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HomeMy WebLinkAbout03/21/2006, AGENDA 4 A San, �!�115 4j" council aqlenba CITY OF SAN LUIS O B I S P O CITY HALL, 990 PALM STRE E Tuesday, March 21 , 2006 4:00 P.M. REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Dave Romero ROLL CALL: Council Members Paul Brown, John Ewan, Christine Mulholland, Vice Mayor Allen K. Settle, Mayor Dave Romero PLEDGE OF ALLEGIANCE 4:00 P.M. BUSINESS ITEMS 1 919 PALM PARKING/OFFICES BOND ISSUE. (STATLER/DOMINGUEZ—20 MINUTES) RECOMMENDATION: Adopt a resolution approving the issuance of lease-revenue bonds to assist in financing the 919 Palm parking/offices project. 2. MEETING OF THE CAPITAL IMPROVEMENT BOARD. (STATLER/DOMINGUEZ - 5 MINUTES) RECOMMENDATION: 1) Approve minutes of meeting held on April 5, 2005. 2) Elect officers for the Capital Improvement Board (President and Vice President). 3) Adopt a resolution approving the issuance of lease-revenue bonds to assist in financing the 919 Palm parking/offices project. 4) Adjourn to the next regular meeting. NCity Council regular meetings are televised live on Charter Channel 20. The City of San Luis Obispo is committed to including the disabled in all of its services, programs, and activities. Telecommunications Device for the Deaf (805) 781-7410. Please speak to the City Clerk prior to the meeting if you require a hearing amplification device. For more agenda information,call 781-7100, J' council agenda CITY OF SAN LUIS OBISPO �vvrcerr�`'A� CITY HALL, 990 PALM STREET Tuesday, March 21 , 2006 4:00 P.M. REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Dave Romero ROLL CALL: Council Members Paul Brown, John Ewan, Christine Mulholland, Vice Mayor Allen K. Settle, Mayor Dave Romero PLEDGE OF ALLEGIANCE 4:00 P.M. BUSINESS ITEMS 1. 919_PALM_PARKING/OFFICES BOND ISSUE. (STATLER/DOMINGUEZ-20 MINUTES) RECOMMENDATION: Adopt a resolution approving the issuance of lease-revenue bonds to assist in financing the 919 Palm parking/offices project. 2. MEETING OF THE CAPITAL IMPROVEMENT BOARD. (STATLER/DOMINGUEZ - 5 MINUTES) . RECOMMENDATION: 1) Approve minutes of meeting held on April 5, 2005. 2) Elect officers for the Capital Improvement Board (President and Vice President). 3) Adopt a resolution approving the issuance of lease-revenue bonds to assist in financing the 919 Palm parking/offices project. 4) Adjourn to the next regular meeting. ® City Council regular meetings are televised live on Charter Channel 20. The City of San Luis Obispo is committed to including the disabled in all of its services, programs, and activities. Telecommunications Device for the Deaf (805) 781-7410. Please speak to the City Clerk prior to the meeting if you require a hearing amplification device. For more agenda information,call 781-7100. Council Agenda Tuesaay, March 21, 2006 STUDY SESSION 3. TRANSPORTATION IMPACT FEE UPDATE. (STATLER/DOMINGUEZ— 1 HOUR, 30 MINUTES) RECOMMENDATION: 1) Review and discuss the update of the City's transportation. impact fee program. 2) Provide direction on key policy issues and direct staff to return at a subsequent meeting with implementing documents for Council approval. 7:00 P.M. PRESENTATIONS PRESENTATION BY SAN LUIS OBISPO VISITORS AND CONFERENCE BUREAU ON A BUSINESS IMPROVEMENT DISTRICT. (BIAGGINI 20 MINUTES) APPOINTMENTS Al. ANNUAL APPOINTMENTS TO ADVISORY BODIES. (15 MINUTES) ARCHITECTURAL REVIEW COMMISSION. (SETTLE/ROMERO) BICYCLE COMMITTEE. (BROWN/EWAN) CULTURAL HERITAGE COMMITTEE. (BROWN/MULHOLLAND) DOWNTOWN ASSOCIATION. (CASH) HUMAN RELATIONS COMMISSION. (MULHOLLAND/SETTLE) JACK HOUSE COMMITTEE. (EWAN/SETTLE) JOINT USE OF RECREATIONAL FACILITIES COMMITTEE. (EWAN/BROWN) MASS TRANSPORTATION COMMITTEE. (BROWN/EWAN) PARKS &RECREATION COMMISSION. (EWANBROWN) PERSONNEL BOARD. (MULHOLLAND/EWAN) PROMOTIONAL COORDINATING COMMITTEE. (SETTLE/BROWN) TREE COMMITTEE. (MULHOLLAND/EWAN) ZONE 9. (ROMEROBROWN) RECOMMENDATION: Approve the recommendations as submitted by the Council subcommittee for each advisory body. 3 Council Agenda Tuesaay, March 21, 2006 PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA(not to exceed 15 minutes total) The Council welcomes your input. You may address the Council by completing a speaker slip and giving it to the City Clerk prior to the meeting. At this time, you may address the Council on items that are not on the agenda or items on the Consent Agenda. Time limit is three minutes. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights(Gov.Code Sec.54954.2). Staff may be asked to follow up on such items. Staff reports and other written documentation relating to each item referred to on this agenda are on file in the City Cierk's Office in Room 1 of City Hall. CONSENT AGENDA The Consent Agenda is approved on one motion. Council Members may pull consent items to be considered after Business items. The public may comment on any item on the Consent Calendar. C1. AMENDMENT TO MINUTES OF FEBRUARY 21,2006,REGULAR MEETING, AND APPROVAL OF MINUTES OF FEBRUARY.28, 2006, MARCH 1, 20069_ SPECIAL MEETINGS; MARCH 7, 2006, REGULAR MEETING. (HOOPER) RECOMMENDATION: Waive oral reading and approve as presented. C2. HIGHWAY EASEMENT ACQUISITIONS BY CALTRANS FOR ROUTE 1. (WALTER/LYNCH) RECOMMENDATION: Accept an offer from Caltrans for the acquisition of a Permanent Highway Easement and Temporary Construction Easements as part of the Highway 1 (Santa Rosa Street) rehabilitation project, and authorize the Mayor to sign the agreements. C3. ADOPTION OF ORDINANCE NO..149.1 (2006 SERIES) AMENDING THE AGGRESSIVE SOLICITATION PROVISIONS OF CHAPTER 9.06 OF THE MUNICIPAL CODE AND ADDING CHAPTER 9.40 REGULATING THE USE OF PUBLIC BENCHES. (LINDEN/LOWELL) RECOMMENDATION: Adopt Ordinance No. 1491 (2006 Series). C4. USE OF UNALLOCATED.FUNDS FOR COMMUNITY PROMOTIONS. (STANWYCK/KISER) RECOMMENDATION: As recommended by the Promotional Coordinating Committee (PCC), allocate $6,000 to sponsor the San Luis Obispo Visitors and Conference Bureau's (VCB) Monday Night Awards Dinner for the 2006 Outdoor Writers Association Conference (OWAC). CS. ALLOCATION OF FUNDING FOR THE MAXINE LEWIS HOMELESS SHELTER. (BROWN/HAMPIAN) 4 Council Agenda — Tuesoay, March 21, 2006 RECOMMENDATION: 1) Allocate $30,000 from savings realized from the Mardi Gras Operations budget to provide emergency funding for the operation of the Maxine Lewis Memorial Shelter (the Shelter); and 2) Direct staff to work with the Economic Opportunity Commission (EOC), the County, and other stakeholders to resolve the critical long-term funding deficits facing the Shelter. PUBLIC HEARINGS 4. CONSIDERATION OF A TENTATIVE MAP TO FINALIZE A CONDOMINIUM CONVERSION FOR ONE HUNDRED SIXTY EIGHT MULTI-FAMILY RENTAL APARTMENT PROPERTIES AT 1017 THROUGH 1045 SOUTHWOOD DRIVE; (TR 217-05). (MANDEVILLE/DUNSMORE - 30 MINUTES) RECOMMENDATION: As recommended by the Planning Commission, adopt a resolution which approves the tentative tract map to allow the individual sale of 168 units at 1017 through 1045 Southwood Drive, based on findings and subject to conditions and code requirements. 5. PLANNING COMMISSION RECOMMENDATION TO APPROVE A CONSERVATION AND OPEN SPACE ELEMENT TO THE GENERAL PLAN AND RELATED GENERAL PLAN AMENDMENTS_ (GPA/ER 149-98). (MANDEVILLE/HOOK - 2 HOURS) RECOMMENDATION: Continue reviewing the March 2006 Draft Conservation and Open Space Element (COSE), starting with Chapter 8 — Open Space, and as recommended by the Planning Commission, adopt a resolution that: 1) approves a negative declaration of environmental impact, 2) adopts the proposed COSE (March 2006 draft) as modified by the City Council, and 3) amends the General Plan to maintain consistency with the new element. S. GENERAL PLAN AMENDMENT AND REZONE FROM NEIGHBORHOOD COMMERCIAL (C-N) TO COMMUNITY-COMMERCIAL SPECIAL. CONSIDERATIONS (C-C-S)_FOR PROPERTIES LOCATED AT 3210 THROUGH 3240 BROAD STREET (GP/BIER 78-05)-.CONTINUED FROM 2/21 AND-2128. (MANDEVILLE/DUNSMORE - 5 MINUTES) RECOMMENDATION: As recommended by the Planning Commission: 1) Adopt a resolution to approve amendments to the General Plan Land Use Element map to change the land use designation for the site from.Neighborhood Commercial to Community Commercial and approve a Negative Declaration (ER 78-05). 2) Introduce an ordinance to amend the Zoning Map from Neighborhood Commercial Special Considerations (C-N-S) to Community Commercial Special Considerations (C-C-S). 3) Adopt a resolution to approve a master use permit to allow a specific set of land uses for the Village Marketplace. 5 I Council Agenda Tuesaay, March 21, 2006 7. WATER REUSE PROJECT- CONSIDERATION OF PENALTYASSESMENT AGAINST PACIFIC MECHANICAL CORPORATION FOR VIOLATION OF SUBCONTRACTOR LISTING LAW. (MOSS/DISIMONE - 20 MINUTES) RECOMMENDATION: Assess a penalty in the amount of $6,801.44 against Pacific Mechanical Corporation, Inc. and deposit penalty in Water Reuse Project account. BUSINESS ITEMS 8. RELOCATION OF PUBLIC ART BENCHES TO EMERSON PARK. (STANWYCK/KISER — 10 MINUTES) RECOMMENDATION: 1) As recommended by the Parks and Recreation Commission (PRC) and the Architectural Review Commission (ARC), approve relocating the public art benches known as Community's Bridge to Emerson Park. 2) Accept the offer from San Luis Obispo Court Street LLC (Copeland Properties) to design, install and donate a bocce ball court for Emerson Park, subject to the City's review and approval process. 3) Accept the offer from Copeland Properties to purchase, install and donate a new piece of public art valued at $15,000 for the Higuera Street location, subject to completion of the City's approval process for donated public art. 4) Direct staff to work with Copeland Properties to resolve issues related to the placement of the planters in said location. COUNCIL LIAISON REPORTS (not to exceed 15 minutes) Council Members report on conferences or other City activities. Time limit-3 minutes. COMMUNICATIONS (not to exceed 15 minutes) At this time, any Council Member or the City Administrative Officer may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) ADJOURN. 