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HomeMy WebLinkAboutItem 7a. 2023-24 Annual Report of the Tourism Business Improvement District Item 7a Department: Administration Cost Center: 208-1006 For Agenda of: 10/1/2024 Placement: Business Estimated Time: 30 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Jacqui Clark-Charlesworth, Tourism & Community Promotions Manager; Molly Cano, Economic Development & Tourism Manager SUBJECT: 2023-24 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 2023-24; 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 2024-25.” 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 district 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 appointed TBID Advisory Board is to submit an annual report (Attachment A) that outlines the pas t year’s efforts and how the funding was used and to what effect. Page 207 of 369 Item 7a Section 36534 further requires that after the approval of the annual repor t, 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 to receive any written or oral protests against the continuation of the TBID as required by the applicable statute. Annual Report On September 4, 2024, the TBID Board met in a regular monthly meeting to finalize the 2023-24 annual report for recommendation to the Council . 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. 2023-24 Year by the Numbers 3. Strategic Plan Implementation and Program Approach 4. 2023-24 Summary of Activities 5. 2023-24 Financial Statement 6. Looking Ahead to 2024-25 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 October 15, 2024. 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 on October 15, 2024, 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 postcards were mailed to TBID properties on September 19, 2024. For convenience, the link to the agenda was also distributed to TBID constituents and stakeholders via email. Public noticing for the TBID Advisory Board meeting held on September 4, 2024, was performed through the posting of the agenda on the City’s website by 5:00 pm on August 30, 2024, with the agenda distributed to TBID constituents and stakeholders via email for convenience. Previous Council or Advisory Body Action On September 4, 2024, the TBID Board approved the 2023-24 annual report for submission to Council and recommended the continuation of the TBID for fiscal year 2024-25 (Attachment C). Page 208 of 369 Item 7a Public Engagement This item is on the agenda for the October 1, 2024 Council Meeting and will follow all required postings and notifications. The public has 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 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 Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ N/A $ $ $ State Federal Fees Other: Total $ $ $ $ Acceptance of the FY 2023-24 Annual Report does not result in any direct fiscal impacts to the City. The current unaudited year-end TBID Assessment Revenue for FY 2023-24 is $2,201,977, which is approximately $61,177 more than the budgeted amount, based on the calculation of 20% of the projected Transient Occupancy Tax (TOT) reflected on page 12 of the City’s FY 2024-25 Adopted Financial Plan Supplement. In FY 2024-25, the TBID projected revenue is $2,183,616 and is budgeted for program costs including staffing. Additionally, the City will retain approximately $43,672 of the assessment revenue - roughly 2% of FY 2024-25 TBID Assessment Revenue - to cover the City’s administrative costs associated with collecting and disbursing the assessment. ALTERNATIVES The Council may choose to not approve the report or adopt the resolution of intention. This action is not recommended as the advisory body has fully reviewed the report and recommended the approval to Council to move forward with the Public Hearing for the TBID. Council also has the option to request additional information before approval. Page 209 of 369 Item 7a ATTACHMENTS A – SLO TBID 2023-24 Annual Report B – Draft Resolution of Intention to continue the SLO TBID C – TBID Draft Minutes from September 4, 2024 Page 210 of 369 SLO TBID ANNUAL REPORT 2023-2024 Page 211 of 369 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Advisory Body . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Advisory Body Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 2022-23 Year By The Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Strategic Plan Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Constituent Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Diversity, Equity and Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Visit San Luis Obispo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Marketing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Brand & Campaign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 SEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Digital Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Email Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Print Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Promotions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Guest Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Strategic Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Industry Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 2022-23 Awards & Accolades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Looking Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 TOT Chart For 2022-23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 TOT Distribution For 2022-23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 TOT Month To Month 2022-23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 OCC Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 ADR Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 REVPAR Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Strategic Imperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 CONTENTS Page 212 of 369 SLO TBID Annual Report 2023-24 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 as defined in Section 12 .42 .030 of the Municipal Code states: “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) which 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 . 