HomeMy WebLinkAbout10-07-2014 B2 Annual Report of the TBIDCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Michael Codron, Assistant City Manager
Prepared By: Molly Cano, Tourism Manager
SUBJECT: ANNUAL REPORT FOR THE TOURISM BUSINESS IMPROVEMENT
DISTRICT
RECOMMENDATION
1. Receive and approve the Tourism Business Improvement District (TBID) Board’s annual
report.
2. Adopt a resolution of intention to levy and collect assessments within the TBID area in
fiscal year 2014-15 at the same rate as in fiscal year 2013-14.
DISCUSSION
Background
In June 2008 Council adopted Ordinance 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 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 an
annual report (Attachment 1) that outlines the past year’s efforts and how the funding was used
and to what effect.
In Section 35634, the law further requires that after the approval of the annual report, Council
shall adopt a resolution of intention (Attachment 2) to levy an annual assessment for that fiscal
year. The resolution also sets a public hearing in order to receive any written or oral protests
against the continuation of the district as required by the applicable statute.
Annual Report
On September 10, 2014, the TBID Board met in its regular monthly meeting to, among other
agenda items, finalize the annual report (Board Minutes - Attachment 3). The 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 report content includes:
1. TBID Background and Advisory Body
2. The TBID’s objective and goals
3. 2013-14 Marketing Strategy and Detail
4. 2013-14 Summary of Activities
5. 2013-14 Campaign Metrics
6. 2013-14 Financial Statement
10/7/14
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2014-15 COMMUNITY PROMOTIONS PROGRAM Page 2
Next Steps
Assuming the City Council approves the annual report and adopts the resolution of intention, a
public hearing will be noticed for October 21, 2014. The public hearing will allow hoteliers to
submit comments, voice concerns, and protest the assessment.
As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the
Council has the ability to continue the proposed citywide TBID at this public hearing, unless oral
or written protests are received from City hoteliers that pay 50% or more of the proposed
assessments. In that event, the Council cannot consider continuation of the TBID in the City of
San Luis Obispo for at least one year.
FISCAL IMPACT
The current unaudited year-end revenues for 2013-14 are $1,217,300, which is approximately
$17,800 more than the budgeted amount. In 2014-15, the TBID projected revenue is $1,259,060
and is budgeted for program costs including staffing. Approximately $25,000 is budgeted to
cover the City’s administrative costs associated with collecting and disbursing the assessment.
ALTERNATIVE
The City Council may choose to not approve the report. This is not recommend as the advisory
body has fully reviewed the report and recommended the approval to City Council in order to
move forward with the Public Hearing for the Tourism Business Improvement District.
ATTACHMENTS
1. Annual Report
2. Resolution of Intention
3. TBID Board Draft Minutes from September 10, 2014
t:\council agenda reports\2014\2014-10-07\annual report of the tbid (codron-cano)\car_2013.14 tbid annual report.docx
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Tourism Business Improvement District
Annual Report 2013-14
Attachment 1
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1 TBID Annual Report 2013-14
Letter from the Chair
This year the City of San Luis Obispo’s Tourism
Business Improvement District (TBID) marked the fifth
year of business since the district was established. This
momentous year brought with it tremendous results
of our marketing program and also the opportunity to
move our efforts forward into the next phase of
tourism marketing for San Luis Obispo.
In fiscal year 2013-14, the Transient Occupancy Tax
reached it’s the highest annual collection amount in
the City’s history, just over $6 million in total. Nearly every month produced record setting
numbers for both occupancy and Average Daily Rate (ADR). This achievement proves that our
efforts are returning great value to our members and the City as a whole.
Over the past year, the TBID Board welcomed two new commissioners to our seven member
advisory Board: John Conner of Petit Soleil and Michael Adams of the Courtyard by Marriott.
Commissioner Conner is no stranger to the TBID, in fact he can be credited with spearheading
the formation of the district and subsequently served two complete terms as Board Chair.
Commissioner Adams, while being new to the role of an official Board Member, as a constituent
member he has served on numerous TBID taskforces and committees over the past five years
and has also represented the City at various travel industry and consumer tradeshows. Their
dedication and leadership will serve the San Luis Obispo lodging businesses well.