6 ADVISORY BODIES ARCHITECTURAL REVIEW COMMISSION (ARC) The ARC generally meets the first and third Monday of each month. The meetings are held in City Hall in the Council Hearing Room at City Hall, 990 Palm St. and begin at 5:00 p.m. Call 781-7170 to confirm times and dates. BICYCLE ADVISORY COMMITTEE(BAC) The Bicycle Advisory Committee meets quarterly in March,June, September, and December. Call 781-7178 to confirm exact dates and times. CITY COUNCIL The City Council meets on the first and third Tuesday of every month. The meetings generally begin at 7:00 p.m. and are held at City Hall in the Council Chamber, 990 Palm Street. Call 781-7103 to confirm times and dates. CULTURAL HERITAGE COMMITTEE(CHC) The CHC meetings are held on the fourth Monday of the Month at 5:30 p.m. in the Council Hearing Room at City Hall, 990 Palm St. Call 781-7170 to confirm dates and times. DOWNTOWN ASSOCIATION BOARD OF DIRECTORS The Downtown Association Board usually meets the second Tuesday of the month at 7:30 a.m. in the Council Hearing Room located at City Hall, 990 Palm St. Call 541-0286 to confirm the date and time.. HOUSING AUTHORITY The Housing Authority meets the third Thursday of the month at noon in the Housing Authority offices located at 487 Leff St. Call 543-4478 to confirm dates and times HUMAN RELATIONS COMMISSION (HRC) The Human Relations Commission usually meets the first Wednesday of the month at City Hall in the Council Hearing Room, 990 Palm St. beginning at 5:00 p.m. Call 781-7251 to confirm dates and times. JACK HOUSE COMMITTEE The Jack House Committee meets the second Wednesday of the month at the Parks& Recreation Department, 1341 Nipomo Street, at 5:30 p.m. Call 781-7305 to confirm the dates and times. JOINT USE OF RECREATIONAL FACILITIES COMMITTEE(JUC) The Joint Use Committee meets the fourth Tuesday of each month at noon at the Ludwick Community Center located at 864 Santa Rosa Street. Call 781-7300 to confirm dates and times.. MASS TRANSPORTATION COMMITTEE(MTC) The Mass Transportation Committee meetings are held on call, generally on a quarterly basis. Call 781-7121 to confirm exact dates and times. PARKS AND RECREATION COMMISSION(P&R) The Parks and Recreation Commission typically meets the first Wednesday of the month in the Council Chamber, City Hall, located at 990 Palm St. and begin at 7:00 p.m. Call 781-7300 to confirm dates and times. PLANNING COMMISSION(PC) The Planning Commission meets the second and fourth Wednesday of the month at 7:00 p.m. in the Council Chamber, City Hall, 990 Palm Street. Call 781-7170 to confirm dates and times. PROMOTIONAL COORDINATING COMMITTEE(PCC) The Promotional Coordinating Committee meets the second Wednesday of each month at 5:30 p.m. in the Council Hearing Room at City Hall, 990 Palm St. Call 781-7123 to confirm the times and places. TREE COMMITTEE Tree Committee meets at 5:00 p.m. on the fourth Monday of the month at the City s Corporation Yard located at 25 Prado Road. Call 781-7220 to confirm dates and times. Council Agenda _ Tuesuay, March 21, 2006 PUBLIC COMMENTS ON AGENDA ITEMS: You may address the Council on any item described in this agenda by completing a speaker slip and giving it to the City Clerk prior to the meeting. The Mayor will invite public comments before the Council takes action on each item. (Gov. Code Sec. 54954.3(a)) Your speaking time is limited to three (3) minutes,(CC&P Sec.1.3.7) CITY COUNCIL PROCEDURES FOR PUBLIC HEARINGS: The Mayor will announce each item and thereafter, the hearing will be conducted as follows: 1. City staff will present the staff report and recommendation on the proposal being heard and respond to questions from Council 2. The Mayor will open the public hearing by first asking the project applicant/appellant(or his/her representative)to present any points necessary for the Council,as well as the public,to fully understand the proposal. 3. The Mayor will then ask other interested persons to come to the podium to present testimony either in support of or in opposition to the proposal. 4. Finally, the Mayor will invite the applicantlappellant (or his/her representative) back-to the podium to respond to the public testimony, if appropriate. The Mayor will then close the public hearing and limit further discussion to the Council and staff prior to the Council taking a vote. RULES FOR PRESENTING TESTIMONY AT A PUBLIC HEARING: City Council meetings often involve highly emotional issues. It is important that all participants conduct.themselves with courtesy, dignity and respect. All persons who wish to present testimony are asked to observe the following rules: 1. Speakers are asked to submit speaker slips to the City Clerk. 2. If you have filled out a Speaker Slip,the Mayor will call you to the podium. 3. Speakers shall address the Council from the podium after giving his/her name and city of residence. Speakers shall direct their comments to the Council, not the audience. 4. Speakers shall limit comments to three minutes. The Mayor, after all others have spoken, may allow additional brief comments from speakers who have already commented on the same agenda item. 5. If testifying as paid representatives, as defined in the Municipal Code speakers shall register as a Municipal Advocate and shall preface their comments by identifying themselves as Municipal Advocates (§2.64.020 & §2.64.050&§2.64.070). 6. Applicants,appellants or applicant representatives desiring to speak shall: a. Submit speaker slips to the City Clerk (available on a plastic rack at the entrance to the Council Chamber). b. Shall be permitted to speak first during the public comment portion of the public hearing for not more than ten minutes. c. Address the Council from the podium after giving their name and address, and/or the name and address of the applicant/appellant they are representing. If the applicant/appellant's representative is a paid Municipal Advocate,they shall comply with Number 5 above. 7. If you challenge an issue in court, you may be limited to raising only those issues you or someone else raised at this public hearing as described above, or in written correspondence delivered to the City before or during the public hearing. CORRESPONDENCE TO COUNCIL: Written comments on agenda items are encouraged and are most effective if presented at least one day prior to the meeting. Note: Correspondence to Council received.after5:00 p.m. on the day of the Council meeting regarding agenda items may not be distributed until the following day. 2 _ Page 1 of 2 Allen Settle-SLO County BID .From: 'Bob Griffin"<bgriffin@sterlinghotelscorp.com> To: "Allen Settle"<asettle@slocity.org>, "Christine Mulholland"<cmulholland@slocity.org>, "Dave Romero" <dromero@slocity.org>, "John Ewan"<jewan@slocity.org>, "Paul Brown" <pbrown@slocity.org> Date: 3/20/2006 5:07 PM Subject: SLO County BID Honorable Mayor and Members of the City Council On Tuesday,March 21 you will hear a presentation by Jonni Biaggini regarding the formation of a Business Improvement District in San Luis Obispo County for the purpose of creating a fund to be used for Tourism Promotion.The purpose of this email is to express to you my support for such a program. Over the years you have all shown your understanding of and support for this most critical segment of our economy.You have made increasing Transient Occupancy Tax a major city goal,and now have the opportunity to help to create.a vehicle that will be a major step in sustaining that growth for years to come. While we all acknowledge that we live in a most wonderful part of California,many people do not know of all the things we offer to the tourist as a destination,and many still see San Luis Obispo as a roadside stop on the way to either San Francisco or Los Angeles.In recent years there have been terrific strides made in educating the public as to the wonders of our slice of the Central Coast,but we are up against formidable competition,most notably from Santa Barbara and Monterey counties, but also the Napa-Sonoma area and the San Diego area.All of these competitors have tourism marketing budgets far greater than ours. With a BID already formed in Sonoma and others in process in Monterey and the Santa Ynez Valley,we are seeing a trend all over the state to increase tourism marketing budgets through this vehicle.This self assessment by members of the hospitality community is not dissimilar to the 1997 Tourism Marketing Act which is administered statewide by the California Tour and Travel Commission and has been greatly successful in promoting California,both nationally and internationally. ,There are 3,750 new hotellmotel rooms on the drawing boards to be built in the County,with 450 right here in San Luis Obispo.Maintaining our Occupancy,Average Daily Rate,and Profitability levels will require that we develop new markets, new customers,and steal guests from our competition...not just trade back and forth between our local hostelries.We must find new people to come here!The only way to do that is through promotion and that takes money. We already have a highly successful BID in place with the Downtown Association.This proposal is a much more complex undertaking which will require you to make decisions that will have great impact on our city's economic future.I urge you to direct your staff to thoroughly investigate the concept,its proposed implementation, its effect on San Luis Obispo,and most importantly the consequences of not implementing such a plan,and then to report back to you.I feel certain you will then see the merits of a BID and will go forward as-a participant with other cities throughout the County. My apologies for not appearing in person as a supporter,but I have another long-standing commitment that I must chair at the same time you will all be meeting Tuesday night. Thank you all for your consideration. RECEIVED CO�iJGIL c`CDD LIR jATTOPNEY cao FIN DIR MAR 21 2006 ACAO 7FIRE CHIEF RED FILE 1'1PW DIR SLO CITY CLERK CLERK/ORIG POLICE CHF MEETING AGENDA �DFPTHEADs �RECDIR DATEITEM # /� ��" � — FeUTILDIR uo GLE2� file://C:\Documents%20and%2OSettings\slouser\Local%2OSettings\Temp\GW)000O1.HTM 3/21/2006 Page 2 of 2 C) Robert L.Griffin President Sterling Hotels Corporation 3220 South Higuera Street,Suite 103A San Luis Obispo,CA 93401 Phone: 805-546-9388 Fax: 805-546-9042 C CI file://C:\Documents%20and%20Settings\slouser\Local%20Settings\Temp\GW}000O1.HTM 3/21/2006 Page 1 of 1 SLO Citycouncil -BID From: krugerbenz@calinet.com To: <slocitycouncil@slocity.orp Date: 3/20/2006 5:26 PM Subject: BID Just a line to let you know that I'm in favor of the BID.which I understand you are going to discuss tomorrow evening, to try to increase the number of tourists that visit our city. Gene&Sally Kruger Bridge Creek Inn 5300 Righetti Rd., San Luis Obispo,CA 93401 (805)544-3003 info@bridgecreekinn.com FAR E D 2005 LERK RED FILE MEETING AGENDA DAT = / ITEM # IP- COUNCIL Cr 9 CDD DIR 1�1 CAO $FIN DIR 9ACAO R-FIRE CHIEF gaATTORNEY $PW DIR Lji�CLERK/ORI© POLICE CHF 13 DEPT HEADS REC DIR PrB El UTIL DIR E� 7�/BcwE HR DIR file://C:\Documents%20and%2OSettings\slouser\Local%2OSettings\Temp\GW}000O1.HTM 3/21/2006 Page 1 of 1 SILO Citycouncil -Proposed Tourism BID From: <SLOCAI @aol.com> To: <slocitycouncil@slocity.org>, <dromero@slocity.org>, <asettle@slocity.org>, <jewan@slocity.org>, <cmulholland@slocity.org>, <pbrown@slocity.org> Date: 3/20/20061:23 PM Subject: Proposed Tourism BID RECEIVED CC: <ionnib@sanluisobispocounty.com> Hello all, $LO CITY CLERK I wanted to insert a quick email into all of your busy schedules to inform the council that the Embassy Suites Hotel in San Luis Obispo,its owners and management are in favor of the proposed tourism BID. We strongly feel that with the arrival of new supply into the market, and the historically static occupancy percentage average in our city and county,that succinct and concentrated marketing campaign is imperative to the continued success of all tourism related entities in this area. I look forward to seeing all of you tomorrow evening at the City Council meeting tomorrow. Shawn Shawn J.Milburn General Manager Embassy Suites Hotel 333 Madonna Rd San Luis Obispo,CA 93405 805-549-0800 ext 585 805-549-9138 fax 805-431-0590 cell www.staysio.com Another Beautiful Property Owned and Operated by Windsor Capital Group,Inc. www.wcghotels.com ad �c F] COUNCIL Q CDD DIP CAD FIN DIR �a ACAO 9 FIRE CHI_ RED FILE QATTORNEY &PW DIR MEETING AGENDA 6i CLERK/ORIG [ POLICE Cr-, 0 DEPT HEADS 46 REC DIR I DATE TEM kji2nC I UTIL �2i /Ru it 8 HR Ci 'x