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HomeMy WebLinkAboutItem 8a. Annual Public Hearing of the Tourism Business Improvement District (TBID) Item 8a Department: Administration Cost Center: 208-1006 For Agenda of: 11/7/2023 Placement: Public Hearing Estimated Time: 20 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Molly Cano, Tourism Manager; Jacqui Clark-Charlesworth, Tourism Analyst SUBJECT: ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION 1. Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the San Luis Obispo Tourism Business Improvement District and determine whether a legally sufficient protest is made; and 2. If no legally sufficient protest is made, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring the basis for and the levy of the assessment for the San Luis Obispo Tourism Business Improvement District and affirming the establishment of the District.” POLICY CONTEXT As referenced in the City’s Municipal Code, Section 12.42.060 and Sections 36524 and 36525 of the California Streets and Highways Code, after approval of the annual report the City Council shall follow the hearing process. At the public hearing, the City Council shall hear and consider all protests. If written protests are received from hotel businesses in the district paying 50% or more of the annual assessment, no further proceedings to continue the levy of assessments shall take place. The protests shall be weighted based upon the annual assessment for the prior year by each hotel b usiness. (Ord. 1517 § 3 (part), 2008.) DISCUSSION Background On October 17, 2023, Council reviewed and approved the San Luis Obispo Tourism Business Improvement District (TBID) Board’s annual report pursuant to Municipal Code Section 12.42.060 (Attachment A). The City’s Municipal Code further requires that, after the approval of the annual report, Council may adopt a resolution of intention to levy an annual assessment for that fiscal year and schedule a public hearing to receive any written or oral protests against the district. Resolution No. 11455 (2023 Series), setting such a hearing, was adopted on October 17, 2023 (Attachment B). Page 267 of 281 Item 8a Following the Council action on October 17, 2023, all lodging businesses within the district including hotels, motels, bed and breakfast properties and the City permitted homestays, were noticed for the public hearing scheduled for November 7, 2023. Those notices were sent on October 26, 2023 to all assessed properties. Previous Council or Advisory Body Action As set forth in Sections 36524 and 36525 of the California Streets and Highways Code and San Luis Obispo Municipal Code Section 12.42.060, the Council has the ability to continue the San Luis Obispo TBID at the public hearing, unless oral or written protests are received from City hoteliers that will pay 50% or more of the proposed assessments. Under Municipal Code Section 12.42.060, protests are weighted based upon the annual assessment for the prior year by each hotel. Staff will have assessment information available at the meeting, but for confidentiality reasons, this information is not made public before or at the meeting. If a sufficient negative protest occurs, no further proceedings to continue the levy of assessments for that fiscal year shall take place. At the conclusion of the public hearing, if insufficient protest is received, Council may then adopt a resolution affirming the continuation of the San Luis Obispo TBID, setting forth the basis for the assessment, and levying the assessment upon hotels in the district for fiscal year 2023-24 (Attachment C). Public Engagement This item is on the agenda for the November 7, 2023, Council meeting and will follow all required postings and notifications. Legal notices regarding the Council’s review and consideration of the TBID Annual Public Hearing were published in the New Times and mailed to TBID properties on October 26, 2023. 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. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) 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: 2023-24 Funding Identified: Yes Page 268 of 281 Item 8a Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ $ State Federal Fees Other: TBID Fund $2,140,800 $2,140,800 Total $2,140,800 $ $ $ 2,140,800* *For 2023-24, the TBID projected revenue is $2,140,800 and is budgeted for program costs including staffing, which is intended to be used for tourism marketing and promotion. All costs associated with TBID program expenditures are paid with TB ID revenues. The City retains 2% of TBID revenues to offset administrative overhead in the General Fund which amounts to $42,816 in FY 2023-24 based on current revenue assumptions. ALTERNATIVES 1. Delay the public hearing. Staff does not recommend this alternative because all legally required noticing has been completed. In addition to the legal noticing, staff provided additional constituent outreach. In the event that the City receives close to 50% protest, the Council could delay the public hearing in order verify protest submissions. 