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Home My WebLink About10-16-2012 ph1 tbid annual protest hearingA counci lagcnOa RepoRt• Meeting DUe October 16, 201 2 hem Number PH I C I T Y O F S A N L U I S O B I S P O FROM : Michael Codron, Assistant City Manage r Prepared By : Brigitte Elke, Principal Administrative Analys t SUBJECT : ANNUAL PUBLIC HEARING FOR THE TOURISM BUSINES S IMPROVEMENT DISTRIC T RECOMMENDATIO N 1.Conduct a public hearing to receive testimony regarding the City Council's intention to continu e the citywide Tourism Business Improvement District . 2.Determine whether a legally sufficient protest is made . If no legally sufficient protest is made, adopt a resolution affirming the continuation of the Sa n 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 2012-13 . DISCUSSION Backgroun d On October 2, 2012, the City Council reviewed and approved the Tourism Business Improvemen t District (TBID) board's annual report pursuant to Municipal Code Section 12 .42 .060 (Attachment 1 — Council Agenda Report ) The Municipal Code further requires that, after the approval of the annual report, Council shal l 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 . 1040 0 (2012 Series) setting such a hearing was adopted on October 2, 2012 (Attachment 2). Council Action : Public Hearing and Resolutio n As set forth in Sections 36524 and 36525 of the California Streets and Highways Code and San Lui s Obispo Municipal Code Section 12 .42 .060, the Council has the ability to continue the citywid e TBID at the public hearing, unless oral or written protests are received from City hoteliers that wil l pay 50% or more of the proposed assessments . Under Municipal Code Section 12 .42 .060, protest s 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 privacy reasons, this information is no t made public before or at the meeting . hi the event that a negative protest occurs, no furthe r proceedings to continue the levy of assessments for that fiscal year shall take place . At the conclusion of the public hearing, if no or insufficient protest is received, Council may the n • adopt a resolution affirming the continuation of the San Luis Obispo Tourism Busines s Improvement District, setting forth the basis for the assessment, and levying the assessment upo n hotels in the district for fiscal year 2012-13 . Such a resolution is provided as Attachment 3 . • PHI-1 Council Agenda Report—TBID 2012 Annual Public Hearin g Page 2 FISCAL IMPAC T According to the City's Financial Plan Supplement, the TBID is estimated to collect $1,055,000 fo r tourism marketing and promotion in fiscal year 2012-13 . ATTACHMENT S 1.Council Agenda Report — October 2,201 2 2.Resolution of Intention No . 10400 (2012 Series ) 3.Resolution confirming the TBID and levying the assessment • • • PH1-2 Attachment 1councilj agenba RepoR t•C I T Y O F S A N L U I S O B I S P O Meein¢Date 10-2-1 2 Ium Numbe.B 1 FROM : Michael Codron, Assistant City Administrative Office r Prepared By : Brigitte Elke, Principal Administrative Analys t SUBJECT : ANNUAL REPORT FOR THE TOURISM BUSINESS IMPROVEMEN T DISTRIC T RECOMMENDATIO N 1.Receive and approve the Tourism Business Improvement District (TBID) Board's annua l report . 2.Adopt a resolution of intention to levy and collect assessments within the TBID area i n fiscal year 2012-13 at the same rate as in fiscal year 2011-12 . DISCUSSIO N Backgroun d In June 2008 Council adopted Ordinance 1517 establishing a tourism business improvement distric t as requested by the local lodging industry . The district was formed under the State's Parking an d • Business Improvement Law of 1989, sections 36500 et seq . of the Streets and Highways Code an d incorporated into the City's Municipal Code under Chapter 12 .42 . According to Municipal Code Section 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 a n annual report (Attachment 1) that outlines the past year's efforts and how the funding was used an d to what effect. hi Section 35634, the law further requires that after the approval of the annual report, Council shal l adopt a resolution of intention (Attachment 2) to levy an annual assessment for that fiscal year . Th e resolution also allows for a public hearing in order to receive any written or oral protests against th e continuation of the district . Annual Repor t On September 12, 2012, the TBID Board met in its regular monthly meeting to, amongst othe r agenda items, finalized the annual report (Board Minutes - Attachment 3). The report reiterates th e use of the TBID funds within the defined marketing platform that guides the strategy used to delive r on the TBID's objective and goals . The report content includes : 1.TBID Background and Advisory Bod y 2.The TBID's objective and goal s 3.The Marketing Platform now in us e • 4 . 