file://C:\Documents%20and%2OSettings\slouser\Local%20Settings\Temp\GW}00001.HTM 3/20/2006 Page 1 of 1 SLO Citycouncil-County BID RECEIVED From: "Nipool Patel"<nipool@gmail.com> MAR 2 0 2006 To: <slocitycouncil @ slocity.org> Date: 3/20/20062:39 PM SLO CIN CLERIC Subject: County BID I would like the Council to know that the Comfort Inn&Suites Lamplighter is in full support for the BID. Nipool Patel Comfort Inn&Suites Lamplighter 1604 Monterey Street, San Luis Obispo,CA 93401 www.comfortinnslo.com �c �rK L ff-COUNCIL )5 CDD DIR RED FILE » cao FIN DIR MEETING AGENDA ErACAO LiFIRE CHIEF ® ATTORNEY t PW DIR DATE.3 / ITEM # &eCLERK/CRIG POLICE CHF [[]� DEPT HEADS REC DIR ® -RIA CT7 UTIL DIR F CAL, w Ct.c.el� file://C:\Documents%20and%2OSettings\slouser\Local%2OSettings\Temp\GW IOOOO1.HTM 3/20/2006 06C% , cell- March ^�'`AAhs-�;� W' March 20, 2006 San Luis Obispo City Council 990 Palm Street San Luis Obispo, CA 93401 Dear Council Members: We the undersigned strongly support the establishment of the San Luis Obispo County Tourism BID as the best way to increase tourism promotion funding for our area. We hoteliers rely on the tourism promotion efforts of a number of organizations. The success of all these programs will be enhanced if we can strengthen countywide tourism promotion efforts through the San Luis Obispo County VCB and the BID. The City directly benefits from these efforts because of the large amount of TOT dollars that are generated. It is becoming more and more apparent that our local government entities will not be able to fund tourism promotion to the level that will be required to meet the challenges that the lodging industry faces today. Because of a major increase in the number of new rooms projected to be built and the increase in competing destinations' marketing efforts, our county must respond with strength. The lodging industry and SLO County VCB have created a program that will help us meet this challenge. The SLO County Tourism BID will guarantee a stable and larger funding source to market our county and compete effectively with Santa Barbara and Monterey Counties, that have historically more money for tourism promotion. The BID would be in existence one year at a time. San Luis Obispo County will be joining the current trend to establish BIDS for tourism promotion in California. Lake Tahoe, Sonoma County, San Mateo County, West Hollywood, Huntington Beach and Carlsbad are just a few who have already taken this opportunity to strengthen their important hospitality industry. Monterey County is in the process. Establishing a tourism BID will only be paid by the lodging, but everyone in the City will benefit. Please allow the lodging industry to determine the best way to compete grow the pie for all of us. It's only fora year! Since r Per Fax Embassy Suites :'Quality. - Holiday Inn Express Per Fax La Cuesta G&fdblMnlamplighter San Luis Creek Lodge -� Per Fax Garden Street In BW Royal Oak B Somerset Inn Per Fax Per Fax Per Fax Vagabond Inn Coachman Inn Econolodge n Per Fax Homestead Motel mads Inn each Tree Inn � ,� _. Same as Coachman_Jnn Per Fax Suite Edna, Old Edna San Luis Inn & Suites Bridge Creek Inn The S , dtarium 03/21/2005 17:27 805544' `5 BW ROYAL OAK PAGE 63/21/2606 05:39 80', ,9498 SLOCVCB i rABc March 20,2006 San Luis Obispo City Council 990 Palms Stt= San Luis Obispo,CA 93401 Dear Council Membem: We tale undersigned strongly mppon the establishment of the Sia Luis Obispo County TourisYr, B.-ID as the beltway to increase tourism promotion funding for our area. We hoteliers rely on the tourisztt promotion r,ffor g of.a number of otBenizations. The success o all these ptoVMS will be enhanced if we can samgthen countywide tourism proraotiorr efforts through the San Luis Obispo County VCB and the BID. The City directly bene{tts franc these efforts because of the large araom-A of TOT dollars that are generated. It is becoming more and more appar,..M that our total government entities will trot be able to funs tourism promotion to the level that will be required to meet the challenges that �.r..r. faces today. Because of a major itmarasc in the number of new rooms pmj�ted the a lodging dging indbuilt and �: increase in competing destinations'marketing of cots,our county must respond with strength. The lodging industry and SM County VCB have created a program that will help us meet chic challenge The SLO County Tourisiu BIDwall guarantee a stable and larger Amding source to market oar county and compete effectively with Santa Barbara and Monterey Counties,ftt'rave historically more money for tourism promotion, The BID would be in existence one vent ata time. San Luis Obispo County will ba joining the current trend to establish BIDS for hiaziszu.promotio in Lake Tahoe, Beachath andd CSonoma County,San Mateo County,West Hollywood,Huntington arlsbad are just a few who have already taken this appottuAity to strengthen shell important hospitality industry, Monterey County is in the process. Establishing a toraism,B.TD will only be paid by the lodging,but everyone in the City will benefit. Please allow the lodging industry to determine the best way to compete us.it's only for a yearl grow the pie fat 21i Of Sincerely, Embassy Suites ,,•� � s Holiday Inti Eapress LaCucsta Tnn I Per Fax Inn/L lighter f San Luis Creek Lodge Gorden S oyal OakBW Somerset Inn 03/21/2005 17:08 805544' '2. GENE & SALLY KRI`=.R PAGE 0- 83/2112086 06:21 8055435499 SLOCVCB PAGE OT Per Fox Per Fax Per Fax Ya�ebond Itm Coaclmw Ian E=ok)* Per Fax Hom=taad Motel ad_ ada TTM c*ffi TTCC Ina 9 � Sam® as Catebmsrs:ZtuUW fj Suft Mm Old Edna San Leis bcm Suites Sri Irn L� The S~izm - -- ON!ar. 2?. 20065 4:34PMee554?-49e sLocvcs � No. 7838 . a March 200 2006 San Luis Obispo City Council 990 Palau Street San Luis Obispo,CA 93401 Dear Council Members We the undersigned strongly support the establishment of the San Luis Obispo County Tourism, BiD=the best way to increase tourism promotion funding fbr our area. We hvteliem rely on the tourists promotion efforts of a number of organizations. The success of all these programs will be entranced ifwe can strengthen cowitywide tourism promotion effort, through the San Luis Obispo County VCB and the HID. The City directly benefits from fl-,ese. efforts because of the large amount of TOT dollars that are gcncrated. It is bccon I more and more apparent that our local government entities will not be able to&-r<v tourism promotion to the level that will be required to meet the chaUmSes that the lodging indunrr faces today. Because of a major increase in the number of new rooms projected to be built anal increase in competing destinations'marketing efforts,our couirtymust respond with stra,gtb. The lodging industry and SLO County VCB have created a program that will-help as rreet this challenge. The SLO County Tourism BID will guarantee a stable and larger.fuadi.ng.so=Q to market our county and compete effectively with Santa Barbara and Monterey Counties, that hc;vc historically more money for tourism promotion.The BID world be in existence one Year at a timo< San Luis Obispo County will be joining the current trend to establish BIDS for tourism p m.t tt e in California. Lake Tahoe,Sonoma County,San Mateo County,West Hollywood,Huntington Beach and Carlsbad are just a few who have already taken this opportunity to strengthen their inpor tart hospitality industry. Monterey County is in the process, Establishing a tourism BID wM only be paid by the lodging,but everyone in the City will beaexSf Please allow the lodging industry to determine the best way to compete grow the pie for a. c: ws-It's only for a year! Sincerely, ,> Embassy Suites oliday Exp;est it i per Fax La Cuesta Ian Inn/Lamplighter • an Luis Creek.Lodg- t � _K OaFden S L BW Royal Oak B S`om`'=ern-et 03/21/2006 03:08 805541' 'S � PAGE ?'. March 20, 2006 San Luis Obispo City Council 990 Palm Street San Luis Obispo, CA 93401 Dear Council Members: We the undersigned strongly support the establishment of the San Luis Obispo County Toluisr_ 131.D as the best way to increase tourism promotion funding for our area. V e hoteliers rely on the tourism promotion efforts of a number of organizations. The success ail these programs will be enhanced if we can strengthen countywide tourism promotion efforts through the San Luis Obispo County VCB and the BID. The City directly benefits from,these efforts because of the large amount of TOT dollars that are generated. it is becoming more and more apparent that our local government entities will not be able to fund tourism promotion to the level that will be required to meet the challenges that the lodging indas- faces today. Because of a major increase in the number of new rooms projected to be milt and increase in competing destinations' marketing efforts,our county must respond with strength. The lodging industry and SLO County VCB have created a program that will help us meet this challenge. The SLO County Tourism BID will guarantee a stable and larger funding source to market our county and compete effectively with Santa Bambara and Monterey Counties,that hart historically more money for tourism promotion. The BID would be in existence orae year at a ti.—mc. San Luis Obispo County will be joining the current trend to establish BIDs for tourism pro mo:i.o in California. Lake Tahoe,Sonoma County,San Mateo County, West Hollywood,Hunting on Beach and Carlsbad are just a few who have already taken this opportunity to strengther.their important hospitality industry. Monterey County is in the process. Establishing a tourism BID will only be paid by the lodging,but everyone in the City wii l nenefj Please allow the lodging industry to determine the best way to compete . grow the pie for a°r :�:_ us. It's only for a year! Sincerely, En7.basSy Suites uali.. Roliday1m, Erpm s . f' i La Cuesta Ittn ampligbter ! San 's Cr lc Loo, . Carden Street inn BW Royal Oak BW Somerset L-1:, --- 03/17/2006 12:25 8055477-'7 LAMPLIGHTER INN AND PAGE c12 ILT► 1 M t`L� 7 SIN 1 �ias- -tet-✓ ` ,\Cv� 1N.1 vwr.var,) la.s - �tc Lox—i f�a-3r^avp ,^�c"L2 QUOTE OF THE DAY `Recovery for the individuals we serve involves our acceptance of.the fact that any person can affect his own ability to learn and to alter his own behaviors.'—Nathan Spooner, Groves Beach 36 THE TRIBUNE TUESDAY., FEBRUARY I 4 , z, 0 0 6 - SANLulS0BISP0.00M I I disagree with her views.She set the tone for the rest of the meeting.It became angry i and rude— and a total waste of time for sincere people who came for a meaningfid. experience and helpful sug- gestions. She needs to be reminded . i . that hers was the lone vote against the project on the council,so she is not!;peak 1 _ . _.. . � - u►g for it,and certainly not for property owners'rights. . Carolyn Garver Mulholland set the tone San Lj.0 Obispo I attended the Marketplace meeting.The purpose of it i was to give fresh ideas and suggestions.It started out well— many interesting and diverse ideas were presented. Mr.Lenthall was very Igood, polite and attentive. Mid-meeting,Christine .. Mulholland appeared she was not there for suggestions. She started right away insult- ing nsultmg Mr.Dalidio and his con- sultants.Calling his project a "sham"and Mn Lenthall's _ ... . .. .... . .._ . committee also,and all who t /V !Vvk� no+e+.n�a em sv. 11 _._._ .......... ..................................._ - "- MSL _ _ —-- --- -------c-.zip -- I IT of I i I ;fir 0 El ,1 1 I 16, �Ar I \\/ / m / m U1 k . •oa �I 1 1� ^�\d O � W \,\\ I 0 O II ''��• ,1 \\\`• � � � � �\� Oaf I cu _--_-L,r7�ri= -__ �, CL LIZ g LU _~�7-'~ -1' --- yO ••.