will be implemented beginning July I5, 2009. Once per year there is a 30 day period in which owners paying more than 50% of the assessment may protest and terminate the district. Chula Vista Tourism Marketing District Management District Plan Page 3 6-16 I3. Li 1-i~' :1'1't)il1~IS1~I NI;1I2~+FTiPi{.= t1i`~TI~IC'1" 'Ff732 f;Hdf..r~ ~'7~7'A" There are several reasons why now is the right time to form a Tourism Marketing District in Chula Vista; the most compelling reasons are as follows: 1. The Need to Increase Occupancy The formation of the CVTMD is a proactive effort to provide supplemental funding beyond that provided by the City of Chula Vista. The funding ensures the CVCC and the CVCVB have adequate financing for the investment required to increase occupancy in the lodging industry and reach competitive in the conference segment of the tourism market. The investment will cover an expanded marketing and promotional budget needed to reach this market segment. 2. An Opportunity for Increasing City Tax Revenues As occupancy rates increase, so too will the City's TOT revenue. With stable public/private funding for the CVCC and the CVCVB, annual occupancy rates should increase significantly as the new marketing and sales promotion programs are implemented. Greater occupancy will also produce an increase in sales tax revenues from tourist spending. This represents a substantial return to the City. The formation of a CVTMD in partnership with the CVCC and the CVCVB creates a stable funding source tied directly to tourism promotion 3. The Ability to Grow the Economy without Suhstantial Development The CVCC and the CVCVB expect to achieve the above levels of revenue growth without a proportionate increase in the "footprint" of the tourism industry infrastructure.. Little or no development should be required to raise average occupancy rates. Any development required to raise occupancy rates even more should be relatively minor in scope compared to the existing facilities. 4. The Opportunity to Fund Infrastructure West of Highway 5 and within the Eastern Urban Center The CVTMD will utilize 2% of the total gross revenues to repay a capital infrastructure bond. These bond monies will be used to construct needed improvements west of Interstate 5 and within the Eastern Urban Center. Chula Vista Tourism Marketing District Management District Plan Page 4 6-~7 ilt, ~A H;~T I', A T't3l;RI~?~1 l7AI~IsF.7'I\(. Di53'I2I('"I":' Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism districts. Tourism Marketing Districts allow lodging and tourism-related business owners to organize their efforts to increase tourism. Tourism-related business owners within the district fund a TMD, and those funds are used to provide services that the businesses desire and that benefit the lodging businesses within the District. Tourism Marketing District services may include, but are not limited to: - Operation of the Chula Vista Visitor Information Center - Marketing of the Area - Tourism Promotion Activities - Sales Lead Generation - Infrastructure Financing [n California, Tourism Marketing Districts are formed pursuant to the Property and Business Improvement District Law of 1994 (PBID Law). This law allow for the creation of a special benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other special benefit assessment districts is that funds raised are returned to the private non-proft corporation governing the district. There are many benefits to Tourism Marketing Districts: - Funds cannot be diverted for other government programs; - Tourism Marketing Districts are customized to fit the needs of each tourism district; - They allow for a wide range of services, including those listed above; - Tourism Marketing Districts are designed, created and governed by those who will pay the assessment; - The statute requires petition support from lodging businesses paying over 50% of the annual proposed assessments; - They provide a stable funding source for tourism promotion. The Property and Business Improvement District Law of 1994 (AB 3754), as amended January ], 2009, is provided in Appendix 1 of this document. Chula Vista Tourism Marketing District Maragemen[ District Plan Page 5 6-18 li'. (;11[,Lr~. V'I~"I':1'1'NI[~ f3i)UlO'I):A121' The Chula Vista TMD will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the city of Chula Vista. The boundary currently includes 23 lodging business. Please see the map below. A larger map is available on request by calling (619) 420-6603. ,; r ', ~. ,rN:~x>: ~i 1::-~%4 ' y ~~ ~q Y ;~ I r, Y ~ ~ ; VAa~.~^1Ii st ~ .vi ~ ~ _ ~ . ~ 1~ ~ ~`~ Zona 1 ~ I " _ 4 S i I i A I ~ llj Y C}tayl Rahcb ~~~ Zone 3 _~ ~y1 1 ._ Chula Vista Tourism Marketing District Management District Plan Page 6 6-19 ~F,R~ICr Pi:AN A~17 BUDCpF.T A. Assessment The Tourism Marketing District annual assessment rates are based upon 2.5% of gross short term (stays less than 31 days) room rental revenue per night for hotels or motels. Lodging business stays of 31 or more consecutive days shall not be assessed. Based on benefits received, stays at RV parks and campgrounds within the boundaries of the CVTMD shall not be assessed. Bonds may be issued. The amount of assessment, if passed on to each transient, shall be separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. B. Determination of Special Benefit State law provides that the expenses of the district shall be apportioned in proportion to the benefit received by assessed businesses. A special benefit is defined as a particular and distinct benefit over and above general benefits conferred on the public at large. Conversely, a general benefit is a benefit to businesses in the surrounding community or a benefit to the public in general resulting from the improvement, activity or service to be provided by the assessment levied. Many general benefits