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HomeMy WebLinkAboutItem 7a. 2021-22 TBID Annual Report Item 7a Department: Administration Cost Center: 208-1006 For Agenda of: 10/18/2022 Placement: Business Estimated Time: 30 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Molly Cano, Tourism Manager SUBJECT: 2021-22 ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION 1. As recommended by the Tourism Business Improvement District (TBID) Board, receive and approve the TBID Board’s annual report for FY 2021-22; and 2. Adopt a Resolution of Intention entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring its intention to continue the San Luis Obispo Tourism Business Improvement District, to continue the basis for and to levy the assessment for the district, and to set a date for the Public Hearing on the district and the assessment for 2022-23.” DISCUSSION Policy Context As referenced in the City’s Municipal Code, 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report that outlines the past year’s efforts and how the funding was used and to what effect. Background In June 2008, the Council adopted Ordinance No. 1517 establishing a tourism business improvement district as requested by the local lodging industry. The distric t was formed under the State’s Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code and codified into the City’s Municipal Code under Chapter 12.42. Pursuant to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the a ppointed TBID Advisory Board is to submit an annual report (Attachment A) that outlines the past year’s efforts and how the funding was used and to what effect. Section 36534 further requires that after the approval of the annual report, the Council shall adopt a resolution of intention (Attachment B) to levy an annual assessment for that fiscal year. The resolution also sets a public hearing in order to receive any written or oral protests against the continuation of the TBID as required by the applicable statute. Page 43 of 161 Item 7a Annual Report On September 14, 2022, the TBID Board met in a regular monthly meeting to finalize the 2021-22 annual report for recommendation to the Council. Public noticing for the TBID Advisory Board meeting was performed through the posting of the agenda on the City’s website by 5:00 pm on September 9, 2022. For convenience, the agenda was also distributed to TBID constituents and stakeholders via email. The annual report reiterates the use of the TBID funds within the defined marketing platform that guides the strategy used to deliver on the TBID’s objective and goals. The annual report’s contents include: 1. TBID Background and Advisory Body 2. 2021-22 Year by the Numbers 3. Strategic Plan Implementation and Program Approach 4. 2021-22 Summary of Activities 5. 2021-22 Financial Statement 6. Looking Ahead to 2022-23 7. Charts and Graphs showing various results Next Steps Should the City Council approve the annual report and adopt the resolution of intention, a public hearing will be noticed for November 1, 2022. The public hearing will allow hoteliers to submit comments, voice concerns, and protest the assessment. As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the Council has the ability to continue the proposed citywide TBID at this public hearing, unless oral or written protests are received from City hoteliers that pay 50% or more of the proposed assessments. In that event, the Council cannot consider continuation of the TBID in the City for at least one year. Noticing Schedule Legal notices regarding the Council’s review and consideration of the TBID annual report were published in the New Times and mailed to TBID properties on October 6, 2022. For convenience, the link to the agenda was also distributed to TBID constituents and stakeholders via email. Previous Council or Advisory Body Action On September 14, 2022, the TBID Board approved the 2021-22 annual report for submission to Council and recommended the continuation of the TBID for fiscal year 2022-23 (Attachment C). Public Engagement This item is on the agenda for the October 18, 2022 Council Meeting and will follow all required postings and notifications. The public may have an opportunity to comment on this item at or before the meeting. All Advisory Body Meetings for the TBID were noticed in accordance with Brown Act standards. Page 44 of 161 Item 7a ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2021-22 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ $ State Federal Fees Other: Total $ $ $ $ The current unaudited year-end TBID Assessment Revenue for 2021-22 is $2,130,157, which is approximately $320,000 more than the budgeted amount, based on the calculation of 20% of the projected Transient Occupancy Tax (TOT) reflected on page 23 of the City’s 2021-23 Adopted Financial Plan Supplement. This is largely due to very strong revenues during the first and fourth quarter of the fiscal year. In 2022-23, the TBID projected revenue is $1,727,200 and is budgeted for program costs including staffing. Additionally, the City will retain approximately $34,544 of the assessment revenue- roughly 2% of 2022-23 TBID Assessment Revenue - to cover the City’s administrative costs associated with collecting and disbursing the assessment. Page 45 of 161 Item 7a ALTERNATIVES The Council may choose to not approve the report or levy the assessment. This action is not recommended as the advisory body has fully reviewed the report and recommended the approval to Council in order to move forward with the Public Hearing for the TBID. ATTACHMENTS A – SLO TBID 2021-22 Annual Report B – Draft Resolution of Intention to continue the SLO TBID C – TBID Draft Minutes from September 14, 2022 Page 46 of 161 SLO TBID ANNUAL REPORT 2021-2022 Page 47 of 161 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Advisory Body . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Advisory Body Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 2021-22 Year By The Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Strategic Plan Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Constituent Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Research Takeaways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Diversity, Equity and Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Visit San Luis Obispo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Marketing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Branding & Campaign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 SEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Digital Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Email Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Print Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Promotions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Guest Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Strategic Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Industry Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 2021-22 Awards & Accolades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Looking Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 TOT Chart For 2021-22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 TOT Distribution For 2021-22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 TOT Month To Month 2021-22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 OCC Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 ADR Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 REVPAR Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Strategic Imperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 CONTENTS Page 48 of 161 SLO TBID Annual Report 2021-22 3 In June 2008, the City Council adopted Ordinance 1517 establishing the Tourism Business Improvement District (TBID) in the City of San Luis Obispo as requested by the local lodging industry . The assessment of two percent of gross receipts for the district became effective on October 1, 2008 and the use of funds was defined in Section 12 .42 .030 of the Municipal Code as follows: “This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et . seq ., of the California Streets and Highways Code) . The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination .” The use of the assessment fund is based on the recommendation of the Tourism Business Improvement District advisory board (TBID Board) that is staffed by City of San Luis Obispo hotel owners, operators, and/or managers . The board members are appointed by the City Council and serve for an initial term of four years with the opportunity to serve a second term for a maximum of eight years . 