\ fnliwi...p� � � I a ui 49 r 8 > y (De' 0~C LL C O- ,0 10 U U fV `^+�•{ rocs SaLahwo•e Daae San Luis Obispo,CA 93iM am 5132992 Fa WS)%3-2997 Condominium Conversion Improvements Parkwood Village Apartments is scheduled for conversion to market rate condominiums. As part of the conversion process,physical improvements to Parkwood Village have been scheduled for the common area,patios and parking lots. Improvements are scheduled to begin soon after the City completes their review and approval process.After this"plan check"is completed,The Parkwood construction manager will work with contractors to develop the schedule and construction phasing.The contractor will then develop a traffic control map to insure resident egress during the phased construction. During this period,all residents will be given notice in advance of scheduled work.Work will be conducted Monday thru Friday,between the hours of 8:00 A.M. and 4:00 P.M. Residents will be notified in advance for any work required to be completed off hours. Exterior site improvements include but are not limited to: • Additional carports. • Repair site lighting. • Storage closets(in parking lot) • Repair/repaint exterior railings. • Reconstruct/stripe parking lots. • New fencing at patios. • Sidewalk repair. • Landscaping repair or replanting. Interior improvements to the market rate condominiums at the time of sale will include a base finish package as well as the Premier fmish package(for an additional cost). Parkwood is working with their interior designer to complete this design palette and for owner selection in the near future. Interior finishes package include but are not limited to: NEW • Carpet and Base • Scrape and Re-finish Ceilings • Vinyl • Cabinets and Counter Tops • Paint • Doors and Hardware • Plumbing Fixtures and Hardware • Electrical Finish and Fixture All interior improvements will be completed at the close of escrow 1045 Southwood Drive San Luis Obispo,G 93401 (MR 543-2992 Fax(805)5412997 February 24,2006 Important Notice Condominium Conversion Improvements Dear Parkwood Resident, As you know,the Parkwood Village Apartments have been scheduled for conversion to market rate condominiums. As part of the conversion process,physical improvements to Parkwood Village have been scheduled for the common area,patios and parking lots. This improvement process is scheduled to begin within approximately 30 days. During this construction period,all residents will be given notice in advance of scheduled work.Work will be conducted within the normal workday week between the hours of 8:00 A.M.and 4:00 P.M. Residents will be notified in advance for any work required to be completed off hours. We apologize in advance for any inconvenience the improvement work might cause our residents. If you need any additional information regarding these scheduled improvements,visit our Parkwood Village Management office. Site improvements include: 1. Additional carports. 5. Repair site lighting. 2. Storage closets(located in parking lot). 6. Repair/repaint exterior railings. 3. Reconstruct/stripe parking lots. 7. New fencing at patios. 4. Sidewalk repair. 8. Landscaping repair or replanting. Parkwood Condominium Inc. Construction Phase Map :_- iTl En--d Patios- _ ------ Carports- — - A. ^, f3 IA a _ ��.Wili__r-t.i'� ii�:�.,.,.�"fr •/ i`,� ��`L, -4 1, Parkwood Improvement Construction Phase Plan ----------- -------- 1 � /� V I E x � r 96 go go It .04 i;t fix(• l%l_ �-" t ,,` .. �v •'� t'` 11 ,1 0, `coy ��1�, '� /1 � \ /, --- 1 Ilk 41 ' '�5 = std•a'ws- �( � ° 1 CL LLI O cc pr C-) -- _ N cuC CL O cu O c6 a_ 0 U M V`spuanalS g 9 E ------------- / ° \ ` 9i2 € 11011 / O e / O qJ S _ F m D Q ==7 Z W 2 Q W W O Q 3 _ _ _ _ _ _ mo.a...n� em e�n� I I ',1 l cr pl i '� I IilLilt II. .I _•1 l F\ I I1 � J q • J SLLn, 1_1 LJ L— R/�,,/� �� I p r p �, ' s A�; o--.x 1 II ��, R W ;y ° Al CL O 1 1 I \•� d / bI: _ � I ^� 70 11 � vii cu d S �1 =1'11 0'�• . :�i,'y�°L.am°•a \` __- T� �� ��-�.`.-- -t:,`11 F M LU •py. _ I t O rILL C C LL Co c O C \\ O lL C d O O O 0 N U U .j CONDITION OF APPROVAL 1. CONVEYANCE OF DONATED UNITS. Applicant shall convey to the Housing Authority title to the Donated Units, free and clear of all liens and claims securing monetary obligations (other than the lien for taxes not yet due and payable) and subject to customary closing costs and protected condominium costs, when both (a) there has been recorded in the Official Records of San Luis Obispo County a final tract map that subdivides the Property into condominium units,and(b)a Triggering Date has occurred. 2. RESTRICTION ON DONATED UNITS. Prior to (or in conjunction with)recordation of the above-described final tract map, there shall be recorded with respect to title to each of the Donated Units a deed restriction requiring that such Units be set aside, for a period of at least thirty (30) years, as affordable units to very low income families or persons consistent withthe City of San Luis Obispo Affordable Housing Standards. 3. DEFINITIONS.For purposes of this condition, the term: (a) "Applicant" means Southwood Project, a California limited partnership, and its successors and assigns as owner,of the Property. (b) "Donated Units" means thirty-four (34) condominium units situated on the Property. As outlined in Exhibit "A (c) "Housing Authority" means the Housing Authority of the City of San Luis Obispo,California. (d) "Property" means the real property and improvements located at 1017- 1045 Southwood Drive, San Luis Obispo,California. (e) "Triggering Date"means the date that is thirty (30)days after the date on which Applicant, its successors, and assigns sells the first condominium unit at the Property to a bona fide purchaser unrelated to Applicant or any partner or shareholder of Applicant. The existing regulatory agreement is currently in force and effect. 4. EXTINGUISHMENT OF REGULATORY AGREEMENT. At the recordation of the deeds conveying to the Housing Authority title to the Donated Units,the regulatory agreement will be extinguished and have no effect on the Property or the owner thereof with respect to any subsequent period. CAprogram files\qualcomm\eudom\attach\Condition of Approval v3.doc ti EXHIBIT"All Address 0 T , Sq Ft. Unit Sq.Foot Deck Townhouse .......... ............ 14, W Wn ;EEN-1— jo� W3 Wo ---i-------- Wa .......... v R7 Ift,ttt Tv, MIA- E,; .......... . Par ood ' e 1045 Southwood Drive, San Luis Obispo, Ca 93422 Dear Residents: Investment opportunities come and go, and these days, it is even harder to predict the financial success of many investments. Real estate, however, continues to outlast any long-term investment. Today is still a great time to consider buying a home. As residents of Parkwood Village you will have the first right of refusal to purchase your unit and realize the American dream of homeownership. My name is Karen Smith and I am a licensed real estate agent. Roxane Key and I are real estate specialist in the San Luis Obispo area. Together we have twenty two years of real estate experience to help you in the purchase of your condominium. We will be the on site real estate agents working on the Parkwood condominium project. There will be a sales office with posted office hours. Please feel free to come in and discuss with us the conversion status and the purchase of your unit. We will be happy to answer any questions or concerns you might have. I look forward to hearing from you in the near future. Sincerely, Karen Smith Realtor® Par ood • 1045 Southwood Drive, San Luis Obispo, Ca 93422 Committed to your needs The role of a real estate agent is to guide you through the buying or selling process, taking the time to make sure you understand every step of the transaction. We are absolutely committed to fulfilling your needs with the highest level of professionalism, expertise and service. Our commitment to your satisfaction is the foundation from which a solid business relationship is built. We realize that people do business with people they trust. We are interested in what is best for you, the client, and are committed to establishing a long-term relationship based on trust. We pride ourselves on being knowledgeable and staying current with changes in the industry that will affect the success of your transaction. You have worked hard to be able to purchase your home. We feel the responsibility to make those dreams a reality and pursue the right solution enthusiastically. • Enthusiasm working for you Helping people make one of their most important decisions is a serious responsibility, but something that we enjoy doing. This enthusiasm and hard work will benefit you and help reduce the stress and anxiety often associated with real estate transactions. • Established Credibility We have many years of experience and knowledge working in this industry. We can say with confidence that we'll get the job done right. Your best interests are our priority! Karen Smith Roxane Key Realtor@ Realtor@ PARKWOOD APARTMENTS I, WELCOME AND INTRODUCTIONS HASLO: Carol Hatley& Sandra Bourbon II. OPTIONS: Once the donation to HASLO has been completed, clients of H .SLO will have the options to continuing to rent a unit at Parkwood utilizing their voucher,use their voucher to move to another unit on the private market, or opt to purchase a unit. The most important thing to remember is that the option to purchase a unit does not need to happen immediately. A. Rent vs Purchase As mentioned, all.of HASLO's clients will have the option to continue to rent utilizing their voucher. This would mean that you would continue to pay the portion of rent as calculated under the program regulations. It would also mean that any repairs to the inside of your unit would be performed by HASLO staff. The option for homeownership needs to be carefully considered. The purpose of this session, as well as future sessions,will be to help you decide whether you are ready and/or able to be homeowners. Being a homeowner brings with it the responsibility for repairing anything that goes wrong with your home! This includes replacement of appliances, fixtures, carp ets, etc. For some households on fixed incomes, or that have other debt,the responsibility for these items are not things that can be readily paid for. Homeownership should NOT be a financial hardship. If it is,it may not be your best option at this time. In the case of Parkwood, or any complexes that are condominiums,there will be what's called a"Home Owner's Association'. The acronym is "HOA', and you will hear a lot about this. The HOA means that the monthly additional fee that you pay goes into a fund for upkeep and repairs to the exterior of your unit. That would include the roof, exterior painting, common areas, etc. But,when figuring your monthly debt-to-income ratio (more on this later),you would need to include the additional HOA fee in the calculation. The fee is approved by the Department of Real Estate ("DRE") and is anticipated to be$143 per month. III. RESTRICTED PURCHASE PRICE As part of the City's