2. Deny the resolution. Staff does not recommend this alternative if the requirements to deny the resolution under the legal protest specifications were not met. ATTACHMENTS A – Action Update for the October 17, 2023 Council Meeting B – Resolution No. 11455 (2023 Series) C – Draft Resolution to Continue the TBID in FY 23-24 Page 269 of 281 Page 270 of 281 1 Council Action Update October 17, 2023, 5:30 p.m. Council Chambers, 990 Palm Street, San Luis Obispo Council Members Present: Council Member Emily Francis, Council Member Andy Pease, Council Member Michelle Shoresman, Mayor Erica A. Stewart Council Members Absent: Vice Mayor Jan Marx City Staff Present: Derek Johnson, City Manager, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk _____________________________________________________________________ 1. CLOSED SESSION: STARTS AT 4:30 PM 1.a CALL TO ORDER Mayor Erica A. Stewart called the Closed Session Meeting of the San Luis Obispo City Council to order at 4:35 p.m. in the Council Hearing Room with Vice Mayor Marx absent. 1.b PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY 1.c CONFERENCE WITH REAL PROPERTY NEGOTIATORS 1.d CONFERENCE WITH REAL PROPERTY NEGOTIATORS 1.e ADJOURNMENT 2. CALL TO ORDER A Regular Meeting of the San Luis Obispo City Council was called to order on October 17, 2023 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart. CITY ATTORNEY REPORT ON CLOSED SESSION City Attorney Christine Dietrick indicated that the Council met on two matters of real property negotiation as listed above and provided direction to proceed with negotiations and on price and terms of payment. No further direction was provided. Page 271 of 281 2 6. CONSENT AGENDA Motion By Council Member Shoresman Second By Mayor Stewart To approve Consent Calendar Items 6a to 6g. Ayes (4): Council Member Francis, Council Member Pease, Council Member Shoresman, and Mayor Stewart Absent (1): Vice Mayor Marx CARRIED (4 to 0) 6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Waive reading of all resolutions and ordinances as appropriate. 6.b MINUTES REVIEW - SEPTEMBER 26, 2023 AND OCTOBER 3, 2023 COUNCIL MINUTES Approve the following minutes of the City Council: • September 26, 2023 - Special Closed Session • October 3, 2023 - Regular Meeting 6.c AUTHORIZATION TO ADVERTISE MITCHELL PARK REVITALIZATION PROJECT, SPECIFICATION NO. 2000188 1. Approve the project plans and specifications for Mitchell Park Revitalization Project, Specification Number 2000188; and 2. Authorize staff to advertise for bids; and 3. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City San Luis Obispo, California, authorizing use of Parkland - In-Lieu (Quimby) Funds to support Mitchell Park Revitalization Project, Specification No. 2000188” and appropriate an additional $50,000 from the Quimby Fund to the project account; and 4. Authorize the City Manager to award the Construction Contract pursuant to Section 3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is within the publicly disclosed funding amount of $211,000. Page 272 of 281 3 6.d AUTHORIZATION TO ADVERTISE WASH WATER TANK NO. 1 REHABILITATION, SPECIFICATION NO. 2000034-03 1. Approve the project plans and specifications for the Wash Water Tank No. 1 Rehabilitation, Specification Number 2000034 -03; and 2. Authorize staff to advertise for bids; and 3. Authorize the City Manager to award the Construction Contract for the bid total if the lowest responsive bid is within the Engineer’s Estimate of $622,973; and 4. Appropriate $215,000 from Water Fund Unreserved Working Capital; and 5. Authorize the City Engineer to approve Contract Change Orders up to the available project budget; and 6. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of the Water Fund Unreserved Working Capital Fund to support the Wash Water Tank No. 1 Rehabilitation, Specification Number 2000034 -03.” 6.e AUTHORIZE RIGHT-OF-WAY ACQUISITION OF 50 HIGUERA STREET FROM CALTRANS FOR THE HIGUERA STREET WIDENING (BRIDGE TO ELKS) PROJECT, SPECIFICATION NO. 2091294 Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, affirming the transfer of Easements from the State of California Department of Transportation to support construction of the Higuera Street Widening (Bridge to Elks) Project, Specification No. 2091294.” 