2021-22 Tourism Business Improvement District Board BACKGROUND ADVISORY BODY NAME PROPERTY STATUS TERM CONCLUDES Clint Pearce ** * Madonna Inn Appointed May 2022 3/31/2026 David Smith* Hotel SLO Resigned June 2022 John Conner *Petit Soleil Resigned April 2022 LeBren Harris **Hampton Inn & Suites by Hilton 3/31/2025 Lori Keller Apple Farm Inn Appointed June 2022 3/31/2026 Matthew Wilkins La Cuesta Inn Resigned March 2022 3/31/2025 Megan Taylor The Kinney SLO Appointed June 2022 3/31/2024 Natalie Ward Hotel Cerro Resigned May 2022 Pragna Patel-Mueller Hotel Buena Vista 3/31/2023 Stephanie Bolles Courtyard Marriott Resigned April 2022 * Served as Chair for a portion of FY 21-22 ** Served as Vice Chair for a portion of FY 21-21 Page 49 of 161 SLO TBID Annual Report 2021-22 4 In addition to the governing City ordinance, the TBID Board established its advisory body bylaws and further defined its role and functions as: The functions and duties of the TBID Board shall include, but not be limited to, the following: A . Planning a comprehensive program to promote tourism to the City of San Luis Obispo and prepare an annual marketing program consistent with industry goals and objectives . B . Develop advertising and promotional programs and projects to benefit the lodging industry in San Luis Obispo . C . Present an annual assessment report to the City Council regarding the implemented promotional programs and projects . D . Perform any other lawful tasks as directed by the Council . The TBID Board meets monthly on the second Wednesday at 10 a .m . for its regular board meeting . In fiscal year 2021-22 (FY 21-22) the TBID Board began holding a monthly special meeting in addition to the regular board meeting . In total the Board met a total of 17 times for regularly scheduled monthly board meetings and special board meetings during the fiscal year, representing more than 34 volunteer hours annually per board member . ADVISORY BODY BYLAWS Page 50 of 161 SLO TBID Annual Report 2021-22 5 2021-22 YEAR BY THE NUMBERS In the 2021-22 fiscal year, the City of San Luis Obispo collected a record breaking $10 .6 million dollars in transient occupancy tax (TOT) . This number represents more than a 54% increase in revenue compared to FY 20-21, when the City began to experience the initial economic recovery from the COVID-19 pandemic . The actual collected TOT revenue in FY 21-22 exceeded the City’s initial adopted budget by over $3 .4 million dollars, as well as exceeded the revised budget adopted at supplement by over $1 .5 million dollars . This contribution of TOT revenue into the City’s General Fund is one of the direct benefits from tourism for the City, as the full collection of TOT revenue is retained by the City . Separately, the TBID retains the revenue collected through the TBID special assessment of 2%, which in FY 21-22 resulted in over $2 million dollars, nearly $700,000 more than projected . While this growth can in part be attributed to the success of the marketing programs performed by the TBID, there are a number of factors that positively impact this figure . One of those factors include the success of the two luxury properties in Downtown that appeal to a new level of visitor and price range for the community, as well as in December 2021 the City welcomed another new property which added an additional 112 new rooms into the marketplace . The fiscal year 2021-22 occupancy for the city experienced a great increase compared to the 2020-21 fiscal year, with the average annual occupancy rate at 67% for the 2021-22 year . While this growth of 15% year-over-year illustrates the continued recovery of visitors returning to travel with overnight stays in San Luis Obispo — when compared to occupancy pre-pandemic, it is still more than 3% below the 2018-19 fiscal year when annual average occupancy for the city exceeded 70% for the year . In addition, the results of the Average Daily Rate (ADR) in San Luis Obispo continue to set record breaking trends . In 2021-22 the annual ADR was approximately $193, which is almost $38 dollars more than the previous year, and $41 dollars more than the pre- pandemic year of 2018-19 for comparison . The last key indicator used by the TBID to gauge impact is RevPAR, defined as Revenue Per Available Room . In the 2021-22 fiscal year, the annual average RevPAR was up an incredible 41% from the prior year at the rate of $132 .57 on average . While these numbers present a snapshot of the status for the lodging properties, the TBID Board also tracks the visitation into the downtown Visitor Center to represent the foot traffic . In FY 21-22 the Visitor Center served 102,000 guests, which is up by nearly 14% compared to the previous fiscal year . MEASUREMENT FY 2021-22 RESULT % CHANGE FROM FY 2020-21 TOT $10,623,916 .63 54% TBID $2,124,783 .33 54% Occupancy 67%15 .2% ADR $195 .36 24 .1% RevPAR $132 .57 41 .4% See the appendix for complete graphs (Graphs for TOT/ADR/RevPAR/OCC) Page 51 of 161 SLO TBID Annual Report 2021-22 6 The TBID Strategic Plan serves as one piece of the framework for the direction and decisions made by the TBID Board for the tourism program this fiscal year . As defined within the plan, the TBID continues to focus on the fulfillment of five Strategic Imperatives: • Elevate the SLO Brand and Experience • Deliver Smart Growth • Build Meaningful Partnerships • Ensure Operational Excellence • Foster Destination Resilience Each of these imperatives contain objectives and initiatives that the TBID Board strives to achieve in the life of the plan . CHECK THE APPENDIX TO VIEW THE FULL STRATEGIC PLAN MATRIX This fiscal year, the TBID Board focused on the following strategic imperatives and initiatives in the execution of the work program: Elevate the SLO Brand and Experience • Identify the core SLO identity and develop a plan to market it • Develop a TBID Destination Stewardship approach Deliver Smart Growth • Develop an approach to monitoring local sentiment related to tourism • Identify structure & budget allocation for mid-week The examples of the accomplishments pertaining to these focus areas are highlighted throughout the annual report . STRATEGIC PLAN IMPLEMENTATION Page 52 of 161 SLO TBID Annual Report 2021-22 7 As a commitment to the imperative to “Ensure Operational Excellence,” the TBID Board continued to support constituent relations efforts in 2021-22 . To keep the lodging constituency abreast of all TBID business, the TBID Board was assigned properties to laisse . Each board member was responsible for communication with their respective group of hotels and then asked to report their findings during the “Hotel Update” portion of each Board meeting agenda . The TBID also leveraged the outreach support of the San Luis Obispo Chamber of Commerce's contracted services to perform weekly lodging call arounds and quarterly hotel visits . This resulted in 5,538 touch points with San Luis Obispo hotels through phone calls, emails and property visits to distribute important visitor serving collateral and PPE to all lodging properties in the City of SLO . This was an 11 .5% increase in connections compared to last fiscal year . CONSTITUENT RELATIONS Page 53 of 161 SLO TBID Annual Report 2021-22 8 Over the past year, the TBID Board completed a variety of brand research programs through self-directed and co-op commitments . These studies helped to increase the TBID’s knowledge and ability to have specific data and valuable insights to help further guide the efforts to develop program actions . This information is increasingly important because the trends, behaviors, preferences and motivators of travelers have changed as a result of the pandemic . By investing in this research, the TBID is now better prepared to respond to those changes via adjustments to San Luis Obispo promotional strategies . The research areas included: BRAND HEALTH & EQUITY RESEARCH (FALL 2021) • This study was an analysis of the San Luis Obispo destination brand from a qualitative and quantitative perspective . • These insights and takeaways continue to guide TBID marketing efforts . SLO CAL DEI RESEARCH (SUMMER 