2023-24 Tourism Business Improvement District Board BACKGROUND ADVISORY BODY NAME PROPERTY STATUS TERM CONCLUDES Clint Pearce * **Madonna Inn Appointed May 2022 3/31/2026 Lori Keller Apple Farm Inn Appointed June 2022 3/31/2026 Prashant Patel Vagabond Appointed Sept . 2022 3/31/2025 Lydia Bates * **Hotel San Luis Obispo Appointed Sept . 2022 3/31/2028 Winston Newland Quality Suites Appointed April 2022 3/31/2027 Sandy Sandoval Embassy Suites SLO Appointed June 2022 3/31/2025 Nipool Patel Lamplighter Inn & Suites Appointed October 2023 3/31/2028 * Served as Chair for a portion of FY 23-24 ** Served as Vice Chair for a portion of FY 23-24 Page 213 of 369 SLO TBID Annual Report 2023-24 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 2023-24, the board continued holding a second monthly special meeting in addition to the regular board meeting . In total, the Board met 16 times for regularly scheduled monthly meetings and special board meetings during the fiscal year, representing an average of 37 volunteer hours annually per each of the seven board members . In 2023-24, the Board also met for agency interviews for their Marketing Services RFP . This process began in November 2023 and culminated in the Board’s recommendation during their May meeting . ADVISORY BODY BYLAWS Page 214 of 369 SLO TBID Annual Report 2023-24 5 In the 2024-25 fiscal year, the City of San Luis Obispo once again collected a record-breaking figure of transient occupancy tax (TOT) totaling $10 .9 million . This number represents a 2% increase over budget San Luis Obispo once again saw five $1 million revenue collection months in July, August, September April and June . This incredible contribution of TOT revenue to the City’s General Fund is one of the direct benefits of tourism for the City, as the full collection of TOT revenue is retained by the City . Separately, the TBID retains the revenue collected through its special assessment of 2%, which in FY 23-24 resulted in nearly $2 .2 million, more than $200,000 originally projected . The fiscal year 2023-24 occupancy level in the city slightly increased by less than 1% compared to the 2022-23 fiscal year, with an average annual occupancy rate of 68% for the year . While this modest year-over-year growth 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 about 3% below the 2018-19 fiscal year when annual average occupancy for the city exceeded 70% for the year . The growth of the Average Daily Rate (ADR) in San Luis Obispo has slowed . In 2023-24 the annual ADR was approximately $176, which on average is essentially flat to the previous year, but still $23 higher 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 2023-24 fiscal year, the annual average RevPAR was slightly up from the prior year at the rate of $121 .77 on average . While these numbers present a snapshot of the status of the lodging properties, the TBID Board also tracks the visitation into the downtown Visitor Center to represent the foot traffic . In FY 23-24, the Visitor Center served approximately 85,826 guests, up nearly 4% compared to the previous fiscal year . 2023-24 YEAR BY THE NUMBERS MEASUREMENT FY 2023-24 RESULT % CHANGE FROM FY 2023-24 TOT $10,901,820 .00 0% TBID $2,176,043 .00 0% Occupancy 68 .17% 0 .7% increase ADR $176 .31 -0 .5% decrease RevPAR $ 121 .77 0 .0% CHECK THE APPENDIX FOR COMPLETE GRAPHS (GRAPHS FOR TOT/ADR/REVPAR/OCC) Page 215 of 369 SLO TBID Annual Report 2023-24 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 outlined in the plan, the SLO TBID stewards the San Luis Obispo brand and represents its lodging partners, driving overnight stays by telling the story of San Luis Obispo through targeted marketing content and activities, serving as a convener and subject matter expert for tourism conversations impacting the destination and advancing strategic partnerships that extend the reach and influence of Visit San Luis Obispo . As defined within the plan, the TBID continues to focus on the fulfillment of the following 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 contains objectives and initiatives that the TBID Board strives to achieve in the life of the plan . The examples of the accomplishments pertaining to these Strategic Imperatives are highlighted throughout the annual report . In the fall of 2024, the TBID Board will be undergoing an update to its Strategic Plan for 2025-2030 . CHECK THE APPENDIX TO VIEW THE FULL STRATEGIC PLAN MATRIX STRATEGIC PLAN IMPLEMENTATION Page 216 of 369 SLO TBID Annual Report 2023-24 7 As a commitment to the imperative to “Ensure Operational Excellence” the TBID Board continued to support constituent relations efforts in 2023-24 . To keep the lodging constituency abreast of all TBID business, the TBID Board was assigned properties to liaise . 