2011-12 Summary of Activitie s 5.2011-12 Campaign Metric s 6.2011-12 Financial Statement PH1-3 Council Agenda Report — 2011-12 TBID Annual Report Page 2 Next Step s Assuming the City Council approves the annual report and adopts the resolution of intention,a public hearing will be scheduled for October 16, 2012 . The public hearing will allow hoteliers t o submit comments, voice concerns, and protest the assessment . As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the Counci l has the ability to continue the proposed citywide TBID at this public hearing, unless oral or writte n 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 of San Luis Obispo for a t least one year . FISCAL IMPAC T According to the City's 2012-13 Financial Plan Supplement, the TBID assessment is estimated hav e collected $1,025,000 for tourism -Marketing in 2011-12 and is awaiting final audit . In 2012-13, th e TBID is expected to collect $1,055,000 . ATTACHMENT S 1.Annual Repor t 2.Resolution of Intentio n 3.TBID Board Draft Minutes from September 12, 2012 • • • PH1-4 • • • Attachment 2 RESOLUTION NO . 10400 (2012 Series ) RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING IT S INTENTION TO CONTINUE THE SAN LUIS OBISPO TOURISM BUSINES S IMPROVEMENT DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEV Y THE ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR TH E PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR 2012-1 3 WHEREAS the Parking and Business Improvement Law of 1989, sections 3650 0 et seq .of the Streets and Highways Code, authorizes cities to establish busines s improvement districts for several purposes, one of which is promotion of tourism ; and WHEREAS the lodging businesses within the proposed City of San Luis Obisp o Tourism Business Improvement District had requested the City of San Luis Obisp o establish such a self-assessment improvement district in 2008 ; an d WHEREAS the San Luis Obispo Tourism Business Improvement District wa s 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 ; an d WHEREAS the City Municipal Code and the Parking and Business Improvemen t Law require the advisory board to prepare and submit an annual report stating propose d changes, improvements and activities for the fiscal year ; and WHEREAS this report was filed and approved by the City Council on October 2 , 2012 . NOW, THEREFORE, BE IT RESOLVED by the City Council of the City o f San Luis Obispo as follows : a)The San Luis Obispo City Council proposes to continue the establishe d Tourism Business Improvement District in the City of San Luis Obispo i n accordance with City Municipal Code Chapter 12 .42 and the California Street s and Highways Code, sections 36500 et seq .(Parking and Busines s Improvement Law of 1989). b)The assessment levied by the Tourism Business Improvement District shall b e used to promote lodging at the hotels within the district and administer a PH1-5 Attachment 2 marketing program that increases overnight hotel stays pursuant to the se t goals . c)The assessment will be levied and allocated by the City of San Luis Obispo . d)The assessment is proposed to be levied on all "hotels", as that term is define d in San Luis Obispo Municipal Code section 3 .04 .020, to wit : any structure, o r any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, an d includes any hotel, inn, tourist home or house, motel, studio hotel, bachelo r hotel, lodging house, rooming house, apartment house, dormitory, public o r private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereo f The assessment shall be based on two percent (2%) of gross room rent . New hotels shall not be exempt from immediate assessment . 