This was the year of forward thinking for the district. We dedicated much of our time and effort
on looking toward the opportunities that the next five years can bring for tourism in the San Luis
Obispo. The Board and staff invested significant time, resources, and hard work in developing a
five year strategic clarity document that will serve as the framework for the direction that the
TBID will purse moving forward. Our development of a long-term strategic plan for our TBID has
once again shown our leadership amongst local TBIDs, many of whom are now pursuing a
similar process. This year we commissioned new technologies for our marketing program
including: GoSLO a mobile gamification platform and the Helium booking engine to ensure that
we were continuing to be relevant in the constantly changing travel business.
2013-14 was also the final year of our marketing contract with Rosetta, our trusted agency who
guided us through the establishing our tourism marketing efforts from the very beginning. As
that partnership came to a close, we redefined our future programs by selecting two local
marketing agencies, Barnett Cox and Associates (BCA) and StudioGood, through a very
competitive process to manage and further develop our brand. We are proud of our
accomplishments this year and we are excited for what’s coming next!
Sincerely,
Nipool Patel
Attachment 1
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2 TBID Annual Report 2013-14
Contents
Background ………………………………………………………………….3
Goals & Objectives ………………………………………………………..5
Marketing Platform …………………………………………………….…6
2013-14 Summary………………………………………………………….7
2013-14 Data Comparison ……………………………………………14
Financial Statement………………………………………………………16
Attachment 1
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3 TBID Annual Report 2013-14
Tourism Business Improvement District (TBID) – Background
In June 2008 the City Council adopted Ordinance 1517 establishing the tourism business
improvement district (TBID) in the City of San Luis Obispo as requested by the local lodging
industry. The assessment of two percent of gross receipts for the district became effective on
October 1, 2008 and the use of funds was defined in Section 12.42.030 of the Municipal Code as
follows:
“This ordinance is made and enacted pursuant to the provisions of
the Parking and Business Improvement Area Law of 1989
(Sections 36500 et. seq., of the California Streets and Highways
Code). The purpose of forming the district as a business
improvement area under the Parking and Business Improvement
Area Law of 1989 is to provide revenue to defray the costs of
services, activities and programs promoting tourism which will
benefit the operators of hotels in the district through the
promotion of scenic, recreational, cultural and other attractions in
the district as a tourist destination.”
Advisory Body
The use of the assessment fund is based on the recommendation of the Tourism Business
Improvement District advisory board that is staffed by City of San Luis Obispo hotel owners,
operators, and/or managers. The board members are appointed by the City Council and serve
for an initial term of four years with the opportunity to serve second term for a maximum of
eight years.
2013-14 Advisory Board
Name Property Term
Clint Pearce - Past Chair Madonna Inn 3/31/2015
Dean Hutton Apple Farm 3/31/2017 (2nd term)
John Conner Petit Soleil 3/31/2015
Matthew Wilkins Sands Inn 3/31/2016
Nipool Patel - Chair Comfort Inn 3/31/2016 (2nd term)
Michael Adams Courtyard 3/31/2017
Kimberly Walker Granada Inn 3/31/2017 (2nd term)
Attachment 1
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4 TBID Annual Report 2013-14
Advisory Body Bylaws
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 board meets monthly on the second Wednesday at 10 a.m. for its regular board meeting. In
2013-14, the board met in 12 regular monthly meetings and 7 special meetings. Additionally, it
appointed a budget task force, strategic plan taskforce, and marketing RFP taskforce and
appointed three of its members to serve on the events promotion subcommittee together with
three members of the Promotional Coordinating Committee. In order to keep the lodging
constituency abreast of all TBID business, the board assigned liaisons and each board member is
responsible for communication with his/her respective group of hotels. The board chair and
staff continue to visit all properties at least once a year to personally bring TBID updates and
marketing opportunities to each property.
Attachment 1
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5 TBID Annual Report 2013-14
Goals and Objectives
Objective
The TBID’s objective is to promote tourism to San Luis Obispo and expeditiously increase
overnight stays in City hotels or simply: “Put heads in hotel beds”.
Goals
The goals to achieve the objective are five-fold and are the base for all promotional efforts and
the programmatic approach within the marketing strategy:
1. Increase occupancy at all 38 hotel properties throughout the year;
2. Increase occupancy during shoulder months;
3. Increase occupancy mid-week;
4. Stabilize bookings and emphasize the City as a year-round destination;
5. Increase the length of stay.
The objective and the goals are at the core of all efforts put forth under the TBID annual work
program. The initial efforts concentrated on an advertising campaign centered around the
tourism website www.sanluisobispovacations. After five years, the TBID’s program has matured
into a promotional marketing platform utilizing a multitude of elements in support of the
defined goals and set objective.