to the public at large are conveyed by municipal services, such as fire protection, police services and public transit services. These services are targeted to serve the public at large and do not confer special benefits on particular businesses. The services in this Management District Plan aze designed to provide targeted services to lodging businesses. These services are tailored not to serve the general public, but rather to serve the specific lodging businesses within the District, e.g., the proposed activities are specifically targeted to increase room nights for assessed lodging businesses within the boundaries of the District, and aze narrowly tailored. TMD funds will be used exclusively to benefit the assesses. The activities paid for from assessment revenue are lodging business services creating special benefit to those businesses. In addition, these activities are not for the benefit of the general public and do not provide general benefit as defined above. All general benefits (if any) to the surrounding community and general public aze intangible and unquantifiable. It is appropriate that these special business-related benefits be funded through business assessments. C. Time and Manner for Collecting Assessments The CVTMD assessment will be implemented beginning July 15, 2009 and will continue for five years. The assessments used to repay bond debt shall have a term of 30 years. The City of Chula Chula Vista Tourism Marketing District Management District Plan Page 7 6-20 Vista will be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in that the boundaries of the TMD. Assessments shall be collected monthly and the City shall take all reasonable efforts to collect the assessments from each lodging business. The City of Chula Vista shall forward the assessments to the CVCC which will have the responsibility to manage the TMD programs as provided in the Management District Plan. D. Service Plan Budget and Programs to be Provided: Service Plan Budget Summary- Calendar Years 2009-2014 The summary of the calendar year 2009 (year one) service plan budget for the CVTMD is provided on the following pages. The total five year improvement and service plan budget is projected at approximately $650,000 annually, or $3.25 million through 2014. E. Annual Service Plan: A service plan budget has been developed to deliver service levels throughout the District. An annual service plan and budget will be developed and approved by the CVCC Board. Please see the budget exhibit below. The budget also includes a portion for contingencies and renewal of the District. Should the CVCC Board approve, funds may be appropriated for the renewal effort. If there are funds remaining at the end of the District term and lodging businesses choose to renew, these remaining funds could be transferred to the renewed District. If there are funds remaining at the end of the District and lodging businesses choose not to renew, any remaining funds will be spent consistent with this Plan. Chula Vista Tourism Marketing District Management District Plan Page 8 6-21 Chula Vista Tourism Marketing District Annual Budget, Year One SALES and MARKETING $250,000 Sales and Marketing programs and activities willbe designed to at4ract -' overnight groups. These activities may include: • Lead Generation • Trade Shows ' • Sales Blitzes • Faniliarization Tours • Advertising '. • Collateral • Marketing Programs . . .Local Propertg. Visits • Director of Sales Meetings • ..General Manager Meetings. • .Professional Industry Conferences /.Affiliation Events ' • Stalling Costs COMMLINICATION5 and PUBLIC RELATIONS $300,000 Commutridations and Public Relations activities and .services will build greater awareness of theChula Vista businesses and the Chula Vista region. asatourism, meeting and eventdestination. Tkieseactivi ties may include: • Public, Community and Media Relations • Familiariza6onsTotirs • CVBEvents • Membership Solicitation4 Maintenance • Local Trade Shows and Events • CVB Web Site and Electronic Newsletter • CVSNewslettef. • Speaking E'ngageatents • Visitor Information Cemer/Servicing • Staffing Costs Repayment of Formation Expense ' $50,000 ADMINISTRATIVE/OPERATIONS ~ - $17,500 • Office Administrative/Operational Ezpegses • Legal/Accounting / TMD'RenewaI. (5%) Contingency $32,500. . This prudent&seak reserveisYO buffet the orgariizatian for any-, unexpected revenue changes and/or allow Ehe District to fundTMD modification and/or renewal costs. Total Tourism District Budget $650,000 Chula Vista Tourism Marketing District Management District Plan Page 9 6-22 V. BID GOVERNANCE A. Chaise S'i9ta Tnurisrn Misorketiug District C<rrl~ar:~tizau Gr:vernance The CVCC will serve as the Owners' Association for the CVTMD. The CEO of the CVCC will be charged with the day-to-day operations of the Tourism Marketing District. Chula Vista Tourism Marketing District Management District Plan Page 10 6-23 APPENDIX 1-THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 STREETS AND HIGHWAYS CODE SECTION 36600 et seq. As Amended,7anuary 1, 2009 Declarations 36600. This part shall be known and may be cited as the "Property and Business Improvement District Law of 1994." 36601. The Legislature finds and declares all of the following: (a) Businesses located and operating within the business districts of this state's communities are economically disadvantaged, are underutilized, and axe unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of the business districts of its cities in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow cities to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that benefits from those improvements. (d) Assessments levied fox the purpose of providing improvements and promoting actinides that benefit real property ox businesses are not taxes for the general benefit of a city, but axe assessments Eor the improvements and activities which confer special benefits upon the real property or businesses for which the improvements and activities are provided. 