agreement for conversion to condofniniums,the units to be donated to HASLO will remain under the City's affordable housing guidelines. That means that they will be sold at an affordable price, as determined by the City. This calculation includes consideration of income levels and bedroom sizes. It also means that there will be a long term restriction for future sales of any unit,based on the established affordable price at the time of sale. Simply,it means that if you purchase your payment would equal$701.60. Adding in the other payments that are also necessary to figure; the following is an estimate of how your total payment might look: - Payment on Mortgage loan = 701.60 - HOA fee = 143.00 - Insurance = 50.00 - - Property taxes = 120.00 TOTAL PAYMENT = 1,014.60 (estimated) -Monthly income would need to be$2,540,with no debt, to accomplish a 40%debt-to-income ratio Example 2. Assume that same 2 bedroom unit is sold to a household at very low income. Purchase price would be$69,375 and the monthly mortgage payment would be$438.50 on a 30 year loan at 6.5%interest. - Payment on Mortgage loan= 438.50 - HOA fee = 143.00 - Insurance = 50.00 - Property taxes = 75.00 TOTAL PAYMENT = 706.50 (estimated) Monthly income would need to be $1,765,with no debt,to accomplish a 40% debt-to-income ratio Example 3. Assume a 1 bedroom unit,first at a lower income level, same interest rate as above, purchase price would be$98,750: - Payment on.Mortgage loan = 624.17 - HOA fee = 143.00 - Insurance = 50.00 - Property taxes = 105.00 TOTAL PAYMENT = 922.17 (estimated) -Monthly income would need to be$2,315,with no debt,to accomplish a 40% debt-to-income ratio Example 4. Assume a 1 bedroom unit, at a very low income level,same interest rate and purchase price of$61,750: - Payment on Mortgage loan= 390.30 - HOA fee = 143.00 - Insurance = 50.00 - Property taxes = 65.00 TOTAL PAYMENT = 648.30 (estimated) Par 0c 1045 Southwood Drive, San Luis Obispo, Ca 93422 Benefits of Biome Ownership Credit: Owning a home helps you establish financial credibility. Independence: Owning your own home provides you with independence and more privacy than renting. You are free to paint walls, plant flowers, keep pets and anything else within legal bounds. Investment: As you make more payments and own more of your home, you add to its investment value. Most improvements you make will also add to its value. Pride: A home reflects its owner's values and lifestyle. Owning a home can provide you with a source of pride, enjoyment and satisfaction. Security: A home can provide security against inflation because the value of your home increases as prices go up. Stability: Being established in a community provides a sense of belonging, stability and security. Tax Advantages: Interest on your mortgage loan is deductible on your yearly personal income tax return. Many of the closing costs associated with purchasing your home are deductible, as are your property taxes. har ood 1045 Southwood Drive, San Luis Obispo, Ca 93422 Answers to Frequently Asked Questions What is the difference between "pre-qualified" and "pre- approved"? If you are "pre-qualified" you have determined, with a loan. officer, what price you can afford based on the down payment, your debts and the amount the mortgage company will approve for your mortgage. Being "pre-qualified" is only a determination of your probable credit. If you are "pre-approved", your credit, employment and funds have been approved by the lender. What are closing costs? Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For buyers, they are usually about 4-6% of the total sales price of a property. Some of the closing costs you might encounter are: application fees, appraisal fee, county taxes, credit report, discount points, documentation fee, escrow fees, homeowners' association fees, loan fees, mortgage insurance, origination fees, tax registration and title insurance premium. What is a point? One point is equal to 1% of the new loan amount. Whenever government regulation, state usury laws and/or competitive practices prohibit the lender from charging a rate of interest that would make the real estate loan competitive with other fields of investments, the lender must seek some method of increasing the yield for the investors. By charging "points", the lender can bring the real estate loan up to those other investments. What is earnest money? When you make an offer, you will need to put up an earnest money deposit as a sign of good faith that you are seriously interested in buying a home. That deposit becomes a part of the purchase price and is held in a trust account until there is full acceptance of the offer. Typically, an earnest money is 3-5% of the offer amount. PaW- 0 od 1445 Southwood Drive, San Luis Obispo, Ca 93422 What is title insurance? Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy. Is VA or FHA financing unfair to sellers? FHA and VA loans provide purchasers the opportunity to buy homes with minimal cash investment and at lower interest rates. The result is a larger market for sellers, who also benefit by receiving all cash for their equity. Please contact me to set up an appointment to see some great homes in your desired area. I look forward to hearing from you in the near future. Sincerely, Karen Smith Financing Your Parkwood Village Hoene Buying your home provides income tax advantages and an investment in California real estate. Home ownership is the best way to accumulate wealth for most people. Many options exist for you to finance all or part of the sales price of your home. The interest rate and payment plan options will vary based on (1) the sales price, (2) the amount of your down payment, (3) your credit history, and (4) your ability to provide evidence of sufficient income and liquid assets for the down payment, closing costs, and reserve funds. The pre-qualification process involves gathering evidence of your income, assets, and debts (other than housing expenses), along with your credit history, to determine how much you can borrow to buy a home. Asa general rule, your monthly expenses for housing, credit cards, auto(s), student loan(s), and other debts should not exceed 45% of your gross monthly income (before taxes, but after expenses if self-employed). At today's interest rates, which are in the 6% to 7% range for most loans, the monthly loan payment is $6.50 to $7.50 per month for every $1000 of the loan amount. For example, if you borrow $320,000, your loan payment would most likely be between $2080 and $2400 per month.. "Housing expense" includes the loan payment, along with property taxes (.1% of the sales price per month) and homeowner's association dues_ If you obtain a fixed rate loan, your loan payments will never change until the loan is paid off. With an adjustable rate loan, you payments typically start out lower than with a fixed rate loan but have the potential of going higher than those with a fixed rate loan. For a confidential analysis of your financial situation and to determine whether you (or you and a family member) can qualify to buy a Parkwood,.Village Home, contact Kim Williams at Chase Home Finance at 593-1189 or Jim Smith at Cameron Financial Group at 543-8800. They can help you obtain the financing you need to be able to take advantage of this tremendous opportunity. MINIMUMm EASE -AW CH -� )[ .ill W1ll1 m LJ R arse= 805-593-1189 }j Jltn Smith ter` ca 805-471-6186 nircm 805-543-8800 ` websitc.homeloanchase.com/kimbmWiams sa webaw. www.theloanguy.com THINKING ABOUT BUYING YOUR FIRST HOME? You've probably wondered many times if you can afford to buy a home. Did you know that continuing to make rental payments may be more expensive in the long-run? When you make rental payments,the money is gone forever. When you make mortgage payments,however,you build equity in your home. The longer you own your own home, the larger your equity becomes.Your home may also appreciate in value,usually at a rate faster than the rate of inflation.In addition,property taxes and mortgage interest paid on your personal residence are usually 100%tax deductible. There are numerous advantages to owning a home.Here are some things to consider when buying your first home. Obtain Your Credit Report Get a copy of your credit report from the three major credit bureaus(Experian,Equifax, Trans Union)and review the information. Most lenders will get a credit report for you and review it with you as part of their pre-approval process. The sooner you do this the better. If your credit report contain items which need correcting, it's easier to attend to them well before you make an offer. Don't assume you can't buy a home because your credit isn't perfect. There are numerous lenders and loan programs designed for people with less-than-perfect credit. Contact several lenders to discuss your options. In the unlikely event you don't qualify for a loan, determine what steps to take to improve your credit standing and qualify in the future. Determine How Much Home You Can Afford Many web sites offer calculators that help you determine how much home you can afford.A good calculator will give you a range of affordability. Many of these calculators use standard debt ratios of 28/36. This means that your housing payments cannot exceed 28 percent of your gross income and that your total debt cannot exceed 36 percent of your gross income. However, there are a wide range of programs. Depending on your assets, credit history and earning potential,you may be able to qualify for more than what the standard debt ratio calculations would indicate. Contact a lender to determine of how much you can afford. Understand The Cost Of Home Ownership In addition to your mortgage payment,you will also pay for property taxes and home owners insurance. If you buy a condominium or townhouse you'll likely pay a monthly homeowner's association fee. It is important that you understand the full cost of owning a home in addition to the tax benefits. Many real estate agents and lenders can help you analyze the cost of owning a home. You may also want to consult with an accountant or a financial planner to determine how purchasing a home will help meet your financial goals. Determine How Much Money You Will Need Most loan programs require cash to pay for the down payment and closing costs. Many loan programs allow 100 percent financing. In today's market most lenders offer a variety of programs and down payment options. Even if you have less-than-perfect credit,you may be able to buy a home with a limited down payment. Many home buyers mistakenly assume they need to save 10 or 20 percent the purchase price before they can buy a home. Determine How Long Your Home Will Meet Your Needs What home features do you require today?When and in what way might your requirements change?Will you have a larger or smaller family in the near future?Will you some day need a home-office or work area?A two-bedroom home,for example, may serve the needs of a couple,but may not be roomy enough for agrowing family.What will be required to convert the garage or basement into additional work or living space? Consider how your needs may change before you buy. V _ O.. .� O O ° r „ ; ° ° y „ ac u v c 331 v O •y fE ?� >� QO b ftl ° ro L G. U iE 'C a. O v ` W v .