6.f AUTHORIZATION TO ADVERTISE ON-CALL SERVICES REQUEST FOR QUALIFICATIONS – VARIOUS PROFESSIONAL SERVICES 1. Authorize the advertisement of Requests for Qualifications (RFQ) to establish on-call consultant agreements for the following professional services, in a form approved by the City Engineer and City Attorney: Architectural Design, Civil Engineering Design, Construction Management, Environmental Services, Land Surveying, Landscape Architecture, Mechanical Engineering, Right of Way Acquisition, Soils and Materials Testing, Structural Engineering Design, Transportation Engineering Services, Travel Demand Modeling, Civil Design - Water + Wastewater Specialty (New Service Category), Electrical Engineering (New Service Category), Public Capital Project Management (New Service Category), Urban Design (New Service Category), Energy Services (New Service Category) Page 273 of 281 4 2. Authorize the City Manager to execute on-call agreements with selected consulting firms; and 3. Authorize the City Engineer to amend or extend on-call agreements for services in accordance with its terms and within the available annual budget; and 4. Authorize the City Engineer to issue an additional 1-year contract extension for the following professional services set to expire in December 2023, and which have already received a 1-year extension as allowed by contract: Landscape Architecture, Construction Management, Environmental Services, Soils and Materials Testing 6.g ADVISORY BODY APPOINTMENT – TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD Confirm the appointment of Nipool Patel to the Tourism Business Improvement District Board (TBID). 7. PUBLIC HEARING AND BUSINESS ITEMS 7.a ANNUAL REPORT OF THE TOURISM BUSINESS IMPROVEMENT DISTRICT Motion By Council Member Francis Second By Council Member Shoresman 1. As recommended by the Tourism Business Improvement District (TBID) Board, receive and approve the TBID Board’s annual report for FY 2022-23; and 2. Adopt a Draft 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 2023-24.” Ayes (4): Council Member Francis, Council Member Pease, Council Member Shoresman, and Mayor Stewart Absent (1): Vice Mayor Marx CARRIED (4 to 0) Page 274 of 281 R 11455 RESOLUTION NO. 11455 (2023 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 2023-24 WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is the 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 5, 2023, 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 2022-23 as filed by the advisory body is hereby approved. DocuSign Envelope ID: 05AC2697-76B7-4D23-8B20-4FB160674E96 Page 275 of 281 Resolution No. 11455 (2023 Series) Page 2 R 11455 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 structure, 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 District and proposed assessment, and is hereby set for 5:30 P.M., Tuesday, November 7, 2023, 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. DocuSign Envelope ID: 05AC2697-76B7-4D23-8B20-4FB160674E96 Page 276 of 281 Resolution No. 11455 (2023 Series) Page 3 R 11455 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. DocuSign Envelope ID: 05AC2697-76B7-4D23-8B20-4FB160674E96 Page 277 of 281 Resolution No. 11455 (2023 Series) Page 4 R 11455 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 circu lation in the City no less than seven days before the public hearing. Upon motion of Council Member Francis, seconded by Council Member Shoresman, and on the following roll call vote: AYES: Council Member Francis, Pease, Shoresman, and Mayor Stewart NOES: None ABSENT: Vice Mayor Marx The foregoing resolution was adopted this 17th day of October 2023. 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 DocuSign Envelope ID: 05AC2697-76B7-4D23-8B20-4FB160674E96 10/19/2023 | 7:46 AM PDT Page 278 of 281 R _______ RESOLUTION NO. _____ (2023 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING THE BASIS FOR AND THE LEVY OF THE ASSESSMENT FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT AND AFFIRMING THE ESTABLISHMENT OF THE DISTRICT WHEREAS, the Parking and Business Improvement Law of 1989, section s 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 the San Luis Obispo Tourism Business Improvement District Law was incorporated into the Municipal Code under Chapter 12.42; and WHEREAS, the City Council appointed an advisory board to carry out the functions specified in Street and