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 SLO Chamber’s contracted services to perform weekly lodging call-arounds and quarterly hotel visits . This resulted in 3,922 touch points with San Luis Obispo hotels through phone calls, emails and property visits to distribute important visitor-serving collateral . In addition, this year the TBID hosted two partner receptions to encourage constituent networking and provide an opportunity to hear important information on TBID projects and programs . Attendees at both events represented nearly half of the 42 lodging properties with eight strategic and community partners also in attendance . In post-event surveys, constituents rated the presentation and updates from the TBID and partners and the ability to network as most valuable . In addition creating opportunities for networking and education, the TBID also created marketing resources to support the lodging properties connection to promotional efforts . Visit San Luis Obispo’s MidWekend promotion to support off-peak, shoulder season travel was once again turned into a toolkit that was shared with lodging properties to utilize across their own channels . In addition to the marketing efforts of the TBID, the toolkit allowed individual properties to utilize draft messaging and promotional creative to more easily speak to their audiences, incentivizing travel to their property and SLO . CONSTITUENT RELATIONS Page 217 of 369 SLO TBID Annual Report 2023-24 8 DIVERSITY, EQUITY AND INCLUSION The TBID shares in the global mission for diversity, equity and inclusion . 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 inclusive destination for all . As an ally, the TBID listens and continuously reflects to fully understand the demand for more direct action so that all people can unequivocally feel a stronger sense of belonging and safety here . It is in the TBID organization’s DNA to treat all persons equally, with dignity and respect, including all cultures, national origins, gender identities, gender expressions, sexual orientations, pregnancy statuses, racial and ethnic identities, linguistic backgrounds and languages, age, abilities, genetic information, veteran status and spiritual/religious beliefs . The TBID is committed to sharing and amplifying these values with everyone who travels to San Luis Obispo . The TBID is committed to advancing Diversity, Equity and Inclusion through all work scopes, with diverse representation being top of mind as we invite newcomers and all to explore San Luis Obispo . DEI continues to show up within tourism efforts through: • Creating a strategic partnership with Gala Pride and Diversity Center . • Targeting more diverse audiences through paid media and public relations . • Uplifting and sharing diverse stories and faces through owned channels . • Expanding diverse representation within TBID-owned marketing assets . Page 218 of 369 SLO TBID Annual Report 2023-24 9 SUSTAINABILITY At its core, Visit San Luis Obispo’s brand vision is to be known as a tourism organization that balances business and sustainability, helping make San Luis Obispo a must-stay destination while passionately partnering to reach the City’s 2035 carbon neutrality goal . Over the past three years, Visit San Luis Obispo focused on creating a sub-brand — Sustainable SLO — to speak to travelers and locals and develop a consistent visual language that could be broadly applied . From these efforts sprang the Keys for Trees program and subsequent efforts, which not only created visibility around the City’s goals but also effected real-world change at a time when the importance of every action toward sustainability is heightened . This year Visit San Luis Obispo continued previous work efforts and developed new, impactful partnerships to advance sustainability and climate action within the tourism efforts . A few highlights include: • Partnering with Kind Traveler, a responsible travel platform, to leverage their sustainable-minded audience and network . • Continuing Keys for Trees, developed to offset the carbon impact from travel in the community . 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 . • Continued Citywide collaborations such as Solid Waste and Parks & Recreation to brand the City's big belly trash receptacles and trailheads . • Promoting off-season and mid-week travel through Visit San Luis Obispo’s promotional campaign The Midweekend . Page 219 of 369 SLO TBID Annual Report 2023-24 10 MARKETING ACTIVITIES To ensure that the TBID marketing programs are intercepting travelers at all stages of the traveler’s journey, the TBID 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 at the travelers’ journey helped the TBID incorporate and account for the fluctuations in travel behavior . • 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 • Public Relations • 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 travel information DREAMING PLANNING BOOKING EXPERIENCING SHARING Page 220 of 369 SLO TBID Annual Report 2023-24 11 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 San Luis Obispo brand supports the TBID’s initiatives to share the abundance of SLO, drive prosperity to the lodging economy