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6 TBID Annual Report 2013-14
2013-14 Marketing Strategy
All of the TBID’s efforts are driven by the objective and goals to increase demand for overnight
stays and hotel occupancy. The City’s tourism website www.sanluisobispovacations.com
continues to remain the center piece to which all other efforts drive traffic. A key measure
within the site is the use of the “Hotel Finder” which is dominantly placed on all pages within
the site. Subsequently, the TBID has developed an additional website www.shareslo.com
focused on aggregating content produced by residents to tell our community’s unique stories
and serve as the foundation of our social media marketing efforts.
In 2013-14 the five pillar marketing platform approach was expanded to include a sixth pillar for
social media. These pillars utilized distinct elements to broaden awareness of San Luis Obispo as
a destination and to actively bring people to town.
2013-14 Marketing Platform
Advertising Partnerships Tradeshows
Events
Promotion
Tourism
Organizations Social Media
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7 TBID Annual Report 2013-14
2013-14 Marketing Detail
Advertising
With a fully operating media funnel for the past four years, the
campaign has been able to advance the objectives in the recovering
travel market. The funnel concentrates on the four key elements:
utilizing traditional and online advertising, social media, search tools,
and a monthly newsletter to drive traffic through the funnel and
ultimately result in booking a hotel room in San Luis Obispo.
In fiscal year 2013-14, the TBID maintained the budget allocations
initiated in 2012-13 and as a result, the marketing and advertising
contract was stabilized at the previous year investment level.
Based on this approach, the marketing strategy was adjusted to the
focus “back to the basics” of the TBID’s proven success. The 2013-14
marketing campaign continued to deepen the targeting of experience specific interests and
maximized the user experience on the website, using current traveler research and site analytics
aggregated from the previous year.
The executed plan utilized the following strategies:
o Re-engage a Search Engine Optimization (SEO) and Search Engine Marketing
(SEM) strategies
o Leverage the targeted email strategy
o Create new banner suites to take advantage of partnership programs
o Normalize the media spend
Focusing on SEO and SEM, the City’s Marketing Agency for the TBID, Rosetta Marketing
completed a full website audit for thorough analysis of the website's strengths and weaknesses.
They reviewed user behavior, traffic sources and site usability to provide a comprehensive view
of the site's performance. Based on the results from the audit, the agency’s web team
completely optimized the content on the site in order to increase the site performance and
enhance the user’s experience. They also evaluated and adjusted the keyword strategy to
ensure that the search results related to San Luis Obispo would result in visits to
www.sanluisobispovacations.com .
The results of these efforts included:
• 49% increase in visits to website in 2014 vs. 2013 year cycle
• 54% increase in overall users
• 18% increase in page views
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8 TBID Annual Report 2013-14
Website Traffic Comparison for 2013-14 to 2012-13
Expenditure Detail
As mentioned above, Rosetta Marketing, continued to purse an aggressive digital heavy media
campaign. Due to aggressive media buying, constant monitoring and campaign adjustment, the
agency spent the complete $600,000 of the budget on general marketing expenditures and
campaign overall.
A significant portion of the targeted digital advertising spend was specifically invested in in the
high performers like Display in Google, which is cost per click instead of impression-based, and
Trip Advisor, a primary travel research outlet. These outlets were pursued because they are
both mid-funnel in the buyers behavior with a lower cost to convert to a booking. Rosetta also
kept the low-funnel pay-per-click SEM in intact to not miss travelers actively looking for San Luis
Obispo travel options and lodging.
Additionally, the agency added support to further grow the TBID’s social media presence by
investing in regular Facebook ads and promotions for the ShareSLO program.
Social Media
The TBID’s social media platform has been built on a program called ShareSLO. In 2012-13,
ShareSLO is one of the major marketing initiatives and the program continued in 2013-14. The
program is aimed at developing a new approach to managing social media networks though
consistent and relevant content upload and participation. The program was crafted as a way to
launch the TBID into the social media networks through creating a unique platform and program
to build community support and content integration.