2021) • Through this co-op with Visit SLO CAL, the TBID gained essential DEI insights that helped to implement new strategies and expand diversity within TBID-owned assets . BRAND TRACKER & LOCAL SENTIMENT (WINTER 2021/SPRING 2022) • This Brand Tracker research has allowed the TBID to set a baseline and trackable measure of sentiment towards SLO as a branded destination, among locals and prospective visitors . • TBID will continually use these baselines in order to measure progress in key areas . As a result, these findings are reflected in the 2022-24 TBID Strategic Marketing and Business Plan and serve as a guide to the approach to the TBID work moving forward . RESEARCH Page 54 of 161 SLO TBID Annual Report 2021-22 9 San Luis Obispo as a destination has a lot of opportunity to position itself in the competitive set, since it has low levels of brand awareness. The lack of an emotional connection through advertising has resulted in a familiarity, trial and conversion issues for overnight stays. • Takeaway: The newly established brand platform provides a successful foundation we can continue to improve upon in order to create emotional connections through the “Live the SLO Life” brand . SLO as an activities hub for a weekend getaway (or longer) is a strong message that resonates with our audience. • Takeaway: The “Homebase Away from Home” positioning, which focuses on SLO being an activities hub, is a strong messaging strategy that resonates with travelers . SLO embodies what people love about California, while avoiding much of what people dislike about it. • Takeaway: The “small-town California” positioning provides a great opportunity to highlight the variety of boutique shops, history, art, culture, restaurants, the outdoors and more that SLO has to offer within our messaging strategies . SLO has an opportunity to own the following destination features: Food & Beverage; A Happy Feel-Good Community; Ultra- convenient hiking/biking. • Takeaway: By continuing to focus on these three destination features, we can work to establish a stronger brand awareness tied to SLO’s unique destination offerings . We’ll want to emphasize Food & Beverage especially as SLO has a real opportunity to truly own this destination feature by highlighting the Farmer’s Market, the abundance of great farm-to-table restaurants and impressive wineries . RESEARCH TAKEAWAYS Page 55 of 161 SLO TBID Annual Report 2021-22 10 DIVERSITY, EQUITY AND INCLUSION The TBID shares in the global mission for inclusion and change . Along with partner destination marketing organizations like Visit SLO CAL, the TBID is committed to spreading the message that San Luis Obispo is a welcoming and safe destination for all . As an ally, the TBID listens and continuously reflects to fully understand that demand for more direct action so that all people can unequivocally feel welcomed here . It is in the TBID organization’s DNA to treat all persons equally, with dignity and respect, regardless of race, religion, creed, color, national origin, ancestry, age, sex, sexual orientation, gender, gender identity or disability status . The TBID is committed to sharing these values with everyone who travels to San Luis Obispo . The TBID’s commitment to advance Diversity, Equity and Inclusion within the tourism efforts was addressed in a few of the highlighted program areas this year: • EDI Audience & Asset Alignment Study in partnership with Visit SLO CAL: The study was designed to help Visit SLO CAL and the TBID identify gaps in product offerings to inform tourism development initiatives . It also provided direction to the images and messaging that will enable the TBID to effectively communicate the leisure product and invitation to these audiences . A few takeaways from the report included: The City of San Luis Obispo has a relatively high level of familiarity among diverse travelers, especially those in California . Additionally, the city is seen as safe, welcoming and tolerant by a strong majority of travelers in every segment . The destination is also seen as a place where people feel like they belong . The strongest marketing positions for the city are Small Town Charm and Dining & Drinking . • Expansion of diversity within TBID-owned marketing assets: the TBID completed an analysis of the marketing assets used for TBID promotion and based on the information resulting for the EDI study the TBID invested on the production of photo assets to support the findings . • Targeting more diverse audiences through paid media and public relations . Page 56 of 161 SLO TBID Annual Report 2021-22 11 SUSTAINABILITY For the TBID, being good stewards of the destination and promoting conscientious travel is a responsibility . The TBID continues to educate travelers on how to enjoy SLO responsibly by supporting the local community, protecting culture and heritage and leaving as light of an environmental footprint as possible . Although tourism will never be completely sustainable, the TBID does its part to protect and preserve beautiful San Luis Obispo . This year the TBID made new commitments to advance sustainability and climate action within the tourism efforts . A few program highlights included: • Creation of identity for the sustainability efforts of the TBID called Sustainable SLO which included sharing the Sustainable SLO message through marketing efforts including public relations and owned content . • Development of a carbon offset program in the form of Keys for Trees . Through this program 1% of the TBID’s projected revenue was directed to planting trees in San Luis Obispo as part of the Office of Sustainability and Natural Resources’ program with EcoSLO . • Promoting off-season and mid-week travel which took the form of a new TBID promotional campaign called The MidWeekend . Page 57 of 161 SLO TBID Annual Report 2021-22 12 VISIT SAN LUIS OBISPO Over the 13 years that the TBID has been in operation, the organization has struggled with the public-facing identity . As part of the strategic plan work to Elevate the SLO Brand and Experience, the Board undertook the effort to address this issue . Based on the findings of the research study, the opportunity for repositioning following the COVID-19 pandemic, and the new approach with the marketing agency - in the winter of FY 21-22 the TBID Board directed the marketing agency to establish a brand book to describe what the destination marketing organization stands for, how it benefits travelers and locals and why it stands out . Through this project, the Board defined the identity of the TBID from a naming standpoint within the Visit San Luis Obispo brand, the TBID organization and the San Luis Obispo destination . As a result, the TBID adopted a new approach to the identity: • The formal, public-facing name for the brand and organization is Visit San Luis Obispo . The organization should be referred to that way in all marketing materials . This helps distinguish us from Visit SLO CAL, plus the name “San Luis Obispo” is distinct, memorable and known far and wide–while “SLO” is more familiar to those within close proximity to San Luis Obispo . It’s okay to refer to us as Visit SLO in conversation and and casual non-public uses . (It's only natural!) • We are structured as a TBID (Tourism Business Improvement District), which is also how we are legally named, but that is different than our public facing brand . • Since San Luis Obispo is known as being an amazing community and university town, but is less known for being a vacation destination, it’s important that we use “Visit” on our website and marketing materials . While some destinations drop the “Visit” when marketing, for us, this will clearly signify we’re a tourism entity inviting people to come pay a visit and Live the SLO Life . Page 58 of 161 SLO TBID Annual Report 2021-22 13 MARKETING ACTIVITIES To ensure that the TBID's marketing programs are intercepting travelers at all stages of the traveler’s journey, the TBID's and the team of agencies utilized different marketing levers across that journey . This multi-pronged approach drove an efficient and effective conversion strategy . The SLO brand messages and the areas of opportunity were adapted to tease potential travelers across the journey . In addition, looking across the travelers’ journey also helped the TBID's incorporate and account for the fluctuations in