and serve as the voice of all stakeholders . n FY 23-24, Visit San Luis Obispo continued to utilize the recently updated brand book . The guide describes what the destination marketing organization stands for, how it benefits travelers and locals and why it stands out . It contains the brand’s essence and spirit, as well as how it can be brought to life visually, verbally and culturally . It contains everything from guidelines for messaging and logo use to color palettes and brand partnership examples, as well as outlines the philosophies and beliefs for Visit San Luis Obispo . If putting “heads in beds” is Visit San Luis Obispo’s business purpose, putting “hearts in beds” is its brand purpose . We live to share all that SLO 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 as if it were their home and returning time and time again . Page 221 of 369 SLO TBID Annual Report 2023-24 12 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 222 of 369 SLO TBID Annual Report 2023-24 13 WEBSITE SEO ↑ 21% Overall Traffic YoY ↑ 32% Organic Traffic 26% Pages per Session ↑ 126% Organic Hotel Referrals ↑ 126% Organic Homestay Referrals ↑ 26% New Users YoY 9% Hotel Partner Referrals YoY (35,979 vs 33,173) ↑ 9% Hotel Partner Referrals YoY VisitSLO .com is the City’s official tourism website and the primary marketing tool used to represent the destination . It’s designed mainly for consumers but also serves the travel trade, meeting planners, TBID members and media . The website is the cornerstone for all of Visit San Luis Obispo’s marketing efforts — everything flows to or from the website . In July 2023, the TBID launched a redesign of VisitSLO .com, a process years in the making . Search Engine Optimization (SEO) ensures the relevancy and success of the TBID’s website . It also builds website authority to improve VisitSLO .com’s positioning and findability on search pages . By developing the 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 . The decrease in blog views is due to many of those articles being repurposed into pages instead . The decrease in blog views is due to many of those articles being repurposed into pages instead, and pulling traffic with it . ↑ ↑ Page 223 of 369 SLO TBID Annual Report 2023-24 14 DIGITAL MEDIA Leveraging a 7% budget increase, our FY23-24 digital media strategy employed a comprehensive, integrated approach combining traditional and digital tactics . Building on past successes, we focused on increasing awareness and interest for San Luis Obispo in key markets . Our goals included: • Brand Awareness & Interest: Increase brand awareness and build desire to visit San Luis Obispo in target drive and fly markets . Strategically managing spend, efficiently and effectively to maximize budget . • Increase Engagement & Planning: Encourage further engagement and consideration of San Luis Obispo among potential travelers by driving them to VisitSLO .com • Encourage Conversions & Booking: Optimize digital media strategies in order to encourage high-intent audiences to engage with The strategy proved successful, and we continue to gain valuable performance insights that will help us build upon previous years to consistently position San Luis Obispo as a top destination among our target audiences . ↑ 27% Paid Traffic YoY 62.9 MIL Paid Impressions 13.83% Paid Search CTR Benchmark 4 .68% 13.83% Paid Social CTR +30% ↑ 84% Google Ads Partner Referrals YoY ↑ 73% Google Ads + Facebook Clicks YoY 3,668 New Subscribers Added in the Last Year 34 Emails sent in total (Including brand research outreach, additional MidWeekend promotions, etc .) EMAIL MARKETING Building on the foundation laid in FY 22-23 with a revamped email template, segmented subscriber database, welcome series and re- engagement strategy, our FY 23-24 efforts centered on boosting audience engagement and growing our subscriber list . Through the monthly creation of hyper-personalized content, we aimed to foster stronger connections with SLO visitors . By offering gated content, giveaways and prominent sign-up buttons across the newly redesigned VisitSLO .com, we grew our email list while delivering tailored content to existing subscribers . ↑ 50% Avg . Newsletter Open Rate 2.4% Avg . Click Rate 20 Total Emails Sent ↑ 92% Growth in Newsletter Subscribers↑ Page 224 of 369 SLO TBID Annual Report 2023-24 15 PRINT ADVERTISING Limited print advertising placements were continued in Visit San Luis Obispo’s media mix for FY 23-24 . 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 • Visit California Visitors Guide & Road Trips Guide • Destination Brochure Distribution through Certified Folders • Cal Poly Program Ad & Visiting Teams Guide • Central Coast Tourism Council Map Cover and Regional Listing • Women’s Day Magazine SLO Chamber Visitors Guide Women's Day Magazine Page 225 of 369 SLO TBID Annual Report 2023-24 16 SOCIAL MEDIA ShareSLO — Visit San Luis Obispo’s social media — is a platform for locals and visitors alike to find inspiration, information and connection to and within San Luis Obispo . The goal of ShareSLO is to optimize Visit San Luis Obispo’s efforts and further establish clear value for following ShareSLO across social media . Some of the highlights include: • Creating an organic viral reel each quarter — We’re in SLO (337k), Hidden Gems Hike (217k), SLO Restaurant Week (100k), Waterfall Tiktok (47k) & Waterfall Reel (77k) . • Partnering with Amtrak on collaborative reel getting in front of their audience of 301k . • Substantial follower increase, 7,800 across all platforms with a 10% increase in out-of-area followers . • Shoutout from Visit California for the Top Short-Form Video in their California Now Travel Story Network June Newsletter . Visit San Luis Obispo Social Media Channels: Page 226 of 369 SLO TBID Annual Report 2023-24 17 PUBLIC RELATIONS In FY 23-24, Visit San Luis Obispo continued the shared approach to Public Relations contract efforts which included a joint contract between the TBID and the 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 local and regional strategic partners and journalists to build and maintain awareness of San Luis Obispo as an ideal place to live, play and stay . To further expand the proactive destination Public Relations efforts, DCI is responsible for national media relations . Our Public Relations efforts resulted in dozens of individual media visits and a group press trip, The Art of SLO(wing) Down . A significant new undertaking was the Southern California Media Mission, a dedicated activation for SLO on the road . Over five days, staff and SLO Chamber’s PR representative met with 23 national and regional media across three events and individual meetings spanning from Los Angeles to San Diego . The goal for PR in FY 23-24 was to curate fresh, unique content to continue inspiring travel, generate and secure media leads that speak to our target audiences — including drive markets — as well as build and strengthen relationships with key media who are the catalyst to generating awareness of the destination and its diverse experiences . Overall, San Luis Obispo received 276 mentions in media articles as a result of Public Relations efforts in FY 23-24, of which 133 placements were attributed to the proactive work . Top media coverage included: CNN Travel, Los Angeles Times, Forbes and AFAR . 605 MIL Circulation 23.4 MIL Media Impressions $5.8 MIL Ad Equivalency 571/1032 Qualitative Score 86 Total Number of Placements 17 PLACEMENTS 20% MWM List Penetration Page 227 of 369 SLO TBID Annual Report 2023-24 18 PROMOTIONS This year, Visit San Luis Obispo continued a promotion that began in FY 21-22 to drive midweek stays . The MidWeekend supports the strategic imperative to Deliver Smart Growth, as well as aligns with the destination stewardship and sustainability efforts by encouraging travel outside peak periods . . The MidWeekend In the winter of 2024, the MidWeekend promotional campaign returned to help drive midweek stays in San Luis Obispo . From February 1 to March 31, 2024, visitors were offered $100 cash 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 to send potential travelers to the MidWeekend landing page to get direct access to information on the special offer . In total, 216 visitors took advantage of the promotion, resulting in 531 total room nights and more than $93,000 in revenue across 33 of SLO’s 42 lodging properties . Page 228 of 369 SLO TBID Annual Report 2023-24 19 GUEST SERVICES Through a dedicated contract with the Visit San Luis Obispo, the San Luis Obispo Chamber of Commerce provides a suite of guest services to Visit San Luis Obispo . In FY 23-24, the SLO Chamber Visitor Center was contracted to answer each call made to Visit San Luis Obispo 1-877-SLO-TOWN number, which serves as a response tool to Visit San Luis Obispo’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 Visit San Luis Obispo properties and promote San Luis Obispo as a destination . During FY 23-24, nearly 500 calls were answered on the 1-877-SLO-TOWN line . The Guest Services also included the Live Chat widget on VisitSLO .com which received hundreds of conversations throughout the year Page 229 of 369 SLO TBID Annual Report 2023-24 20 EVENTS In FY 23-24, destination events continued to return to San Luis Obispo and 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: • SLO COAST WINE COLLECTIVE, HARVEST ON THE COAST - NOVEMBER 4, 2023 For the first time in more than a decade, Harvest on the Coast was held in Edna Valley, SLO’s wine region . The previous 11 years SLO Coast Wine Collective’s signature event had been held in Avila Beach . Visit San Luis Obispo supported the event with funding as its exclusive lodging partner as well as with marketing and advertising support leading up to the event . Additionally, any guests staying in a SLO lodging property received complimentary early access to a VIP tasting prior to the main event . • VINEYARD TEAM, SUSTAINABLE AG EXPO – NOVEMBER 13-15, 2023 The Sustainable Ag Expo was a three-day, mid-week, off-season educational symposium and tradeshow attracting over 500 wine industry professionals to San Luis Obispo. The Expo in 2023 marked the 18th year of the event. Visit San Luis Obispo supported this event with cash sponsorship for industry-specific promotion and funding to support lodging for speakers and presenters. • MISSION COLLEGE PREP HIGH SCHOOL, MISSION PREP CHRISTMAS CLASSIC, DECEMBER 19-22, 2023 The Mission Prep Christmas Classic is a four-day premier California High School Basketball tournament featuring some of the best high school basketball players from the state and beyond. The event draws a majority of out-of-area attendees and livestreams to thousands more. Visit San Luis Obispo was the exclusive lodging partner