In 2013-14, the ShareSLO program continued to be focused on building the community. In order
to accomplish this, the key strategies included:
• Interacting and engaging with the public to expand awareness
• Connect with event organizers for potential promotional opportunities in SLO
• Promote San Luis Obispo and events on social networks reaching outside area to
increase visitors
• Document events and activities and share on social networks
• Contribute ti the community forum blog on ShareSLO.com
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9 TBID Annual Report 2013-14
ShareSLO.com is a community-generated information hub providing up-to-date and entertaining
accounts of life in the happiest city in North America. It celebrates all that San Luis Obispo has to
offer, through the eyes of real residents and visitors. With a local events calendar, community
blog and live feeds from Twitter and Instagram, ShareSLO.com helps visitors live like the locals.
The ShareSLO.com blog reports on activities and events, local hot spots and backroad
adventures that are all uniquely San Luis Obispo. Whether wine, food, outdoor activities or Cal
Poly life, ShareSLO bloggers are in-the-know when it comes to local happenings and Central
Coast life. Visitors can find them out on the town and online enjoying everything that makes our
city great.
ShareSLO.com is populated with content provided by community members and the Street
Team. The Street Team is encouraged to use the hashtag term (#shareslo) on their social posts
in order for the results and reach of their post to be tracked. Serving as the TBID’s social media
platform, the campaign generated substantial results and reach for the SLO TBID.
ShareSLO Results by the Numbers
Mobile Experience Development
The mobile trend has been on a continual growth trajectory. The TBID’s website,
www.sanluisobispovacations.com, has seen incredible growth in mobile usage up 46% over last
year. Previously, the TBID’s website was mobile compatible but not responsive which negatively
impacted the user experience. Below is a chart reflecting the increase in mobile traffic since the
launch of the City’s tourism website in 2010.
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10 TBID Annual Report 2013-14
Mobile Traffic to sanluisobispovacations.com
In response to this influx in mobile traffic, the TBID prioritized the development of new
technologies for the TBID’s website to enhance the mobile experience. The analytics that
showed that visits to the mobile site were mostly likely in market while a
traveler was already in San Luis Obispo, so in response Rosetta designed
a complete mobile experience rather than just updating the site to be
responsive.
The mobile experience called GOSLO is a gamification take on traditional
itinerary planning an serves as an on-the-go mobile companion to the
City’s tourism website, SanLuisObispoVacations.com. Much like a
‘matchmaking’ scenario, GOSLO allows users to choose activities from a
series of illustrated cards. Based on their preferences, GOSLO generates
their ‘SLO style badge’ with a customized vacation itinerary. GOSLO
vacation styles include the SLOcavore for wine and food enthusiasts,
SLOmancer for those wishing for a romantic getaway and the Kerouwhack for travelers looking
for quirky, off-the beaten path recommendations. This experience launched in late May 2014.
Partnerships
In 2013-14, this element of the marketing mix continued to expanded from solely focusing on
partnerships for exclusive lodging in San Luis Obispo to include partners that could help
strategically support and expand the marketing efforts of the TBID overall.
For example, a new partnership in 2013-14 was with San Luis Obispo
Wine Country Association. This relationship was something that the TBID
had hoped to establish for a number of years but was unsuccessful in
doing. However in 2013-14, the TBID was able to establish a beneficial
marketing partnership with SLO Wine. The main objective was to establish
a dynamic partnership to build tourism in conjunction with the wine
industry and increase awareness of the region overall. In addition to the
opportunities to work with SLO Wine to host media , trade, and VIP consumers, the TBID and its
constituents received outstanding membership benefits from SLO Wine including:
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11 TBID Annual Report 2013-14
• Announcements and hyperlinked logo on over 50 in SLO Wine E-Newsletters distributed
to over 10,000 subscribers which resulted in over 200 direct click throughs to the TBID’s
website
• Website branding on SLOWine.com with listing under associate members and “Stay”
Section, the TBID logo & banner ads featured throughout website and premier logo
placement under member partner page
• Ad space in SLO Wine Country Map with 60,000 maps printed and distributed in all
hotels, CA Visitors Centers, Chambers, and in Ventura & SB County.
The longest standing partnership with Cal Poly Athletics began in 2011-12,
when the City entered into a three-year agreement to host all of Cal Poly’s
conference visiting teams, recruits, and athletic guests. In 2013-14 the
contract was in the final year and the program continued stronger than ever.
Again, 575 guests from eight different sports were lodged in San Luis Obispo
not including visiting parents and other guests travelling with the teams.