the travel behavior . To implement the complex marketing programs, the TBID's Board and staff worked closely with the team of contractors including the marketing agency-of-record Noble Studios, PR agency DCI, the San Luis Obispo Chamber of Commerce for Public Relations and Guest Service initiatives, and the new Content Marketing contractor Badger Branding for organic social media content and management . • Aim to create brand awareness & connection • Create shareable content that inspires travel • Bring prospects to the website to encourage research and discovery about what makes the destination special and unique • Help prospective travelers plan with destination-specific content • Encourage travelers to visit key stakeholder pages to book & plan their trip SERVICES • Organic Social • Paid Social • Display Ads • Email • PR • Influencers SERVICES • Website Experience • Organic Search • Paid Search • Organic Social • Paid Social • Display Ads • 3rd Party Ads • Email • PR • Print SERVICES • Organic Search • Paid Search • Paid Social • 3rd Party Ads • Website Experience • Email SERVICES • Website Experience • Email • Organic Social SERVICES • Organic Social • Keep the conversation going to amplify our message • Utilize website to plan in-destination moments and activities • Find up-to-date safety information DREAMING PLANNING BOOKING EXPERIENCING SHARING Page 59 of 161 SLO TBID Annual Report 2021-22 14 POSITION (Distinctly stand out among competition) PROMISE (Clear messaging and identity that connects) PURPOSE + PERSONALITY + PRINCIPLES (United brand & culture) BRANDING & CAMPAIGN The TBID, known as Visit San Luis Obispo, manages the tourism brand for the destination of San Luis Obispo, delivering balanced growth of tourism with creativity and integrity . The Visit SLO brand supports the TBID’s initiatives to share the abundance of SLO, drive the lodging economy and serve as the voice of the TBID stakeholders . Page 60 of 161 SLO TBID Annual Report 2021-22 15 PURPOSE HEARTS IN BEDS If putting “heads in beds” is our business purpose, putting “hearts in beds” is our brand purpose . We live to share all that San Luis Obispo stands for so we can emotionally connect with and welcome people who will fall in love with our community in such a way that they actually become part of it, caring for it like they live here and returning time and time again . PROMISE A CHANCE TO LIVE THE SLO LIFE The “SLO Life” is a deep breath that releases life’s pressures . It’s a change of pace . It’s a fresh take . It’s a warm embrace . It’s a feeling of comfort and calm in a welcoming place filled with a special energy, connection, creativity and a wholehearted spirit . You can feel the “SLO Life” wrap its arms around you and pull you close . It’s tangible . And you’ll never want to let that feeling go, so you live the “SLO Life” to its fullest while you’re here and take a piece of it with you when you head back home . POSITION HOMEBASE AWAY FROM HOME You don’t just visit SLO on vacation, you become part of our community and culture, an honorary local . The welcoming waves hello, neighborly nods and small-town California charm instantly make you feel comfortable and allow you to start living the “SLO Life .” As you immerse yourself in our city, you bond with it and start to feel a sense of belonging that blends with the beauty of life’s stresses being released because you’re away–it truly feels like a home away from home . And with the beaches, iconic sites and stunning beauty of the world-class Central Coast nearby, it’s also an incredible homebase during your vacation . SLO is the ideal homebase away from home . Page 61 of 161 SLO TBID Annual Report 2021-22 16 In FY 21-22, the new brand platform gave rise to the brand line, “Live the SLO Life”—a call to action to not just visit, but embrace the bright, laid-back, welcoming, progressive and fresh lifestyle of San Luis Obispo . For the TBID’s brand campaign, it was important that the brand was flexible enough to allow for crafted messaging to align with our target audiences and their unique interests in things like outdoor adventure, wine and family vacations . With this foundation in place, a fully integrated marketing campaign was launched in October 2021 with a friendly invitation to new and returning visitors to, “Say Hello to the SLO Life .” BRANDING & CAMPAIGN Page 62 of 161 SLO TBID Annual Report 2021-22 17 WEBSITE SEO ↑ 51% Overall Traffic YoY ↑ 95% Organic Traffic ↑ 6% Bounce Rate ↑ 205% Organic Hotel Referrals ↑ 62% Organic Pageviews to Optimized Pages ↑ 51% New Users YoY ↑ 207% Things to Do Partner Referrals YoY ↑ 205% Hotel Partner Referrals YoY VisitSLO .com is the City’s official tourism website and the primary marketing tool used to represent the destination . It is designed mainly for consumers, but also serves the travel trade, meeting planners, TBID members and media . The website is the cornerstone of all our marketing efforts — everything flows to or from the website . Because of its paramount importance, the TBID continued to improve upon its stability and user experience throughout the year . As a result, during the FY 21-22 and through the overall marketing efforts, the website saw increased traffic as well as lodging and things to do conversions . Search Engine Optimization (SEO) ensures the relevancy and success of the TBID’s website . Build website authority to improve VisitSLO .com’s positioning and findability on search pages . By developing depth of content and optimizing existing content, VisitSLO . com saw increased organic traffic to optimized pages and encouraged users to engage with the website by improving user experience . Page 63 of 161 SLO TBID Annual Report 2021-22 18 DIGITAL MEDIA The digital media efforts in FY 21-22 were focused on driving overnight stays . Using up-to-date research surrounding traveler sentiment, media consumption patterns, and booking behavior as a guide, the media was continually evaluated and shifted . The goals were to: • Deliver a paid media strategy that focuses on converting potential travelers with lower funnel tactics . • Strategically manage spend to be efficient and effective to maximize the budget . As a result, when compared to the same channels in FY 20-21, VisitSLO .com saw growth in awareness, traffic and engagement with a 39% increase in budget . This year, the TBID also introduced TripAdvisor, Connected TV and paid advertisements on TikTok as channels into the digital media mix . ↑ 20% Paid Traffic YoY 30.9 MIL Paid Impressions 13.20% Paid Search CTR Benchmark 4 .68% 0.99% Paid Social CTR Benchmark 0 .90% ↑ 241% Paid Homestay Referrals YoY ↑ 207% Paid Hotel Referral YoY EMAIL MARKETING The TBID continued to utilize email marketing activities through the newsletter to communicate regularly with potential visitors on activities in SLO to build brand loyalty and encourage repeat visitation and an extended length of stay . Send timely and relevant newsletters to Visit SLO subscribers to keep San Luis Obispo top of mind as a destination and keep them educated on the changing travel landscape in the city . As a result, the TBID saw increases in open rate and click rate in the emails sent this year which is attributed to A/B testing, and more personally relevant and engaging emails . ↑ 30% Avg . Newsletter Open Rate ↑ 2% Avg . Click Rate 11 General newsletters sent 17 Emails sent in total Page 64 of 161 SLO TBID Annual Report 2021-22 19 PRINT ADVERTISING Limited print advertising placements were continued in the TBID’s media mix for FY 21-22 . Traditional print campaigns are an important tool to reach niche market visitors primarily in the mature demographic and to reinforce travel inspiration while building brand awareness for the destination . Placements Included: • Visit SLO CAL Visitors Guide • SLO Chamber Visitors Guide • Cal Poly Program Ad & Visiting Teams Guide • Central Coast Tourism Council Map • SLO Life Journal HELP KEEP OUR HILLS GREEN & SKIES CLEAN SLO LIFE TIP #23 Every hotel night booked in SLO gets us one step closer to our city’s goal of being carbon neutral by 2035. Did you know that Visit San Luis Obispo’s Keys for Trees program donates a portion of all local hotel room charges to plant trees in our community? This is one of the ways SLO visitors can travel sustainably and help support our city’s vision to be carbon neutral by 2035. Learn