HomeMy WebLinkAboutItem 7a - 2025-26 Annual Report of the TBID and Resolution of Intention to Continue Item 7a
Department: Administration
Cost Center: 208-1006
For Agenda of: 10/6/2026
Placement: Business
Estimated Time: 30 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Jacqui Clark-Charlesworth, Tourism & Community Promotions Manager;
Laura Fiedler, Economic Development & Tourism Manager
SUBJECT: 2025-26 ANNUAL REPORT OF THE TOURISM BUSINESS
IMPROVEMENT DISTRICT (TBID) AND ADOPTION OF A RESOLUTION
OF INTENTION TO CONTINUE THE TBID
RECOMMENDATION
1. As recommended by the Tourism Business Improvement District (TBID) Board,
receive and approve the TBID Board’s annual report for FY 2025-26; and
2. Adopt a Resolution of Intention entitled, “A Resolution of the City Council of the City
of San Luis Obispo, California, declaring its intention to continue the San Luis Obispo
Tourism Business Improvement District, to continue the basis for and to levy the
assessment for the district, and to set a date for the Public Hearing on the district and
the assessment for 2026-27.
POLICY CONTEXT
As referenced in the City’s 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 that outlines the past year’s efforts and how
the funding was used and to what effect.
DISCUSSION
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 201 of 274
Item 7a
Section 36534 further requires that, after the approval of the annual report , if the TBID is
intended to continue, the Council shall adopt a resolution of intention (Attachment B) to
levy an annual assessment for the following year. The resolution also sets a public
hearing to receive any written or oral protests against the continuation of the TBID as
required by Section 36535.
Annual Report
On September 9, 2026, the TBID Board met in a regular monthly meeting to finalize the
2025-26 annual report for recommendation to the Council. Public noticing for the TBID
Advisory Board meeting was performed through the posting of the agenda on the City’s
website by 5:00 pm on September 3, 2026. For convenience, the agenda was also
distributed to TBID constituents and stakeholders via email. The annual report reiterates
the use of the TBID funds within the defined marketing platform that guides the strategy
used to deliver on the TBID’s objective and goals.
The annual report’s contents include:
1. TBID Background and Advisory Body
2. 2025-26 Year by the Numbers
3. Strategic Plan Implementation and Program Approach
4. 2025-26 Summary of Activities
5. 2025-26 Financial Analysis
6. Looking Ahead to 2026-27
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 20, 2026. The public hearing will allow lodging
owners the opportunity 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 the noticed public
hearing, unless oral or written protests are received from City lodging owners that pay
50% or more of the proposed assessments. In that event, the Council cannot consider
continuation of the TBID in the City for at least one year.
Noticing Schedule
Legal notices regarding the Council’s review and consideration of the TBID annual report
were published in the New Times and mailed to TBID properties on September 24, 2026.
For convenience, the link to the agenda was also distributed to TBID constituents and
stakeholders via email.
Previous Council or Advisory Body Action
On September 9, 2026, the TBID Board approved the 2025-26 annual report for
submission to Council and recommended the continuation of the TBID for fiscal year
2026-27 (Attachment C).
Page 202 of 274
Item 7a
Public Engagement
This item is on the agenda for the October 6, 2026, Council Meeting and will follow all
required postings and notifications. The public may have an opportunity to comment on
this item at or before the meeting. All Advisory Body Meetings for the TBID were noticed
in accordance with Brown Act standards.
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: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other: TBID $2,299,130 $0 $2,299,130 N/A
Total $2,299,130 $0 $2,299,130 N/A
The current unaudited year-end TBID Assessment Revenue for 2025-26 is $2,456,086,
which is approximately $236,146 or 10.4% more than the budgeted amount, based on
the calculation of 20% of the projected Transient Occupancy Tax (TOT) reflected on page
29 of the adopted 2025-27 Financial Plan Supplement. In accordance with the City’s
Municipal Code, 12.42.080, any funds remaining at the end of any TBID term may be
used in subsequent years. Historically, the TBID Board has on occasion recommended
the use of available fund balance for timely, strategic investments in marketing activities
during the year that are outside of the normal budget process. In 202 5-26, this included
$45,100 in additional short-form videos for the SLO Life Coach brand campaign and
$11,322 for the reprinting of the destination marketing brochure.
