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Home My WebLink About10-21-2014 PH1 Annual Public Hearing for 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 PUBLIC HEARING FOR THE TOURISM BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION 1. Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the citywide Tourism Business Improvement District. 2. Determine whether a legally sufficient protest is made. 3. If no legally sufficient protest is made, adopt a resolution affirming the continuation of the San Luis Obispo Tourism Business Improvement District, setting forth the basis for the assessment, and levying the assessment upon hotels in the district for fiscal year 2014-15. DISCUSSION Background On October 7, 2014, the City Council reviewed and approved the Tourism Business Improvement District (TBID) board’s annual report pursuant to Municipal Code Section 12.42.060 (Attachment 1 – Council Agenda Report). The Municipal Code further requires that, after the approval of the annual report, Council shall adopt a resolution of intention to levy an annual assessment for that fiscal year and schedule a public hearing to receive any written or oral protests against the district. Resolution No. 10463 (2014 Series) setting such a hearing was adopted on October 7, 2014 (Attachment 2). Council Action: Public Hearing and Resolution As set forth in Sections 36524 and 36525 of the California Streets and Highways Code and San Luis Obispo Municipal Code Section 12.42.060, the Council has the ability to continue the citywide TBID at the public hearing, unless oral or written protests are received from City hoteliers that will pay 50% or more of the proposed assessments. Under Municipal Code Section 12.42.060, protests are weighted based upon the annual assessment for the prior year by each hotel. Staff will have assessment information available at the meeting, but for privacy reasons, this information is not made public before or at the meeting. In the event that a negative protest occurs, no further proceedings to continue the levy of assessments for that fiscal year shall take place. At the conclusion of the public hearing, if no or insufficient protest is received, Council may then adopt a resolution affirming the continuation of the San Luis Obispo Tourism Business 10-21-14 PH1 PH1 - 1 CAR-TBID 2014 Annual Public Hearing Page 2 Improvement District, setting forth the basis for the assessment, and levying the assessment upon hotels in the district for fiscal year 2014-15. Such a resolution is provided as Attachment 3. FISCAL IMPACT According to the City’s Financial Plan, the TBID is projecting revenue for 2014-15 of $1,259,060, which is intended to be used for tourism marketing and promotion as outlined in the TBID Strategic Plan. ATTACHMENTS 1. Council Agenda Report – October 7, 2014 2. Resolution of Intention No. 10572 (2014 Series) 3. Resolution confirming the TBID and levying the assessment T:\Council Agenda Reports\2014\2014-10-21\Annual Public Hearing for the TBID (Codron-Cano) PH1 - 2 City 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 B2 Attachment 1 PH1 - 3 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 Attachment 1 PH1 - 4 Attachment 2 PH1 - 5 Attachment 2 PH1 - 6 Attachment 2 PH1 - 7 Attachment 3 RESOLUTION NO. _________________ (2014 Series) RESOLUTION OF THE CITY OF SAN LUIS OBISPO DECLARING THE BASIS FOR AND THE LEVY OF THE ASSESSMENT FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT, AND AFFIRMING THE ESTABLISHMENT OF THE DISTRICT. WHEREAS, the Parking and Business Improvement Law of 1989, 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 the San Luis Obispo Tourism Business Improvement District Law was incorporated into the Municipal Code under Chapter 12.42; and WHEREAS, the City Council appointed an advisory board to carry out the functions specified in Street and Highways Code Section 36530, and to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS the San Luis Obispo Tourism Business Improvement District Law and the Parking and Business Improvement Law of 1989 requires the advisory body to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS, such report was filed and approved by the City Council on October 7, 2014 WHEREAS, on October 7, 2014 the City Council adopted Resolution No. XXXXX (2014 Series) declaring its intention to continue the San Luis Obispo Tourism Business Improvement District in 2014-15; and WHEREAS, the City Council held a duly noticed Public Hearing on October 21, 2014 to allow for protests, as contemplated by Streets and Highway Code Section 36524; and WHEREAS, sufficient written or oral protest was not received from hotel businesses in the district which pay fifty percent or more of the assessment; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows: a) The establishment of Tourism Business Improvement District in the City of San Luis Obispo in accordance with the San Luis Obispo Tourism Business Improvement District Law, San Luis Obispo Municipal Code Chapter 12.42, and the California Streets and PH1 - 8 Attachment 3 Highways Code, section 36500 et seq. (Parking and Business Improvement Law of 1989) is affirmed. b) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer marketing programs that increase overnight lodging. c) The assessment shall be levied and allocated by the City of San Luis Obispo. d) The assessment shall to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, 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. 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 Mejia, City Clerk APPROVED AS TO FORM: _____________________________________ Christine Dietrick, City Attorney PH1 - 9 Page intentionally left blank. PH1 - 10