about our goal to plant 10,000 trees and our other sustainable tourism initiatives at VisitSLO.com/Sustainable-SLO Book your stay at VisitSLO.com/Find-a-Hotel WE’RE SAN LUIS OBISPO. THINGS TO DO The city of San Luis Obispo and the surrounding region stun 365 days a year. The good times roll year round in Mustang Country. When you’re not on the field or the court, there’s so much to enjoy: • Find local goods and enjoy live entertainment at the Downtown SLO Thursday Night Farmers’ Market • Explore historical sites like Hearst Castle and Mission San Luis Obispo de Tolosa • Taste libations from more than 250 wineries across the county • Go beach tasting at iconic California beaches • Have a slice of pink champagne cake at the Madonna Inn • Hike and bike around the Nine Sisters • Catch a show at the Fremont Theater 1-877-SLO-TOWN • VisitSLO.com Follow us: @ShareSLO QEAP Terrace Hill Lucy’s Coffee Ginos Pizza Bubblegum Alley Downtown SLO Farmers’ Market But you can call us SLO. We’re small-town California with big-time charm. And, of course, we’re home to the Cal Poly Mustangs. We can’t wait to welcome your team! Located between San Francisco and Los Angeles, San Luis Obispo sets itself apart as the ultimate homebase for exploring California’s Central Coast. It’s the perfect place to lay your head after a long day of athletic competition, exploration, celebration and more. To get here, take Highway 1 or 101—we’re right off the road whether you’re coming from north or south. We’re also easily accessible if you need to fly in. San Luis Obispo Regional Airport puts you just 10 minutes from Cal Poly. Page 65 of 161 SLO TBID Annual Report 2021-22 20 SOCIAL MEDIA The goal of the TBID’s social media channels — ShareSLO — is to continue to engage locals and visitors alike while optimizing the TBID’s efforts and further establishing a clear value to follow ShareSLO on organic social media . As a new direction in FY 21-22, the TBID retained a new contractor, Badger Branding, to specialize in this work effort . Some of the dedicated highlighted work included: • Increased video content via Instagram Reels resulting in over 157,000 views • Maintained consistent story posting/sharing tagged stories • Continued use of user generated content via CrowdRiff • Increased giveaways on Instagram • Created four Guides on Instagram: SLO Hikes, SLO Coast Wine Region, SLO Sweet Treats, Coastal BBQ • Changed look and content of Instagram Highlights • Phased out Twitter platform • Created LinkedIn Profile QEAC Visit San Luis Obispo Social Media Channels Page 66 of 161 SLO TBID Annual Report 2021-22 21 PUBLIC RELATIONS In FY 21-22, the TBID continued the approach to Public Relations contract efforts which included a joint contract between the TBID and Promotional Coordinating Committee (PCC) with the San Luis Obispo Chamber of Commerce for Public Relations efforts, plus the TBID continued with the national Public Relations agency, DCI . On behalf of the City’s Community Promotions program, the SLO Chamber is responsible for establishing professional relationships with media outlets and journalists in various markets to build and maintain awareness of San Luis Obispo as a travel destination . Then to further expand the proactive destination Public Relations efforts, DCI is responsible for national media relations and influencer management . In the spirit of building a resilient program and through the cooperative effort, the TBID established a Most Wanted Media List that will continued to be used to target top tier media and influencers to tell the unique stories that SLO can offer which were also defined through the development of the TBID’s Story Idea database . The City’s core values of sustainability and DEI are both lead focuses in that work . The goal for PR in FY 21-22 was to curate foundational aspirational content to keep people inspired and excited about travel, generating and securing media leads for the City of SLO that speak to our targeted audiences — including drive markets — and building and strengthening relationships with target media and digital influencers who are the catalyst to generating awareness of the destination and its diverse experiences . As an indicator of the going COVID-19 recovery, in April 2022 the TBID hosted the first media group familiarization or press trip (FAM) since before the start of the pandemic . The FAM included five media representatives invited to San Luis Obispo for four-days to experience the destination and write stories related to sustainable travel in SLO . The journalists represented publications like SmarterTravel, Travel Noire, The Daily Beast, TravelAwaits, and TravelPulse . Within a month of the trip every journalist published at least one story related to the trip . Overall, as a result of the overall Public Relations efforts, in FY 21-22 San Luis Obispo received over 270 mentions in media articles, of which 91 placements were attributed to the proactive work . Top media coverage included: the Los Angeles Times, Forbes and CNN Travel . 643 MIL Circulation 25 MIL Media Impressions $5.9 MIL Ad Equivalency 606/910 Qualitative Score 91 Total Number of Placements 22 OUTLETS 29% MWM List Penetration Page 67 of 161 SLO TBID Annual Report 2021-22 22 PROMOTIONS In FY 21-22 and with the recovery of the travel landscape, the TBID reintroduced the concept of seasonal promotional campaigns into the marketing mix . The purpose of the promotions is to drive visitation during a targeted need time by incentivizing the traveler to book in San Luis Obispo . This year the approach was to drive midweek stays which support the TBID’s strategic imperative to Deliver Smart Growth, as well as align with the destination stewardship and sustainability efforts by encouraging travel outside peak periods . The MidWeekend Why should weekends get all the fun? When you Live the SLO Life, every day feels like Saturday . We call it the MidWeekend . In the spring of 2022, the Midweekend promotional campaign was launched to help drive midweek stays in the City of San Luis Obispo . To help sweeten the deal, visitors were offered a $100 gift card bundle to use at local businesses when they booked two nights between Sunday and Thursday . The promotional campaign was integrated into the existing paid media plan with a focus on reaching our outdoor, relaxation, wine and dine and remarketing audiences in order to send potential travelers to the MidWeekend landing page to get direct access to information on the special offer . Page 68 of 161 SLO TBID Annual Report 2021-22 23 GUEST SERVICES Through a dedicated contract with the TBID, the San Luis Obispo Chamber of Commerce provides a suite of guest services to the TBID . In FY 21-22, the SLO Chamber was contracted for the Visitor Center to answer each call made to the TBID’s 1-877-SLO- TOWN number, which serves as a response tool to the TBID’s advertising efforts and digital presence . This creates the option for a “real person” to assist in trip planning, ensuring that travelers seeking personal guidance have a friendly, live voice to shape their experience of San Luis Obispo before even arriving . The telephone number, 1-877-SLO-TOWN, is a separate line that rings in the Chamber and is used solely to refer TBID properties and promote San Luis Obispo as a destination . During FY 21-22 nearly 1,500 calls were answered on the 1-877-SLO-TOWN line . The Guest Services also included the Live Chat widget on VisitSLO .com that received hundreds of conversations throughout the year . New this year, the Visitor Center also provided response and fulfillment for all the direct or consumer sales support . This support extended the phone and digital support which served nearly 25,000 customers in FY 21-22 . However, with this direct-to-consumer support, new information packets were created and mailed to meet the requests of over 750 potential visitors . Page 69 of 161 SLO TBID Annual Report 2021-22 24 EVENTS In FY 21-22, destination events began to return to San Luis Obispo . While the recovery is still in progress, the TBID Board considered the funding for these events on a case-by-case basis using the general application established in FY 19-20 . Events Sponsored: • Spartan Race in partnership with Visit SLO CAL • Roll Out the Barrels Weekend with SLO Coast Wine Collective • Funding toward the return of the in-person Sustainable AG