and supported the event with funding to host teams in SLO properties. • SLO INTERNATIONAL FILM FESTIVAL, 30TH FESTIVAL– APRIL 25-30, 2024 The 30th San Luis Obispo International Film Festival hosted a six-day event and screened over 100 films throughout the week. The event featured a VIP Festival Lounge, Red Carpet events, live music, educational conversations with filmmakers and industry leaders and capstone events each night that brought the community together to celebrate the arts and expose our audience to important topics around the world. Visit San Luis Obispo supported the festival in various promotional ways including funding and managing the out-of-area paid media campaign, funding to provide lodging for filmmakers, media and industry professionals and promoting a complimentary See + Stay film fest package in exchange for overnight reservations. • GALA PRIDE & DIVERSITY CENTER, PRIDE AND CULTURAL PROGRAM - YEAR ROUND Gala Pride and Diversity Center celebrated 30 years in 2024 and turned the success of their signature event, Central Coast Pride, into an ongoing Pride and Cultural Program. Visit San Luis Obispo invested as a legacy partner supporting not only the three-day kick-off Pride celebration which was held at venues throughout SLO like the Fremont Theater, Meadow Park and at Mission Plaza for PRIDE in the Plaza, but year-round programming. As part of the partnership, Visit San Luis Obispo funded and managed the out-of-area paid media campaign for Central Coast Pride, remains Gala’s exclusive lodging partner and continues to partner on overall cross-promotional efforts. In addition, the Visit San Luis Obispo continued participating in the multi-jurisdictional working group of 18 destination partners, event organizers and community leaders convened by Visit SLO CAL to provide input and guidance for the Events & Festivals Strategy . The Events & Festivals Working Group (EFWG) was pivotal in the development of the SLO CAL Events & Festivals strategy and alignment to drive new countywide visitation, to achieve incremental growth in the economic impact of tourism and enhance residents’ quality of life . The project work focused on creating a strategy for existing and future events that attract overnight visitors to the county, more efficiently utilize off-peak periods, drive collaboration and/or pairing of events for a positive economic outcome for SLO CAL and Page 230 of 369 SLO TBID Annual Report 2023-24 21 STRATEGIC PARTNERSHIPS Visit San Luis Obispo 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 . Visit San Luis Obispo’s strategic partnerships provide the opportunity for the marketing agencies and team to build relationships with the organizations below, elevating the destination as a whole . Promotional opportunities with each organization give Visit San Luis Obispo new platforms and audiences to build brand awareness . In April of 2024, Visit San Luis Obispo officially launched a new partnership with Kind Traveler, a responsible travel platform that empowers travelers to create positive change in the communities they visit . Through their Every Stay Gives Back Program, Visit San Luis Obispo has been able to showcase its Keys for Trees initiative and appeal directly to sustainably minded travelers within Kind Traveler’s network . In FY 23-24, the partnerships with Cal Poly continued to be essential to making a first and lasting impression of San Luis Obispo to supporters and their students . The partnership with Cal Poly’s Office of Student Affairs was extremely valuable this year with SLO Days, where during thirteen separate 45-minute long presentations about discovering San Luis Obispo, the team is able to connect with thousands of new Cal Poly Parents and Supporters . In addition to SLO Days, Visit San Luis Obispo has a presence on campus during Mustang Family Weekend and Open House . The TBID also continued 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: • Cal Poly’s Office of Student Affairs – New Student & Transition Programs and Parent Program • Cal Poly Athletics – Mustang Sports • Kind Traveler • ECOSLO with Keys for Trees • SLO Coast Wine Collective • Gala Pride & Diversity Center Page 231 of 369 SLO TBID Annual Report 2023-24 22 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 . This year, CHLA attended the second Visit San Luis Obispo Partner Reception presenting statewide legislative updates . VISIT CALIFORNIA The Visit California partnership has been critical in the growth of Visit San Luis Obispo’s brand within the California Tourism product . SLO 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 leads, trade contacts and newsletter content . 