� cc c 'n v :d a.. O E C o r ca u � V U O O U > y v u _ v n o 7 O0�_ x a E o a, y ° v L ° ao > u c = �C �C >,-- E E O O L O M U 0 c c 6 ca -p a L 7 O V1 E V�1 v, (',• O >. > U U U C y si 7 O " „� C 3 CJ �n O y O. etl .4: 04 y cd O ..+ O u > 7 b N O c o >. . 3 L ti o c _ = E u U 3 M o O U o " .D " = U `c W " c 3 - s ob E ; ° a L L o E ° u gg o o c .3 D € € ,CO ti v c = ? 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Questions? ° CAAMUT'K,5, —..rti.a..d:.e... I�pI�IIIIfIfIIY1 "tl. The Dream of Homeowne sh'tjxp 5? � Common Myths r.. curNi:yvrraz r �' +Nifi�i O@%i5. - 1 The Dream of Homeo rsh"➢ Myth#1: You need great credit T. to become a homeowner. -e FACT:You may buy a home less than perfect credit And, f is you can improve your credit over time. all�Irte 9 d.l I.nl!�h�C aIaib�a v mwy a x.n The Dream of Homeownershllp��� Myth#2: You need to put 20°h ,F F down to buy a home. �1ii!'' WM FACT: There are many types of mortgage products and b x dP,. programs that allow for low andjj no down payments. I R] :A �3 I Ct1lAR11uC,5F2.i.:i ���]u' Y�11F��e , �,. s yh'Il�ll�A i�� �"i 11���.. ,J�l9i The Dream of Homeownersfhip' U-1 Myth Myth#3: You can't buy a hom In the U.S. if you are nota m g citizen. IREf ' ' M�_ FACT: If you are a legal resider you can purchase a home in U.S. _ RE gt '.a45 pi 71 I�ibrFa' 2 The Dream of Homeown Myth#4: If you don't use a ban =have credit cards you can't qualify for a mortgage. FACT: It helps if you.have credi , however,you can establish a alternative credit history. sl,� a M ILI The Dream of Homeowri, � Myth#5: Lenders share your personal financial Information Gk with other companies. FACT: There are privacy laws an disclosure requirements lenders, 5° must follow to protect your fi . information. M JIM¢, �I ii I lo- The Dream of Homeown I .110 Myth#6: If you're late with you _ house payment you'll lose yo house. FACT: If you fail to make your mortgage payments-your lend'' will foreclose.BUT there are steps you can take to get bac : r®I track so you don't lose your home. �- Y 3 The Dream of Homeow e Myth#7: You can't get a mortge if you frequently change jobs. FACT: You can change jobs ® several times and still get as mortgage. Lenders want to see ,A 1 SP ��is IE stable income not the same jobs'__ alR t Y :�JIFD('�; 0.YXi n'4 'xA p �°1 I n � s HIM InM B.+u 3l1pl��.�" The Dream of Homeownhr. ..W.111.1 Your Credit History fGhr,r, I� S � e _ fit '' dii 411 , UM piq x L t r GL,ii1 iL �I� e 4 AI �;'I Steps to Improve Your CREDITP �i� I X41 u I M � f5�4,1 ate The Dream of Homeowne s g��� .I L' NMI IMP h �r •:•Credit Score Factors hlrll�d!, � O M R� Ch,nra eMantowE OlsnpNellY� �h i b r - CMwGA SLI. TE+ 1 rr 4 3 Stens to Improve Your Cried' Sco, •?Paying your bills on time ° using your credit ca •3Reduce your outstanding ' a balances Tri I§tl� �llI��� �� NO Conduct your OWN Credit Checl-I;01 N d„ . . 9 e , vv.q Np k I 1 _ Ia 'I1I yiY 1� y ifl 1 .p� it R aN _K R Conduct your OWN Credit c Check-up Step#1: F Send for your credit reports. A W."a 4 www.annualcreditrenortcom jWE 1 877 322-8228 ❖P O Box 105281 � { Atlanta,GA 30348-5281 Hi M0 5 The Dream of Homeo Conduct your OWN Credit Check-up Step#2: A-Review the information p j Dispute any errors � Cpl cutbseatT�mc" _ (i RI��aldl�i 1 V i W• S 9 The Dream of Homeowntrlr�I� ra. psi Lr Conduct your OWN Credit Check-up Step#3: ` ' Contact your Creditors ' �I 4 Determine why their ; information is different nit from yours. i I SOY. Y. C The Dream of Homeown h ;°;N, 11 Conduct your OWN Credit _ «~ ,Fr Check-up Step#4: II -&Document Everything! 's 9 g E °• 5 bl IN r I 6 The Dream of Homeown Conduct your OWN Credit Check-up Step#5: r If you need help... a cau=No sao.= 4 task aswmsl0e;www,9Wdebt0M c:zh�sEinn�I�RvKF o y'pc The Dream of HomeowrQW.-I p� Only you can turn the DREAM into... Eli L •� � _ pj3IL{,� J191 ...REALITYII! Plu m i t P;t I IN I RY 14111: 1, 7 IP4arood e Understanding the Homeowrners'Association CC&R's and Bylaws When you buy into a common interest development you also automatically become a member of the homeowner's association or HOA. The club's members include all the people who own homes in the same development. You will not only own your individual unit but also a fractional or percentage interest in all common areas of the Condominium project. The primary duties of the HOA are to maintain the common areas and to enforce the rules and regulations. The powers of the HOA are defined in the governing documents of the common interest development, the bylaws and CC & R's. The duties of the association are normally handled by the members of the board of directors. Some other duties may include financial planning, protecting the association assets, collecting assessments and conducting meetings. The boards of directors are elected by members of the HOA. HOA fees are monthly assessments for each unit. They cover the cost to maintain the pool and common area landscape, management office & multipurpose room, site lighting, trash removal and master insurance policy on the complex. They also provide salaries for the onsite management.. You will need a separate insurance policy covering risks that are not covered by the association's policy. Owners should also consider fire and extended coverage for the interior and contents of their units. You should obtain the services of an experienced insurance broker to discuss your needs. Par od ' e CC&R s & Bylaws Covenants, Conditions and Restrictions and Bylaws put the decision making rights into the hands of the homeowners association, these are the rules and regulations of the community. They are meant to guide the use of the individual properties and common areas. CC & R's are highly important and should be thoroughly examined and understood prior to purchase. They bind the owner and their successors to the rules and regulation of the community. CC & R's may restrict: Pet size Fences and hedges, tree, shrubs Modification, alterations or additions Signs Temporary Structures Parking of Recreational Vehicles External Antennas It is the responsibility of the owner to provide the purchaser with the governing documents of the development (CC&R's and Bylaws) the most recent financial statement of the HOA. If you do not fully understand what is stated in these documents, consult a real property attorney. Living in a California COMMON INTEREST DEVELOPMENT Published by the State of California, Department of Real Estate in August 2002 This publication is designed to provide general information in response to some of the more frequently asked questions regarding living in a common interest development (CID). We hope it contributes to your understanding and expectations of home ownership in a CID. Since this brochure does not contain specific legal information or guidance, it should only be used as a general source of information. If you wish to research the subject matter further, you may wish to consult with an attorney or an industry professional experienced with CIDs. 1. What is a common interest development (CID)? A CID is descriptive not only of a certain type of real estate and form of home ownership, but also of a life-style that is becoming more and more common to the American way of life. To understand the concept, it is important to know that there is no one structural type, architectural style, or standard size for CIDs. They come in a variety of types and styles, such as single family detached houses, two story townhouses, garden style units with shared "party walls,"and apartment-like, multi-storied high rises. Currently in California, there are tens of thousands of CIDs which range in size from a simple two unit development to a large complex having thousands of homes, many commonly owned facilities, and multiple associations under the auspices of one overall master association. However, despite the wide range of differences that may exist among CIDs, all CIDs are similar in that they allow individual owners the use of common property and facilities and provide for a system of self-governance through an association of the homeowners within the CID. The most common type of association of homeowners is the nonprofit mutual benefit corporation. This is a corporation in which the members of the corporation vote for a board of directors which runs the affairs of the corporation. However, some associations, usually the older ones, are unincorporated associations. In many ways, unincorporated associations are treated the same as mutual benefit corporations under California law. 2. Do you have to join the association? Membership in the association(s) is automatic. When a person buys a lot, home, townhouse, or condominium in a common interest development, he/she automatically becomes a member of the association(s). 3. What are Covenants, Conditions and Restrictions (CC&Rs)? The Declaration of the Covenants, Conditions and Restrictions, or CC&Rs, contains the ground rules for the operation of the association. This governing document identifies the association's common area and responsibilities, explains the obligation of the association to collect assessments, as well as the obligation of the owners to pay assessments. It also states that the association may sue owners for violations of the rules or failure to pay assessments, and explains what happens if there is any destruction of properly in the development as a result of fire or earthquake. Usually, the CC&Rs will also state the duties and obligations of the association to its members, insurance requirements, and architectural control issues. 4. How are the CC&Rs enforced? California laws allow that either the association or an owner in a common interest development may file a lawsuit asking the court to enforce the CC&Rs. The law currently requires, with some exceptions, that either the owner or the association must offer to engage in some form of alternative dispute resolution process before filing a lawsuit. You may wish to consult with an attorney who specializes in this type of law if you are faced with or contemplating an enforcement matter. 5. What are Bylaws? As stated above, the CC&Rs generally state how an association is to be operated. In almost every instance the association, through its board of directors, has the ultimate responsibility for managing the association. As the association is usually a corporation, Bylaws establish the rules by which the corporation will be run. Bylaws usually set forth how members vote for the board of directors, the number and term limit of members of the board of directors, the duties of the board, the duties of the officers, and other incidental provisions. 6. Does the Department of Real Estate assist with the enforcement of the Bylaws and CC&Rs? CIDs are subject to the Davis-Stirling Common Interest Development Act (California Civil Code Sections 1350 et seq.). This Act is intended to provide homeowners with a system of self-government and dispute resolution. The Department of Real Estate reviews the legal framework of all new CIDs to ensure compliance with the Subdivided Lands Law as part of the public report application process before homes are offered for sale to the public. Once sales have commenced, the Department's jurisdiction is limited to the subdivider's obligations under the public report, which does not include intervention in association disputes. Presently, there is no state or local agency that directly regulates associations or their members. 