Highways Code Section 36530, and to provide oversight, guidance, and recommendations regarding the use of th e assessment funds; and WHEREAS the San Luis Obispo Tourism Business Improvement District Law and the Parking and Business Improvement Law of 1989 requires the advisory body to prepare and submit an annual report stating proposed changes, improvements an d activities for the fiscal year; and WHEREAS, such report was filed and approved by the City Council on October 17, 2023. WHEREAS, on October 17, 2023 the City Council adopted Resolution No. 11455 (2023 Series) declaring its intention to continue the San Luis Obispo Tourism Business Improvement District in 2023-24; and WHEREAS, notices regarding the approval of the public hearing were sent on October 26, 2023 to all assessed properties; and WHEREAS, the City Council held a duly noticed Public Hearing on November 7, 2023 to allow for protests, as contemplated by Streets and Highway Code Section 36524; and WHEREAS, sufficient written or oral protest was not received from hotel businesses in the district which pay fifty percent or more of the assessment; Page 279 of 281 Resolution No. ______ (2023 Series) Page 2 R ______ NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: a) The establishment of Tourism Business Improvement District in the City of San Luis Obispo in accordance with the San Luis Obispo Tourism Business Improvement District Law, San Luis Obispo Municipal Code Chapter 12.42, and the California Streets and Highways Code, section 36500 et seq. (Parking and Business Improvement Law of 1989) is affirmed. b) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer marketing programs that increase overnight lodging. c) The assessment shall be levied and allocated by the City of San Luis Obispo. d) The assessment shall to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, 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, publ ic or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. Page 280 of 281 Resolution No. ______ (2023 Series) Page 3 R ______ e) The assessment shall be based on two percent (2%) of gross room rent. f) New hotels shall not be exempt from immediate assessment. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________, 2023. __________________________ 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 281 of 281 City of San Luis Obispo Tourism Business Improvement District Annual Public Hearing As recommended by the Tourism Business Improvement District (TBID) Board, 1)Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the San Luis Obispo Tourism Business Improvement District and determine whether a legally sufficient protest is made; and 2)If no legally sufficient protest is made, adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring the Basis for and the Levy of the Assessment for the San Luis Obispo Tourism Business Improvement District and Affirming the Establishment of the District.” Recommendation 3 •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 Confidential. Intellectual property of Visit San Luis Obispo.4 •Invested in a full redesign of VisitSLO.com, the cornerstone of all marketing efforts •Continued Keys for Trees, with 1% of TBID revenue directed to planting trees in SLO •Promoted off-season and mid-week travel with The MidWeekend campaign •Got people talking about SLO FY 22-23 TBID Accomplishments Confidential. Intellectual property of Visit San Luis Obispo.5 1. Conduct a public hearing to receive testimony regarding the intention to continue the San Luis Obispo Tourism Business Improvement District. 2. Determine whether a legally sufficient protest is made. 3. If no legally sufficient protest is made, adopt a resolution affirming the continuation of the San Luis Obispo Tourism Business Improvement District, setting forth the basis for the assessment, and levying the assessment upon hotels in the district for fiscal year 2023-24. Public Hearing Confidential. Intellectual property of Visit San Luis Obispo.6 Tourism Business Improvement District Annual Public Hearing As recommended by the Tourism Business Improvement District (TBID) Board, 1)Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the San Luis Obispo Tourism Business Improvement District and determine whether a legally sufficient protest is made; and 2)If no legally sufficient protest is made, adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring the Basis for and the Levy of the Assessment for the San Luis Obispo Tourism Business Improvement District and Affirming the Establishment of the District.” Recommendation Thank You