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 th e Streets and Highways Code, is to allow for comments on the District an d proposed assessment, and is hereby set for 6 P .M ., Tuesday, October 16, 2012 , before the City Council of San Luis Obispo at the City Council Chambers at 990 Palm Street, San Luis Obispo, California . h)At the public hearing, the testimony of all interested persons for or against th e continuation of the District, the boundaries of the District, or the furnishing o f specified types of improvements or activities will be heard . i)Any protest against the continuation of the City of San Luis Obispo Touris m Business Improvement District and the levying of the assessment, or any aspec t thereof, may be made in writing . A protest may be withdrawn at any tim e 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 th e business, then the protest shall contain or be accompanied by written evidenc e 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 i n writing and clearly state the irregularity or defect to the City of San Lui s Obispo at 990 Palm Street, San Luis Obispo, CA 93401 . J) If, at the conclusion of the public hearing, there are of record, written protest s by the owners of businesses within the proposed San Luis Obispo Touris m Business Improvement District that will pay fifty percent (50%) or more of th e total assessments of the entire San Luis Obispo Tourism Business Improvemen t District, no further proceedings to continue the San Luis Obispo Touris m e) f) g) • • • PH1-6 • • • Attachment 2 Business Improvement District shall occur . New proceedings to form the Sa n Luis Obispo Tourism Business Improvement District shall not be undertake n 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 Lui s Obispo Tourism Improvement District . BE IT THEREFORE RESOLVED,the City Clerk is instructed to provide notice a s required by the City Municipal Code Chapter 12 .42 and the Parking and Business Improvement Law of 1989, section 36534, subpart (7) of the Streets and Highways Code , to wit : the City Clerk shall give notice of the public hearing by causing the resolution o f intention to be published once in a newspaper of general circulation in the City no less tha n 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 , 2012 . Mayor Jan Marx ATTEST: Maeve Kennedy Grimes, City Cler k APPROVED AS TO FORM : Christine Dietrick, City Attorney PH1-7 Attachment 3 RESOLUTION NO . (2012 Series ) RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING THE BASIS FOR AN D THE LEVY OF THE ASSESSMENT FOR THE SAN LUIS OBISPO TOURISM BUSINES S IMPROVEMENT DISTRICT, AND AFFIRMING THE ESTABLISHMENT OF TH E DISTRICT . WHEREAS,the Parking and Business Improvement Law of 1989, sections 36500 et seq .o f the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism ; an d WHEREAS,the lodging businesses within the proposed City of San Luis Obispo Touris m 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 i n July 2008, and the San Luis Obispo Tourism Business Improvement District law was incorporated int o the Municipal Code under Chapter 12 .42 ; and WHEREAS,the City Council appointed an advisory board to carry out the functions specifie d in Street and Highways Code Section 36530, and to provide oversight, guidance, and recommendation s regarding the use of the assessment funds ; and WHEREAS the San Luis Obispo Tourism Business Improvement District law and the Parkin g and Business Improvement Law of 1989 requires the advisory body to prepare and submit an annua l report stating proposed changes, improvements and activities for the fiscal year ; and WHEREAS,such report was filed and approved by the City Council on October 2, 201 2 WHEREAS,on October 2, 2012 the City Council adopted Resolution No . 10400 (2012 Series ) declaring its intention to continue the San Luis Obispo Tourism Business Improvement District i n 2012-13 ; and WHEREAS,the City Council held a duly noticed Public Hearing on October 16, 2012 to allo w 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 th e district which pay fifty percent or more of the assessment ; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Lui s Obispo as follows : a) The establishment of Tourism Business Improvement District in the City of San Lui s 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 PH1-8 • • Attachment 3 Highways Code, section 36500 et seq .(Parking and Business Improvement Law of 1989) i s • affirmed . b)The assessment levied by the Tourism Business Improvement District shall be used t o promote lodging at the hotels within the district and administer marketing programs tha t 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 Obisp o 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, lodgin g 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 o r private club, mobile home or house trailer at a fixed location, or other similar structure o r portion thereo f e)The assessment shall be based on two percent (2%) of gross room rent .- H 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 , 201 2 Mayor Jan Mar x ATTEST : Maeve Kennedy Grimes, City Cler k APPROVED AS TO FORM : J . Christine Dietric k Christine Dietrick, City Attorney PH1-9 • Page intentionally lef t blank . •