7. Who is in charge of the association? The homeowners are in charge of the association. Often, homeowners will elect a board of directors to operate the association and preserve, enhance and protect the value of the CID, but the board answers to the homeowners. It should be noted that it is not unusual for the board to contract with a professional management company to run the day-to-day affairs of the association. Ultimately, however, it is the board who is responsible for the oversight of the homeowner association. 8. What is the board of directors and how are its members elected? The board of directors governs the association. Its members are elected yearly or less frequently, depending upon the terms mandated in the governing documents of the association. The governing documents also determine the number of directors. Directors are elected by the members of the association (homeowners) who vote for vacancies as they occur. Normally, each lot or unit has one vote no matter how many people own it, with the notable exception that the subdivider may, for a time, have up to three votes for each lot or unit he/she owns. 9. How can you serve on the association's board of directors? There are two ways to become a member of the board of directors. You can request that the association or nominating committee place your name on the election ballot so other members of the association will have an opportunity to vote for you in the next election or you can ask the board of directors to consider appointing you to any interim vacancy on the board. 10. What are the responsibilities of the board of directors? The board has the ultimate responsibility for operating the association. Board members must deal in good faith on behalf of all the homeowners and exercise reasonable care. The board makes sure that the association's money is collected, its bills are paid, the association is operated efficiently, and violations of the rules of the association are addressed. For example, the board is responsible for reviewing the association's bank statements, preparing a budget, and distributing the budget (or budget summary) to the members prior to the beginning of the association's fiscal year. The board must also prepare a fiscal year-end financial statement for distribution to the members. There are numerous other things for which the board is responsible, as set forth in the association's CC&Rs, Bylaws, the Corporations Code and the Davis-Stirling Common Interest Development Act (California Civil Code Sections 1350 through 1376). Even if the board of directors opts to contract with a professional management company to run the day-to-day affairs of the association, the board of directors is still ultimately responsible for management of the association. 11. Are there other opportunities to volunteer in the association besides the board of directors? Usually, an association will have a number of committees that perform valuable functions. For example, the architectural committee oversees requests for modifications to properties in the development and generally attempts to make sure that modifications and other improvements are consistent with the existing architecture of the development. There may be other committees to join, depending on the type of development in which you live. An association may have a landscape committee to oversee landscaping. There may be a welcoming committee that greets new homeowners or an election committee that coordinates the election of the board of directors. Committees are usually established by the association's Bylaws, CC&Rs, and/or the board of directors. Let your board know that you would like to actively participate In your association. 12. How does the association pay its bills? Each association has a budget that is prepared based on the common area obligations of the CID, and distributed to all of its members. The budget determines how much money the association is going to need to operate for the following year. The association has the right to bill the members for their fair share of the budgeted amount. This billing is known as an assessment, which may be paid via monthly invoices, coupons supplied by the association, or some alternative method. Ideally, the association collects sufficient money through these assessments and pays the bills for the services and goods contemplated in the budget. If the assessments collected are insufficient to pay the bills, the board of directors is allowed to levy what is known as a special assessment. Without member approval, the total of special assessments in any fiscal year cannot exceed 5 percent of the gross budgeted expenses for that year. By paying your fair share of the obligations of the association, through the budget and assessment process, you are proportionally paying for the current and long term maintenance obligations of the association. Of course, all of the. other owners are doing so as well. 13. How is the amount of the monthly assessment determined? When the budget is prepared, the amounts necessary for the daily operation and long term reserves for maintenance and replacement are determined based on the level of service for which the association is both required and willing to pay. For example, sometimes there are specific items defined in the CC&Rs that require a certain level of maintenance by the association. Once the annual amount is determined, then it must be collected from the members in order for the association to operate. Each member's assessment is usually collected monthly, in 12 equal installments. Some associations collect assessments on a quarterly or annual basis. The CC&Rs will normally indicate the frequency of assessment collections. 14. Are there different types of assessments or fees? There are several types of assessments that may apply to your association. The California Civil Code defines assessments as either being regular or special. Regular assessments are needed for the operating (day-to-day) and reserve (long-term maintenance) activities of the association. Special assessments are those.levied by the association for major repairs, replacement, or new construction of the common area or for a one-time, unanticipated expense which cannot be covered by the regular assessment (e.g., insurance premiums that unexpectedly"sky rocket"). Note, a special assessment should not be confused with a monetary penalty levied by the association against an individual owner to reimburse the association.for an expense such as damage to the common area, or imposed as a disciplinary measure for a violation of the rules and regulations. Homeowners can be fined for damaging common areas and/or violating any rules and regulations of the association.. Some CIDs establish user fees or special charges for services and activities that are not customary. Typically, these are imposed on an owner specifically benefiting from the service, such as an owner who wants to use the common area pool, clubhouse, or tennis courts to entertain private guests. The fees are usually on a pay-as-you-go basis and generally cannot become a lien on the owner's unit or interest. There are other types of assessments that may be designated by the CID homeowners association. For example, an association may have an assessment for cable television service. A "reimbursement assessment' may be levied against an individual owner as a charge for damage to the common area resulting from an act by the owner or an owner's guest. The best place to look for the different types of assessments that may apply to a CID is in the CC&Rs of the association. 15. Who can raise the amount of the assessment? The board of directors can increase the amount of the assessment by following certain procedures mandated by California Civil Code Section 1366. Even if the governing documents are more restrictive, the board of directors may not increase the regular assessment more than 20 percent per year, without the approval of the owners. The board must circulate a budget to the membership no less than 45 days but no more than 60 days prior to the beginning of the fiscal year. If the budget indicates that an assessment increase greater than 20 percent is necessary, a majority of the members of the association must approve the assessment. There are also provisions for a board to increase an assessment more than 20 percent without member approval in cases of emergency such as an extraordinary expense required by order of a court, or for repairs to the common area. 16. What happens if you do not pay your assessments? Usually, the association will send you a reminder letter as a first step. The law is specific in Califonnia regarding the due date of assessments and the overall process that an association must follow regarding deliquent assessments. The law states that if an assessment is not paid within 15 days of the due date, a delinquency occurs. At this point, the association can add a charge to your assessment in the form of a late fee in the amount of$10.00 or ten percent of the monthly assessment amount, whichever is greater, unless the CC&Rs specify a lesser amount. Again, the law covering this area is quite clear and the board must follow these procedures. Once a year, the association will send each owner a copy of the assessment collection policy, which will tell you the amount of the late fee. If your assessment becomes over 30 days delinquent the association has the right to assess interest up to 12 percent per year on the balance which is owed and unpaid. If you still fail to pay your assessments, the matter may be referred to an attorney or forclosure service. The association has the right to lien your property for the amounts owed as well as other costs such as attorney's fees. Ultimately, the association can foreclose and take your property for you failure to pay assessments. A personal judgment may also be entered against you. As you can see, it is imperative that all owners pay their assessments in a timely manner. Failure by several owners to pay their assessment obligation could place the association in financial jeopardy. 17. Are there other rules in an association? An association's board of directors may establish rules and regulations governing issues ranging from where you can park to what you can place on a balcony or deck. Associations frequently have guidelines and rules that specify the type of landscaping that may be installed or in some instances, not installed. Rules and regulations can be just as enforceable in an association as the CC&Rs, Bylaws and applicable laws. The most frequent type of miscommunication between an owner and the association usually arises from an owner being unaware of the rules and regulations when the association attempts to enforce them. You can easily prevent such misunderstandings by making certain you have a current copy of the rules and regulations, which may be obtained from the association or the management company. 