36602. The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within a business improvement area. This part does not affect or limit any other provisions of law authorizing ox providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing fox a different method of levying assessments for similar or additional purposes from those set foxth,in this part. A property and business improvement districtcreated pursuant to this part is expressly exempt from the provisions of the Special Assessment . Investigation, L.imitadon and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Any provision in this part that conflicts with any other provision of law shall prevail over the other provision of law. 36604. T1us part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes. Chula Vista Tourism Marketing District Management District Plan Page 11 6-24 Definitions 36606. "Assessment" means a levy Eor the purpose of acquiring, constructing, installing, or maintaining improvements and promoting activities which will benefit the properties or businesses located within a property and business improvement district. 36607. "Business" means all types of businesses and includes financial institutions and professions. 36608. "City" means a city, county, city and county, or an agenry ox entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 oETitle 1 of the Government Code, the public member agencies of which includes only cities, counties, ox a city and county. 36609. "City council" means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36610. "Improvement" means the acquisition, construction, installation, ox maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public xestrooms. (d) Lighting and heating facilities. (e) Decorations. (~ Parks. (g) Fountains. (h) Planting areas. (i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within thearea. (k) Ramps, sidewalks, plazas, and pedestrian malls. (1) Rehabilitation ox removal of existing structures 36611. "Property and business improvement district," ox "district," means a property and business improvement district established pursuant to this part. 36612. "Property" means real property situated within a district 36613. "Activities" means, but is not limited to, all of the following: (a) Promotion of public events which benefit businesses or real property in the district. (b) Furnishing of music in any public place within the district. (c) Promotion of tourism within the district. (d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (fl Activities which benefit businesses and real property located in the district. 36614. "Management district plan" or "plan" means a proposal as defined in Section 36622. Chula Vista Tourism Marketing District Management District Plan Page 12 6-25 366145. "Owners' association" means a private nonprofit entity that is under contract with a city to administer ox implement activities and improvements specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity fox any purpose, nor may its board members or staff be considered to be public officials fox any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all rimes when matters within the subject matter of the district axe heard, discussed, ox deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all documents relating to activities of the district. 366li. "Property owner or "owner" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. The city council has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this subdivision requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. 36616. "Tenant" means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner. Prior Law 36612 This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing ox providing for the furnishing of improvements or activities ox the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part. Establishment 36620. A property and business improvement district may be established as provided in this chapter.. 36620.5. A county may not form a district within the territorial jurisdiction of a city without the consent of the city councIl of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. (a) Upon the submission of a written petition, signed by the property ox business owners in the proposed district who will pay more than SO percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property ox business owner that is in excess of 40 percent of the amount of all Chula Vista Tourism Marketing District Management District Plan Page 13 6-26 assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property ox business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following: (1) A map showing the boundaries of the district. (2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following: (1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district. (2) A time and place Fox a public hearing on the establishment of the pxopexry and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. The management district plan shall contain all of the following: (a) A map of the district in sufficient detail to locate each parcel of propexry and, if businesses are to be assessed, each business within the district. (b) The name of the proposed district. (c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment ox extension in a manner sufficient to identify the affected lands and businesses included. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing pxopexry assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a propexry assessment district created pursuant to this part. (d) The improvements and activities proposed for each year of operation of the district and the maximum cost thereof. (e) Thetotal annual amount proposed to be expended for improvements, maintenance and operations, and debt service in each year of operation of the district. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property ox business owner to calculate the amount of the assessment to be levied against his ox her property or business. The plan also shall state whether bonds will be issued to finance improvements. (g) The time and manner of collecting the assessments. (h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. Chula Vista Tourism Marketing District Management District Plan Page 14 6-27 (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k) A list of the properties or businesses to be assessed, including the assessor's parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property ox business, to defray the cost thereof, including operation and maintenance. The plan may provide that all or any class or category of real property which is exempt by law from real property taxation may nevertheless be included within the boundaries of the district but shall not be subject to assessment on real property. (I) Any other item or matter required to be incorporated therein by the city councIl. 36623.(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed fox the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners of businesses in the proposed district which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. 36624. At tl:e conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment ox the type or types of improvements and activities to be funded with the revenues from [he assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements or activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. (a) If the city council, following the public hearing, decides to establish the proposed property and business improvement district, the city council shall adopt a resolution of formation that shall contain all of the following: (1) A brief description of the proposed activities and improvements, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement about whether bonds will be issued, and a description of the exterior boundaries of the proposed district. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements and activities and the location and extent of the proposed district. Chula Vista Tourism Marketing District Management District Plan Page IS 6-28 (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A detextnination regarding any protests received. The city shall not establish the district ox levy assessments if a majority protest was received. (3) A statement that the properties or businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements and activities to be provided in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district. (7) A finding that the property ox businesses within the area of the property and business improvement district will be benefited by the improvements and activities funded by the assessments proposed to be levied. (b) The adoption of the resolution of formation and recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan. 36626. If the city council, following the public hearing, desires to establish the proposed property and business improvement district, and the city council has not made changes pursuant to Section 36624, ox has made changes that do not substantially change the proposed assessment, the city council shall adopt a resolution establishing the district. The resolution shall contain all of the information specified in paragraphs (1) to (8), inclusive, of subdivision (b) of Section 36625, but need not contain information about the preliminary resolution if none has been adopted. 36627. Following adoption of the resolution establishing the district pursuant to Section 36625 or 36626, the clerk of the city shall record a notice and an assessment diagram pursuant to Section 3114. If the assessment is levied on businesses, the text of the recorded notice shall be modified to xefiect that the assessment will be levied on businesses, or specified categories of businesses, within the area of the district. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. The city council may establish one ox more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. The city council may levy assessments on businesses or on property owners, ox a combination of the two, pursuant to this part. The city councIl shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements and activities. 36629. All provisions of tMs part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, Chula Vista Tourism Marketing District Management District Plan Page 16 6-29 modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a parking and business improvement area. 36630. If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and a new district established pursuant to this part. Assessments 36631. The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution establishing the management district plan described in Section 36622. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem propexry tax, and may provide fox the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part shall be charged interest and penalties. 36632. (a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c) Properties zoned solely for residential use, ox that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service Eunded through these assessments, and shall not be subject to any assessment pursuant to this pact. 36633. The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634. The city council may execute baseline service contracts that would establish levels of city services that would continue after a pxopexry and business improvement district has been formed. 