Expo with Central Coast Vineyard Team STRATEGIC PARTNERSHIPS The TBID collaborates with numerous community partners and industry nonprofit organizations in marketing San Luis Obispo as a destination which makes the TBID more efficient in promotional activities . The TBID’s strategic partnerships allow the marketing agencies to build relationships with the organizations below, elevating the destination as a whole . Promotional opportunities with each organization give the TBID new platforms and audiences to build brand awareness . This year the TBID leveraged partnerships to share updates on destination information . In particular, the partnership with Cal Poly’s Office of Student Affairs was extremely valuable this year with the virtual presentations to Cal Poly Parents and Supporters during the virtual SLO Days . As the on-campus event returned, the TBID also participated in Mustang Family Weekend and Open House . In FY 21-22 the TBID also brought back the partnership with Cal Poly Athletics and Mustang Sports . This partnership included the sponsorship of the athletic program in exchange for marketing benefits and the hosting of the rooms using the sponsorship fee in SLO TBID properties . Top partnerships included: • SLO Coast Wine Collective • Cal Poly’s Office of Student Affairs – New Student & Transition Programs and Parent Program • Cal Poly Athletics – Mustang Sports • ECOSLO with Keys for Trees Page 70 of 161 SLO TBID Annual Report 2021-22 25 INDUSTRY RELATIONS CALIFORNIA HOTEL & LODGING ASSOCIATION (CHLA) The California Hotel & Lodging Association (CHLA) protects the rights and interests of the California lodging industry . Legislative advocacy, educational training, communication and cost-saving programs are provided for all segments of the industry . Through the TBID, all lodging properties in the City of SLO are members of CHLA and can utilize the services offered . In FY 21-22, CHLA continued to partner with the TBID to provide PPE for all lodging properties in San Luis Obispo . VISIT CALIFORNIA The Visit California partnership has been critical in the growth of the TBID’s brand within the California Tourism product . San Luis Obispo has received coverage through the marketing activities performed by Visit California including travel trade, press and industry outreach . Monthly submissions are uploaded to Visit California for media outreach, trade contacts and newsletter content . In FY 21-22 the TBID was also a Poppy Award Nominee . CENTRAL COAST TOURISM COUNCIL The Central Coast Tourism Council (CCTC) is an organization of tourism and hospitality professionals whose marketing efforts accomplish collectively what no single tourism entity can do alone — promote the entire California Central Coast as a destination and maximize our members’ tourism revenue . The CCTC serves as the Central Coast's voice in Sacramento, and partners with California Tourism's global marketing and advertising campaigns . The TBID is actively involved in CCTC with the Tourism Manager as the Past President and Regional Board Member . In FY 21-22, the TBID leveraged the CCTC activities through media and trade leads, blog and social presence, as well as cooperative participation marketing campaigns . The TBID also leveraged CCTC to participate in the 2021 IPW international trade conference held in Las Vegas in September 2021 . VISIT SLO CAL The TBID maintains participation with Visit SLO CAL by having a representative on the Board of Directors and the Tourism Manager on the Marketing Committee . The TBID Board leverages the partnership with Visit SLO CAL to promote San Luis Obispo on a national and international level — beyond the local and state reach the TBID’s marketing plan focuses to achieve . The TBID’s participation in Visit SLO CAL also encompasses group sales, film commission, countywide public relations and countywide special events like Restaurant Month and Wine Month, not to mention inclusion in countywide strategic planning efforts, Destination Management efforts and the renewal of the Tourism Marketing District — to name a few . The TBID also leveraged Visit SLO CAL partnership to participate in the 2022 IPW international trade conference held in Orlando in June 2022 . Page 71 of 161 SLO TBID Annual Report 2021-22 26 2021-22 AWARDS & ACCOLADES This year, we won several awards for our brand and campaign work done in conjunction with Noble Studios AAF RENO ADDY Gold for copywriting AAF RENO ADDY Silver for corporate social responsibility collateral (brand elements) AAF RENO ADDY Silver for online film, video and sound in a campaign COMMUNICATOR AWARDS Award of Excellence for a B2C campaign AAF RENO ADDY Silver for an online/interactive campaign HERMES CREATIVE AWARDS Gold for a social media campaign Page 72 of 161 SLO TBID Annual Report 2021-22 27 2021-22 FINANCIAL STATEMENT INCOME SOURCE 2021-22 2021-22 TOT Revenue Assumption * $7,213,000 2021-22 TBID Assessment Revenue Assumption * $1,442,600 Fund Balance Transfer $285,190 Fund Reserve $100,000 2021-22 TBID Program Budget $1,727,790 EXPENDITURE ALLOCATED Operations/Staffing Administration Overhead (2% of TBID Assessment) $28,852 Staffing (FTE & .75 FTE) $228,000 Contracts & Marketing Services Marketing Contract - Noble Studios/DCI $1,017,190 Chamber of Commerce - PR $45,000 Chamber of Commerce - Guest Services $47,500 Co-Op Program Funding $30,000 Content Marketing Services - Badger Branding $86,000 FAM Trip Hosting $5,000 Partnerships & Promotions SLO Coast Wine Collective Associate Membership $5,000 Sustainability Initiative- ECOSLO $15,000 Event Sponsorship $14,500 Tradeshows Tradeshows $15,000 Tourism Conferences $8,000 Tourism Organizations CCTC Dues $1,000 Smith Travel Report $3,500 CalTravel Membership $1,000 California Hotel & Lodging Association $27,286 Research + Program Research + Program Development $80,000 Support / Meetings Tourism Program Expenses $5,000 Services/Online Tools/Fulfillment (Dropbox, Crowdriff, Survey Monkey) $5,500 Contingency Contingency Fund $31,440 Totals Commited $1,699,768 Funds Remaining $28,022 Total Allocated Expenditures ** $ 1,727,790 * This figure was not adjusted within the TBID operating program budget following the Adopted Supplement Budget ** This figure represents the total allocated expenditures. The difference will be available for carryover to the 2022-23 program budget. Page 73 of 161 SLO TBID Annual Report 2021-22 28 LOOKING AHEAD As the TBID moves into FY 22-23, the key focus areas that remain top of mind for the work of the Board in the next fiscal year: • Continued conscious approach to Diversity, Equity and Inclusion in all TBID programs • Expanded Destination Stewardship through the Sustainable SLO program for visitors • Establishing the Visit San Luis Obispo brand • VisitSLO .com redesign While these are not the only subjects that the TBID Board will be focused on, these four will influence the approach to all TBID related work efforts . In 2022-23, the Board is committed to the continued implementation of the TBID Strategic Plan and the newly adopted two-year 2022-24 TBID Strategic Marketing & Business Plan . These plans provide a foundation for building the Visit San Luis Obispo brand and establishing real tactics for consistently improving tourism in the City of San Luis Obispo now and into the future . LOOKING AHEAD Page 74 of 161 SLO TBID Annual Report 2021-22 29 APPENDIX TOT CHART FOR 2021-22 TOT DISTRIBUTION FOR 2021-22 12,000,000 6,000,000 4,000,000 $615,972 .30 $10,031,635 .32 0 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 2015-16 2016-17 2018-19 2019-20 2020-21 2021-222017-18 Homestay Hotel Page 75 of 161 SLO TBID Annual Report 2021-22 30 TOT MONTH TO MONTH 2021-22 2,000,000 1,000,000 500,000 0 July Aug .Sept .Oct .Nov .Dec .Jan .Feb .Mar .Apr .May June Page 76 of 161 SLO TBID Annual Report 2021-22 31 OCC MONTH TO MONTH 100 50 25 0 2019-20 2020-21 2021-22 Oct .Sept .Aug .July JuneMayApr .Mar .Feb .Jan .Dec .Nov . Page 77 of 161 SLO TBID Annual Report 2021-22 32 ADR MONTH TO MONTH 190+ 120(Revenue $)150 90 0 2019-20 2020-21 2021-22 JuneMayApr .Mar .Feb .Jan .Dec .Nov .Oct .Sept .Aug .July Page 78 of 161 SLO TBID Annual Report 2021-22 33 REVPAR MONTH TO MONTH 190+ 120(Revenue $)150 90 0 2018-19 2019-20 2020-21 Oct .Sept .Aug .July JuneMayApr .Mar .Feb .Jan .Dec .Nov . Page 79 of 161 SLO TBID Annual Report 2021-22 34 SLO TBID STRATEGIC