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 a seat on the board from staff and the SLO Chamber public relations representative on the PR committee . VISIT SLO CAL The TBID maintains participation with Visit SLO CAL by having a representative on the Board of Directors and the Economic Development & 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 strategic planning like the SLO CAL Events & Festivals Strategy . Page 232 of 369 SLO TBID Annual Report 2023-24 23 2022-23 AWARDS & ACCOLADES Through the work of Noble Studios, the TBID received multiple awards for integrated campaign and brand book development . AAF RENO ADDY Silver - Specialty Advertising / Merchandise HSMAI ADRIAN AWARD Bronze - Environmental, Social, Governance (Sustainable SLO) AAF RENO ADDY Silver - User Experience HSMAI ADRIAN AWARD Bronze - Digital Website HSMAI ADRIAN AWARD Bronze - Brand Campaign FINALIST IN THE 2024 ETSY AWARDS IN THREE CATEGORIES: • Best Email Marketing Campaign • Best Website • Best Use of Sustainability and Social Responsibility (Sustainable SLO) Page 233 of 369 SLO TBID Annual Report 2023-24 24 2023-24 FINANCIAL STATEMENT INCOME SOURCE 2023-24 2023-24 TOT Revenue Assumption * $10,704,000 2023-24 TBID Assessment Revenue Assumption *$2,140,800 Fund Balance Transfer Fund Reserve $200,000 2023-24 TBID Program Budget $2,140,800 EXPENDITURE ALLOCATED Operations/Staffing Administration Overhead (2% of TBID Assessment)$42,816 Staffing (FTE & .75 FTE) Staffing Contingency $276,698 $276,698 Contracts & Marketing Services Marketing Contract - Noble Studios/DCI $1,000,000 Chamber of Commerce - PR $50,000 Chamber of Commerce - Guest Services $51,975 Chamber of Commerce - Media Monitoring Service Fee $3,713 Co-op Marketing Program Funding $45,000 Content Marketing Services - Badger Branding $87,800 Partnerships & Promotions Cal Poly Athletics $65,000 EcoSLO - Sustainability Initiative $21,408 SLO Coast Wine Collective Membership $4,500 Events & Promotions General Events Promotion $100,000 Event Activation + Collateral $40,000 Seasonal Promotion $25,000 Tradeshows Tradeshows $25,000 Tourism Conferences $8,000 Tourism Organizations CCTC Dues $1,000 Smith Travel Report $3,629 CalTravel Membership $1,000 California Hotel & Lodging Association $30,000 Research + Program Research + Program Development $160,000 Support / Meetings Tourism Program Expenses $7,500 FAM Trip Hosting $8,000 Services/Online Tools/ Fulfillment (Dropbox, Crowdiff, Survey Monkey)$15,000 Contingency Contingency Fund $29,000 Totals Commited $2,140,341 Funds Remaining Total Allocated Expenditures ** * 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 234 of 369 SLO TBID Annual Report 2023-24 25 LOOKING AHEAD As the TBID moves into FY 24-25, the key focus areas that remain top of mind for the work of the Board in the next fiscal year: • Updating the TBID Strategic Plan for 2025-2030, setting the tone and tenor for Visit San Luis Obispo’s impact . • Developing the next evolution of Visit San Luis Obispo’s brand campaign with “the SLO Life Coach .” • Expanding Destination Stewardship through Sustainable SLO and Visit San Luis Obispo’s commitment to fostering a thriving and balanced tourism economy . • Continuing a thoughtful and intentional approach to Diversity, Equity and Inclusion across all TBID programs emphasizing the new opportunity utilizing TBID’s new public relations agency, Uniquely Driven and their network and expertise . While these are not the only subjects that the TBID Board will be focused on, these four areas will require a significant amount of dedication as Visit San Luis Obispo works toward successful implementation of each . Additionally, the TBID Board will implement the defined imperatives from the recently updated 2024-26 Strategic Marketing & Business Plan . In alignment and building off the forthcoming 2025-2030 Strategic Plan, the two-year marketing plan is truly a guide for the overarching marketing initiatives for Visit San Luis Obispo, and also the individual tactics and specific efforts that will help achieve them . LOOKING AHEAD Page 235 of 369 SLO TBID Annual Report 2023-24 26 APPENDIX TOT CHART FOR 2023-24 TOT DISTRIBUTION FOR 2023-24 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 2022-23 2023-24 Page 236 of 369 SLO TBID Annual Report 2023-24 27 TOT MONTH TO MONTH 2023-24 2,000,000 1,000,000 500,000 0 July Aug .Sept .Oct .Nov .Dec .Jan .Feb .Mar .Apr .May June OCC MONTH TO MONTH 80+ 0 2021-22 2022-23 2023-24 Oct .Sept .Aug .July JuneMayApr .Mar .Feb .Jan .Dec .Nov . 40 Page 237 of 369 28 ADR MONTH TO MONTH SLO TBID Annual Report 2023-24 190+ 120 2021-22 2022-23 2023-24 Oct .Sept .Aug .July JuneMayApr .Mar .Feb .Jan .Dec .Nov . 150 REVPAR MONTH TO MONTH 190+ 120 (R e v e n u e $ ) 150 90 0 2018-19 2019-20 2020-21 Oct .Sept .Aug .July JuneMayApr .Mar .Feb .Jan .Dec .Nov . Page 238 of 369 SLO TBID Annual Report 2023-24 29 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 239 of 369 SLO TBID Annual Report 2023-24 30Page 240 of 369 R _____ RESOLUTION NO. ______ (2024 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 2024-25 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 September 19, 2024 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 2023-24 as filed by the advisory body is hereby approved. Page 241 of 369 Resolution No. _____ (2024 Series) Page 2 R ______ b) The San Luis Obispo City Council proposes to cont inue 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 5:30 P.M., Tuesday, October 15, 2024, 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 242 of 369 Resolution No. _____ (2024 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 243 of 369 Resolution No. _____ (2024 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 24. ___________________________ 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 244 of 369 1 Tourism Business Improvement District Board Minutes September 4, 2024, 10:00 a.m. City Hall, 990 Palm Street, San Luis Obispo TBID Board Present: Member Winston Newland, Member Nipool Patel, Member Prashant Patel, Member Sandy Sandoval, Vice Chair Clint Pearce, Chair Lydia Bates TBID Board Absent: Member Lori Keller City Staff Present: Economic Development & Tourism Manager Molly Cano, Tourism & Community Promotions Manager Jacqui Clark- Charlesworth _____________________________________________________________________ 1. CALL TO ORDER A Special Meeting of the San Luis Obispo Tourism Business Improvement District Board was called to order on September 4, 2024 at 10:03 a.