36635. The owners' association may, at any time, request tha[ the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. (a) Upon the written request of the owners' association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public meetings and public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public meeting. Chula Vista Tourism Marketing District Management District Plan Page 17 6-30 (2) A complete copy of the resolution of intention shall be mailed by fast class mail, at least 10 days before the public meeting, to each business owner ox property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. Financing 36640. (a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some ox all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides fox the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case maybe, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they axe to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised Erom assessments over 30 years. (c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced ox terminated if doing so would interfere with the timely retirement of the debt. Governance 36650. (a) The owners' association shall cause to be prepared a report foi each fiscal year, except the fast year, fox which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The owners' association's first report shall be due after the fast year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district ox any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used. (b) The xepoxt shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the xepoxt applies, and, with respect to that fiscal year, shall contain all of the following information: (1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements and the activities fox that fiscal year. (4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his ox hex property or business fox that fiscal year. Chula Vista Tourism Marketing District Management District Plan Page 1S 6-31 (5) The amount of any surplus ox deficit revenues to be carried over from a previous fiscal year. (6) The amount of any contributions to be made from sources other than assessments levied pursuant to this part. (c) The city council may approve the report as filed by the owners' association ox may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636. The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized ox executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. The management district plan may, but is not required to, state that an owners' association will provide the improvements ox activities described in the management district plan. IE the management district plan designates an owners' association, the city shall contract with the designated nonprofit corporation to provide services. Renewal 36660. (a) Any district previously established whose term has expired, may be renewed by following the procedures fox establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the pazcels ox businesses in the prior district. If the renewed district does not include parcels ox businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. Disestablishment 36670. (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city counc$ in either of the following circumstances: (1) If the city councIl finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assesses may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners of real property ox of businesses in the area who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason foe the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each Chula Vista Tourism Marketing District Management District Plan Page 19 6-32 Lusiness subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property ox business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. (a) Upon the disestablishment of a district, any remaining revenues, after all outstanding debts axe paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve ox construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished. All outstanding assessment revenue collected after disestabhshment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occues before an assessment is levied Eor the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund. Chula Vista Tourism Marketing District Management District Plan Page 20 6-33 APPENDIX 2 -LODGING BUSINESSES TO BE ASSESSED WITHIN THE CVTMD: Best Western Chula Vista La Quinta Inn Harborview Inn 150 Bonita Road 1089 Broadway 946 Broadway Chula Vista, CA 91910 Chula Vista, CA 91910 Chula Vista, CA 91911 (619) 691-1211 (619) 422-2967 (619)69T-6868 Ramada Inn Highway Inn Best Western South Bay 91 Bonita Road 70 Broadway Inn Chula Vista, CA 91910 Chula Vista, CA 91910 710 E Street (619)425-9999 (619)691-81 L8 Chula Vista, CA 91910 (619)420-5183 Travel Inn Mote16 394 Broadway 745 E Street Big 7 Motel Chula Vista, CA 91910 Chula Vista, CA 91910 333 Broadway (619)420-6600 (619) 422-4200 Chula Vista, CA 91910 (619) 422-9278 Avon Palomar Inn 99 Broadway 801 Palomar Street Days Inn Chula Vista, CA 91910 Chula Vista, CA 91910 699 E Street (619) 422-6002 (619) 423-9170 Chula Vista, CA 91910 (619) 585-1999 Bay Cities Motel Palomar Motel 846 Broadway 1160 Walnut Avenue EI Primero Botique Hotel Chula Vista, CA 91911 Chula Vista, CA 91911 416 Third Avenue (619)420-2951 (619)575-2944 Chula Vista, CA 91910 (619) 425-4486 Comfort Inn & Suites Riviera Motel 632 E Street 372 Broadway Chula Vista, CA 91910 Chula Vista, CA 91910 Good Nite Inn (619) 476-8635 (619) 422-1987 225 Bay Boulevard Chula Vista, CA 91910 Early California Travel Inn & Suites (619) 425-8200 692 H Street 235 Woodlawn Avenue Chula Vista, CA 91910 Chula Vista, CA 91910 Holiday Inn Express (619) 425-3862 (619) 427-9170 4450 Main Street Chula Vista, CA 91911 Farmhouse Motel Vagabond Inn (619) 422-2600 523 Amita Street 230 Broadway Chula Vista, CA 91910 Chula Vista, CA 91910 (619)422-5568 (619)422-8305 Chula Vista Tourism Marketing District Management District Plan Page 21 6-34