Besides the direct lodging component, the sponsorship benefits opened the
Cal Poly Athletics newsletter and alumni list to the promotional efforts of the TBID in addition to
exclusivity on hotel messaging at all the stadiums, programs, and promotional tools of Cal Poly
Athletics. This partnership expanded to help support the ShareSLO campaign and to build
awareness with students and Cal Poly fans to #shareslo.
In 2013-14, the exclusive partnership with Nature Corps to secure
lodging of all volunteer vacation participants in San Luis Obispo was
continued for the third year. Since 1987 the Nature Corps has organized
luxury volunteer vacations to help bridge the gap between dwindling
resources and the growing need for preservation and rehabilitation of
fragile wilderness ecosystems within the national and state parks. In San
Luis Obispo County, the Corps offers two packages that benefit Morro
Bay and Hearst Castle State Parks. Volunteer vacations have tremendously gained in popularity
as people are not only looking to visit scenic places, but to give meaning to their travels.
Volunteer vacations offer this experience as they mix meaningful restoration work in the
country’s national and state parks with sightseeing and entertainment. Ideally, the packages
were to bring Nature Corps participants to San Luis Obispo for stays Monday through Friday and
were placed in the shoulder months in alignment with the TBID’s goals. In 2013-14 the Nature
Corps team moved forward with Rosetta to realign their brand and website to better serve the
guest in an effort to return results for the TBID. The updates drew great interest and finally
resulted in one major group booking in February of 2014.
In 2013-14 was the second year for a new program with the Chamber of Commerce to provide a
telephone assistance and hotel availability program exclusively for the TBID hotels and guests. In
2013-14, the Chamber was able to refer TBID properties over 2000 times and made 100%
contact with the TBID properties, either by phone or email, to gather availability information.
Also launched this past year was a phone line tied to a specific and dedicated phone number
that serves as a response tool to the TBID’s online advertising efforts and website presence- 1-
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12 TBID Annual Report 2013-14
877-SLO-TOWN. The phone number creates the option for a
‘real’ planning experience, namely connecting with someone to
talk to and answer questions. The staff person only recommends
TBID properties through that phone line. The telephone number,
1-877-SLO-TOWN, is a separate line that rings into the Chamber
and is for TBID use only. During the first year of the program,
119 calls were received. Increased visibility of the phone number
and greater market penetration has generated significantly more usage; the line received 479
calls through the end of the fiscal year.
The City of San Luis Obispo has contributed to the marketing efforts of the
San Luis Obispo County VCB now Visit San Luis Obispo County for many
years. Traditionally, this payment came out of the Community Promotions
program overseen by the Promotional Coordinating Committee. Due to the
changes within Community Promotions since the creation of the TBID, the
Visit San Luis Obispo County funding shifted to the TBID because of the Visit
San Luis Obispo County’s marketing efforts promote the County of San Luis
Obispo as a tourist destination. In addition, since 2009-10 fiscal year, the
TBID Board has covered the expense of all membership dues for San Luis Obispo lodging
properties in order to create equal membership benefits for all San Luis Obispo hotels. The TBID
Board leverages the partnership with Visit San Luis Obispo County to promote San Luis Obispo
on a national and international level- beyond the local and state reach the TBID’s marketing plan
focus to achieve. The TBID’s investment in Visit San Luis Obispo County is also encompasses
group sales, film commission, countywide public relations, and countywide special events (like
Restaurant Month, Wine Month, Savor the Central Coast).
Tradeshows
In 2013-14, the TBID continued the participation in two consumer
shows, the Los Angeles and the San Francisco Travel and Adventure
Shows. With the historic success of the participation in those shows,
the TBID Board approved the participation in the new San Diego
Travel and Adventure Show. All three shows were a great success with
32,000 people attending the Los Angeles show, 16,000 visiting San
Francisco, and nearly 13,000 at the new San Diego based show. In
addition to the direct contact made at the booth to excite people
about travelling to San Luis Obispo, staff promoted upcoming events,
the ShareSLO campaign and blog, and distributed hotel and
destination information. This year the TBID also partnered with Hearst
Castle which generated increase interest in the booth. In total, the
three shows garnered nearly 2,500 new subscribers to the newsletter.