18. Can you make improvements to your home? The answer is generally yes, depending on the type of home that you have (condominium, townhouse, detached, etc.). However, in addition to the conditions in the CC&Rs, most associations have established rules and regulations (also known as Architectural Guidelines) which must be followed in order to make any alterations or improvements. Generally, associations assist members who wish to improve their property as long as the improvement is performed in a manner consistent with the CC&Rs and rules and regulations. 19. Who do you contact if you are having problems with or questions regarding the home interior? The association common area? Neighbors? Paying assessments? The first place to look for answers to your questions is the CC&Rs. Then you should speak to a board member or, if your association has contracted with a management company, they may be able to provide assistance. Problems with the interior of a home normally are the responsibility of the owner. The association's common area is managed by the association, so the appropriate contact is either one of the association's board members or, if applicable, the management company. When there is a dispute between neighbors, sometimes it is best resolved between those owners. Where a dispute involves payment of assessments or an infraction of the association rules or CC&Rs, it would be appropriate to contact the board of directors and/or the management company. 20. What is a management company and what does it do? A management company is a separate business enterprise usually hired to act as the agent of the association. As an agent for the association, they take their direction specifically from the association's board of directors. Typical contractual responsibilities of the managing agent include a variety of services to the association, such as collecting assessments, paying the association's bills, taking direction from the board of directors for enforcement of rules infractions, and obtaining various vendors to perform services. Other possibilities for management company duties include assisting with the budget process; preparing meeting agendas and minutes for the board of directors; or serving as a neutral third party to help solve problems that can occur in CIDs. Additionally, the managing company may advise the board of directors on how to comply with relevant California Civil Code requirements and assist with appropriate and timely compliance. 21. Can owners rent to someone else? Some CIDs restrict the number of units that may be rented by owners. Some CC&Rs require that a rental agreement acknowledge that the tenancy is subject to all of the rules and regulations of the association. Some associations' rules and regulations also require that you provide the association with a copy of the rental agreement. In most associations, the CC&Rs state that the owner of the property being rented is responsible for the conduct of the tenant. Naturally, it is in the best interest of all parties to prevent problem situations between tenants and owners of other units. If your tenant does damage to the common area or creates a nuisance (e.g., loud music or pet problems), the disturbance could become your problem and the association may fine you. 22. What are your individual responsibilities as an owner living in a CID? Primarily, you are responsible for paying your assessments on time and abiding by the CC&Rs and all other rules and regulations which exist for community harmony. 23. What are your individual rights as an owner living in a CID? Your individual rights as an owner living in a CID are based upon the laws of the state of California and the documents you signed at the time of purchase. Prior to making a purchase, it is advisable to thoroughly review the CC&Rs and any other governing documents applicable to the CID. You may also wish to attend a board meeting and obtain copies of minutes from previous board meetings. The CID should be able to demonstrate that it has adequate insurance coverage, a solvent budget and a sufficient reserve account. Generally, the rights of owners include: • The right to participate in meetings of the board of directors and to be heard. • The right to enter into dialogue with your association board of directors with regard to any problem you may perceive in the development. • The right, with some exceptions, to utilize an alternative dispute resolution process, if a dispute arises between you and the association prior to the involvement of the court system. 24. What should I do if I decide to sell my home? You may wish to contact a real estate professional, the board of directors, the professional management company (if your CID has one) and/or an escrow company for assistance with the many details involved with selling your home. There are a number of documents that an individual owner is legally required to provide to a prospective purchaser of a unit in a CID. You will want to make sure that the buyer is aware of the rules and regulations of the association as well as the assessment obligation so there is not a problem or misunderstanding which could jeopardize the sale of your home. Until the sales transaction is completed and title is transferred, the owner of record is responsible for all assessments and fines unless otherwise stated in the sales and purchase agreement. This includes new assessments approved during the sale and purchase that become due while the sale is pending. CONCLUSION A successful and viable CID is generally one in which homeowners assume an active role, not only by attending association meetings, voting and paying dues on time, but also by running for elected offices, serving on committees and participating in group activities. While governing documents help establish a foundation, involved owners build the CID and make it a community. Go to top of page This page last modified on AF San Luis Obispo County Tourism BID Presented by San Luis Obispo County Visitors&Conference Bureau Overview • What is the Problem? • What is the Solution? • Next Steps Industry Challenges • Current local occupancy rates —Average 63%countywide —Average 65%in City of SLO • Projected new rooms —Additional 3,570(+43%)countywide —Additional 450(+24%)in City of SLO • Impact on occupancy rates and ADR 1 Z Countywide Occupancy Trend 2aYor omoyaey MVV AII,e -m pnMw IslilOSsmeTm.Fo.ve City of San Luis Obispo To 6s �60 ss I so 2003 2ua 2M 2906o "We 20Uc 200e Oats Soo :200.2M smith Tinel amramb Industry Challenges • Current funding structure declining • Competitors' funding increasing • Why is this important — Negative impact on city budgets/jobs —Diminished ability to effectively promote in major markets 2 Why Do We Need More Tourism Funding? • To launch a more competitive marketing program to promote the entire destination -All boats rise in the tide • To maintain consistent and stable tourism marketing efforts. • To establish a fiord totally dedicated to tourism promotion. • To maximize the benefit of the major increase in rooms Methods of Funding Tourism Promotion ✓Government Allocations ✓Transient Occupancy tax ✓Organization Memberships ✓Co-Op Marketing 013usiness Improvement District Government Allocations Limitations • Vulnerable to budget crises and competing priorities—police,fire,roads,libraries... • Marketing decisions may be based on city agendas and not necessarily what attracts visitors. 3 v Transient Occupancy Tax Limitations • Original intent: 100%be used for tourism promotion • Reality: varies by city between 4%to 15% with a negative trend. Organization Memberships Limitations • Generally supplements governmental funding • By itself,not able to fund a competitive marketing program • Businesses who aren't members benefit at the cost of members Co-op Marketing Limitations • Shared message—diluted and cluttered • Destinations need to communicate different messages than individual businesses. (why to visit vs.where to stay) 4 Business Improvement Districts A grassroots exercise in DEMOCRACY in which a group of businesses agree to ASSESS THEMSELVES over a set period of time (one year at a time) for a defined and common purpose. BID Benefits • Establishes a stable and growing marketing fund. • Delivers a more consistent marketing message, delivers it more often,and at a competitive level with our neighboring destinations. • Businesses accomplish what they could not afford individually. • Marketing decisions are made by the assessed businesses. • Decisions trust show demonstrable benefit • All boats rise in the tide,generating more tax revenues and jobs for each city. Why BIDS Work • The key to their success lies in their dissimilarity to government(in general) —They opmw without red tape and cumbersome civil service Hiles • They have clear objectives • They operate for set terms(One Year at a time) • They are governed by those who pay —through an advisory board • They must demonstrate benefit to be renewed 5 San Luis Obispo County Tourism Business Improvement District • Forming under the 1989 Parking and Business Improvement law. • Countywide BID would include lodging businesses only. • Assessment of 1%of room rate on an occupied room. • BID funding amount projected at$1.8 million from private sector. • Not intended to replace existing tourism promotion funding. • Annual review and approval by those who pay. How is a BID Established? • Business owners petition the Cities and the County to establish a BID an their behalf. • County passes a resolution requesting the Cities to form a BID. • Cities approve a resolution of consent to allow the County to form a BID. • County sends a copy of the BID proposal to affected businesses(only the lodging industry). • Public hearings are held to receive comment • County establishes a BID by ordinance unless 51%of the total assessments submit a written protest Who determines how the BID funds will be spent? • Advisory Board to County Board of Supervisors - The plan calls for 7-9 appointees made up of businesses being assessed - Works in comm with the SIA Coumy,VCB to develop the BID Markeung Plan - Advisory Board naanI join the SLOCVCB Board ofDirc tors -Reports to the Board of Supervison about the activities of the BID. • Role of the San Luis Obispo County VCB - Contracts with the County to manage and implement the BID funds - hrrpl®eots the makaing plan this is developed in concert with the mdusuy through the Advisory Boal 6 Examples of Tourism BIDs • Sacramento-$3.2 million BID+$3 million • Sonoma County-$2.7 million BID+$1 million • San Mateo County-$2.1 million • West Hollywood-$1.1 million • Tri-Valley CVB-$1 million • Carlsbad-$830,000 • Temecula-$430,000 sm>m,amr•ceomy-smo.000 wmo�gm Destinations Establishing a BID • Monterey County(est.$2 million+$2.6 minion) • Santa Ynez Valley • Napa County • Santa Cruz • Orange County(including Anaheim) • San Diego Is There Support? • latest survey,with 62%response rate -75%are either numal or positively in favor of the BID -66%feel the decrease in tourism funding will negatively affect the competitiveness of the destination -63%are concerned that major increase in lodging rooms toll affect occupancy and ADR rates -84%think that a$1.8 million marketing budget will increase the destination's competitiveness 7 Where do we go from here • Request that the City place a resolution of consent to form a BID on their agenda. • Encourage the democratic process to go forward by allowing the lodging industry to make the decision on the BID. 8