IMPERATIVES - FY 19-24 IMPERATIVE OBJECTIVES INITIATIVES Elevate the SLO Brand and Experience • Increase visitor awareness in target markets • Increase positive visitor perception PRIORITY 1: • Integrate the City’s priorities into the execution of the TBID’s marketing strategies • Identify the core SLO identity and develop a plan to market it PRIORITY 2: • Develop a TBID Destination Stewardship approach PRIORITY 3: • Identify opportunities to influence community placemaking and destination management efforts Deliver Smart Growth • Exceed California’s RevPAR growth over FY21 baseline • Year-over-year growth in ratio of weekday to weekend occupancy PRIORITY 1: • Develop an approach to monitoring local sentiment related to tourism PRIORITY 2: • Influence the SLO conference center development plan and effort • Identify structure and budget allocation for midweek and group business PRIORITY 3: • Develop a local business travel program to drive visitation Build Meaningful Partnerships • Increase average Earned Partnership Value score over 2022 baseline • Grow economic impact of tourism in SLO by 2024, over 2017 baseline PRIORITY 3: • Identify and develop BOLD partnerships that generate overnight stays • Create a partnership management plan using measurable goals that are in line with our TBID mission Ensure Organizational Excellence • Growth in member newsletter open rates • Growth in stakeholder satisfaction score on survey PRIORITY 1: • Establish and document a process to execute, evaluate and track strategic plan PRIORITY 2: • Identify opportunities to streamline governance and leverage constituency of TBID Foster Destination Resilience • Year-over-year growth in TOT over FY21 baseline PRIORITY 1: • Implement COVID-19 Response Plan PRIORITY 2: • Document lessons learned from COVID era to feed resilience assessment PRIORITY 3: • Perform a destination resilience assessment Page 80 of 161 SLO TBID Annual Report 2021-22 35Page 81 of 161 Page 82 of 161 R _____ RESOLUTION NO. ______ (2022 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING ITS INTENTION TO CONTINUE THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEVY THE ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR THE PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR 2022-23 WHEREAS, the Parking and Business Improvement Law of 1989, secti ons 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism; and WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism Business Improvement District had requested the City of San Luis Obispo establish such a self-assessment improvement district in 2008; and WHEREAS, the San Luis Obispo Tourism Business Improvement District was established in July 2008 and incorporated into the Municipal Code under Chapter 12.42; and WHEREAS, the assessment went into effect on October 1, 2008; and WHEREAS, the City Council appointed an advisory board to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS, the City Municipal Code and the Parking and Business Improvement Law require the advisory board to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS, an annual report was prepared pursuant to Section 36533 of the Streets and Highway Code; and WHEREAS, notices regarding the approval of the annual report were sent on October 6, 2022 to all assessed properties. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: a) That the Tourism Business Improvement District Annual Report for fiscal year 2021-22 as filed by the advisory body is hereby approved. Page 83 of 161 Resolution No. _____ (2022 Series) Page 2 R ______ b) The San Luis Obispo City Council proposes to continue the established Tourism Business Improvement District in the City of San Luis Obispo in accordance with City Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections 36500 et seq. (Parking and Business Improvement Law of 1989). c) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer a marketing program that increases overnight hotel stays pursuant to the set goals. d) The assessment will be levied and allocated by the City of San Luis Obispo. e) The assessment is proposed to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any str ucture, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. f) The assessment shall be based on two percent (2%) of gross room rent. g) New hotels shall not be exempt from immediate assessment. h) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36535 of the Streets and Highways Code, is to allow for comments on the Dist rict and proposed assessment, and is hereby set for 6 P.M., Tuesday, November 1, 2022, before the City Council of San Luis Obispo. i) At the public hearing, the testimony of all interested persons for or against the continuation of the District, the boundaries of the District, or the furnishing of specified types of improvements or activities will be heard. j) Any protest against the continuation of the City of San Luis Obispo Tourism Business Improvement District and the levying of the assessment, or any aspect thereof, may be made in writing. A protest may be withdrawn at any time before the conclusion of the public hearing. Any written protest shall contain a description of the business in which the person signing the protest is not shown on the official records of the City of San Luis Obispo as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the authorized representative of the business. Any protest as to the regularity or evidence of the proceedings shall be in writing and clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street, San Luis Obispo, CA 93401. Page 84 of 161 Resolution No. _____ (2022 Series) Page 3 R ______ k) If, at the conclusion of the public hearing, there are of record, written protests by the owners of businesses within the proposed San Luis Obispo Tourism Business Improvement District that will pay fifty percent (50%) or more of the total assessments of the entire San Luis Obispo Tourism Business Improvement District, no further proceedings to continue the San Luis Obispo Tourism Business Improvement District shall occur. New proceedings to form the San Luis Obispo Tourism Business Improvement District shall not be undertaken again for a period of at least one (1) year from the date of the finding. If the majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the San Luis Obispo Tourism Improvement District. Page 85 of 161 Resolution No. _____ (2022 Series) Page 4 R ______ BE IT FURTHER THEREFORE RESOLVED, the City Clerk is instructed to provide notice as required by the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36534, subpart (a)(7) of the Streets and Highways Code, to wit: the City Clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City no less than seven days before the public hearing. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 20 22. ___________________________ Mayor Erica A. Stewart ATTEST: ____________________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ____________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 86 of 161 DRAFT Minutes – Tourism Business Improvement District Board Special Meeting of 09/14/2022 Pg. 1 Minutes TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD Wednesday, September 14, 2022 Regular Meeting of the Tourism Business Improvement District Board CALL TO ORDER The special meeting of the San Luis Obispo Tourism Business Improvement District Board was called to order on September 14, 2022, at 10:00 a.m. by Chair Clint Pearce. ROLL CALL Present: Chair Clint Pearce, Vice Chair LeBren Harris, Members Lydia Bates, Megan Taylor, Pashant Patel, Pragna Patel-Mueller, and Lori Keller Absent: None. Staff: Tourism Manager Molly Cano PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA None --End of Public Comment-- APPOINTMENT - OATH OF OFFICE City Clerk Teresa Purrington administered the Oath of Office to Lydia Bates and Prashant Patel. CONSENT ITEMS C.1 Minutes of TBID Meeting on August 10, 2022 and Special Meeting on August 24, 2022 C.2 Smith Travel Report C.3 Transient Occupancy Tax (TOT) Report C.4 Chamber Public Relations Monthly Report C.5 Chamber Guest Services Monthly Report C.6 Noble Studios & DCI Marketing Monthly Report C.7 Badger Branding Organic Social Report ACTION: MOTION BY MEMBER KELLER AND SECONDED BY VICE CHAIR LEBREN HARRIS CARRIED 7-0 to approve the Consent Agenda Items C1 through C7. Page 87 of 161 DRAFT Minutes – Tourism Business Improvement District Board Meeting of 9/14/2022 Pg. 2 BUSINESS ITEMS 1. FY 21-22 TBID ANNUAL REPORT Tourism Manager Cano reviewed the draft FY 2021-22 TBID annual report. Public Comment None. --End of Public Comment-- ACTION: MOTION BY MEMBER KELLER AND SECONDED BY MEMBER BATES CARRIED 6:1:0 (No Vote from Member Patel-Mueller) to approve the 2021-22 annual report for submission to Council and recommend the continuation of the TBID for fiscal year 2022 - 23, with the following changes to the annual report: • A note about the new hotels had that opened. 