Events Promotion
In 2013-14, the TBID invested in several high profile events and provided the seed money
needed to establish them in San Luis Obispo. One of the stipulations for funding is exclusivity for
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13 TBID Annual Report 2013-14
San Luis Obispo lodging and the events are required to actively promote stays in TBID member
hotels.
Jazz Festival – May 17, 2014
In May 2014, the first annual SLO Jazz Festival was hosted in
Mission Plaza. This particular event had been in development for
multiple years; however lack of funding had made it impossible to
produce. Based on the organizers response to the TBID’s request
throughout those previous years, in 2014 the event was finally held
for the first time. The event attracted over 1500 attendees of which over 17% were from out of
the area. In addition the event generated $1.5 million in economic impact.
SLO Marathon – April 25-27, 2014
The San Luis Obispo Marathon, half
marathon and 5K had another
exceptional year in 2014. The event
continues to make a national
presence in the running industry and
is on the list of many runners as
“must do” race. Race weekend saw nearly 4300 athletes participate in five races. The 2014
Economic Impact for the community was $3.28 Million. Over three years, the SLO Marathon has
created $8.49 Million in Economic Impact. In a survey conducted of 2014 participants, 92% rated
the SLO Marathon very good or outstanding and 92% would recommend the race to their
friends. Also, 60% of respondents said they will very likely or definitely be back on a vacation
and 88% said they would recommend San Luis Obispo as a place to visit to their friends. Once
again, the San Luis Obispo Marathon, Half Marathon and 5K had impressive demographics with
60% Out-of-Market vs 40% In-Market Participation.
SLO Wine’s Roll Out the Barrels – June 19-23 2014
This was the second year the TBID has partnered with SLO Wine Country Association for the Roll
Out the Barrels event. The purpose of the partnership was to establish lodging promotions with
SLO Wine for San Luis Obispo hotels as well as provide SLO Wine the much needed funding to
expand the event advertising outside the area. In total the event attracted 1881 attendees and
about 30% were from out of the area. The survey results show that attendees from outside the
area attendee 3 events on average and stayed on average 3 nights in the area. Based on the Stay
in SLO $20 discount ticket promotion, 87 ticket packages were sold and approximately 130 track
able room nights were consumed at SLO TBID hotels.
Additional Events Promotion Support was given to the following Events:
SLO Concours
Cal Poly Open House
Remnants of the Past Vintage Show in November of 2013
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14 TBID Annual Report 2013-14
Sunset SAVOR the Central Coast
Central Coast Railroad Festival
2013-14 Data Comparison
Transient Occupancy Tax (TOT) 2007 - 2014
TOT 2013-14 versus 2012-13
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
2012-13
2013-14
Attachment 1
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15 TBID Annual Report 2013-14
Occupancy 2012-13 and 2013-14
Average Daily Rate (ADR) 2012-13 versus 2013-14
0 20 40 60 80 100
July
August
September
October
November
December
January
February
March
April
May
June
2013-14
2012-13
$- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00
July
August
September
October
November
December
January
February
March
April
May
June
2013-14
2012-13
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16 TBID Annual Report 2013-14
2013-14 Financial Statement
Time Frame Amount
TBID Budget July 2013- June 2014 $1,046,506
2012-13 Carry-Over /Excess Revenue $104,098
Fund Balance $100,000
Total Budget Fiscal Year 2013-14 $1,250,604
Unaudited Expenditure 2013-14
Rosetta Contract July 2013- June 2014 $600,000
SLO County VCB July 2013- June 2014 $104,997
Chamber of Commerce July 2013- June 2014 $ 25,000
STR Report $1,250
Central Coast Tourism Council $610
CA State Visitors Guide $2,500
Events Promotion $179,500
Tradeshows/ Conferences $ 27,500
Partnerships – Cal Poly, Nature Corps $ 103,500
Marketing/Advertising/Special Projects $20,789
City Administration/ Tourism Manager $100,500
Booking Engine- Helium $18,500
Strategic Plan Contractor/Expenses $25,000
Total Allocated Expenditure* $1,209,646
*This figure represents the total allocated expenditures. The actual unaudited spending in 2013-
14 was $1,175,402. The difference of $34,244 will be viable for carryover to the 2014-15
program budget.