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo, by Chair Bates. 2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA Public Comment: None --End of Public Comment-- 3. BUSINESS ITEMS 3.a FY 23-24 TBID ANNUAL REPORT APPROVAL (15 MIN) Economic Development & Tourism Manager Molly Cano presented the staff report and responded to inquiries. Public Comment: None --End of Public Comment-- Motion By Member Sandoval Second By Member Nipool Patel Page 245 of 369 2 To approve the 2023-24 TBID Annual Report. Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates Absent (1): Member Keller CARRIED (6 to 0) 3.b STRATEGIC MARKETING & BUSINESS PLAN APPROVAL (15 MIN) Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries. Public Comment: None --End of Public Comment-- Motion By Vice Chair Pearce Second By Member Newland To approve the marketing and business plan for 2024-26. Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates Absent (1): Member Keller CARRIED (6 to 0) 3.c FY 2024-25 MEDIA PLAN REVIEW AND APPROVAL (25 MIN) Hayley Corbett and Danni Winter of Noble Studios presented the FY 2024- 25 media plan and rollover budget from FY2023-24 for the Board’s review and approval. Public Comment: None --End of Public Comment-- Motion By Member Sandoval Second By Member Nipool Patel To approve the media plan and roll over the remaining balance of $11,994.25 from FY 23-24 to FY 24-25’s paid media budget. Page 246 of 369 3 Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates Absent (1): Member Keller CARRIED (6 to 0) 3.d STRATEGIC PLAN CONSULTANT APPROVAL (15 MIN) Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries. Public Comment: None --End of Public Comment-- Motion By Member Sandoval Second By Member Nipool Patel To approve the consultant of Whereabout for the TBID’s 2025-2030 Strategic Plan. Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates Absent (1): Member Keller CARRIED (6 to 0) 3.e BUDGET UPDATES (10 MIN) Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries. Public Comment: None --End of Public Comment-- Motion By Member Nipool Patel Second By Vice Chair Pearce To approved staff's recommendation to replenish the FAM Trip Hosting Budget in an amount up to $7,500 from available fund balance and to approve up to $3,500 from the Event Activation + Collateral to create Visit Page 247 of 369 4 SLO branded socks to be distributed to Spartan Race attendees at the on- site activation. Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates Absent (1): Member Keller CARRIED (6 to 0) 4. ADJOURNMENT The meeting was adjourned at 11:25 a.m. The next Regular Meeting of the Tourism Business Improvement District Board is scheduled for October 9, 2024 at 10:00 a.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo. _________________________ APPROVED BY TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD: XX/XX/202X Page 248 of 369 Confidential. Intellectual property of Visit San Luis Obispo.1 City of San Luis Obispo Tourism Business Improvement District FY 2023-24 Annual Report As recommended by the Tourism Business Improvement District (TBID) Board, 1)Receive and approve the TBID Board’s annual report for FY 2023-24; and 2)Adopt a Resolution of Intention to levy and collect assessments within the TBID area in fiscal year 2024-25 at the same rate as in fiscal year 2023-24 (2%). 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 FY 23-24 SLO TBID Board SLO TBID Contractor Team FY 2023-24 By the Numbers By the Numbers Measurement FY 23-24 Result % Change from FY 22-23 TOT Revenue $10,995,912.00 +0.25% TBID Assessment Revenue $2,212,602.00 +0.26% Occupancy (OCC)68.17%+0.01% Average Daily Rate (ADR) $176.31 0.00% Revenue Per Available Room (RevPAR) $121.77 +0.01% 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 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2023-24 TBID Summarized Financials Source FY 23-24 FY 23-24 TOT Revenue Assumption $10,704,000 FY 23-24 TBID Revenue Assumption $2,140,800 Fund Reserve $200,000 FY 23-24 TBID Program Budget $2,140,800 FY 23-24 Total Allocated TBID Expenditures* $2,140,341 * This figure represents the total allocated expenditures. The difference will be available for carryover to the 2024-25 program budget. FY 2023-24 Work Program 2019-2024 Strategic Plan Marketing Activities Confidential. Intellectual property of Visit San Luis Obispo.16 Looking Ahead to FY 24-25 •Updating the 2025-2030 Strategic Plan •Developing the next evolution of the brand campaign •Expanding Destination Stewardship through Sustainable SLO •Continuing a thoughtful approach to DEI •And more… As recommended by the Tourism Business Improvement District (TBID) Board, 1)Receive and approve the TBID Board’s annual report for FY 2023-24; and 2)Adopt a Resolution of Intention to levy and collect assessments within the TBID area in fiscal year 2024-25 at the same rate as in fiscal year 2023-24 (2%). Public Hearing Scheduled for October 15, 2024. Recommendation Thank YouThank You