In 2026-27, the TBID projected revenue is $2,299,130 and is budgeted for program costs
including staffing. Additionally, the City will retain approximately $45,983 of the
assessment revenue – just over 2% of 2026-27 TBID Assessment Revenue – to cover
the City’s administrative costs associated with collecting and disbursing the assessment.
Page 203 of 274
Item 7a
ALTERNATIVES
1. The Council may choose to not approve the report or levy the assessment. The
TBID Board has fully reviewed the report and recommended the approval to Council
to move forward with the Public Hearing, but the Council has full discretion on
approving the report and choosing to move forward with the notice of intent to levy the
assessment.
2. The Council may choose to request more information and continue this item to
a future meeting. The TBID Board has thoroughly reviewed the report and
recommended the approval to Council, and delaying approval could inhibit the timeline
for the Public Hearing and subsequently the TBID’s ability to perform its functions as
required.
ATTACHMENTS
A – SLO TBID 2025-26 Annual Report
B – Draft Resolution of Intention to continue the SLO TBID
C – TBID Draft Minutes from September 9, 2026
Page 204 of 274
Page 205 of 274
Page 206 of 274
Page 207 of 274
Page 208 of 274
Page 209 of 274
Page 210 of 274
Page 211 of 274
Page 212 of 274
Page 213 of 274
Page 214 of 274
Page 215 of 274
Page 216 of 274
Page 217 of 274
Page 218 of 274
Page 219 of 274
Page 220 of 274
Page 221 of 274
Page 222 of 274
Page 223 of 274
Page 224 of 274
Page 225 of 274
Page 226 of 274
Page 227 of 274
Page 228 of 274
Page 229 of 274
Page 230 of 274
Page 231 of 274
Page 232 of 274
Page 233 of 274
Page 234 of 274
Page 235 of 274
Page 236 of 274
R _____
RESOLUTION NO. ______ (2026 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
2026-27
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 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 24, 2026 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
2025-26 as filed by the advisory body is hereby approved.
Page 237 of 274
Resolution No. _____ (2026 Series) Page 2
R ______
b) The San Luis Obispo City Council proposes to continue the established
Tourism Business Improvement District in the City of San Luis Obispo in
accordance with City Municipal Code Chapter 12.42 and the California Streets
and Highways Code, sections 36500 et seq. (Parking and Business
Improvement Law of 1989).
c) The assessment levied by the Tourism Business Improvement District shall be
used to promote lodging at the hotels within the district and administer a
marketing program that increases overnight hotel stays pursuant to the set
goals.
d) The assessment will be levied and allocated by the City of San Luis Obispo.
e) The assessment is proposed to be levied on all “hotels”, as that term is defined
in San Luis Obispo Municipal Code section 3.04.020, to wit: any 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, October 20,
2026, 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. If 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 the written evidence from
the owner that the person is 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 238 of 274
Resolution No. _____ (2026 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 239 of 274
Resolution No. _____ (2026 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 _____________________ 2026.
___________________________
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 240 of 274
1
Tourism Business Improvement District Board Minutes
September 9, 2026, 10:00 a.m.
Council Hearing Room, 990 Palm Street, San Luis Obispo
TBID Board Present: Member Mark Eads, Member Christopher Morgan, Member
Prashant Patel, Member Dante Specchierla, Vice Chair Lori
Keller, Chair Clint Pearce
City Staff Present: Tourism & Community Promotions Manager Jacqui Clark-
Charlesworth
_____________________________________________________________________
1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo Tourism Business Improvement
District Board was called to order on September 9, 2026 at 10:03 a.m. in the
Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo, by Chair
Pearce.