Attachment 1
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Attachment 2
RESOLUTION NO. XXXX (2014 Series)
RESOLUTION OF THE CITY OF SAN LUIS OBISPO 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 2014-15
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 requested the City of San Luis Obispo establish
such a self-assessment improvement district in 2008; and
WHEREAS the San Luis Obispo Tourism Business Improvement District was
established in July 2008 and the ordinance creating it was adopted 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 this report was filed and approved by the City Council on October 7,
2014.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
San Luis Obispo as follows:
a) 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).
b) The assessment levied by the Tourism Business Improvement District shall be
used to promote lodging at the hotels within the district and administer a
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Attachment 2
marketing program that increases overnight hotel stays pursuant to the set
goals.
c) The assessment will be levied and allocated by the City o f San Luis Obispo.
d) 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.
e) The assessment shall be based on two percent (2%) of gross room rent.
f) New hotels shall not be exempt from immediate assessment.
g) 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 6 P.M., Tuesday, October 21,
2014, 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 the
continuation of the District, the boundaries of the District, or the furnishing of
specified types of improvements or activities will be heard.
i) 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 signed by any
person other than the person shown on the official records of the City of San
Luis Obispo as the owner of the business shall contain a description of the
business for which the protest is being made and, shall contain or be
accompanied by written evidence that the person is the owner or 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.
j) 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 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
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Attachment 2
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.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo that 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 (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 _____________________, 2014.
____________________________________
Mayor Jan Marx
ATTEST:
____________________________________
Anthony J. Mejia, City Clerk
APPROVED AS TO FORM:
_____________________________________
Christine Dietrick, City Attorney
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Tourism Business Improvement District
Meeting Minutes
Wednesday, September 10, 2014
10:00 am
City Hall- Council Hearing Room
990 Palm Street, San Luis Obispo
CALL TO ORDER: Chair Nipool Patel
PRESENT: Patel, Hutton, Wilkins, Walker, Conner, Adams, Pearce
STAFF PRESENT: Molly Cano, Tourism Manager; Lee Johnson, Economic Development Manager
Chair Patel called the meeting to order at 10:00 am
PUBLIC COMMENT
Shari Danoff spoke to the TBID Board about the protecting Highway 101 as a scenic route and the
removal of the billboard signs. She spoke as a member of the community group “Protect Scenic 101” or
PS101. She shared facts about the billboards and what has been done in other areas. It was requested that
the Board contact the group if they are interested in supporting the effort or if they have any questions,
comments, or suggestions. Photos of the billboards were distributed for the Board to review.
Rosemary Wilvert spoke to the TBID Board about the removal of the billboard signs. She shared that
PS101 is committed to the objective to retire billboards within SLO’s Highway 101 corridor. Among
other comments, it was stated that other states have banned billboards altogether. It was requested that the
Board contact the group if they are interested in supporting the effort or if they have any questions,
comments, or suggestions.
CONSENT AGENDA
ACTION: Moved by Conner/Hutton to approve the consent agenda.
Motion carried 7:0
PRESENTATIONS
1. MARKETING AGENCY QUARTERLY UPDATE
Representatives from BCA + StudioGood presented the quarterly update to the Board on the
marketing activities since July. The agencies highlighted the extensive work with the Marketing
Committee on the rebrand which will be presented later in the meeting. Studio Good spoke about the
updates on the website and the redesign and updates on ShareSLO.com. The agencies reported on the
metrics for the sites and mobile experience. BCA presented the booth plan and approach to SAVOR
focusing on showcasing ShareSLO and the mobile experience. Molly Kern from the Chamber
highlighted media coverage garnered over the recent months. BCA presented to upcoming media
buys for 2014-15.
DRAFT
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Tourism Board Improvement District Minutes Page 2
2. COUNTYWIDE TMD UPDATE
Chuck Davison from Visit San Luis Obispo County, presented an update to the Board of Visits SLO
County’s activities over the month. He informed the Board that he had been personally meeting with
the 38 properties in SLO and throughput the County . He informed the Board that he was not able to
present the update on the amount of petitions because the County was having an issue resolving the
weighted vote count. He mentioned that Pismo Beach City Council would hear the item at their
October 7 meeting. Morro Bay BID Board gave a dissenting recommendation however individual
properties in Morro Bay could sign the petitions and the item would still go to Morro Bay City
Council for consideration. Staff noted that SLO City staff were reviewing the weighted vote issue and
would be discussing options with the County.