2. FY 21-22 PAID MEDIA BUDGET CARRYOVER CONSIDERATION Hayley Corbett, Noble Studios reviewed remaining paid media funds from FY 2021-22. Public Comment None. --End of Public Comment-- ACTION: MOTION BY MEMBER PATEL-MUELLER AND SECONDED BY MEMBER KELLER CARRIED 7-0 to recommendation to approve to carryover $5,595.37 for FY22-23 paid media, leveraging the additional $500 to cover rate increases for 3rd Party Technology fees this fiscal year. 3. CCTC DIGITAL CO-OP CAMPAIGN CONSIDERATION Tourism Manager Cano presented the co-op packages for the Central Coast digital advertising campaign in partnership with CCTC and within the available TBID co-op budget for the Board’s review and approval. Public Comment None. --End of Public Comment-- ACTION: MOTION BY MEMBER KELLER AND SECONDED BY MEMBER BATES CARRIED 7-0 to approve funding in the amount of $9,000 for the Central Coast digital advertising campaign. 4. BOARD LIAISON PROGRAM AND ASSIGNMENTS The Board discussed and assigned property liaisons for FY23. Public Comment None. Page 88 of 161 DRAFT Minutes – Tourism Business Improvement District Board Meeting of 9/14/2022 Pg. 3 --End of Public Comment-- ACTION: By consensus the Board provided consensus comments regarding hosting an event to provide information to the other properties about what the TBID is doing. Members Patel, Bates and Keller volunteered to serve on a planning committee. The Board also asked Tourism Manager Cano to assign remaining liaison properties. TBID LIAISON REPORTS AND COMMUNICATION 1. HOTELIER UPDATE – None. 2. PCC UPDATE – Meeting Minutes: None. 3. VISIT SLO CAL UPDATE – Chair Pearce and Tourism Manager Cano provided an update on projects. 4. TOURISM PROGRAM UPDATE – Tourism Manager Cano provided an update on the tourism program. ADJOURNMENT The meeting was adjourned at 11:42 a.m. The next Tourism Business Improvement District Board Special meeting is scheduled for September 28, 2022 at 10:00 a.m. held at City Hall. APPROVED BY THE TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD: XX/XX/XX Page 89 of 161 Page 90 of 161 Confidential. Intellectual property of Visit San Luis Obispo.1 City of San Luis Obispo Tourism Business Improvement District FY 2021-21 Annual Report As recommended by the Tourism Business Improvement District (TBID) Board, 1)Receive and approve the TBID Board’s annual report for FY 2021-22; and 2)Adopt a Resolution of Intention to levy and collect assessments within the TBID area in fiscal year 2022-23 at the same rate as in fiscal year 2021-22 (2%). Recommendation 3Confidential. Intellectual property of Visit San Luis Obispo. ●Established in 2008 ●7-member Advisory Board ●2% assessment on lodging properties “The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination.” Background on the SLO TBID FY 21-22 SLO TBID Board SLO TBID Contractor Team FY 2021-22 By the Numbers Overall Year By the Numbers Measurement FY 21-22 Result % Change from FY20-21 TOT Revenue $10,623,916.63 54% ↑ TBID Assessment Revenue $2,214,783.33 54% ↑ Occupancy (OCC)67%15.2% ↑ Average Daily Rate (ADR) $195.36 24.1% ↑ Revenue Per Available Room (RevPAR) $132.57 41.4% ↑ Transient Occupancy Tax (TOT) $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 TOT Figures by Month $0.00 $200,000.00 $400,000.00 $600,000.00 $800,000.00 $1,000,000.00 $1,200,000.00 $1,400,000.00 2021-22 $10,031,635.32 , 94% $615,972.30 , 6% Hotel Homestay TOT Distribution for FY 2021-22 TBID Summarized Financials Source FY 21-22 FY 21-22 TOT Revenue Assumption*$7,213,000 FY 21-22 TBID Revenue Assumption $1,442,600 Fund Balance Transfer Total $285,190 Fund Reserve $100,000 FY 21-22 TBID Program Budget $1,727,790 FY 21-22 Total Allocated TBID Expenditures** $1,727,790 * This figure was not adjusted within the TBID operating program budget following the Adopted Supplement Budget. ** This figure represents the total allocated expenditures. The difference will be available for carryover to the 2022-23 program budget. FY 2021-22 Work Program Highlights ‘19-‘24 SLO TBID Strategic Plan Research •SLO CAL EDI Research Co-Op (Summer 2021) •Brand Health & Equity Research (Fall 2021) •Brand Tracker & Local Sentiment (Winter 21 & Spring 22) Visit San Luis Obispo •The formal, public-facing name for the brand and organization is Visit San Luis Obispo. •We are structured as a TBID (Tourism Business Improvement District), which is also how we are legally named, but that is different than our public facing brand. •While some destinations drop the “Visit” when marketing, for us, this will clearly signify we’re a tourism entity inviting people to come pay a visit and Live the SLO Life. Position Homebase Away From Home Promise A Chance To Live The SLO Life Purpose Hearts In Beds Visit SLO Brand Platform Visit SLO Marketing Activities Confidential. Intellectual property of Visit San Luis Obispo.20 Looking Ahead to FY 22-23 Diversity, Equity and Inclusion approach in all TBID programs Expanding the Sustainable SLO program Establishing the Visit San Luis Obispo brand Redesign of VisitSLO.com As recommended by the Tourism Business Improvement District (TBID) Board, 1)Receive and approve the TBID Board’s annual report for FY 2021-22; and 2)Adopt a Resolution of Intention to levy and collect assessments within the TBID area in fiscal year 2022 -23 at the same rate as in fiscal year 2021-22 (2%). Public Hearing Scheduled for November 1, 2022. Recommendation Confidential. Intellectual property of Visit San Luis Obispo.22 Thank You 1010 Marsh St., San Luis Obispo, CA 93401 (805) 5464208 . FAX (805) 546-8641 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CV72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to -wit: 0LA-0b e.XC- 6 in the year 2022. I certify (or declare) under the the penalty of perjury that the foregoing is true and correct. Dated at San Luis Obispo, California, this day c_of.Q[-kn)Q4-r 2022. Michael Gould, New Times Legals Mm,& enmW.WMG Mmi,/NTMGa /B=Na%/Po N—IP dr Proof of Publication of 0 SAN LUIS OBISPO CITY COUNCIL NOTICE OF PUBLIC HEARING The San Luis Obispo City Council invites all interested persons to attend a public hearing on Tuesday. October 18, 2022 at 5:30 p.m. held in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. Please note that Zoom Paticipatim will not be Supported. as this will be an in -person meeting. Meetings can be viewed remotely on Government Access Channel 20 or streamed live from the City's YouTube channel at htto,// voutubesla 'tv. Public comment prior to the start of the meeting, may be submitted in writing via U.S. Mail delivered to the City Clerk's office at 990 Pat. Street, San Luis Obispo, CA 93W I or by email to ema'Icounc'I slocity.org. PUBLIC HEARING ITEM: The City Council will receive and Ole the San Luis Obispo Tourism Business Improvement District ITBIDI 2021-22 Annual Report, as recommended by the SLO TRIO Board, and consider the adoption of a resolution of intent to levy and collect TRIG assessments in fiscal year 2022-23 at the same rate (2%) as 2021-22. For mare information, you are invited to contact Molly Cana of the Cltys Administration Department at (8051761-7165ormcano®slocityarg The City Council may also discuss other hearings or business items before of after the items listed above. If you challenge the proposed project in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to, the public hearing. Council Agenda Reports forthis meeting will be available for review one week in advance of the meeting date on the City's webshe, under the Public Meeting Agendas web page: htt % �KSjochy o/ . / and-c1ty-cou I/ da -nit utes. Please call the City Clerk's Office at (805) 781.7100 for more information. The City Council meeting will be televised live an Charter Cable Channel 20 and live Streaming on the City, YouTube channel htta'// o t h I 'N. October 6, 2022