2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public Comment:
None
--End of Public Comment--
3. CONSENT
Motion By Member Eads
Second By Member Patel
To approve Consent Items 3a. to 3g
Ayes (6): Member Eads, Member Morgan, Member Patel, Member Specchierla,
Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)
3.a MINUTES OF TBID REGULAR MEETING ON AUGUST 12
3.b SMITH TRAVEL REPORT (STR)
3.c TRANSIENT OCCUPANCY TAX (TOT) REPORT
3.d SLO CHAMBER PUBLIC RELATIONS MONTHLY REPORT
Page 241 of 274
2
3.e SLO CHAMBER GUEST SERVICES MONTHLY REPORT
3.f NOBLE STUDIOS & UNIQUELY DRIVEN MARKETING MONTHLY
REPORT
3.g BADGER BRANDING ORGANIC SOCIAL REPORT
4. BUSINESS ITEMS
4.a KEY PERFORMANCE INDICATOR BASELINES & REPORTING (15 MIN)
Danni Winter from Noble Studios presented the report and responded to
inquiries.
Public Comment:
None
--End of Public Comment--
To approve the recommended update to the Noble Studios KPI framework
in FY 2026-27.
Motion By Vice Chair Keller
Second By Member Morgan
Ayes (6): Member Eads, Member Morgan, Member Patel, Member
Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)
4.b META VERIFICATION PROPOSAL (10 MIN)
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth
presented the staff report and responded to inquiries.
Public Comment:
None
--End of Public Comment--
To approve the proposal for social media verification status, investing at
the Plus Level for $49.99/ month with an annual commitment, as
recommended by Management Committee. The annual cost to TBID is
$600 and will be paid out of their contingency fund.
Motion By Member Specchierla
Second By Member Patel
Page 242 of 274
3
Ayes (6): Member Eads, Member Morgan, Member Patel, Member
Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)
4.c VISIT SLO CAL MEDIA MISSION CO-OP (10 MIN)
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth
presented the staff report and responded to inquiries.
Public Comment:
None
--End of Public Comment--
To approve the recommendation to participate in a co-op with Visit SLO
CAL for a media event in San Francisco in Fall or Winter 2026, as
recommended by Marketing Committee. Projected expenses are $3,184
and will be paid for out of TBID’s Tradeshow line item.
Motion By Member Eads
Second By Vice Chair Keller
Ayes (6): Member Eads, Member Morgan, Member Patel, Member
Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)
4.d TBID PARTNER RECEPTION (10 MIN)
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth
presented the staff report and responded to inquiries.
Public Comment:
None
--End of Public Comment--
To approve the recommendation for the first member reception of the FY
on October 28, up to $3,500 from the TBID’s Tourism Program Expenses
line item, as recommended by Management Committee.
Motion By Member Morgan
Second By Member Specchierla
Page 243 of 274
4
Ayes (6): Member Eads, Member Morgan, Member Patel, Member
Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)
4.e FY 25-26 TBID ANNUAL REPORT APPROVAL (15 MIN)
Gabbi Hall and Cathy Davis from Noble Studios presented the report and
responded to inquiries.
Public Comment:
None
--End of Public Comment--
To approve the draft FY 2025-26 TBID Annual Report as recommended by
Management Committee to be presented to City Council on October 6,
2026.
Motion By Member Eads
Second By Member Specchierla
Ayes (6): Member Eads, Member Morgan, Member Patel, Member
Specchierla, Vice Chair Keller, and Chair Pearce
CARRIED (6 to 0)
4.f FY 25-26 TBID ANNUAL REPORT HIGHLIGHT VIDEO (10 MIN)
Gabbi Hall and Cathy Davis from Noble Studios presented the report and
responded to inquiries.
Public Comment:
None
--End of Public Comment--
Action: No action taken on this item.
5. TBID LIAISON REPORTS & COMMUNICATION
5.a HOTELIER UPDATE
Members shared their observations from the past month regarding
occupancy and bookings.
5.b MARKETING COMMITTEE UPDATE
Page 244 of 274
5
Reported on during the meeting.
5.c MANAGEMENT COMMITTEE UPDATE
Reported on during the meeting.
5.d PCC UPDATE
August’s meeting was cancelled, however Tourism & Community
Promotions Manager Jacqui Clark-Charlesworth provided a brief update
on current PCC programming.
5.e VISIT SLO CAL UPDATE
Chair Pearce provided a brief update on Visit SLO CAL activities.
5.f TOURISM PROGRAM UPDATE
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth
provided an update on the tourism program.
6. ADJOURNMENT
The meeting was adjourned at 11:06 a.m. The next Regular Meeting of the
Tourism Business Improvement District Board is scheduled for October 14 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 245 of 274
Page 246 of 274