BUSINESS ITEMS
1. TBID ANNUAL REPORT
The Board reviewed the FY 2013-14 TBID annual report for recommendation to City Council on
October 7, 2014. Staff discussed the report and asked for any feedback. The Board was pleased with
the results of the report. Pending the City Council’s approval of the report, the annual public hearing
for the TBID will be scheduled for the October 21, 2014 City Council meeting.
ACTION: Moved by Hutton/Conner to accept the 2013-14 TBID Annual Report for submission to
City Council.
Motion carried 7:0
2. EVENT SUBCOMMITTEE – FUNDING RECOMMENDATIONS
The committee received the 2014-15 funding recommendations for the event promotion agreements
from the members of the Event Promotions subcommittee.
ACTION: Moved by Conner/Hutton to conditionally accept the funding amounts recommended by
the subcommittee until the consideration at the joint meeting with the PCC. Recommended funding
amounts include: Mud Mash: $0; Cal Poly Open House $2500 with potential of additional $5000 for
an event on Saturday night/Sunday; SLO Marathon $30,000; Concours $8,000; SLO Jazz Festival
$13,000.
Motion carried 6:0:1
Abstention: Pearce
The Board also discussed the consideration of the support for SLO Wine on a new event once more
information was available from SLO Wine. The TBID Board would also like to invite Cal Poly
Orientation to present to the committee in an upcoming meeting for consideration.
3. MARKETING COMMITTEE - REBRAND UPDATE
The marketing committee and marketing agencies presented the recommendation for the new logo
and advertising concepts. The agencies went through several rounds of logo designs with the
members of the TBID’s marketing committee through the process. It was important for this new logo
to have an artisan feel and a unique, handcrafted look that reflects SLO. The agencies’ designers
hand-drew the script for San Luis Obispo to show whimsy and playfulness but contrasted it with the
structure of circle and typeface used for California which has the sense of sophistication. The colors
were inspired by the true colors of SLO using palettes derived from iconic San Luis Obispo images.
The clean simple design of the logo really makes San Luis Obispo the focal point. The dot of the “i”
in Obispo represents the sun and hills and the circle loosely represents a wine glass stain as a nod to
the areas robust wine culture. The design is extremely versatile as a logo. He ad campaign “It means
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Tourism Board Improvement District Minutes Page 3
something different here” is aimed at redefining what the drive markets of LA and the Bay Area think
of negative words like “rush hour” or “crowded”. The Board discussed the logo and campaign and
was very happy with the outcome.
ACTION: Moved by Adams/Hutton to adopt the new logo design and ad campaign as present by
the marketing agencies and begin the application.
Motion carried 7:0
4. 2013-14 FUND BALANCE UPDATE
Staff presented to the Board the end of the year result for the TBID collections of the fund balance of
$70,000 from the 2013-14 fiscal year. The Board discussed having these funds added to the general
unallocated line item within the Board’s program budget. This will increase the contract services
portion of the TBID’s budget with the city, so the TBID can begin allocating these dollars as
appropriate for upcoming projects.
ACTION: Moved by Conner/Hutton to move the remaining $70,000 un-appropriated funds into the
current TBID operating budget.
Motion carried 7:0
COMMITTEE COMMUNICATION
HOTELIER UPDATE
Commissioner Adams met with all the properties on his liaison list. His visit was welcomed and well
received by the properties.
Commissioner Conner asked staff to redistribute the liaison assignment list.
MANAGEMENT COMMITTEE UPDATE
Subcommittee members and staff reviewed the minutes with the Board.
PCC UPDATE
Commissioner Pearce reviewed the minutes with the Board of the PCC’s August meeting.
TOURISM PROGRAM UPDATE
Tourism Program Update:
Molly Cano presented the Tourism Program update on the following topics:
- PCC’s SLO Happenings RFP is currently open and scheduled to close on Friday, 9/19
- Working on the itinerary details for the upcoming travel trade FAM trip- UK SuperFAM:
September 29 & 30- Luxury pillar
- Continuing to work with the Chamber on the Visit California media requests:
o two Italian journalists for 23rd of September to 8th of October in assignment from
7 media outlets to write articles about California
- Gearing up for SAVOR
o Savor 20% off promo with all SLO City hotels
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Tourism Board Improvement District Minutes Page 4
o Main event participation
- Reminder: ShareSLO Mixer – 9/11 from 4-6 at StudioGood
Meeting adjourned at 11:15 am
Attachment 3
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